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 Project Management institute is leader and

most widely recognized organization in terms
of promoting project management best
practices.
 Founded : 1969
 Started PMP : 1984

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 Time : 4 Hours
 Total questions : 200
 175 out of 200 Scored
 25 for PMI’s statistical purpose

◦ Initiation 13%
◦ Planning 24%
◦ Execution 30%
◦ Monitoring and Controlling 25%
◦ Closing 8%

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What Is a Project?

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 Project is Project have
temporary in definite start Progressive elaboration is
nature and finish date most often used when
creating the project or
product scope, developing
requirements, determining
Considered as human resources,
Produce a complete when scheduling, and defining
unique product goals and risks and their mitigation
or service that objective have plans.
does not exist been met and
earlier signed off by the
stakeholders

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 Purpose behind
Operations are operations is to
ongoing and keep the
repetitive. organization
functioning.

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 Goals are clear statements that you intend to
achieve.

Objectives are the milestones or mini-goals you

accomplish on your path to achieving your
bigger goals.

For each objective, you’ll have a list of

tasks that must be completed in order to
achieve that objective.

SMART Goals stands for

specific, measurable,
achievable, realistic and timely. 7
People who are actively involved with project work.

People who have something to gain or loss from project result.

Following is partial list of stakeholders involved in a typical project.

•Project Sponsor
•Project Manger
•Customer
•Board of Directors
•Vendors
•Suppliers
•Executive managers
•Departmental mangers

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Project Management brings together a set of tools
and techniques –performed by people – to describe,
organize and monitor the work of project.

According to PMBOK project management involves

applying knowledge, skills, tools and techniques
during the course of project to accomplish the
project's objectives

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 Program is group of Portfolio is collection of
related projects that are programs and projects(not
managed in a coordinated necessarily related) that
fashion. meet a business objective.

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PMO is usually a centralized organization
unit that oversees the management of
Supportive PMO
projects and programs.
PMO usually have responsibility for
maintaining and archiving project
documentation.
Controlling
PMO might serve advisory role to Project PMO
managers.

PMO evaluate completed projects and

progress on ongoing projects. Directive
PMO

Training needs of the project teams.

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 Organizational Governance

It is a criteria which impose constraints on the Project –

particularly if it delivers service which is subjected to strict
Organizational governance.

It is important for the Project Manager to know the

Organizational Governance Policies and procedures
pertaining to the Product/Service

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 Communication Skill :
Written as well as oral

Team Building and Organization and

Motivating Skills. Planning Skill

Leadership Skills Budgeting Skills

Negotiation and Conflict Management

influential skills Skill – Problem Solving

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Organization structure impacts level of authority the
project manager gets.

Understanding organization structure is very important to bring

projects to successful close.

Four Type of Organization Structure

• Functional
• Projectized
• Matrix
• Composite

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Advantages
• Enduring organizational structure.
• There is a clear career path with separation of functions, allowing
specialty skills to flourish.
• Employees have one supervisor with a clear chain of command.

Disadvantages
• Project managers have little to no formal authority.
• Project Team Members are loyal to the functional manager.

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PM have ultimate authority.

Team members are loyal to

project not to functional
manager.

Focus is project.

Team members are co-

located.
Projects teams are dissolved
at the conclusion of the
project.

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To get the best of both (Functional and Projectized) .

Employees report to functional manager as well as

project manager.

Lot of communication is required between PM and FM.

So there should be balance of power between them.

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 Strong
• More power with PM
Matrix

Weak Matrix • More power with FM

Balanced • Balance of power between PM

Matrix & FM.

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STRONG WEAK

BALANCED

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 Composite Organization

Many organizations might be functional but can

create a special project team to handle a critical
project.

This project team is very much similar to project team

in Projectized organization.

But this is not true for the rest of the organization.

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 Project Phases
A project may be divided into any number of
phases. A project phase is collection of logically
related project activities that culminates in the
completion of the deliverables.

A phase structure allows the Project to be

segmented into logical subsets for the ease
management, planning, and control.

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Feasibility study Design Build
• Handoff • Handoff • Handoff
• Phase Gate • Phase Gate • Phase Gate
Review (Go-No Review (Go-No Review (Go-No
Go Decision) Go Decision) Go Decision)

Every phase
Turnover Inspection
can have a
Life cycle. • Handoff • Handoff
• Phase Gate • Phase Gate
Review (Go-No Review (Go-No
Go Decision) Go Decision)

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Sequential relationships One phase must finish before the
next phase can begin.

Overlapping relationships One phase starts before the

prior phase completes.

Iterative relationships Work for subsequent phases are

planned as the work of the previous phase is performed.

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 Project management
processes organize and
describe the work of the •Initiation
project. The
PMBOK®Guide describes •Planning
five process groups used
to accomplish this end. •Execution
These processes are
performed by people and, •Monitoring and Controlling
much like project phases,
are interrelated and •Closing
dependent on one
another.
The project manager and project team are
responsible for determining which processes
within each process group are appropriate for the
project on which you’re working. This is called
tailoring. 24
PM Process Groups

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Creating the Project Charter

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 Project Integration Management

Project Scope Management

Project Time Management

Project Cost Management Projects are executed in

process group order,
Project Quality Management but knowledge areas
Project Human Resource Management
allow a PM to think
about group of process
Project Communications Management that require specific
skills.
Project Risk Management

Project Procurement Management

Project Stakeholder Management

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 Concerned with coordinating all aspects of the
project plan. It comprises six processes.

Processes Project Management Process Group

Develop Project Charter Initiation
Develop Project Management Plan Planning
Direct and Manage Project Work Execution
Monitor and Control Project Work Monitoring and Controlling
Perform Integrated Change Control Monitoring and Controlling
Close Project or Phase Closing

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 Concerned with defining all the work of project
needed to successfully produce project goals. It
comprises six processes.

Processes Project Management Process Group

Plan Scope Management Planning
Collect Requirements Planning
Define Scope Planning
Create WBS Planning
Validate Scope Monitoring and Controlling
Control Scope Monitoring and Controlling

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 Concerned with estimating the duration of project
plan, activities, project schedule, deviation from
schedule. It comprises seven processes.

Processes Project Management Process Group

Plan Schedule Management Planning
Define Activities Planning
Sequence Activities Planning
Estimate Activity Resources Planning
Estimate Activity Duration Planning
Develop Schedule Planning
Control Schedule Monitoring and Controlling

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 Concerned with cost estimation, establish
budget ,deviation from approved budget .It
comprises four processes.

Processes Project Management Process Group

Plan Cost Management Planning
Estimate Costs Planning
Determing Budget Planning
Control Costs Monitoring and Controlling

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 Concerned with that project meets the
requirements that it was undertaken to
produce. It comprises three processes.

Processes Project Management Process Group

Plan Quality Management Planning
Perform Quality Assurance Execution
Control Quality Monitoring and Controlling

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 Concerned with all aspects of people
management, dealing with conflict etc. It
comprises four processes.

Processes Project Management Process Group

Plan Human Resource Management Planning
Acquire Project Team Execution
Develop Project Team Execution
Manage Project Team Execution

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 Concerned with that all project information is
collected, documented, shared and archived
properly. It comprises three processes.

Processes Project Management Process Group

Plan Communications Management Planning
Manage Communications Execution
Control Communications Monitoring and Controlling

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 Concerned with identifying, analyzing and
planning for potential risks . It comprises six
processes.

Processes Project Management Process Group

Plan Risk Management Planning
Identify Risks Planning
Perform Qualitative Risk Analysis Planning
Perform Quantitative Risk Analysis Planning
Plan Risk Responses Planning
Control Risks Monitoring and Controlling

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 Concerned with purchasing good/services from
vendors etc. It comprises four processes.

Processes Project Management Process Group

Plan Procurement Management Planning
Conduct Procurements Execution
Control Procurements Monitoring and Controlling
Close Procurements Closing

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 Concerned with identifying, managing and
controlling of stakeholder engagement with the
Project. It comprises four processes.

