MS Projects Day 2 Final

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    Computer based Project ManagementUsing MS Project 2010

    Training program on

    Day 2

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    The Project Management Knowledge Areas

    The Project Management Knowledge Areas, organizes the 44 project

    management processes from the Project Management Process Groupsinto nine Knowledge Areas, as described below.

    Project Integration Management

    Project Scope Management

    Project Time Management

    Project Cost Management

    Project Quality Management

    Project Human Resource Management

    Project Communications Management

    Project Risk Management

    Project Procurement Management

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    These processes are aggregated into five groups, defined as the

    Project Management Process Groups:

    Initiating Process Group. Defines and authorizes the project or a

    project phase.

    Planning Process Group. Defines and refines objectives, and plans

    the course of action required to attain the objectives and scope that

    the project was undertaken to address.

    Executing Process Group. Integrates people and other resources to

    carry out the project management plan for the project.

    Monitoring and Controlling Process Group. Regularly measures

    and monitors progress to identify variances from the project

    management plan so that corrective action can be taken when

    necessary to meet project objectives.Closing Process Group. Formalizes acceptance of the product,

    service or result and brings the project or a project phase to an orderly

    end.

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    Initiating Process Group

    The Initiating Process Group consists of the processes that facilitate

    the formal authorization to start a new project or a project phase.

    1. Develop Project Charter

    2. Identify Stakeholders

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    Planning Process Group

    The project management team uses the Planning Process Group and

    its constituent processes and interactions to plan and manage a

    successful project for the organization.The Planning Process Group includes the following project

    management processes:

    1. Develop Project Management Plan

    2. Collect Requirements

    3. Define Scope

    4. Create WBS

    5. Define Activities

    6. Sequence Activities

    7. Estimate Activity Resources

    8. Estimate Activity Durations

    9. Develop Schedule

    10. Estimate Costs

    11. Determine Budget

    12. Plan Quality

    13. Develop Human Resource Plan

    14. Plan Communications

    15. Plan Risk Management

    16. Identify Risks

    17. Perform Qualitative Risk Analysis

    18. Perform Quantitative Risk Analysis

    19. Plan Risk Responses

    20. Plan Procurements

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    Executing Process Group

    The Executing Process Group consists of the processes used to

    complete the work defined in the project management plan toaccomplish the project's requirements. The project team should

    determine which of the processes are required for the team's specific

    project. This Process Group involves coordinating people and

    resources, as well as integrating and performing the activities of the

    project in accordance with the project management plan.

    1. Direct and Manage Project Execution

    2. Perform Quality Assurance

    3. Acquire Project Team

    4. Develop Project Team

    5. Manage Project Team

    6. Distribute Information

    7. Manage Stakeholder Expectations

    8. Conduct Procurements

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    Monitoring and Controlling Process Group

    The Monitoring and Controlling Process Group consists of those

    processes performed to observe project execution so that potential

    problems can be identified in a timely manner and corrective action canbe taken, when necessary, to control the execution of the project. The

    project team should determine which of the processes are required for

    the team's specific project. The key benefit of this Process Group is that

    project performance is observed and measured regularly to identify

    variances from the project management plan. The Monitoring andControlling Process Group also includes controlling changes and

    recommending preventive action in anticipation of possible problems.

    1. Monitor and Control Project Work

    2. Perform Integrated Change Control3. Verify Scope

    4. Control Scope

    5. Control Schedule

    6. Control Costs

    7. Perform Quality Control8. Report Performance

    9. Monitor and Control Risks

    10. Administer Procurements

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    Closing Process Group

    The Closing Process Group includes the processes used to

    formally terminate all activities of a project or a project phase, hand

    off the completed product to others or close a cancelled project.

    This Process Group, when completed, verifies that the defined

    processes are completed within all the Process Groups to close the

    project or a project phase, as appropriate, and formally establishes

    that the project or project phase is finished.

    1. Close Project or Phase

    2. Close Procurements

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    Now we will discuss the Body of Knowledge

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    Project Integration Management

    The Project Integration Management Knowledge Area includes the

    processes and activities needed to identify, define, combine, unify, and

    coordinate the various processes and project management activities

    within the Project Management Process Groups. In the project

    management context, integration includes characteristics of unification,

    consolidation, articulation, and integrative actions that are crucial to

    project completion, successfully meeting customer and other

    stakeholder requirements, and managing expectations.

    The integrative project management processes include:

    Develop Project Charter

    Develop Project management Plan

    Direct and Manage Project Execution

    Monitor and Control Project Work

    Perform Integrated Change Control

    Close Project or Phase

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    1 Develop Project Charter

    The process of developing a document that formally authorizes a

    project or a phase and documenting initial requirements that satisfythe stakeholders needs and expectations.

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    2 Develop Project management Plan

    The process of documenting the actions necessary to define,

    prepare, integrate, and coordinate all subsidiary plans.

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    3 Direct and manage Project execution

    The process of performing the work defined in the

    project management plan to achieve the projects objectives.

