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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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