Processes Project Management Process Group

Identify Stakeholders Initiation
Plan Stakeholder Management Planning
Manage Stakeholder Engagement Execution
Control Stakeholder Engagement Monitoring and Controlling

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 According to • Market demand
the PMBOK® • Strategic opportunity/business need
Guide, projects • Customer request
come about as • Technological advance
a result of one • Legal requirement

of seven needs • Ecological impacts

• Social need
or demands

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 Determine whether the
project is a viable
project.

Three things we
mostly look in a
feasibility study Determine the
are: probability of the
project
• Technical
succeeding.
• Legal
• Economical

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Decide among alternative projects.

Determine the tangible benefits to the company of choosing or not

choosing the project.

Methods of selection

• Mathematical models (calculation methods/constrained optimization

methods).
• Benefit measurement (decision models like Cost-Benefit Analysis, Scoring
Models, Cash Flow Analysis Techniques)

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Cost-Benefit Analysis
• Compares the cost to produce the
product, service, or result of the project
to the benefit (usually financial in the
form of savings or revenue generation)
that the organization will receive as a
result of executing the project
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Payback Period
• The payback period is the length of time it takes the company to recoup
the initial costs of producing the product, service, or result of the
project.
• The payback period is the least precise of all the cash flow calculations.
• It doesn’t account for any profits.

Discounted Cash Flow

• It considers the time value of money.

• It just tells you the present value of money you expect to make from a
project and doesn’t compare it with investment.
• PV = FV / (1 +i)n
Continued…
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With NPV, you evaluate the cash inflows using the
discounted cash flow technique applied to each period the
inflows are expected instead of in one sum.

If the NPV calculation is greater than zero, accept the

project. If the NPV calculation is less than zero, reject the
project.

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Internal •Projects with
Rate of higher IRR should
Return be selected.

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 Inputs Tools and Techniques Output
•Project statement of • Expert Judgment • Project Charter
work
• Facilitation
•Business case
Techniques
•Agreements
•Enterprise
environmental factors
•Organizational
process assets

The project charter is the written acknowledgment that the project

exists. It documents the name of the project manager and gives that
person the authority to assign organizational resources to the
project. The project is officially authorized when this is signed.

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The project statement of work (SOW) describes
the product, service, or result the project was
undertaken to complete. This document is
usually written by project sponsor. SOW should
contain or consider the following elements:

• Business need
• Product scope description If the project is
external, buyer
• Strategic plan writes the SOW

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The purpose of a business case is to understand the business need for
the project and determine whether the investment in the project is
worthwhile.

The business case often describes the cost-benefit analysis as well.

Agreements are used to define initial intentions for a project, in form

of SLA or letter of agreement.

In case of external customer generally a contract is used as agreement

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Organizational culture

Governmental or industry standards

Infrastructure

Human resources

Personnel administration

Marketplace conditions

Stakeholder risk tolerances

Political climate

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Organizational process assets
are the organization’s
policies, guidelines,
procedures, plans ,
approaches, and standards for
conducting work, including
project work.

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Expert Judgment-The concept behind expert
judgment is to rely on individuals, or groups of
people, who have training, specialized knowledge, or
skills in the areas you’re assessing.

Facilitation Techniques- Brainstorming, Problem

Solving, Meetings can be used by facilitator to help
develop project charter

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The project charter is the official, written acknowledgment and
recognition that a project exists.

It’s signed by project sponsor.

It gives the project manager the authority to assign

organizational resources to the project.

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Should include at least these elements:

• Purpose or justification of the project

• Project objectives that are measurable
• High-level list of requirements
• High-level description of the project
• High-level list of risks
• Stakeholder List
• Summary milestone schedule
• Summary budget
• Criteria for project approval
• Name of the project manager and their authority levels
• Name of the sponsor (or authorizer of the project) and their authority levels
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Prior to publishing the charter, hold a kickoff
meeting with the key stakeholders to discuss
the charter and then obtain their sign-off.

Sign-off from the project sponsor, senior

management, and key stakeholders.

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 INPUT TOOLS AND OUTPUT
• Project charter TECHNIQUE • Stakeholder
• Procurement •Stakeholder Analysis Register
documents •Identifying all
potential
• Enterprise
stakeholders
environmental
•Identifying
factors
potential Impact
• Organizational •Assessing
process assets stakeholders
•Expert Judgment
•Meetings

The purpose of this process is to identify project stakeholders, assess their

influence and level of involvement, devise a plan to deal with potential negative
impacts, and record stakeholder information in the stakeholder register.

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Stakeholder Analysis
• First step is identifying all potential stakeholders and capturing general
information about them such as the department they work in, contact
information, knowledge levels, and influence levels.
• Second is to Identify Potential Impact of the Stakeholders for which we
can use any of the following.
• Power/Interest grid
• Power/Influence grid
• Influence/Impact grid
• Salience model
• Stakeholder power
• Urgency
• Legitimacy
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Stakeholder Analysis
• The third step is, assessing how key stakeholders are likely
to react or respond in various situations, in order to plan
how to influence them, may be to enhance their support or
mitigate negative impact

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 • Name of key stakeholders who
could have a significant impact
on the project
Stakeholder
• Stakeholders’ anticipated level
Register of participation
• Stakeholder groups
• Assessment of impact

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Developing the Project Scope
Statement

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Completed The project is
the project officially The project A solid
Initiating underway. The project objectives foundation
processes Stakeholders manager and for the
and have been has been description planning
published identified and assigned have been process is
the project informed of the identified. in place.
charter. project.

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 INPUTS TOOLS AND OUTPUT
• Project Charter TECHNIQUES • Project
• Outputs from • Expert Judgment Management
Planning • Facilitation Plan
Processes Techniques
• Enterprise
Environmental
Factor
• Organizational
Process Assets

It brings all subsidiary plans together, along with the outputs of the
Planning group processes, into one document called the project
management plan.
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 Input Tools and Technique

• We have PMIS, which is mostly an • Expert Judgment

automated system having all the • Tailoring techniques
information regarding the • Understanding technical and
guidelines for any changes to be management details.
incorporated. (Part of Enterprise
• Determining resources and
Environmental Factors)
assessing skill levels.
• Determining and defining the
amount of configuration
management.
• Determining which project
documents require formal
change control processes

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 Output is the project •Processes you’ll use to perform each phase of the
project.
management plan—that
•The life cycle you’ll use for the project and for each
describes, integrates, and
phase of the project if applicable.
coordinates baselines
•The tailoring results the project team defines.
and subsidiary plans for
•Methods for executing the work of the project to
the processes you’ve
fulfill the objectives.
determined to use for the
•Change management plan describing methods for
project. The project
monitoring and controlling change.
management plan can be
•Configuration management.
detailed or it can be a
•Methods for determining and maintaining the
high-level summary validity of performance baselines.
based on the needs of •Communication needs of the stakeholders and
the project. techniques to fulfill those needs.

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 Difference between Project
Management Plan & Project Documents

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 Plan Scope Management

Project Scope Management plan

•How the project team will go about defining
project scope?
•How the work breakdown structure will be
developed?
•How changes to scope will be controlled?
•How the work of the project will be verified and
accepted?

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 INPUT TOOLS AND OUTPUT
• Project charter TECHNIQUE • Scope
• Project •Expert Judgment Management
Management •Meetings Plan
Plan • Requirements
• Enterprise Management
environmental Plan
factors
• Organizational
process assets

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 Outputs

Components of Scope Management Plan can include but are

not limited to:-

• Process for preparing a detailed project scope statement

• Process for creation of WBS
• Process for maintenance of WBS
• Process for Acceptance

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 Outputs
The requirement management plan is a component of project
management plan that describes how the requirements will be
analyzed, documented, and managed.

Components of Requirement Management Plan can include but

are not limited to:-
• How requirement activities can be planned, tracked, and reported.
• Requirement Management Process.
• Product Metrics that will be used.
• Configuration Management Activities
• Traceability structure to reflect which requirement attributes will be
captured on the traceability matrix.

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Requirements describe the characteristics of the deliverables.

They might also describe functionality that a deliverable must have or specific
conditions a deliverable must meet in order to satisfy the objective of the
project.

Requirements are typically conditions that must be met or criteria that the
product or service of the project must possess in order to satisfy the objectives
of the project.

Recording the requirements and attaining stakeholder approval of the

requirements will help you define and manage their expectations throughout the
project.

