Pmp 2 Days

September 8, 2017 | Author: Amar Wadood Khan | Category: Project Management, Risk Management, Accountability, Technology, Business
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PMP Certificate Course Created by PMI Lahore Chapter....

Description

5/3/2017

PMP® Certification Course (17 Contact Hours/PDUs) Conducted by PMI Lahore, Pakistan Chapter

Copyright PMI Lahore, Pakistan Chapter 2016

Learning Objectives of the course • Learning Objectives of the course are as follows: – Understand PMI methodology and Prepare for PMP® Certification exam.

• Books to consult – Project Management Professional (PMP®) Handbook (free download from PMI website) – Project Management Professional (PMP®) Exam Content Outline (free download from PMI website) – PMBOK® 5th Edition (buy or print if you are a PMI member)

• It is recommended that candidates should have these three books with them when they come for the course Copyright PMI Lahore, Pakistan Chapter 2016

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2 Days Project Management Course by PMI Lahore at CNEEC Pakistan Engineering Co

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Materials in this class are based on Project Management Institute, A Guide to Project Management Body of Knowledge (PMBOK® Guide), - Fifth Edition, Project Management Institute, Inc., 2013

PMBOK is a registered trade mark of Project Management Institute, Inc.

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PMP® Certification Course Schedule (35 PDUs) 9am – 6:00pm (1 hour Lunch/Tea breaks) Day

Title

Time

1

Day 1

Morning

Overview of PMI & Project Management Introduction

2 Hrs

2

Day 1

Morning

Chapter 4, Integration Management

2 Hrs

4

Day 1

Afternoon

Chapter 5, Scope Management

2 Hrs

6

Day 1

Afternoon

Chapter 6, Time Management

2 Hrs

5

Day 2

Morning

Chapter 7, Cost Mgt.; Chapter 8, Quality Mgt.

2 Hrs

6

Day 2

Morning

Chapter 9, HR Mgt.; Chapter 10, Communication Mgt

2 Hrs

7

Day 2

Afternoon

Chapter 11, Risk Management

2 Hrs

8

Day 2

Afternoon

Chapter 12, Procurement Management

1 Hrs

9

Day 2

Afternoon

Chapter 13, Stakeholders Management

1 Hrs

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Project Management Institute Project Management Institute (PMI®) is a Worldwide organization which was established in 1969 “PMI is one of the world's largest not-for-profit membership associations for the project management profession, with more than 550,000 members and credential holders in more than 185 countries”. (PMI website)

pmi.org

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PMP® Certification  Education

 Experience  35 hours of Project Management Education  Pass the Exam

 Certificate, valid for 3 years  Need 60 PDUs in 3 years to renew Copyright PMI Lahore, Pakistan Chapter 2016

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2 Days Project Management Course by PMI Lahore at CNEEC Pakistan Engineering Co

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Application Process • Apply on-line at www.pmi.org • After the application is approved (5 days, if not audited) you will be provided an authorization number from PMI to make appointment for exam.

• After authorization you must take the exam within one year. • Candidates have 3 opportunities to pass the exam in 1 year. • After that if they do not pass then they have to wait for 1 year from the date of last attempt.

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INTRODUCTION Project Management

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Introduction Topic in this section • • • • •

Purpose of PMBOK® Guide What is a Project What is Project Management Role of Project Manager Project Management Body of Knowledge

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Chapter 1 > Introduction

Purpose of PMBOK® Guide - Fifth Edition. • The book is a standard for Project Management from PMI • This book is well recognized in the Project Management industry. • It describes 47 processes that are used in managing projects.

• Chapter 1 &2: Introduction and key concepts in Project Management • Chapter 3: Project Management processes. • Chapters 4 – 13: 10 Knowledge Areas Copyright PMI Lahore, Pakistan Chapter 2016

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Purpose of PMBOK® Guide - Fifth Edition. • The book is a useful guide for project management. • It provides guidelines that can increase project success • It uses vocabulary which can be commonly used in Project Management • However it is not totally complete as it may not contain everything that is required in Project Management • It can be considered as a reference guide. • The processes given in the book can be used in nearly all type of projects.

PMBOK 2

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What is a Project?

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What is a Project? • Project is a temporary endeavour that is taken to produce a unique product, service or result • Temporary means that project will end (Projects can last from a few days to many years) • End of the project is reached when

– Project work is completed – When it is clear that it is not possible to complete the project work. – There is no need for the project to be carried out.

• Unique means that the output of every project is different. • Project go through ‘progressive elaboration’.

PMBOK 3

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What is a Project deliverable? • Projects deliverable could be a Product, Service or Result. For example:  Product: Product is a deliverable which could be an end item, or it could be a component of another item. (e.g. complete house or just the grey structure)  Service: Service is a deliverable which has the capability to perform a business function. (e.g. business function to supports production, distribution, design; ERP computer system)  Result: Result is a deliverable in form of a document. (e.g. research paper, marketing survey result report) Copyright PMI Lahore, Pakistan Chapter 2016

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Chapter 1 > Introduction

Examples of a Project • • • • • • • •

Developing a new product Developing a new service Create a new department in an organization Implementing a new computer system Construction of a new metro-bus system Implementing a new business process Constructing a house Construction of road

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Examples P O 1. Developing a new product or service 2. Running 1122 centre 3. Change in structure, staffing, in an organisation 4. Implementing a new Computer system 5. Maintaining a email system 6. Constructing a building or plant 7. Campaign for a political office 8. Developing and implementing a new procedure 9. Arranging a function or event 10. Operation of a Fertilizer plant Copyright PMI Lahore, Pakistan Chapter 2016

X

X

X X X X X X X X

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What is a Project Management?

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What is Project Management? Application of knowledge, skills, tools, and techniques, to project activities to meet the project requirements. THIS IS DONE BY …

PMBOK 5

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What is Project Management?

By applying 47 project management processes, which are listed in 5 process groups and 10 knowledge areas Copyright PMI Lahore, Pakistan Chapter 2016

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What is Project Management?

• The five Process groups are: 1. 2. 3. 4. 5.

PMBOK 5

Initiation Planning Executing Monitoring and Controlling Closing

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What is Project Management? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

The 10 Knowledge Areas Integration Management Scope Management Time Management Cost Management Quality Management HR Management Communication Management Risk Management Procurement Management Stakeholders Management Copyright PMI Lahore, Pakistan Chapter 2016

All 47 processes are in these 10 knowledge areas

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What is Project Management? Work within the 6 project constraints:

Primary

Secondary

1. 2. 3. 4. 5. 6.

Scope (Work) Time (Schedule) Cost (Budget) Resources Risks Quality

The Iron Triangle

Quality

Resources

Change in any ‘one’ will have an effect on the others.

PMBOK 6

Risks

Scope

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The Project Manager’s responsibilities To be able to get the work done, the Project Manager should have the following:  Knowledge – The project manager should have knowledge about the project. i.e. what the project is about and what is required to be done. (Scope, Time and Cost) so that he is able to achieve the outcome of the project.  Performance – to be able to perform work in a manner that results are produced while applying the knowledge he/she has about the project and the deliverables to be produced.  Personal – Project Manager has to lead the team so that project work can be carried out effectively. To do this, Interpersonal skills or soft skills are required.

PMBOK 17

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Organizational Process Assets (OPAs) Organizational Process Assets These are documental assets that are available in the organization. These include documents such as plans, processes, policies, templates, forms, procedures, work instruction and any type of knowledge base or data that can be useful in planning and execution of the project. OPAs can be grouped in two categories: 1. Processes and Procedures 2. Knowledge base PMBOK 27

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Organizational Process Assets (OPAs) Examples of Processes and Procedures:       

HR policies; e.g. medical policies, compensation policies Templates and forms (risk, schedule, WBS, others) Change control procedures, Financial control procedure, Issues and defect handling procedures Communication procedures, Risk control procedures, Work Instructions, evaluation criteria, performance measurement criteria  Audits, project evaluations, project validations, acceptance criteria

PMBOK 27

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Organizational Process Assets (OPAs) Corporate Knowledge database examples:      

Historical information of projects handled by the organization earlier Lessons learnt from previous projects Issues and defect management database Project files from previous projects Configuration management knowledge base Financial database

PMBOK 28

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Enterprise Environmental Factors (EEFs) Enterprise Environmental Factors (EEFs)

These are conditions that are not under the control of the project team what can have an effect on the project. These conditions can help in the PM while developing the plan and during the other stages of the project. Generally EEFs are of two types: 1. Internal, that are within the organization 2. External, that are outside the organization

PMBOK 29

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Enterprise Environmental Factors (EEFs) Internal EEFs

External EEFs

(related to organization)

(related to the place of project)

 Organizational culture, structure  Infrastructure facilities inside the Company.  HR administration  Company work authorization system  Stake holders risk tolerances  Project Management Information Systems used by the company

PMBOK 29

 Market place conditions  Government / Industry standards  Political situation  Human resources availability  Communications systems  Commercial databases availability  General security  Infrastructure

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Project Stakeholders Stakeholders Stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity or outcome of a project. Stakeholders can be directly or indirectly connected to the project.

See figure on PMBOK page 31 PMBOK 30

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Stakeholders

PMBOK 31

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Project Life Cycle

Project Life Cycle: The Project life cycle is divided into 4 stages from the start to finish.

PMBOK 38

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Project Life Cycle Characteristics of Project Life Cycle: • 1 - Initiating  Starting phase of the project. I.e. starting the work on the project (initiating) 2 - Planning  Preparation and planning for the work that is required to be done (planning) 3 - Execution  Executing the project work as per the plan (Execution) 4 - Closing  Accepting the deliverables and closing the project (Closing) PMBOK 39

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Characteristics of Project Life Cycle 1

2

3

Initiating

4

Executing Closing

Planning

PMBOK 39

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Project Life Cycle and Project Phases What are Project Phases ? Project may be divided into many number of phases. A phase is a collection of logically related project activities that culminates in the completion of one or ore deliverables. The end of phase represents a natural point to reassess the activities underway to change or terminate the project if necessary. This point may be referred as stage gate, milestone, phase review, phase gate or kill point.

PMBOK 41

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Single Phase Project

PMBOK 42

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Three Phase Project PHASE I

Front End Engineering Design

PMBOK 43

PHASE II

Plant detail design

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PHASE III

Plant construction

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Overlapping Phase Project PHASE I

Factory Design PMBOK 43

PHASE II

Construction

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Project Management Processes

PMBOK 47

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Project Management Processes • Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

 This is done by using the 47 processes which are in 10 knowledge areas and 5 process groups.

PMBOK 47

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Chapter 3 > Project Management Processes  To succeed, the project team must:  Select processes that will meet objectives of the project out of the 47 processes.  Define the approach to meet the project requirements  Ensure that they will meet the stakeholders needs  Balance the demands of scope, cost, time and quality.

PMBOK 47

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Project Management 5 Process Groups 1

2

Initiating

3

Planning

Processes performed to define and get authorization of a new project.

4

Executing

5

Monitoring & control

Processes performed to complete the work defined in the project management plan

Closing

Processes performed to finalize all activities and formally close the project or phase

(8 processes)

(2 Processes)

(2 processes)

Processes required to establish the scope of the project, and define the course of action required to attain the objectives

Processes required to track, review, and update the progress of the project (11 processes)

(24 processes) PMBOK 49

47 Processes

Copyright PMI Lahore, Pakistan Chapter 41 2016

Initiating

Planning

Executing

Monitoring & Control

Closing

Processes are not discreet, they overlap

30%

24% 8%

25%

13%

Time  PMBOK 51

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

11

Plan Risk Response

Identity Stakeholders

13

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Control Quality

47 Processes PMBOK 61

Manage Communication Control Communication

Control Risks

24

Conduct Procurements

Control Procurements

Manage Stakeholders Copyright PMI Lahore, Pakistan Chapter 43 Engagement 2016

Control Stakeholders Engagement

Plan Stakeholders Management

2

11

8

Close Procurements

Process Groups

Initiating Develop Project Charter

While ManagingExecuting Projects

Planning

Monitoring and Control

Closing

Develop Project Management Plan

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Direct & Manage Project Work

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Quality Management

Plan HR Management

Communication Management

Plan Communication Management

Plan Risk Response

Identity Stakeholders

47 Processes

Control Risks

Conduct Quantitative Risk Analyses

Plan Procurement Management

Control Quality

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Procurement Management Stakeholders Management

Control Schedule

Plan Procurement Management

2 12

Control Scope

Conduct Quantitative Risk Analyses

9 HR Management

10

Close Project or Phase

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Knowledge Areas

Integration Management

Direct & Manage Project Work

Validate Scope

Plan Communication Management

Risk Management

4

Closing

Monitoring & Control Project Work Perform Integrated Change Control

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Monitoring and Control

Plan Quality Management

2 12

Develop Project Management Plan

Executing

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Planning

24

8

Control Procurements

Copyright PMI Lahore, Pakistan Chapter Manage Stakeholders 44 Engagement 2016

Control Stakeholders Engagement

Plan Stakeholders Management

2

11

Conduct Procurements

Close Procurements

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Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Process Groups Initiating

Planning

Develop Project Charter

Develop Project Management Plan

11

Executing

Monitoring and Control

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or 6 Phase

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget Plan Quality Management

9 HR Management

10

STUDY

Plan HR Management

Communication Management

Plan Communication Management

Validate Scope

Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Control Schedule

7

Control Costs

4

Control Quality

3

47

13

Procurement Management Stakeholders Management

3

6 Control Risks

Conduct Quantitative Risk Analyses Plan Risk Response

12

4

Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

6

Control Scope

Conduct Procurements

Control Procurements

4 Close Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

4

Plan Procurement Management Identity Stakeholders

45 2016

PMI-Lahore, Pakistan Chapter PMP® Certification Course

Project Integration Management Chapter 4

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PMI – Lahore Chapter 2013 - All rights reserved.

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating

Planning

Develop Project Charter

Develop Project Management Plan

13

Close Project or Phase

6

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Control Risks

Conduct Quantitative Risk Analyses

2 Procurement Management Stakeholders Management

Direct & Manage Project Work

Plan HR Management

Risk Management

12

Closing

Monitoring & Control Project Work Perform Integrated Change Control

Plan Quality Management

Communication Management

11

Monitoring and Control

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Executing

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

47 2016

2

11

8

Conduct Procurements

Close Procurements

Project Integration Management Why integrate: •

Integration helps in:  Coordinating work between all areas for the success of the project.  To make sure that the stakeholders’ needs regarding the project are being met.  Determine how to get resources (HR and others) for the project.  Anticipate future problems that can arise in the project (risk management).

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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Project Integration Management > 4.1 Develop Project Charter Develop Process Charter is the process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. Project Charter will give authority to the project manager to start project related work by using resources which have been assigned to the project. PMBOK 66

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Input, Tools and Techniques, Outputs • Every process defined in PMBOK has inputs, tool & techniques and outputs for the processes to be executed. • Inputs is the information/data that is required to carry out the process. • Tools and techniques are actions required to complete the process • Output is the outcome of the process • There 256 inputs, 209 tools and techniques and 153 outputs in PMBOK. (total 618)

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4.1 Develop Project Charter

Inputs

Tools & Techniques

5

2

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Outputs

1

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4.1 Develop Project Charter: Inputs 1. Project statement of work (SOW)  The statement of work (SOW) is a written description of product, services, or result to be delivered by the project.  It describes what is to be produced by the project.  SOW is initiated within the organization or from outside the company.  E.g. Finance department asking the IT to develop a computer system for controlling inventory. IT would initiate this as a project and would develop a charter for it.  In case from outside, the SOW is generated by the customer or client asking a company to carry out work for them. PMBOK 68

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4.1 Develop Project Charter: Inputs 2. Business case  Business case is a cost benefit analyses that is carried out to determine if the project is worth the investment.  This document becomes part of the Project Charter.  There are various ways benefit analyses can be carried out such as  Example:  Return on Investment (ROI),  Present Value (PV),  Internal rate of return (IRR)…etc.

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4.1 Develop Project Charter: Inputs 3. Agreements  Any agreements between any two or more parties can generate a project and will require a Project Charter.  These can be Contracts, Memorandum of Understanding (MOU), Service Levels Agreements (SLA) Letter of Intent (LoI) Verbal agreements, emails or any other written agreements

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4.1 Develop Project Charter: Inputs 4. Enterprise environmental factors (EEFs)  EEFs is an input of the Project Charter as these will provide information on the local conditions both inside and outside the company Including:  Organizational structure  Govt. standards, regulations  Market conditions and others…

5. Organizational Process Assets (OPAs)  OPAs will help in developing Project Charter by providing:  Standard operating procedures/processes  Templates/forms  Historical information from previous projects PMBOK 70

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4.1 Develop Project Charter: Tool and Techniques 1. Expert Judgment  Expert judgement is used to asses the inputs to develop the project charter, to analyze the technical and others details of the project.  This expertise can be provided by people inside and outside the company. Paid or free. Such as:  Consultants • Stakeholders • Customers • Technical professionals • Subject matter experts • PMO

PMBOK 71

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4.1 Develop Project Charter: Tool and Techniques 2. Facilitation Techniques These techniques are related to managing meeting sessions for the development of project charter. These meetings could have: • Brainstorming sessions to generate ideas • Conflict resolutions for resolving disagreements amongst the participants • Problem solving sessions • Decision making sessions The project manager will facilitate such meetings

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4.1 Develop Project Charter: Output

1. Project Charter Project Charter is a written document which is issued by the initiator or the sponsor of the project. It gives authority to the project manager to start work on the project and also give the PM the authority to start using resources on the project activities.

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4.1 Develop Project Charter > Output  Project charter will have:  Purpose of the project

• Project objectives which are measureable • Assumptions and constraints • High-level description and boundaries • Summary milestones, budget. • Stakeholders list • Approval requirements • Project Manager, authority level • Name and authority of sponsors PMBOK 72

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Sample Project Charter Page-1

61

Sample Project Charter Page-2

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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4.2 Develop Project Management Plan

Develop Project Management Plan is the process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan

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4.2 Develop Project Management Plan

Inputs

Tools & Techniques

4

2

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Outputs

1

65

Develop Project Management Plan Inputs 1. Project Charter 2. Outputs from Planning processes All knowledge areas, (minus integration), has one management plan. Scope and Quality has two plans each. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Scope – Time – Cost – Quality – HR – Communication Risk – Procurement – Stakeholder –

PMBOK 74

Scope Mngt plan & Requirement Mngt Plans Schedule Mngt plan Cost Mngt plan Quality Mngt plan & Process Improvement plan HR Mngt plan Communication Mngt plan Risk Mngt plan Procurement Mngt plan Stakeholder engagement Mngt plan Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Project Management Plan Inputs 3. Enterprise Environmental factors (EEFs) EEFs that will help in developing Project Management Plan

Internal: • • • •

Project management information systems Configuration management system, information collection and distribution Organization structure and culture Personnel administration

External •

Government/Industry standards



External conditions (Infrastructure, utilities, etc)

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Develop Project Management Plan Input 4. Organizational process assets (OPAs) Processes and procedures  Standard guidelines, work instructions, proposal evaluation criteria, performance evaluation criteria  Project management plan templates • Guidelines and criteria for tailoring standard processes • Project closure guidelines

 Change control procedures

Knowledge base  Project files from past projects

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Develop Project Management Plan Tools and Techniques 1. Expert Judgment  For developing project management plan expert judgement is used to:  Asses which processes are required to meet the needs of the project and to what extent.  What technical and management expertise is required.  What resources and skills are required  How much of configuration management is required  How the change control will work  How the work will be prioritized.

PMBOK 76

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Develop Project Management Plan Tools and Techniques 2. Facilitation Techniques These techniques are related to managing meetings for the development of project management plan. Techniques include • Brainstorming session to generate new ideas • Conflict resolutions for resolving disagreements amongst the participants • Problem solving sessions • Decision making sessions The project manager will be required to facilitate such meetings

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Develop Project Management Plan Output • Project Management Plan – Project Management Plan is a document that describes how the project will be executed, monitored, and controlled. – It is used to integrate all the plans from the planning processes of the other knowledge areas: – It contains 9+4+3 = 16 documents as follows: – 9 management plans from 9 knowledge areas – 4 other plans (change control, configuration control, requirement management plan, process improvement plan) – 3 baselines: Scope baseline; Schedule baseline; Cost baseline

PMBOK 77

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Develop Project Management Plan Output Components of Project Management Plan 9 Management plans

4 other plans

1. 2. 3.

Scope Management Plan Schedule Management Plan Cost Management Plan

1.

Requirement Mngt. plan

2.

Process improvement plan

4. 5. 6. 7. 8. 9.

Quality Management Plan HR Management Plan Communication Management Plan Risk Management Plan Procurement Management Plan Stakeholder Management Plan

3.

Change control plan

4.

Configuration Mngt. plans

3 base-lines 1. 2. 3.

Scope base line Schedule base line Cost base line

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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4.3 Direct and Manage Project Work

Direct and Manage Project Work is the process of leading and performing the work defined in the project management plan and implementing approved changes to achieve project objectives.

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4.3 Direct and Manage Project Work

Inputs

Tools & Techniques

4

2

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Outputs

5

75

Direct and Manage Project Work Inputs 1. Project management plan –

Contains all the subsidiary plans and the work to be done in the project. It has __ documents

2. Approved Change requests – Approved change request is an output from the Integrated change control process. – It is generated if any change is required in the project – Changes in project could be due to Corrective action, Preventive action, Defect repair or Document change. – All change requests are approved by the Integrated Change Control Process. Next page …. PMBOK 82

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4.3 Direct and Manage Project Work Approved changes to the project will also be done in Direct and Manage Project Execution process. These will include the following: 1. Corrective actions: An intentional activity that realigns the performance of the project work with the project management plan. 2. Preventive actions: An intentional activity that ensures future performance of the project work is aligned with the project management plan. 3.