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    4monitor and Control Project work

    The process of tracking, reviewing, and regulating the progress to

    meet the performance objectives defined in the project managementplan.

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    5 Perform Integrated Change Control

    The process of reviewing all change requests, approving changes,

    and managing changes to the deliverables, organizational processassets, project documents, and the project management plan.

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    6Close Project or Phase

    The process of finalizing all activities across all of the Project

    Management Process Groups to formally complete the project orphase.

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    Project Scope Management

    Project Scope Management includes the processes required to ensure

    that the project includes all the work required, and only the work required,

    to complete the project successfully. Project scope management isprimarily concerned with defining and controlling what is and is not

    included in the project.

    In the project context, the term scope can refer to:

    Product scope. The features and functions that characterize a product,service, or result

    Project scope. The work that needs to be accomplished to deliver a

    product, service, or result with the specified features and functions.

    Collect Requirements

    Define Scope

    Create WBS

    Verify Scope

    Control Scope

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    1 Collect Requirements

    The process of defining and documenting stakeholders needs to

    meet the project objectives.

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    2Define Scope

    The process of developing a detailed description of the project

    and product.

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    3Create WBS

    The process of subdividing project deliverables and project work into

    smaller, more manageable components.

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    Using the Work Breakdown Structure to Plan a Project

    The most useful tool for project planning is the Work Breakdown

    Structure (WBS).

    The idea behind the WBS is simple: You can subdivide acomplicated task into smaller tasks, until you reach a level that

    cannot be further subdivided.

    At that point, it is usually easier to estimate how long the small task

    will take and how much it will cost to perform than.

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    Note that we do not worry about the sequence in which work is

    performed when we do a WBS. That will be worked out when we

    develop a schedule.

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    WBS level

    The typical WBS has three to six levels. It is, of course, possible to

    have projects that require a lot more levels.

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    Guidelines for Developing the WBS

    One important question in constructing a WBS is When do you stop

    breaking down the work?The general guideline is that you stop when you reach a point where

    either you can estimate time and cost to the desired degree of

    accuracy or the work will take an amount of time equal to the

    smallest units you want to schedule. If, for instance, you want to

    schedule to the nearest day, you break down the work to the point

    where tasks take about a day to perform. If you are going to schedule

    to the nearest hour, then you stop when task durations are in that

    range.

    Remember the rule that the people who must do the work should

    participate in planning it? That applies here. Usually a core groupidentifies top-level parts of the WBS; those parts are further refined

    by other members of the team and then integrated to obtain the entire

    WBS.

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    4Verify Scope

    The process of formalizing acceptance of the completed project

    deliverables.

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    5Control Scope

    The process of monitoring the status of the project and product

    scope and managing changes to the scope baseline.

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    Project Time Management

    The Project Time Management processes include the following:

    Define Activities

    Sequence Activities

    Estimate Activity Resources

    Estimate Activity Durations

    Develop Schedule

    Control Schedule

    Project Time Management includes the processes required to

    accomplish timely completion of the project.

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    1Define Activities

    The process of identifying the specific actions to be performed to

    produce the project deliverables.

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    2 Sequence Activities

    The process of identifying and documenting relationships among

    the project activities.

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    3Estimate Activity Resources

    The process of estimating the type and quantities of material, people,

    equipment, or supplies required to perform each activity.

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    4 Estimate Activity Durations

    The process of approximating the number of work periods needed to

    complete individual activities with estimated resources.

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    Estimating Time, Costs, and Resources

    Once the work is broken down, you can estimate how long it

    will take.

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    5 Develop Schedule

    The process of analyzing activity sequences, durations, resource

    requirements, and schedule constraints to create the project schedule.

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    Scheduling Techniques

    1. Ensure that all activities areplanned for

    2. Their order of performance isaccounted for

    3. The activity time estimates arerecorded

    4. The overall project time isdeveloped

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    Gantt chart

    Critical Path Method (CPM)

    Program Evaluation and Review

    Technique (PERT)

    Scheduling Techniques

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    A Simple Gantt Chart

    Time

    J F M A M J J A S

    Design

    Prototype

    Test

    Revise

    Production

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    Network techniques

    Developed in 1950s

    CPM by DuPont for chemical plants (1957)

    PERT by Booz, Allen & Hamilton with theU.S. Navy, for Polaris missile (1958)

    Consider precedence relationships and

    interdependencies

    Each uses a different estimate of activity

    times

    PERT and CPM

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    Six Steps PERT & CPM

    1. Define the project and prepare the work

    breakdown structure

    2. Develop relationships among theactivities - decide which activities must

    precede and which must follow others

    3. Draw the network connecting all of theactivities

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    Six Steps PERT & CPM

    4. Assign time and/or cost estimates to

    each activity

    5. Compute the longest time path throughthe network this is called the critical

    path

    6. Use the network to help plan,schedule, monitor, and control the

    project

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    CPM assumes we know a fixed time

    estimate for each activity and there is

    no variability in activity times PERT uses a probability distribution for

    activity times to allow for variability

    Variability in Activity Times

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    Three time estimates are required

    Optimistic time (a) if everything goes

    according to planPessimistic time (b) assuming very

    unfavorable conditions

    Most likely time (m) most realisticestimate

    Variability in Activity Times

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    EXTENSIONS TO PERT/CPM

    Precedence Diagramming

    Finish-to-start linkage

    Start-to-start linkage

    Finish-to-finish linkage Start-to-finish linkage

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    Graphical Evaluation and

    Review Technique (GERT)

    combines flowgraphs, probabilisticnetworks, and decision trees

    allows loops back to earlier events and

    probabilistic branching

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    6Control Schedule

    The process of monitoring the status of the project to update project

    progress and managing changes to the schedule baseline.