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 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Project Charter •Requirements
•Stakeholder •Interviews Documentation
Register •Focus groups •Documenting the
•Scope Management •Facilitated workshops Requirements
Plan •Group creativity Traceability Matrix
•Requirements techniques
Management Plan •Group decision
•Stakeholder making techniques
Management Plan •Questionnaires and
surveys
•Observations
•Prototypes
•Benchmarking
•Context Diagrams
•Document Analysis

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 Facilitated Group Creativity
Interviews Focus Groups
Workshops Techniques

•They are typically •Focus groups are •Cross-functional •Group creativity

one-on-one usually conducted stakeholders involves several
conversations by a trained come together in techniques, like
with moderator. The a facilitated brainstorming,
stakeholders. key to this tool workshop to Nominal group
Interviews can be lies in picking the discuss and technique, the
formal or subject matter define Delphi technique,
informal and experts and requirements that and affinity
generally consist stakeholders to affect more than diagrams. We will
of questions participate in the one department. cover each of
prepared ahead focus group. these techniques
of time. in the Risk
Planning process

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 Group decision Questionnaires
Observations Prototypes
making techniques and Surveys
•Unanimity •This technique •This technique is •Prototyping is a
•Majority involves querying typically a one- technique
•Plurality a large group of on-one involving
participants via experience where constructing a
•Dictatorship
questionnaires or an observer sits working model or
surveys. side by side with mockup of the
the participant to final product for
observe how the participants to
participant experiment with.
interacts with the
product or
service.

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 Benchmarking Context Diagrams Document Analysis

• Bringing the • Depicting the • This technique

best practices, product scope helps us to find
guidance from by showing a requirements by
previous similar business system doing an
projects or and how people analysis of all
other & other systems the relevant
organizations. interact with it. documents like
RFP,
agreements,
policies etc.

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 Requirements Documentation Requirements Traceability Matrix

•Business need for the project and why it •It helps assure that business value is
was undertaken realized when the project is complete
•Objectives of the project and the because each requirement is linked to a
business objectives the project hopes to business and project objective.
fulfill
•Functional requirements
•Nonfunctional requirements
•Quality requirements
•Acceptance criteria
•Business rules
•Organizational areas and outside entities
impacted Get signatures of
•Support and training requirements the key
•Assumptions and constraints stakeholders
indicating their
acceptance of the
requirements. 77
Defining project scope is critical to the
success of the project since it spells out
exactly what the product or service of the
project looks like. Conversely, poor scope
definition might lead to cost increases,
rework, schedule delays, and poor morale.

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 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Scope Management •Project Scope
Plan •Expert Judgment Statement
•Project Charter •Product •Project Document
•Requirements analysis(value, Updates
documentation functional,
•Organizational requirements
process assets analysis)
•Alternatives
identification
•Facilitated
Workshops

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 Product Analysis Alternatives Identification

•It might include performing •Lateral Thinking is a way to

value analysis, functional find alternatives and might
analysis, requirements be best described as
analysis, systems- “Thinking Out of Box”.
engineering techniques, (Edward de Bono)
systems analysis, product
breakdown, or value-
engineering techniques to
further define the product or
service.

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It is an agreement between the project and the project customer that states precisely
what the work of the project will produce. It provides all the stakeholders with a
foundational understanding of the project scope

Since the scope statement serves as a baseline for the project, if questions arise or
changes are proposed later in the project, they can be compared to what’s
documented in the scope statement.

Project scope statement should include all of the following:

•Product scope description

•Product acceptance criteria The project scope statement should be
approved, agreed upon, published, and
•Project deliverables distributed to the stakeholders, key
•Project exclusions management personnel, and project team
•Project constraints members. This isn’t an official output of
this process, nor is it noted in the PMBOK®
•Project assumptions
Guide.
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 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Scope • Scope baseline
Management Plan • Decomposition • Project
• Project Scope • Expert Judgment Documents
Statement. updates
• Requirements
documentation
• OPA
• EEF

It maps the deliverables of the

project with sub deliverables and WBS defines the total
other components stemming
from each major deliverable in a
scope of the project.
tree or chart format.
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Decomposition- • Identify the deliverables and
Breaking down work
the deliverables • Organize the WBS
into smaller, • Decompose the WBS components
more into lower-level components
manageable • Assign identification codes
components of • Verify the WBS
work.

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Lowest level of the WBS is called Work Package Level.

Sometimes on large projects we use Rolling Wave approach to create

the WBS.

Collectively, all the levels of the WBS roll up to the top so that all the
work of the project is captured (and no additional work is added).
According to the PMBOK® Guide, this is known as the 100% rule.

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 • Code of accounts identifier
• Description of the work of the component
• Organization responsible for completing the
component
• List of schedule milestones
WBS • Schedule activities associated with the
schedule milestones

Dictionary • Required resources

• Cost estimates
• Quality requirements
• Criteria for acceptance
• Technical references
• Contract information

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86
87
Creating the Project Schedule

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

The key benefit is that it provides guidance and direction on

how the project schedule will be managed throughout the
project.

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 Plan Schedule Management

Inputs Tools & Outputs

Techniques
• Project • Schedule
Management • Expert Management
Plan Judgment Plan
• Project • Meetings
Charter • Analytical
• EEF Techniques
• OPA

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 Output
Schedule Management Plan

• A component of Project Management Plan that establishes the criteria

and activities for developing, monitoring, and controlling the schedule.

Schedule Management Plan can establish the followings:-

• Project Schedule Model Development: The Scheduling methodology and

the scheduling tool to be used in the development of the project
schedule management.
• Level of Accuracy.
• Unit of Measure.
• Organizational Procedure Links.
• Project Schedule Model Maintenance.
• Control Thresholds.

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 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Schedule • Activity List
Management • Decomposition • Activity
Plan. • Rolling wave Attributes
• Scope baseline planning • Milestone List
(Deliverables, • Expert Judgment
Constraints &
Assumptions)
• Enterprise
environmental
factors
• Organizational
process assets

The Define Activities process is a further breakdown of the work package elements of the WBS.

92
 Rolling Wave Planning
• Involves planning near-term work in more detail
than future-term work.
• It is a form of Progressive Elaboration.

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Activity List
• Contains all the activities which would be performed during
the project.

Activity Attribute
• Predecessor, Successor, Resource

Milestone List
• Accomplishments of the project and they mark the
completion of major deliverables or some other key event in
the project.

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 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Schedule • Project Schedule
Management • PDM network diagram
Plan • Dependency • Project
• Activity list determination Documents
• Activity • Applying Leads updates
Attributes and Lags
• Milestone List
• Project Scope
Statement
• EEF
• OPA

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Dependency Determination
•Dependencies are relationships between the activities in which one activity is dependent
on another to complete an action.
•Mandatory dependencies – Physical Limitations
•Discretionary dependencies – Knowledge Based
•External dependencies

Precedence Diagramming Method (PDM)

•This method is also called activity on node (AON).
•FS,FF,SF,SS

Arrow Diagramming Method

•Only uses FS and can have more than 1 time estimate.

Lead and Lag

96
Project Schedule Network Diagram
• These are constructed using PDM or ADM.

Project Documents Update

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 INPUTS TOOLS AND OUTPUTS
• Schedule Management TECHNIQUES • Activity resource
Plan. • Bottom Up Estimating requirements
• Activity list • Project Management • Resource breakdown
• Activity attributes Software structure
• Resource calendars • Alternatives Analysis • Project documents
• Risk Register updates
• Published Estimating
• Activity Cost Estimates Data
• Enterprise • Expert Judgment
environmental factors
• Organizational process
assets

Estimate Activity Resources is concerned • People

with determining the types of resources
• Equipment
needed and in what quantities for each
schedule activity within a work package. • Material

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 Project Management Alternatives Published
Bottom up Software Analysis Estimating Data
•Estimating •Project •Many times an •Estimating data
individual schedule management activity can might include
activities or costs software can help accomplished in organizational
and then adding plan, organize, and more than one guidelines,
these together to estimate resource way, alternatives industry rates or
come up with a needs and analysis would help estimates,
total estimate for document their to decide among production rates,
the work package. availability. the possibilities. and so on.
Here you will use
this technique to
estimate resources.

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Activity Resource Requirement
• Types of resources and the quantity needed for each activity
associated with a work package.

RBS
• It lists the resources by category and type.

Project documents updates

100
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Schedule •Activity Duration
Management Plan •Expert judgment Estimate
•Activity List •Analogous •Project Documents
•Activity Attributes estimating (top- update
•Activity resource down estimating)
requirements •Parametric
•Resource Calendars estimating

•Project Scope •Three-point

statement estimates

•Risk Register. •Group Decision

Making
•Resource Breakdown
Structure •Reserve analysis

•EEF
•OPA

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 Analogous Parametric Three Point Reserve
Estimating Estimating Estimates Analysis
•Estimate total •Quantitatively •Most likely •A portion of time
project duration, based estimating •Optimistic that is added to
particularly when method that •Pessimistic the activity to
you have a multiplies the account for
limited amount of quantity of work schedule risk or
information about by the rate. uncertainty.
the project. The
best way to think
about top-down
techniques is to
look at the
estimate as a
whole.

102
Activity Duration Estimates

Project Documents update

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This is where you lay out the schedule for your
project activities, determine their start and finish
dates, and finalize activity sequences and
durations.

The project schedule, once it’s approved, serves

as the schedule baseline for the project that you
can track against in later processes.

104
 INPUTS TOOLS AND OUTPUTS
• Schedule Management TECHNIQUES • Project schedule
Plan. • Schedule network • Schedule baseline
• Activity list analysis • Schedule data
• Activity attributes • Critical path method • Project document
• Project schedule • Critical chain method updates
network diagrams • Resource leveling • Project Management
• Activity resource • What-if scenario Plan updates
requirements analysis
• Resource calendars • Applying leads and lags
• Activity duration • Schedule compression
estimates • Scheduling tool
• Project scope statement
• Risk Register
• Project Staff
Assignments
• Resource Breakdown
Structure
• EEF
• OPA

105
 PERT (Program
Schedule
CPM CCM Evaluation & Review
Technique) Compression

•Uses Early Start, •Usually modifies •PERT=[Opt+4(Mo •Crashing

Early finish and the Critical Path st •Fast Tracking
Late start, Late by taking in Likely)+Pesm]/6
finish dates. account the •SD=(Pessimistic-
•It is usually the resource Optimistic)/6
longest full path restrictions. •+- 1 SD gives you
and Float (Slack) 68.26% accurate
is generally zero. •+- 2 SD gives you
•It is a theoretical 95.44% accurate
path as it doesn’t •+- 3 SD gives you
considers the 99.73% accurate
resource
availability.

106
 Resource What-If scenario
Scheduling Tools
Leveling analysis

• It is used when • It uses • Software like

resources are different sets MS Projects can
over allocated of activity help you do
or under assumptions to most of the
allocated. produce above
multiple mentioned
project caclutaions.
durations.

107
The project schedule should be approved and signed off by
stakeholders and functional managers.

108
109
Developing the Project Budget

110
The process that establishes the policies,
procedures, and documentation for Planning,
managing, expending, and controlling project costs.

The key benefit of this process is that it provides

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

111
 Plan Cost Management

Inputs Tools and Outputs

• Project Techniques • Cost
Management • Expert Management
Plan Judgment Plan
• Project • Analytical
Charter techniques
• EEF • Meetings
• OPA

112
 Output
Cost Management Plan : Components
• Units of Measure
• Level of Accuracy
• Level of Precision
• Organizational procedure links
• Control Thresholds
• Reporting Formats

113
 INPUTS TOOLS AND TECHNIQUES OUTPUTS
• Cost •Expert judgment • Activity Cost
Management •Analogous estimating Estimates
Plan •Parametric estimating
• Basis of
•Bottom-up estimating
• Scope baseline Estimates
•Three-point estimate
• Project schedule • Project
•Reserve analysis
• Human resource Documents
•Cost of quality
plan Updates
•Project management
• Risk register estimating software
• Enterprise •Vendor bid analysis
environmental •Group Decision Making
factors Techniques

• Organizational
process assets

114
 Tools and
INPUTS
Techniques

Enterprise Cost of Quality means

environmental factors the total cost required
can include market to produce the product
place conditions and or service as per the The Estimate Costs
published commercial quality standards. process develops a
information. cost estimate for the
resources required for
Vendor Bid Analysis each schedule activity.
Organizational says that we should
Process Assets can always take cost
include lessons estimates from more
learned and historical than one vendor and
information. compare them.

115
Activity cost estimates are generally quantitative amounts that reflect the cost of
the resources needed to complete the project activities.

Basis of Cost estimates

•A description of how the estimate was developed or the basis for the estimate.
•A description of the assumptions made about the estimates or the method used to
determine them.
•A description of the constraints.
•A range of possible results. You should state the cost estimates within ranges such
as $5000 ± 10%.
•The confidence level regarding the final estimates.

Project Documents Updates

116
INPUTS TOOLS AND OUTPUTS
• Cost Management Plan TECHNIQUES • Cost Baseline
• Activity cost estimates • Cost aggregation • Project Funding
• Basis of estimates • Reserve analysis requirements
• Scope baseline • Expert judgment • Project Documents
• Project schedule updates
• Historical relationships
• Risk Register • Funding limit
• Resource calendars reconciliation
• Agreements
• Organizational process
assets

Remember that costs are tied to the

The Determine Budget process aggregates the financial system through the chart of
cost estimates of activities and establishes a accounts—or code of accounts—and
are assigned to project activities at
cost performance baseline for the project.
the work package level or to control
accounts at various points in the WBS.
117
Cost Aggregation
• Cost aggregation is the process of tallying the schedule activity cost
estimates at the work package level and then totaling the work
package levels to higher level WBS component levels.

Funding Limit reconciliation

• It means planning your activities according to the funds that can be
provided.
• If the estimated cost for scheduled activities in the second month of
a project is estimated to be $50,000, but the organization can only
provide funding for $40,000 then there is $10,000 of work that has
to be rescheduled to another month.

118
 Cost Performance Project Funding
Baseline requirements Project
Documents
• It provides the basis • It describes the need for
updates
for measurement, over funding over the course of
time, of the expected the project and are derived
cash flows against the from the cost performance
requirements. baseline.

119
 INPUTS TOOLS AND OUTPUTS
•Project
TECHNIQUES •Communications
Management Plan. •Communications Management plan
•Stakeholder Requirements Analysis •Project Documents
register •Communication update
•Enterprise Technology
environmental •Communication
factors methods
•Organizational •Communication models
process assets •Meetings

The Plan Communications process involves determining the

communication needs of the stakeholders by defining the types
of information needed, the format for communicating the
information, how often it’s distributed, and who prepares it.
120
 Communication Communication Communications Communication
Requirement Analysis Technology Models Methods

•This tool and •Written, spoken, •Encode •Interactive

technique requires email, formal •Message and communication
an analysis of the status reports, (Video
feedback
items in the meetings, online conferencing,
message
preceding list to
databases, online •Medium meetings)
make certain
schedules. •Push
you’re •Noise
communicating communication
•Decode
information that’s (Letters, emails,
valuable to the reports)
stakeholders •Pull
•Network Model communication
tells us the number (Web sites, e-
of communication learning sites,
channels shared network
possible.[n(n-1)/2] drives)

121
BASIC COMMUNICATION MODEL

122
 • The communication requirements of each
stakeholder or stakeholder group
The
• Purpose for communication
communications • Frequency of communications, including
management time frames for distribution
• Name of the person responsible for
plan typically communicating information
describes the • Format of the communication and method
of transmission
following
• Method for updating the communications
elements: management plan
• Glossary of common terms

123
Plan Stakeholder Management
INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Stakeholder
Management • Expert Management
Plan Judgment Plan
• Stakeholder • Meetings • Project
Register • Analytical Document
• EEF Techniques Updates
• OPA

The process of developing appropriate management strategies to

effectively engage stakeholders throughout the project life cycle,
based on the analysis of their needs, interests, and potential impact
on project success.

124
 Tools and Techniques
Analytical Techniques can help us to compare the current engagement of all
stakeholders needs to the planned engagement level required for successful
completion.

Stakeholder engagement throughout the life cycle of the project is critical to

project success.

Following can be the different level of engagements

• Unaware
• Resistant
• Neutral
• Supportive
• Leading :

125
126
Risk Planning

127
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Project Management • Risk
Plan • Meetings Management
•Project Charter Plan
• Expert Judgment
•Stakeholder Register
•Enterprise
• Analytical
environmental Techniques
factors
•Organizational
process assets

Plan Risk Management process is the foundation for all the Risk
processes that follow. This assures that the appropriate amount of
resources and the appropriate time are dedicated to risk management.

128
Meetings

• Risk cost elements are developed for inclusion in the project budget.
• Schedule activities associated with risk are developed for inclusion in
the project schedule.
• Risk responsibilities are assigned.
• The risk contingency reserve process is established or reviewed.
• Templates for risk categories are defined or modified for this project.
• Definitions of terms (probability, impact, risk types, risk levels, and so
on) are developed and documented.
• The probability and impact matrix is defined or modified for this
project.

129
Analytical Techniques

•Finding out what is the risk appetite

and risk tolerance of the stakeholders
towards a particular project.
•Overall risk exposure of the project

130
 •Methodology
•Roles and responsibilities
•Budgeting
•Timing
•Risk categories
Risk •Technical, quality, or performance risks
•Project management risks
Management •Organizational risks
Plan •External risks
•Definitions of risk probability and impact
•Probability and impact matrix
•Revised stakeholder tolerances
•Reporting formats
•Tracking

131
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Risk Management Plan • Risk Register
•Activity cost estimates •Documentation
•Activity duration reviews
estimates •Information-gathering
•Scope baseline techniques
•Stakeholder register •Checklist Analysis
•Cost Management Plan •Assumptions Analysis
•Schedule Management •Diagramming
plan Techniques
•Quality management •Strengths,
plan Weaknesses,
•Project documents Opportunities, and
•EEF Threats (SWOT)
•OPA •Expert Judgment
• Procurement
Document

132
 Information-gathering
Documentation Reviews Diagramming Techniques
techniques

•Reviewing project plans, •Brainstorming •Cause-and-effect

assumptions, and •Delphi Technique diagrams (fishbone
historical information •People participating in diagram)
from previous projects the meeting don’t •Process flowcharts
from both a total project necessarily know each
perspective and an other. In fact, the
individual deliverables people participating in
and activities level. this technique don’t all
have to be located in
the same place and
usually participate
anonymously.
•Interviewing
•Root Cause Identification

133
Checklist Analysis
• Checklists used during the Identify Risks process are usually
developed based on historical information and previous
project team experience.

Assumption Analysis
• It is a matter of validating the assumptions you identified
and documented during the course of the project-planning
processes.

SWOT Analysis

134
 Risk Register • List of Identified Risks
usually contains
• List of Potential Responses
at least the
following: • Triggers

135
 INPUTS TOOLS AND OUTPUT
TECHNIQUES
• Risk register • Risk Register
•Risk probability and
• Risk Updates
impact assessment
management •Probability and
plan impact matrix
• Scope baseline •Risk data quality
• Organizational assessment
process assets •Risk categorization
•Risk urgency
• Enterprise
assessment
Environmental
•Expert judgment
Factors

It involves prioritizing risks for further analysis by

determining what impact the identified risks will have
on the project objectives and the probability they’ll
occur.
136
Probability and Impact Assessment Scale

137
Probability and Impact Matrix
• High risks are considered a red condition, medium risks are considered a
yellow condition, and low risks are considered a green condition.

138
 Risk Data Quality Risk Urgency
Risk Categorizations
Assessment Assessment

• The quality of the • Categories • Using this tool

data used determined during you’ll determine
• The availability of Plan Risk how soon the
data regarding the management can potential risk
risks help you further to events might occur
• How well the risk is define the effects and quickly
understood your risk can have determine
on the project or responses for those
• The reliability and
phase. risk events that
integrity of the data
could occur soon.
• The accuracy of the
data

139
You’ll update the register with the following
information
• Risk ranking (or priority) for the identified risks
• Risks grouped by categories
• Causes of risk
• List of risks requiring near-term responses
• List of risks that need additional analysis and response
• Watch list of low-priority risks
• Trends in qualitative risk analysis results

140
 INPUTS TOOLS AND OUTPUT
• Risk register TECHNIQUES
• Project
• Risk management plan • Data Gathering and
Document
• Cost management plan Representation
• Schedule management Techniques Updates
plan • Quantitative Risk
• Enterprise Analysis and Modeling
Environmental Factors Techniques
• Organizational process • Expert Judgment
assets

The Perform Quantitative Risk Analysis process evaluates the impacts

of risk prioritized during the Perform Qualitative Risk Analysis process
and quantifies risk exposure for the project by assigning numeric
probabilities to each risk and their impacts on project objectives.

141
Data Gathering and Representation Techniques
•Interviewing
•Probability Distributions (Details out of Scope)
•Triangular Dist.
•Normal & lognormal Dist.
•Discrete Dist.

Quantitative Risk Analysis and Modeling Techniques

•Sensitivity Analysis
•Tornado Diagram
Continued… 142
Quantitative Risk Analysis and Modeling Techniques

• Expected Monetary Value (EMV) Analysis

• EMV analysis is a statistical technique that calculates the
average, anticipated future impact of the decision.
• Decision Tree Analysis
• Modeling and Simulation
• Monte Carlo

Expert Judgment

143
Example of Decision Tree with
EMV

144
You’ll record the following new elements in the risk
register

• Probabilistic analysis of the project

• Probability of achieving the cost and time
objectives
• Prioritized list of quantified risks
• Trends in Perform Quantitative Risk Analysis
results

145
It is a process of deciding what actions to take to reduce
threats and take advantage of the opportunities discovered
during the risk analysis Processes.

This process also includes assigning departments or individual

staff members the responsibility of carrying out the risk
response plans you’ll outline in this process. These folks are
known as risk owners.

146
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Risk Register • Project
• Risk • Strategies for Management
Management Negative Risks or Plan Updates
Plan Threats • Project
• Strategies for Document
Positive Risk or Updates
Opportunities
• Contingency
Response
Strategy
• Expert Judgment

147
Strategies for Negative Strategies for Positive
Contingency Planning
Risks or Threats Risk or Opportunities

• Avoid • Exploit • It involves planning

• Risk Transfer • Share alternatives to deal
• Mitigate a Risk • Enhance with the risks should
they occur.
• Acceptance of Risk
• Passive Acceptance
• Active Acceptance

This is different from mitigation planning in that mitigation looks to reduce

the probability of the risk and its impact, whereas Contingency planning
says the risk might very well occur, and you better have plans in place to
deal with it when it does.

148
Risk Register Updates

• Risk register gets updated with risk responses we

plan.

Risk-Related Contractual Agreements

Project Management Plan Updates

Project Document Updates

149
150
Planning Project Resources

151
The Plan Procurements process can influence the project
schedule, and the project schedule can influence this process.

It is a process of identifying what goods or services you’re

going to purchase from outside the organization and which
needs the project team can meet.

