PMP Resumen (Por RDCL)

7/29/2019 PMP Resumen (Por RDCL)

1/64

Introduction [Project Management Framework]

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

Example: Building a road is an example of a project. The process of building a road takes a finite amount of

time, and produces a unique product Second Definition:

A project is a complex, nonroutine, one time effort limited by time, budget resources, and

performance specifications designed to meet customer needs.

What is Not a Project?

Projects should not be confused with everyday work. A project is not routine, repetitive work. Ordinary daily

work typically requires doing the same or similar work over and over, while a project is done only once; a

new service or a new product exists when the project is completed.

Routine, Repetitive Work[Operations] Projects

Taking class Notes

daily entering sales receipts into the

accounting ledger

Responding to a supply-chain request

Practicing scales on the piano

Routine manufacture of an Apple iPod

Writing a term paper Setting up a sales kiosk for a professional accounting

meting

Developing a supply chain information system Writing a new piano piece Designing an iPod that is approximately 2*4 inches,

interfaces with PD and stores 10,000 songs

They share many of the following characteristics

Performed by people Constrained by limited resources Planned, executed, and controlled

Projects and operations differ primarily in that operations are ongoing and repetitive, while

projects are temporary and unique

Project Objectives

Project objectives are contained in the preliminary Project Scope Statement and Project ScopeStatement.

Projects are considered complete when the objectives have been met A reason for terminating a project before completion is that the project objectives cannot be met A more complete understanding of the objectives is achieved over the length of the project. It is the project manager's role to accomplish the project objectives. Objectives should be clear and achievable. The Reason for quality activities is to make sure that project meets its objectives.


2/64

The Reason for the risk process group is to enhance opportunities and reduce threats to the projectobjectives.

Things that could negatively impact the project objectives, such as risk and stakeholders' influenceshould be watched and tracked.

Projects often require tradeoffs between the project requirements and the projects objectives. Project objectives are determined in the initiating process group and refined in the planning process

group.

One of the purposes of the develop project management plan process is to determine how work willbe accomplished to meet project objectives.

A Project management is the application of knowledge, skills, tools and techniques to project activities to

meet project requirements

Managing a project includes

Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality, scope, time and cost Adapting the specifications, plans, and approach to the different concern and expectations of the

various stakeholders.

A Program is a group of related projects managed in a coordinated way to obtain benefits and control not

available from managing them individually. Programs may include elements of related work outside of the

scope of the discrete projects in the program

Triple Constraints - A Balance Project

The triple constraints are cost, time, scope of work, quality and customer satisfaction.

These are so intertwined that a change in one will most often cause a change in at least

one of the others , For example:

If time is extended, the cost of the project will increase. If time extended with the same cost then quality of the product will reduce. If scope is extended then cost and time will also extend. Changes to any of these lesgs sets off a series of activities that are needed to integrate the change

across the project.

Progressive Elaboration

Progressively means proceeding in steps; continuing steadily by increments, while elaborated means

worked out with care and detail; developed thoroughly


3/64

International and political environment

Some team members may need to be familiar with applicable international, national, regional, and local laws

and customs, as well as the political climate that could affect the project. Other international factors to

consider are time-zone differences, national and regional holidays, travel requirements for face-to-face

meetings, and the logistics of teleconferencing.

Cultural and social environment

The team needs to understand how the project affects people and how people affect the project. This

Includes

understanding of aspects of the economic, demographic, educational, ethical, ethnic, religious, And other characteristics of the people whom the project affects or who may have an interest in the

project.

The project manager should also examine the organizational culture and determine whether project

management is recognized as a valid role with accountability and authority for managing the project

Physical environment

If the project will affect its physical surroundings, some team members should be knowledgeable about the

local ecology and physical geography that could affect the project or be affected by the project

Interpersonal Skills (PMBOK Appendix G)

Leadership. Developing a vision and strategy, and motivating people to achieve that vision and strategy

Team Building. Helping a group of individuals bound by a commonsense of purpose to work

interdependently with each other.

Motivation. Energizing people to achieve high levels of performance and to overcome barriers to change

Communication The exchange of information

Influencing the organization. The ability to 'get things done'.

Decision Making. The combination of problem definition, alternatives identification and analysis, and

solution action and evaluation.

Political and Cultural Awareness. Getting to know political and cultural environment.

Negotiation and conflict management. Conferring with others to come to terms with them or to reach an

agreement


4/64

A standard is a 'document established by consensus and approved by a recognized body that provides, for

common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the

achievement of the optimum degree of order in a given context.' Some examples of standards are computer

disk sizes and the thermal stability specifications of hydraulic fluids

A regulation is a government-imposed requirement, which specifies product, process or service

characteristics, including the applicable administrative provisions, with which compliance is mandatory.

Building codes are an example of regulations

Project Management Office [PMO]

A project management office (PMO) is an organizational unit to centralize and coordinate the management of

projects under its domain

Portfolio

Collection of Projects, Programs and other work grouped together to facilitate effective management to meet

strategic objectives.

Project Expeditor

Staff Assistant and Communication coordinator. No Power to make decisions

Project Coordinator

Some authority, power and reports to higher-level manager


5/64

Project Life Cycle and Organization

Project life cycle - Organizations performing projects will usually divide each project into several project

phases to improve management control. Collectively, the project phases are known as the project life cycle.

Usually they are sequential.

Project Life Cycle Define

What technical work to do in each phase When the deliverables are to be generated, how they are reviewed, verified & validated. Who is involved in each phase How to control and approve each phase

Project Phase

Each project phase is marked by completion of one or more deliverables. A deliverable is a tangible,

verifiable work product. The conclusion of a project phase is generally marked by a review of both keydeliverables and project performance to date, to a) determine if the project should continue into its next

phase and b) detect and correct errors cost effectively. These phase-end reviews are often called phase

exits, stage gates, or kill points. Practice of overlapping phases is often called fast tracking.

Cost and staffing

levels are low at the start, higher towards end, and drop rapidly as the project draws to a conclusion.

Completion

The probability of successful completion generally gets progressively higher as the project continues.

Stakeholder Influence

On the final characteristics of the projects product and the final cost of the project is highest at the start and

gets progressively lower as the project continues.Risk

Uncertainty and hence risk of failing is high at the beginning and get progressively lesser/better as project

continues

Key stakeholders

pm, customer (buy/use), org, team & sponsor (pays), Project Management team, PMO Differences - In

general, differences between or among stakeholders should be resolved in favor of the customer.

Managing

is primarily concerned with consistently producing key results expected by stakeholders,Leading

Establishing direction vision of the future and strategies, Aligning people to vision, Motivating and inspiring.

Problem definition

Requires distinguishing between causes and symptoms. Problems may be internal (a key employee is

reassigned to another project) or external (a permit required to begin work is delayed). Problems may be

technical (differences of opinion about the best way to design a product), managerial (a functional group is


6/64

not producing according to plan), or interpersonal (personality or style clashes).

Organizational Structure Influence on Projects

Functional Weak Matrix Balanced Matrix Strong Matrix Projectized

PM authority Little or None Limited Low to Moderate Moderate to High High to Total

Resource Availability Little or None Limited Low to Moderate Moderate to High High to Total

Project Budget Functional Mngr Functional Mngr Mixed PM PM

PM Role Part Time Part Time Full Time Full Time Full Time

Administrative Staff Part Time Part Time Full Time Full Time Full Time

PMO

Can exist in any kind of organization including the functional organization

Planning

Planning is the only PM Process group that has a specific order of activities

Release Resources

Is the Last activity in the closing process group.

