Training Course - ideh.pouraportal.comideh.pouraportal.com/IdeaWeb/Files/Data/Library/2016830920381.pdf · PM Process Groups: Definitions Ali Rahmatitavakol, MSc,PMP 34 Monitoring

Ali Rahmatitavakol, MSc,PMP

PMBOK Guide; 5th EditionTraining Course

Mr. Ali Rahmatitavakol, MSc, PMP


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علي رحمتي توكل: ارائه كننده مدرس و مشاور مديريت پروژه

Ali Rahmatitavakol, MSc,PMP 3

Project Management Framework in PMBOK GuideChapter 1. Introduction

Chapter 2. Organizational Influences and Project Life Cycle

Chapter 3. Project Management Processes

Chapter 4. Project Integration Management

Chapter 5. Project Scope Management

Chapter 6. Project Time Management

Chapter 7. Project Cost Management

Chapter 8. Project Quality Management

Chapter 9. Project Human Resource Management

Chapter 10. Project Communications Management

Chapter 11. Project Risk Management

Chapter 12. Project Procurement Management

Chapter 13. Project Stakeholder Management


INTRODUCTIONORGANIZATIONAL INFLUENCES AND

PROJECT LIFE CYCLE

4


Project Management Institute (PMI)®

A professional institute specializing in project management

Located in the United States, Pennsylvania

Founded in 1969

Website: www.pmi.org

Activities:Project management standards

Project management books

A monthly magazine (PM Network)

A monthly newsletter (PMI Today)

A quarterly journal (Project Management Journal)

Supervision on training (PMI Registered Education Providers (REP))

Professional certification


PMBOK Guide

PMBOK® = Project Management Body Of Knowledge

“PMBOK® Guide” is a global standard that is Providing a ‘guide’ and ‘framework’ of project management

Providing a set of ‘good practices’ in project management

Promoting a ‘common language’ for the project management profession

Applying to most projects

Editions:1st: 1996

2nd: 2000

3rd: 2004

4th: 2008

5th: 2012


What is a “Project”?

Type Examples

Product a power plant, a petrochemical plant, a road, a hospital, …

Service overhaul maintenance, …

Result market survey, Test Report, …

Temporary AttemptsResources

A project is a temporary endeavor undertaken to create a unique product, service, or result.


Application Areas

Oil and Gas Power

Projects are performed in different application areas (industries), like:

Aerospace Transportation

Software Building Cinema


Project’s Characteristics - Progressive Elaboration

More clarity as the project proceeds

Elaborating and detailing plans, as more detailed information and more accurate estimates are available (i.e. planning processes are iterative).

Aspects of progressive elaboration:Less ambiguity

More detailed project plans

More accurate estimates (of durations, costs, …)

Fewer number of project risks

Rolling-wave planning

…


Rolling-wave Planning (Case 1)

10 2 3 4 5

Master planning of the entire project

Detailed planning of short-term periods (e.g. 1-year look-ahead)


Rolling-wave Planning (Case 2)

10 2 3 4 5

Detailed planning of the entire project; from the beginning

Revising the (detailed) plan at the end of each period (e.g. every year)


Portfolios, Programs and Projects?Project Management?

Project’s RequirementsKnowledge + Skills+ Tools + Techniques

Project Management

Operations Project Operations Project Operations

Developing New Product

Improving Manufacturing Process

I i

Program: Projects and operational work are grouped based on relationshipPortfolio: Programs, projects, and operational work are grouped based on strategic objectives


The Relationships Among Portfolios, Programs, and Projects

Portfolio

Subportfolios

Projects Programs

Projects Subprograms

Operational Work

Projects

Operational Work

Operational Work

Programs

Projects Subprograms

Operational Work

Projects

Operational Work

Projects Operational Work

Strategic ObjectivesStrategic Plan

Benefit of Program > Sum (Benefit of Program’s Element if managed individually)


Project Manager’s Role and Responsibilities

Leading The project team

Responsible for achieving the project objectives

Reporting to a functional manager or program/portfolio manager based on organizational structure

Collaborating with other roles, such as quality assurance manager, and subject matter experts

Satisfying task needs, teem needs, and individual needs.


PMO: Concepts, Types and Functions

PMO is the department governing and standardizing project management processes in an organization.

PMO Types:

Controlling Role

Supportive/Consultative Role

DirectiveRole

Degree of C

ontrol

High

Moderate

Low


PMO’s FunctionsManaging Resource PoolsDeveloping Project Management SystemsRecording, Organizing and Sharing Historical Information and Lessons LearnedTrainingMonitoring project management processesCoordinating CommunicationRecommending / Terminating Projects

16


Organizational Cultures and Styles

Many organizations have developed some of their experiences as cultures:

Shared values, beliefs, and expectations

Regulations, policies, and procedures

Motivation and reward systems

Risk tolerance

Work ethic and work hours


Organizational Breakdown Structure

Functionall WeakMatrix

BalancedMatrix

StrongMatrix Projectized


Functional OrganizationManagingDirector

ArchitecturalManager

StructuralManager

MechanicalManager

ElectricalManager

ArchitecturalDesigner

StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner

Project Coordination

Functional managers together make project decisions.