152
 INPUTS TOOLS AND OUTPUTS
•Scope baseline TECHNIQUES
• Procurement
•Requirements • Make-or-Buy Management Plan
documentation
Analysis • Procurement
•Risk register
• Expert Statements of
•Activity resource
Judgment Work
requirements
•Project schedule • Market • Make-or-Buy
•Activity cost estimates Research Decisions
•Stakeholder Register • Meetings • Procurement
•Enterprise environmental Documents
factors • Source Selection
•Organizational process Criteria
assets
• Change Requests
• Project Document
Update

153
 Contract Types

• Fixed-Price or Lump-Sum Contracts (Risky for Seller)

• Firm Fixed-Price (FFP)
• Fixed-Price Plus Incentive (FPIF)
• Fixed-Price with Economic Price Adjustment (FP-EPA)
• Cost-Reimbursable Contracts (Risky for Buyer)
• Cost plus fixed fee (CPFF)
• Cost plus incentive fee (CPIF)
• Cost plus percentage of cost (CPPC)
• Cost plus award fee (CPAF)
• Time and Materials (T&M) Contracts (Risky for Buyer)

154
Procurement Management Plan
• The types of contract to use
• The authority of the project team
• How the procurement process will be integrated with other
project processes
• Where to find standard procurement documents
• How many vendors are involved and how they’ll be managed
• How the procurement process will be coordinated with other
project processes, such as performance reporting and
scheduling

Continued… 155
Procurement Management Plan
•How the constraints and assumptions might be impacted by
purchasing
•How multiple vendors or contractors will be managed
•The coordination of purchasing lead times with the development
of the project schedule
•The schedule dates that are determined in each contract
•Identification of prequalified sellers (if known)
•Risk management issues
•Procurement metrics for managing contracts and for evaluating
sellers
156
Procurement Statements of Work

• The project objectives

• A description of the work of the project and any post project
operational support needed
• Concise specifications of the product or services required
• The project schedule, time period of services, and work
location

157
Procurements Documents
• RFP
• RFI
• IFB
• RFQ

158
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Human Resource
Management Plan • Organization Plan
• Activity resource Charts and
requirements Position
• Enterprise Descriptions
environmental • Networking
factors • Organizational
• Organizational Theory
process assets • Expert Judgment
• Meetings

This process documents the roles and responsibilities of individuals or

groups for various project elements and then documents the reporting
relationships for each.
159
Key Environmental Factors
• Organizational factors
• Existing human resources and marketplace conditions
• Personnel policies
• Technical factors
• Interpersonal factors
• Location and logistics
• Political factors
• Organizational structures
• Economic conditions

160
 Organization Charts and Position Descriptions

Hierarchical Matrix-Based Text Oriented Other sections

Charts Charts Formats of the project
management
• RBS • Responsibility • Used when plan
Assignment you have a
Matrix significant • Risk
amount of Planning
detail to
record.

161
 The RAM relates the OBS to the WBS to assure that every
component of the work of the project is assigned to an individual.

162
Networking
•It means human resource networking; that is, you know
someone who knows someone and you can share information,
learn new techniques, and interact with each other.
•Lunch Meetings
•Informal Conferences

Organizational theory
•It refers to all the theories that attempt to explain what makes
people, teams, and work units perform the way they do.
•We will talk more about this in chapter 8
163
Human Resource Plan

• Roles and Responsibilities

• Staffing Management Plan
• Staff acquisition
• Resource calendars
• Staff release plan
• Training needs
• Recognition and rewards
• Contractual obligations
• Safety policies
• Project Organization Charts

164
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES •Quality
•Project Management
Plan •Cost-Benefit Analysis Management Plan
•Stakeholder register •Cost of Quality •Quality Metrics
•Risk register •Benchmarking •Quality Checklists
•Requirement •Design of Experiments •Process
Documentation •Seven basic quality Improvement Plan
•Enterprise tools •Project documents
environmental •Additional Quality updates
factors Planning Tools
•Organizational •Statistical Sampling
process assets •Meetings

This process is concerned with targeting quality standards that are

relevant to the project at hand and devising a plan to meet and satisfy
those standards.
165
 • Standards aren’t legally
Quality is affected
Standards by Triple Constraint.
mandatory, but it’s a good
and idea to follow them.

Regulations • Regulations are mandatory

to follow.

•The quality policy is part of the

organizational process assets
Quality input.
•It’s a guideline published by
Policy management that describes
what quality policies should be
adopted for the projects.

166
 Additional Quality
Cost of Quality DOE
Planning Tools

• Prevention costs • It is a statistical • Brainstorming

• Appraisal costs technique method • Affinity diagrams
• Failure costs for identifying which • Force field analysis
factor may influence
• Internal failure • Nominal Group
specific variables of
costs technique
a product or process
• External failure under development • Matrix diagrams
costs or in production. • Prioritization
matrices

• It plays a role in
optimizing products
or processes.

167
Examples of Cost of Quality

168
Seven Basic Quality Tools

169
Benchmarking
•It is a process of comparing previous similar
activities to the current project activities to
provide a standard to measure performance
against.

Statistical Sampling
•We will discuss more in chapter 9.

170
 CROSBY JURAN DEMING FEIGENBAUM SHEWHART

•Zero •Fitness for •Quality is a •Founder of •Plan-Do-

defects and use, manageme TQM. Check-Act
prevention conformance. nt problem. cycle.
or rework •Quality by
results. design.
•Grades and
Quality

171
 Continuous
TQM Six Sigma Kaizen
improvement

• Quality must • Measurement- • Continuous • Watch

be managed in based improvement; continuously
and must be a strategy; no improve for ways to
continuous more than 3.4 quality of improve
process. defects per people first. quality.
million
opportunities.

172
Quality Management Plan
• It describes how the project management team will carry out the quality
policy.
• Resources needed
• Responsibility
• Processes and Procedure

Quality Metrics
• What and how it will be measured?

Quality Checklists
• They provide a means to determine whether the required steps in a
process have been followed.

173
Process improvement plan
• It focuses on finding inefficiencies in a process or
activity and eliminating them.

Quality Baseline
• Almost everything you’ve done throughout the Plan
Quality process culminates in the quality baseline.
• This is what you will use to measure and report
quality against.

174
175
Developing the Project Team

176
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Deliverables
management • Expert Judgment • Work
plan • PMIS Performance
• Approved change • Meetings Data
requests • Change Requests
• Enterprise • Project
environmental Management
factors plan updates
• Organization • Project document
process assets updates

This process also requires implementing corrective actions to bring

the work of the project back into alignment with the project plan
177
Work Performance Data
• Schedule status and progress
• Status of deliverable completion
• Progress and status of schedule activities
• Adherence to quality standards
• Status of costs (those authorized and costs incurred to date)
• Schedule activity completion estimates for those activities started
• Schedule activities percent complete
• Lessons learned
• Resource consumption and utilization

178
Change Requests
• Corrective actions – An intentional activity that
realigns the performance of the project.
• Preventive action – An intentional activity that
ensures the future performance is aligned to the
plan.
• Defect repairs – An intentional activity to modify a
nonconforming product or product component.

179
 INPUTS TOOLS AND OUTPUTS
• Human Resource TECHNIQUES • Project staff
Management • Pre- assignment assignment
Plan • Negotiation • Resource
• Enterprise • Acquisitions calendars
environmental • Project
• Virtual teams
factors management
• Multi-Criteria
• Organizational plan updates
Decision Analysis
process assets

The Acquire Project Team process involves attaining and assigning human
resources to the project. Project staff might come from inside the company
or from outside the company in the form of employees hired specifically for
the project or as contract help.
180
Pre-Assignment
• It means when internal project team members are promised and assigned as
a condition of the project.
• It should be documented in Charter or Project Plan

Negotiation

Acquisition
• Acquisition involves hiring individuals or teams of people for certain project
activities, either as employees or as contract help.

Virtual Teams
• It can be defined as groups of people with a shared goal, who fulfill their
roles with little or no time spent meeting face to face
181
 Tools and Techniques
Multi-Criteria
• Availability: Whether the team member is
Decision
available to work within the time period.
Analysis is • Cost: Verify if the cost of adding the team
used to rate or member is within the prescribed budget.
• Experience: Verify that the team member
score potential has relevant number of experience that
team members will contribute to the success of the
project.
using multiple
• Ability: Verify that the team member has
election the competencies needed by the project.
criteria like:

182
Project staff assignment

Resource calendars

Project management plan updates

183
 INPUTS TOOLS AND OUTPUTS
• Project staff TECHNIQUES • Team
assignments • Interpersonal skills performance
• Human • Training assessment
Resource • Team-Building • Enterprise
management Activities environmental
plan factors
• Ground Rules
• Resource updates.
• Co-location
calendars
• Recognition and
Rewards
• Personnel
Assessment Tools

184
 Team-Building
Interpersonal Skills Activities (Dr. Bruce Ground Rules
Tuckman)

• Leadership • Forming • Expectations set by

• Influence • Storming the project manager
• Negotiation • Norming and project team
that describe
• Empathy • Performing
acceptable team
• Creativity • Adjourning behavior.