    P j t C t M t

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    Project Cost Management

    Project Cost Management includes the processes involved in

    planning, estimating, budgeting, and controlling costs so that theproject can be completed within the approved budget.

    Cost Estimating

    Cost BudgetingCost Control

    1 E ti t C t

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    1Estimate Costs

    The process of developing an approximation of the monetary

    resources needed to complete project activities.

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    2Determine Budget

    The process of aggregating the estimated costs of individual

    activities or work packages to establish an authorized cost baseline.

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    3Control Costs

    The process of monitoring the status of the project to update the

    project budget and managing changes to the cost baseline.

    Project Quality Management

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    Project Quality Management

    Project Quality Management processes include all the activities of the

    performing organization that determine quality policies, objectives, and

    responsibilities so that the project will satisfy the needs for which it wasundertaken. It implements the quality management system through the

    policy, procedures, and processes of quality planning, quality assurance,

    and quality control, with continuous process improvement activities

    conducted throughout, as appropriate.

    The Project Quality Management processes include the following:

    Quality Planning

    Perform Quality AssurancePerform Quality Control

    Modern quality management complements project management For

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    Modern quality management complements project management. For

    example, both disciplines recognize the importance of:

    Customer satisfaction. Understanding, evaluating, defining, and

    managing expectations so that customer requirements are met. Thisrequires a combination of conformance to requirements (the project

    must produce what it said it would produce) and fitness for use (the

    product or service must satisfy real needs).

    Prevention over inspection. The cost of preventing mistakes is

    generally much less than the cost of correcting them, as revealed by

    inspection.

    Management responsibility. Success requires the participation of all

    members of the team, but it remains the responsibility of management to

    provide the resources needed to succeed.

    Continuous improvement. The plan-do-check-act cycle is the basis for

    quality improvement. In addition, quality improvement initiativesundertaken by the performing organization, such as TQM and Six

    Sigma, can improve the quality of the project's management as well as

    the quality of the project's product. Process improvement models include

    Malcolm Baldrige, CMM, and CMMISM

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    The word quality has many meanings:

    A degree of excellence

    Conformance with requirements

    The totality of characteristics of an entity that bear on its ability to

    satisfy stated or implied needs Fitness for use

    Fitness for purpose

    Freedom from defects imperfections or contamination

    Delighting customers

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    Customer

    Organization that receives a product or service includes:

    Purchaser, consumer, client, end user, retailer or beneficiary

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    Employees

    Employees may not be interested in the products and services, but are

    interested in the conditions in which they are required to work.

    Employees are stakeholders because they can withdraw their labour.

    Stakeholder.

    The individuals and constituencies that contribute, either voluntarily

    or involuntarily, to an organizations wealth-creating capacity and

    activities, and that are therefore its potential beneficiaries and/or riskbearers.

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    Suppliers

    Suppliers are interested in the success of the organization because

    it may in turn lead to their success. However, suppliers are also

    stakeholders because they can withdraw their patronage. They can

    choose their customers. If you treat your suppliers badly such as

    delaying payment of invoices for trivial mistakes, you may find they

    terminate the supply at the first opportunity putting your

    organization into a difficult position relative to its customer

    commitments.

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    Quality

    Quality can be defined as the degree to which a set of inherentcharacteristics fulfils a need or expectation that is stated, general

    implied or obligatory.

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    Q lit h t i ti

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    Quality characteristics

    Accessibility Functionality Size

    Availability Interchangeability Susceptibility

    Appearance Maintainability StorabilityAdaptability Odour Strength

    Cleanliness Operability Taste

    Consumption Portability Testability

    Durability Producibility Traceability

    Disposability Reliability ToxicityEmittance Reparability Transportability

    Flammability Safety Vulnerability

    Flexibility Security Weight

    Any feature or characteristic of a product or service that is needed

    to satisfy customer needs or achieve fitness for use is a qualitycharacteristic.

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    Service quality characteristics

    Accessibility Credibility Honesty

    Accuracy Dependability Promptness

    Courtesy Efficiency Responsiveness

    Comfort Effectiveness Reliability

    Competence Flexibility Security

    Q lit t

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    Quality parameters

    Quality of design is the extent to which the design reflects a product or

    service that satisfies customer needs and expectations. All thenecessary characteristics should be designed into the product or service

    at the outset.