Iterations

Start after Risk management because only after this final cost and schedule can be determined

Functional Organization

Advantages Disadvantages

Easier management of specialists People place more emphasis on their functionalspecialty to the detriment of project

Team members report to only one supervisor No career path in project management

Similar resources are centralized PM has little/no authorityProjectized Organization


Efficient project organization No home when project is completed

Loyalty to the project Lack or professionalism in disciplines

More effective communications than functional Duplication of facilities and job functions

Less efficient use or resources

Matrix Organization


Highly visible project objectives Extra administration required

Improved PM control over resources More than one boss for project teams

More support from functional areas More complex to monitor and control

Maximum utilization of scarce resources Tougher problems with resource allocation

Better coordination Need extensive policies and procedures

Better horizontal and vertical dissemination ofinformation

Functional managers may have different prioritiesthan project managers

Team members maintain a home Higher potential for conflict


7/64

Project MANAGEMENT Processes for a project

Pick Process

Project Manager along with team is responsible for picking what processes are appropriate

Concept of interaction among PM processes

(By Shewhart & Deming) PLAN DO CHECK ACT

Monitoring & Control

Group not only monitors and controls the work being done within a process group but also monitors andcontrols the entire project effort

Process

is a series of actions bringing about a result

Process Group

Are not project phases. Process groups are usually repeated for each phase/sub project.

Initiating Process

Are often done external to the projects scope of control

Project Charter

Approval and funding are handled external to the project boundaries. Charter is primarily concerned withauthorizing the project /phase. It links project to the ongoing work of the organization.

Rolling Wave Planning

Progressive detailing of the project management plan is called rolling wave planning, indicating plan is aninteractive and ongoing process.

Executing Process Group

Majority of the project budget will be spent in performing Executing process group.

Integrated Change Control

Is performed throughout the project, from project initiation thru Project closure.

Core processes

Are Performed in same order & may be iterated several times during any one phase

Facilitating processes

Performed intermittently and as needed during project planning, they are not Optional.


8/64

Project INTEGRATION Management

Knowledge

Areas

Major Processes

desc.Primary Inputs

Tools &

TechniquesPrimary Outputs

Integration

Develop Project

Charter

Developing the project

charter that formally

authorizes a project or

a project phase

1. Project Statement

of Work

2. Business Case

3. Contract

4. Enterprise

environmental factors

5. Organizational

Process Assets

1. Expert

Judgment

1. Project Charter

Develop Project

Management

Plan

Documenting the

actions necessary to

define, prepare,

integrate and

coordinate all

subsidiary plans into a

project management

plan.

1. Project Charter

2. Outputs from

planning process

3. Enterprise

Environmental Factors

4. Organizational

Process Assets

1. Expert

Judgment

1. Project

Management Plan

Direct and

Manage Project

Execution

Performing the work

defined in the project

management plan to

achieve the projects

objectives.

1. Project

Management Plan

2. Approved Change

Requests

3. Enterprise


4. Organizational

Process Assets

1. Expert

Judgment

2. PMIS

1. Deliverables

2. Work Performance

Information

3. Change Requests

4. Project

management plan

updates

5. Project document

updates


9/64

Monitor and

Control Project

Work

Tracking, reviewing and

regulating the progress

to meet the

performance objectives

defined in the project

management plan

1. Project

Management Plan

2. Performance

reports

3. Enterprise


4. Organizational

Process Assets

1. Expert

Judgment

1. Change Requests

2. Project

Management Plan

Updates

3. Project Document

Updates

Perform

Integrated

Change Control

Reviewing all change

requests, approving

changes, and managing

changes to the

deliverables,

organizational process

assets, project

documents and the

project management

plan.

1. Project

Management Plan

2. Work Performance

Information

3. Change Requests

4. Enterprise


5. Organizational

Process Assets

1. Expert

Judgment

2. Change

Control Meetings

1. Change Request

status updates

2. Project

Management Plan

updates

3. Project Document

updates

Close Project

or Phase

Finalizing all activities

across all of the Project

Management Process

Groups to formally

close the project or a

project phase.

1. Project

Management Plan

2. Accepted

Deliverables

3. Organizational

Process Assets

1. Expert

Judgment1. Final Product,

Service or result

4. Organizational

Process Assets

updates

Integration Management

Identification, Definition, Combination, Unification, and Coordination of the various processes and project

management activities within the Project Management Processes Groups. Integration is about making

choices, about where to concentrate resources and effort. It also involves making tradeoffs among competing

objectives and alternatives. PM and team must address every process and level of implementation for

process

Project Deliverables

Need to be integrated with ongoing operations.

Reasons to start projects

1. Problems 2. Market Opportunity 3.Business Requirements

Project Charter

1. Authorize project


10/64

2. Gives Project Manager Authority

3. Issued by initiator or sponsor external to project organization who has the authority to fund.

4. It is broad enough that it does not have to change as the project changes

Project Charter Contain

1. Requirements that specify Customer/Sponsor Needs, wants and expectations

2.Business Needs

3.Project purpose or justification

4. Assigned PM authority 5.Stakeholder influence

6.Functional organization participation

7.Assumptions & Constraints

8.Business case and return on investment

9.Summary Budget

Enterprise Environmental Factors

Company Culture & Structure, Government or industry standards, infrastructure, existing human resources,

personal administration (Hire, Fire, performance), work authorization, Marketplace condition, Stakeholder

risk tolerance, Commercial database, PMIS (existing sysetms) that the project will have to deal with or can

use of.

Organizational Process Assets

Existing Process, Standards, Policies, Standard Product and Project Life Cycles, Quality policies & procedure,

performance measurement criteria, Templates, Communication requirements, Project Closure Guidelines,

Risk Control procedure, Issue and Defect Management Procedure, Change Control Procedure, Procedure for

Approving & issuing work authorization. It also include Process Measurement database, project files,

Historical information & Lessons learned, Configuration management database, financial database containing

labor hours, costs & budgets

Project Selection Methods

1.Benefit Measurement Methods (Comparative Approach)

1. Scoring Models


11/64

2. Benefit Contributions

3. Murder board Panel of people who try to shoot down a new project idea.

4. Peer Review

5. Economic Models

1. Benefit Cost Ratio

2. Cash Flow

3.Internal Return Rate

4. Preset Value (PV) and net present value (NPV)

5.Opportunity Cost

6. Discounted Cash Flow

7. Return On Investment

2.Constrained Optimization Methods (Mathematical Models)

1. Linear 2. Nonlinear 3. Dynamic 4. Integer 5. Multiple Objective Programming

Project Management Plan

It defines how project is executed, monitored and controlled and Closed. PMP can be either summary level or

detailed and can be composed of one or more subsidiary plans and other components. It contains following

management plans 1. Change, 2. Communications, 3. Configuration, 4. Cost, 5. Cost Performance

Baseline, 6.Human resources, 7. Process Improvement, 8. Procurement, 9. Quality, 10.

Requirements, 11. Risk, 12. Schedule Baseline, 13. Schedule, 14.Scope Baseline, 15. Scope.

Configuration Management

It is a sub system of overall project management information system. It is a means of monitoring and

controlling emerging project scope against the scope baseline; its purpose is to manage control changes

to the deliverables and the resulting documentation, including which organizational tools will be

used. It is any documented procedures used to apply technical and administrative direction and surveillance

to audit the items and system to verify conformance requirements. . It documents the physical

characteristics of formal project documents and steps required to control changes to them (e.g. would be


12/64

used by a customer who wishes to expand the project scope after the performance measurement baseline

has been established). When more than one individual has sign a Charter, you have to be concerned with

competing needs and requirements impacting your efforts on configuration management

Configuration Management Activities

1.Configuration Identification 2.Configuration Status Accounting 3.Configuration Verification and auditing

Change Control System

It is a collection of formal documented procedures that define how project deliverables and documentation

are controlled, changed and approved. It is a subsystem of configuration management. It must also include

procedures to handle changes that may be approved without prior review (e.g. result of an emergency)

Integrated Change Control

It is performed from project inception through completion, it includes

Influencing the factors about change control so that only approved changes are implemented Reviewing, analyzing and approving change requests promptly. Managing approved changes as and when they occur and regulating them Maintain integrity of baseline Review and approve all recommended corrective and preventive actions Coordinating changes across the entire project Documenting the complete impact of requested changes

Process for Making Changes

1. Prevent the root causes of changes (proactively eliminate need of changes)2. Identify change (coming from measuring from performance baseline, sponsor, team, management,

customer, etc.). PM should be looking for changes proactively).