185
MASLOW’S HIERARCHY OF NEEDS
• This theory suggests that once a lower-level need has been met,
it no longer serves as a motivator and the next higher level
becomes the driving motivator in a person’s life.
•Self-actualization-Performing at your peak potential
•Self-esteem needs-Accomplishment, respect for self, capability
•Social needs-A sense of belonging, love, acceptance, friendship
•Safety and security needs-Your physical welfare and the security
of your belongings
•Basic physical needs-Food, clothing, shelter

186
HYGIENE THEORY

• Frederick Herzberg came up with the Hygiene Theory

• Also known as the Motivation-Hygiene Theory.
• He postulates that two factors contribute to
motivation
• Hygiene factors deal with work environment issues.
• Motivators deal with the substance of the work
itself and the satisfaction

187
EXPECTANCY THEORY

• The Expectancy Theory, first proposed by Victor

Vroom
• People become what you expect of them.
• The expectation or likelihood of the reward is
linked to the behavior.

188
ACHIEVEMENT THEORY

• Achievement Theory, is attributed to David McClelland

• People are motivated by the need for three things
• Achievement
• Power
• Affiliation

189
THEORY X, THEORY Y
• Douglas McGregor defined two models of worker behavior
• Theory X
• Theory X managers believe most people do not like work and will try to
steer clear of it
• Theory Y
• Theory Y managers believe people are interested in performing their best
given the right motivation and proper expectations.

Theory Z
• Theory Z was developed by Dr. William Ouchi
• This theory is concerned with increasing employee loyalty to their
organizations.

190
Continuum Management Theory
• Tannenbaum and Schmidt developed this theory.
• Level of authority a manager exerts on the team.
• Amount of freedom a team is given to make decisions.

Situational Leadership Theory

• Paul Hersey and Ken Blanchard developed this theory.
• It says that leadership style one uses, depends on the
situation.
191
Reward power-You reward desirable behavior with incentives or bonuses

Punishment power-You threaten team members with consequences if

expectations are not met (also known as penalty power).

Expert power-The person doing the influencing has significant knowledge or

skills regarding the subject.

Legitimate power-This is the power of the position held by the influencer (the
president or vice president, for example).

Referent power-This is power that’s inferred to the influencer. Project team

members who have a great deal of respect and high regard for their project
managers willingly go along with decisions made by the project manager
because of referent power.

192
Autocratic

Laissez-faire

Democratic

Situational

193
 INPUTS TOOLS AND OUTPUTS
• Project staff TECHNIQUES • Enterprise
assignments environmental
• Observation and
• Project factors updates
Conversation
Management • Organizational
Plan - HR • Project
Performance process assets
• Team update
Appraisal
performance • Change requests
• Conflict
assessments
Management • Project
• Work management
Performance • Issue Log
plan updates
Reports • Interpersonal
Skills
• Issue Log
• Organizational
process asset
194
Project Performance Appraisal
• A 360-degree review is the one in which manager takes in feedback from
just about everyone the team member interacts with, including stakeholders,
customers, project manager, peers, subordinates, and the delivery person if
they have a significant amount of project interaction.

Conflict Management
• Force/Direct (Win-loss)
• Smooth/Accommodate (Loss-Loss)
• Compromise/Reconcile (No win-No Loss)
• Collaborate/Problem solve (Win-Win)
• Withdraw/Avoid (Loss-Loss)

195
Observation and Conversation

Issue log

196
Enterprise environmental factors updates
• Input to organizational performance appraisals
• Personnel skill updates

Organizational process assets update

• Historical information
• Lessons learned documentation

Change requests

Project management plan updates

197
198
Conducting Procurement and
Sharing Information

199
 INPUTS TOOLS AND OUTPUTS
•Procurement TECHNIQUES
• Selected sellers
Management Plan •Bidder Conferences • Agreements
•Source selection •Proposal
criteria
• Change Request
Evaluation
•Seller proposals • Resource
Techniques
•Project documents
Calendars
•Independent
Estimates • Project
•Make-or-buy
management
decisions •Expert judgment
plan updates
•Procurement
•Advertising
• Project document
Statement of Work •Analytical
Techniques updates
•Organizational
process assets •Procurement
Negotiation

200
Bidder Conference
• Meetings with prospective vendors
• Occur prior to the completion of response Proposal
• Purpose is that vendors can meet with the buyers to ask
questions and clarify issues.

Independent Estimates
• Organizations estimates of costs

Advertisements

201
Proposal Evaluation Techniques

•Weighting Systems
•Screening Systems
•Seller Rating Systems

Procurement Negotiation

•Fait accompli

202
 Outputs
The major elements of Agreements may include but not
limited to:-
• Statement of Work or deliverables.
• Schedule Baseline.
• Performance Reporting.
• Roles and Responsibility.
• Warranty.
• Limitation of liability.
• Incentives.
• Penalties.
• Change Request Handling.

203
 •Requirement
Procurement
•Requisition
contract
•Solicitation
award
•Award

204
Selected sellers

Change Request

Resource Calendars

Project management plan updates

Project document updates

205
 INPUTS Tools and OUTPUTS
• Quality Techniques • Organizational
management • Quality Audits process assets
plan updates
• Process
• Change requests
• Quality metrics Analysis
• Project
• Process • Quality management
Improvement Management plan updates
Plan and Control • Project document
• Quality control Tools. updates
measurements
• Project
Documents

206
 Tools and Techniques

In addition to tools and techniques from Plan Quality and

Control Quality, few other tools can also be used like :

• Affinity Diagrams : It allows large numbers of ideas stemming from

brainstorming to be sorted into groups. It might be used to enhance WBS
• Interrelationship digraphs : Allows for upto 50 relevant items to be linked
• Tree Diagrams : WBS, OBS, RBS are all represented using tree diagrams

207
Seven Quality Management and Control Tools

208
Quality Audits

• The product of the project is fit for use and meets safety standards.
• Corrective action is recommended and implemented where necessary
• The implementation of approved change requests, corrective actions,
preventive actions, and defect repairs are confirmed.
• Gaps or shortcomings in the process are identified.

Process Analysis

• Problems and Constraints experienced while conducting the project.

• Inefficient and ineffective processes identified during process operation.
• Perform Root Cause Analysis

209
Organizational process assets updates

Change requests

Project management plan updates

Project document updates

210
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES • Project
• Communication
Management • Communication Communications

Plan models • Project

Management
• Work • Communication Plan Update
Performance methods
• Project
Reports • Communication Document
• Organizational technology Update
Process Assets • Information • Organizational
• Enterprise management Process Updates
Environmental systems
Factors • Performance
Reporting

211
Communication Methods

• Meetings
• Emails
• Videoconference

Information Management Systems

• Hard-copy document distribution, manual filling systems, press

releases.
• Electronic communication like websites.
• MS Projects

212
Project Communications

Project Document Update

Project Management Plan Update

Organizational Process Assets Updates

213
It’s the project manager’s responsibility to manage stakeholder
expectations.

By doing so, it will decrease the potential for project failure.

Managing the expectations of your stakeholders will also increase the

chance of meeting the project goals.

Issues are resolved in a timely manner and disruption during the

project are limited.

214
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Stakeholder • Organizational
Management • Communication process assets
Plan methods updates
• Communications • Change
• Interpersonal
Management requests
skills
Plan
• Management • Project
• Change log
skills management
• Organizational plan updates
process assets
• Project
document
updates
• Issue Log

215
Organizational process assets updates

Change requests

Project management plan updates

Project document updates

Issue Log

216
217
Measuring & Controlling Project
Performance

218
Reporting Gathering,
and recording, Monitoring
Analyzing Monitoring
comparing and approved
performance the project
actual documentin change
data for risks
project g project requests
results information

219
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
•Project •Change Requests
management plan •Expert Judgment •Work Performance
•Schedule forecasts •Analytical Reports
•Cost forecasts Techniques •Project
•Validated Changes •PMIS management plan
•Work Performance •Meetings updates
Information •Project document
•Enterprise updates
environmental
factors
•Organizational
process assets

220
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Procurement • Work
documents •Contract Change Performance
Control System
• Project Information.
•Procurement
management • Organizational
Performance
plan Reviews process asset
• Agreements •Inspections and updates
• Work Audits • Change requests
Performance •Performance • Project
Reports Reporting management
•Payment Systems plan updates
• Approved change
•Claims
requests • Project Document
Administration
• Work Updates
•Records
performance data Management System

221
Contract Change Control System
• Describes the process needed to make any changes in the contracts.

Performance Reporting

Payment System
• Used to issue payments

Claims Administration
• Changes that cant be agreed upon
• Arbitration involves bringing all parties to a table along with a third
party to reach an agreement

222
 •Meeting project scope
•Meeting project quality
Procurement
•Staying within project
Performance
budgets
Reviews
•Meeting the project
schedule

223
 • Correspondence: Needs for
Organization warning for unsatisfactory
performance and requests for
Process contract change or clarifications.
Assets • Payment schedules and requests.
Updates • Seller performance evaluation
technique.