Defect repair: An intentional activity to modify a nonconforming product or product component.

Direct and Manage Project Work Inputs 3. Enterprise environmental factors (EEFs)  Some of the EEFs that would influence Direct and Manage project work would be:     

Culture of the Company Infrastructure of the organization HR administration Stakeholders risk tolerance Project Management Information System

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Direct and Manage Project Work Inputs 4. Organizational process assets (OPAs)  Some OPAs that will have influence on direct and manage project work would include:  Standards used for executing projects  Communications requirements  Database for collecting performance data  Management of Defects procedures  Lessons learnt files  Previous project files

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Direct and Manage Project Work Tools and Techniques 1. Expert judgment  Expert judgment is used to assess the input needed to direct and manage execution of the project management plan. Additional expertise is available from:  Other unit in the organization  Consultant and subject matter experts  Stakeholders, customers, suppliers, sponsors  Technical associations

PMBOK 83

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Direct and Manage Project Work Tools and Techniques 2. Project Management Information System  An Information system consisting of the tools and techniques to gather, integrate, and decimate the outputs of project management processes can be used to manage the project work.

 It is used to support all aspects of the project from initiating to closing, and can include both manual and/or automated systems

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Direct and Manage Project Work Tools and Techniques 3. Meetings  Meetings are held to discuss and resolve problems and issues related to the project.  Meeting are attended by Project Manager, relevant team members, and stakeholders.  Meetings can be one of these types:  Information exchange  Brain storming, open evaluation  Decision making

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4.3 Direct and Manage Project Work > Outputs 1. Deliverables  A unique and verifiable product, result or capability to perform a service that must be produced to complete a process, phase, or project.  Tangible components can include elements of the project management plan

83

4.3 Direct and Manage Project Work > Outputs 2. Work performance data  Work performance data are the raw observations and measurements identified during the activities being carried out the project work. This includes: • • • • • • •

Work completed Key Performance Indicators Technical Performance measures Schedules Change requests Defects Actual costs

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4.3 Direct and Manage Project Work > Outputs 3. Change requests  Change requests is a formal proposal to modify any document, deliverable, or baseline.  May modify scope, cost, schedule, quality, etc. • Corrective actions: An intentional activity that realigns the performance of the project work with the project management plan. • Preventive actions: An intentional activity that ensures future performance of the project work is aligned with the project management plan. • Defect repair: An intentional activity to modify a non-conforming product or product component. • Updates: Changes in documents, plans, etc. to reflect changes 85

4.3 Direct and Manage Project Work > Outputs 4. Project management plan updates  Plans that will be updated include • Scope, Schedule, Cost, Quality, HR, Communication, Risk, Procurement, and project baselines

5. Project document updates  Documents that will be updated include • Documents related to project Requirement documentation, issue log, risk register

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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4.4 Monitor and Control Project Work

Monitoring and Control is the process of tracking, reviewing, and reporting the progress to meet the performance objectives as defined in the project management plan.

88

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4.4 Monitor and Control Project Work

Inputs

Tools & Techniques

7

4

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Outputs

4

89

4.4 Monitor and Control Project Work Input 1. Project management plan 2. Schedule forecasts – Derived from progress against the schedule baseline. – Expressed in terms of Schedule variance (SV) and Schedule performance Indicator (SPI). 3. Cost Forecast – Derived from progress against the cost baseline. – Expressed in terms of cost variance (CV) and Cost Performance Indicator (CPI). [Covered in Cost Management]

PMBOK 89

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4.4 Monitor and Control Project Work Inputs 4. Validated Changes – Changes that have been carried out after approval from the Integrated Change Control Process are verified here. –

5. Work Performance Information – Data collected and analyzed and converted into information. – Information is used to assess the project progress and make decisions.

PMBOK 89 Copyright PMI Lahore, Pakistan Chapter 2016

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4.4 Monitor and Control Project Work Inputs 6. Enterprise environmental factors (EEFs) – Government/Industry standards in the country – Shareholders risks tolerance – Project Management Information System

7. Organizational process assets (OPAs) – – – –

Communication procedures and requirements Financial control procedures Risk control procedures Lessons from previous projects

PMBOK 90 Copyright PMI Lahore, Pakistan Chapter 2016

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Monitor and Control Project Work Tools and Techniques 1. Expert Judgment:  Subject matter Experts in the team shall interpret the information available (raw data converted to information) for monitoring, control and purposes.

2. Analytical Techniques  Various analytical techniques are used to analyze the information to forecast future outcomes

PMBOK 92

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4.4 Monitor and Control Project Work > Tools and Techniques 3. Project Management Information System  Project Management Information system consists of software that gather, integrate, and decimate the output for the project management processes.  It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems

4. Meetings – Meetings are held to monitor the project activities. These could are face to face, virtual, formal or informal. – Objective of the these meetings is to review progress and analyze the information related to the project. Copyright PMI Lahore, Pakistan Chapter 2016

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4.4 Monitor and Control Project Work > Outputs 1. Change Requests •

After comparing planned results to actual results, change requests may be issued to expand, adjust or reduce project scope/product scope/quality requirements/cost baseline. These could result in: • Corrective actions: An intentional activity that realigns the performance of the project work with the project management plan. • Preventive actions: An intentional activity that ensures future performance of the project work is aligned with the project management plan. • Defect repair: An intentional activity to modify a non-conforming product or product component. 95

4.4 Monitor and Control Project Work > Outputs 2. Work performance reports – Based on the information available work performance reports can be developed. – These could be physical or electronic – Intended to generate decisions.

3. Project Management Plan Updates • Updates will be made to Schedule plan, Cost plan, Quality plan, Scope baseline, Schedule baseline, Cost baseline, etc.

4. Project Document Updates • Forecasts of the project • Reports related to the project performance • Issues log

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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4.5 Perform Integrated Change Control  Perform Integrated Change Control is the process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and the project management plan; and communicating their results.  Includes Configuration Management

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4.5 Perform Integrated Change Control Change Control  Changes in the project can take place anywhere from the start to the end of the project.  These changes could be due to changes in scope, changes in schedule, changes in budget, changes in specifications, corrective actions, preventive actions, defect repairs, etc.  Changes can be requested by any stakeholder.  Change requests should be given in writing  All change requests should be logged in the ‘change log’.  All change requests pass through the ‘Perform Integrated change control procedure’ where they get approved or get rejected.  The final implemented status of the change is updated in the change log and is audited to ensure that the change is done. PMBOK 96

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4.4 Perform Integrated Change Control

Inputs

Tools & Techniques

5

3

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Outputs

4

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4.5 Perform Integrated Change Control Inputs 1. Project Management Plan 2. Work performance reports – Information related to the work being carried out in the project. – How the project is performing

3. Change requests – Change requests generated from the monitoring and controlling process is an input to this process.

PMBOK 97

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4.5 Perform Integrated Change Control Inputs 4. Enterprise environmental factors – – – –

Scheduling software Configuration management system Information distribution system and other related systems

4. Organization process assets – Change control procedures – Policies and Standards

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4.5 Perform Integrated Change Control Tools and Techniques 1. Expert Judgment  A Change Control Board (CCB) will be formed to review all change requests. The change request will be analyzed by subject matter experts to determine if the change request should be approved or rejected. These experts will be from: • Stakeholders

• Consultants • Industry groups • Technical experts • PMO

PMBOK 99

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4.5 Perform Integrated Change Control Tools and Techniques 2. Meetings  Change Control Board (CCB) will review all requests for changes, and will either approve or reject the changes requested  All decisions taken by CCB will be documented.  Concerned department/stakeholder will be informed for followup

3. Change Control Tools  Manual or automated tools shall be used to manage change control system to assist CCB members.

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4.5 Perform Integrated Change Control Outputs 1. Change request status updates  Change requests that have been approved by the CCB will be implemented and the status will be updated

2. Change log  Change log is used to document all change requests, both approved and also that are not-approved and their implementation status.

PMBOK 99 Copyright PMI Lahore, Pakistan Chapter 2016

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4.5 Perform Integrated Change Control Outputs 3. Project management plan updates  Project management plans will be updated including any subsidiary plans and baselines that are subject to change control process

4. Project document updates  Project documents that are related to changes shall be updated

PMBOK 100 Copyright PMI Lahore, Pakistan Chapter 2016

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4.0 Project Integration Management Project Integration Management 4.0

Develop Project Charter 4.1 Develop Project Management Plan 4.2 Direct and Manage Project Work 4.3 Monitor and Control Project Work 4.4

Perform Integrated Change Control 4.5 Close Project or Phase 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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4.6 Close Project or Phase

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

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4.6 Close Project or Phase The Close Project process will ensure that:  All actions required for the completion or exit criteria for the phase or project are taken.  Actions and activities required to transfer the products, services, or results to the next phase or operations are done  Activities to collect project or phase records, audit project success or failure gather lessons learned are carried out  Archiving of project information is done.

PMBOK 101 Copyright PMI Lahore, Pakistan Chapter 2016

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4.6 Close Project or Phase

Inputs

Tools & Techniques

3

3

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Outputs

2

110

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4.6 Close Project or Phase > Inputs 1. Project management plan 2. Accepted deliverables – These are deliverable that meet the acceptance criteria and have been approved by the project sponsor or the customer. – Acceptance is based on formal documentation. 3. Organizational Process Assets (OPAs) – Guidelines available in the data base for closing project or phase. Forms, templates, etc.

PMBOK 102 Copyright PMI Lahore, Pakistan Chapter 2016

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4.6 Close Project or Phase > Tools and Techniques 1. Expert judgment  Experts with knowledge of administrative closing will advise in closing of project/phase.  Subject matter experts will ensure that project/phase closure is done as per the standard procedures  Experts will be taken from  Other project managers within the organization

 PMO  Professional and Technical associations

PMBOK 102

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4.6 Close Project or Phase > Tools and Techniques 2. Analytical techniques Some analytical techniques shall be used to determine the success or failure of the various processes of the project. E.g. – Regression analyses An analytical technique where a series of input variables are examined in relation to their corresponding output results in order to develop a mathematical or statistical relationship.

– Trend analyses An analytical technique that uses mathematical models to forecast future outcomes based on historical results.

3. Meetings – Meetings can be Face to face or virtual. These could be formal or informal.

– Meeting are held for lessons learned, closeout, reviews, etc. Copyright PMI Lahore, Pakistan Chapter 2016

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FLOW OF DELIVERABLE AFTER IT IS COMPLETED IN EXECUTION PROCESS

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work (Execution) Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Input

Verified

Accepted

Accepted Deliverables

Transitioned Deliverables

Output

Output 115

Deliverables Deliverables Deliverables are completed in the Execution Deliverables Phase of the project Verify Scope Acceptance Quality Checks Verified Deliverables Output

Copyright PMI Lahore, Pakistan Chapter 2016

Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality Input Deliverables Quality Checks Verified Deliverables Output

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Verified Accepted Deliverables Deliverables Completed deliverable then goes to the Control Quality process (8.3) to see if it has been made as per Verify Scope Acceptance the quality requirements Accepted Deliverables

Transitioned Deliverables

Output

Output 116

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 4.6 Close project or phase

5.5 Validate Scope

8.3 Control Quality

Input

Input Deliverables

Verified Deliverables

Quality Checks

Verify Scope

Verified Deliverables

Accepted Deliverables

Output

Input After being verified that the Accepted deliverable is as per Deliverables specification it is sent to Validate Scope process (5.5) Acceptance to verify that it has been made as described in the Transitioned scope Deliverables

Output

Output 117

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

If the deliverable is verified Input that it is as per the scope, then it is passed on to Close Deliverables project or phase process (4.6) as an input where is Quality Checks goes through the acceptance process and goes outVerified as an output as Deliverables transitioned deliverable Output

Input

Input

Verified Deliverables

Accepted Deliverables

Verify Scope

Acceptance

Accepted Deliverables

Transitioned Deliverables

Output

Output 118

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Input Deliverables

Verified Deliverables

Accepted Deliverables

Quality Checks

Verify Scope

Acceptance

Verified Deliverables

Accepted Deliverables

Transitioned Deliverables

Output

Output 119

Output

Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Monitoring and Control

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope

Deliverables

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Control Scope

Control Schedule

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Develop Project Management Plan

Executing

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Planning

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Copyright PMI Lahore, Pakistan Chapter 2016

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

8

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement 2016

Control Stakeholders Engagement

120

2

11

Conduct Procurements

Close Procurements

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4.6 Close Project or Phase > Outputs 1. Final Product, Services, or Result transition – This is the handing over of the final deliverable(s) to the customer or sponsor or the transition to the next phase. – This is done with a signed acceptance documentation from the Customer.

2. Organizational process assets (OPA) updates Some of the documents that will be updated will include  Project files  Project or phase closure documents  Historical information PMBOK 104

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PMI Lahore, Pakistan Chapter PMP® Certification Course

Project Scope Management Chapter 5

Copyright PMI Lahore, Pakistan Chapter 2016

PMI – Lahore Chapter 2013 - All rights reserved.

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating

Planning

Develop Project Charter

Develop Project Management Plan

11

13

Direct & Manage Project Work

Close Project or Phase

Validate Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

6

Control Scope

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Closing

Monitoring & Control Project Work Perform Integrated Change Control

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Monitoring and Control

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Executing

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

123 2016

2

11

8

Conduct Procurements

Close Procurements

5.0 Project Scope Management Project Scope Management 5.0

Plan Scope Management 5.1 Collect Requirements

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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Product Scope Vs. Project Scope Product scope describes the characteristics of the product, service, or result to be delivered.

Project

Product

Project scope describes the work required to deliver the product, service, or result.

5.1 Plan Scope Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of creating a Scope Management Plan that documents how the scope will be defined, validated and controlled

PMBOK 105

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5.1 Plan Scope Management

Inputs

Tools & Techniques

4

2

Outputs

2

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5.1 Collect Requirements

Plan Scope Management Inputs 1.

Project Management Plan – Contains all subsidiary plans from other knowledge areas. (16 documents) 2. Project Charter – Describes high level scope, schedule and budget 3. Enterprise Environmental Factors (EEFs) • Structure and culture of the company • HR administration and policies • Outside market conditions 4. Organizational Process Assets (OPAs) • Policies & Procedures • Historical information & Lessons learnt from other projects

PMBOK 108

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Plan Scope Management Tools and Techniques 1. Expert Judgment –

Project manager can use subject matter experts to develop the scope management plan.

2. Meetings – – – –

Meeting attended by the Project Manager may include Project sponsor Selected team members Selected Stakeholders

PMBOK 109

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Plan Scope Management Outputs 1. Scope Management Plan – It provides guidance on how project scope will be defined, developed, monitored, controlled and verified. – It is a major input for • Develop Project Management Plan process • Other process of Scope Management

– Components of the scope management plan include: • Processes for developing scope statement, WBS, acceptance of deliverables, changes requests and their implementation.

PMBOK 109

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Plan Scope Management Outputs

2. Requirements Management Plan This is the second management plan from this process. – It describes how the requirement activities will be planned tracked and reported. – How requirement will be developed. – How changes in requirements will be managed – Traceability structure which will be used for managing requirements

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Project Scope Management

Plan Scope Management

5.0

Collect Requirements

131

5.1

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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Collect Requirements Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of determining, documenting and managing stakeholders’ needs and requirements to meet the project objectives.

PMBOK 110

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Collect Requirements What are requirements: • Requirements are conditions and capabilities that are required to be met by the project with relation to the product, service or result. • Some of the requirement that have to be met are related to: a) b) c) d) e)

Business Requirements Stakeholder Requirements Functional requirements Project Requirements Quality Requirements

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What are Requirements • Requirements include conditions or capabilities that are to be met by the project or to be present in the product, service or result to satisfy an agreement or other formally imposed specification • Requirements become the foundation of WBS, Cost, Schedule, Quality & Procurement • Classification of Requirements a) Business Requirements (higher level need of org. , business case) b) Stakeholder Requirements (specific to a stakeholder or a group of stakeholders)

What are Requirements a) Solution Requirements (features, functions and characteristics of the product, service or result that will meet the business and stakeholder requirements) i. Functional requirements (describes the behavior of the product, e.g. processes, data and interaction with the product) ii. Non-Functional Requirements (they supplement functional requirements and describes the environmental conditions or quality required for the product to be effective, e.g. reliability, security, safety and supportability etc.)

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What are Requirements a) Transition requirements (temporary capabilities needed to transition from current “as-in” to future “to-be” state, e.g. Training requirements, data conversion) b) Project Requirements (actions, process or other conditions the project needs to meet) c) Quality Requirements (conditions or criteria needed to validate the successful completion of a project deliverable or other project requirements)

Collect Requirements

Inputs

Tools & Techniques

5

11

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Outputs

2

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5.2 Collect Requirements

Collect Requirements Inputs 1. Scope Management Plan 2. Requirements Management Plan 3. Stakeholder Management Plan –

This is describe in Ch.13. It describes how the stakeholder engagement will be planned and managed.

4. Project Charter – The charter provides high-level project and product description.

5. Stakeholder Register – Also from Ch. 13. It Identifies all stakeholders related to the project who can provide information on developing the requirements

PMBOK 113

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Collect Requirements Tools and Techniques 1. Interviews – Aninterview is a formal or informal approach to discover information from stakeholders by talking to them directly – It is typically performed by asking prepared and spontaneous questions and recording the responses

2. Focus groups – Focus groups bring together prequalified stakeholders and subject matter experts to learn about their expectations and attitudes about a proposed product, service, or result. – Focus groups are designed to be more conversational than a one-on-one interview. PMBOK 114

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Collect Requirements Tools and Techniques 3. Facilitated workshops – These are focused sessions bringing stakeholders together to discuss the requirements. – These workshop can have cross-functional participation (e.g. operations, IT, maintenance, etc.)

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Collect Requirements Tools and Techniques 4. Group creativity techniques Group creativity techniques are used to identify product and project requirements. Some are of these are listed below:

• Brainstorming – In this technique ideas are gathered from many participants in a joint session where all are allowed to speak.

• Nominal group technique – In this technique voting is held after the brainstorming session to vote for the best solution.

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Collect Requirements Tools and Techniques 4. Group creativity techniques (contd..)

• Idea/mind mapping – In this technique ideas are created by brainstorming individually. These are then are consolidated into a single map to reflect commonality and difference in understanding and generating new ideas

• Affinity diagram – In this technique large number of ideas are sorted into groups for discussions and brain storming

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Collect Requirements Tools and Techniques 5. Group decision making techniques –

In this technique decisions are made using following methods: • Unanimity – Everyone in the group agree on a same way to go forward • Majority – More than 50% of the group agree on the way forward. • Plurality – The largest number of people in the group decide on the way forward even if not in majority.

• Dictatorship – Decision are made by one person in the group on the way forward.

6. Questionnaires and Surveys • Questionnaires and surveys can be used to get information from wide number of people

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Collect Requirements Tools and Techniques 7. Observations • A direct way of viewing individuals in their environment performing their jobs • Useful when the person doing the job is having difficulty defining their requirement • Involves “External observation”, “job shadowing” and “participant observer”

8. Prototypes • A working model of the expected product • Early feedback • Tangibles - so allows experimentation Copyright PMI Lahore, Pakistan Chapter 2016

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Collect Requirements Tools and Techniques 9. Benchmarking • Comparison of actual or planned practices to the practices of a comparable organization, in order to identify – Best practices – Generate ideas for improvement – Provide a basis for measuring performance

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Collect Requirements Tools and Techniques 10.Context Diagrams • An example of scope model • Visually depicts the product scope by showing – Business system AND – How people and other systems (Actors) interact with it

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Collect Requirements Tools and Techniques 11.Document Analysis • Finding out requirements by analyzing existing documentation and identifying relevant information relevant to the requirements • Documents include – – – –

Business case Marketing literature Agreements RFPs

Etc.

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Collect Requirements Outputs 1. Requirements Documentation •

Its components include – Business requirements (e.g. Business and project objectives for traceability) – Stakeholder requirements (e.g. impacts of other organizational areas) – Project Requirements (e.g. acceptance criteria) – Transition requirements (e.g. training needs) – Requirements Assumptions, Dependencies and Constraints

See PMBOK page 117-118 for details PMBOK 117

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Collect Requirements Outputs 2. Requirement traceability matrix This is used in tracing • Requirements to business, opportunities, goals and objectives • Requirements to project objectives • Requirements to project scope/WBS deliverables • Requirements to test strategies and test scenarios • Requirements to product design • Requirements to product development • Requirements to test strategy and test scenarios • High-level requirements to more detailed requirements • Example (Next Slide) See figure on PMBOK page 119 PMBOK 118

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PMBOK 119

151

Project Scope Management

Plan Scope Management

5.0

Collect Requirements

5.1

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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Define Scope Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 120

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Define Scope

Inputs

Tools & Techniques

4

4

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Outputs

2

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5.3 Define Scope

Define Scope Inputs 1. Scope Management Plan - describes how the scope will be managed 2. Project Charter- gives high level scope of the project 3. Requirements Documentation – give the requirements related to the project. 4. Organizational Process Assets (OPAs) • Policies, procedures, and templates for a project scope statement. • Project files from previous projects • Lessons learned from previous phases or projects

PMBOK 121

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Define Scope Tools and Techniques 1. Expert judgment – Experts are used to analyze the information that is available to develop the scope of the project. – These experts could be within the organization or from outside the organization.