3. Look for the Impact of the change to the project4. Create a change request (to product scope, project management plan, baseline, etc.)5. Perform Integrated Change control ( a) Assess the change, b) look for options, c) change is

approved or rejected, d)Update status of the change in change control system ).

6. Adjust project management plan, project documents, and baselines.7.

Manage stakeholders expectations communicating changes to stakeholders affected

8. Manage the project to the revised project management plan and project documentsIntegrated change Control

Occurs during all the project management processes.

Project Baseline

Should be changed for all implemented changes. Sometimes, certain classification of changes gets automatic

approval on a project and do not need Change Control Board approval.


13/64

Project Plan

as an input to team development, the project plan describes the technical context within which the team

operates

Project Execution

Although the products, services or results of the project are frequently in the form of tangible deliverablessuch as building, road or software, intangible deliverables such as training is also provided.

Schedule Change Control System

Can include the paper, systems and approvals for authorizing changes. The project manager is normally not

the approval authority, and not all the changes approved

Organization Process Assets

Includes an index & location of project documentation

Formal Acceptance Documentation Project Files Closure Documents Historical information

Difference between Configuration Management and Change Management systems

Both the Configuration Management and Change Management systems are sub systems of the ICC.

They are to be understood as: Configuration Management System - Relates to maintaining the changes to

the product of the project. Change Control System - Relates to maintaing the changes to the Project itself.

Take a small example. Your project is to design a latest design washing machine. You have 2 things here. 1-

is a Project whose objective is to design the washing machine 2- is a Product of the project - which is the

washing machine itself. All the characteristics of the Washing Machie viz., height, capacity, drum diameter,

motor speed, color etc are called configuration of the product. This is maintained in the Configuration

Management Database. Any change to this configuration will be managed through the Configuration

Management System.(CMS) On the other hand, there will be plans for controlling scope, cost , time and

quality in the project. Any change in these constraints would be managed through the Change Control

System (CCS). Hope this helps.

Process Improvement Plan

Is an effort made by PM to improve processes attached to a project, which results in completing the work

faster, cheaper and with higher quality.


14/64

Project SCOPE Management

Knowledge AreasMajor Processes

desc.Primary Inputs Tools & Techniques Primary Outputs

SCOPE

Collect

Requirements

Defining and

documenting

stakeholders needs

to meet the project

objectives.1. Project charter

2.Stakeholder

Register

1. Interviews

2. focus Groups

3. Facilitated

workshops

4. Group creativity

techniques

5. Group decision

making techniques

6. Questionnaires

and surveys

7. Observations

8. Prototypes

1. Requirements

Documentation

2. Requirements

Management Plan

3. Requirements

Traceability Matrix

Define Scope

Developing a detailed

description of the

project and product.

1. Project charter

2. Requirements

Documentation

3. Organizational

Process Assets

1. Expert Judgment

2. Product analysis

3. Alternatives

Identification

4. Facilitated

workshops

1. Project Scope

Statement

2. Project Document

Updates

Create WBS

Subdividing project

deliverables and

project work into

smaller more

manageable

components

1. Project Scope

Statement

2. Requirements

documentation

3. Organizational

Process Assets

1. Decomposition1. Work Breakdown

Structure (WBS)

2. Scope baseline

3. WBS dictionary

4. Project Document

Updates

Verify Scope

Formalizingacceptance of thecompleted projectdeliverables.

1. ProjectManagement Plan2. RequirementsDocumentation3. RequirementsTraceability Matrix4. ValidatedDeliverables

1. Inspection1. Accepteddeliverables2. Change requests3. Project Documentupdates

Monitoring the status 1. Project 1. Variance analysis 1. Work Performance


15/64

Control Scopeof the project and

product scope and

managing changes to

the scope baseline

management plan

2. Work Performance

information

3. Requirements

Documentation

4. Requirements

Traceability Matrix

5. Organizational

Process Assets

Measurements

2. Organizational

process assets updates

3. Change requests

4. Project

management plan

updates

5. Project document

updates

Scope Management Plan Project Scope

Provides guidance on how project scope will be defined, documented, verified, managed and controlled. This

planning effort is part of the Develop Project Management Plan, in the Integration process group.

Project Scope: the work that must be done in order to deliver a product; completion is measured against theproject plan. It includes meetings, reports, analysis and all the other parts of PM.

Product Scope: features and functions that are to be included in a product; completion is measured against

the Product requirements. It can be supplied as a result of a previous project to determine the requirements

Scope Management Process

1. Determine Requirements, making sure all of them support the business need as described on the charter.

2. Sort thru and balance needs of the stakeholders to determine product scope and project scope.

3. Create a WBS to break scope down to smaller more manageable pieces.

4. Verify that the scope of work planned is actually being done

5. Measure scope performance, and adjust as needed.

Requirements Documentation

How requirements meet business needs:

(Non)Functional reqs, Quality reqs, Acceptance criteria, Assumptions, Organizational Areas Impacted.

Signed by stakeholders.

Requirements Management Plan: Documents how requirements will be analyzed, documented, andmanaged throughout the project. Main parts are:

How reqs activities will be planned, tracked and reported Configuration management activities (how changes to product/service/result will be initiated, analyzed

for impacts, tracked, and reported, and authorization levels to approve changes) Reqs prioritization process Product metrics Traceability structure

Requirements Traceability Matrix: PM uses the RTM to keep track of all information and to analyzerequirements proposed. It takes a form of table with information like:

Identification numbers Source of each requirement


16/64

Who is assigned to manage the requirement (similar to risk owners) Status of requirement (including if its finished)

Rolling Wave Planning

The Project Management team usually waits until the deliverable or subproject is clarified so the details of theWBS can be developed. This is referred as rolling wave planning. So Work to be performed in the near futureis planned to the low level of the WBS, whereas work to be performed far into the future can be planned atthe relatively high level of the WBS.

WBS Dictionary

For each WBS Component, WBS dictionary includes a Code of Account Identifier, a description of work,

responsible organization, and a list of schedule milestones. Other information can be Contract information,

Quality requirements, acceptance criteria, and technical reference, among others.

Scope Baseline

Includes:

Approved project Scope statement WBS WBS dictionary

Verify Scope

Is the process of formalizing acceptance of the completed project deliverables. Includes reviewing deliverables

with the customer or sponsor to ensure that theyre completed satisfactory and obtaining formal acceptance of

deliverables. Differs from Quality Control in that Scope is concerned with acceptance of deliverables, while

Quality Control is concerned with correctness od the deliverables meeting quality requirements specified for

the deliverables.

Inspection

Are called Reviews, Product Reviews, Audits and Walkthroughs.Scope Creep

Uncontrolled changes are often referred as project scope creep

Variance Analysis

Project performance is measurements are used to assess the magnitude of variation. It includes finding the

cause of variation relative to the scope baseline.

Constraints

A constraint is an applicable restriction that will affect the performance of the project. For example, a

predefined budget is a constraint

Assumptions

Assumptions are factors that, for planning purposes, are considered to be true, real, or certain.

Decomposition

(1st level Project phases, 2nd level Deliverables (Break down till cost estimates can be done, verify

decomposition correctness) ) lowest level of the WBS may be referred to as work packages. Work not in the

WBS is outside the scope of the project.


17/64

Decomposing

subdividing project work packages into smaller, more manageable components (activities/action steps). The

heuristic (rule of thumb) used in project decomposition is 80 hours.

Stakeholder Management

the project manager must identify the stakeholders, determine their needs and expectations, then manageand influence expectations to ensure project success. Project success depends primarily on customer

satisfaction.