224
Organizational process asset updates

Change requests

Project management plan updates

225
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Work
management plan • Information Performance
• Work Management Information
performance data System. • Change requests
• Project • Expert • Organizational
Communications Judgment. process assets
• Organizational • Meetings. updates
process assets • Project
• Issue Log Management Plan
update.
• Project document
update.

226
Work Performance Reports

Organizational process assets updates

Change requests

228
Influencing the factors that cause change control processes

Promptly reviewing and analyzing change requests

Managing approved changes

Maintaining the integrity of the project baselines

Promptly reviewing and analyzing corrective and preventive actions

Coordinating and managing changes across the project

Documenting requested changes and their impacts

229
With Integrated change control it provides a standardized, effective
and efficient way to centrally manage approved changes and baselines
within a project. It is focused on the specification of both the
deliverables and processes while change control is focused on
identifying, documenting and controlling changes to the project and
the product baselines.

• Configuration identification
• Configuration status accounting
• Configuration verification and auditing

230
 INPUTS
TOOLS AND OUTPUTS
• Project TECHNIQUES
• Approved
management plan
• Expert judgment change request
• Work performance
• Change control • Change Log
reports
tools. • Project
• Change requests
• Meetings management
• Enterprise plan updates
environmental
• Project
factors
document
• Organizational updates
process assets

231
232
Controlling Work Results

233
Evaluating risk response plans

Monitoring the project for risk triggers

Reexamining existing risks

Reassessing project assumptions

Ensuring that policies and procedures are followed

Ensuring that risk response plans and contingency plans are put into
action appropriately and are effective

234
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Risk register • Work performance
• Project • Risk information.
management reassessment • Organizational
plan • Risk audits process assets
• Work • Variance and updates
performance trend analysis • Change requests
data • Technical • Project management
• Work performance plan updates
performance measurement • Project document
reports • Reserve analysis updates
• Meetings

235
Risk Reassessment

Risk Audits

Technical Performance Measurement

• Compares the technical accomplishments of

project milestones during the execution.

236
Work Performance Information

Organizational process assets updates

Change requests

Project management plan updates

Project document updates

237
Monitoring changes to costs or the cost baseline.

Monitoring change requests that affect cost.

Informing stakeholders of approved changes and their

costs.

Assuring the project budget does not exceed.

238
 INPUTS TOOLS AND OUTPUTS
• Project TECHNIQUES •Work
management • Earned value performance
plan measurement (EVM) information
• Project funding • Forecasting •Cost forecast
requirements •Organizational
• To-complete
• Work process assets
performance index
performance updates
(TCPI)
data •Change requests
• Performance reviews
• Organizational •Project
• Variance analysis management plan
process assets
• Project management updates
software •Project document
updates

239
 • Planned value
• PV is also called budgeted cost
Earned value of work scheduled (BCWS).
measurement • Actual cost
(EVM) • Earned value
• EV is also called budgeted cost
of work performed (BCWP).

240
 • Cost Variance
• CV = EV – AC
• Schedule Variance
• SV = EV – PV

EVM • cost performance index (CPI)

• CPI = EV / AC
• schedule performance index
(SPI)
• SPI = EV / PV
241
242
 • Estimate At Completion (EAC)
• Estimate To Complete (ETC)
• Budget At Completion (BAC)
• EAC
• EAC=AC+(BAC-EV)

Forecasting
• EAC=BAC/CPI
• EAC=AC+[(BAC-EV)/CPI*SPI]
• ETC
• ETC=(BAC-EV)/CPI
• ETC=BAC-EV
• To-complete performance index (TCPI)
• (BAC – EV) / (BAC – AC)
• VAC(Variance At Completion)= BAC-EAC
243
Work performance information

Cost forecast

Organizational process assets updates

Change requests

Project management plan updates

Project document updates

244
 INPUTS TOOLS AND OUTPUTS
• Project TECHNIQUES
• Work performance
management • Performance reviews information
plan • Project Management • Organizational
• Project software process assets
schedule • Modeling updates
• Work Techniques • Change requests
performance • Resource • Project
data optimization management plan
• Project • Schedule updates
calendar compression • Project document
• Schedule data • Schedule tools updates
• Organizational • Leads and Lags • Schedule Forecasts
process assets

245
 INPUTS TOOLS AND OUTPUTS
• Project TECHNIQUES • Work performance
management plan • Seven Basic information
• Quality checklists Quality Tools • Validated changes
• Quality Metrics • Statistical • Quality Control
• Work performance sampling Measurements
data • Inspection • Verified deliverables
• Approved change • Approved change • Change Requests
requests request review • Organizational
• Deliverables process assets
• Organizational updates
process assets • Project management
• Project document plan updates
• Project document
updates

246
 Run Charts Scatter diagram

• Random variances • Independent

• Known variances variable(input)
• Variances that are • Dependent
always present variable(output)

247
Validated changes

Verified deliverables

Organizational process assets updates

Project management plan updates

Project document updates

Work Performance Information

Quality Control Measurements

248
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Work
management plan • Variance performance
• Work Analysis information
performance data • Organizational
• Requirements process assets
documentation updates
• Requirements • Change requests
traceability matrix • Project
• Organizational management plan
process assets updates
• Project document
updates

249
You should perform Validate Scope even if the project is
canceled to document the degree to which the project was
completed.

Purpose of the Validate Scope process is to formally accept

completed deliverables and obtain sign-off that the deliverables
are satisfactory and meet stakeholders’ expectations.

Validate Scope formalizes the acceptance of the project scope

and is primarily concerned with the acceptance of work results.

250
 INPUTS TOOLS AND OUTPUTS
• Project TECHNIQUES • Accepted
management • Inspection deliverables
plan • Group decision- • Change
• Requirements making techniques requests
documentation • Work
• Requirements performance
traceability information
matrix • Project
• Verified document
deliverables updates
• Work
Performance
data

251
Control Stakeholder Management

Inputs Tools and Outputs

Techniques
• Project • Work Performance
Management • Information Information
Plan Management • Change Requests
• Issue Log System • Project
• Work • Expert Management Plan
performance Judgments
• Project document
data • Meetings updates
• Project • Organizational
documents Process Assets
updates

252
253
Applying Professional
Responsibility

254
Project is completed successfully when it meets or exceeds
stakeholders’ expectations and satisfies the goals of the project.

Risk is lowest.

Project Endings

• Addition
• Starvation
• Integration
• Extinction

255
 INPUTS TOOLS AND OUTPUTS
• Project
TECHNIQUES • Final product,
management • Expert service, or
plan Judgment result
• Accepted transition
• Analytical
deliverables Techniques • Organizational
• Organizational process assets
• Meetings
process assets updates

256
 INPUTS TOOLS AND OUTPUTS
TECHNIQUES
• Project • Closed
management • Procurement Procurements
plan audits • Organizational
• Procurement • Negotiated process assets
documentation settlements updates
• Records
management
system

Close Procurements process is concerned with

completing and settling the terms of the procurement.

257
The PMI Code
of Ethics and •Responsibility
Professional •Respect
Conduct
outlines four •Fairness
areas of •Honesty
responsibility

258
 Laws and
Ensuring Accepting Confidential Intellectual
Regulations
Integrity Assignments Information Property
Compliance

259
 Reporting Respecting
Professional Cultural Perceiving
Ethics Your
behavior Awareness Experience
Violations Neighbors

260
Conflict of Vendor Stakeholder
Interest Gifts Influence

261
Personal Truthful
Gain Reporting

262
263