All communications are through functional managers.

ectrical

Staff

Functional Manager

Chief Executive


Weak-Matrix OrganizationManagingDirector


StructuralManager

MechanicalManager

ElectricalManager


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


A project team member acts as the project ‘coordinator’ (or ‘expeditor’).


Balanced-Matrix OrganizationManagingDirector


StructuralManager

MechanicalManager

ElectricalManager


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner

ProjectManager

StructuralDesigner

MechanicalDesigner

ElectricalDesigner


A project team member is assigned as the ‘project manager’.

Project management is not recognized as a profession yet.


Strong-Matrix OrganizationManagingDirector


StructuralManager

MechanicalManager

ElectricalManager


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


StructuralDesigner

MechanicalDesigner

ElectricalDesigner

Manager ofManagers

ProjectManager

ProjectManager

ProjectManager


There is a separate organizational unit for project managers.

Project management is a professional, full-time job.


Projectized OrganizationManagingDirector


StructuralDesigner

MechanicalDesigner

ElectricalDesigner


Each project has it’s own team, completely focusing on that project.Project team members are usually co-located.

ProjectManager


StructuralDesigner

MechanicalDesigner

ElectricalDesigner

ProjectManager


StructuralDesigner

MechanicalDesigner

ElectricalDesigner

ProjectManager


Composite (Blended) Organizations

Some organizations use a blend of organizational structure

Sample 1:Organizing ‘engineering’ and ‘procurement’ as ‘strong matrix’.

Organizing ‘construction’ as ‘projectized’.

Sample 2:For typical, routine projects >> ‘strong matrix’

For large, complex and important projects >> ‘projectized’

For simple, small projects >> ‘balanced matrix’ or ‘weak matrix’

Sample 3 (Tight Matrix):At project’s peak: almost ‘projectized’ (co-located project team)

Other courses of project life cycle: pure ‘strong matrix’


Organizational Process Assets

Processes & Procedures:

Standards / Policies / Guidelines

Procedures / Work Instructions

Formats / Templates

Communication Requirements

Proposal Evaluation Criteria

Performance Measurement Criteria

…

Corporate Knowledge Base:

Previous Project Files

Historical Information

Lessons Learned

Corporate Databases

…

Process assets are useful for doing project management which are developed based on best experiences.


Enterprise Environmental Factors

Each project is encircled and affected by an environment:Internal Environment Organizational culture, Organizational structure, Organizational processes, Infrastructure, Existing human resources

External environmentLaws and Regulations, Available Resources/Vendors, Marketplace Conditions, Political Climate, Commercial Databases, Weather Conditions

Enterprise environmental factors may increase, decrease, or change project management options.


Project Stakeholders

“Project Stakeholders” are internal and external individual or group who may affect the project or may be affected by the project positively or negatively.

Stakeholders’ effects on the project or effects of the project on Stakeholders may change during the project life cycle.

Project

StakeholdersS


Project Life Cycle

Project life cycle:A collection of project phases from the project’s start to the project’s end

Examples of project phases:Engineering / Procurement / Construction & erection / Commissioning

Design / Build

Phasing of a project depends on the application area (industry) in which the project is defined.

Life-cycle approach:Dividing a project into phases for better planning and control.

Project phases can be divided into some sub-phases and milestones.


Project Assumptions and Constraints

29

Project Assumptions, like:Annual inflation rate = 15%

Currency exchange rate = 30,000 Rls / USD

Client approval duration = 4 weeks

…

Project Constraints, like:Documents requiring client’s approval

Approved vendors list

…


PROJECT MANAGEMENT PROCESSES

30


Tools and TechniquesInputs Outputs

Processes

The 47 project management processes:By 10 “Knowledge Areas”

By 5 “Process Groups”

Process Groups

Initiating . .

Knowledge Area

Scope

.

.


47 Project Management Processes

Initiate Plan Execute Control Close Total

Integration 1 1 1 2 1 6

Scope ۴ 2 ۶

Time ۶ 1 ٧

Cost ٣ 1 ۴

Quality 1 1 1 3

Human Resources 1 3 4

Communication 1 ١ 1 ٣

Risk 5 1 6

Procurement 1 1 1 1 4

Stakeholder ١ ١ ١ ١ ۴

Total 2 ٢۴ 8 ١١ 2 47


Initiating Definition, authorization and formal start of the phase or project

Planning Refine the project objectives and define required activities to achieve project objectives

Executing Implement the project management plan

Controlling Controlling the project performance against the project plan and taking appropriate actions to resolve variances and to rectify trends

Closing Finalization project activities, formal acceptance of project deliverables and formal close-out of the phase or project

PM Process Groups: Definitions


Monitoring & Controlling

Initiating Closing

PM Process Groups: Process Flow

• There are interaction and overlap among process groups.• Processes may iterate during project life cycle.


Planning Outputs: Baselines

Scope Statement,WBS, WBS Dictionary

QualityStandards & Codes

Time Schedule,S-curves

Cost Budgets,Cash Flow

Schedule

Cost

Scope

Quality

What to do? When to do?

At which cost?With whichquality?

4Baselines


Monitoring and Control

Step 1) MonitoringCollecting current performance data and measuring current performance

Step 2) ComparingComparing the current performance with the planned performance (periodic performance and trend of performance )

Step 3) AnalyzeAnalyzing (identifying causes of) variance / trend

Step 4) Resolving/ImprovementActing to resolve / minimize variance and to rectify trend (Evaluating possible alternatives and select best of them)


PROJECT INTEGRATION MANAGEMENT

37


Project Integration Management

The processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

38

4.1 Develop Project Charter

4.2 Develop Project

Management Plan

4.3 Direct and Manage Project

Work

4.4 Monitor and Control Project

Work

4.5 Perform Integrated

Change Control4.6 Close Project

or Phase


Process Initiate Plan Execute Control Close

4.1. Develop Project Charter *

4.2. Develop Project Management Plan *

4.3. Direct and Manage Project Execution *

4.4. Monitor and Control Project Work *

4.5. Perform Integrated Change Control *

4.6. Close Project or Phase *

Integration Management Processes

39


The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Develop Project Charter

DevelopProject Charter Project Charter


Project purpose or justification,Measurable project objectives and related success criteriaHigh-level requirementsAssumptions and constraintsHigh-level project description and boundariesHigh-level risksSummary milestone scheduleSummary budgetStakeholder listProject approval requirementsAssigned project manager, responsibility, and authority levelName and authority of the sponsor or other person(s) authorizing the project charter


The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan.

Develop Project Management Plan

Develop Project Management

Plan

Project Management

Plan


Direct & Manage Project Work

Direct & ManageProject Work

Deliverables

Work Performance Data

Change Requests


The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives.

Direct & Manage Project Work

Perform activities to accomplish project objectivesCreate project deliverablesProvide, train, and manage project team membersObtain, manage, and use resources including materials, tools, equipmentImplement the planned methods and standardsEstablish and manage project communication channelsGenerate work performance data (cost, schedule, progress ,…)Issue change requests and implement approved changesManage risks and implement risk response activitiesManage sellers and suppliersManage stakeholdersCollect and document lessons learned


The process of tracking, reviewing, and reporting the progress to meet the performance objectives defined in the project management plan.

Monitor and Control Project Work

Comparing actual project performance against the project management planWhat are corrective or preventive actions?Identifying new risksProviding project forecastsMonitoring implementation of approved changesProviding appropriate reporting on project progress.

Monitor and Control Project

Work

Change Requests

Work Performance

Reports


The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition.

Perform Integrated Change Control

Perform Integrated

Change Control

Approved Change Requests


The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.

Close Project or Phase

satisfy completion or exit criteria for projecttransfer the project’s productscollect project records, and lessons learned

Close Project or Phase

Final product, service, or

result transition


PROJECTSCOPE MANAGEMENT

48


Project Scope Management

The processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Inclusions

Exclusions

49

5.1. Plan Scope

Management5.2. Collect

Requirements5.3. Define

Scope

5.4 Create WBS

5.5 Validate Scope

5.6 Control Scope

Project Product



5.1. Plan Scope Management *

5.2. Collect Requirements *

5.3. Define Scope *

5.4. Create WBS *

5.5. Validate Scope *

5.6. Control Scope *

Scope Management Processes

50


Plan Scope Management

Plan Scope Management

Scope Management

Plan

Requirements Management

Plan


Scope Management Plan

52

How to perform…?Who are responsible to…?

Define ScopeCreate and Maintain WBSValidate ScopeControl Scope


Requirements Management Plan

53


Format Requirements Traceability MatrixIdentify and refine requirementsAnalyze requirementsPrioritize requirementsControl requirementsReport requirements


The process of determining, documenting, and managing stakeholder needs.

Collect Requirements

54

Collect Requirements

Requirements Documentation

Requirements Traceability

Matrix


Interviews with stakeholders

Questionnaires and surveys

Focus groupsQualified stakeholders and experts discuss together

Facilitated workshops

Sessions of cross-functional stakeholders

BrainstormingDelphi Technique

Observations

Prototypes

Tools & Techniques

55


• Idea / mind mappingGrouping ideas

• Affinity DiagramsGrouping ideas

Tools & Techniques

56


Req

uire

men

tTy

pe

Req

uire

men

tC

ode

Req

uire

men

tD

escr

iptio

n

Pri

ority

Bus

ines

sN

eeds

/ O

bjec

tives

Pro

ject

O

bjec

tives

Pro

ject

D

eliv

erab

les

Sou

rce

Vers

ion

Ow

ner

Acc

epta

nce

Cri

teri

a

stat

us

Dat

eC

ompl

eted

Requirements Traceability Matrix- Sample


The process of developing a detailed description of the project and product

Define Scope

58

Define Scope

Project Scope Statement

Project Documents

Updates


Contents of Project Scope Statement

Product and project scope description

Acceptance criteria

Project boundaries (inclusions and exclusions)

Project deliverables

Project Assumptions

Project Constraints

59


The process of subdividing project deliverables and project work into smaller, more manageable components.

Create WBS

60

WBS: Work Breakdown Structure

Work Packages: lowest level of a WBS.

Create WBS

Scope Baseline

Project Documents

Updates


WBS Presentation

61

Project

E

PI

ME

P

PI

ME

C

PI

ME Pro

ject

E PI

ME

P PI

ME

C PI

ME

Graphical Tabular (Outline)


Decomposition - An Example

62

Ammonia Plant

Project Management

Initiating

Planning

Controlling

Closing

General Activities Engineering

Basic

Process

Civil

Mechanical

Electrical

Piping

Instrumentation

HVAC

Detail

Process

Civil

Mechanical

Electrical

Piping

Instrumentation

HVAC

Procurement

Domestic

Mechanical

Electrical

Piping

Instrumentation

HVAC

Foreign

Mechanical

Electrical

Piping

Instrumentation

HVAC

Construction and

Commissioning

Civil

Mechanical

Electrical

Piping

Instrumentation

HVAC


100% Rule

WBS shall include all the work required and only the work required.

63

Project

E

PI

ME

P

PI

ME

C

PI

ME

SumTotal of

= ProjectScope{ {


How to Decompose?

How to decompose?By functions (or disciplines) FWBS

By components of the product PCWBS

By subcontracts (or subprojects) CWBS

64


WBS Dictionary

A document that detail some information about WBS components:WBS code

Description of work

Responsible organization / individual

Associated schedule activities / milestones

Associated deliverables

Required resources

Estimated / budgeted cost

Quality requirements

Acceptance Criteria

Relevant procedures and work instructions

Technical / contractual references

65


Scope Baseline

66

PProject Scope Baseline

WBS Dictionary

WBS

approved detailed project scope

statement

WBS Dictionary

WBS

approved detailed project scope

ssssstttttttttttttttaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaatttttttttttttttttttttttttttttttttttttttttttteeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeemmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttttttttttttttttttttttttttttttttttttttttssssssssssssssssssssssssssssssssssssssssssssssssssssttttttttttttttttttttttttttttttttttttttttttaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaatttttttttttttttttttttttttteeeeeeeeeeeeeeemmmmmmmmm


The process of formalizing acceptance of the completed project deliverables.

Validate Scope

67

Validate Scope

Accepted Deliverables

Change Requests


Scope Validation vs. Quality Control

68

Validated Scope

Project Invoice

Verified Scope

Contractor:By Quality

Control

Sponsor/Customer: By Meeting

Direct & Manage Project

Execution

Contractor

Inspection


The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

Uncontrolled scope changes are called scope creep.

Control Scope

69

Control Scope

Work Performance Information

Change Requests

Ali Rahmatitavakol, MSc,PMP٧٠

Scope Monitoring

Change Identification

Change Request

Change Analysis

Change Order

Scope Revision

Change is Necessary?

Change Documentation

No

Yes

Scope Changes

Performance Plan


PROJECTTIME MANAGEMENT

71


Project Time Management

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

72

6.1. Plan Schedule

Management6.2. Define Activities

6.3. Sequence Activities

6.4. EstimateActivity

Resources

6.5. EstimateActivity

Durations6.6. Develop

Schedule6.7. ControlSchedule



6.1. Plan Schedule Management *6.2. Define Activities *6.3. Sequence Activities *6.4. Estimate Activity Resources *6.5. Estimate Activity Durations *6.6. Develop Schedule *6.7. Control Schedule *

Time Management Processes

73


Plan Schedule Management

Plan Schedule Management

Schedule Management

Plan

• The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.


How to perform project time management processes?Procedures, Forms, Scheduling Method, and Scheduling Tools


Define ActivitiesSequence ActivitiesEstimate Activity ResourcesEstimate Activity DurationsDevelop ScheduleControl ScheduleDefine and Manage Schedule ThresholdsDefine and Manage Schedule ContingenciesRules of Performance Measurement (Fixed Formula,…)

Level of Accuracy (Duration and Contingencies)Reporting Formats and Frequencies


Scheduling Method

(CPM, CCM)

Scheduling Tool

(MSP,P6)

Scheduling Model

Scheduling Model

Project Information

(WBS, Activities,

Durations,…)

Project Schedule

Fast Track or Crash

Lag or Lead

Milestones


Define Activities

Define Activities

Activity/Milestone List

Activity Attributes

• The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

Work Package

Activity3

Activity2Activity1

Activity3

AcAcAcAcAcAcAcAAcAAcAcAAcAAcAAAcActivity2Activity1


Activity Attributes

WBS ID

ActivityID

ActivityName

Duration Activity Type Predecessor Responsible

78


Sequence Activities

Sequence Activities

Project Schedule Network Diagrams

Project Documents

Updates

The process of identifying and documenting relationships among the project activities.

Predecessor Successor


Dependencies - Types

Four types of logical (precedence) relationships:

Four types of dependencies:

Mandatory (hard logic): naturally, legally or contractually required

Discretionary (preferred, preferential or soft logic): selected based on the best practices in an application area (industry)

External: links to another project or non-project (operational) activities

Internal: these are under project team’s control.80

Finish to Start Start to Start Finish to Finish Start to Finish


Project Schedule Network Diagram

Arrow Diagramming Method (ADM)

81

ADM/AOA PDM/AONEvents Activities Nodes

Activities & Dependencies Dependencies ArrowsFS FF/FS/SS/SF Relationships

A

B C

A C

BEndStart

Precedence Diagramming Method (PDM)


Lag vs. Lead

Lag

82

A

B

FASB-3 days

A

B

SASB+3 days

Lead


Estimate Activity Resources

Estimate Activity

Resources

Activity Resource Requirements

Resource Breakdown Structure

• The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

Resource Type

Resource Quantity

Resource Curve

• Worker• Truck• ...

• 100 Hrs.• 200 Meter• ...

• Flat• Bell• ...


Resource Breakdown Structure (RBS)

84

Resources

Labor

Engineer

Worker

Nonlabor

Truck

Bulldozer

Crane

Material

Pipe

Cable

Cement


Resource Allocation

Project Resources

Engineer Worker Truck Pipe …

Activity 1

Activity 2

Activity 3

Activity 4

…

85

Allocated Resource

Bottom-up estimating


Estimate Activity Durations

Estimate Activity

Durations

Activity Duration Estimates

Project Documents

Updates

• The process of estimating the number of work periods needed to complete individual activities with estimated resources.

The estimates originate from the people who are most familiar with the nature of the activities.


Estimate Activity Durations

87

Required Resources

Available Resources

Activity Durations

Required Work Amount


Tools & Techniques

Expert Judgment

Analogous EstimatingUsing the actual duration of a previous, similar project / activity

Less costly and time-consuming, but also less accurate

Parametric EstimatingExample: 100 meter cabling* 0.5 hour / meter = 50 working days

Three-point (PERT) EstimatesPERT Analysis:

Beta distribution: TE = (TO + 4* TM + TP) / 6

Triangular distribution: TE = (TO + TM + TP) / 3

88

• Optimistic (best-case scenario)

• Most Likely

• Pessimistic (worst-case scenario)


Tools & Techniques

Reserve Analysis (time reserves or buffers)

89

Schedule Baseline:• Estimated Durations• Contingency Reserve for identified Risks (Known-Unknown)

• Management Reserve for Unforeseen Work in Project Scope Unknown-Unknown

Project Duration:

Project Actual Progress Reserves


Develop Schedule

Develop Schedule

Schedule Baseline

ProjectSchedule

• The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model.


Critical Path

Critical Path Method (CPM):Minimum duration of project completion.

Total Float (TF): the amount of time that an activity may be delayed from its early start, without delaying the project finish date or violating a schedule constraint.Free float (FF): the amount of time that an activity may be delayed, without delaying early start of its successors or violating a schedule constraint.

critical path

91

Forward Analysis Early Start/Finish

Backward Analysis Late Start/Finish

g


Critical Path Method and Critical Chain Method

CPM

ES DActivity Name

EF

LS LFTF

Legend

Critical Chain Method: Critical chain = a resource-constrained critical path


Critical Path Method-Workshop

1 2A

5B

2C

4E

1F

8D

8G

1H

2I

ES DActivity Name

EF

LS LFTF

Legend

Please calculate/determine• ES,EF,LS,LF,TF• Critical and Non-critical Paths


Control Schedule

Control Schedule

Work PerformanceInformation

Schedule Forecasts

Change Requests

• The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan.

Performance Reviews (EVM,…)


PROJECTCOST MANAGEMENT

95


PROJECT COST MANAGEMENT

The processes involved in planning, estimating, budgeting,financing, funding, managing, and controlling costs so that theproject can be completed within the approved budget.

96

7.1. Plan Cost

Management7.2 Estimate

Costs7.3

Determine Budget

7.4. ControlCosts



7.1. Plan Cost management *

7.2. Estimate Costs *

7.3. Determine Budget *

7.4. Control Costs *

Cost Management Processes

97


Plan Cost Management

Plan Cost Management

Cost Management

Plan

The process that establishes the policies, procedures, anddocumentation for planning, managing, expending, and controllingproject costs.


How to perform project cost management processes?How to plan, structure, expend, and control project costs?

Policies, ProceduresHow to perform…?

Who are responsible to…?

Estimate CostDetermine BudgetControl CostUnits of MeasureCost AccountsControl ThresholdsReporting FormatsLevel of Precision


Cost Accounts

Cost accounts are some elements of WBS to manage project cost

100

Project

1.1

1.1.1

1.1.1.1

1.1.1.1.1

1.1.1.1.2

1.1.1.2

1.1.2

1.2

1.2.1 1.2.2

1.3

Control Accounts


Estimate Costs

Estimate Costs

Activity Cost Estimates (Resource Costs, Inflation,

Exchange Rate,…)

Basis of Estimates (Assumptions, Constraints,

Range, Confidence Level, …)

The process of developing an approximation of the monetary resources needed to complete project activities.


Project Resources

102

Project Resources

LaborContingency

Costs

Costof Financing

Inflation Allowance

ExchangeRate

Facilities

Services

Cost/resource estimates is based on most likely cost/resource


Tools & Techniques

103

Expert Judgment

Analogous estimating

Parametric estimating

Bottom-up estimating

Three-point estimating

Reserve analysis

Cost of quality

Estimated Cost = Total Quantity * Unit Cost


Tools & Techniques

104

Reserve Analysis (cost reserves or buffers)

Project Budget(Funding Requirements)

Cost Baseline (Control Accounts)

Contingency Reserves (Known-

Unknowns or Identified Risks)

Work Package Cost Estimates

Activity Contingency

Reserve

Activity Cost

Estimates

Management Reserve

(Unknown-Unknowns)

Unforeseen Work

Change Request to Use Management

ReserveCost Baseline

is Revised


Determine Budget

Determine Budget

Cost Baseline

Project Funding Requirements

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Cost Baseline: Approved version of the time-phased project budget, but excludes management reserves.

Performance Measurement Baseline (PMB): Cost Baseline


Cost Aggregation Funding Limit Reconciliation

Tools & Techniques


Control Costs

Control Costs

Work PerformanceInformation (CV,CPI,..)

Cost Forecasts (EAC)

Change Requests

The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline


EVM for control account

108

Planned value (PV) or Budgeted Cost of Work Scheduled (BCWS)Earned value (EV) or Budgeted Cost of Work Performed (BCWP)Actual Cost (AC) or Actual Cost of Work Performed (ACWP)

PV = BAC * Planned Physical % Complete

Planned Physical % Complete: Baseline Physical % Complete

Progress Measurement Criteria

Actual Physical % Complete EV

EV = BAC * Actual Physical % Complete

Tools & Techniques


EVM Index

SV = EV – PV

SPI > 1 or SV > 0 Project is ahead of its baseline scheduleSPI = 1 or SV = 0 Project is on scheduleSPI < 1 or SV < 0 Project is behind of its baseline schedule

CV= EV − AC

Schedule Variance (SV) Schedule Performance Index (SPI)Cost Variance (CV) Cost Performance Index (CPI)

CPI > 1 or CV > 0 Project is under budgetCPI = 1 or CV = 0 Project is on budgetCPI < 1 or CV < 0 Project is over budget

SPI = EV/PV CPI = EV/AC


PV, EV, and AC S-curves


Forecasting

111

Initial plan is no longer validEAC = AC + Bottom-up ETC

EAC forecast for ETC work performed at the budgeted rateEAC = AC + (BAC – EV)

EAC forecast for ETC work performed at the present CPIEAC = BAC / CPI

EAC forecast for ETC work considering both SPI and CPI factorsEAC = AC + [(BAC – EV) / (CPI × SPI)]Weight of SPI and CPI may be 80/20, 50/50, …

ETC = EAC – AC

ETC = Reestimate (From Bottom-up Estimate)

Tools & Techniques


To-Complete Performance Index (TCPI)

112

(Work Remaining) / (Funds Remaining)Based on the BAC: (BAC – EV) / (BAC – AC).Based on the EAC: (BAC – EV) / (EAC – AC).

Tools & Techniques


PROJECTQUALITY MANAGEMENT

113


Project Quality Management

The processes and activities of the performing organization thatdetermine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.

114

Stakeholders’ NeedsdsScope Requirements

(What to do?)s Quality Requirements

(Which specifications?)

Importance of Quality Planning > Importance of InspectionCost of Preventing < Cost of Correcting Mistakes

8.1. Plan Quality

Management8.3. Control

Quality8.2. Perform

Quality Assurance



8.1. Plan Quality Management *

8.2. Perform Quality Assurance *

8.3. Control Quality *

Quality Management Processes

115


Plan Quality Management

Plan Quality Management

Quality Management Plan

Process Improvement Plan

Quality Metrics

Quality Checklists

The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements.

Example of Quality Metrics: on-time performance, cost control, defect frequency, failure rate, availability, reliability, and test coverage


How to perform project quality management processes?how quality will be managed and validated throughout the project?

Policies, ProceduresHow to perform…?


Identifying quality requirementsPlanning to meet the quality requirementsQuality AssuranceQuality Control


Steps for analyzing project management and product development processes to identify activities that enhance

their value.How to perform…?


Process boundaries: Purpose of the process, the start and end of the process, its inputs and outputs, the process owner, and the stakeholders of the process.Process configuration: A graphic depiction of processes, with interfaces identified, used to facilitate analysis.Process metrics: Along with control limits, allows analysis of process efficiency.Targets for improved performance: Guide the process improvement activities.


Cost of Quality (COQ)

Failure Costs: Cost of Poor Quality

Tools & Techniques


Seven Basic Quality Tools • Statistical Sampling

Tools & Techniques


Perform Quality Assurance

Perform Quality Assurance

Change Requests

The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.


Quality Audits

• Identify all good and best practices• Identify all nonconformity• Share good practices

Process Analysis

Examines problems experienced, constraints experienced, and non-value-added activities identified during process operation.

Tools & Techniques


Control Quality

Quality Control Measurements

Control Quality

Validated Changes

Verified Deliverables

Work performanceinformation

Change requests

Control Quality is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.


Seven Basic Quality ToolsStatistical Sampling

Inspection

Identifying the causes of poor process or product qualityand recommending and/or taking action to eliminate them

Validating that project deliverables and work meet therequirements specified by key stakeholders necessary forfinal acceptance.

Tools & Techniques


PROJECT HUMAN RESOURCE MANAGEMENT

125


Project Human Resource Management

The processes that organize, manage and lead the project teamProject team?Project management team?

126

9.1 Plan Human Resource

Management

9.2 AcquireProject Team

9.3 DevelopProject Team

9.4 ManageProject Team



9.1. Plan Human Resource Management *

9.2. Acquire Project Team *

9.3. Develop Project Team *

9.4. Manage Project Team *

Project Human Resource Management

127


Plan Human Resource Management

Plan Human Resource

Management

Human Resource Management

Plan

The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.


How to perform project human resource management processes?

Procedures, FormsHow to perform…?


Roles, Authority, Responsibilities, CompetencyProject Organization ChartsStaffing Management Plan



Staff AcquisitionResource Calendars (Working Time, resource histogram is a tool)Staff Release PlanTraining NeedsRecognition and RewardsCompliance (complying with applicable government regulations)Safety


Organization Charts and Position Descriptionshierarchical, matrix, and text-oriented

Tools & Techniques


RACI: One example of a RAM


Acquire Project Team

The process of confirming human resource availability and obtaining the team necessary to complete project activities.

133

Acquire Project Team

Project Staff Assignments

Resource Calendars


Pre-assignmentWhen project team members are selected in advance, they are considered pre-assigned. This situation can occur if the project is the result of specific people being identified as part of a competitive proposal, if the project is dependent upon the expertise of particular persons, or if some staff assignments are defined within the project charter.

NegotiationThe project management team may need to negotiate with functional managers, other project management teams, external organizations

AcquisitionWhen the performing organization is unable to provide the staff needed to complete a project, the required services may be acquired from outside sources. This can involve hiring individual consultants or subcontracting work to another organization.

Virtual TeamsMulti-Criteria Decision Analysis

Availability, Cost, Experience, Knowledge, Skills, …

Tools & Techniques


Develop Project Team

135

The process of improving competencies, team member interaction, and overall team environment to enhance project performance.

Develop Project Team

Team Performance Assessments


Interpersonal SkillsTrainingTeam-Building Activities

Forming, Storming, Norming, Performing, Adjourning.Ground RulesColocationRecognition and Rewards

Tools & Techniques


Manage Project Team

The process of tracking team member performance, providing feedback,resolving issues, and managing changes to optimize project performance

137

Manage Project Team

Change Requests


Observation and ConversationProject Performance AppraisalsInterpersonal Skills

LeadershipInfluencing (effective listening skills, …)

Conflict ManagementWithdraw/Avoid. Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others.Smooth/Accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s position to the needs of others to maintain harmony and relationships.Compromise/Reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict.Force/Direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually enforced through a power position to resolve an emergency.Collaborate/Problem Solve. Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment.

Tools & Techniques


PROJECT COMMUNICATIONS MANAGEMENT

139


Project Communications Management

The processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information..

140

10.1 Plan Communications

Management10.2 Manage

Communications10.3 Control

Communications



10.1. Plan Communications Management *

10.2. Manage Communications *

10.3. Control Communications *

Communications Management Processes

141


Type of Communication

142

Internal and externalFormal and informalVertical and horizontalOfficial and unofficialWritten and oral, and verbal and nonverbal


Plan Communications Management

143

The process of developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements, and available organizational assets.

Who? What? When? Where? How?

Plan Communications

Management

Communication Management

Plan

Number of potential communication channels = n * (n-1) / 2


How to perform project communications management processes?



Stakeholder communication requirementsInformation to be communicated (with reasons), including language, format, content, and level of detailTime frame and frequency for the distributionMethods or technologies to convey information Flow chartsCommunication constraints


Communication Technology

Databases, and websites

Communication Models

Communication MethodsInteractive: meetings, phone calls, video conferencing, …

Push: letters, reports, emails, faxes, voice mails, press releases, …

Pull: intranet sites, knowledge repositories, databases, …

Meeting

145

Tools & Techniques


Manage Communications Management

The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan.

146

Project communications:Performance reportsDeliverables statusSchedule progressCost incurred.

Manage Communications

Management

Project Communications


Communication Technology

Communication Models

Communication Methods

Information Management Systems

Performance Reporting

147

Analysis of baseline versus actual dataAnalysis of past performanceAnalysis of project forecastsCurrent status of risks and issuesWork completed during the periodWork to be completed in the next periodSummary of changes approved in the period

Tools & Techniques


Control Communications

The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met.

148

Control Communications


Change Requests


PROJECT RISK MANAGEMENT

149


Project Risk Management

The processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project.

Increase opportunitiesDecrease threats

150

Risk may occur in the future.Issue is an occurred problem.Assumption may be false so there may be risks.

11.1 Plan Risk

Management11.2 Identify

Risks11.3 Perform Qualitative

Risk Analysis

11.4 Perform Quantitative Risk Analysis

11.5 Plan Risk

Responses11.6 Control

Risks



11.1. Plan Risk Management *

11.2. Identify Risks *

11.3. Perform Qualitative Risk Analysis *

11.4. Perform Quantitative Risk Analysis *

11.5. Plan Risk Responses *

11.6. Control Risks *

Risk Management Processes

151


Project Risks: Known or Unknown?

A project risk may be:Known (identified and analyzed)

Unknown (not identified or not analyzed)

152

Known Risks

Contingency Reserve

Unknown Risks

Management Reserve


The process of defining how to conduct risk management activities for a project.

Plan Risk Management

Plan Risk Management

Risk Management

Plan


How to perform project risk management processes?Procedures, Forms


Risk Management ProcessesBudgetingTimingRisk categoriesDefinitions of risk probability and impactProbability and impact matrixRevised stakeholders’ tolerancesReporting formatsTracking


Provide a means for grouping potential causes of risk.

Risk Categories (Risk Breakdown Structure (RBS))


Definitions of Risk Probability and Impact


Identify Risks

The process of determining which risks may affect the project and documenting their characteristics.

157

Identify Risks Risk Register


Documentation ReviewsPlans, assumptions, previous project files, agreements,…

Information Gathering TechniquesBrainstorming, Delphi Technique, Interviewing, Root cause analysis.

Checklist AnalysisBrainstorming, Delphi Technique, Interviewing

Assumptions Analysis

Diagramming TechniquesCause and effect diagrams

System or process flow charts

Influence diagrams

SWOT Analysis

Expert Judgment158

Tools & Techniques


Perform Qualitative Risk Analysis

The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.

159

Perform Qualitative

Risk Analysis

Project Documents

Updates


Risk Probability and Impact Assessment

Probability and Impact Matrix

Risk Data Quality Assessment

Risk Categorization

Risk Urgency Assessment

Expert Judgment

160

Tools & Techniques


Perform Quantitative Risk Analysis

The process of numerically analyzing the effect of identified risks on overall project objectives.

161

Perform QuantitativeRisk Analysis

Project Documents

Updates


Data Gathering and Representation Techniques

162

Probability distributionsInterviewing

Expert Judgment

Tools & Techniques


Quantitative Risk Analysis and Modeling TechniquesSensitivity analysis

163

Tools & Techniques


Quantitative Risk Analysis and Modeling TechniquesExpected monetary value analysis

164

Tools & Techniques


Quantitative Risk Analysis and Modeling TechniquesModeling and simulation

165

Tools & Techniques


Plan Risk Responses

The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.

166

Plan Risk Responses

Project Documents

Updates

Project Management Plan Updates


Strategies for Negative Risks or ThreatsAvoid, Transfer, Mitigate, and Accept.

Strategies for Positive Risks or OpportunitiesExploitEnhanceShareAccept

Contingent Response StrategiesExpert Judgment

167

Tools & Techniques


Control Risks

The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

168

Control Risks

Change requests



Risk ReassessmentVariance and Trend AnalysisReserve Analysis

169

Tools & Techniques


PROJECT PROCUREMENT MANAGEMENT

170


Project Procurement Management

171

The processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Procurement: Outsourcing products and/or services

Buyer Contract Seller

12.1 Plan Procurement Management

12.2 Conduct Procurements

12.3 Control Procurements

12.4 Close Procurements


Contract Types

172

Fixed-price contractsCost-reimbursable contractsTime and Material Contracts (T&M)


Plan Procurement Management is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Plan Procurement Management

Procurement Management Plan

Plan Communications

Management

Procurement Statement of Work

Procurement Documents

Source Selection Criteria

Make-or-Buy Decisions

Change Requests

Request for proposal (RFP),…


How to perform project Procurement Managementprocesses?



Handling the make-or-buyTypes of contractsStandardized procurement documentsConstraints and assumptionsIdentifying prequalified sellersProcurement metricsTendering process …


Procurement Statement of WorkSOW: Portion of the project scope

175

The statements of work may include, but are not limited to:

SpecificationsQuantityQualityPerformance dataPeriod of performanceWork location


The process of obtaining seller responses, selecting a seller, and awarding a contract.

Conduct Procurements

Selected Sellers

Conduct Procurements

Agreements

Resource Calendars

Change Requests


Bidder conferenceProposal evaluation techniquesIndependent estimatesExpert judgmentAdvertisingAnalytical techniquesProcurement negotiations

Tools and Techniques


Agreements

Agreement: Understanding, Contract, Subcontract, Purchase order

Statement of work or deliverables,Schedule baselinePerformance reportingPeriod of performanceRoles and responsibilitiesPricingPayment termsPlace of deliveryInspection and acceptance criteria

178


Agreements

Agreement:WarrantyProduct supportPenaltiesIncentivesInsurance and performance bondsSubordinate subcontractor approvalsChange request handlingTermination clause and alternative dispute resolution (ADR) mechanisms. The ADR method can be decided in advance as a part of the procurement award.

179


The process of managing procurement relationships, monitoring contract performance, and making changes and corrections to contracts as appropriate.

Control Procurements

Work Performance Information

Control Procurements

Change Requests


Contract change control systemProcurement performance reviewsInspections and auditsPerformance reportingPayment systemsClaims administrationRecords management system



The process of completing each procurement.

Close Procurements

Closed Procurements

Close Procurements

Organizational Process Assets Updates


Procurement auditsProcurement negotiationsRecords management system



PROJECT STAKEHOLDER MANAGEMENT

184


PROJECT STAKEHOLDER MANAGEMENT

185

13.1 Identify Stakeholders

13.2 Plan Stakeholder Management

13.3 Manage Stakeholder Engagement

13.4 Control Stakeholder Engagement

The processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.


The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project, analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success..

Identify Stakeholders

Stakeholder RegisterIdentify Stakeholders


Stakeholder analysisExpert judgmentMeetings



The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.

Plan Stakeholder Management

Stakeholder Management Plan

Plan Stakeholder Management


Expert judgmentMeetingsAnalytical techniques



The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.

Manage Stakeholder Engagement

Issue Log

Manage Stakeholder Engagement

Change Requests


Communication methodsInterpersonal skillsManagement skills



The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.

Control Stakeholder Engagement


Control Stakeholder Engagement

Change Requests


Information management systemsExpert judgmentMeetings