    Quality of conformance is the extent to which the product or serviceconforms to the design standard. The design has to be faithfully

    reproduced in the product or service.

    Quality of use is the extent by which the user is able to securecontinuity of use from the product or service. Products need to have a

    low cost of ownership, be safe and reliable, maintainable in use and

    easy to use.

    Dimensions of quality

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    Dimensions of quality

    The business quality dimension. This is the extent to which thebusiness serves the needs of all interested parties and is the outward

    facing view of the organization. The interested parties are not only

    interested in the quality of particular products and services but judge

    organizations by their potential to create wealth, the continuity of

    operations, the sustainability of supply, care of the environment, and

    adherence to health, safety and legal regulations.

    The product quality dimension. This is the extent to which theproducts and services provided meet the needs of specific customers.

    The organization quality dimension. This is the extent to which the

    organization maximizes its efficiency and effectiveness and is the inwardfacing view of the organization. Efficiency is linked with productivity

    which itself is linked with the motivation of personnel and the capability

    and utilization of resources. Effectiveness is linked with the utilization of

    knowledge focusing on the right things to do. This directly affects all

    aspects of quality.

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    Achieving sustaining and improving quality

    Several methods have evolved to achieve, sustain and improve

    quality; they are quality control, quality improvement and qualityassurance, which collectively are known as quality management.

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    Quality management

    There are two schools of thought on quality management.

    1 What are you trying to do?

    2 How do you make it happen?

    3 How do you know its right?

    4 How do you know its the best way of doing it?5 How do you know its the right thing to do?

    1 How do you know what is needed?

    2 What could affect your ability to do it right?

    3 What checks are made to verify achievement?4 How do you ensure the integrity of these checks?

    5 What action is taken to prevent a recurrence of failure?

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    Customer focus

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    Customer focus

    Organizations depend on their customers and therefore should

    understand current and future customer needs, meet customer

    requirements and strive to exceed customer expectations.

    Inward seeking focusto

    Outward seeking focus

    Leadership

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    Leadership

    Leaders establish unity of purpose and direction for the organization.

    They should create and maintain the internal environment in which

    people can become fully involved in achieving the organizationsobjectives.

    Aggravationto

    Motivation

    Involvement of people

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    p p

    People at all levels are the essence of an organization and their full

    involvement enables their abilities to be used for the organizations

    benefit.

    Operateto

    Cooperate

    Process approach

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    Process approach

    A desired result is achieved more efficiently when related

    resources and activities are managed as a process.

    Procedure approachto

    Process approach

    System approach to management

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    System approach to management

    Identifying, understanding and managing interrelated processes as

    a system contributes to the organizations effectiveness and

    efficiency in achieving its objectives.

    Functional approachto

    Systems approach

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    Factual approach to decision making

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    pp g

    Effective decisions are based on the analysis of data and information.

    Subjectiveto

    Objective

    Mutually beneficial supplier relationships

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    Mutually beneficial supplier relationships

    An organization and its suppliers are interdependent and a mutually

    beneficial relationship enhances the ability of both to create value.

    Adversarial approachto

    Alliance approach

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    The Project Quality Management processes include the following:

    Quality Planning - identifying which quality standards are relevant to

    the project and determining how to satisfy them.

    Perform Quality Assurance - applying the planned, systematic

    quality activities to ensure that the project employs all processes

    needed to meet requirements.

    Perform Quality Control - monitoring specific project results to

    determine whether they comply with relevant quality standards andidentifying ways to eliminate causes of unsatisfactory performance.

    Modern quality management complements project management. For example,

    both disciplines recognize the importance of:

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    both disciplines recognize the importance of:

    Customer satisfaction. Understanding, evaluating, defining, and managing

    expectations so that customer requirements are met. This requires a

    combination of conformance to requirements (the project must produce what itsaid it would produce) and fitness for use (the product or service must satisfy

    real needs).

    Prevention over inspection. The cost of preventing mistakes is generally

    much less than the cost of correcting them, as revealed by inspection.

    Management responsibility. Success requires the participation of all members

    of the team, but it remains the responsibility of management to provide the

    resources needed to succeed.

    Continuous improvement. The plan-do-check-act cycle is the basis for quality

    improvement. In addition, quality improvement initiatives undertaken by the

    performing organization, such as TQM and Six Sigma, can improve the quality

    of the project's management as well as the quality of the project's product.

    Process improvement models include Malcolm Baldrige, CMM, and CMMISM.

    Quality control (QC)

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    Quality management systems

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    ISO 9000 defines a quality management as a set of interrelated or

    interacting processes that achieve the quality policy and quality

    objective.

    Safety systems to serve safety objectives

    Environmental systems to serve environmental objectives

    Security systems to serve security objectives

    Human resource systems to serve human resource objectives

    Marketing systems to serve marketing objectivesInnovation systems to serve innovation objectives

    Financial systems to serve financial objectives

    The QMS is not part of the management system

    IT IS the management system

    Process management

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    g

    The 1994 version of ISO 9000 created a notion that quality

    management was about following procedures.

