PMP_traning Materials_By Hosam a. Mohammed 2012

Advanced Project Management Practicing j g gPMP Preparation Course

B H A Eid M h d K d lBy: Hosam A. Eid Mohamed Kandeel,PMP, EVP, CRA, PMI-RMP, PMI-SP, ASCE-CMP, M.Sc.

I d i P j M P f i l Introduction to Project Manager Professional Certification

To Be A PMP

What Is PMI…?

Project Management Institute is an international governance, specialized in project management & taking overProject Management Institute is an international governance, specialized in project management & taking overthe development of the practice standards of Project management,PMI certificates are approved in more than 180 country around the world,For each region PMI established a chapter to be the official representative of PMI in such region

Membership through www.pmi.org Annual Membership fee (129$)

B fit f M b hiDiscount for Examination Fee Monthly E-Post for Free Discount for E-buying

Official Representative in Gulf Region Project Management Institute

Benefits of Membership Access to Download all the practice standard books forfree

Discount for Registration ofGlobal Events & seminars

j gArabian Gulf Chapter

Membership through www.pmi-agc.org Annual Membership fee (19$)

Benefits of MembershipFree Registration for ACG Technical Events & seminars

Free Registration or Discounts for PM conferences

Low Fee Trainings

Knowledge exchanging

PMI Certificates

AMP Agile manager professional, for IT developer

CAPM For Middle level Education & students requires less experience than any other certificates & less practical hours as well

PMPProject Manager Professional, the most popular certificate in the PMI, authorizes the credential holder to practicing the project management f ll i th Gl b l ti t d d f th PMI

PMPfallowing the Global practice standards of the PMI

PMI-RMPProject Risk Manager Professional, Authorizes the credential holder to practicing Project risk management fallowing the Global Risk Practice PMI RMP p g j g gstandards of the PMI

PMI SPProject Scheduler Professional, Authorizes the credential holder to

ti i P j t h d li f ll i th Gl b l h d li P ti PMI - SP practicing Project scheduling fallowing the Global scheduling Practice standards of the PMI

Program Manager Professional, Authorizes the credential holder to PgMP

g g ,practicing Program Management (Multi related projects) fallowing the Global practice standards of the PMI

PMP & what does it add to you…?

PMPProject Manager Professional, the most popular certificate in the PMI, authorizes the credential holder to practicing the project management fallowing the Global practice standards of the PMI

Nathanial Dermas PMP

Means That you have been Formally Evaluated for demonstrated Experience, Knowledge & Skills to Lead & Direct Project Teams & that you are Hereby bestowed the Knowledge & Skills to Lead & Direct Project Teams & that you are Hereby bestowed the

Global Credential (Project Management Professional)

Simply telling your Current or Future employer that you are formally approved & Got the basic Skills & Experience to be A project manager

What does PMP Standards Include…?

PMI Standards for practicing project management & being A certified project managementprofessional included defining a project management into 42 processes fallowingknowledge areas & processes groups & then defining the standard inputs & outputs ofknowledge areas & processes groups, & then defining the standard inputs & outputs ofevery single process & the tools & techniques to generate the outputs from the Inputs,noticing that you may not use all the 42 process according to each project case

Project Management Frame work & Organization StructureOrganization Structure

Project Management Frame work & Organization Structure

PortfolioProgram1

Project1Project2

Project3

Program

Product Scope:Product Scope:The Features an functions that characterize a product, service or results

Project Scope:Project Scope:The work need to be accomplished to deliver a product, service or results with specifiedfeatures & functions

Is a Temporary, Unique , budgeted & time framed endeavor(event) , that applies the concept of progressively elaboration(event) , that applies the concept of progressively elaborationto develop an end product

Project progressively elaboration concept

Established

Unique: will never be

repeated Planning the next part of the project according to

By

repeated

Budgeted: Have a fixed budget Organization Pl i th t t f

the project according to new available data

Budgeted & time framed: Have a fixed budget &

duration

Organization Planning the next part of the project according to

new available data duration

Planning Part of the project according to the available data

progressively elaboration conceptprogressively elaboration concept

Management Management Management Cos

t

Management reserve

Summary level

Management reserve

SLPP &

greserve

Summary level planning

packages & undistributed

b d

SLPP & undistributed

budget

Detailed budget

Detailed Detailed

Detailed Budget

Detailed Budget

Budget

Time

Project Management Frame work & Organization Structure(Cost Impact of Changes in project & Stakeholders influence)(Cost Impact of Changes in project & Stakeholders influence)

Project Management Frame work & Organization Structure(Cost Impact of Changes in project & Stakeholders influence)

ect

e pr

oje

High Impact – Low InterestKeep Satisfied

High Impact – High InterestManage closely

on

th

p Manage closely

Impa

ct

STH

. I

Low Impact – Low Interest Low Impact –High InterestKeep Informed

Monitor Keep Informed

STH. Interest in The Project Stakeholder Impact Matrix for the project

Project Management Frame work & Organization Structure(Organization Structure)

F ti l O i ti St t (G )Functional Organization Structure (Gov.)


Projectized Organization Structure


Week Matrix Organization Structure


Balanced Matrix Organization Structure


Strong Matrix Organization StructureStrong Matrix Organization Structure

Program Controls managerGeneral core PMO

G Accounting manager

G. Engineering manager

Planning TeamSupervisor + 3planners

Cost Control TeamSupervisor s + 6 Data entry

Document Control TeamSupervisor s + 3 Data entry

G. Accounting managerG. Procurement

manager

Project Controls manager

Planning Team1+1 +Senior & J. planner

Cost Control TeamSupervisor + 3Data entry

Document Control TeamSupervisor + 2 Data entry (2+1) Accountants Executive Secretary

Site Procurement Manager

Site Engineering Manager General construction Manager Site HR Manager QA/QC Manager

2+1 Site Civil work Shop Ti Sh t d t

1+1 Site Civil work Civil work construction

Site Civil work Procurement

Engineer

Site MEP work Procurement

drawings Engineer s

3+1 Site Civil work Shop drawings

Draftsmen

2+1 Site MEP work Shop

Time Sheets data entry operator s

Payroll responsible s

QA/QC Engineer s

1 Site Civil workMaterials inspector

1+1 Site MEP work Shop

Civil work construction manager

MEP construction

Site Engineers & Forman

Procurement Engineer

Site Finishing work

Procurement Engineer

drawings Engineer s

4+1 Site MEP work Shop drawings Draftsmen

2+1 Site Finishing work

Employees affairs responsible

drawings Engineer s

1 Site MEP work Materials inspector

1+1 Site Finishing work Shop drawings Engineer

manager

Finishing construction


g 2+1 Site Finishing work Shop drawings Engineer

s

4+1 Site Finishing work Shop drawings Draftsmen

p g gs

1 Site Finishing work Materials

inspector

manager

Infrastructure


(2+1) Coordinators

(2+1) Coordinators Coordinator

construction manager


General construction Manager

Store Manager

Transportation Manager

Concrete plant Manager (if Any)

Civil work construction

MEP construction Finishing

construction Infrastructure construction construction

manager manager



Engineering

Site Engineers (one for 2 Buildings)

Coordinators

Procurement Coordinators



Site Engineers 2+2Engineers

Site Forman(one for 1 Buildings)




Skilled & unskilled labors Notes:The default number is written first & the + is additional Number due to the size of the site The proposed organization is applicable for all the 23 sites The separate construction organization is the detailed for the global one in slide 1 construction part


lApplication of Organization Structures

Project Management Standard Process & Knowledge areas (The Matrix, the process & The Curves)( p )

1. Identify Stakeholders

D l P j Ch Initiation1. Develop Project Charter Initiation

2 Develop Project Management plan

1. Collect Requirement

2. Define Scope 1. Define Activities

1. Plan Quality 1. Develop HR Plan

2. Develop Project Management plan

2. Define Scope

3. Create WBS

1. Define Activities

2. Sequence Activities

3. Estimate Activity Resources

4. Estimate Activities Durations

2. Plan Communications

5. Develop Schedule

1. Estimate Cost 2. Determine Budget1. Plan Risk Management

2. Identify Risks

3. Perform Qualitative Risk Analysis

4. Perform Quantitative Risk Analysis

5 Pl Ri k R

1. Plan Procurement

Planning Planning 5. Plan Risk Responses

2. Perform Quality Assurance

3. Direct & manage Project Execution

2. Perform Quality Assurance

2. Acquire Project Team

3 Develop Project Team

4 M S k h ld E i

3. Develop Project Team

4. Manage Project Team

4. Manage Stakeholders Expectations

3. Distribute Information

2. Conduct Procurement

Executing Executing 4. Verify Scope

5. Control Scope 3. Perform Quality Control 5. Perform Integrated Change

C l5. Control Scope

6. Control Schedule

3. Control Cost

6. Monitor & Control Risks

4. Monitor & Control Project Work

Control

3. Administer Procurement

Monitoring & controlling 5. Report Performance

C

InteM

anProject Management Standard Process & Knowledge areas

(The Matrix)

scope M

anagement

Time

Managem

ent

Cost

Managem

ent

Quality

Managem

ent

HR

Managem

ent

Com

munication

Managem

ent

Risk

Managem

ent

Procurement

Managem

ent

egration nagem

ent

Initiation

t

1. Define Activities 1. Estimate Cost 1. Plan Quality


1. Develop 1. Plan Risk 1. Plan

1. Develop Project Charter

2. Develop

Planning


2. Define Scope

3. Create WBS


3. Estimate Activity Resources4. Estimate Activities Durations5. Develop S h d l

2. Determine Budget

2. P

lan

Com

mun

icat

ions

HR Plan Management2. Identify

Risks3. Perform Qualitative

Risk Analysis4. Perform

Quantitative Ri k

Procurement 2. Develop

Project Management

plan

Schedule

2. Perform Quality

Assurance


2. Acquire Project Team3. Develop

Risk Analysis

5. Plan Risk Responses


3. Direct & manage Project

Executing

4. Verify Scope

C l

6. Control Schedule 3. Control Cost

Assurance

3. Perform

Expectations

5. Report Performance

pProject Team4. Manage

Project Team

6. Monitor & Control Risks

jExecution

4. Monitor & Control


3. Administer

Monitoring &

controlling

5. Control Scope

Quality ControlPerformance Control Risks

Project Work

5. Perform Integrated Change Control

Procurement

Closing

4. Close Procurement

6. Close Project or

phase

process

process

process

process

process

Project Management Standard Process & Knowledge areas (The process)

I iti tiInitiation Planning

Select project managerDetermine company culture and existing systemCollect processes, procedures and historical informationDi id l j t i t h

Det. How you will do planning part of all management planFinalize Requirement

Divide large project into phasesUnderstand the business caseUncover initial requirements and risksCreate measurable objectivesDevelop project charter

qCreate project scope statement Determine what to purchase Determine teamCreate WBS and WBS dictionaryCreate activity list

Executing

Identify stake holderDevelop stake holder management strategy

Create activity listCreate network diagramEstimate resource requirement Estimate timeEstimate cost Determine critical pathDevelop scheduleDevelop budgetDet. Quality standard, process and metricsCreate Process improvement plan

Execute the work according to PM planProduce product scopeRequest changeImplement only approved changeEnsure common understandingU k th i ti t

p pDet. All roles and responsibility Plan communicationsRisk identification Risk identification and analysisRisk response planning

Use work authorization systemContinuously improve Fallow processPerform QAPerform Quality AuditsAcquire final team Risk response planning

Go-back iteration Prepare procurement Finalize how to execute and controlDefine find PM planned performance measurement baseline F l l f l

Acquire final team Manage people Evaluate team and project performHold team building activities Give recognition and rewards Use issue log Formal approval for plan

Hold kick off meeting

Use issue log Facilitate conflict resolutionSend and receive informationHold meetingSelect sellers

Project Management Standard Process & Knowledge areas (The process)

Take action to control the projectMeasure performance Vs performance baseline

Confirm work is done to requirement

Monitoring & controlling Closing

Measure performance Vs performance baselineMeasure performance Vs other metrics determine by PMDetermine variancesInfluence factors cause changesRequest changes

Complete procurementGain formal acceptance for the productComplete final performance reportingIndex and archive recordsUpdate lessons learned

Perform x change controlApprove or reject change Inform stakeholders to approved changesManage configuration Create the forecast

Update lessons learnedHand off complete productRelease resource

Gain acceptance of interim deliverables from customerPerform QCPerform risk-AuditManage reserves Administer procurementAdminister procurement

Process groups Interaction

Project Management Standard Process & Knowledge areas (The Curves)

Process groups Interaction

The Processes Concept

Planning

Example Process group – PlanningKnowledge area – Procurement

1. Plan Procurement Tools & Techniques

InputsOutputs

Risk Related contract Decision Procurement management Plan

Activity Cost Estimates

Make or Buy Analysis

Contract Types

Expert Judgment Cost ManagementCost Management

Risk RegisterRisk ManagementRisk Management

Risk ManagementRisk Management

Procurement Statement of work

Make or Buy Decision

Activity Resource Requirements

Scope BaselineScope ManagementScope Management

Time ManagementTime Management

Requirement DocumentationScope ManagementScope Management


Procurement Document

Source Selection Criteria

Ch t

Project Schedule

EEF & OPA


qp gp g

Cost Performance Baseline Cost ManagementCost Management

Change request

EEF & OPA

Teaming Agreement

Project scope Management j p g

Analyze & report the scope performance & scope deviation

D th t bl

Verify each part of the scope upon finishing

performance & scope deviation

t

Define the scope in well described paragraph (BOQ & specs)

Decompose the scope to manageable element hieratically arranged (WBS)

gem

en

Mai

What is the requirements of the stakeholders / customer

Man

ag

in outputs

Project Time Management Sc

ope

Requirement Management Plan

Requirement Documentation

Management

roje

ct

Project Scope Statement

WBS

WBS Dictionary

Scope Baseline

Pr

Accept Deliverables

Work Performance Measurements

Change Requests

Project scope Management

Planning


Tools & Techniques

Inputs

Outputs

Project Charter

Stakeholder Register Initiation

Requirement Management Plan


Requirement Traceability matrix

Interviews

Focus Groups

Questioners

Observations

Prototypes Requirement Traceability matrix

Groups Activity Technique

Groups Decision MakingProject Charter

The Birth Authorization of a project , Signed by the Sponsor & provides a High level project requirements & high level project description, the Projecth h j h hi h l l l i h j h hi h l l d li f i l i h dcharter names the Project manager & can name the high level Roles in the project & the high level vendors & suppliers for special items, the document

includes as well a top level estimating budget for the project

Stakeholder Register

An Important Document Listing all the stockholders names (definitions for organization) StakeholderPerson or Organization that could

2. Define Scope

Planning Inputs

An Important Document Listing all the stockholders names (definitions for organization) Stakeholderimpact or impacted by the project

p

Project Charter Project Scope StatementExpert Judgment

Tools & Techniques

Outputs

Requirement Documentation Project Documents UpdateProduct Analysis

OPAAlternative Definition

Feasibility workshops


Wh d h Wh d h Why do the Why do the organization need the

project to be

Summary Description Summary Description of the Project,

outlines moduleestablished ?established ?

outlines module

What ever the organization What ever the organization What ever in the

surrounding environment What ever in the

surrounding environment use out of it’s own library

to establish the project (template, processes, lessons learned Etc)

use out of it’s own library to establish the project (template, processes, lessons learned Etc)

surrounding environment of the project & affect the

project (low, organizations, resource

surrounding environment of the project & affect the

project (low, organizations, resource

lessons learned,…Etc)lessons learned,…Etc)characteristic,…etc) characteristic,…etc)


3. Create WBS

Planning Inputs

3. Create WBS



WBS

WBS Dictionary

Decomposition

Tools & Techniques

Outputs

Requirement Documentation WBS Dictionary

Scope Baseline OPA

Project Document Update


WBS

WBS Di i

Product Scope definition

Project Deliverables

P j C i WBS Dictionary Project Constrains

Acceptance Criteria

Project Assumption

WBS is a hieratical Arrangement of the project components & decomposition of the project scope into manageable parts that facilitate id if i h i i i i h i i i hidentifying the activities & assign the cost, time, Quantities & man-hours to such activities & aggregating the totals to the WBS elements Up to the top level of the WBS so that we can determine the final cost & time for p

the project & accordingly we track & report the performance of the project

E l f WBS


Example of a WBS PROJECTPROJECT

0 Level (0 – or Control Account level – Div 03 )

WBS 10.1

WBS 20.2

WBS 30.3

WBS 40.4

WBS 50.5

Level (1)

WBS 10.2.1

WBS 20.2.2

WBS 30.2.3

Level (2)

WBS 10.2.3.1

WBS 20.2.3.2

WBS 30.2.3.3

WBS 40.2.3.4

WBS 40.2.3.5

Level (3)

WBS 10 2 3 4 1

WBS 20 2 3 4 2

WBS 30 2 3 4 3

End Level (work Package level) after which the Listing of the activities is being developed 0.2.3.4.1 0.2.3.4.2 0.2.3.4.3Listing of the activities is being developed

The Philosophy of defining & detailing the definition of scope is to try to tend


the project to a manageable form, as we cant use the requirement nor the scopedefinition to Manage the project or to achieve the goals of the project

After keep saying & repeating “Managing, Managing & Managing” could anyone here tell me what is the here tell me what is the

meaning of managing……?


Scope Scope

QualityQuality


4. Verify Scope

Monitoring & controlling Inputs

Outputs

Project Management Plan


Change Requests

Accept Deliverables

Inspection

Tools & Techniques

Integration ManagementIntegration Management

Requirement Documentation Accept Deliverables

Project Document Update Requirement Traceability matrix

Validate Deliverables

5 C t l S Inputs

Monitoring & controlling

5. Control Scope

Project Management Plan Work Performance Measurements Measurements

Tools & Techniques

Outputs

Integration ManagementIntegration Management Project Management Plan



OPA Update

Change Requests Requirement Traceability matrix

Variance AnalysisIntegration ManagementIntegration Management

PM Plan UpdateWork Performance Information

OPA Project Document Update


4 V if Being Done upon the finishing of a

Resulted in release of 4. Verify

Scope

the finishing of a part , phase, stage or sub-

release of payment &

official Scope stage or sub-product

official approval

There is no

5. Control Being Done Periodically to

need of releasing

payment it is Scope

Periodically to avoid scope creep

payment, it is just

monitoring the gperformance

Project Time Management j g

Analyze & report the Time performance & scope deviation

C bi d ll h i i

Define (calculate) the duration for each task & run to calculate

Combined all the previous into the project schedule

Define the (labor, material, equipments) for each task

the total project duration

ggem

ent

Mai

Listing the activities of each work package, to generate the project tasks

Create the network diagram to determine the Critical path Project Cost

Management

g

Man

ag

in outputs

p g , g p j

ct T

ime

ct T

ime

Activity List

Project Schedule Network DiagramProj

ecPr

ojec

Activity Resource requirements

Resource breakdown structure

Activities Durations Estimates

Project Schedule

Schedule Baseline


PM Plane Update

Project Time Management

Planning Inputs

1. Define Activities

Decomposition

Tools & Techniques

Outputs

Scope Baseline

EEF

Activity List

Activity Attribute

OPA Milestones list

Rolling Wave Planning

Templates Expert Judgment


Planning Inputs

Outputs

Activity List

Activity Attribute

Project Schedule Network Diagram


Precedence diagram

Tools & Techniques

Dependency Determining y j p

OPA

Milestones list


Apply Leads & Lags

Schedule Network template Scope ManagementScope Management

OPA

Activity (A) – Duration = XX S F

Summary Level – Rolling Up for Activities Duration & Logic

Activity (B) - Duration = YY

Activity (C) - Duration = ZZ


Example of CPM- Precedence diagram









Planning


3. Estimate Activity Resources

g

Tools & Techniques

Inputs

Outputs

Activity List

Activity Attribute Activity Resource requirements

Resource breakdown structure

Alternative Analysis

Published Estimating Data

PM software Expert JudgmentResource Calendar

EEF & OPA Project Document Update Bottom Up Estimating

4. Estimate Activities Durations

Planning Inputs

Outputs

Activity List

Activity Attribute



Expert Judgment

Tools & Techniques

Parametric Analysis


Analogous Estimate

Reserve Analysis Resource Calendar


Scope ManagementScope Management Project Scope Statement

EEF & OPA

Scope ManagementScope Management

Planning Inputs


5. Develop Schedule

Activity List Schedule Network Analysis

Tools & Techniques

Inputs

Outputs

Activity Attribute Project Schedule

Schedule Baseline

Schedule Network Analysis


Critical Path Method

SC. software Resource levelingProject Schedule Network Diagram

OPA & EEF

Schedule Data Activity Resource requirements

Project Document Update What – If Scenarios



Applying Leads & Lags

Schedule CompressionScope ManagementScope Management

6. Control Schedule

Monitoring & controlling Inputs

6. Control Schedule

Project Management Plan Work Performance Measurements Performance Variances

Tools & Techniques

Outputs


Project Schedule OPA Updates Variance Analysis

Work Performance Information

OPA

Change Request

PM Plan Update

SC. software Resource leveling

What – If Scenarios OPA PM Plan Update

Project Document Update Applying Leads & Lags

Schedule Compression

Time Management Processes Develop Activity list & ID dictionary

Sequencing activities )

Review

edInspected

Approved

Construction

Define activities Resources

ring

Syst

em

gic

d &

d &

d By n team

Calculate Activities Durations

& ID

stru

ctu

rdin

g to

Log

Act

iviti

es

Develop Time Schedule

Inspected from

(BO

Q

orm

ed A

cco

ccor

ding

To

A

ted

Usi

ng

es (B

OQ

) &

Ex

perie

nces

pBy Resource Assignment

teamInpu

ts

Perf

o

Inpu

t ac

Cal

cula

Qua

ntiti

ePr

evio

us

(Chart 2)

Project Cost Management j g

Approve the total budget by the project manager &

Monitor & control the cost performance against the baseline & forecast the future at completion budget

according to the project performance

Rolling Up To the Work packages & rolling Up the work k h WBS l h l j

pp g y p j gdevelop the cash –out flow & cost baseline, after

adjusting it according to the available funds

gem

ent

Mai

Use the activity list & resource requirements to estimate the total cost of each task

packages to the WBS elements up to the total project cost

Man

ag

in outputs t Cos

t M

Activity Cost Estimate

Bases of Estimate

Proj

ect

Cost Performance Baseline

Project Funding Requirements

Budget Forecast

Change Request

P


Planning

Project Cost Management

1. Estimate Cost

g

Tools & Techniques

Inputs

Outputs

Scope Baseline

Project Schedule Activity Cost Estimate

Bases of Estimate

Expert Judgment

Analogous Estimate

U. Bid Analysis 3Point EstimateHR PlanHR ManagementHR Management


Scope ManagementScope Management PM software

EEF & OPA

Project Document Update Bottom Up Estimating Risk RegisterRisk ManagementRisk Management

Cost Of Quality

Reserve Analysis

2 D t i B d t

Planning Inputs

Reserve Analysis

2. Determine Budget

Activity Cost Estimate

Bases of Estimate Cost Performance Baseline Expert Judgment

Tools & Techniques

Outputs

Bases of Estimate Cost Performance Baseline


Cost Aggregation

Funding Limits

Reserve Analysis

Resource Calendar

Scope Baseline Scope ManagementScope Management


Project Schedule

Contracts


OPA

Procurement ManagementProcurement ManagementHistorical relationships

Project Cost Management

Direct & Indirect costs Direct & Indirect costs

3. Control CostInputs

Project Cost Management Monitoring & controlling

3. Control Cost


Project Funding Requirements Work Performance Measurements

Tools & Techniques

Outputs

Integration ManagementIntegration ManagementEarned Value Management


Budget ForecastPM Software

OPA


To-complete Performance IndexWork Performance Information

Forecasting

Change Request Performance review

Project Document Update Variance analysis

OPA Updates

PM Plan Update Earned Value Management

Earned Value Management Provides organizations with the methodology needed to integrate the management of project Scope, Schedule & cost,EVM can play a critical role in answering management questions that are critical to the success of every project

Are we Ahead or behind schedule..?

How efficiency are we using our time ..?If the application of

When is the project likely to be completed ..?

Are we currently under or over our budget..?

How efficient are we using our resources..?

What is the remaining work likely to cost..?

If the application of EVM to a project reveals that the project is behind schedule or over budget, the project manager can

use the EVM

Where the problems are occurring..?

Whether the problems are critical or not..?

What it will take to get the project back on track..?What is the remaining work likely to cost..?

What is the entire project likely to cost..?

How much the project will be under or overbudget at the end ..?

methodology to help identify

BAC EVTCPI To Complete Performance Indicator (Index)

BAC EVThe Work Remaining

The fund remaining BACBAC ACAC

Earned Value Management: Formulas & calculations

Cost of Item (budgeted) 10 10 10 10 10 10 10 10

TermsTermsPVPVEVEV

BCWSBCWS

BCWPBCWP

Budgeted Cost of Work Scheduled Budgeted Cost of Work Scheduled

Budgeted Cost of Work Performed Budgeted Cost of Work Performed

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Item To be Finished 1 2 3 4 5 6 7 8

3030

2020EVEVACAC

BCWPBCWP

ACWP

Budgeted Cost of Work Performed Budgeted Cost of Work Performed

Actual Cost of Work Performed Planed Time Line (Assigned Baseline)

Actual Time Line Point of Study & analysis

2020

40

BACBAC Total Budget for the Project as Baseline

Line y y

As Tracking Tool As Forecasting Tool

SV Schedule Variance EV PV What will be the Value of the project at the End.

CV Cost Variance EV AC

Value Case (1) What has happened has happened & we can bring the project on track again

EAC Estimate AT Completion

AC BAC EV

Measured from the real work Done

0

Financial Measurement

We Are on Time On

Case (2) The monitored performance is the best the contractor (vendor/Supplier) can do


AC BAC EV

> 0> 0

0We Are on Time On Budget

We Are Ahead of Schedule Under Budget

SPI

Schedule Performance

Indicator

EVEV

PVPV > 1 ok

< 1

CPI

Case (3) The monitored performance is the best the contractor (vendor/Supplier) can do & there will be a problem

regarding the time As well

< 0< 0

We Are Behind of Schedule Over Budget

CPI

Cost Performance

Indicator

EVEV

ACAC

Not okg gega d g e e s e


AC BAC EV

CPI

CPI

SPI

Project Quality Management j Q y g

Quality A set of inherent characteristics implemented to fulfill requirements

Apply the experiments & the checks on the End products of the project to identify the problems & the change requests nt

Plan who will be the Quality team, the quality

Apply the experiments & the checks on the processes of the project to identify the problems

agem

en

Main

requirements , Experiments, methodologies & processes

y M

ana

Standard Deviation analysis: outputs & theQ

ualit

y -Raise the Quality standard to achieve the STD- For Calculation Analysis for past measurements to identify a value to use

1. W. E. Deming Theory

2. A. R. CrospyTheory

Plan – Do – Check – Act ( Continues Improvement)

Zero defects – Cost of Quality is the cost on nonconformance

Quality Management plan

eories

roje

ct Q 3. Juran Theory

4. IshakawaTheory

Fitness for Use

Cause & effect Diagram

C Of C f Quality Management plan

Quality Matrices


Pr Cost Of Conformance

Money spent during the Project to avoid failure

Change Request

Validated Change

Validated Deliverable

Cost Of nonconformance

Money spent during & After the Project Because of failure

Project Quality Management

Quality Is planned IN Not Inspected IN

1. Plan Quality

Planning Inputs

Outputs

Scope Baseline

Cost Performance baseline Quality Management plan

Quality Matrices

Cost – Benefit An.

Tools & Techniques

Design of experiments

Schedule Baseline Time ManagementTime Management

Cost ManagementCost Management

Scope ManagementScope ManagementFlowcharting

EEF OPA


Control Charts Bench marking Schedule Baseline

Statistical samplingStakeholder Register


Communication ManagementCommunication Management

Cost Of QualityRisk RegisterRisk ManagementRisk Management

Processes Improvement plan

EEF & OPA Proprietary quality managementQuality Matrices

operational definition that describes, in very Specific terms, a project or product attribute and how the Quality control process will measure it

EX on-time performance budget control Defect frequency Test Coverage failure rate

2. Perform Quality Assurance Inputs

Outputs

Executing

EX. on-time performance budget control Defect frequency Test Coverage failure rate

Project Management plan

Quality Matrices OPA Updates Plan Quality & perform QC Tools

& techniques

Tools & Techniques

Outputs


PM Plan Update

Quality Audit

Processes Analysis


Quality Control Measurements

Change Request



Quality Important Theories

1. W. E. Deming Theory

2. A. R. Crospy Theory

3 J Th

Plan – Do – Check – Act ( Continues Improvement)

Zero defects – Cost of Quality is the cost on nonconformance

Fi f U 3. Juran Theory

4. Ishakawa Theory

Fitness for Use


Quality Quality

A set of inherent characteristics implemented to fulfill requirements

Grade

C i d d i h i h f i l b diff h i l h i i Category assigned to products or service having the same functional use but different technical characteristics

Cost Of Quality

Refer to total cost of all effort related to Quality through out the Product lifecycle

Cost Of Conformance Cost Of nonconformance

Money spent during the Project to avoid failure Money spent during & After the Project Because of failure

p )Prevention (Build Quality – error out of the processes )

Appraisal (asses the Quality)

Internal Failure Cost

External Failure Cost

failure

Design of Experiments (DOE)

Used To determine the type of tests & number as well & their impact on cost of Quality



3. Perform Quality Control

Tools & Techniques

Inputs

Outputs

g g


Quality Matrices Validated Change Control Charts


Histograms Parito Chart Quality Check lists

Integration ManagementIntegration ManagementFlowcharting

Validated Deliverable


Scatter DiagramWork Performance Measurement

Statistical sampling

Inspection

Approved Change request

Deliverables

OPA Updates

Change Request

OPA

InspectionPM Plan Update

Approved Chang e Request Review

Control Charts - QA tool

Graphic displays of the results, over time, of a process; used to assess whether the process is “in control”

Average of the process

data

Rule of Seven - Control Charts Rule of Seven - Control Charts

Run of seven points toward upper or lower control limit may indicate that process is out of control



Hi t QA/QC t l Histograms – QA/QC tool

A tool helps identify the cause of problems in a process by the shape and width of the distribution



St ti ti l li QA/QC t l Statistical sampling - QA/QC tool

Important Formulas Mean (μ) – Average (X) = (Sum of Samples reading) / (Number of Samples)

Variance = Sum of squared differences between mean and each value, (x- μ)2, divided by number of samples less one (n-1)

Standard deviation = Square root of the variance

Statistical sampling - Example

Calculation for Productivities from Actual Readings

Reading

Foundation Dailey % finishing (µ‐x)2

0.601% 0.000273%

Number Os samples 77

Variance Sum (x- μ)^2

0.00136726%0.806% 0.000016%

0.644% 0.000149%

1.458% 0.004792%

Variance (N-1)

0.00 367 6%

Standard deviation 0.3697656%0.972% 0.000425%

0.294% 0.002227%

0.587% 0.000322%

%

0.766% 0.008204%AVA Sum



St ti ti l li QA/QC t l Statistical sampling - QA/QC tool

Standard Deviation analysis:-Raise the Quality standard to achieve the STD- For Calculation Analysis for past measurements to identify a value to use

3. Perform Quality Control Inspection


Attribute Inspection

Yes Or No Inspection

Variable Inspection

Actual measurement for Samples of the product of the product

Keeping Errors out of the hands of the customer

Precision

Consistency that the Value of repeated measurements are clustered & have a little scatter Consistency that the Value of repeated measurements are clustered & have a little scatter

Accuracy

Correctness that the measured value is very close to the true value

P i Ch QA/QC l Parito Chart – QA/QC tool

Parito low - A relatively small number of causes will typically produce a large majority of the problems or defects (80/20 rule)

Helps focus attention on the most critical issues

Prioritize the potential “causes” of the problem

Separate the critical few from the uncritical many

Project Communication Management j g

Report the analysis of the performance in the project to the key stakeholders to facilitate corrective actions

Distributing the information what ever the classification f hi i f i i ( I f i

Give every single stakeholder his required information (reports) based on his position in the matrix

emen

t

Plan who will be responsible of communicating the information between the STH & the time & the cost of comm nication each

of this information is (reports, Information, memos,…etc) during the life cycle of the project

Man

age

Identify those whom will be communicated through the project life cycle & the position of each one of the m in the matrix

cost of communication each

atio

n M

C i ti (N) N b f P i l d i th Main outputs m

unic

a

Forecasting Methods

Communication Channels in a project

N (N – 1)

2

(N) : Number of Persons involved in the Communication paths of the Project

Interactive Communication

Meetings, Calls & Video conferences


ct C

omm

Time Series method : Use historical information for future forecasting (EVM)

Causal / Econometric methods : Use Assumptions (What if – Scenarios)

Judgment Method : Use Expert Judgment as Delphi Techniqueon

Typ

es

ation

Push Communication

Pull Communic

conferences

Mails, memos, letters & faxes

Downloads

Dir

ectio

n of

co

mm

unic

atio

n

Stakeholder Management Strategy

Communication Management Plan Pr

ojec

q

Reporting system

Status Reports : Telling where we are (Current Status of the project)

Completion Vs. Actual : Verifying the baseline of the

Com

mun

icat

i ation

Informal Verbal

Formal Verbal

Calls & Video conferences

f atio

n

Direct Site Instruction

OPA Update

Change Request

Performance Reports

p y gproject Vs. The Actual Status

Variance : Analyze the Actual variables of the project to the Targeted

Trends : Comparing the performance to a fixed periods of the project (updating Cycle)

Formal Written

Informal written Ty

pe o

Com

mun

ic

Instruction

Memos, M. O. Meetings

Contracts, Purchase orders

Initiation

Project Communication Management


Tools & Techniques

Inputs

Outputs

Project Charter

Procurement Documents Stakeholder Register

Stakeholder Management StrategyEEF & OPA

Stakeholder Analysis

Expert Judgment Procurement ManagementProcurement Management


2. Plan CommunicationsInputs

Outputs

Planning


Stakeholder Management Strategy Communication Management Plan Communication requirement

Analysis

Tools & Techniques

C i ti t h l P j t D t U d t EEF & OPA Communication technology

Communication models

Project Document Update EEF & OPA

Communication Methods

Stakeholder Analysis

Techniques of systematically gathering & analyzing qualitative & quantitative information to determine whose interests should betaken into consideration through the project

Communication requirements Analysis Communication requirements Analysis

Analysis for the communication requirements to determine the type & nature of information needed with analysis to the value of such information to the stakeholders


STH. Impact on the project

High Impact – Low InterestHigh Impact – Low InterestKeep Satisfied

High Impact – High InterestManage closely

Low Impact – Low Interest

Monitor Low Impact –High Interest

Keep Informed Monitor

STH. Interest in The Project Stakeholder Impact Matrix for the project


N(N – 1) (N) : Number of Persons involved in the Communication paths

Communication Channels in a project

2

of the Project

Communication Types Interactive Communication

Push Communication

Meetings, Calls & Video conferences

Mails, memos, letters & faxes

Dire

ctio

n of

co

mm

unic

atio

n

Pull Communication Downloads

Informal Verbal

Formal Verbal

Calls & Video conferences

cof

ca

tion

Direct Site Instruction Formal Verbal

Formal Written

Informal written Type

oC

omm

unic Direct Site Instruction

Memos, M. O. Meetings

Contracts, Purchase orders

Communication models

Communicate Information

Communication Media Communicate Information

Communication Media

Encode DecodeNoise Defining information into a transitional form for seeding

Translating the received information into a readable form

Noise

Executing



g

Tools & Techniques

Inputs

Outputs


Performance Reports OPA Update

OPA


Information Distribution tools


Effective information Distribution techniques

Sender – receiver ModelSender – receiver Model

Choice of MediaChoice of Media

Writing Style Writing Style

Meeting Management Techniques

Stakeholders Notifications

Project report

Project Presentation

P j R d

Executing

Meeting Management Techniques

Presentation Techniques Presentation Techniques

Facilitation Techniques Facilitation Techniques

Project Records

Feed back from stake holders

Lessons learned documentation


Stakeholder Register Tools & Techniques

Inputs

Outputs

g


Stakeholder Management Strategy OPA Update Interpersonal Skills

Management Skills Project Document Update


Project Management plan Integration ManagementIntegration Management

OPA

Issue Log

Change Log

Change Request

PM Plan Update



5. Report Performance

Tools & Techniques

Inputs

Outputs

g g


OPA Update Communication Methods

Reporting Systems



Budget Forecasts Performance Reports

Variance analysis

OPA

Work Performance Measurement Change Request

Forecasting Methods

Forecasting Methods

Time Series method : Use historical information for future forecasting (EVM)

Causal / Econometric methods : Use Assumptions (What if – Scenarios)

Judgment Method : Use Expert Judgment as Delphi Technique

Reporting system

Status Reports : Telling where we are (Current Status of the project)

Completion Vs. Actual : Verifying the baseline of the project Vs. The Actual Status

Variance : Analyze the Actual variables of the project to the Targeted Variance : Analyze the Actual variables of the project to the Targeted

Trends : Comparing the performance to a fixed periods of the project (updating Cycle)

Project Human Resources Management j g

Applying the managerial skill & conflict resolution techniques to resolve the confects & taking decisions based on team evaluations

Developing the project team(s) by enhancing the skills, the capabilities of the staff, harmonies the performance, enhancing the work environment & Conduct team assessment

Developing the RAM for the project with the resources & roles positions Responsibilities &

Start hiring the project staff, forming the teams & assigning the jobs

emen

t

Main ou

Plan the role you will need in the project, the timing of hiring , the roles description & HR team who will be doing the hiring processes

resources & roles positions, Responsibilities & authority

Man

age

RAM : Responsibility Assignment Matrix


utputs

ct H

R M

HR Plan

Roles & Responsibility

Role

Authority

Responsibility

Organization Chart & position description

Org. Matrix –T O i d

HR Plan

Project Staff Assignment Proj

ec

Project Organization

Chart

Competency

Staff Acquisition

Safety

yp

O g. Hierarchal

type

a Based Resp.

Chart

Text Oriented format

Techniques for Conflict ResolutionResource Calendar

Team Performance Assessment

EEF Update

Change Request

Staffing Management

plan

Staff Release Plan

Training needs

Recognition & rewardsWithdrawing & Avoiding

Smothering (Accommodating)

Compromising

Forcing Collaborating Confronting

(Problem Solving )

Resource Calendar

Training needs

Compliance

Team Building Activities

Forming Storming Norming Performing Adjourning

Planning Inputs

Project Human Resources Management

1. Develop HR Plan

Activity Resource requirements Tools & Techniques

Outputs

EEF & OPA

HR PlanOrganization Chart & position description

Networking

Organization theory

Org. Hierarchal type

Matrix – Based Resp. Chart




HR Plan

Roles & Responsibility

Role

Authority

Responsibility

Project Organization Chart

Competency

Staff Acquisition

Safety

Staffing Management plan Staff Release Plan

Recognition & rewards

Safety

Resource Calendar

Training needs

Compliance

Executing


2. Acquire Project Team

Project Management plan Tools & Techniques

Inputs

Outputs


Project Staff Assignment Interpersonal Skills

Management Skills Resource Calendar

EEF & OPACommunication Methods

PM Plan Update PM Plan Update

3 Develop Project TeamInputs

Executing

3. Develop Project Team



Tools & Techniques

Outputs

Project Staff Assignment Training


Interpersonal Skills

Ground Rules EEF Update

j g

Resource Calendar

Co- Location

Recognition & rewards

Team Building Activities

Forming Storming Norming Performing Adjourning


Human Resources Important Theories

1. Maslow’s Hierarchy of Needs

Esteem

Self - ActualizationSelf – Fulfillment, growth, Learning Perquisites

Some Employees receive specialrewards for their efforts

Social

EsteemAccomplishment, Respect, Attention, Appreciation

Fringe BenefitsAll Employees receive NormalBenefits as Standard Company

SafetySecurity, Stability, Freedom from harm

Love, Affection, Approval, Friends, association Benefits as Standard Companyformal benefits

Physiological Needs Need for Air, Water, Food, Housing, clothing

2. Expectancy Theory

Employees who believe their effort will lead to effective performance & who expect to be rewarded for theirEmployees who believe their effort will lead to effective performance & who expect to be rewarded for theiraccomplishments remain productive as rewards meet their expectations


Human Resources Important Theories

3 M i i Th “ h d l ll ?” 3. Motivation Theory “what do people really want..?”

The best way to gain Motivation is to give rewards

Then we must know what people wantp p

Depend on the interpersonal skills & people analysis

g y X Y4. McGregor’s Theory of X & YTheory X

Managers who accept this theorybelieve that people need to be

h d i l

Theory Y

Managers who accept this theorybelieve that people are willing to

k i h i i d

Managers who accept this theorybelieve that people are willing to

k i h i i dwatched every minute, people areincapable, avoid responsibility &avoid work whenever possible

yy work without supervision, and wantto achieve. People can direct theirown effort

work without supervision, and wantto achieve. People can direct theirown effort

5. David McClelland’s theory of needs (Acquired Needs Theory – ANT)y ( q y )

Need For Achievement

Need For Affiliation

Need For Power

Challenging & reachable projects, Recognition

Cooperating with others, seeking approval rather than recognition

Cooperating with others seeking approval rather than recognitionNeed For Power Cooperating with others, seeking approval rather than recognition

6. Herzberg Theory (Hygiene factors & Motivation Agents)

Hygiene factors Motivation AgentsPersonal Lif

yg g

Working Conditions Salary

Life

Relationships at work

Security Status Responsibility

Self ActualizationProfessional Growth

Recognition


InputsExecuting

4. Manage Project Team


Inputs

Outputs

Observation & conversationIntegration ManagementIntegration Management

PM Plan Update Project Performance appraisal

Issue LogOPA Update

Project Staff Assignment Observation & conversation


Performance Reports Change Request Interpersonal Skills

Conflict ManagementOPA

Techniques for Conflict ResolutionTechniques for Conflict Resolution

Withdrawing & Smothering Confronting Withdrawing & Avoiding

Smothering (Accommodating)

Compromising Forcing Collaborating Confronting

(Problem Solving )

Project Risk Management j g

Possible – Uncertain – Event that may positively or negatively impact the project

Risks

Performing the risk audit & assessment to evaluate the responses

Chose the highest risk tanked & apply a response plan to such risks

assessment to evaluate the responses applicability & identify new risks

Performing the 2 major types of analysis to calculate the i k & k & k th i k & d l ith th