2. Product analysis – Techniques are used to convert requirements into tangible products. These include systems analysis, requirements analysis, systems engineering, value engineering.

PMBOK 122

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Define Scope Tools and Techniques 3. Alternatives Generation – The goal of this technique is to develop multiple options in identifying different approaches to define scope. Some of the approaches used are • Brainstorming – getting ideas by discussions • lateral thinking – thinking in multiple directions • Analyzing alternates – Analyzing other options

4. Facilitated workshop – Meeting held to gather ideas to define scope of the project. (Explained earlier)

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Define Scope Outputs 1. Project scope statement – The project scope statement is a detailed description of the project’s deliverables and the work required to create those deliverables – It includes • • • • • •

Product scope description Product acceptance criteria Project deliverables Project exclusions Project constraints Project assumptions See PMBOK page 124 for details

PMBOK 123

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Define Scope Outputs 2. Project Document Updates – Project documents that may be updated include: • Stakeholder register • Requirements documentation • Requirements traceability matrix

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Project Scope Management

Plan Scope Management

5.0

Collect Requirements

159

5.1

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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Create WBS Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

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Create WBS

Inputs

Tools & Techniques

5

2

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Outputs

2

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5.4 Create WBS

Create WBS Inputs 1. Scope Management Plan 2. Project scope statement – describes what work is to be done 3. Requirements documentation – describes the requirements of the project. 4. Enterprise Environmental Factors (EEFs) •

Any information that could be related to WBS can be an input for creating WBS

5. Organizational process assets (OPAs) • Policies, procedures, and templates for the WBS • Project files and lessons learnt from previous projects PMBOK 127

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Create WBS Tools and Techniques 1. Decomposition • Decomposition is the subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. • Work package level is the lowest level in the WBS and no work should be left out. This is sometimes called the 100% rule. • 5 Step Approach to Decomposition 1. 2. 3. 4. 5.

PMBOK 128

Identifying and analyzing the deliverables and related work Structuring and organizing the WBS Decomposing the upper WBS levels into lower level detailed components Developing and Assigning identification codes to the WBS components Verifying that the degree of decomposition of the work is necessary and sufficient Copyright PMI Lahore, Pakistan Chapter 2016

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Create WBS Tools and Techniques Project

Control Accounts Planning packages

Product 2

Product 1

1.1

1.2

1.3

Product 3

3.1

3.2

Product 4

3.3

4.1

3.1.1 3.1.2 3.1.3 3.1.4

4.2 4.2.1 4.2.2 4.2.3

Work Packages - a deliverable at the lowest level of the WBS.

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PMBOK 129

165

See figures on PMBOK page 129130

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PMBOK 130

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PMBOK 130

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Create WBS Tools and Techniques 2. Expert Judgment – – – – –

Expert advice is sought from experts to analyze the information that is to be decomposed for creating WBS. Experts can also help when pre-defined templates are to be used for creating WBS. What to decompose? How to decompose? Decompose to what level of detail?

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Create WBS Outputs 1. Scope baseline Scope baseline is the main output from this process. It has 3 components 1. Project scope statement – From define scope 2. Work Breakdown structure – Developed in Create WBS. Identified by a code of accounts. These identifiers provide a hierarchal summation of costs, schedule, and resource information. 3. WBS dictionary – contains detailed information related to each work package. (Identifying number, description, responsibility, schedule, cost estimates, etc.)

2. Project document updates – May include updates to requirements documentation

PMBOK 131

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WBS dictionary  WBS dictionary – An important companion document to the WBS…it contains detail for each of the WBS components including such things as: • Detailed description of the components of WBS, including – Work packages – Control accounts

• • • • • • • • •

Code of Account Identifier - helps you locate it in the WBS Brief Statement of work – what is involved? Responsible parties – who’s going to do it? Mini-milestones Contractual information Quality Requirements Technical Specifications Charge codes or other costing information Associated Activities or Tasks

Project Scope Management

Plan Scope Management

5.0

Collect Requirements

5.1

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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5.5 Validate Scope Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of formalizing acceptance of the completed project deliverables

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5.5 Validate Scope

Inputs

Tools & Techniques

5

2

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Outputs

4

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FLOW OF DELIVERABLE AFTER IT IS COMPLETED IN EXECUTION PROCESS

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work (Execution) Output Deliverables 8.3 Control Quality Input

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Verified Deliverables

Accepted Deliverables

Quality Checks

Verify Scope

Acceptance

Verified Deliverables

Accepted Deliverables

Transitioned Deliverables

Output

Output 176

Deliverables

Deliverables are completed in the Execution Phase of the project

Output

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Input Deliverables Quality Checks Verified Deliverables Output

Verified Accepted Deliverables Deliverables Completed deliverable then goes to the Control Quality process (8.3) to see if it has been made as per Verify Scope Acceptance the quality requirements Accepted Deliverables

Transitioned Deliverables

Output

Output 177

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality Input

5.5 Validate Scope Input

Deliverables

Verified Deliverables

Quality Checks

Verify Scope

Verified Deliverables

Accepted Deliverables

Output

Output

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4.6 Close project or phase Input After being verified that the Accepted deliverable is as per Deliverables specification it is sent to Validate Scope process (5.5) Acceptance to verify that it has been made as described in the Transitioned scope Deliverables Output 178

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

If the deliverable is verified Input that it is as per the scope, then it is passed on to Close Deliverables project or phase process (4.6) as an input where is Quality Checks goes through the acceptance process and goes outVerified as an output as Deliverables transitioned deliverable Output

Input

Input

Verified Deliverables

Accepted Deliverables

Verify Scope

Acceptance

Accepted Deliverables

Transitioned Deliverables

Output

Output 179

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality Input

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Deliverables

Verified Deliverables

Accepted Deliverables

Quality Checks

Verify Scope

Acceptance

Verified Deliverables

Accepted Deliverables

Transitioned Deliverables

Output

Output 180

Output

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Process Groups

Knowledge Areas

Initiating

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Develop Project Charter

11

13

Closing

Develop Project Management Plan

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

DELIVERABLE

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Validate Scope Control Scope

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Monitoring and Control

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Executing Direct & Manage Project Work

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Planning

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement 2016

Control Stakeholders Engagement

181

2

11

8

Conduct Procurements

Close Procurements

5.5 Validate Scope

Validate Scope Inputs 1. 2. 3. 4.

Project Management Plan Requirements Documentation Requirements Traceability Matrix Verified Deliverables •

These are the completed deliverables that have been checked for correctness through the Control Quality Process 8.3.

5. Work Performance Data •

This data is used for validating deliverables.

PMBOK 134

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Validate Scope Tools and Techniques 1. Inspection – The goal of inspection is to ensure that both work and deliverables meet requirements and acceptance criteria. – Inspection can be done by measuring, examining, and validating. – Inspections can also be referred as audits, reviews, walk-throughs

2. Group Decision Making Techniques – Introduced in Collect requirements process it is used here to help project team, other stakeholders to reach conclusions with regard to acceptance of the deliverable. Unanimity Majority Plurality Dictatorship PMBOK 135

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Validate Scope Outputs 1. Accepted Deliverables • Deliverables that meet the acceptance criteria are formally signed off and approved by the customer or sponsor • Formal documentation received from the customer or sponsor, acknowledging formal stakeholder acceptance of the project’s deliverables is forwarded to the Close Project or Phase process (4.6).

2. Change Requests • Those completed deliverables that have not been formally accepted are documented, along with the reasons for nonacceptance. Those deliverables may require a change request for defect repair. • The change requests are processed for review and disposition through the Perform Integrated Change Control process (see Section 4.5) PMBOK 135

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Validate Scope Outputs 3. Work Performance Information • Includes information about project progress, such as – – – –

Which deliverables have started So far progress of the deliverables Which deliverables have been finished Which deliverables have been accepted

4. Project Document Updates • Any documents related to deliverable or project status are updated

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Plan Scope Management

5.0

Collect Requirements

185

5.1

5.2 Define Scope 5.3 Create WBS 5.4 Validate Scope 5.5 Control Scope 5.6 Copyright PMI Lahore, Pakistan Chapter 2016

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5.6 Control Scope

Inputs

Tools & Techniques

5

1

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Outputs

5

187

5.6 Control Scope

Control Scope Inputs 1. Project management plan • Project management plan has the following information which is used in Control Scope – – – – –

2. 3. 4. 5.

Scope Baseline Scope Management Plan Change Management Plan Configuration Management Plan Requirements Management Plan

Requirements documentation Requirements traceability matrix Work Performance Data Organizational Process Assets

PMBOK 138

– Policies for controlling scope, procedures, and guidelines, reports Copyright PMI Lahore, Pakistan Chapter 188 2016

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Control Scope Tools and Techniques 1. Variance Analysis – Variance analysis is a technique used to determine the cause of difference between the baseline and the actual performance – Project performance measurements are used to assess the magnitude of variation from the original scope baseline – Important aspects of project scope control include – determining the cause and degree of variance relative to the scope baseline – deciding whether corrective or preventive action is required PMBOK 139

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Control Scope Outputs 1. Work performance information –

2.

The work performance information will provide information on how the scope is performing, identify variance and causes of variance, schedule impact and future forecast of performance

Change requests – Change request may be generated if there is any changes in scope after the analyses carried out in the control process

3. Project management plan updates – Scope Baseline and other base lines will be updated

PMBOK 139

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Control Scope Outputs 4. Project document updates – Requirements Documentation – Requirements Traceability Matrix

5. Organizational process assets update – Variance Causes – Corrective actions and their reasons – Lessons learned related to project scope control

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PMI Lahore, Pakistan Chapter PMP® Certification Course

Project Time Management Chapter 6

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PMI – Lahore Chapter 2013 - All rights reserved.

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope Control Scope

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

7

Control Schedule

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Monitoring and Control

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Develop Project Management Plan

Executing

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Planning

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

193 2016

2

11

8

Conduct Procurements

Close Procurements

Project Time Management Project Time Management

Plan Schedule Management 6.1

6.0

Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Schedule Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 145

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195

Plan Schedule Management

Inputs

Tools & Techniques

4

3

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Outputs

1

196

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6.1 Plan Schedule Management

Plan Schedule Management Inputs 1. Project Management Plan – Provides Information on Scope Baseline and the 3 components: 1. Project Scope Statement, 2. WBS 3. WBS Dictionary

2. Project Charter from 4.1 – Provides information on high level scope, summary budget, project milestone schedule, name of project manager and the name of sponsor.

PMBOK 146

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6.1 Plan Schedule Management

Plan Schedule Management Inputs 3. Enterprise Environmental Factors (EEFs) • • • •

Organizational Culture Organizational Structure Resource Availability Project Management Software Provides Scheduling Tool

4. Organizational Process Assets (OPAs) • Historical information • Schedule control tools • Templates

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Plan Schedule Management Tools and Techniques 1. Expert judgment – Experts can provide useful information based on historical information for developing the Schedule. – Subject matter experts can suggest various method for developing the schedule plan.

2. Analytical Techniques – Various analytical techniques can be used to determine the best way of developing the schedule. Such as: • Rolling Wave Planning – i.e. developing plan as you go along • Adjusting Leads And Lags – giving time between jobs • Methods For Reviewing Schedule Performance

PMBOK 147

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Plan Schedule Management Tools and Techniques 3. Meetings – Planning meetings are held for information gathering, brainstorming, and decision making to develop schedule management plan.

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Plan Schedule Management Outputs 1. Schedule Management Plan – The output from this process is the Schedule Management Plan. – This gives the methodology that will be used to develop, monitor, and control the project schedule. – Contents of the plan may include: • Level of accuracy to be considered for duration estimates. • Project measurement rules including the Earned Value Management for monitoring and control (Chapter 7). • Reporting formats to be used

PMBOK 148

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Project Time Management Project Time Management

Plan Schedule Management

6.0

Define Activities 6.2

6.1

Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.2 Define Activities

Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 149

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203

6.2 Define Activities

Inputs

Tools & Techniques

4

3

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Outputs

3

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6.2 Define Activities

Define Activities Inputs 1. Schedule Management Plan 2. Scope baseline – Scope baseline consists of three components: • Project scope statement : Description of product scope, project deliverables and user acceptance criteria • WBS: Decomposition of the deliverables into work packages • WBS dictionary: Detailed description of the work and the WBS elements

PMBOK 150

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6.2 Define Activities

Define Activities Inputs 3. Enterprise environmental factors (EEFs) – Organizational culture and structure – Project Management Information System (PMIS)

4. Organizational process assets (OPAs) – Policies, procedures, and guidelines – Lessons-learned and historical information from previous projects

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Define Activities Tools and Techniques 1. Decomposition – In Create WBS process, the project scope was decomposed down to the work package level. – Here in Define activities process, the Work Packages are decomposed into ACTVITIES. – Activities represent the actual work required in completing a work package. – These activities are defined for each work package and documented

PMBOK 151

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Define Activities Tools and Techniques 2. Rolling wave planning • Rolling wave planning is a form of progressive elaboration of work to be done. • Early in the life cycle of the project, when information is top-level and less developed, the project’s far-term work may be planned at the work package level • Later in the life cycle of the project, when this far-term work is near-term and detail is clearer, these work packages can then be further detailed - or decomposed - into activities.

3. Expert Judgment • Experts from the team or outside can be involved in decomposition and defining of activities. Copyright PMI Lahore, Pakistan Chapter 2016

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Define Activities Outputs 1. Activity list – The result of the decomposition work is the ACTIVITY LIST. – The Activity List contains the details of the decomposition of work packages into activities that are required to do the work.

2. Activity attributes – The characteristics associated with the activities on the Activity List, including identification numbers, resource requirements, lead and lags, predecessor and successor activities, activity codes, and more.

PMBOK 152

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Example of Activity List Project Name: Prepared By: Date: Project Phase: Control Account: Planning Package: Work Package: Activity: Construction House Interior Doors & Windows Procurement Determine specific hardware Order hardware through Purchasing Receive and inventory hardware Hardware Assembly Build frames Attach hand-holds Attach swing latches Installation

Activity Attributes

Duration

Start Date

End Date

Resource

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Define Activities Outputs 3. Milestone list – A milestone is a significant point in the project with zero duration. – Milestones are used to show significant events in a project schedule. – Milestone list will show the dates the activities will start and finish so that this information can be used for developing the schedule.

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Plan Schedule Management

6.0

Define Activities 6.2

6.1

Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.3 Sequence Activities Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of identifying and documenting relationships among the project activities. This determines which activity will come first and which activity will come later.

PMBOK 153

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6.3 Sequence Activities

Inputs

Tools & Techniques

7

3

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2

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6.3 Sequence Activities

Sequence Activities Inputs 1. 2. 3. 4. 5. 6. 7.

Schedule Management Plan from 6.1 Activity list from 6.2 Activity attributes from 6.2 Milestone list from 6.2 Project scope statement from 5.3 Enterprise environmental factors (EEFs) Organization process assets (OPAs)

PMBOK 153

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Sequence Activities Tools and Techniques 1. Precedence diagramming method (PDM) – Precedence diagraming method (PDM) is used to create network of activities using boxes (called nodes) to show the activities and arrows to link them. It is also know as Activity-on-Node diagram. – PDM is used to establish the correct relationship amongst activities.

Activity A

Install Server

Activity B Install and configure operating system

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Activity C Install and configure security software

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Sequence Activities Tools and Techniques • In the Precedence diagramming method there are four possible relationships between two activities b)

1. 2. 3. 4.

Finish to start Finish to finish Start to Start Start to finish

See next page

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Sequence Activities Tools and Techniques 1. Finish to start • In this the second activity will start only after the first activity is complete • We cant start installing the operating system unless the installation of the server is completed

Activity A

Activity B

Install Server

Install and configure operating system

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Sequence Activities Tools and Techniques 2. Finish to finish • In this possibility activity A must finish before activity B can finish. • I can’t finish editing a report unless you complete writing the report.

Activity A

Activity B

Writing a report

Editing the report

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Sequence Activities Tools and Techniques 3. Start to start • In this activity A must start before activity B can start

• The contractor cannot start levelling the floor unless the process of pouring of concrete starts.

Activity A

Activity B

Laying of chips floor

Leveling of chips floor

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Sequence Activities Tools and Techniques 4. Start to finish • In this activity B cannot finish until the activity A starts. • Operator on night shift B cannot leave unless the operator on morning shift A takes over. See Figure on PMBOK page 157

Activity A

Activity B

Operator on morning shift

Operator on night shift

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Sequence Activities Tools and Techniques 2. Dependency determination There are 4 major dependencies that are used in sequencing activities: a) Mandatory Dependencies (hard logic) – Mandatory dependencies are those that are required due to the nature of the work or are required legally or contractually. – E.g. It is not possible to build the wall until the foundation has been laid. b) Discretionary Dependencies (Soft Logic, Preferential Logic) – These dependencies are based on best practices within a particular situation. – These are used where a specific sequence is preferred, although there may be other sequences available. Copyright PMI Lahore, Pakistan Chapter 2016

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Sequence Activities Tools and Techniques 2. Dependency determination (contd…) b) External Dependencies – These are due to some relationship between the project activities and non-project activities. – These are usually beyond the control of the team – E.g. the team cannot test a software unless they get delivery of the test program from an external source c) Internal dependencies – These are based on precedence relationship between project activities which is under the control of the project team. – E.g. Team A can’t start a a pump until it is connected to electric power by team B Copyright PMI Lahore, Pakistan Chapter 2016

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Sequence Activities Tools and Techniques 3. Leads and lags Lead – Lead means starting an activity before the predecessor had finished. (Taking a head start) – E.g. Start working on construction 5 days before the design is completed. (FS -5 days)

Lag – Lag is a delay before the successor activity can start. (Waiting time) – E.g. Allowing the concrete to set for 7 days before building on it. (FS +7days) See Figure on PMBOK page 158 Copyright PMI Lahore, Pakistan Chapter 2016

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PMBOK 158

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Sequence Activities Outputs 1. Project schedule network diagrams – It is a diagram of activities shown in the required order of sequence. – A project schedule network diagram can be made manually or by using project management software. – It will all activities, relationship to each other and the sequence.

See Figure on PMBOK page 160 PMBOK 159

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PMBOK 160

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Sequence Activities Outputs 2. Project document updates • Project documents that may require to be updated include – Activity lists – Activity attributes – Milestone list – Risk register

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Exercise Draw a Network Diagram Using the Precedence Diagramming Method (PDM)

Activity

Predecessor

Start A B C D E F End

Start Start A, B C C D F, E

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Solution

D

A Start

F

C

B

End

E

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Project Time Management Project Time Management

Plan Schedule Management 6.1

6.0

Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.4 Estimate Activity Resources Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity. The output from this process is used for developing the project estimates.

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6.4 Estimate Activity Resources

Inputs

Tools & Techniques

8

5

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Outputs

3

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6.4 Estimate Activity Resources

Estimate Activity Resources Inputs 1. Schedule Management Plan from 6.1 2. Activity list from 6.2– Describes all activities that have been scheduled on the project.

3. Activity attributes from 6.2- Activity attributes give description of the activity such as predecessor, successor activity, lead, lag, description and more. 4. Resource calendars from 9.2 (HR Management) - Resources calendar is an output of Acquire Project Team and Conduct Procurements. It shows the availability of the resources for the project. (Both people and equipment).

PMBOK 162

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6.4 Estimate Activity Resources

Estimate Activity Resources Inputs 5. Risk Register from 11.2 (Risk Management) - Risks register is an output from Identify Risks. Identifies risks that may impact the resource selection and their availability.

6. Activity Cost Estimates from 7.2 (Cost Management) - Cost of resource will have an impact on the selection of resource

7. Enterprise environmental factors (EEFs) - Information on inhouse resources that will help in estimating resources for activities.

8. Organizational process assets (OPAs) - Policies and procedures regarding HR management and historical information regarding resources that can be used in developing resource estimates

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Estimate Activity Resources Tools and Techniques 1. Expert judgment – Experts advice from experienced persons in resource estimation can help in developing activity resource estimates.

2. Alternatives analysis – This pertains to finding out other methods of doing estimation of activity resources. These could be related to using different skilled manpower, different type of machines, automated systems, and more

3. Published estimating data – Available published data can be used to estimate activity resources. Information such as labor rates, material rates, etc. for different countries and geographical locations can be helpful in this regard.

PMBOK 164

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Estimate Activity Resources Tools and Techniques 4. Bottom-up estimating • It is an estimating tool which is more accurate, but more time consuming and more costly. • Estimation of resources is done by starting at the bottom of WBS (work package) and aggregating all the way up top to the control account. • This method gives high degree of accuracy as all factors are taken into account.

5. Project management software • Various software are available that can be used to develop resource estimates. • Examples include Primavera and Microsoft Project Copyright PMI Lahore, Pakistan Chapter 2016

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Estimate Activity Resources Outputs 1. Activity resource requirements • This show the resources required for each activity to be completed. • This also shows the type and quantities of resources required for each work package. • It will also show the basis used for developing the estimates, assumptions, availability of resources and the quantities used.

PMBOK 165

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Estimate Activity Resources Outputs 2. Resource breakdown structure • The resource breakdown structure is a hierarchical structure of the resources. • It is organized by the category and type of resources. Such as, labor, material, equipment, supplies, skill level of manpower, etc.

3 Project document updates • • • •

Documents that will be updated will include: Activity list Activity attributes Resource calendars Copyright PMI Lahore, Pakistan Chapter 2016

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6.0

Define Activities 6.2

6.1

Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.5 Estimate Activity Durations Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 165

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6.4 Estimate Activities Durations

Inputs

Tools & Techniques

10

6

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Outputs

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6.5 Estimate Activity Durations

Estimate Activities Durations Inputs 1. Schedule Management Plan from 6.1 2. Activity List from 6.2 3. Activity Attributes from6.2 4. Activity Resource Requirements from 6.4 – Gives details of resources required for each activity. – The duration will depend on the type of resources assigned to an activity and also the availability of these resources. – E.g. » If lower-skilled resources are assigned to an activity the efficiency may be reduced, hence increase in the duration for completing the activity.

PMBOK 166

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6.5 Estimate Activity Durations

Estimate Activities Durations Inputs 5. Resource calendars (HR Management) – Resource Calendars shows the availability of resources.

6. Project scope statement – The assumptions and constraints listed in the scope statements can influence the duration of the activities. – Constraints such as working conditions, availability of utilities, availability of resources, can effect the duration of activities. – Incorrect assumptions can also effect the duration of activities

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6.5 Estimate Activity Durations

Estimate Activities Durations Inputs 7. Risk Register from Risk Management – Risk register has the list of identified risks. Some risks may affect the duration of activities. 8. Resource Breakdown Structure from HR Management – Shows the breakdown of the type of resources that are available.

9. Enterprise environmental factors (EEFs) – Any databases related to duration estimates can be used, – Other related information available can also be used for activity duration estimation 10. Organizational process assets (OPAs) – Project Scheduling methodology – Historical information and Lessons learned Copyright PMI Lahore, Pakistan Chapter 2016

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Estimate Activities Durations Tools and Techniques 1. Expert Judgment – Expert advice can be used in developing estimates based on historical information.

2. Analogous Estimating – Analogous estimating is an estimating method which is less time consuming and less expensive, but is less accurate. – The basis for estimating is using cost/schedule data from previous projects that are similar to current project. – It is also know as top-down estimating – It is dependent on historical information and expert judgement. – It is used when estimating time is limited or when information regarding the activity is less known. PMBOK 169

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Estimate Activities Durations Tools and Techniques 3. Parametric Estimating – This method uses simple mathematical relationships based on standard or historic data as parameters for estimation. – E.g. number of bricks laid per hour can be used to determine the time required to build the wall. – The estimates can be fairly accurate and can be used for segments of the project or whole project. – It is used frequently in project estimations.

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Estimate Activities Durations Tools and Techniques 4. Three-point Estimates – It is also know as Program Evaluation and Review Technique (PERT). – The method takes into account the uncertainty related to estimates. So, instead of considering only one estimate this method uses three estimates.

– Optimistic (O), Pessimistic (P), and Most likely (M). – Two method for calculations are used. – Triangular distribution: (O+M+P)/3 – Beta distribution: (O+4M+P)/6 (Gives twice the weight to most likely)

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Estimate Activities Durations Tools and Techniques 5. Group Decision Making Techniques The objective of using group decision making technique is to get the team involved in estimation activity. This helps in getting better estimates and also gets commitment from the team on the accuracy of the estimates.

Unanimity Majority Plurality Dictatorship

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Estimate Activities Durations Tools and Techniques 6. Reserve Analysis – There are two type of reserve that are used in projects. – Contingency Reserve – for known unknown risks. – These are those risks that can be quantified and a contingency reserve in terms of cost/time is kept for them.

– Management reserve – for unknown unknown risks. – This reserve is for changes to project cost/time that has not been anticipated. This reserve is held outside the baselines. – As the project proceeds the reserves should be monitored. If the reserves are depleting this would mean that the initial estimates were not accurate.

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Estimate Activities Durations Outputs 1. Activity duration estimates • Activity duration estimates are the estimated time periods that will be required to complete an activity. • These are expressed in as time durations such as minutes, hours, days, weeks, months, years…

2. Project document updates • Project documents that will get updated are: • Activity attributes related to activity list • Assumptions used in developing the activity duration estimate such as skill levels and availability

PMBOK 172

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Project Time Management Project Time Management

Plan Schedule Management

6.0

Define Activities 6.2

6.1

Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.6 Develop Schedule Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of analyzing activity sequences, resource requirements, durations, and schedule constraints to create the Project Schedule Model

PMBOK 172

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6.6 Develop Schedule

Inputs

Tools & Techniques

13

8

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Outputs

6

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6.6 Develop Schedules

Develop Schedule Inputs 1. Schedule Management Plan from 6.1 • Provide information on what tools and techniques to use

2. Activity list from 6.2 • Provides the activities to be included in the schedule

3. Activity attributes from 6.2 • Provides details of the activities

4. Project schedule network diagrams from 6.3 • Shows the sequence of activities

5. Activity resource requirements from 6.4 • Provides information on what resources will be used 6.

Resource calendars from 9.2 (HR) and 12.2 (Procurement) • Provides information on the resources availability

7. Activity duration from 6.5 • Provides information on the duration of activities PMBOK 174

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6.6 Develop Schedules

Develop Schedule Inputs 8. Project scope statement from 5.3 • Provides information on assumptions and constraints which could impact the project schedule

9. Risk Register from 11.2 • Provides information on the risk associated with the project

10. Project Staff Assignments from 9.2 • Provides information on various people assigned to do the work

11. Resource Breakdown Structure • Provides information on the type of resources used for the project

12. Enterprise environmental factors (EEFs) 13. Organizational process assets (OPAs)

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Develop Schedule Tools and Techniques 1. 2. 3. 4. 5. 6. 7. 8.

Schedule network analysis Critical path method Critical chain method Resource Optimization Techniques Modeling Techniques Leads and Lags Schedule compression Scheduling tool

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Develop Schedule Tools and Techniques 1. Schedule network analysis • In this technique analyses of the network diagram is carried out to get information for developing the schedule. • It helps in determining the start and finish dates of the activities. Following methods are used in analyses: – Critical path method – Critical chain method – What-if analysis – Resource Optimization

PMBOK 176

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Develop Schedule Tools and Techniques 2. Critical path method – The objective of this method is find the critical path of the network diagram. – Critical path is the path in the network diagram that represent the longest path through the project. – To find the critical path, the start and finish dates of all activities in the network diagram are determined and by calculating the forward and backward pass the critical path can be determined (see example on the next page)

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PMBOK 177

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See Figure on PMBOK page 177

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Using the Critical Path Method for the For the activities listed below carry out a forward and backwards pass to find the Critical Path and Float.

Activity

Predecessor

Duration (Elapsed Time)

Start A B C D E F End

Start Start A, B C C D F, E

0 4 6 7 5 5 7 0

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Solution

1

F=2

A 0

3

4 4

14

D 6

7

Start 0

F=0

C 1

F=0

B 1

F=0

6 6

6

7

13 7

13

14

18 5

19

18

19

F=0

F

25 7

25

25

Finish 14

F=7

E 21

25 18 5

25

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Develop Schedule Tools and Techniques 3. Critical chain method • Critical Chain Method is a method in which the team places buffers on the scheduled path to account for limited resources and/or project uncertainties. • It adds Duration buffers on any schedule path • Project buffers are placed at the end of the project, and protects target finish date from slippage. • Feeding buffers are placed where activities not on the Critical Chain feed into critical chain to protect the chain from slippage. See Figure on PMBOK page 178 Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Schedule Tools and Techniques 4. Resource Optimization Techniques • These are techniques that are used to optimize the resources that are being used in the project. • In some cases the schedule will be adjusted according to the availability or non-availability of the resources. • In other cases that schedule will be adjusted to level the resources to avoid peak and troughs • The main aim is to keep the level of resources as constant as possible. • The same can be applied to other resources, such as heavy equipment, machinery, etc.

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Develop Schedule Tools and Techniques 4. Resource Optimization Techniques – Resource Smoothing is used to adjust activities to smooth resources. – It is done in a way that the critical path is not changed. – The adjustment is done by the float that is available between the activities in the schedule.

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Develop Schedule Tools and Techniques 5. Modeling Techniques • • • •

What if scenario analysis is the process of evaluating scenarios in order to predict their effects, positively or negatively on project objectives. In this analyses the questions ‘What happens if Scenario X happens’ is analyses. Network analyses is carried to compute different scenarios such as delay in delivery of a major component or external factors such as strikes, etc. The out come of the analyses can be used to determine the feasibility of the project schedule under the adverse conditions and can be used in preparing a contingency or response plans to overcome or mitigate the impact of unexpected situations.

PMBOK 180

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Develop Schedule Tools and Techniques 5. Modeling Techniques •

Simulations. Simulation is a technique in which multiple project durations are calculated using different sets of activity assumptions, using probability distribution constructed from three point estimation to account for uncertainty.



Most common simulation technique used is Monte Carlo analyses in which a distribution of possible activity durations is defined for each activity and used to calculate a distribution of possible outcomes for the total project.

PMBOK 180

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Develop Schedule Tools and Techniques 6. Leads and lags –

Leads and lags are adjusted in the process of develop schedule with the objective of getting the optimized schedule.

7. Schedule compression – Schedule compression is applied to try and reduce the schedule without changing the project scope and other parameters. – Two techniques are used in this: – Crashing. In this technique the schedule is reduced by adding extra resources or adding extended hours to reduce the time for completing the work. – Fast Tracking. In fast tracking the activities are performed in parallel to reduce the time of completion. Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Schedule Tools and Techniques 8. Scheduling tool – –

Various scheduling tools are available that can be used for scheduling purposes in the developing schedule. E.g. MS Project, Primavera, Excel spreadsheet

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Develop Schedule Output 1. Schedule baseline –

The output of this process is the schedule baseline. • It is the final version of the schedule model that has been approved for implementation. • It is used for as a basis for tracking the progress of the project • This version can only be changed after getting approval as per the Integrated Change Control process. • The schedule baseline becomes part of the project management plan.

PMBOK 181

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Develop Schedule Output 2.

Project schedule

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See Figure on PMBOK page 183

Milestone schedule

Summary schedule

Detailed schedule

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Develop Schedule Output 3. Schedule data • The schedule data is the data that is part of the schedule baseline. This included schedule milestones, schedule activities, activity attributes, and identified assumptions and constraints

4. Project Calendars • Project Calendars shows the working days, shifts and other related information that are available for carrying out the project activities

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Develop Schedule Output 5. Project Management Plan Updates • Due to development of schedule, the project management plan will be also get updated

6. Project document updates • Other documents that will be updated will include • Activity Resource Requirements, activity Attributes, Calendars, Risk Register

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Project Time Management Project Time Management

Plan Schedule Management 6.1

6.0

Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 6.7 Copyright PMI Lahore, Pakistan Chapter 2016

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6.7 Control Schedule Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of monitoring the status of the project to update project progress and manage changes to the schedule baseline

PMBOK 185

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6.7 Control Schedule

Inputs

Tools & Techniques

6

7

Outputs

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6.7 Control Schedule

Control Schedule Inputs 1. Project management plan from 4.2 – The project management plan contains both the Schedule Management Plan and the schedule baseline which is used in controlling the schedule.

2. Project schedule from 6.6 – This is the final and updated version of the project schedule.

3. Work performance Data from 4.3 – This is the data that is available for analyses related to the progress of various activities of the project.

PMBOK 187

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6.7 Control Schedule

Control Schedule Inputs 4. Project Calendars from 6.6 • Gives the days on which the project work will be carried out.

5. Schedule Data from 6.6 • The schedule data is the data that is part of the schedule baseline. This included schedule milestones, schedule activities, activity attributes, and identified assumptions and constraints

6. Organizational process assets (OPAs) • Schedule control policies, procedures, and guidelines • Schedule control tools that can be used for monitoring and reporting.

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Control Schedule Tools and Techniques 1. Performance reviews – – – –

Trend Analysis is carried out to determine the performance of the project activities over time. Critical Path Method is used to compare the progress along the critical path can help determine schedule status. Critical Chain method is used to compare buffer that is remaining to the amount of buffer that may be required to protect the delivery date. Earned Value Management is used to asses the variation from the actual. Schedule performance measurements (SV, SPI) are used for this purpose. (More in Cost Control process)

2. Project management software ₋ Project Management Software can help in determining performance of the project activities and comparing these with plan. PMBOK 188

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Control Schedule Tools and Techniques 3. Resource Optimization Techniques – –

Resource Leveling can be used for controlling the schedule Resource Smoothing can also be used for controlling the schedule.

4. Modeling Techniques –

What-if scenarios and simulations can be used for monitoring and controlling schedule. (slide 107)

5. Leads and lags ₋ Adjusting lead and lags is applied during network analyses to bring project activities that are behind into alignment with the plan.

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Control Schedule Tools and Techniques .

6. Scheduling compressions ₋ Fast tracking and crashing techniques are used to bring project activities that are behind into alignment with the plan.

7. Scheduling tool ₋ Manual or automated methods are used to carry out analyses in order to generate updated project schedule

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Control Schedule Outputs 1. Work performance information • Work performance information is calculated from the data that is available regarding the performance of the project activities.

2. Schedule Forecasts • These are estimates based on the performance of the project activities. Can be calculated using Earned Value Management EVM. Schedule Variance and Schedule performance Index are used to calculate the forecasts. (Covered in Cost Management)

3. Change requests • Change requests may be generated if any changes are required in the schedule.

PMBOK 190

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Control Schedule Outputs 4. Project management plan updates • Some documents that may required updates are: • Schedule baseline, Schedule management plan, Cost baseline

5. Project document updates • Schedule Data • Project Schedule • Risk Register

6. Organizational process assets update Some OPAs that will require updates • Causes of variances • Corrective actions, lessons learned. Copyright PMI Lahore, Pakistan Chapter 2016

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PMI Lahore, Pakistan Chapter PMP® Certification Course

Project Cost Management Chapter 7

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Monitoring and Control

Closing

Develop Project Management Plan

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope Control Scope

Control Schedule

Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

4

Control Costs

Plan HR Management

Communication Management

Procurement Management Stakeholders Management

Executing Direct & Manage Project Work

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Planning

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

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Plan Risk Response Plan Procurement Management

Identity Stakeholders

8

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

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Conduct Procurements

Close Procurements

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Cost Management Project Cost Management

Plan Cost Management

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7.1 Estimate Costs

7.2 Determine Budget 7.3 Control Costs 7.4 Copyright PMI Lahore, Pakistan Chapter 2016

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7.1 Plan Cost Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process that establishes the policies, procedures and documentation for planning, managing, expending and controlling project costs

PMBOK 195

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7.1 Plan Cost Management

Inputs

Tools & Techniques

4

3

Outputs

1

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7.1 Plan Cost Management

Plan Cost Management Inputs 1. Project Management Plan • Will provide information on Scope baseline, Schedule baseline

2. Project Charter • Will provide information on high level summary budget for the project

3. Enterprise environmental factors (EEFs) • Organizational culture/structure • Marketplace conditions • Currency exchange rates and other financial information.

4. Organizational process assets (OPAs) • Financial control procedures • Financial database • Historical information and lessons learnt database

PMBOK 196

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Plan Cost Management Tools and Techniques 1. Expert Judgment • Expert advice will be sought for developing the Cost Management Plan. Information from previous project can also be used in developing the plan.

2. Analytical Techniques • Different analytical techniques will be used for developing the cost management plan. • Analyses will be done to determine how the project will be funded. (Self vs. borrowing) • Other analyses will include make or buy decisions and renting Vs. leasing options, etc.

3. Meetings • Meetings are be held to discuss and develop the Cost Management plan. PMBOK 196

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Plan Cost Management Outputs 1. Cost Management Plan – The output of this process is the cost management plan. – This plan describes how the cost of the project will be estimated, how the budget will be developed and how the cost will be controlled. – Some of the important information this plan will include:

– Units of measure to be used for developing costs. E.g. Hours, days, weeks, or lump-sum. – Precision of calculation that will be used while calculating the costs: 10, 100, 1,000, 10,000, 100,000, etc. …

PMBOK 196

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Plan Cost Management Outputs Cost Management Plan (contd…) – Level of accuracy that will be used in calculations. 5%, 10%, 15%, 20% – How the costs be aggregated: • The work breakdown structure (WBS) will be used to provide the framework for the cost management plan • Each control account has a unique code account that links directly to the accounting system • Cost is controlled at the control account level. • Each control account is assigned a unique code or account number(s) that links directly to the performing organization’s accounting system Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Cost Management Outputs Cost Management Plan (contd…) - Control thresholds that will be used in controlling the cost and monitoring the performance of the project. For example: - Variance thresholds for monitoring cost performance may be specified to indicate an agreed-upon amount of variation to be allowed before some action needs to be taken. - Thresholds are typically expressed as percentage deviations from the baseline plan – Plan will include the Performance measurement method that will be used for monitoring the cost of the project. E.g. Earned Value Management (EVM). (will be explained later) – The plan will also specify the reporting formats that will be used for monitoring and reporting the project costs – Additional Details such as funding, currency exchange fluctuations, cost recording shall also be part of the cost management plan Copyright PMI Lahore, Pakistan Chapter 2016

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Project Cost Management

Plan Cost Management

7.0

7.1 Estimate Costs 7.2 Determine Budget 7.3 Control Costs 7.4

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7.2 Estimate Costs Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 200

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7.2 Estimate Costs

Inputs

Tools & Techniques

7

10

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7.2 Estimate Costs

Estimate Costs Inputs 1. Cost Management Plan – describes how the costs are to be managed. 2. Human Resource Management Plan (Chapter 9) – This is an output of Plan HR Management. This plan provides information related staffing requirement, compensation rates, staff rewards, vacations days, working hours and any other information that could be useful in estimating costs.

3. Scope baseline – Scope baseline provides information on estimation of cost for various jobs. It has three components: – Project scope statement + WBS + WBS Dictionary

PMBOK 202

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7.2 Estimate Costs

Estimate Costs Inputs 4. Project Schedule - This provides information on the jobs that have been scheduled

5. Risk register – provides information on identified risks (Chapter 11) 6. Enterprise environmental factors (EEFs) • Market conditions and Commercial information

7. Organizational process assets (OPAs) • Cost estimating policies, templates. • Historical information and Lessons learned Copyright PMI Lahore, Pakistan Chapter 2016

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Estimate Costs Tools and Techniques 1. Expert Judgment • Expert advice will be solicited for carrying out estimating of costs.

2. Analogous estimating • Also know as Top Down approach for estimation. • It is done by using values from similar projects and historical information available. • The information is adjusted to the present conditions. • The method is not very accurate, is less costly and can be done in shorter period of time.

PMBOK 204

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Estimate Costs Tools and Techniques 3. Parametric estimating • In this method parameters are used for developing the costs. E.g. cost per sq. ft., cost per cubic meter of concrete, cost per ton of steel, etc. • This method is more accurate and is used for making bill of quantities (BOQ ).

4. Bottom-up estimating • This is the most accurate method for estimating costs. • Costing is done for each individual work package separately and rolled up to the control account and up the total cost of the project. • This method is more time consuming, hence more costly.

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Estimate Costs Tools and Techniques 5. Three Point Estimates • • • • • •

This estimation method is also called from Program Evaluation and Review Technique (PERT). The objective is to reduce the bias in estimation by using 3 values, optimistic (O), pessimistic (P), most likely (M). There are 2 equations that are used for calculating the estimated costs: Triangular distribution: (O+M+P)/3 and Beta distribution: (O+4M+P)/6 Generally the beta distribution equations is used for estimation.

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Estimate Costs Tools and Techniques 6. Reserve analysis – There are two type of reserves that are used in projects. – Contingency reserves • Contingency reserves are for uncertain events that are known. These are called known-unknowns. • This means that you know that there could be unknown event in future. E.g. Rain in monsoons, non-availability of manpower for construction during the cutting of wheat season, so you keep some contingency in reserve for that event if it happens. If the event happens then the contingency reserve is used. • This contingency reserve is added to the cost baseline of project.

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Estimate Costs Tools and Techniques 6. Reserve analysis (contd..) – Management reserves – The second type of reserve is Management Reserve • Management reserves is kept by the management and are for unknown-unknowns. • This means that the managements wants to keep some reserve for some event that may happen in future, and may effect the Project. • E.g. Delay due to unforeseen circumstances, such and strikes, change in political environment, etc. • So the management can keep some reserve that can be used in case needed. • Management reserves are not part of the project cost baseline.

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Estimate Costs Tools and Techniques 7. Cost of Quality • These are costs that are related to managing quality. These are cost of failures and costs of carrying out quality checks and quality controls. (Covered later in Quality Management)

8. Project management estimating software • Software for managing project such as Primavera, MS Projects, MS office spreadsheets, can be used for estimating costs and carrying out calculations.

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Estimate Costs Tools and Techniques 9. Vendor bid analysis • Vendors bids analyses can also be useful for estimating costs. The bids can provide information on the costing of various jobs.

10. Group Decision Making Techniques Some group decision making techniques used are: • Brainstorming for generating ideas • Delphi Technique • Nominal group technique

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Estimate Costs Outputs 1. Activity cost estimates • The main output of this process is the estimated cost of all activities required to complete the work related to the project. • These estimates include all factors including manpower, material to be used, equipment required, facilities, information technology required, etc., and factors that may be related to inflation.

PMBOK 207

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Estimate Costs Outputs 2. Basis of estimates (BoE) • Basis of developing the estimates that are used in the estimating process should also be part of the output, so that there is a clear understanding on how the costs were derived. • These should include assumption, constraints, range of possible estimates, and confidence level of estimates.

3. Project document updates • Some project documents will get updated including the risk register

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Project Cost Management

Plan Cost Management

7.0

7.1 Estimate Costs 7.2 Determine Budget 7.3 Control Costs 7.4

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Determine Budget Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline The project budget is developed from the estimates in the previous process. This is done by adding all the costs of all work packages and adding these together to form the budget.

PMBOK 208

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Determine Budget

Inputs

Tools & Techniques

9

5

Outputs

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7.3 Determine Budget

Determine Budget Inputs 1. Cost management plan 2. Scope baseline 3. Activity cost estimates 4. Basis of estimates 5. Project Schedule – gives the start and finish dates of the project.

Next page …

PMBOK 209

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7.3 Determine Budget

Determine Budget Inputs 6. Resource calendar (HR Management) • Provides information on which resources are assigned to the project

7. Risk Register (Risk Management) • Provides information on the cost of risks to be taken into consideration.

8. Agreements (Procurement management) • Any agreements that have been signed with any supplier or vendor

9. Organizational Process Assets (OPAs) • Policies, procedures and guidelines • Cost budgeting tools • Reporting methods Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Budget Tools & Techniques 1. Cost aggregation – Cost aggregation is the process by which the estimates developed of work packages are added and rolled up to the control account level. – These cost figures are then added together to determine the total budget of the project. – Contingency figures are also added to the work package estimates.

PMBOK 201

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Develop Budget Tools & Techniques 2. Reserve analysis – Contingency reserve and Management reserves are taken into consideration while determining the budget.

3. Expert judgment – Subject matter experts can help in development of the budget, especially with expertise in financial planning and budgeting.

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Develop Budget Tools & Techniques 4. Historical relationship – Historical relationship with other project estimates are used to check and determine the accuracy of the estimates. – Parameters are used to develop mathematical relationships using models to verify costs and budget. (E.g. comparing per sq.ft cost for constructing house to previous or on-going projects.)

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Develop Budget Tools & Techniques 5. Funding limit reconciliation – The budget should be reconciled with the funds committed for the project. Both should be in the same line. – If there is variance then re-working of the project plan or the cost estimates may be required. – Funding limits is determined by the sponsor based on how much the sponsor is willing to spend on the project.

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Develop Budget Output 1. Cost baseline – Cost baseline is the project budget that has been approved. – It does not include the management reserve. – After cost baseline is approved, any changes in the cost baseline can only be done through Integrated change control process. – If management reserve are required to be used for any project work, the change control procedure is used to get approval to move the management reserve funds into the cost baseline. Justification may be provided for this purpose.

PMBOK 212

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Develop Budget Output 2. Project funding requirements • Based on the budget, the funds required for the project are Calculated. • Cash flow required for the project is also developed to carry out financial planning for the project.

3. Project document updates • Risk register, cost estimates, project schedule are some of the projects documents that will be required to be updated.

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Project Cost Management

Plan Cost Management

7.0

7.1

Estimate Costs 7.2 Determine Budget

7.3 Control Costs 7.4

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Control Costs

Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 215

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Control Costs

Inputs

Tools & Techniques

4

6

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Control Costs Inputs 1. Project management plan – –

Cost performance baseline Cost management plan

2. Project funding requirements –

Funds required for the project

3. Work performance data –

Information about project progress

4. Organizational process assets (OPAs) – –

Cost control policy and monitoring tools Monitoring and report methods

PMBOK 216

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Control Costs Tools and Techniques 1. 2. 3. 4. 5. 6.

Earned value management Forecasting To-complete performance index Performance reviews Project management software Reserve analysis

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Control Costs Tools and Techniques 1. Earned value management • Earned Value Management (EVM) methodology is used to measure the performance or the project from both cost and schedule point of view. • The method uses scope, cost, and schedule to determine the progress of the project activities. • This method can be used in majority of projects in industry. • Earned Value Management is used to monitor the project using three dimensions. This is done for all work packages and control accounts. 1. Planned Value (PV) 2. Earned Value (EV) 3. Actual Cost (AC) PMBOK 217

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Control Costs Tools and Techniques I. What is Planned Value (PV) • Planned value is the money that is planned to be spent in doing work for an activity in a package. • At any point of time Planned value shows the physical work that should have been done at that point in time. • The total planned value of the project is called Budget at Completion (BAC)

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Control Costs Tools and Techniques II. What is Earned Value (EV) – It is the value of work done based on the approved budget for an activity at any given point in time.

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Control Costs Tools and Techniques III. What is Actual Cost (AC) – Cost incurred in carrying out the work of an activity.

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Control Costs Tools and Techniques BAC = 1600

Project Deliverables: 16 components @ Rs100/- each

Cost of 8 components: 1200

AC = 1200

Should have delivered 10

PV = 1000 EV = 800 8 components delivered

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Control Costs Tools and Techniques • What is Schedule variance (SV) • It is the amount the project is ahead or behind from the schedule. SV = Earned Value (EV) – Planned Value (PV) • Cost Variance (CV) • It is the measure of variance in cost of the project CV = Earned Value(EV) – Actual Cost (AC)

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Control Costs Tools and Techniques Scheduled variance SV = EV – PV SV = 800 – 1000 = - 200 Cost Variance CV = EV - AC CV = 800 -1200 = - 400

BAC = 1600

AC = 1200

PV = 1000 EV = 800

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Control Costs Tools and Techniques • Schedule performance Indicator (SPI): SPI shows the schedule performance of the project as a efficiency indicator: – SPI = Earned Value (EV) / Planned Value (PV) – If SPI is less than 1, then the project is behind schedule. – If SPI greater than 1, then the project is ahead of schedule.

• Cost performance Indicator (CPI): CPI shows the cost performance of the project as an efficiency indicator – CPI = Earned Value (EV) / Actual Cost (AC) – If CPI is less than 1, then the project is cost is more that the budget. – If CPI is greater than 1, then the cost is less than the budget. Copyright PMI Lahore, Pakistan Chapter 2016

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Control Costs Tools and Techniques Scheduled variance SV = EV – PV SV = 800 – 1000 = - 200

BAC = 1600

Cost Variance CV = EV - AC CV = 800 -1200 = - 400

AC = 1200 Schedule Performance Index SPI = EV/PV SV = 800/1000 = .80 Cost Performance Index CPI = EV/AC = 800/1200 = .66

PV = 1000 EV = 800

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Control Costs Tools and Techniques Earned Value Calculations Summary – Schedule Variance SV: SV = EV - PV

(negative value = trouble) (positive value = good)

– Cost Variance CV: CV = EV - AC

(negative value = trouble) (positive value = good)

– Schedule Performance Index SPI: SPI = EV / PV

(< 1 = trouble) (> 1 = good)

– Cost Performance Index CPI: CPI = EV / AC

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Control Costs Tools and Techniques 2. Forecasting • Project Team can calculate forecast of the project as the work on the project goes ahead. • This is called Estimate At Completion (EAC) and is based on past performance of the project at that point in time. • Estimate at Completion (EAC) is the actual cost incurred at a given point in time plus and Estimate To Complete the project (ETC) • EAC can be calculated manually or by using formula

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Control Costs Tools and Techniques Manual EAC = Actual Costs (AC) + bottom-up estimate to complete the project work (ETC) Using Formula: I. EAC forecast for ETC work performed at the budget rate: – This method allows the actual project performance as the guideline for calculating the future Estimate to Complete (ETC) EAC = AC + BAC – EV

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Control Costs Tools and Techniques Scheduled variance SV = EV – PV SV = 800 – 1000 = - 200

BAC = 1600

Cost Variance CV = EV - AC CV = 800 -1200 = - 400

EAC.1= 2000

AC = 1200 Schedule Performance Id SPI = EV/PV SV = 800/1000 = .80 Cost Performance Index CPI = EV/AC = 800/1200 = .66

PV = 1000 EV = 800

EAC at budget rate EAC.1 = AC + BAC – EV = 1200+1600-800=2000 Copyright PMI Lahore, Pakistan Chapter 2016

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Control Costs Tools and Techniques II.

EAC forecast for ETC work performed at present CPI: • This method assumes that cost performance will be the same as has been in the past and used the Cost Performance Index (CPI) to calculate the EAC EAC = BAC / present CPI

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Scheduled variance SV = EV – PV SV = 800 – 1000 = - 200

Control Costs Tools and Techniques

EAC.2 = 2424

BAC = 1600

Cost Variance CV = EV - AC CV = 800 -1200 = - 400

EAC.1= 2000

AC = 1200 Schedule Performance Id SPI = EV/PV SV = 800/1000 = .80 Cost Performance Index CPI = EV/AC = 800/1200 = .66

PV = 1000 EV = 800

EAC.1 at budget rate EAC = AC + BAC – EV = 1200+1600-800=2000

EAC.2 at present CPI EAC = BAC / CPI = 1600 / .66 = 2424

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Control Costs Tools and Techniques III. EAC forecast for ETC considering both SPI and CPI: • This method considers efficiency for both cost and schedule to forecast future performance. • Variations can also be used (80/20; 50/50) EAC = AC + (BAC – EV) / (present CPI x present SPI)

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EAC.3 = 2715

Scheduled variance SV = EV – PV SV = 800 – 1000 = - 200

EAC.2 = 2424 BAC = 1600

Cost Variance CV = EV - AC CV = 800 -1200 = - 400

EAC.1 = 2000

AC = 1200 Schedule Performance Id SPI = EV/PV SV = 800/1000 = .80 Cost Performance Index CPI = EV/AC = 800/1200 = .66

PV = 1000 EV = 800

EAC.1 at budget rate EAC = AC + BAC – EV = 1200+1600-800=2000

PMBOK 219

EAC.2 at present CPI EAC = BAC / CPI = 1600 / .66 = 2424

EAC.3 considering CPI & SPI EAC = AC + [(BAC – EV) / (SPI x CPI)] = 1200 +[(1600-800) / (.8x.66)] = 2715

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Control Costs Tools and Techniques 3. To-Complete Performance Index (TCPI) – TCPI is the calculated projection of cost performance that must be achieved for the remaining part of work to meet the completion as specified by the management.

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Control Costs Tools and Techniques • TCPI based on BAC (complete project at 1600) TCPI =

(BAC – EV) / (BAC – AC) (1600-800) / (1600-1200) = 2

(this means that my performance should be twice of what has been doing so far).

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Control Costs Tools and Techniques TCPI equation =

(BAC – EV) / (EAC – AC)

TCPI based on EAC.3 of 2715 (1600 – 800) / (2715 – 1200) = .52 (this means that I can work at half the pace I was had planned to work) TCPI based on EAC.2 of 2424 (1600 – 800) / (2424 – 1200) = .65 (this means that I can work at 65% pace of what I had planned to work) TCPI based on EAC.1 of 2000 See Figure on PMBOK page 222 (1600 – 800) / (2000 – 1200) = 1 (this means that I will have to work at the planned pace of work) Copyright PMI Lahore, Pakistan Chapter 2016

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2.0

1.0 .52

.66

PMBOK 222

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Control Costs Tools and Techniques • Estimate to Complete (ETC) ETC = EAC – AC • Variance at Completion (VAC) VAC = BAC – EAC • Calculations for Group Exercise (using EAC 1) ETC = 2000 – 1200 = 800 VAC = 1600 – 2000 = - 400

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Control Costs Tools and Techniques 4. Performance reviews • Performance reviews are carried out during the execution of the project to compare the actual outcome of the project activities. This is done by variance analyses, trend analyses and Earned value analyses a) Variance analysis is used to compare the actual performance of the project activities compared to the plan for cost and schedule. b) Trend analysis examines performance of the project over a period of time to check if performance is as planned, below plan or above plan and is it going up or down. c) Earned value management is used to compare the base lines to actual schedule and cost performance

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Control Costs Tools and Techniques 5. Project management software • Software available for managing projects can be used to monitor EVM dimensions to find out how the project is doing. E.g. MSProjects, Primavera.

6. Reserve Analysis • Monitoring contingency and management reserves can help in determining if the project is doing well or not. If the reserves are depleting, it would mean that there is something not going right with the project and need investigation.

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Control Costs Outputs 1. Work performance measurements • Output from the Earned Value Measurement process (CV, SV, CPI, SPI, TCPI and VAC) is sent to stakeholders so that they can make decisions related to the project.

2. Cost forecasts • Forecast of the cost i.e. Estimate at completion (EAC) is calculated and is sent to the stake holders for decisions

3. Change requests • Based on the feedback, preventive and corrective actions may be required and change requests may be generated

PMBOK 225

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Control Costs Outputs 4. Project Management plan updates • Cost baseline and the cost management plan are updated

5. Project documents updates • Project documents such as estimates, basis of estimates and related documents are updated

6. Organizational Process assets update • Causes of variance, corrective actions, lessons learnt are update in the OPAs

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PMI Lahore Pakistan Chapter PMP® Certification Class

Project Quality Management Chapter 8

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan HR Management

Communication Management

Plan Communication Management

3

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Procurement Management Stakeholders Management

Monitoring and Control

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Develop Project Management Plan

Executing

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Planning

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

357 2016

2

11

8

Conduct Procurements

Close Procurements

What is Quality • Quality is to conform to requirements or specifications.

• It is the degree to which characteristics fulfill requirements as described in the specifications. • Good quality would be conforming to the specs. Bad quality will not be conforming to the specs.

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Plan Quality Management Project Quality Management 8.0

Plan Quality Management 8.1

Perform Quality Assurance 8.2 Control Quality 8.3

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Plan Quality Management

Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.

PMBOK 227

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8.1 Plan Quality Management

Inputs

Tools & Techniques

6

8

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Outputs

5

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8.1 Plan Quality Management

Plan Quality Management Inputs 1. Project Management Plan – Will provide information on Scope Baseline, Schedule Baseline, Cost Baseline and Other Management Plans

2. Stakeholder register from Stakeholders Management – Will have information on stakeholders with any particular interest any quality aspect of the project deliverables

3. Risk Register from Risk Management – Will have information on risks that may impact quality requirements

PMBOK 231

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8.1 Plan Quality Management

Plan Quality Management Inputs 4. Requirements Documentation – Will provide information on quality requirements for the project and the deliverables.

5. Enterprise environmental factors (EEFs) – Factors that will have impact on Plan Quality Management process will be: • Governmental regulations including rules, standards, and guidelines. • Working conditions of the project/product that may affect project quality

6. Organizational process assets (OPAs) • Quality policy, as endorsed by senior management • Quality policies, procedures, and guidelines • Historical information & Lessons learned Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Quality Management Tools and Techniques 1. 2. 3. 4. 5. 6. 7. 8.

Cost-benefit analysis Cost of quality Seven basic Quality Tools Benchmarking Design of experiments Statistical sampling Additional quality planning tools Meetings

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Plan Quality Management Tools and Techniques 1. Cost-benefit analysis – Cost-benefit analyses is carried out to determine the benefits of quality management by comparing the cost of quality activity to the expected benefit. – The objective is to ensure that the benefits quality management are more than the costs. – Benefits include • • • •

PMBOK 235

PMBOK 235

less rework, higher productivity, lowering of costs and increase in stakeholder satisfaction.

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools There are seven basic quality tools that are used in quality management. Also known as 7QC tools. a) Cause and Effect Diagram b) Flowcharts c) Checksheets d) Pareto Diagrams e) Histograms f) Control Charts g) Scatter Diagrams

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 1. Cause and Effect Diagram • Also know as Fishbone or Ishikawa Diagrams. • The objective is find the root cause of the problem by tracing back to the source of the problem. • The starting pint is the problem statement that is placed at the head of the diagram. • Causes are found by looking at the problem and asking why until the root cause is identified.

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Plan Quality Management Tools and Techniques

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 2. Flowcharts – They show the sequence of steps from input to output in a process. – These show the graphical relationships between the various process steps – These can be used for trouble shooting problems.

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 3. Check-sheets or check-lists • These are also know as tally sheets. • These are used to organize data so that it can be analyzed for problem solving.

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Plan Quality Management Tools and Techniques

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 4. Pareto Diagrams • Pareto charts are a specific type of histogram based on frequency of occurrence of event. • The vertical bar is used to identify the few but the important sources of most of a problem’s effects. • Pareto is based on the 80/20 rule which says that 20% account for 80% of problems. So 80% problems can be solved by curing 20% of the causes.

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 5. Histograms • In Histogram the vertical bars show the frequency of occurrence over a period of time. • It show the history of occurrence of the events. • It is just like looking the past history.

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Plan Quality Management Tools and Techniques Histogram

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 6. Control Charts – Control charts are used to determine if a process is under control or not. – It tells if the process is stable and also predicts the future performance. – Upper and lower control limits are set by the stakeholders at which corrective action will be taken. – Generally the control limits are set at  3sigma around a process mean is set at zero sigma – Rule of seven is used for control. It means that the process is out of control if seven or more consecutive data points are above or below the mean.

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Plan Quality Management Tools and Techniques

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Plan Quality Management Tools and Techniques 3. Seven Basic Quality Tools (contd.) 7. Scatter Diagrams – Also known as the correlation chart. The relationship between variable X and Y is established. – The chart on the next page demonstrates this co-relation

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PMBOK 239

381

Plan Quality Management Tools and Techniques 4. Bench Marking • The quality standards of the project is compared with the quality standard of another project to: – Identify better practices and – To provide a basis for measuring performance

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Plan Quality Management Tools and Techniques 5. Design of experiments (DOE) • Used to identify the factors that could influence the development a product or process. • Used to determine type and number of tests and the impact on the cost of quality.

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Plan Quality Management Tools and Techniques 6. Statistical sampling • Instead of sampling the entire population, samples are taken for gathering statistics. • this type of sampling is used to determine quality or characteristics of products. • E.g. check weight of one out of ten bottles.

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Plan Quality Management Tools and Techniques 7. Additional quality planning tools – Brain Storming – Used to generate ideas – Nominal Group Techniques – Brain storming in smaller groups, and later it is reviewed by a larger group

8. Meetings – Meetings are a way of discussing issues, brainstorming and generating solutions.

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Plan Quality Management Outputs 1. Quality management plan – The main output of this process is the Quality management plan. It describes how the quality policies will be implemented. – The plan could be formal or informal, detailed or broadly framed. – The QM plan should be reviewed early in the project to ensure that the decisions are based on accurate information.

PMBOK 241

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Plan Quality Management Outputs 2. Process improvement plan – The second output is the Process improvement plan. – This plan details the steps for analyzing project management and product development processes to identify activities that enhance their value. Areas to consider are – Process Boundaries: Describes the purpose of the process, start/end of the process, inputs and outputs, process owner, and stakeholders of the process. – Process configuration: Provides a graphic description of the process. – Process metrics: Allows analyses of process efficiency. – Targets for improved performance: Process improvement activities. PMBOK 241

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Plan Quality Management Outputs 3. Quality metrics – Describes a project or product attribute and how the quality control process will measure it. Measurement is an actual value. • E.g. A metric related to the quality objective of staying within the approved budget by ± 10% could be to measure the cost of every deliverable and determine the percent variance from the approved budget for that deliverable 4. Quality checklist – Usually a structured tool, component specific, used to verify that required steps have been performed. – Establishes a common reference for quality management execution – Is especially effective when developed and improved over several projects. Some organizations have standard checklists for consistency Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Quality Management Outputs 5. Project document updates – – – –

Some documents that will be updated include Stakeholder register Responsibility assignment matrix – RAM (HR management) WBS and WBS Dictionary

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Project Quality Management Project Quality Management 8.0

Plan Quality Management 8.1 Perform Quality Assurance 8.2 Control Quality 8.3

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Perform Quality Assurance Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

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8.2 Perform Quality Assurance

Inputs

Tools & Techniques

5

3

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Outputs

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8.2 Perform Quality Assurance

Perform Quality Assurance Inputs 1. 2. 3. 4.

Quality management plan Process improvement plan Quality metrics Quality control measurements – These are measurements available as a result of Quality Control activities. These are used to analyze and see the effectiveness of the quality processes being followed.

5. Project Documents – – – –

Technical documents with information on Quality requirements Project deliverable status Schedule progress Costs incurred

PMBOK 224

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Perform Quality Assurance Tools and Techniques 1. Quality Management and Control tools a) Affinity Diagrams • Similar to mind mapping techniques these are used to generate ideas that can be linked to form organized patterns of thought about a problem • Example see next page…

PMBOK 245

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Affinity Diagram

395

Perform Quality Assurance Tools and Techniques 1. Quality Management and Control tools b) Process Decision Program Charts (PDPC) • These are used to clarify an objective in light of the steps used in getting to that objective. • It is useful in contingency planning as it helps the team in • Example – PDPC for vacation planning

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Example – PDPC for vacation planning 397

Perform Quality Assurance Tools and Techniques 1. Quality Management and Control tools c) Inter-relationship diagraphs • It is used for problem solving using inter-relationships. The objective to use diagram to show dependencies which can help in problem identification of problems and solutions. • Example (Potential factors/causes contributing to late deliveries)

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Inter-relationship diagraphs

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Perform Quality Assurance Tools and Techniques 1. Quality Management and Control tools d) Tree Diagrams • These are used to show hierarchies such as the WBS, RBS, OBS. These can be used in identifying quality requirements and their relationships. e) Prioritization Matrices • Metrics can be used to prioritize the issues to seek suitable alternatives. • Alternate solutions are given priority based on the score.

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Perform Quality Assurance Tools and Techniques 1. Quality Management and Control tools f)

Activity Network Diagrams • These are used for scheduling of activities. Such as CPM, PDM, PERT

g)

Matrix Diagrams • These are used to carry out analyses of data. • These diagrams can be used to show relationship between various factors

See Figure on PMBOK page 246 Copyright PMI Lahore, Pakistan Chapter 2016

PMBOK 246

401

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Perform Quality Assurance Tools and Techniques 2. Quality audits – Structured review to determine whether project activities comply with organizational and project policies, processes, and procedure – Scheduled or random – Internally or externally performed – Objectives • • • • •

Identify good practices Identify gaps Share good practices Offer assistance to improve performance Develop lessons learnt

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Perform Quality Assurance Tools and Techniques 3. Process analysis – Analyzing processes to identify areas of improvement – It examines • Problems experienced • Constraints experienced • non-value added activities

– Uses Root cause analysis to develop preventive measures

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Perform Quality Assurance Outputs 1. Change requests – Taking action to increase the effectiveness and/or efficiency of the policies, processes, and procedures of the performing organization

2. Project management plan updates – Quality management plan will be updated – Schedule management plan will be updated – Cost management plan will be updated

3. Project document updates – Quality audit reports, training plan, process documentation.

4. Organizational process assets updates – Includes quality standards PMBOK 247

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Project Quality Management Project Quality Management 8.0

Plan Quality Management 8.1 Perform Quality Assurance 8.2 Control Quality 8.3

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8.3 Control Quality

Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 248

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FLOW OF DELIVERABLE AFTER IT IS COMPLETED IN EXECUTION PROCESS

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work (Execution) Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Input

Verified Deliverables

Accepted Deliverables

Quality Checks

Verify Scope

Acceptance

Verified Deliverables

Accepted Deliverables

Transitioned Deliverables

Output

Output 409

Deliverables

Deliverables are completed in the Execution Phase of the project

Output

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality Input Deliverables Quality Checks Verified Deliverables Output

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Verified Accepted Deliverables Deliverables Completed deliverable then goes to the Control Quality process (8.3) to see if it has been made as per Verify Scope Acceptance the quality requirements Accepted Deliverables

Transitioned Deliverables

Output

Output 410

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 4.6 Close project or phase

5.5 Validate Scope

8.3 Control Quality

Input

Input Deliverables

Verified Deliverables

Quality Checks

Verify Scope

Verified Deliverables

Accepted Deliverables

Output

Input After being verified that the Accepted deliverable is as per Deliverables specification it is sent to Validate Scope process (5.5) Acceptance to verify that it has been made as described in the Transitioned scope Deliverables

Output

Output 411

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality

5.5 Validate Scope

4.6 Close project or phase

If the deliverable is verified Input that it is as per the scope, then it is passed on to Close Deliverables project or phase process (4.6) as an input where is Quality Checks goes through the acceptance process and goes outVerified as an output as Deliverables transitioned deliveable Output

Input

Input

Verified Deliverables

Accepted Deliverables

Verify Scope

Acceptance

Accepted Deliverables

Transitioned Deliverables

Output

Output 412

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Flow of Deliverable 8.3 Control Quality -> 5.5 Validate Scope -> 4.6 Close project or phase Direct and Manage Project Work Output Deliverables 8.3 Control Quality Input

5.5 Validate Scope

4.6 Close project or phase

Input

Input

Deliverables

Verified Deliverables

Accepted Deliverables

Quality Checks

Verify Scope

Acceptance

Verified Deliverables

Accepted Deliverables

Transitioned Deliverables

Output

Output 413

Output

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Inputs

Tools & Techniques

8

4

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Outputs

8

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8.3 Control Quality

Control Quality Inputs 1. Project management plan • Quality management plan & Process improvement plan

2. Quality metrics 3. Quality checklists

PMBOK 250

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8.3 Control Quality

Control Quality Inputs 3. Quality checklists – Quality checklist will provide input related to the quality checks performed in execution of project work.

4. Work performance data – – – –

Work performance data can include Planned vs. actual technical performance Planned vs. actual scheduled performance Planned vs. actual cost performance.

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8.3 Control Quality

Control Quality Inputs 5. Approved change requests – This will provide input on the status of changes that have been approved for implementation.

6. Deliverables – Deliverable is the output from the execution process group which will be controlled in this process as an input

7. Project Documents – All documents including agreements, quality audit reports, training plans will be an input to this process

8. Organizational process assets (OPAs) – Quality standards and policies, Standard work guidelines – Issue and defect reporting procedures and communication policies Copyright PMI Lahore, Pakistan Chapter 2016

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Control Quality Tools and Techniques 1. Seven Basic Quality Tools The seven basic tools for quality will be used in the control quality process a) b) c) d) e) f) g)

Cause and Effect Diagram Flowcharts Checksheets Pareto Diagrams Histograms Control Charts Scatter Diagrams

PMBOK 252

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Control Quality Tools and Techniques 2. Statistical sampling Samples are selected and tested for quality control process. E.g. Instead of checking all the deliverables, one out of 10 may be checked for accuracy. This method is faster and less expensive but may give inaccurate results.

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Control Quality Tools and Techniques 3. Inspections – Inspection is examination of deliverable to determine if it conforms to the documented standards. Inspection can be carried at any level of the work. – Inspection can be called reviews, audits or walk-through

4. Approved Change requests review – Review of all change requests will be done to verify if they have been carried out or not and their status. – This information is updated in the change log.

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Control Quality Outputs 1. Quality control measurements – These are the documented results of quality control activities.

2. Validated changes – Items that have changed or have been repaired will be inspected and checked.

3. Verified deliverables – One of the objective of control quality is to ensure that the deliverable are as per specifications. – After getting verified in this process the deliverable will be sent to Validate Scope process for verification. (See diagram slide 75)

4. Work performance Information – All such information that is collected in the quality control process will be analyzed for causes or rejection or reworking. PMBOK 252

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Control Quality Outputs 6. Change requests – Some change requests may be generated due to corrective or preventive actions.

7. Project management plan updates – Some plans including quality and process improvement plan will be updated. – Process improvement plan

8. Project document updates – Some documents including Quality standards and agreements will be updated.

9. Organizational process assets updates (OPAs) – Checklists and Lessons learned will be updated Copyright PMI Lahore, Pakistan Chapter 2016

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PMI Lahore Pakistan Chapter PMP® Certification Course

Project Human Resource Management Chapter 9 PMBOK 255

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Monitoring and Control

Closing

Develop Project Management Plan

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan HR Management

Communication Management

Plan Communication Management

Control Quality

4

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Procurement Management Stakeholders Management

Executing Direct & Manage Project Work

Plan Quality Management

Control Risks

Conduct Quantitative Risk Analyses

2 12

Planning

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

PMI – Lahore Chapter 2013 - All rights reserved.

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

8

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

424 2016

2

11

Conduct Procurements

Close Procurements

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Project Human Resource Management Project Human Resource Management 9.0

Plan Human Resource Management 9.1 Acquire Project Team 9.2 Develop Project Team 9.3 Manage Project Team 9.4 Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Human Resource Management

Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 259

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9.1 Plan HR Management

Inputs

Tools & Techniques

4

5

Outputs

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9.1 Develop Human Resource Plan

Plan Human Resource Management Inputs 1. 2. 3. 4.

Project Management Plan Activity resource requirements Enterprise environmental factors Organizational process assets

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Plan Human Resource Management Tools and Techniques 1. Organization charts and position descriptions There are 3 type of chart that are used in HR management: a) Hierarchical Type Charts b) Matrix Based Charts c) Text oriented format The Objective of these charts to ensure that there is clear understanding between all team members about their roles and responsibilities See Figure on PMBOK page 261 PMBOK 261

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Plan Human Resource Management Tools and Techniques 1. Organization charts and position descriptions a) Hierarchical Type Charts • •

This chart show the reporting relationships. It also helps in identifying communication exchange channels These can be vertical or horizontal



Example on next page…

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http://www.edrawsoft.com/project-organizational-chart.php

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Plan Human Resource Management Tools and Techniques 1. Organization charts and position descriptions b) Matrix Based Charts • •



Responsibility Assignment Matrix (RAM) A responsibility assignment matrix (RAM) is used to show the role and responsibility of the team members working on the project. RACI (responsible, accountable, consult, and inform) chart is a RAM chart as shown on the next page.

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Plan Human Resource Management Tools and Techniques 1. Organization charts and position descriptions c) Text oriented format • Text format is used to provide information about the position, similar to job description. The information included can be responsibilities, authority, competencies, qualifications, reporting channels etc. • See example on next page.

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Copyright PMI Lahore, Pakistan Chapter 435 2016

Plan Human Resource Management Tools and Techniques 2. Networking • Interactions with others in the Organization, Industry or Professional Environment can help in finding people for the project. • The goal is to understand the political and interpersonal realities that can impact the staffing positions. • Networking can be done by: – Correspondence by emails, chats, forums – Meetings and events, seminars, conferences – Exhibitions and similar events

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Plan Human Resource Management Tools and Techniques 3. Organizational Theory – These various theories provide information on how people, groups and organizations behave in different situations. – This information can help in developing teams and also improve team efficiency. – Some of these theories may also suggest different styles of leadership to help with the project life cycle. – Theories of organizations include rational system perspective, division of labor, modernization theory, bureaucratic theory, and contingency theory.

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Plan Human Resource Management Tools and Techniques 4. Expert Judgment • Expert advice from within and outside the organization is used to develop the HR management plan.

5. Meetings Meetings are held to developing the HR management Plan.

PMBOK 263

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Plan Human Resource Management Output 1. Human Resource Management Plan – The output from this process is the HR management plan – It gives the guideline on how the project human resources will be managed. – It provides information on how the team will be staffed, developed and managed. – The plan covers three major areas: a) b) c)

Roles and Responsibilities of the team members Organization Charts for the project Staffing Plan for acquiring the team, developing the team and managing the team

PMBOK 264

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Plan Human Resource Management Outputs 1. Human resource Management plan a)

Roles and Responsibilities • These are the roles and responsibilities that will be assigned to the team members as per the job requirements: • Roles: Function assigned to the resource. Such as Site Engineer, Business Analyst, QA tester, etc.) • Authority: The right to apply project resources, make decisions, sign approvals, accept deliverable, and influence others to carry out the project work. Team member work best when their level of authority matches with their level of responsibility. • Responsibility: The work that a resource is responsible for. Or the work that is assigned to resource. • Competency: The capacity and the skill level the resource would required to complete the assigned work. Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Human Resource Management Outputs b) Project Organization Charts • A project organization chart is a graphic display of project team members and their reporting relationships. • The level of detail of the charts will depend on the project size and need and complexity. • For Example the project chart for 3000 person team will be much different from a 20 person team chart.

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Plan Human Resource Management Outputs c) Staffing Management Plan The staffing management plan describe how the team will be acquired and for how long they will be needed in the project. This plan will include: • Staff Acquisition plan – This describes when and how the resources will be acquired. These could be from internal sources or from external sources. • Resource Calendar - Show the days the resources will be available with the project. A resource histogram can be made to show how many hours the resources are required on the project. • Staff Release Plan - This plan shows when each resource will be released from the project after the need for the resources is fulfilled and is not needed at the project. See Figure on PMBOK page 266

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Plan Human Resource Management Outputs c) Staffing Management Plan • • • •

Training needs – The plan will also identify training needs for any member(s) of team to improve his/her competency. Recognition and rewards - System of recognition and rewards should also be part of the staffing management plan. Compliance - This plan can include strategies for complying the applicable government regulations unions and other HR policies. Safety: Policies and procedures that protect team members from safety hazards can be included in the staffing management plan.

See Figure on PMBOK page 266 Copyright PMI Lahore, Pakistan Chapter 2016

PMBOK 266

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Project Human Resource Management Project Human Resource Management 9.0

Develop Human Resource Plan 9.1 Acquire Project Team 9.2 Develop Project Team 9.3 Manage Project Team 9.4

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9.2 Acquire Project Team Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 268

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Acquire Project Team

Inputs

Tools & Techniques

3

5

Outputs

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9.2 Acquire Project Team

Acquire Project Team Inputs 1. Human Resource management plan 2. Enterprise environmental factors (EEFs) 3. Organizational process assets (OPAs)

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Acquire Project Team Tools and Techniques 1. Pre-assignment • When the team members are selected in advance they are considered as pre-assigned for the project roles. • This is done when specific people are identified as being part of a competitive proposal for a project or if the project is dependent on the expertise of some persons. • Some of the staff assignments are pre-defined within the Project Charter.

PMBOK 270

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Acquire Project Team Tools and Techniques 2. Negotiations – Staff positions are negotiated in projects. The Project manager and the team will have to negotiate with other people such as: • Functional managers, so that competent staff join the team in time as required. • external organizations such as vendors, suppliers for manpower, who can provide resources and subject matter experts that may be difficult to find.

– In all these techniques the Project organization should be able to demonstrate the ability to influence the other party in getting the required resources.

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Acquire Project Team Tools and Techniques 3. Acquisition • When the performing organization does not have the required resources, the required services may be acquired from outside. • This will involve hiring of Individuals such as consultants or subcontracting the work to another organization outside the project organization who can provide the required expertise.

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Acquire Project Team Tools and Techniques 4. Virtual teams – Virtual teams are groups of people who are working on the same project but are at different locations. – Due to advancement of communication technology (fast internet connections) it has become quite common to have virtual teams especially in IT related projects. – Virtual teams could be from same company but in different geographical areas or employees who work from home offices. – Teams of people who work in different shifts or hours. – People with mobility limitations or disabilities. – To manage virtual teams, special attention has to be given to the communication management plan.

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Acquire Project Team Tools and Techniques 5. Multi-Criteria Decision Analysis – Selection criteria are developed and used to select team members – The criteria are weighed according the importance of the needs within the team – Examples of selection criteria are: • • • • • • • •

Availability – is the team member available for the time period needed. Cost – Verify if the cost of the team member is as per the budget Experience – Verify if the member has the relevant experience. Ability – Verify if the team member has the competencies needed by the project. Knowledge – Does the team member have the required knowledge about the project. Skills – Determine if the member has the required skills. Attitude – Determine if the member has the ability to work with others International factors – Consider team member location, time zone and communication capabilities Copyright PMI Lahore, Pakistan Chapter 2016

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Acquire Project Team Outputs 1. Project staff assignments • The acquired staff is shall be assigned roles and responsibilities as per the requirement of the project work. • The documents related to these assignment will be the Project Team Directory and Project Organization charts which will have names inserted for various positions.

PMBOK 272

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Acquire Project Team Outputs 2. Resource calendars – Resource calendars shows the period of availability of the manpower for the project work. This helps in developing the schedule for the project.

3. Project management plan updates – With the HR information available the HR plan will get updated.

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Project Human Resource Management Project Human Resource Management 9.0

Develop Human Resource Plan 9.1 Acquire Project Team 9.2 Develop Project Team 9.3 Manage Project Team 9.4 Copyright PMI Lahore, Pakistan Chapter 2016

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9.3 Develop Project Team Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 273

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9.3 Develop Project Team

Inputs

Tools & Techniques

3

7

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Outputs

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9.3 Develop Project Team

Develop Project Team Inputs 1. Human Resource Management Plan from 8.1 • Provides information on how the Human resources required for the project will be managed.

2. Project Staff Assignments from 8.2 • Gives information on the resources assigned for the work to be carried.

3. Resource Calendar • Gives information of the days the staff will be working on the project. PMBOK 274

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Develop Project Team Tools and Techniques 1. Interpersonal skills – Interpersonal skills also known as soft skills are behavioral competencies that include proficiencies such as communication skills, emotional intelligence, conflict resolution, negotiation, influence, team building, and group facilitation. – These are all valuable assets in developing the project team – For example emotional intelligence and be can be helpful in reducing tension and increasing cooperation by identifying, assessing, and controlling the sentiments of project team members. [Also read PMBOK® – pages 513-516 on leadership, Influencing and effective decision making]

PMBOK 275

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Develop Project Team Tools and Techniques 2. Training – Trainings are carried out to enhance the competencies of the project team members. – Training can be formal or informal. – Training could be in class-rooms or on-the-job. – Mentoring and coaching is also a form of training – Informal training can take place during observations and conversations. – All training cost should be included in the project budget, however some of the costs could be supported by the performing organization.

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Develop Project Team Tools and Techniques 3. Team Building Activities – Team building activities are necessary to avoid conflicts and improve the working of the team. – Main objective is to help team members work together effectively. – Team building activities could be informal talks or could be formal training and workshop sessions. – However both methods are necessary to promote trust, build team cohesiveness, and team efficiency. – There are 5 stages of team building as given in the next slide

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Develop Project Team Tools and Techniques Five stages of team development 1. Forming. Team comes together and finds out of the project and their respective roles and responsibilities are. At this stage the team members are not as open in this phase and there are no conflicts. 2. Storming. Team starts to work and address project issues. At this stage the team has to make technical decisions and differences start to emerge. This results in conflicts and the environment can become counter productive.

3. Norming. By this time the team has been working for some time and have adjusted to each other working habits. They learn about each other and behaviors and start supporting the team. Trust is developed and teams starts to going toward performing. Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Project Team Tools and Techniques Five stages of team development 4. Performing. At this stage the teams is organized and working as one unit. It is resolving matters and are working independently. At this stage the team is effective and independent and is in the performing state. 5. Adjourning. This stage is reached when the team completes the project and is to be disbanded. The team is adjourned and the team members move to their next assignments. The duration of each stage depends on the team dynamics, team size, and team leadership. Project managers should have good understanding of team dynamics in order to move the team through all the stages in an effective manner. Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Project Team Tools and Techniques 4. Ground rules – Ground rules are un-written rules to be followed by team. These establish the expected behavior from the team members. – It is good practice to establish the rules early in the project so that there are no misunderstandings.

5. Co-location – Co-location is placing all the team members at one location. This is an effective way of working in a project. – Co-location is also referred as “Tight Matrix” – Co-location include a team meeting room also know as ‘war room’ where all the necessary information (such as schedule) is displayed and is available. (Used in Agile project management) Copyright PMI Lahore, Pakistan Chapter 2016

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Develop Project Team Tools and Techniques 6. Recognition and rewards – Project manager should be clear about how the team will be rewarded for good work. – Recognizing and rewarding desirable behavior can increase motivation in the team members. – If the team is from various cultures then the difference in cultures (EEF) should be considered when determining the rewards – Recognition should be done during the duration of the project in order to keep the team motivated.

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Develop Project Team Tools and Techniques 7. Personal Assessment Tools •

Personal assessment tools such as attitudinal surveys, specific assessments, structured interviews, ability tests, gives the Project Manager and the team insight into areas of strength and weakness.



It helps the Project Manager’s in managing the team in a better manner and improve team efficiency.

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Develop Project Team Outputs 1. Team performance assessments – Assessment of performance of the team members can help in better effectiveness of the team. – The assessment can be done on the basis of the three constraints: Scope, Time and Cost. – Questions to ask: – Has the team met the requirements in developing the deliverables (Scope) – Has the team met the deadlines (Time) – Has the team been able to do the work as per the budget (Cost)

PMBOK 278

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Develop Project Team Outputs 2. Enterprise environmental factors updates – Employee training records, skill assessments and other records will be updated in EEFs.

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9.0 Project Human Resource Management Project Human Resource Management

Develop Human Resource Plan 9.1

9.0

Acquire Project Team 9.2 Develop Project Team 9.3 Manage Project Team 9.4 Copyright PMI Lahore, Pakistan Chapter 2016

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9.4 Manage Project Team Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 279

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9.4 Manage Project Team

Inputs

Tools & Techniques

6

4

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Outputs

5

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9.4 Manage Project Team

Manage Project Team Inputs 1. Human Resource management plan - Provides information on Roles and responsibilities, Project organization, staffing management plan

2. Project staff assignments - Provides information on the list of Project team members.

3. Team performance assessments - Provides information on the performance of the team.

PMBOK 281

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9.4 Manage Project Team

Manage Project Team Inputs 4. Issue Log (Stakeholders Management) • Issue log is a document where all issues related to stakeholders are logged. • The log has information regarding the issues and who is responsible for resolving them and the status of the issue.

5. Work Performance reports • Will provide information on how the Project is progressing and the future forecasts.

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9.4 Manage Project Team

Manage Project Team Inputs 6. Organizational process assets (OPAs) Information such as company’s reward system, organization, newsletter, website, etc. will help in managing the project team.

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Manage Project Team Tools and Techniques 1. Observation and conversation – The objective is to stay in touch with the project team members and get a sense of the work being performed by them. – This can be done by walking around, observing and talking to the team members.

2. Project performance appraisals – Having a system of performance appraisal that can be used for managing the team will help the project manager. – The type of the system will depend on the length and complexity of the project. – Longer projects will require a more formal system. PMBOK 282

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Manage Project Team Tools and Techniques 3. Conflict management – Conflicts can arise during the execution of the project work. – Conflicts could be due to Scheduling priorities, availability of resources, working styles of people,, etc. – Conflicts should be managed in a positive and effective manner – Successful conflict management can results in higher productivity and better working relationships between the team members.

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Manage Project Team Tools and Techniques 3. Conflict management Five general techniques are used for resolving conflicts a) Withdrawal/Avoid. This involves retreating from the conflict situation. Postponing the issue to be better prepared or be resolved by others. b) Smooth/Accommodate. Emphasize areas of agreement rather than the areas of difference. Conceding one position to the needs of other to resolve the issue. c)

Compromise/ Reconcile. Looking for solution that is acceptable to some extent to both the parties. In this method at least one party has to compromise and reconcile with the outcome. . Copyright PMI Lahore, Pakistan Chapter 2016

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Manage Project Team Tools and Techniques 3. Conflict management 5 Techniques for resolving conflict d)

Force/Direct. Forcing or asking one party to accept the viewpoint of the other party. This solution is win solution for one party.

e)

Collaborate/Problem Solve. This the best method for conflict management. In this method many viewpoints are looked into to resolve the conflict. After discussions in a collaborative atmosphere one solution is picked up which is acceptable to both parties. It is win-win situation for both parties.

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Manage Project Team Tools and Techniques 4. Interpersonal skills – The project manager is required to lead the team to get the project work done by the team. – To do this, the PM has to use interpersonal skills to keep the members of the team motivated and productive. – Some of the leadership traits the PM requires are: (next page)

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Manage Project Team Tools and Techniques 4. Interpersonal skills (contd…) a) Leadership - Strong leadership skills are required for a successful project. The Project Manager has to demonstrate leadership to communicate effectively with the team and other stakeholders. b) Influencing- The project manager should be able to influence and persuade the team in getting the project work accomplished. c)

Effective Decision Making is also a leadership trait that has to be exercised by the Project Manager. For effective decision making the PM should focus on Project goals.

[Also read PMBOK® – pages 513-516 on leadership, Influencing and effective decision making]

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Manage Project Team Outputs 1. Change requests – Change request related to HR can be generated for various reasons such as staffing issues, change in assignments, outsourcing some of the work, replacing team members who leave etc. – All change requests have to go through the perform integrated change control process and implemented if approved.

2. Project management plan updates – Human Resource Management Plan will get update

PMBOK 284

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Manage Project Team Outputs 3. Project Document Updates – Issue log, change log, role and responsibilities and Project Staff Assignments will get updated.

4. Enterprise environmental factors updates – Input to organizational performance appraisals – Personnel skill updates

5. Organizational process assets updates – Historical information and lessons learned documentation – Templates – Organizational standard processes

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PMI Lahore Pakistan Chapter PMP® Certification Course

Project Communication Management Chapter 10 Copyright PMI Lahore, Pakistan Chapter 2016

PMI – Lahore Chapter 2013 - All rights reserved.

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Process Groups

Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

Initiating Develop Project Charter

11

13

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan HR Management

Communication Management

Plan Communication Management

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Procurement Management Stakeholders PMBOK 61 Management

Monitoring and Control

Plan Quality Management

3

Control Risks

Conduct Quantitative Risk Analyses

2 12

Develop Project Management Plan

Executing

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

9 HR Management

10

Planning

24

Plan Risk Response Plan Procurement Management

Identity Stakeholders

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

485 2016

2

11

8

Conduct Procurements

Close Procurements

Project Communications Management Project

Communications Management 10.0

Plan Communications Management 10.1 Manage Communications 10.2 Control Communications 10.3 Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Communications Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 289

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Plan Communications Management – Plan Communications Management process is based on the information and communications needs of the stakeholders. – Following considerations is to be taken into account for planning communications: • Who needs the information and who is authorized to access that information • When they will need the information • Where will the information be stored • What format should the information be stored in • How the information can be retrieved • Whether time zone, language barriers, and cross-cultural considerations need to be taken into account

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10.1 Plan Communication Management

Inputs

Tools & Techniques

4

5

Outputs

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489

10.1 Plan Communications Management

Plan Communications Management Inputs 1. 2. 3. 4.

Project Management Plan Stakeholder register Enterprise environmental factors Organizational process assets

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Plan Communications Management Tools and Techniques 1. Communication Requirements Analysis – Communication requirement analyses is carried out to determine the communication needs of the stakeholders. – Factors such as the type of communication, format of communication are determined in this analyses. – In this analyses the Project Manager also determines the number of communication channels that are required.

PMBOK 291

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Plan Communications Management Tools and Techniques 1. Communication Requirements Analysis

1 Channels

6 Channels

As the number of people involved in the communication increases the number of communication channels increases geometrically.

PMBOK 292

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Number of Channels A

1 Channel

B

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Number of Channels A

3 Channels

B

C

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Number of Channels A

D

6 Channels

B

C

N is the number of stakeholders Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Communications Management Tools and Techniques 1. Communication Requirements Analysis Sources of information to define project communications requirements include the following: – – – –

Organizational chart Project organization and Stakeholders responsibility relationship Disciplines, departments, and specialties involved in the project. Logistics of how many persons will be involved with the project and their location – Internal informational needs (e.g. within organization) – External informational needs (e.g. Communicating with contactors, media, public) – Stakeholders information and communication requirements from the stakeholders register

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Plan Communications Management Tools and Techniques 2. Communication Technology – The methods that are used for communication vary on the requirement of the stakeholders. – E.g. Information transfer could be done by brief conversations, or extended meetings or simple written documents or online accessible material, etc. – Use of technology will also depend on the method used.

PMBOK 292

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Plan Communications Management Tools and Techniques 2. Communication Technology (contd..) Factors that affect the choice of communication technology are: – Urgency or the need of information: Urgency, frequency, and format may vary for different projects and also at different stages of the project. – Availability of technology: Ensure that the technology required is available. – Ease of Use: Ensure that the team will be able to use the technology with ease.

PMBOK 293

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Plan Communications Management Tools and Techniques 2. Communication Technology (contd..) Factors that affect the choice of communication technology are: – Project Environment: Determine if the team will meet face-to-face or in virtual environment; will they be located in one time zone or multiple time zones; whether they will use multiple languages; are there other project factors such as culture, which may effect communication – Sensitivity and Confidentiality of the information: Determine how confidential is the information to be communicated.

PMBOK 293

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Plan Communications Management Tools and Techniques 3. Communication Models – Communication models shows how the information is sent and received between the sender and receiver. – The Basic Communication Model is between two parties. Sender and Receiver. – The objective is that the message from the sender should reach the receiver in full and the receiver should be able to understand the message completely. – It is the responsibility of the sender to make sure that the message has reached the receiver and has been understood by the receiver. – The sequence of steps in basic communication model consists of 5 steps: (next page)

PMBOK 293

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Plan Communications Management Tools and Techniques 3.

Communication Models Encode. Thoughts and ideas are translated (encoded) into language by the sender Transmit Message: Sender sends this information using a communication channel (medium). This message may be compromised by factors such as distance, unfamiliar technology, inadequate infrastructure, cultural difference, lack of background information, etc. These factors are termed as noise. Decode. The receiver translates message back into meaningful thoughts or ideas as information.

PMBOK 293

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Plan Communications Management Tools and Techniques 3. Communication Models (contd..) • Acknowledgement. Receiver signals acknowledgment of the receipt of the message to the sender, however this does not mean that the receiver agrees with the message. • Feedback/Response. When the message has been decoded and understood by the receiver, the receiver encodes his/her thoughts and ideas into a message and transmits it back to the sender. This shows that the message has been understood by the receiver.

See figure on PMBOK 294 PMBOK 293

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PMBOK 294

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Plan Communications Management Tools and Techniques 4. Communication methods – Interactive Communication - Interactive communication is information exchange between two or more parties using multidirectional method. – It is the most efficient way of communication. It is used is meetings, phone calls and video conferencing. – Push communication – Push communication is to send information to the receiver. E.G. emails, letter, memos, – Pull communication - this method is used where the audience is large and/or the information also large. Stakeholders can access the information at their own discretion. Internet websites, intranet sites are examples of pull communication.

PMBOK 293

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Plan Communications Management Tools and Techniques 5. Meetings – Project related meetings where project communications may occur consist of stakeholders coming together for the purpose of resolving issues and making decisions. – Meetings generally have a defined list agenda items to be discussed which is circulated in advance with minutes and other information. – This information is then disseminated to other appropriate stakeholders on an as-needed basis.

PMBOK 293

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Plan Communications Management Outputs 1. Communications Management Plan • This is part of the Project Management Plan. • It provides information on the how the project communication will be handled. • Terminology to be used in communication. • Methods and technologies that will be used. • Time and frequency of information distributed. • Any communication constraints. E.g. legislation/regulation, technology, and organizational policies. • …. See details on PMBOK 296 PMBOK 296

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Plan Communications Management Outputs 2. Project document updates Documents that will be update will include: • Project Schedule • Stakeholder Register

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Project Communications Management Project

Communications Management 10.0

Plan Communications Management 10.1 Manage Communications 10.2 Control Communications 10.3 Copyright PMI Lahore, Pakistan Chapter 2016

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10.2 Manage Communications Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 297

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10.2 Manage Communications

Inputs

Tools & Techniques

4

5

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Outputs

4

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10.2 Manage Communications

Manage Communications Inputs 1. 2. 3. 4.

Communications Management Plan Work Performance Reports Enterprise Environmental Factors Organizational Process Assets

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Manage Communications Tools and Techniques 1. Communication Technology 2. Communication Models 3. Communication Methods 4. Information Management systems – Systems that will be used for managing communications that will include: • Hard copy document management system for letters, memos, reports • Electronics communications management system for emails, fax • Electronic project management tools such as, portals, virtual office support software (share point, etc)

PMBOK 300

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Manage Communications Tools and Techniques 5. Performance Reporting – Performance reporting is reporting performance related to the project. – This is done by collecting and distributing performance information such as progress reports and future forecasts – The reports should be based on the needs of the stakeholder. – Some of the items these report will contain are: • • • • • •

Analysis of past performance Future projected forecasts Work done during the period Work to be done in the next periods Summary of changes approved in the period and Other relevant information, which is reviewed and discussed.

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Manage Communications Outputs 1. 2. 3. 4.

Project Communications Project Management Plan Updates Project Document Updates Organizational Process Assets Updates

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Project Communications Management Plan Communications Management

Project Communications

10.1

Management

Manage Communications

10.0

10.2 Control Communications 10.3 Copyright PMI Lahore, Pakistan Chapter 2016

515

10.3 Control Communications Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 303

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10.3 Control Communications

Inputs

Tools & Techniques

5

3

Outputs

5

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10.3 Control Communications

Control Communications Inputs 1. 2. 3. 4. 5.

Project management plan Project Communications Issue log Work performance data Organizational process assets

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Control Communications Tools and Techniques 1. Information management systems 2. Expert judgment 3. Meetings

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519

Control Communications Outputs 1. 2. 3. 4. 5.

Work Performance Information Change Requests Project Management Plan Updates Project Document Updates Organizational Process Assets Updates

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Will you get vaccinated? Yes / No

PMI Lahore, Pakistan Chapter PMP® Certification Course

Project Risk Management Chapter 11

Copyright PMI Lahore, Pakistan Chapter 2016

PMI – Lahore Chapter 2013 - All rights reserved.

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Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

9 HR Management

10

11

Process Groups Initiating

Planning

Develop Project Charter

Develop Project Management Plan

Executing

Monitoring and Control

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget Plan Quality Management

Page 61

Plan HR Management

Communication Management

Plan Communication Management

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Control Risks

6

Conduct Procurements

Control Procurements

Close Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

Conduct Quantitative Risk Analyses Plan Risk Response

12 13

Procurement Management Stakeholders Management

Plan Procurement Management

2

Identity Stakeholders

24

8

523 2016

11

2

What is Risk?

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Risk is…. Risk is an event or condition, if it occurs, will effect at least one project objective such as scope, schedule, cost, and quality. • Risks are always in the future.

• Risk that has taken place becomes an Issue or a problem • Known risks can be managed. • Unknown Risks cannot be managed.

PMBOK 309

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Some Important Terms • • • •

RISKS can be both Positive or Negative Positive Risks are called Opportunities Negative Risks are called Threats There could be more than one or more reason for a risk.

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Project Risks vs. Individual Risks Project risks are those risks that effect the project as a whole. These are identified at the early stage of the project or when the project is being conceived. (E.g. the project is too risky to do in this location, so let us change the location to reduce the risk)

Individual risks are related to the 8 knowledge areas. E.g. Risks related to scope, time, cost, quality, HR, communication, procurement and stakeholders.

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11.0 Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management 11.2 Identify Risks

11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

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11.1 Plan Risk Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

• Plan Risk Management is the Process of defining how to conduct risk management activities for a project.

• This process is ensures that the degree, type, and visibility of risk management are proportionate with both the risks and the importance of the project to the organization.

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11.1 Plan Risk Management

Inputs

Tools & Techniques

5

3

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Outputs

1

530

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11.1 Plan Risk Management

Plan Risk Management Inputs 1. 2. 3. 4. 5.

Project management plan Project Charter Stakeholder Register Enterprise environmental factors Organizational process assets

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531

Plan Risk Management Tools and Techniques 1. Analytical Techniques – These are the various techniques that are used to analyze the risks. – Stakeholders risk attitudes and organization strategy are taken into consideration while developing these techniques. – e.g. A risk profile analyses of a stakeholder may be carried out to determine the risk appetite of the stakeholder – Other techniques such as strategic risk scoring sheets are used t determine the level of risks. – Based on the information the project can determine the level of effort required for risk management

PMBOK 315

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532

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Plan Risk Management Tools and Techniques 2. Expert Judgment • •

Expert Judgment can be used for different knowledge areas to develop risk management plan. These may be people from Senior management, Project stakeholders, Subject matter experts, Industry groups, consultants, professionals

3. Meetings • •

Planning meetings are held to develop the risk management plan. Included Project manager, team members , stake holders, others. All activities related to risk management are discussed in these meeting to develop the risk management plan

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533

Plan Risk Management Outputs • Risk management plan – The risk management plan describes the approach that will be adopted for risk management. – It is part of the project management plan – The plan will include: 1. Methodology – Describes the approach, tools and what data

sources will be used to perform risk management on the project. 2. Roles and Responsibilities – Defines who will be responsible for doing the risk management.

PMBOK 316

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Plan Risk Management Outputs 3. Budgeting – What funds will be required to do risk management.

4. Timing – How long it will take to do risk management initially. And how much time will be devoted for risk management during the project execution. 4. Risk Categories – What are the various risk categories that will be used in Risk management. Risk Breakdown Structure (RBS) can be used for this purpose. See figure on PMBOK 317

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PMBOK 317

535

536

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Plan Risk Management Outputs 5. Definition of risk probability and impact – Risk probability and impact will be defined in terms of numerical values. E.g. What will be the meaning of ‘low, medium or high’ in terms of a numerical values. See chart on next page.

See figure on PMBOK 318

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PMBOK 318

537

538

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Risk Management Plan Output 6. Probability and impact Matrix – Develop a matrix to prioritize risks as high, moderate, low or very low.

7. Revised stakeholders' tolerance – Based on discussions and analyses the risk tolerance level of stakeholders may change.

Project Management Institute, A Guide to Project Management Copyright PMI Lahore, Pakistan Chapter Body of Knowledge, (PMBOK® Guide) Fifth Edition, Project 2016 Management Institute, Inc. 2013, Page 318

539

Risk Management Plan Output 8. Reporting formats – Develop format that will be used for risk analyses.

9. Tracking – Develop a system for tracking risks and how they will be recorded.

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Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

541

11.2 Identify Risks Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 319

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542

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11.2 Identify Risks

Inputs

Tools & Techniques

13

7

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Outputs

1

543

11.2 Identify Risks

Identify Risks Inputs 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Risk Management Plan Cost Management Plan Schedule Management Plan Quality Management Plan Human Resource Management Plan Scope Baseline Activity Cost Estimates Activity Duration Estimates Stakeholder Register Project Documents Procurement Documents Enterprise Environmental Factors Organizational Process Assets Copyright PMI Lahore, Pakistan Chapter 2016

544

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Identify Risks Tools and Techniques 1. Documentation reviews • Structured review of project documentation, including plans, assumptions, files, contracts, etc. can be indicators of project risks • E.g. plans, assumptions, files, contracts, etc. 2. Information gathering techniques 1. Brainstorming – a general data gathering technique that can be used to identify risks, ideas, or solutions, to issues, by using a group of team members and subject matter experts. Carried out with a multidisciplinary set of experts, under a facilitator PMBOK 324

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545

Identify Risks Tools and Techniques 2. Information gathering techniques 2.

Delphi technique – Information gathering technique used as a way to reach consensus on a subject. Experts on the subject participate anonymously. A facilitator uses a questionnaire to get ideas about points related to the subject. Responses are summarized and recirculated for comments. Consensus may reach in a few rounds. Delphi technique reduces bias as it is done anonymously.

3.

Interviewing – experienced project participants, stakeholders, and subject matter experts helps to identify

4.

Root Cause Analyses – An analytical technique used to determine the underlying reason that causes a variance or a defect or a risk. A root cause may underlie more than one variance or defect or risk. . Copyright PMI Lahore, Pakistan Chapter 2016

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Identify Risks Tools and Techniques 3. Checklist analysis • A techniques for systematically reviewing materials using a list for accuracy and completeness. • Risk identification check lists can be developed based on historical information

PMBOK 325

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547

Identify Risks Tools and Techniques 4. Assumption analysis –

PMBOK 325

A technique that explores accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions

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Identify Risks Tools and Techniques 5. Diagramming techniques a) Cause and effect diagrams – Ishikawa or fishbone diagrams are used for identifying risks by analyzing risky situations. b) System or process flow charts – Interrelations shown in charts can help in identifying risks. c) Influence diagrams – Influences of other factors and conditions can also identify risks. Influence diagrams help in this. See figure on PMBOK 326

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Cause and Effect Diagram

55 0

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Cause and Effect Diagram

55 1

Flow charts

552

Based on PMBOK 4th Ed.

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Influence Diagram

This simple influence diagram shows how decisions about the marketing budget and product price influence expectations about its uncertain market size and market share. These, in turn, influence costs and revenues, which affect overall Based on PMBOK 4th Ed. profit. 553

Identify Risks Tools and Techniques 6. SWOT analysis – Analyses of strength, weaknesses, opportunities, and threats of an organization can identify risk related to the project the organization is undertaking. (see next page)

7. Expert Judgment – Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc. for the activity being performed. May be provided by any group or person with specialized education, knowledge, skill, experience, or training – Senior management, Project stakeholders, Subject matter experts, Industry groups, consultants, professionals

PMBOK 326

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Internal Factors STRENGTHS

WEAKNESSES

What does the Company do well?

What could be improved?

What is the good Track Record?

What is being done badly? What should be avoided?

Where does the organization compete well? Positive

Negative

OPPORTUNITIES

THREATS

What will happen in the next 5 years?

What sort of obstacles the business faces?

What opportunities are available?

What sort of competition the organization faces?

External Factors

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555

Identify Risks Outputs 1. Risk register • A document in which the results of risk analyses and risk response planning are recorded • Identify Risks are the initial entries into the risk register Will contain: – List of identified risks – List of potential responses

PMBOK 327

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Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

557

11.3 Perform Qualitative Risk Analysis

Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. The key benefit of this process is that it enables project manager to reduce the level of uncertainty and to focus on high-priority risks

PMBOK 328

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558

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11.3 Perform Qualitative Risk Analysis

Inputs

Tools & Techniques

5

6

Outputs

Copyright PMI Lahore, Pakistan Chapter 2016

1

559

11.3 Preform Qualitative Risk Analysis

Perform Qualitative Risk Analysis Inputs 1. 2. 3. 4. 5.

Risk management plan - describes how risks will be handled Scope Baseline – describes the project scope Risk register – has the list of all the identified risks Enterprise Environmental factors – factors affecting the project Organizational process assets – formats, lessons learnt, previous experience

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560

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Perform Qualitative Risk Analysis Tools and Techniques 1. Risk probability and impact assessment There are two factors that are used in analyses of risks. Probability and Impact. – Risk probability investigates the likelihood that each specific risk will occur. – Risk impact assessment investigates the potential effect on the project. – Probability and impact is evaluated during interviews and meetings – Risk probabilities and impacts are rated according to the definitions given in the risk management plan – Low level risks are kept on the watch list for future monitoring PMBOK 330

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561

Perform Qualitative Risk Analysis Tools and Techniques 2. Probability and impact matrix – Risks are prioritized based on the risk rating using probability and impact matrix – Risk score/rating is probability X impact – Organization can rate a risk separately for each objective (e.g., cost, time, and scope) – The risk rating helps guide risk responses

PMBOK 331

See figure on PMBOK 331

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11.3 Perform Preform Quantitative Qualitative Risk Risk Analysis Analysis

LOW

Tools MEDIUM

HIGH & Techniques

HIGH

MEDIUM LOW

56 3

Example of Probably and Impact Matrix

0.16

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Tools & Techniques

Risk Score

565

Perform Qualitative Risk Analysis Tools and Techniques 3.

Risk data quality assessment – A technique used to evaluate the degree to which the data about the risks, is actually useful in making Risk Management decisions. – Examines the accuracy, quality, reliability, and integrity of the data regarding the Risk.

4.

Risk categorization – Using RBS risk can be categorized to determine the areas of the project most exposed to risk.

5.

Risk urgency assessment – Determine which risks require immediate attention

6.

Expert judgment – Risks are assessed by project experts using risks facilitations workshops –

.

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11.3 Perform Qualitative Risk Analysis Outputs 1. Project Document Updates –

The risk register that was started after identifying risk will get an update. •

As new information is available the risk register is updated



Risk are categories as ‘high’, med, or ‘low’



Risk can be grouped by categories



Risks are identified for near term responses



Additional risks are identified



Trends of risks



low priority risks are put on Watch list

– Assumption Log Updates •

New information found can lead to change of assumptions

PMBOK 333

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567

Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management 11.2 Identify Risks

11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

568

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11.4 Perform Quantitative Risk Analysis Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 333

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569

11.3 Perform Quantitative Analyses

Inputs

Tools & Techniques

6

3

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

1

570

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11.4 Perform Quantitative Risk Analysis

11.4 Perform Quantitative Risk Analysis Inputs 1. Risk management plan – describes how risks will be handled 2. Cost management plan – describes the costs associated with risks and contingency 3. Schedule management plan – describes the time required for risk management 4. Risk register – list of risks 5. Enterprise Environmental Factors • Industry studies of similar projects by risk specialist • Risk databases that may be available from industry or proprietary sources 6. Organizational process assets • Information on prior, similar projects, lessons learnt PMBOK 335

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571

11.4 Perform Quantitative Risk Analysis Tools and Techniques 1. Data gathering and representation techniques

Interviewing

a) • • •

Draws on the experience and historical data to quantify the probability and impact of risks Three point estimates are used Documentation of rationale of risk range and assumptions are important components of risk interviews

. See figure on PMBOK 336

PMBOK 336

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11.4 Perform Perform Quantitative Quantitative Risk Risk Analysis Analysis

Tools & Techniques

Three point estimate O+4M+P ----------------6

EXAMPLE OF THREE POINT ESTIMATION

Interviewing relevant stakeholders helps determine the three-point estimates for each WBS element for triangular, beta or other distribution. In this example the likely hood of completing the project in $41 million is small as shown in the simulation result. PMBOK 336

573

11.4 Perform Quantitative Risk Analysis Tools and Techniques 1. Data gathering and representation techniques b) Probability distributions • •



Continuous probability distributions are used in modeling and simulations. These represent the uncertainty in values such as durations of schedule activities and cost of project components. Discrete distribution can be used to represent uncertain events such as outcome of test or scenario in a decision tree See figure on PMBOK 337

PMBOK 337

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Tools & Techniques

1. Data gathering and representation techniques b) Probability distributions Type

Description

Examples

Used in which Tool/Technique

Continuous probability distributions

These represent the uncertainty in values

• Durations of schedule activities • Cost of project components

Modeling And Simulations

Discrete distributions

These represent uncertain events

• Outcome of a test • A possible scenario in a decision tree

EMV (Decision Tree)

575

EXAMPLE OF THREE POINT ESTIMATION

Tools & Techniques

Three point estimate O+4M+P ----------------6

Interviewing relevant stakeholders helps determine the three-point estimates for each WBS element for triangular, beta or other distribution. In this example the likely hood of completing the project in $41 million is small as shown in the simulation result. 576

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Result from Triangular Distribution simulation

75%

12% $31 M

$41M

$50M

$63M

$68 M

Assuming the data ranges given earlier and using triangular distribution, results shows that the project is only 12% likely to meet the $41M estimate. If the organisation wants a 75% success factor, then a budget of $50 M is required. To meet 100% success a budget of $63M is required.

577

Based on PMBOK 4th Ed.

11.4 Perform Quantitative Risk Analysis Tools and Techniques 2. Quantitative risk analysis and modeling techniques

a) Sensitivity analysis b) Expected monetary value analysis c) Modeling and simulation

PMBOK 338

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11.4 Perform Quantitative Risk Analysis Tools and Techniques a) Sensitivity analysis – – –



Helps to determine which risks will have the highest impact on the project. Which element of the project will have an effect on the base line when other elements are kept constant. (e.g. if the cost of cement for a long term dam project goes up it will have a major impact on the cost baseline. Hence change in cost of cement for a dam project will be a high risk element )

Tornado Diagram is a graph showing the impact of various risks. This helps in comparing relative importance of the risks so that action plan can be developed accordingly. See figure on PMBOK 338

PMBOK 338

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579

Tornado Diagram Positive impact

Negative impact Risk Assessment and Allocation for Highway Construction Management

Risk Management Matrix - High Probability, High Impact Return to Text

Tornado Diagram is a special type of Bar chart used in sensitivity analyses for Comparing the relative importance of the variables

The tornado diagram has a central vertical axis from which bars extend left and right, their length corresponding to the influence of the factors they represent on risk. The bars are ordered so that they decrease in influence as they go down.

580

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11.4 Perform Quantitative Risk Analysis Tools and Techniques 2. Quantitative risk analysis and modeling techniques b) Expected monetary value analysis • • •

Expected monetary value analyses (EMV) is a statistical method used to give a value to the risk (quantify). It is used for risk quantification Expected monetary value is calculated by two numbers: • •

probability of the risk to occur (between 0-100%) amount of money to be gained or lost if event occurs

See example on next slide…

PMBOK 339

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581

Decision Tree Analyses Decision: Build new plant or to upgrade the existing plant?

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Decision Tree Analyses Decision to be made is to invest $120M to build new plant or to upgrade the existing plant by investing $50M

Copyright PMI Lahore, Pakistan Chapter 2016

58 3

Decision Tree Analyses Decision to be made is to invest $120M to build new plant or to upgrade the existing plant by investing $50M

Copyright PMI Lahore, Pakistan Chapter 2016

58 4

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Decision Tree Analyses Decision to be made is to invest $120M to build new plant or to upgrade the existing plant by investing $50M

Copyright PMI Lahore, Pakistan Chapter 2016

58 5

Decision Tree Analyses Decision to be made is to invest $120M to build new plant or to upgrade the existing plant by investing $50M

Copyright PMI Lahore, Pakistan Chapter 2016

58 6

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Decision Tree Analyses Decision to be made is to invest $120M to build new plant or to upgrade the existing plant by investing $50M

Copyright PMI Lahore, Pakistan Chapter Project Management Institute, A Guide to Project Management Body of Knowledge, 2016 (PMBOK® Guide) Fifth Edition, Project Management Institute, Inc. 2013, Page 339. Fig. 11-16

58 7

Risk Contingency Calculation for negative and positive risks Expected Expected Probability

Cost

Schedule

Cost

Schedule

(%)

($)

(weeks)

($)

(weeks)

Risk Event 10 additional requirements

80%

$45,000

10

1 month delay getting key person Team productivty is 10% higher

40%

$15,000

60%

-$30,000

Additional key person is available

60%

Purchased product doesn't work

20%

Action

$36,000

8

1.5

$6,000

0.6

Minimize delay with senior management

-5

-$18,000

-3

Optimize team interfaces

-$25,000

-3

-$15,000

-1.8

Maximize opportunitiy with management

$5,000

2

$1,000

0.4

Identify backup product

KNOWN UNKNOWNS CONTINGENCY

$10,000

4.2

UNKNOWN UNKNOWNS CONTINGENCY

$30,000

8

TOTAL CONTINGENCY

$40,000

12.2

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Conduct requirements review

588

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11.4 Perform Quantitative Risk Analysis Tool and Techniques Quantitative Risk analyses and Modeling Techniques c) Modeling and simulation • •

• •

Project simulation uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives. Monte Carlo Technique is used to perform random iterations. For cost risk analyses, a simulation uses cost estimates For schedule risk analyses, network diagram is used..

See figure on PMBOK 340 PMBOK 340

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589

Monte Carlo method • In Monte Carlo simulation, values are sampled at random from the input probability distributions. • Each set of samples is called an iteration, and the resulting outcome from that sample is recorded.

• Monte Carlo simulation does this hundreds or thousands of times, and the result is a probability distribution of possible outcomes. • In this way, Monte Carlo simulation provides a much more comprehensive view of what may happen. It tells you not only what could happen, but how likely it is to happen. Palicade.com Copyright PMI Lahore, Pakistan Chapter 2016

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Three point estimate O+4M+P ----------------6

Tools & Techniques

EXAMPLE OF THREE POINT ESTIMATION

Interviewing relevant stakeholders helps determine the three-point estimates for each WBS element for triangular, beta or other distribution. In this example the likely hood of completing the project in $41 million is small as shown in the simulation result. PMBOK 336

Copyright PMI Lahore, Pakistan Chapter 2016

591

Result from Triangular Distribution simulation

75%

12% $31 M

$41M

$50M

$63M

$68 M

PMBOK 340

Assuming the data ranges given earlier and using triangular distribution, results shows that the project is only 12% likely to meet the $41M estimate. If the organisation wants a 75% success factor, then a budget of $50 M is required. To meet 100% success a budget of $63M is required. Copyright PMI Lahore, Pakistan Chapter

592

2016

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5/3/2017

Perform Quantitative Risk Analysis Tools and Techniques 3. Expert judgment – Expert judgment is used to interpret data and develop responses and action plan for the risks.

PMBOK 341

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593

Perform Quantitative Risk Analysis Outputs 1. Project Document updates • Risk register that was started in section 11.2 will get an update. – – – –

PMBOK 341

Probabilistic analyses of the project Probability of achieving cost and time objectives Prioritized list of quantified risk Trend in quantitative risk analyses results

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Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management

11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

595

Plan Risk Responses Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. The key benefit of this process is that it addresses the risks by their priority, inserting resources and activities into the budget, schedule, and project management plan as needed.

PMBOK 342

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596

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Plan Risk Responses – Done after the processes of Perform Qualitative Risk Analysis process and the Perform Quantitative Risk Analysis process – Also includes the identification and assignment of one person (“risk response owner”) to take responsibility for each agreed-to risk response – Addresses the risks by their priority, inserting resources and activities into • budget • schedule • project management plan (as needed) Copyright PMI Lahore, Pakistan Chapter 2016

11.5 Plan Risk Response

Inputs

Tools & Techniques

2

4

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

2

598

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299

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11.5 Plan Risk Responses

11.5 Plan Risk Responses Inputs 1.

Risk management plan • How the risk process is being conducted

2.

Risk register • • • • •

Identified risks Root causes of risks List of potential responses Risk owners Risk analysis and response

• Trends and risks on watch list

PMBOK 343

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599

Plan Risk Responses Tools and Techniques 1. Strategies for negative risks or threats (4) a) Avoid • Risks can be avoided by changing the project management plan. E.g. • Extending the schedule to avoid risk of delay in completion • Change the strategy • Reducing scope to avoid the risk of delay. • Shut down the project to avoid the risk related to the project. • Get clarification of the requirements early to avoid risk of changes later. • Improving project team and stakeholder communication to avoid risk due to misunderstanding. • Getting expert advise to avoid risks. PMBOK 344

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Plan Risk Responses Tools and Techniques 1. Strategies for negative risks or threats b) Transfer • Transferring of risks is to shift the negative impact of a risk and the ownership to a third party • In this the risk is not eliminated, it is transferred. • Normally one has to pay some premium for transferring the risk. Examples: Getting Insurance for your car Performance bonds for equipment or machinery Warranties for Products Guarantees for Services

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Plan Risk Responses Tools and Techniques 1. Strategies for negative risks or threats

c) Mitigate • This is to reduce the probability or impact of a risk and bring it within the limits. • Examples: • Adopting a process that is less difficult. • Taking an easier path to avoid getting lost • Doing more tests to ensure that the system is working. • Selecting a more supplier who is more trustworthy. • Making a prototype to see if the design is good. • Adding redundancy in the system to avoid failure. Two servers instead of one. Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Risk Responses Tools and Techniques 1. Strategies for negative risks or threats d) Accept

ATMA

• In certain case the project team will decides not to do anything for certain risks. • There is 3 type of acceptance strategies: • Active Acceptance - nothing will be is done to reduce the risk. However a contingency reserve is kept. This could be money, or time, or both. • Passive Acceptance - nothing is done to reduce the risk. The team deals with the risk when it occurs. At that time a workaround is used for the risk. • Workarounds are responses that were not initially planned, but are required to deal with emerging risks that were unidentified or accepted passively Copyright PMI Lahore, Pakistan Chapter 2016

603

Plan Risk Responses Tools and Techniques 2. Strategies for positive risks or opportunities (4) a)

Exploit • Take action to ensure that the opportunity is made to happen • Examples – Getting more talented resources for reducing the time to complete the project. b) Share • Sharing the opportunity with a third party who can help in realizing the benefits of the opportunity. • Examples – Partnerships and Joint Venture – Teams to carry out the work

PMBOK 345

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Plan Risk Responses Tools and Techniques 2. Strategies for positive risks or opportunities

EESA

c)

Enhance • To take certain action that will increase the probability for the opportunity to occur. • Examples – add more resources to increase the probability of an activity to finish early. d) Accept • Doing nothing for the time being and taking advantage when the opportunity happens. • Example – Investment opportunity that has emerged due changed circumstances.

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Plan Risk Responses Tools and Techniques 3. Contingent response strategies – Some responses are designed for use ‘only if certain events occurs’. – Response plan that will only be executed under certain predefined conditions, if it is believed that there will be sufficient warning to implement the plan – Example: • Events that trigger the contingency response, such as missing intermediate milestones or gaining higher priority with a supplier, should be defined and tracked

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Plan Risk Responses Tools and Techniques 4. Expert judgment – Expertise may be used to develop the response as required for the risks.

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Plan Risk Responses Outputs 1. Project management plan updates Following plans will be updated to reflect changes • • • • • • • •

PMBOK 346

Schedule management plan Cost management plan Quality management plan Procurement management plan Human resource management plan Scope Baseline Schedule baseline Cost baseline

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Plan Risk Responses Outputs 2. Project documents updates • Risk register updates – Risk owners and assigned responsibilities, prioritized list of risks, response strategies, risk triggers, contingency plans, fallback plans, secondary risks, residual risks, contingency reserves, triggers that call for their execution

• Assumptions log updates – Some assumptions may change after risk analyses • Technical Documentation updates – Technical approaches may change after risk analysis • Change Requests – Change requests may be generated due to risk response requirements. Copyright PMI Lahore, Pakistan Chapter 2016

609

Project Risk Management Project Risk Management 11.0

11.1 Plan Risk Management 11.2 Identify Risks

11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Control Risks Copyright PMI Lahore, Pakistan Chapter 2016

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11.6 Control Risks Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. The key benefit of this process is that it improves efficiency of the risk approach throughout the project life cycle.

PMBOK 349

Copyright PMI Lahore, Pakistan Chapter 2016

611

11.6 Control Risks

Inputs

4

Tools & Techniques

6

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

5

612

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11.6 Control Risks

Control Risks Inputs 1. Project Management Plan - Contains risk management plan, gives guidance for risk monitoring and controlling

2. Risk Register - Identified risk, risk owner, responses, residual and secondary risks, Watch list/priority risks, contingency reserves

3. Work Performance Data - Deliverable status, Schedule progress, Costs incurred

4. Work Performance Reports - Variance analysis, Earned value data, Forecasting data PMBOK 351

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613

Control Risks Tools and Techniques 1. Risk reassessment – Risk are re-assessed in meetings and reviews to: • Find out if new risks have come up • Find out the status of the present risks • To close the risks that have ended

2. Risk audits – In risk audits documents are examined to check • To see if the risk process in taking care of risk was effective. • Did the root causes of risks identified • Has the risk management process being effective in controlling the risks It is the responsibility of the project manager to carry out or arrange risk audits at pre-defined time intervals.

PMBOK 351

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Control Risks Tools and Techniques 3. Variance and trend analysis – Variance analyses is performed to compare the planned results to the actual results – Earned value analysis and trend analysis is used for monitoring overall project performance – Outcomes from these analyses may forecast potential deviation of the project at completion from cost and schedule targets – Deviation from the baseline plan may indicate the potential impact of threat or opportunities – .

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Control Risks Tools and Techniques 4. Technical performance measurement – Technical performance measurement compares technical accomplishments during project execution to the project management plan’s schedule of technical achievement – Technical performance measures can include • Weight • Transaction times • Number of delivered defects • Storage capacity – Deviation demonstrates more or less functionality than planned at a milestone. It can help in • Forecasting the degree of success in achieving the project’s scope • Exposing the degree of technical risk faced by the project Copyright PMI Lahore, Pakistan Chapter 2016

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Control Risks Tools and Techniques 5. Reserve analysis – Reserve analyses compares the amount of contingency reserve remaining to the amount of risk at any time to see if the remaining reserve is adequate

6. Meetings – Risk management should be part of the agenda for the project status meetings. – Frequent discussions with help in identifying risks and opportunities

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Control Risks Outputs 1. 2. 3. 4. 5.

Work performance information Change requests Project management plan updates Project document updates Organizational process assets update

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PMI Lahore, Pakistan Chapter PMP® Certification Course

Project Procurement Management Chapter 12 Copyright PMI Lahore, Pakistan Chapter 2016

PMI – Lahore Chapter 2013 - All rights reserved.

Project Procurement Management • Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team • Includes contract management • The project team, which is part of the “performing organization”, can be either the buyer or the seller • Contracts are legal documents between a buyer and a seller. A contract represents a mutually binding agreement that obligates the seller to provide something of value (e.g., specified products, services or results) and obligates the buyer to provide monetary or other valuable compensation • Contract can also be called • an agreement • an understanding • Subcontract • Purchase order PMBOK 357

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Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

9 HR Management

10

11

Process Groups Initiating Develop Project Charter

Planning

Develop Project Management Plan

Executing

Monitoring and Control

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Plan Quality Management

Page 61

Communication Management

Plan HR Management

Plan Communication Management

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Control Quality

Control Risks

Conduct Quantitative Risk Analyses

4

Plan Risk Response 12 13

Procurement Management Stakeholders Management

Plan Procurement Management Identity Stakeholders

Conduct Procurements

Control Procurements

Manage Stakeholders Copyright Management PMI Lahore, Pakistan Chapter Plan Stakeholders Engagement

Control Stakeholders Engagement

621 2016

Close Procurements

Project Procurement Management Project Procurement Management 12.0

Plan Procurement Management 12.1 Conduct Procurements 12.2 Control Procurements 12.3 Close Procurements 12.4

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12.1 Plan Procurement Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers. The key benefit of this process is that it determines whether to acquire outside support or not.

PMBOK 358

Copyright PMI Lahore, Pakistan Chapter 2016

623

12.1 Plan Procurement Management

Inputs

Tools & Techniques

9

4

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

7

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12.1 Plan Procurement Management

Plan Procurement Management Inputs 1. 2. 3. 4. 5. 6. 7. 8. 9.

Project Management Plan Requirements documentation Risk register Activity resource requirements Project schedule Activity cost estimates Stakeholder Register Enterprise environmental factors (EEFs) Organizational process assets (OPAs)

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12.1 Plan Procurement Management

Plan Procurement Management Inputs 9. Organizational Process Assets > Contract types Generally three type of contracts are available for use I.

Fixed price contracts a) b) c)

II.

Firm Fixed price Contracts – FFP Firm Fixed price plus Incentive Fee Contract – FPIP Firm Fixed price with Economic price adjustment – FP-EPA

Cost reimbursable a) b) c)

III.

Cost plus Fixed Fee Contract- CPFF Cost plus incentive fee contracts – CPIF Cost plus Award Fee contract – CPAF

Time and Material

PMBOK 362

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12.1 Plan Procurement Management

Plan Procurement Management Inputs 9. Organizational Process Assets > Contract types III. Time and Material contracts This is a hybrid type of contract. Meaning it has two type of contracts built into it; fixed price and cost-reimbursable. It is used when exact quantities are not know. E.g. Manpower supply contracts where it may not be exactly known for how many days the manpower it required. Rates are agreed between buyer and seller before the contact is agreed. (like fixed price, but time is kept open). E.g. Software developed @ $500 per day for min 10 days and approximately 20 days, however it may be even longer. Copyright PMI Lahore, Pakistan Chapter 2016

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12.1 Plan Procurement Management

Risk associated with Contracts LOW

HIGH

Fixed Price 1. Firm Fixed Price (FFP) 2. Fixed Price Incentive Fee (FPIF) 3. Fixed Price with Economic Price adjustment

Seller Risk

Buyer Risk

Contracts (FP-EPA) Cost Reimbursable 1. Cost Plus Fixed Fee (CPFF) 2. Cost Plus Incentive Fee (CPIF) 3. Cost plus Award Fee Contracts (CPAF) 1. Time and Materials (T&M)

HIGH

LOW Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Procurement Management Inputs

Fixed Price Contract Estimate

Actual Scenario #1

Actual Scenario #2

Cost of work to be done

$100,000

$80,000

$110,000

Total Price of the contract

$110,000

$110,000

$110,000

$10,000

$30,000

Profit

Copyright PMI Lahore, Pakistan Chapter 2016

-0-

629

Plan Procurement Management Inputs Cost plus Fixed Fee (CPFF) Estimated Cost of work to be done Fixed Fee to be paid to seller Total price of contact Profit

Actual Scenario #1

Actual Scenario #2

$100,000

$80,000

$110,000

$10,000

$10,000

$10,000

$110,000

$90,000

$120,000

$10,000

$10,000

$10,000

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Cost plus Incentive Fee (CPIF) Estimated

Actual Scenario #1

Actual Scenario #2

Cost of work

$100,000

$80,000

$110,000

Target Profit

$10,000

$10,000

$10,000

Sharing formula

85% buyer 15% seller

15% x 20,000 = 15% x -10,000 = -$1,500 $3,000

Ceiling Price of Contract

$115,000

$115,000

$115,000

Total Price of contract

$110,000

$93,000

$115,000

$10,000

$13,000

$5,000

Profit

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Plan Procurement Management Inputs Cost plus Incentive Fee (CPIF) Estimated

Actual Scenario #1

Actual Scenario #2

Cost of work

$100,000

$80,000

$110,000

Target Profit

$10,000

$10,000

$10,000

Sharing formula Total Price of contract Profit

85/15 15% x 20,000 = 15% x -10,000 = $3,000

-$1,500

$110,000

$93,000

$118,500

$10,000

$13,000

$8,500

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Plan Procurement Management Tools and Techniques 1. Make-or-buy analysis • One of the first the organization has to decide is what deliverable are they going to make in-house and what they are going to get from outside from contractors. • Decision are made based on budget, in-house capability and urgency. • After making buy decision the next decision is to buy or lease.

2. Expert judgment • Experts who have previous experience in purchase can help in developing procurement plan.

PMBOK 365

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633

Plan Procurement Management Tools and Techniques 3. Market Research – