PMP Lecture 7

7/25/2019 PMP Lecture 7

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AUC TechnologiesConsulting | Development | Mentoring | Training

Project Management With PMP Exam Preparation


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Agenda

Plan Quality

Plan Communications

Plan Procurement


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Objectives

Explain Quality and its related definitions

Differentiate Quality and grade

Understand quality planning process

Understand and differentiate cost of quality

Able to create Quality Management plan

Understand Communication Requirements

Develop Scope of work from Procurement perspective


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Project Quality Management

Quality management includes creating and following

policies and procedures to ensure that a project meets the

defined needs that it was intended to meet.

This can also mean the same thing as completing the

project with no deviations from the project requirements


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Project Quality Management - Importance

Customer Satisfaction

Prevention over Inspection

Management Responsibility

Continuous Improvement


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Quality - Definitions

The degree to which a set of inherent characteristics fulfils

requirements (ISO9000:2000)

Fitness for use - is the product or service capable of being

used (Dr. Joseph Juran)

Conformance to requirements - Does the product or service

conform to the requirements( Dr. Phillip Crosby)

Continuous Process Improvement - must be continuously

improved in order to meet customer needs (Dr. Edward

Deming)


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Quality Management - Definitions

Gold Plating: refers to giving the customer extras (e.g. extra

functionality, higher quality components, extra scope, or

better performance).

This practice is not recommended, as gold plating adds novalue to the project.

Grade: Quality and Grade are not the same thing. Grade is a

category assigned to products or services that have same

functional use but different technical characteristics.

Low quality is always a problem, low grade may not be.


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Plan Quality

It is one of the key processes in the Planning Process Group

and during development of the Project Management Plan.

Quality Planning should be performed in parallel with other

project planning processes.

Qual i ty Planning involves ident i fy ing which qual i ty

standards are relevant to th e pro ject and determ in ing how

to sat is fy them


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Plan Quality

Input

Tools

1. Scope baseline2. Stakeholder register

3. Cost performance

baseline

4. Schedule baseline

5. Risk register

6. Enterprise

environmental factors

7. Organizational processassets Output

1. Cost-benefit analysis

2. Cost of quality

3. Control charts4. Benchmarking

5. Design of experiments

6. Statistical sampling

7. Flowcharting

8. Proprietary quality

management

methodologies

9. Additional qualityplanning tools

1. Quality

management plan

2. Quality metrics3. Quality checklists

4. Process

improvement plan

5. Project document

updates


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Plan Quality - Inputs

Enterprise Environmental Factors

Governmental agency regulations, rules, standards, and

guidelines specific to the application area may affect the

project.

Organizational Process Assets

Organizational quality policies

Procedures and guidelines

Historical databases

Lessons-learned knowledge base


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Plan Quality Tools & Techniques

Cost-Benefit Analysis

Consider Cost-Benefit tradeoffs.

Primary Benefits to considerless rework, higherproductivity, lower costs, increased customer satisfaction.

Primary Costs to considerexpense associated withProject Quality Management Activities.

Benchmarking

Comparing with other projects to

Generate ideas of improvement

Provides basis to measure performance


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Plan Quality Tools & Techniques

Design of Experiments

Statistical method (e.g., try various combinations ofsuspension and tires to determine which combinationprovides most desirable ride)

Helps in optimization of product and processes

Cost of Quality is the cost incurred in Defect prevention

Audits Rework

Additional Quality Planning Tools

Like brainstorming, flow charts


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Cost Of Quality - Cost Of Conformance

Prevention Cost

Design reviews

Training and indoctrination

Vendor, supplier, and subcontractor surveys

Appraisal Cost

Product inspections

Lab test

Vendor Controls

Internal/External design reviews


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Cost Of Quality - Cost Of Non Conformance

Internal failure costs

Scrap/ Rework / repair

Down time

Defect evaluation

Corrective actions

External failure costs

Customer returns/ complaints / inspections

Customer visits to resolve quality complaing

Corrective actions


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Plan Quality - Output

Quality Management Plan is a subsidiary plan of the project

management plan.

Formal or informal. Highly detailed or broadly framed

Describes how the project management team will

implement the performing organizations quality processes.

Must address (Quality control, Quality Assurance, and

Continuous process improvement)

Quality metrics includes Defect density -Failure rate

Availability -Reliability

Test coverage


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Quality Planning - Output

Quality Checklist

Process Improvement Plan

Is a subsidiary of the project management plan.

Facilitates identification of waste and non-value addedactivities thus increasing customer value.

Quality Baseline

Records the quality objectives of the project.

Is the basis for measuring and reporting quality

performance part of performance measurement baseline.

Project Document Updates


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Communication Management Methodology

Communication Planning

Governance Definition

Issue and Action Item Tracking

Dispute Resolution

Escalation Process

Problem/Defect Tracking

Status Reporting

Performance Review Presentations


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Communication Model

Key Component of Model

Three basic elements of interpersonalcommunication:

The sender (or encoder) of the message.

The signal or the message. The receiver (or decoder) of the message.


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Plan Communication

Determine information and communication needs of the

stakeholders

Who needs what information?

When will they need it?

Who needs to send the information?

How will it be given to them?

Determ in ing the informat ion and communicat ion needs of

the pro ject stakeholders


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Plan Communication

1. Stakeholder

register

2. Stakeholdermanagement

strategy

3. Enterprise

environmental

factors

4. Organizationalprocess assets

1. Communications

Requirementsanalysis

2. Communication

technology

3. Communication

Models

4. Communication

Methods

1. Communication

Management Plan

Input

Output

Tools


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Plan Communication- Tools

Communications Requirements Analysis

Information required to determine requirements

Organization charts

Project organization and stakeholder responsibility relationship

Disciplines, departments and specialties involved in the project

Logistics

Internal information needs

External information needs

Stakeholder information


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Plan Communications - Tools

Communications Technology

Urgency for the needs of information

Availability of technology Expected project staffing

Length of the project

Project environment


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Communications Planning - Output

Communications Management Plan

The Communication Management Plan provides a consistent

method for formal communication planning and management.The Communication Management Plan identifies project

stakeholders and the information that is to be exchanged

between the project team and stakeholders


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Communications Management Plan Template

AudienceVehicle of

CommunicationFrequency Medium

Sponsor Status

At the end

of

training

Mail

Source Delivered by SensitivitiesDate

Delivered

Expected

Result

Trainer

Feed Back

Project

Manager

Decision of

PMP

Application14May2008

shortlist

candidates


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Procurement Management

Project Procurement Management involves the processes to

purchase or acquire the products, services or results needed

from outside the project team necessary for meeting the

needs of the project scope

This includes material, equipment, consultants, training and

many other goods or services


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Procurement Perspectives

Organization can be either the buyer or seller of the product,

services or result under a contract. It includes

Contract Management and Change Control Processes

to administer contracts or purchase orders issued by

authorized team members

Administering Contractual obligations placed on the

project team by the contract issued by an outside

organization(Buyer)


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Plan Contracting

Process involves consideration of How, What, How Much and

When to acquire

Includes reviewing the risks involved in each Make-or-Buy

decision and type of contract planned to be used for

mitigating the risks

Ident i f ies wh ich p ro ject needs can be met by purch asing

and acqu ir ing p rodu ct , serv ices, or resul ts o uts ide the

pro ject org anizat ion


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Plan Contracting

1. Scope baseline

2. Requirements

documentation

3. Teaming agreements

4. Risk register

5. Risk-related contactdecisions

6. Activity resource

requirements

7. Project schedule

8. Activity cost estimates

9. Cost performance

baseline10. Enterprise

environmental factors

11. Organizational process

assets

1. Make Or BuyAnalysis

2. Expert

Judgment

3. Contract Types

1. Procurement

management plan

2. Procurementstatements of work

3. Make-or-buy

decisions

4. Procurement

documents

5. Source selection

criteria

6. Change requests

Input Output

Tools


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Tools and Techniques

Make-or-buy analysis: general management technique used

to determine whether an organization should make or perform

a particular product or service inside the organization or buy

from someone else

Often involves financial analysis

Experts, both internal and external, can provide valuable

inputs in procurement decisions


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Make-or Buy Example

Assume you can lease an item you need for a project for

$800/day. To purchase the item, the cost is $12,000 plus a

daily operational cost of $400/day

How long will it take for the purchase cost to be the same

as the lease?


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Types of Contracts

Fixed price or lump sum: involve a fixed total price for a

well-defined product or service

Cost reimbursable: involve payment to the seller for direct

and indirect costs

Time and material contracts: hybrid of both fixed price and

cost reimbursable, often used by consultants

Unit price contracts: require the buyer to pay the seller a

predetermined amount per unit of service


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Cost Reimbursable Contracts

Cost plus incentive fee (CPIF): the buyer pays the supplier for

allowable performance costs plus a predetermined fee and an

incentive bonus

Cost plus fixed fee (CPFF): the buyer pays the supplier for

allowable performance costs plus a fixed fee payment usually

based on a percentage of estimated costs

Cost plus percentage of costs (CPPC): the buyer pays the

supplier for allowable performance costs plus a

predetermined percentage based on total costs


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Plan Contracting Output

Procurement Management Plandescribes how procurement

processes will be managed from developing procurement

documentation through contract closure.

It can be formal/informal; detailed/broadly framed based on project

requirementProcurement Management Plan can include

Types of contract , independent estimates

Standardized procurement documents

Managing multiple providers and coordination with procurement

Performance bonds or insurance contracts

Procurement metrics to be used to manage contracts & evaluate

sellers


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Plan Contracting - Output

A statement of work is a description of the work required for

the procurement

If a SOW is used as part of a contract to describe only the

work required for that particular contract, it is called a contract

statement of work

A SOW is a type of scope statement

A good SOW gives bidders a better understanding of the

buyers expectations


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Questions

Documents

PMP Lecture 7