Link the risks before mitigation to the time schedule & analyze the required reserve

men

t m

ent

Main

As risk are coming from every single knowledge area, we use all the project components to identify a very big list of the i iti l i k ith i t & i ki

risks score & rank & re-rank the risks & deal with the high ranked risk only for the further analysis & action

Man

age

Man

age

n outputs

To have the ability & Culture Perform Risk Management

initial risks with a primary components & primary ranking

ct R

isk M

ct R

isk M

Qualitative amount express the Risk category

Risk Management Plan

Proj

ecPr

ojec Probability Impact Number

Related to the Risk

Expected Time of Risk to occurs Frequency of Risk event

Ris

k Sc

ore

category

location of Risk in the

Probability & Impact Matrix


Risk Register

Risk Register Update & Risk ranking

Quantitative Amount (Money or Time)

Used in Quantitative SimulationThe Likelihood of having the event on reality, based

Probability

Risk Register Update & Risk ranking

Risk Related - Residual Risks

Change Request

Used to calculate reserves

g y,on Experience or Lessons learned

The effect (time or money) as number for Quantitative Analysis

Impact

InputsPlanning

Project Risk Management

1. Plan Risk Management

Project Scope StatementTools & Techniques

Inputs

Outputs

Planning Meeting Scope ManagementScope Management

Risk Management PlanMeeting Analysis

Planning Meeting Cost management planCost ManagementCost Management

Schedule management planTime ManagementTime Management

Communication management planCommunication Management

EEF & OPA

2 Id tif Ri kInputs

Planning

2. Identify Risks


Ri k R i t

Tools & Techniques

Outputs

Activity Cost Estimates Documentation Review Cost ManagementCost Management Risk RegisterInformation Gathering Tec.

Check lists analysis

y

Activity Duration Estimates

Assumptions Analysis

Scope Baseline


List of Potential Risks Scope ManagementScope Management

Communication Management


gg

Diagramming Techniques


Cost management plan

Schedule management plan SWOT Analysis

Expert Judgment

List of Potential Responses Communication Management

Cost ManagementCost Management


Quality management plan

Project Documents

EEF & OPA

Expert Judgment Quality ManagementQuality Management

Possible – Uncertain – Event that may positively or negatively impact the project

Risks Definitions

Possible Uncertain Event that may positively or negatively impact the project

1- The concept of risk can be applied to nearly every human decision-making action of which the consequences are uncertain

Agreed or ..?

2- Business models based on realizing benefits after investing in executing projects are More risky

3 Ri k M t i f l d i i ki t l E i ll i t ti i d t

Agreed or ..?

Agreed or ? 3- Risk Management is a powerful decision making tool Especially in construction industry

4- For To many organizations, risk is a four letter word and they try to insulate themselves from risk, They position themselves to unload unexpected costs onto others. Increased costs are passed on to consumers by raising prices

Agreed or ..?

Agreed or ..?p p y g p

5- This approach may well have worked in the past, but it can be a recipe for disaster. As international competition become stronger, saddling consumers with increased costs becomes more difficult. Shifting financial risk onto sub-contractors, the least able to resist does not encourage high levels of trust and commitment

Agreed or ..?

contractors, the least able to resist does not encourage high levels of trust and commitment

Pure Risk Insurable Risks – Only Risk of loss – Ex. Fires

Type of Risks

Business Risk Risk of gain or loss – Ex. Product that can be lose money or gain money

We have COP directors in many various fields with high experience & well Educated

We are working in a booming era in the filed of project management

PMI-AGC does not have a fixed office in Riyadh

PMI-AGC does not have a fixed training Schedule

SWOT Analysis

The market is hungry for project management

We have a well established relations with the largest clients & Contractors in many fields

We have well Experienced members of the COP

The service of the PMI-AGC especially in trainings in Riyadh is week

PMI-AGC does not have a fixed training place in Riyadh

idi i l li i i ifi dWe have well Experienced members of the COP board in the training filed

We know that the most wanted service now ins trainings

PMI-AGC is an official representative of PMI

Providing Practical application in specified industries is not strong enough

Surveys for the market needs (PM) tools are not strong enough

Strength WeaknessThe awareness of PMI-AGC now increasing

the PMI certificate became a requirement in practicing Project management

Opportunities Threats

Make use COP experience for indoor awareness & increasing of members

Hard physical communication with PMI-AGC

increasing of members

Make Use of the booming in the filed of PM to provide standard practices awareness

Using the cross relationships to improve cooperation with practitioners in the PM filed

Loosing the advantages of providing the training based on the right processes as PMI-AGC does not have a fixed training place

The service of the PMI-AGC especially in trainings in Riyadh is week

Use the members of COP board & other volunteers experiences in the filed of training services

Enhance & sustain awareness of PMI-AGC

y

Other Practical application in specified industries Will Replace PMI Standard

Loosing the peaks of the market needs In PM filed


Behavior toward Risk

‘The umbrella approach’ where you must allow for every possible

Organization Behavior toward Risk‘The umbrella approach’ where you must allow for every possible eventuality by adding a large risk premium to the price1

‘The ostrich approach ‘ where you burry your head in the sand and amuse everything will be alright, that somehow you will muddle through2 y g g , y g

‘the intuitive approach’ that say don’t trust all the fancy analysis, trust your intuition and gut feel3

‘The brute force approach’ that focuses on the uncontrollable risk and says we can force things to be controlled, which of course they cannot4

InputsPlanning


3. Perform Qualitative Risk Analysis

Risk RegisterTools & Techniques

Inputs

Outputs

Risk Probability & Impact assessment Risk Register Update

Probability & Impact Matrix

OPA

Risk Probability & Impact assessment

Scope ManagementScope Management


Project Scope Statement Updated List of Potential Risks Risk & Quality Assessment

Updated List of Potential Responses Risk Categorization

Risk Urgency Assessment

Expert Judgment

4. Perform Quantitative Risk AnalysisInputs

Planning



Risk Register Update

Tools & Techniques

Outputs

Risk Register Data Gathering & Representing Tec.

Information Gathering Tec.

Quantitative Risk Analysis Modeling Techniques

OPA

Expert Judgment

Updated List of Potential Risks

Schedule management planTime ManagementTime Management

Expert Judgment

Updated List of Potential Responses

The Likelihood of having the event on reality, based on Experience or Lessons learned

Probability Definitions

Probabilities for any event to accrue can’t be calculated or estimated, the most accurate way to have such variable is to reference to company's record for previous similar projects, or out side experts who face or went through similar projects

Agreed or ..?

ImpactTh ff t (ti ) b f Q tit ti A l i t (l M di L ff t) f Q lit ti A l i th t thThe effect (time or money) as number for Quantitative Analysis or as category (large, Medium, Low effect) for Qualitative Analysis that the

project will suffer if the Event happened

p c

Impacts can be defined using Experts, But can be calculated as fixed values (Penalties, embracing or allowances) or can be Agreed or ..?identified as categories (high impact, low Impact, …etc)

Categories can be defined for both Probability & Impact on a scale of (1 to 10) or (1 to 5) Agreed or ..?

Risk Score for Each Risk or Activity M lti l th P b bilit ti I t t t l (Q lit ti l Q tit ti l ) f th Ri k & th A ti iti (th t itiMultiply the Probability times Impact to get a value (Qualitatively or Quantitatively) for the Risks & the Activities (threats are positive

Values & Opportunities are negative values)

y

Risk Score for Project The Sum of all the Scores of all the Risks or the Activities in the Project

The Definition can be done on the Activities or on the WBS (work packages) levelAgreed or ..?

The Arrangement of Risks due to there Scores

Risk Ranking

Ri k R ti Is A number Between 1 & 10 chosen to evaluate the Probability or Impact of a Risk

Risk Rating

Templates Source – Experience

As Output of Qualitative Risk Analysis – Lessons learned

Important Single Formula – Risk Factors

Probability Impact Number Related to the Risk Expected Time of Risk to occurs R

isk

acto

rs

Frequency of Risk event

RFa

Qualitative ScoreQuantitative Amount

( i )Qualitative Score

(Money or Time)

th Ri k t U d t l l t express the Risk category

location of Risk in the Probability & Impact Matrix

Used to calculate reserves

Used in Quantitative Simulationy p

Identify the total Project Risk Score & Go/No Go Decision

Identify the total Project Risk Score & Go/No Go Decision





Sensitivity Analysis

To have the ability & Culture to Do Risk Analysis If Not

If

Don’t waste your time & money

Yes

Plan Risk Management Who…

?Do what…? When…? How..? How much..?

Qualitative Risk

Risk Team , Risk manager & RAM As out put

Engineering Dep.

O id E

Customer All Risk

information are available &

scales of Probability &

Identify

Analysis Estimation Dep.

Cost Control Dep.

Outside Experts available & Evaluated with

acceptable quality

YES

impacts

Probability & impact for Each risk

Score & ranking Choose for

Further As

out p

ut

Risks Procurement Dep.

Construction Dep.Quantitative

Risk Create Risk Breakdown

YESAnalysis

Watch List

Simulations

s

put

Plan Risk Responses

Top Management

HR Dep.

Coordinators

Detailed Risk Register

As out put

Analysis structureRBS Sub Decisions

Probabilistic Scenarios Management

Reserves & Management Contingency & Fallback Plans

As

out p

Responses

Monitor & control Risks, Through Risk meetings Evaluate Responses Document the New Risks & create lessons learned Starting From the risk Planning process

Reserves & Management Fallback Plans

Target

After every single group of analysis The previewed curve took place

Variables (Duration, Cost , Man-hours, Finish date or Start Date )

InputsPlanning


5. Plan Risk Responses

Risk RegisterTools & Techniques

Inputs

Outputs

Strategies for Negative Risks Threats Risk Register Update

Strategies for Positive Risks – Opportunities

Strategies for Negative Risks – Threats Risk Management Plan


Updated List of Potential Responses Contingent Responses Strategies

Expert Judgment Risk Related - Residual Risks

PM Plan Update


6. Monitor & Control Risks Inputs

Outputs




Risk Register Update

Tools & Techniques

Outputs

Risk Audit

Risk Register Risk Assessment

Updated List of Potential Risks Work Performance Information

Variance & trend Analysis Work Performance Report

Technical Performance Measurement


Updated List of Potential Responses


Reserve Analysis

OPA Update

Reserve Analysis

Status meeting

Change Request

PM Plan Update


Most of the Risks In Construction are with high Impact & Controlled Probability Agreed or ..?

The Most Important Process of Risk management – if we will do RM – Is to Identify the Risks Agreed or ..?

Most of the Construction risks are linked to the construction schedule Agreed or ..?

Processes of RM Construction Point

of Viewg p yg

Risk as A decision making tool & the Scenario management can be mostly Used in Construction Agreed or ..?

Risk as A decision making tool Can not be done in the Detailed Level of Schedule Agreed or ..?

Decide To Do RM & RM Planning

Identify Risks

Analyze Risk Use a prompt list – List of Risk Categories

Analyze Risk Score & Ranking for Risks

High Level Risk Analysis for Cost

Hi h L l Ri k A l i f TiExecutives

TeamPlan Risk Responses

Simply How we are going

Review your Own Company’s historical records and other documentation

Brainstorming

C d t ‘’ P t ' I i th High Level Risk Analysis for Time

Detailed Level Scenarios Analysis for Time & Cost

Matrices & Templates for Risk Categories

to deal with risks

Complicatedly What is theeffect of our responses tothe Risks probabilities &

Conduct a ‘’ Pre-mortem' Imagine the project is completed or failed

Affinity diagrams – Grouping of Identified

Expert interviewsAll Time An cost Scenarios outputs Reviewed Impacts

Use the New ModifiedProbabilities & Impact ToRe – Simulate the Project

p

Nominal group technique – Group thinking

Delphi technique – Individual Experts

Cause and effect diagram Fish bone Re Simulate the Projectoutputs

Plan Risk Responses Categories

Avoid

Mitigate

Transfer

Accept

EnhanceExploit

Share

Cause and effect diagram – Fish bone

Failure modes and effects analysis

Strengths, weaknesses , opportunities , and threats (SWOT)threats (SWOT)

Monitor & control Risks, Through Risk meetings Evaluate Responses, Document the New Risks & create lessons learned Starting From the risk Planning process

Group (C) - Based & depend on the Identified risks & there Probability , Impact & Activity Sensitivity – Using Risk Register & Qualitative & Quantitative Risk Analysis & Risk Responses

Qualitative Ranked

Identified RISK

Pre – Mitigated Risks Data Post – Mitigated Risks Data

New Risks

Residual Risks

Mandatory Data To be Defined to Software or manual analysis

Threat or Opportunity & Essay details Threat or Opportunity & Essay details

Mandatory Data To be Defined to Software or manual analysis

Cause & Effect ,Title & Description for Risk

Probability as Qualified (Low, Medium, High & percentage)

S h d l I (L M di Hi h & V l )

Cause & Effect ,Title & Description for Risk

Probability as Qualified (Low, Medium, High & percentage)

S h d l I (L M di Hi h & V l )Schedule Impact (Low, Medium, High & Value)

Cost Impact (Low, Medium, High (Rank & Value)


Schedule Impact (Low, Medium, High & Value)



Project

Performance Impact Description

Score (calculated)

Assignment on the Activities (Impacted Activities)

Performance Impact Description

Score (calculated)

Assignment on the Activities (Impacted Activities)g ( p )

Special Quantitative Probabilities & Impacts on the Assigned Activities (cost &/or Schedule

g ( p )

Special Quantitative Probabilities & Impacts on the Assigned Activities (cost &/or Schedule

Avoid Transfer EnhanceExploit Risk Owner

Plan Risk ResponsesMitigateAccept Share

After Mitigation

Contingency Plans

Fall Back Plans

Risk Manager

Risk Action Owner

Project Procurement Management j g

Final acceptance of the product & release of payment for closing the

proc rement

Monitor & control the performance of the seller according to the contact

procurement

men

t

Plan the Seller selection criteria & prepare the

Select the sellers for different procurement & sign the contract with the selected seller

anag

em

M

Plan who will be the team of procurement & when each procurement will take place

procurement documents & fix the type of contract to be used

ent M

a

Main outputs

ocur

em

Contract Types & contents

Source Selection Criteria Understanding For Needs Over – all life cycle cost Technical capabilityPrice

Contract includes

Procurement management Plan

Procurement Statement of workect P

ro

Contract Types & contents

Fixed Price Contract Cost Reimbursable contacts Time & Materials Contracts

Firm Fixed Price Contract S ff i i i

Management Approaches Technical Approaches





S l t d S ll

Proj

e Firm Fixed Price Contract (FFP)

Fixed Price Incentive Fee Contract (FPIF)

Fixed Price With Economic

Cost Plus Fixed Fee (CPFF)

Cost Plus Incentive Fee (CPIF)

Cost Plus Awarded Fee

Experts, Staff & acquisition

Statement of work - deliverablesSchedule baseline Performance reporting SystemP i i Selected Seller

Procurement Contracts Award

Procurement documentation

Close Procurement

Fixed Price With Economic Adjustment Contract (FPIF)

Cost Plus Awarded Fee (CPIF)

More Risk on the Vendor

More Risk on the Buyer

Pricing

Inspection criteriaAcceptance criteria

Fee & retentionsPenalties

Project Procurement Management

InputsPlanning

1. Plan Procurement

Tools & Techniques

Inputs

Outputs

Make or Buy AnalysisRisk Related contract Decision Procurement management Plan

Activity Cost Estimates

Make or Buy Analysis

Contract Types

Expert Judgment Cost ManagementCost Management

Risk RegisterRisk ManagementRisk Management

Risk ManagementRisk Management



Activity Resource Requirements

Scope BaselineScope ManagementScope Management


Requirement DocumentationScope ManagementScope Management



Change request

Project Schedule

EEF & OPA


Cost Performance Baseline Cost ManagementCost Management

Change request

Teaming Agreement

Procurement Processes Planned

Number of

Actual Number of Submittals

SubmittalProcurement Processes_ Summary

Submittal & Approval

Submittals Submittals

Materials log

Categorized By Division

Approval

Awarding & ordering

Manufacturing Budgeted

cost for the division

(all divisions)

Actual work orders issued

for each division

Manufacturing

Shipping

Delivery on site

Awarding & ordering Categorized By Division

Planned EQ. W

Actual % of the EQ. W

Planned EQ. W

Actual % of the EQ. WWeight

based on the cost & the

fixed duration

Weight based on contacting

the Supplying

Dep.

Weight based on the

cost & the fixed

duration

Weight based on contacting

the Supplying

Dep.

Categorized By Division & eliminatedto only The Items Supplied by SaudiOger or Oger Int. & corresponding theM f t i & Shi i Ti

Manufacturing Shipping

Manufacturing & Shipping TimeSchedule with Equivalent weightingsystem

Actual % of Planned EQ.

Weight based on the

cost & the fixed

duration

the EQ. Weight

based on contacting

the Supplying

Categorized By Division & eliminated only to the Long lead items defined for each division by theprocurement dep. The ideal approach is to load the quantities on the delivery activities & track by

Delivery on site

Dep.p p pp q y yquantities delivered, the current tracking Approach is to depend on the construction % to roughlyidentify the Delivery % complete


1 Plan Procurement

Contract Types

1. Plan Procurement

Fixed Price Contract Cost Reimbursable contacts Time & Materials Contracts

Firm Fixed Price Contract (FFP) Cost Plus Fixed Fee (CPFF) Experts, Staff & acquisition

Fixed Price Incentive Fee Contract (FPIF)

Fixed Price With Economic Adjustment Contract (FPIF)

Cost Plus Incentive Fee (CPIF)

Cost Plus Awarded Fee (CPIF)

More Risk on the Vendor y

More Risk on the Buyer

Procurement management Plan – Includes Guidance for: Procurement Statement of work (SOW)g

Types of Contract To be used

Risk Management Issues

Independent Estimates of Evaluation Criteria

Procurement Documents Schedule Dates for each contract

Identify Requirements for Performance

Directions to provide sellers

( )

Describes the procurement items in sufficient details to allow prospective seller to determine if they are capable of providing the product or service

Independent Estimates of Evaluation Criteria

Activities of Project Management team in Contracting

Activities of Project Management team in Contracting



Templates Used in Procurement

RFI : Request For Information

RFQ: Request For Quotation

IFBManaging Multiple Supplier Methodologies

Coordination with other project’s aspects

Constrains & Assumption Lead time to Purchase

Identify Prequalified Seller

Procurement Metrics used to manage contracts & evaluate sellers

IFB: Invitation for Bid


1. Plan Procurement

Examples Contract Types

Examples

EX. 01 Cost Plus Incentive fee ContractTarget Cost 210, 000 $Target Fee 25 000 $

T t P i = 210000+25000 = 235 000 $

Target Price = 210000+25000 = 235,000 $

alcu

latio

ns

Actual @ completion cost = 200,000 $

Saving =210,000 - 200,000 $ = 10,000 $

Final Fee = 25,000 + 2,000 = 27,000 $ Fi l P i = 200 000 + 27 000 = Final Price = 200,000 + 27,000 =

227 000$Target Fee 25,000 $ Sharing Ration 80/20 C

aSeller Share = 10,000 * 20% = 2,000 $

227,000$227,000$

EX. 02 Fi d P i I i f C

T t P i = 150 000+30 000 = 180 000 Target Price = 150,000+30,000 = 180,000 $s Fi l F 30 000 24 000 6 000 $ Fixed Price Incentive fee Contract

Target Cost 150, 000 $Target Fee 30,000 $ Sharing Ration 60/40C ili P i = 200 000 $

$$

Cal

cula

tions

Actual @ completion cost = 210,000 $O =150 000 210 000 $ = (60 000)

$ Overage =150,000 - 210,000 $ = (60,000)

$ Seller Share = (60,000) * 40% = (24,000) $

Final Fee = 30,000 - 24,000 = 6,000 $ Fi l P i = 210 000 + 6 000 =

216,000$Final Price = 210,000 + 6,000 =

216,000$The seller will only receive = 200,000$

Ceiling Price = 200,000 $ ( , ) % ( , ) $

EX. 03 Fixed Price Incentive fee Contract

Target Price = 9,000,000+ 850,000 = 9,850,000 $

nsFixed Price Incentive fee ContractTarget Cost 9,000,000 $Target Fee 850,000 $ Sharing Ration 70/30Ceiling Price = 12 500 000 $

Cal

cula

tion

Actual @ completion cost = 8,000,000 $

Saving = 9,000,000 - 8,000,000 $ = 1,000,000$

Seller Share = 1,000,000 * 30% = 300,000 $ Ceiling Price = 12,500,000 $

Final Fee = 850,000 + 300,000= 1,150,000 $ Fi l P i = 8 000 000 + 1 150 000 =

9,150,000 $ Final Price = 8,000,000 + 1,150,000 =

9,150,000 $


1 Pl P


1. Plan Procurement

Under Standing For Needs

OPA

Over – all life cycle cost

entif

ies

in O

Technical capability

Risk

Management Approaches

s sc

ale

ideManagement Approaches

Technical Approaches

Warranty Period

Fi i l it

Wei

gh O

n aFinancial capacity

Production capacity

Business Size & type

Pote

ntia

l W

Past Performance

References

Intellectual property rights

P

Price

InputsExecuting




Inputs

Outputs

Bidder Conference


Selected Seller


Bidder Conference

Qualified Seller List

Proposal evaluation Criteria

Expert Judgment


Procurement Contracts Award

PM Plan Update

Seller Proposal

Project Documents


Project Documents Update

Change request

Independent Estimate

Advertising

Internet Search

Teaming Agreement

OPA

Procurement Negotiation



Project Management planTools & Techniques

Inputs

Outputs

Contract Change control SystemIntegration ManagementIntegration Management


Contracts

Contract Change control System

Performance report

Procurement performance review

Inspection & Audit


OPA Update

PM Plan Update P f R t Approved Change request

Work Performance information

PM Plan Update

Change request

Performance Report

Payment SystemPayment System

Claim AdministrationClaim Administration

Record management systemRecord management system


C t t i l d


Contract includes

Statement of work - deliverables

Schedule baseline

Fee & retentions

Penalties

Performance reporting System

Period of Performance

Roles & Responsibilities

Incentives

Insurance & performance Bonds

Subordinates approvalRoles & Responsibilities

Seller’s place of Performance

Pricing

P t t

Subordinates approval

Subcontractors Approval

Change requests handling

T i ti & lt ti Payment terms

Place of Delivery

Inspection criteria

Termination & alternatives

Alternative Disputes resolution (ADR)

3 Administer Procurement Acceptance criteria

Warranty

Product Support


Application of the appropriate project Management processes to the contractual relations & integration of the outputs to overall management processes of the project

Limitation of Liabilities

InputsClosing


4. Close Procurement


Inputs

Outputs

Procurement Audit


Close Procurement Procurement Audit

Negotiation settlement


OPA Update Record management system

Project Integration Management j g g

InputsInitiation

Project Integration Management

1. Develop Project Charter

Project Statement of workTools & Techniques

Inputs

Outputs

Expert Judgment Project Charter

EEF & OPA

Business case

Contracts

Expert Judgment

2. Develop Project Management planInputs

Outputs

Planning

Project Charter


Tools & Techniques

Outputs

Outputs from planning Processes Expert Judgment

EEF & OPAEEF & OPA

3 Direct & Manage Project ExecutionInputs

Execution

3. Direct & Manage Project Execution

Project Management PlanDeliverables

Tools & Techniques

Outputs

Approved Change Requests Expert Judgment

EEF & OPA y ( )Project Management Information

System (PMIS)Work Performance Information

Change Request

PM plan & project Documents Update


Includes the activities & process needed to identify, define, combine, unify & coordinate various process & Project management activities with the project management process groups management activities with the project management process groups

Project Charter Formally initiate the project

Provide project manager with the authority

Business Case

Necessary information from a business stand point toto apply resources to project activities

Approved By the sponsor

Project Statement of work (SOW)

Business needs

determine whither or not the project worth the requiredinvestments

(SOW)

Product scope description

Strategic plan

P j t M t lProject Management planLife Cycle of the project

Project Management processes used

Level of implementation of each process

pTools & techniques for accomplishing the processes

How work will be executed to accomplish p j jproject objectives

Change & configuration Management plan

Techniques for communicating Stakeholders

Key management review for contracts & timing

InputsMonitoring & Controlling


4. Monitor & Control Project Work

Project Management PlanTools & Techniques

Inputs

Outputs

Expert Judgment Change Request

EEF & OPA

Performance reports Expert Judgment

PM plan & project Documents Update( )Project Management Information System

(PMIS)

5. Perform Integrated Change ControlInputs

Outputs

Monitoring & Controlling


Change Requests Status Update

Tools & Techniques

Work Performance Information Expert Judgment

Change Requests PM plan & project Documents Update

EEF & OPA

6 Close Project or phaseInputs

Closing

p p j p

6. Close Project or phase

Project Management PlanFinal Product

Tools & Techniques

Outputs

Accepted Deliverables Expert Judgment

OPAResults Transmission

OPA Update


Direct & Manage Project Execution

C ti A ti

Documented Direction for executing the project work to bring the expected future performance of the project work in line with the project management plan

Corrective Action

Documented Direction to perform an activity that can reduce the probability of negative consequences associated with project risks

Preventive Action

The formally documented identification of a defect in a project component with a recommendation to ether repair the defect orcompletely replace the component

Defect Repair

completely replace the component

P f I t t d Ch C t lPerform Integrated Change Control

Monitor & Control Project WorkConfiguration Management Plan

A system provides a standardized & effective way to centrally manage a proposed change to the baseline (schedule, Budget or Scope)

Establish an evolutionary method that constantly identify & request changes

Provide opportunities to continuously validate & improve project by considering the inputs of each change pp y p p j y g p g

Provide mechanisms for the project management team to consistently communicate all approved & reflected Change to all stakeholders