WBS

subdividing project deliverables into smaller, more manageable components. It is a deliverable-oriented

grouping of project elements that organizes and defines the total scope of the project. It is a communication

tool and it describes what needs to be done and what skills are required. Anything missing in the WBS should

be added. The 1st level should be the project life-cycle (not product). The WBS is created by the team (helps

to get buy-in) and it is used to make certain that all the work is covered. It provides a basis for estimating the

project and helps to organize the work. Its purpose is to include the total project scope of all the work that

must be done to complete the project. Defines the projects scope baseline.

WBS Dictionary

Defines each item in the WBS, including description of the work packages and other planning info such as

schedule dates, cost budgets and staff assignments. It helps reduce Scope Creep and increases

understanding. WBS dictionary can be used as a part of Work Authorization system to inform team members

of when their work package is going to start, schedule milestones and other info.

Scope Statement

Define and record Requirements. A documented description of the objectives, work content, deliverables, and

end product; it includes a description of project assumptions and constraints. Provides stakeholders with a

common understanding of the scope of the project and is a source of reference for making future project

decisions

Statement of Work

a narrative description of products or services to be supplied under contract.

Work Package

deliverable at the lowest level of WBS. They are control points in the WBS and are used for assignments to

work centers. They are used to pass a group of work for further breakdown in the executive organization.

Control Account

one level above the Work Package.

Assumptions

factors that, for planning purposes, are considered to be true, real or certain The principal sources of project

failure are organizational factors, poorly identified customer needs, inadequate specified project requirements,


18/64

and poor planning and control.


19/64


20/64

6. Enterprise


7. Organizational

Process Assets

5. Reserve Analysis

Develop

Schedule

Analyzing activitysequences, durations,

resource

requirements, and

schedule constraints

to create the project

schedule.

1. Activity list2. Activity Attributes

3. Project Schedule

network diagrams

4. Activity Resource

requirements

5. Resource Calendars

6. Activity duration

estimates

7. Project Scope

Statement

8. Enterprise


9. Organizational

process assets

1. ScheduleNetwork analysis

2. Critical path

method

3. Critical chain

method

4. Resource

leveling

5. What-if scenario

analysis

6. Appling leads

and lags

7. Schedule

Compression

8. Scheduling tool

1. Project schedule

2. Schedule

baseline

3. Schedule data

4. project

document updates

Control

Schedule

Monitoring the status

of the project to

update project

progress and manage

changes to schedule

baseline

1. Project management

plan

2. Project schedule

3. Work performance

information

4. Organizational

process assets

1. Performance

reviews

2. Variance analysis

3. Project

management

software

4. Resource

leveling

5. What-if scenario

analysis

6. Adjusting leads

and lags

7. Schedule

compression

8. scheduling tool

1. Work

performance

measurements

2. Organizational

process assets

updates

3. Change requests

4.Project

management plan

updates

5. Project

document updates


21/64

Project Time Management

processes required to ensure timely completion of the project

Activity Definition

defines activities that must take place to produce project deliverables

Activity

consumes time (eg testing

Events (or Milestones)

specified accomplishment / does not consume time (eg tested)

Time Management

In small projects Activity Definition, Sequencing, Resource Estimation, Duration Estimation and Schedule

development are so tightly linked that they are viewed as single process.

Schedule Management Plan

Is part of Develop Project Management Plan Process. SMP is a subsidiary plan of PMP and may formal or

informal, highly detailed or broadly framed depending on the project. Includes: 1) Scheduling methodology,

2)schedule baseline, 3)Identification of performance measures, 4) planning schedule variances management,

5)Identification of schedule change control procedures.

Decomposition(Tools and Techniques used in Activity Definition)

Involves sub dividing the Work Packages into smaller components called activities. Activity Definition output is

schedule activities not Deliverables (Create WBS output is Deliverables) Activity list, WBS and WBS dictionary

can be developed either sequentially or concurrently. Performed by team members responsible for the work

package.

Control Account

From management Perspective a control line is drawn in the WBS Hierarchy levels. All the Planning

components above this line belong to what is called the Control Account. All efforts performed within a control

account are documented in a control account plan.

Planning Package

It is a WBS Component below the control account but above the work package.

Activity List

Does not include any schedule activity that is not required as part of the project scope It includes a activity

identifier and scope of work description for each schedule activity in sufficient detail. It is used in schedule

model and is part of PMP(Project Management Plan) Discrete components of Project Schedule but are not

components of the WBS.

Activity Attributes

Contain Activity identifier, activity Code, Activity Description, Predecessor Activities, Successor activities,

logical relationships, leads and lags, resource requirements, imposed dates, constraints and assumptions.

Milestone

Can be mandatory or optional, it a component of PMP, included in SS and WBSD and used in schedule model.

PM can impose additional milestones.


22/64

Fragment Network

Portions of project schedule network diagram are often referred to as a Sub network or Fragment Network.

Sub Network templates are useful when project has several identical or nearly identical deliverables.

Lead and Lag

Lead allows acceleration of the successor activity, A lag direct a delay in Successor activity

Bottom Up Estimation

Estimation is done for lower level items and then aggregated.

Activity Resource Estimation

Identifies type and quantities of resources required for a schedule activity. These are aggregated to determine

the estimated resources for each work package

RBS (Resource Break Down Structure)

Output of Activity Resource Estimation process, it is a hierarchical structure of resources by category & type.

Tools and Techniques for Estimate Activity Duration

One Point Estimate One estimator submits one estimate per activity. It can made based on theexpert judgment.

Analogous Estimation Using actual duration of previous similar schedule activity. It is projectlevel, given to PM from Management or Sponsor; it is a form of Expert Judgment.

Parametric Estimation Quantity of Work * Productivity Rate - 1.Regression Analysis (ScatterDiagram) 2.Learning Curve. Results of Parametric Estimation can become heuristics.

Three Point Estimates Most Likely, Optimistic, Pessimistic. Reserve Analysis Reserve Analysis to have a reserve for accommodate the risks that remain in the project. These

reserves can be reduced after completion of Plan Risk Responses process. There are two types of

reserves: 1)Contingency (or buffers) for covering the Plan Risk Responses 2) Management Reserves

(to cover unforeseen risks).

Imposed Dates

Imposed dates in Scope Statement (I/P to Schedule Development Process) restrict the start or finish date.

Schedule Network Analysis (Tools abd Techniques for Schedule Development)

Critical Path Method Calculate Project Duration, Critical path length and Float. Critical path canhave 0 or negative total float.

Schedule Compression Crashing (Additional Resources) and Fast Tracking (Parallel) What-if Scenario Monte Carlo Analysis Resource Leveling Applied after Critical Path Method,

Keep resource usage at constant level

Critical Chain Method Uses Pessimistic resource availability, Adds duration buffers that are non


23/64


24/64

Finish-to-Start logical relationship Time estimates appear on arrow

Critical Path Method

(CPM)

Emphasis on controlling cost and leaving the schedule flexible One time estimate per activity Activity oriented; uses dummy; activity on arrow Time estimates appear on arrow

Precedence Diagram

Method (PDM)

Represents improvement to PERT and CPM by adding lag relationships toactivities

[Start to Start; Start to Finish; Finish to Start; Finish to Finish] Work is done during activity. Arrow indicates dependancy Activity on node; no dummy finish-to-start is the most commonly used type of logical

relationship. Start-to-finish relationships are rarely used

GERTA network diagram drawing method that allows loops between tasks. It is a method of

sequencing (e.g. a project requires redesign after completion of testing)

Dependencies

Mandatory or HardOften involve physical or technological limitations (based on the nature of work being

done)

Discretionary

may also be called preferred logic, preferential logic, or soft logic. Soft: desirable and customary (based on experience) Preferential: preferred or mandated by a customer (also, need of the project

sponsor)

Defined by PM Team

External Input needed from another project or source

Critical chain is a technique that modifies the project schedule to account for limited resources.