    The procedural approach is about how you do things and processesare about what you do.

    The procedural approachis about doing a task, conforming to the rules, doing what we are

    told to do.

    The process approach is about, understanding needs, doingwhatever it takes to make it happen, finding the best way of fulfilling

    these needs even if it means changing the way we do our job.

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    ISO 9000 Quality Management Systems

    To ensure that the necessary quality processes are in place, quality

    management systems (QMS), which may well cover the whole

    spectrum of an organization, have to be established and regularly

    monitored. Guidelines for quality management and quality assurance

    standards are published by BSI in the ISO 9000, 9001 and 9004

    series of standards.

    ISO 9000 Quality management systems Fundamentals and

    vocabulary

    ISO 9001 Quality management systems Requirements

    ISO 9004 Quality management systems Guidelines for

    performance improvements

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    Quality Planning: Tools and Techniques

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    Quality Planning: Tools and Techniques

    .1 Cost-Benefit Analysis

    .2 Benchmarking

    .3 Design of Experiments

    .4 Cost of Quality (COQ)

    .5 Additional Quality Planning Tools

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    .1 Cost-Benefit Analysis

    Quality planning must consider cost-benefits tradeoffs. The primary

    benefit of meeting quality requirements is less rework, which means

    higher productivity, lower costs, and increased stakeholder

    satisfaction. The primary cost of meeting quality requirements is the

    expense associated with Project Quality Management activities.

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    .2 Benchmarking

    Benchmarking involves comparing actual or planned project practices

    to those of other projects to generate ideas for improvement and to

    provide a basis by which to measure performance. These other

    projects can be within the performing organization or outside of it, and

    can be within the same or in another application area.

    .3 Design of Experiments

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    Design of experiments (DOE) is a statistical method that helps identify

    which factors may influence specific variables of a product or process

    under development or in production. It also plays a role in theoptimization of products or processes. An example is where an

    organization can use DOE to reduce the sensitivity of product

    performance to sources of variations caused by environmental or

    manufacturing differences. The most important aspect of this

    technique is that it provides a statistical framework for systematicallychanging all of the important factors, instead of changing the factors

    one at a time. The analysis of the experimental data should provide

    the optimal conditions for the product or process, highlighting the

    factors that influence the results, and revealing the presence of

    interactions and synergisms among the factors. For example,

    automotive designers use this technique to determine which

    combination of suspension and tires will produce the most desirable

    ride characteristics at a reasonable cost.

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    .4 Cost of Quality (COQ)

    Quality costs are the total costs incurred by investment in preventing

    nonconformance to requirements, appraising the product or service forconformance to requirements, and failing to meet requirements

    (rework). Failure costs are often categorized into internal and external.

    Failure costs are also called cost of poor quality.

    The total cost of curing a problem once it has occurred is generallyhigher than the cost of preventing the problem in the first place. It is

    apparent that the potential savings between the cost of defects and the

    cost of prevention are great. Generally, many of the costs of defects

    are not recognized in an organized way to reflect their true cost. This is

    because when some of the costs of these defects are recognized, theproject has been turned over to a maintenance and support function.

    The project team may have been dissolved, and the members may be

    working on other projects.

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    Costs of Prevention

    Education and training of project team and stakeholders

    Inspection and testing of the internal and external deliverables of the

    project

    Improved designs for quality purposes

    Quality staff

    Quality audits

    Quality plan and execution

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    Costs of Defects

    Scrap

    Rework

    Repair

    Replacement of defective parts and inventory

    Repairs after the delivery of the product

    Loss of future business with the stakeholder

    Legal issues for nonconformance

    Liability for defect

    Risk to life and property

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    1 Plan Quality

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    The process of identifying quality requirements and/or standards for

    the project and product, and documenting how the project will

    demonstrate compliance.

    2 Perform Quality Assurance

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    The process of auditing the quality requirements and the results

    from quality control measurements to ensure appropriate quality

    standards and operational definitions are used.

    3 Perform Quality Control

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    The process of monitoring and recording results of executing the

    quality activities to assess performance and recommend necessary

    changes.

    Quality Control: Tools and Techniques

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    .1 Cause and Effect Diagram

    .2 Control Charts

    .3 Flowcharting

    .4 Histogram

    .5 Pareto Chart

    .6 Run Chart

    .7 Scatter Diagram

    .8 Statistical Sampling

    .9 Inspection

    .10 Defect Repair Review

    .11 Checklists

    .12 Kaizen

    .13 Benchmarking

    The first seven of these are known as the Seven Basic Tools of Quality.

    1 Cause and Effect Diagram

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    .1 Cause and Effect Diagram

    Cause and effect diagrams, also called Ishikawa diagrams

    or fishbone diagrams, illustrate how various factors might

    be linked to potential problems or effects.

    .2 Control Charts

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    A control chart's purpose is to determine whether or not a

    process is stable or has predictable performance. Control

    charts may serve as a data gathering tool to show when aprocess is subject to special cause variation, which creates

    an out-of-control condition.

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    .4 Histogram

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    A histogram is a bar chart showing a distribution of variables.

    Each column represents an attribute or characteristic of a

    problem/situation. The height of each column represents therelative frequency of the characteristic. This tool helps

    identify the cause of problems in a process by the shape and

    width of the distribution.

    .5 Pareto Chart

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    A Pareto chart is a specific type of histogram, ordered by

    frequency of occurrence, which shows how many defects

    were generated by type or category of identified cause. The

    Pareto technique is used primarily to identify and evaluate

    nonconformities.

    In Pareto diagrams, rank ordering is used to guide corrective

    action. The project team should take action to fix theproblems that are causing the greatest number of defects

    first. Pareto diagrams are conceptually related to Pareto's

    Law, which holds that a relatively small number of causes

    will typically produce a large majority of the problems ordefects. This is commonly referred to as the 80/20 principle,

    where 80 percent of the problems are due to 20 percent of

    the causes. Pareto diagrams also can be used to summarize

    all types of data for 80/20 analyses.

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    .6 Run Chart

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    A run chart shows the history and pattern of variation. A run

    chart is a line graph that shows data points plotted in theorder in which they occur. Run charts show trends in a

    process over time, variation over time, or declines or

    improvements in a process over time. Trend analysis is

    performed using run charts. Trend analysis involves usingmathematical techniques to forecast future outcomes based

    on historical results. Trend analysis is often used to monitor:

    Technical performance. How many errors or defects have been

    identified, how many remain uncorrected?

    Cost and schedule performance. How many activities per period were

    completed with significant variances?

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    .8 Statistical Sampling

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    Statistical sampling involves choosing part of a population of

    interest for inspection (for example, selecting ten engineeringdrawings at random from a list of seventy- five). Appropriate

    sampling can often reduce the cost of quality control. There is

    a substantial body of knowledge on statistical sampling; in

    some application areas, it may be necessary for the projectmanagement team to be familiar with a variety of sampling

    techniques.

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    10 Defect Repair Review

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    .10 Defect Repair Review

    Defect repair review is an action taken by the qualitycontrol department or similarly titled organization to ensure

    that product defects are repaired and brought into

    compliance with requirements or specifications.

    .11 Checklists

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    .11 Checklists

    Checklists are a sample tool that is used to keep from

    overlooking items of importance. A checklist is really just

    an instruction sheet for an inspector to use. The items in

    the checklist should be significant items. If a checklist is

    seen as a superfluous document, it will not be used.

    .12 Kaizen

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    .12 Kaizen

    Kaizen is one of the many quality techniques that come to us

    from the work of the Japanese. The Japanese word forcontinuous improvement is kaizen. Using this method, the

    managers as well as the workers and everyone else are

    continuously on the lookout for opportunities to improve

    quality. Thus the quality of a process improves in smallincrements on a continuous basis.

    In this kaizen way of doing things, even the processes that

    are operating without problems are continuously under

    scrutiny. A process is observed to be making acceptable

    parts, but is seen to be slow, or there is an opportunity for

    even greater quality than is required.

    .13 Benchmarking

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    Benchmarking is the process of comparing the

    performance of a current process to that of another similarprocess to determine the differences between them. If a

    machine can manufacture two hundred parts an hour and a

    new machine is compared to the old machine, the

    benchmark for the existing process on the old machine istwo hundred parts per hour.

    Project Human Resource Management

    P j t H R M t i l d th th t

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    Project Human Resource Management includes the processes that

    organize and manage the project team. The project team is comprised

    of the people who have assigned roles and responsibilities for

    completing the project. While it is common to speak of roles and

    responsibilities being assigned, team members should be involved in

    much of the project's planning and decision-making. Early involvement

    of team members adds expertise during the planning process and

    strengthens commitment to the project. The type and number of project

    team members can often change as the project progresses. Projectteam members can be referred to as the project's staff.

    The Project Human Resource Management processes include the

    following:

    Human Resource PlanningAcquire Project Team

    Develop Project Team

    Manage Project Team

    1 Develop Human Resource Plan

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    The process of identifying and documenting project roles,

    responsibilities, and required skills, reporting relationships, and creating

    a staffing management plan.

    2 Acquire Project Team

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    The process of confirming human resource availability and obtaining

    the team necessary to complete project assignments.

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    4 Manage Project Team

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    The process of tracking team member performance, providing

    feedback, resolving issues, and managing changes to optimize project

    performance.

    Project Communications Management

    Project Communications Management is the Knowledge Area that

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    j g g

    employs the processes required to ensure timely and appropriate

    generation, collection, distribution, storage, retrieval, and ultimate

    disposition of project information. The Project CommunicationsManagement processes provide the critical links among people and

    information that are necessary for successful communications. Project

    managers can spend an inordinate amount of time communicating with

    the project team, stakeholders, customer, and sponsor. Everyone

    involved in the project should understand how communications affect theproject as a whole.