Monte Carlo Analysis

Computer simulation of project outcomes using PERT estimates; result represented in S curve. Provides the

ability to compute the probability of completing a project on a specific day. Can also be used to assess

feasibility of schedule under adverse conditions (eg when a schedule constraint is identified)

Heuristics - rules of thumb

Critical Path longest path (almost always have no float)

Near Critical Path Path is close in duration to critical path, the close it is the more RISK project has.


25/64

Variance - Plan minus Actual

Float / Slack

1.Free 2. Total 3. Project Float. Time an activity may be delayed from its early start without delaying the

project finish date. Difference between the required end date and the expected project completion date. A

negative slack on the critical path means that the project is behind schedule.

Free Float

Amount of time a task can be delayed without delaying the early start of its successor

Total Float

amount of time that an activity may be delayed from early start without delaying the project finish date

Lag waiting time between two tasks (negative lead)

Schedule Baseline

The original, approved project schedule; should never be changed without proper review and approval. Any

approved change should be documented in writing. Should be created at the beginning of the project and

used during the project to gauge (measure) overall project performance, not just schedule. The project

Performance Measurement Baseline should generally change only in response to a scope or deliverable

change. The project performance measurement baselines should generally change only in response to a scope

or deliverable change

Corrective action - in project time management primarily concerns expediting to ensure that activities

remain on schedule. Is anything done to bring expected future schedule performance in line with the project

plan.

Revisions are changes to the scheduled start and finish dates in the approved project schedule; generally

revised only in response to scope changes. Rebaselining may be needed to provide realistic data to measure

performance. Scheduling and allocating resources to multiple projects may affect schedule slippage and in-

process inventory.

Duration Compression Methods occurs after activity duration estimating and before finalizing the

schedule. Include crashing, fast track,

Crashing when you are worried about time, not so much about costs.

Fast Track resources in parallel, involve increase rework. Should fast track tasks on the critical path (float

= 0) in order to save time.

Resource Leveling often results in a project duration that is longer than the preliminary schedule.

Resource reallocation from non-critical to critical path activities is a common way to bring the schedule

back, or as close as possible, to the originally intended overall duration. So 1. Schedule Can Slip 2. Cost

increase


26/64

Finish to Finish - activities must finish on a specific sequence

Start no earlier than & Finish no later than Respectively #1 and #2 most popular date constraint in

project management software

Root Cause Analysis used to identify the cause of the variation

Variance analysis key element to time control. Float variance is an essential planning component for

evaluating project time performance

Revision category of schedule update that result in change to the projects scheduled start or finish dates.

New target schedule should be the usual mode of schedule revision.

Schedule Management Plan -defines how schedule changes will be managed; may be formal or informal.

Schedule Change Control System-defines procedures for changing the project schedule and includes the

documentation, tracking systems, and approval levels required for authorizing schedule changes.

Resource Planning Tools

Responsibility Matrix Identify who does what at what time/phase of the project

Resource SpreadsheetQuantifies how much work is needed from each resource during each time

period

Resource Gantt ChartIdentify the periods of time (e.g. calendar date) when a particular resource

is working on a particular task

Resource Histogram (Resource

Loading Chart)

Vertical bar chart showing the total number of resources needed during

each time period

Scheduling Tools

Networks (PERT, CPM, PDM) Interdependencies; how related

Barchart (Gantt)Effective progress reporting tool; no logical relationships shown between

activities

Milestone Chart Significant events; good for communicating status (used to track success)

Bar Chart (Grant Chart) 1. Weak Planning Tools 2. Good reporting tools 3. No Dependency Shown 4. No

Resources shown

Progress Report 50/50, 20/80, 0/100 An Activity is considered X percent complete when it begins

and gets credit of the last 100-X percent only when it is completed.


27/64

Project COST Management


desc.Primary Inputs Tools & Techniques

Primary

Outputs

Cost

Estimate

Costs

Developing an

approximation of the

monetary resources

needed to complete

project activities

1. Scope Baseline

2. Project Schedule

3. Human resource

Plan

4. Risk Register

5. Enterprise


6. Organizational

Process Assets

1. Expert Judgment

2. Analogous estimating

3. Parametric estimating

4. Bottom-up estimating

5. Three-point estimates

6. Reserve Analysis

7. Cost of quality

8. Project Management

Estimating Software

9. Vendor bid analysis

1. Activity

Cost estimates

2. Basis of

estimates

3. Project

Document

updates

Determine

Budget

Aggregating the

estimated costs of

individual activities or

work packages to

establish a cost

baseline (excludes

management

reserves).

1. Activity Cost

estimates

2. Basis of estimates

3. Scope baseline

4. Project Schedule

5. Resource Calendars

6. Contracts

7.Organizational

Process Assets

1. Cost aggregation

2. Reserve Analysis

3. Expert Judgment

4. Historical relationships

5. Funding Limit

reconciliation

1. Cost

performance

baseline

2. Project

funding

requirements

3. Project

Document

updates

Control

Costs

Monitoring the status

of the project to

update the project

budget and managing

changes to the cost

baseline. (influencing

the factors that create

changes to the

authorized cost

baseline)

1. Project management

plan

2. Project funding

requirements

3. Work performance

information

5. Organizational

process assets

1. Earned Value

Management

2. Forecasting

3. To-complete

performance index

4. Performance Reviews

5. Variance Analysis

6. Project Management

software

1. Work

performance

measurements

2. Budget

forecasts

3.

Organizational

process assets

updates

4. Change

requests

5. Project

management


28/64

Plan updates

6. Project

Document

Updates

Estimate Costs

Developing and approximation (estimate) of the costs of the resources needed to complete project activities.Determine Budgeting

Allocating the overall cost estimate to individual work activities.

Control Cost

Controlling changes to the project budget.

Life Cycle Costing

Broader view of Project Cost Management, which includes cost of resources needed to complete schedule

activities along with effect of decisions on cost of using, maintaining & supporting the product, service or

result of the project.

Cost Management Plan

It is created as part of the Develop Project Management Plan process. It can establish:

1)Specifications for how estimates should be stated 2)Level of accuracy for estimates 3)Reporting formats 4) Rules for measuring cost performance 4)Whether costs will include both direct costs and indirect costs 5) Control thresholds.

Accuracy of Estimates

ROM (Rough Order of Magnitude): Accuracy of project estimate, done at initiating process.Project at initial stages can have ROM in the range of+/50% from actual later it will narrow to a

range of10 to +15%.

Budget Estimate: Usually made during the planning phase, in the range of -10 to +25 % fromactual.

Definitive Estimate:Estimate will become more refined later on the project. Its used whether +/-10%, or -5 to +10%.

Contingency Reserve

1.Project (known Unknowns) Part of Cost Baseline 2.Management (Unknown Unknowns) Part of Cost

Budget

Chart of Accounts

A chart of accounts describes the coding structure used by the performing organization to report financial

information in its general ledger

Analogous estimating

also called top-down estimating, means using the actual cost of a previous, similar project Parametric

modeling - mathematical model to predict project costs - per square foot of living space


29/64

Parametric Estimation

It uses statistical relationship between historical data and other variables to calculate cost estimate. It can

produce higher levels of accuracy depending on sophistication, resource quantity and cost data.

Bottom-up estimating

the cost of individual activities or work packages rolled up to get the estimate for whole component.

Determine Budget

Cost baseline: Is a time-phased budget that will be used to measure and monitor cost performance on the

project. It is shown as an S curve.

Control Account: Represent the basic level at which project performance is measured and reported. The

purpose of cost accounts is to monitor and report on project performance.

Contingency Reserves: Address the cost impacts of the risks remaining during risk response planning.

Management Reserves: Extra funds to be set aside to cover unforeseen risks or changes to the project.

Funding Limit Reconciliation

Customer will set limits on disbursement of funds for the project. Funding Limit Reconciliation (TT of Cost

Budgeting) will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures.

It is accomplished by placing imposed date constraints for some work packages.

Project Performance Reviews (Tools and Techniques of Cost Control)

1.Variance Analysis 2.Trend Analysis 3.Earned Value Technique


30/64

Progress Reporting: Rules of:

50/50: Activity is considered 50% complete when it begins, and gets 50% only when its completed

20/80: Activity is considered 20% complete when it begins, and gets 80% only when its completed

0/100: Activity gets no credit for partial completion. It only gets credit only when its full completed

EAC

Original estimating assumptions were fundamentally flawed, or that they are no longer relevant to a change

in conditions. Formula: EAC = AC + ETC. Current variances are seen as atypical and the project management

team expectations are that similar variances will not occur in the future. Formula: EAC = AC + BAC EV.

When current variances are seen as typical of future variances. Formula: EAC = AC + ((BAC EV)/CPI)

Project Cost ManagementProcesses required to ensure that the project is

completed within the approved budget.

Benefit Cost Ratio

Expected Revenues / Expected Costs. Measure benefits

(payback) to costs; not just profits. The higher the better(if rating over 1, the benefits are greater than the costs)

Internal Rate of ReturnInterest Rate which makes the PV of costs equal to PV of

benefits

Payback Period

Number of time periods up to the point where cumulative

revenues exceeds cumulative costs. Weakness in this

approach is the lack of emphasis on the magnitude of the

profitability. Does not account for time value of money

nor consider value benefits after payback.

Opportunity Cost

Cost of choosing one alternative and therefore giving up

the potential benefits of another alternative: it is the

value of the project not selected (lost opportunity).

Sunk CostExpended costs which should be ignored when making

decisions about whether to continue investing in a project

Law of Diminishing Returns Straight Line

Depreciation

The point beyond which the marginal addition of

resources does not provide a proportional amount of

utility. Same amount each time period (e.g. 10 10

10). Types 1. Straight Line 2. Accelerated (1. Double

Declining Balance 2. Sum of Years Digits)

Contingency Reserve

Separate quantity of time/money for known unknowns.

Designed to cover specific risk events previously identified

and measured in the Risk Management Process.

Management Reserve Separate quantity of time/money for unknown unknowns


31/64

Working Capital Current Assets - Current Liabilities

Value Analysis

Cost reduction tool that considers whether function is

really necessary and whether it can be provided at a

lower cost without degrading performance or quality.

Finding the least expensive way to do the scope of work.

Value Estimating Part of Cost Control

Value Engineering ToolTool for analyzing a design, determining its function, and

assessing how to provide those functions cost effectively.

50-50 RuleAt beginning, charge 50% of its BCWS to the account.

Charge remaining at completion.

Analogous Estimating

Top down; based on similar projects. Represents a form

of expert judgment. Gives project team an understanding

of managements expectations (part of cost budgetingand cost estimating)

Bottom-up EstimatingDetailed cost estimates of work packages are aggregated.

Would provide best overall quality of the estimate.

Parametric Estimating

Relies on knowledge of mathematical relationships;

measured in $/unit (scalable, quantifiable). It does not

make use of team estimate. (part of cost budgeting and

cost estimating). Using a mathematical model to predict

the duration of a task (e.g. taking the average duration of

all past tasks)

Regression AnalysisStatistical technique graphically represented on scatter

diagram

Learning Curve

Mathematically models the intuitive notion that the more

times we do something, the faster we will be able to

perform

Variable Costs Costs rise directly with the size and scope of the project

Fixed CostsCosts do not change; non-recurring (e.g. project setup

costs)

Direct Costs

Incurred directly by a specific project. The PMI want the

team to participate in the cost estimates to get their buy-

in.

Indirect CostsPart of the overall organization's cost of doing business

and are shared by all projects. Usually computed as a


32/64

percentage of the direct costs.

Control Account

Represent the basic level at which project performance is

measured and reported. The purpose of cost accounts is

to monitor and report on project performance.

Cost Change Control Systems Includes the documentation, tracking systems, andapproval levels needed to authorize a change.

Budget updatesShould be the next steps after an approved cost baseline

has changed because of a major change on a project.

Operating profitAmount of money earned: Revenue (direct + indirect

costs)

Discounted cash-flow approach

Present value method determines the net present value of

all cash flow by discounting it by the required rate of

return.

Parametric modelingInvolves using project characteristics (parameters) in a

mathematical model to predict project costs.

Life-Cycle CostProvide a picture of the total cost for the product (project,

operations and maintenance).

Project Closeout(output to cost control) Process and procedures

developed for the closing or canceling of projects


33/64

Project QUALITY Management



Quality

Plan

Quality

Identifying quality

requirements and/or

standards for the

project and product,

and documenting how

the project will

demonstrate

compliance.

1. Scope baseline

2. Stakeholder

register

3. Cost performance

baseline

4.Schedule baseline

5. Risk register

6. Enterprise

environmental

factors

7. Organizational

Process Assets

1. Cost-Benefit

analysis

2. Cost of quality

3. Control Charts

4.Benchmarking

5. Design of

experiments

6. Statistical sampling

7. Flowcharting

8. Proprietary quality

management

methodologies

9. Additional quality

Planning Tools

1. Quality

management plan

2. Quality Metrics

3. Quality Checklists

4. Process

Improvement Plan

5. Quality Baseline

6. Project

Management Plan

(updates)

Perform

Quality

Assurance

Auditing the quality

requirements and the

results from quality

control

measurements to

ensure appropriate

quality standards and

operational definitions

are used

1. Project

management plan

2. Quality metrics

3. Work

performance

information

4. Quality control

measurements

1. Plan quality and

perform quality control

tools and techniques

2. Quality audits

3. Process analysis

1. Organizational

process assets

updates

2. Change requests

3. Project

management plan

updates

4. Project document

updates

Perform

Quality

Control

Monitoring and

recording results of

executing the quality

activities to assess

performance and

recommend necessary

changes

1. Project

management plan

2. Quality Metrics

3. Quality Checklists

4. Work

performance

measurements

5. Approved Change

Requests

1. Cause and effect

diagram

2. Control charts

3. Flow-charting

4. Histogram

5. Pareto chart

6. Run Chart

7. Scatter diagram

8. Statistical sampling

1. Quality Control

Measurements

2. Validated

Changes

3. Validated

deliverables

4. Organizational

process assets

updates


34/64

6. Deliverables

7. Organization

process assets

9. Inspection

10. Approved change

requests review

5. Change requests

6. Project

management plan

updates

7. Project document

updates

Quality: Degree to which the project fulfills requirements.

Grade: Category assigned to products or services having the same functional use but different

characteristics.

Low grade (a limited number of features) - low quality (many bugs)

Precision Consistency that the value of repeated measurements have little scatter. Precise measurementsmay not be accurate

Accurate It correctness of measured value, accurate measurements may not be precise.

Joseph Juran Quality - Fitness of Use Edward Deming Quality Improvement Plan, Do, Check and Act Philip Crosby Quality Conformance to requirements, Advocated Prevention over inspection and

Zero defects

Quality ManagementCreating and following policies and procedures to ensure that a project meets thedefined needs it was intended to meet from the customers perspective.

Cost of quality - All work to ensure conformance to requirements + nonconformance to requirements.

Cost of conformance: (quality training, studies, surveys, efforts to ensure everyone knows the processesto use to complete their work).

Cost of non conformance: (Rework, scrap, inventory costs, warranty costs, lost business).Costs of nonconformance should be lower than the costs of nonconformance.

Continuous Improvement (or Kaizen):Kaizen: (Kai: means to alter, Zen: Make better or improve).Continuous Improvement: quality movement.

Marginal Analysis Optimal Quality is reached at the point where the increased revenue fromimprovement equal incremental cost to secure it

Quality Management Plan Provides input to the overall project management plan and must addressQuality Control, Quality Assurance and continues process improvement for the project. Peer review may notinclude individuals that worked on the material being reviewed.

Gold Plating Giving Customers extras, it is not recommended

Quality Matrix Defines what something is and how to measure it.

Process improvement Plan Subsidiary of PMP, it details the steps for analyzing processes that will

facilitate the identification of waste and non-value added activity, it includes

1. Process boundaries

2.Process configuration

3.Process matrix

4.Targets for improved performance.

Quality Control Measurements Results of QC activities that are fed back to QA to reevaluate and


35/64

analyze the quality standards and processes for performing organization.

Seven Basic Tools of Quality

1.Cause and Effect Diagram

2.Control Charts

3.Flowcharting

4.Histogram

5.Pareto Chart

6.Run Chart

7.Scatter Diagram

Design of experiments - is a statistical method that helps identify which factors might influence specific

variables

Prevention: keeping errors out of the process

Inspection: keeping errors out of the hands of the customerTolerances - (the result is acceptable if it falls within the range specified by the tolerance) and control limits(the process is in control if the result falls within the control limits).

Inspections - are variously called reviews, product reviews, audits, and walkthroughs; The process may be

changed to provide improvements, but it should not be adjusted when it is in control.

Pareto Diagram Histogram, ordered freq of occurrence, take corrective action & 80 prob/20 causes

Statistical sampling - Statistical sampling involves choosing part of a population of interest for inspection

Trend analysis involves using mathematical techniques to forecast future outcomes based on historical

results.

Project Quality Management processes required to ensure that the project will satisfy the needs forwhich it was undertaken.

Quality is the conformance to requirements/specifications and to fitness of use.

Quality function deployment provide better product definition and product development. Its main feature

are to capture the customers requirements, ensure cross functional teamwork, and link the main phases of

product development

Rework action taken to bring a non-conforming item into compliance. Rework is a frequent cause of

project overruns


36/64

Quality Variable A quality characteristic that is measurable

Quality AttributeA quality characteristic that is classified as either conforming or

nonconforming

Benchmarking

Comparing practices of other projects. Provides a standard to

measure performance (time consuming). (e.g. investigatingquality standards that other companies are using)

Statistical Analysis Involves determining the probability of an occurrence

Trend Analysis

Uses mathematical techniques to forecast future outcomes based

on historical results; used to measure technical, cost, and

schedule performance

Quality Audit

Structured review of other quality management activities

erformed to identify lessons learned (used for process

improvement) Part of Quality Assurance. Provide managementconfidence that the project will satisfy relevant quality standards.

InspectionPrevent errors from reaching the customer before delivery to the

customer. Can be done throughout product development.

Design of Experiments

A technique to identify which variables have the most influence

on overall outcomes (part of Quality Planning) (e.g. analyze the

color/size combination that will contribute most to the

functionality of the new product). Can be applied to cost and

schedule tradeoffs.

Flow chart Help analyze how problems occurs

Attribute Sampling Measures whether or not the results conforms to specifications

Variable Sampling

Are characteristic you want to measure (size, shape, weight,

etc). An attribute is what you are measuring. The result is rated

on a continuous scale that measures the degree of conformity.

Assignable Causes Data point on a control chart that requires investigation

Specification Limit Shows customers expectations for quality (on a control chart)

Control Chart

Help newly assigned project manager determine whether theroject is out of control (in order to verify quality level). Can be

used to monitor project management processes such as coscard,

schedule variance, volume and frequency of scope changes, and

errors in project documents.

Statistical Control ChartAre used to monitor process variations overtime. Help people

understand and control their process work.


37/64

Out of Control1. A data point falls outside of the upper or lower control limit.

2. Non-random points that are still within the upper and lower

control limit.

Upper and Lower Control Limit on a Control

Chart

Acceptable range of variation of a process. [These limits are set

based on the companys quality standards. The control limits are

determined from data obtained from the process itself.]

Specification Limit Fixed by the customer

Pareto DiagramUsed to show how results were generated, by type or category of

identified cause

IshikawaMade popular Pareto Chart, Cause-and-Effect Diagram and

Control Chart

Taguchi Method

Is used to estimate the loss associated with controlling or failing

to control process variability. If you select good designarameters, you can produce products that are more forgiving

and tolerant. The tool helps determine the value or break-even

oint of improving a process to reduce variability.

ISO 9000Provides a basic set of requirements for a quality system, without

specifying the particulars for implementation.

ChecklistsUsed to verify that a set of required steps has been performed in

quality control process

Statistically IndependentDetermine if problems are related before planning what to do

about them

Mutually Exclusive If two events cannot both occur in a single trial (?)

Random Cause Normal process variation

Cause and Effect Diagram (Fishbone)

(1) Creative way to look at actual causes and potential causes of

a problem

(2) Process of constructing helps stimulate thinking about an

issue; helps to organize thoughts; generates discussion

(3) Used to explore a wide variety of topics

(4) Also known as Ishikawa or Fishbone diagram

Quality Planning

Refers to potential problems. Although it usually occurs during

Planning Phase, it can occur during execution if there is a

change.

Quality ControlRefers to specific performance of a task (measuring quality and

comparing results to the quality plan). Its done throughout the


38/64

project

Quality Assurance

Refers to overall quality requirements (standards) (e.g.

evaluating overall project performance regularly). Mostly done

during project executing.

Impact of Poor Quality

Increased cost Decreased productivity Increased risk and uncertainty Increased costs in monitoring


39/64

Goal of the cost of quality program should be 3 - 5% of total value.

Cost of non-quality is estimated to be 12 - 20% of sales.

Cost of Quality Includes Prevention Costs (training), Appraisals Costs (inspection/testing) and Internal

(scrap, rework)/External (warranty) Failure costs

Management is 85% responsible for quality. The team member is ultimately responsible for qualitymanagement. The project manager is primarily responsible for quality management.

Two components ofproduct availability are reliabilityand maintainability.

To effectively use statistical quality control, the project team should know the differences between special

causes and random causes.

Sampling and probability are the most important topics to understand in statistical process control. Top

management should direct continuous improvement

Quality control measurement are records of quality control testing and measurement in a format for

comparison and analysis (input to quality assurance).

Documentation Quality Management Plan describes method for implementing quality policy project

quality system and organizational structures, responsibilities, procedures, processes and resources needed to

implement project quality management

TQM Total Quality Management Philosophy encourages companies and their employees to focus on finding

ways to continuously improve quality of their business practices and products.

Process Analysis Lessons learned in first few cases is used to improve the process on the remaining ones.

Standard Deviation From 3 point Estimates = (P O)/6

Six Sigma Level of Quality, which is percentage of occurrences to fall between the two control limits.

+/- 1 Sigma = 68.26%

+/- 2 Sigma = 95.46%

+/- 3 Sigma = 99.73%

+/- 6 Sigma = 99.9995%

Rule of Seven Based on Heuristics, seven random data points grouped together in a series with in control

limit. It represents that they are not random and should be investigated.


40/64

Project HUMAN RESOURCE Management



Human Resource

Management

Develop

Human

Resource Plan

Identifying and

documenting project

roles, responsibilities

and required skills,

reporting relationships

and creating the

staffing management

plan

1. Activity resource

requirements

2. Enterprise

Environmental

Factors

3. Organizational

Process Assets

1. Organization charts

and position

descriptions

2. Networking

3. Organizational

theory.

1. Human

Resource Plan

Acquire

Project Team

Confirming human

resource availability

and obtaining the

team necessary to

complete project

assignments.

1. Project

Management Plan

2. Enterprise

Environmental

Factors

3. Organizational

Process Assets

1. Pre-assignment

2. Negotiation

3. Acquisition

4. Virtual teams

1. Project Staff

Assignments

2. Resource

Calendars

3. Project

Management plan

updates

Develop

Project Team

Improving the

competencies, team

interaction and overall

team environment to

enhance project

performance.

1. Project Staff

Assignments

2. Project

Management Plan

3. Resource

Calendars

1. Interpersonal skills

2. Training

3. Team-building

activities

4. Ground rules

5. Co-location

6. Recognition and

rewards

1. Team

Performance

assessments

2. Enterprise

environmental

factors updates.

Manage

Project Team

Tracking team

member performance,providing feedback,

resolving issues, and

managing changes to

enhance project

performance

1. Project Staff

Assignments2. Project

Management Plan

3. Team

Performance

Assessments

4. Performance

1. Observation and

conversation2. Project performance

appraisals

3. Conflict

management

4. Issue log

5. Interpersonal Skills

1. Enterprise

environmentalfactors updates

2. Organizational

process assets

updates

3. Change

requests


41/64

Reports

5. Organizational

Process Assets

4. Project

management plan

updates

Constraints Organizational Structure, Collective bargaining agreements, Economic Conditions

Organizational Charts Hierarchical, Matrix based and Text Oriented

RBS Resource Break Down Structureis a hierarchical chart which shows break down of project by resourcetypes. RBS is helpful in tracking project costs, aligned with organizations accounting system, can containcategories other than human resources.

RAMResponsibility Assignment Matrix, can be developed at various levels. RACI (Responsible,Accountable, Consult and Inform)

Halo Effect Tendency to rate high or low on all the factors due to the impression of a high or low rating onsome specific factor

Organizational Theory Provides information regarding the ways that people, teams and organizational

units behave.

Roles and Responsibilities (O/P of HR planning) Role, Authority, Responsibility and competency

SPONSORThe one who provides the financial resources for the project. If project is beingdone for an outside customer, it becomes the sponsor.

TEAMGroup of people who will complete work on the project. Team members canchange throughout the project as people are added and removed from theproject.

STAKEHOLDERS

Anyone who can positively or negatively influence the project, as well asincluding within the organization (customer users, project manager, team,sponsor, program and portfolio managers, PMO, functional and operationsmanagers) as external sellers that provide services or material for the project

FUNCTIONALMANAGER

Manages and "owns" the resources in a specific department, such as IT,engineering, public relations, or marketing, and generally directs the technicalwork of individuals from the functional area working on the project

PROJECTMANAGER

Responsible for managing the project to meet project objectives

PORTFOLIOMANAGER

Responsible for governance at an executive level of the projects or programsthat make up a portfolio

PROGRAMMANAGER

Responsible for managing a group of related projects. Projects are combinedinto a program to provide coordinated control, support, and guidance

Staffing Management Plan (part of the Human Resources Plan) Describes when and how humanresource requirements will be met. SMP can be updated because of promotions, retirements, illness,performance issues and changing workloads. SMP contents:

1 Staff acquisition internal or external or contract, same location or different etc.2 Resource Calendars When are people available?, when will they used.3 Staff Release Plan When will resources be released and no longer be charged to the project?.

4 Staff Training Needs - What are the needs of training for the resources?5 Recognition and rewards What are they?, What are the criteria for their use?6 Compliance With Government regulations7.Safety What policiesprotect the resources?

Five Stages of Team Building Activities Forming, Storming, Norming, Performing and Adjourning(Tuckman Ladder)

Forming Team meets and learns about the project and roles and responsibilities.

StormingBegins to address project work, technical decisions, and project managementapproach. (disagreements as people learn to work together)

NormingTeam members begin to work together and adjust work habits and behaviors thatsupport the team. Team begins to trust each other.


42/64

PerformingTeam becomes efficient and works effectively together. In this point Projectmanager pay most attention to developing team members.

Adjourning Team completes the work and moves on from the project.

Ground Rules: establish clear expectations regarding acceptable behavior by project team members.

Kickoff Meeting Indirect Method to start team development. It should answer 1.Why am I here? 2. Whoare you and your expectations of me? 3. What is this team going to do? 4. How is the team going to do thiswork? 5. How do I fit into all this?

Lessons Learned from Manage Project Team

Project organization charts, positions and SMP Ground rules, conflict management techniques and recognitions Procedures for Virtual teams, co-location, training and team building Special skills and competencies by team members discovered Issues and solutions

Project Human Resource Management - process required to make the most effective use of the peopleinvolved with the project

Responsibility Assignment Matrix (RAM) Show who does what (x=person, y=phase). The most

important feature of the RAM is the participatory development process involving all stakeholders. Show who

is participant, who is accountable, who handles reviews, who provides input and who must sign off on

specific work packages or project phases.

Linear Responsibility Chart (LRC) identifying responsibility, assignments by work packages and action

required. Also referred to as RAM.

Organizational Breakdown Structure (OBS) - A depiction of the project organization arranged so as to

relate work packages to organization units.

Resources Histogram often part of Staffing Management Plan; shows resource usage (eg staff hours) pertime period (eg wk, mth) of a specific job function.

Rewards and Recognition Systems -- to be effective, must make the link between performance and

reward clear, explicit and achievable.

Types of Power

Legitimate(Formal)

Derived from formal position

Coercive Predicated on fear

Reward

Involves positive reinforcement and ability to award something of value Project often

needs their own rewards system to affect employee performance. Used correctly, bring

the teams goals and objectives in line with each other and with the project.

Expert Held in esteem because of special knowledge or skill (requires time)

Referent Ability to influence others through charisma, personality, etc.

The best forms of power are generally Reward and Expert


43/64

Conflict Management

Avoidance

/Withdrawal

(Ignoring)

At least one party withdraws from conflict. Cool off period, could be lose/lose

Retreating from actual or potential disagreement; delaying (e.g. Just document the

problem)

Competition/Forcing

Exerting ones viewpoint; a last resort [win/lose] (e.g. Call the customer and demandthat you receive the approval today.

Compromising

Bargaining and searching for solutions; neither party wins but each gain some

satisfaction [win-lose/win-lose] this is very rarely a good way to resolve technical

issues.

AccommodationOpposite of Competition. One party meets other party need at expense of his own.

Lose/Win

Collaborating

Involves incorporating multiple ideas and viewpoints from people with different

perspectives and offers a good opportunity to learn from others (good when project istoo important to be compromised) Win/Win Best Strategy

Smoothing

De-emphasize differences and emphasize commonalities; friendly but avoids solving

root causes; delaying (eg. Manager says an issue is valid but doesnt think it will be a

big problem later)

Problem Solving

/ ConfrontationAddress conflict directly in problem solving mode [win/win]

6 steps of problem solving:

1. Define what is the real/root problem

2. Analyze the problem

3. Identify solutions

4. Pick a solution

5. Implement a solution

6. Review the solution and confirm that the solution solved the problem

Motivational Theory: Content & Process Theories

Content: What energizes, directs behavior

1. Maslows Hierarchy of Needs Theory (1. Physiological, 2. Safety, 3. Social/Belonging, 4. Esteem, 5.

Self-Actualization)

2. Hertzbergs Motivator/Hygiene Theories (Motivator: Responsibility, Self-Actualization, Esteem,

Professional Growth, Recognition. Hygiene: Working Conditions, Salary, Relationship at Work, Social, Safety,

Physiological)


44/64

Process: How personal factors influence behavior

1. McGregors Theory X and Theory Y (X: Assumes people lack ambition, dislike responsibility, are

inherently self-centered and are not very bright; motivate by reward and punishment. Y: Assumes people

become lazy w/o recognition, will accept responsibility, can become self-motivated and exercise self-control;

motivate by removing obstacles and providing self-directed environment.)

2.Ouchis Theory Z/Japanese Theory ( focus on team, company; usually lifetime employment, collective

decision making )

Other Motivational Theories

Behaviorism people behavior can be modified through manipulation of rewards and punishments

Expectancy Theory Motivation is explained in terms of expectations that people have about

(1) their ability to perform effectively on the job,

(2) the rewards they might obtain if they do perform effectively and

(3) the value or degree of satisfaction they anticipate from those rewards.

MBO More support to team, not more power (remain to PM)

Leadership Theories:

McGregor Theory X (employee lack ambition) and Theory Y (org