    The Project Communications Management processes include the

    following:Identify Stakeholders

    Plan CommunicationsDistribute Information

    Manage Stakeholder Expectations

    Report Performance

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    3Distribute Information

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    The process of making relevant information available to project

    stakeholders as planned.

    4 Manage Stakeholder Expectations

    The process of comm nicating and orking ith stakeholders to

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    The process of communicating and working with stakeholders to

    meet their needs and addressing issues as they occur.

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    Project Risks

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    With projects, however, this luxury of ignoring the risks cannot be

    permitted.

    By their very nature, because projects are inherently unique and

    often incorporate new techniques and procedures, they are risk

    prone and risk has to be considered right from the start.

    It then has to be subjected to a disciplined regular review andinvestigative procedure known as risk management.

    We will consider an example

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    A owner of a semi-detached house decides to replace part of his roof with

    solar panels to save on his hot water heating bill.

    So what are the risks associated with this work ???

    Risk 1 The installer may fall off the roof;

    Risk 2 The roof may leak after completion;

    Risk 3 The panels may break after installation;

    Risk 4 Birds may be foul the panels;

    Risk 5 The electronic controls may not work;

    Risk 6 The heat recovered may not be sufficient to heat the water on a cold day;

    Risk 7 It may not be possible to recover the cost if the house is sold within 23 years;

    Risk 8 The cost of the work will probably never pay for itself;

    Risk 9 The cost may escalate due to unforeseen structural problems.

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    Project Risks

    Project risk is an ncertain e ent or condition that if it occ rs has a

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    Project risk is an uncertain event or condition that, if it occurs, has a

    positive or a negative effect on at least one project objective, such as

    time, cost, scope, or quality.A risk may have one or more causes and, if it occurs, one or more impacts.

    If any uncertain events occurs, there may be an impact on the project cost,

    schedule, or performance.

    Project risk has its origins in the uncertainty that is present in all projects.

    Risk = f (probability of occurrence, Impact)

    Risk has two primary components for a given event:

    A probability (likelihood) of occurrence of that event

    Impact of the event occurring (amount at stake)

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    Known risks and Unknown risks

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    Known risks are those that have been identified and analyzed, and it may be

    possible to plan for those risks using the processes described in this.

    Unknown risks cannot be managed proactively, and a prudent response by the

    project team can be to allocate general contingency against such risks, as well

    as against any known risks for which it may not be cost-effective or possible to

    develop a proactive response.

    Organizations perceive risk as it relates to threats to project success, or to

    opportunities to enhance chances of project success. Risks that are threats to

    the project may be accepted if the risk is in balance with the reward that maybe gained by taking the risk.

    Balance between threats and opportunities

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    1 Plan Risk Management

    The process of defining how to conduct risk management activities for

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    The process of defining how to conduct risk management activities for

    a project.

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    3 Perform Qualitative Risk Analysis

    The process of prioritizing risks for further analysis or action by

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    The process of prioritizing risks for further analysis or action by

    assessing and combining their probability of occurrence and impact.

    4 Perform Quantitative Risk Analysis

    The process of numerically analyzing the effect of identified risks on

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    overall project objectives.

    5 Plan Risk Responses

    Th f d l i ti d ti t h

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    The process of developing options and actions to enhance

    opportunities and to reduce threats to project objectives.

    6 Monitor and Control Risks

    The process of implementing risk response plans, tracking identified

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    risks, monitoring residual risks, identifying new risks, and evaluating risk

    process effectiveness throughout the project.

    Project Procurement Management

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    Project Procurement Management includes the processes to purchase

    or acquire the products, services, or results needed from outside the

    project team to perform the work. This chapter presents two

    perspectives of procurement. The organization can be either the buyer

    or seller of the product, service, or results under a contract.

    The Project Procurement Management processes include the following:

    Plan Procurements

    Conduct Procurements

    Administer Procurements

    Close Procurements

    1Plan Procurements

    The process of documenting project purchasing decisions, specifying

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    the approach, and identifying potential sellers.

    2 Conduct Procurements

    The process of obtaining seller responses, selecting a seller, and

    awarding a contract

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    awarding a contract.

    3Administer Procurements

    The process of managing procurement relationships, monitoring

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    contract performance, and making changes and corrections as needed.

    4 Close Procurements

    The process of completing each project procurement.

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    Project Management Software

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    j g

    There are several popular packages for

    managing projects

    Primavera

    MacProject

    Pertmaster

    VisiSchedule

    Time Line

    Microsoft Project

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    MS Project 2010

    The Project 2007 Screen

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    Creating a New Project Plan

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    You can create a new project in three ways:

    open a new, blank project;

    open a project template that contains sample tasks;

    open a project based on an existing project.

    General project information

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    Start Date : Specify the start date for the project.

    Finish Date : Finish date for the project.

    Schedule from : Project start date or Project finish date.

    Current date : Set the current date.

    Status date : Set a status date.

    Calendar : Set the working calendar for your project.

    Priority : Assign a priority to your project.

    Project Properties

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    Calendars

    There are four types of calendars :

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    There are four types of calendars :

    Base CalendarProject Calendar

    Resource Calendar

    Task Calendar

    Base calendar: This is the calendar template that all other calendars

    are built on top of.

    Three Base calendars are available:

    Standard calendar

    24 Hours calendarNight Shift calendar

    Base Calendar

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    Standard: The default setting. It sets a working day as 8 a.m.5

    p.m. with an hour for lunch and a five-day, MondayFridayworkweek.

    24 Hours:Allows work to go on around the clock every day of the

    week.

    Night Shift: Sets Sunday as a nonworking day, three shifts

    Tuesday through Friday, two shifts on Saturday, and one on

    Monday.

    Adjusting Working Hours

    Setting a Project Calendar

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    Adjusting Working Hours

    Setting a Project Calendar

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    Adjusting Working Days

    Setting a Project Calendar

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    Creating a Project Calendar Selecting the Project Calendar

    Setting calendar options

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    View the project Calendar

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    Tasks

    Entering a Task List

    You can create tasks by using a few different methods:

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    You can create tasks by using a few different methods:

    Enter task data in a Gantt Chart view sheet pane. Enter data in a Task Information dialog box.

    Enter task data in Network Diagram view

    Enter task data in Calendar view

    To create a task, you enter information such as

    Task name

    Task duration

    Task type Task priority

    Constraints for scheduling the task

    Creating a task in Gantt Chart view

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    Import tasks from Excel

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    Copy

    Paste

    Enter task data in Network Diagram view

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    Enter Task Data in Calendar view

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    Durations for a Task

    A tasks duration is the amount of time you expect it will take to

    l t th t k

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    complete the task.

    Project can work with task durations that range from minutes to

    months. Depending on the scope of your project, youll probably want

    to work with task durations on the scale of hours, days, and weeks.

    If you enter this abbreviation It appears like this And it means

    m min minute

    h hr hour

    d day day

    w wk week

    mo mon month

    Estimating Durations for a Task

    MS Projects cant tell you how long each task in your project will

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    take. Thats up to each project manager to figure out.

    Estimating the duration of tasks isnt a science. A tasks duration is

    usually based on your experience with similar tasks and your

    knowledge of the specifics of your project.

    Deciding how finely to break down your tasks can affect howefficiently youre able to track progress on those tasks.

    The Project Management Institute provides a suggestion that task

    durations range from 4 to 80 hours, as a rule of thumb.

    Organizing Tasks into Phases

    The more tasks you have in a project the more confusing things can

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    The more tasks you have in a project, the more confusing things can

    become. Therefore, it's helpful to organize your tasks into phases, or

    groups of related tasks. In Project, phases are grouped by summary

    tasks. Tasks underneath the summary tasks are called subtasks. By

    organizing the tasks into phases, it's easier to tell how the tasks are

    related to each other.

    Project calculates the duration of a summary task by the duration of its

    subtasks. So if you change information in your subtasks, the duration ofyour summary task will change.

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    Custom Gantt Chart View

    There are three distinct ways to format Gantt bars:

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    Format whole categories of Gantt bars in the Bar Styles dialog box,

    which you can open by clicking the Bar Styles command on theFormat menu.

    Format whole categories of Gantt bars using the Gantt Chart Wizard,

    which you can start by clicking the Gantt Chart Wizard command on

    the Format menu. This wizard contains a series of pages in which youselect formatting options for the most commonly used Gantt bars on

    the Gantt chart. Use the Gantt Chart Wizard to step you through some

    of the formatting actions that you can perform in the Bar Styles dialog

    box.

    Format individual Gantt bars directly. The formatting changes you

    make have no effect on other bars in the Gantt chart. You can double-

    click a Gantt bar on the Gantt chart to view its formatting options, or

    click Bar on the Format menu.

    Bar Styles

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    Format Bars

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    Entering a Milestone

    Milestones is a task with no duration.

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    Priority of a Task

    This field is there to help you enter your own ranking of the importance

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    of tasks in your project.

    Setting a high or low priority on your task doesnt influence timing ofthe task at all.

    You can set the Priority field to set a priority from 0 (lowest) to 1000

    (highest).

    Recurring tasks

    Some tasks occur again and again in a projects. They are considered

    i t k

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    as recurring tasks.

    Interrupting a Task

    If work on a task is interrupted, you can split the task to stop work and

    begin it again at a later date A task can be split multiple times if

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    begin it again at a later date. A task can be split multiple times if

    necessary.

    Entering a Deadline

    Deadlines are very helpful in project management, because they help

    Project indicate whether a task has been completed on schedule. It's

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    important to understand that setting a deadline doesn't affect how tasks are

    scheduled; instead, the deadline is more like an indicator of the schedulingstatus of the project.

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    Outline Codes for Tasks

    Project can assign outline numbers to the tasks in your schedule based

    on the tasks level in the outline; the outline numbers help you identify,

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    visually, each tasks hierarchical position in the outline.

    Project Assign Outline Numbers

    Options

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    Using Project Guide

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    Help

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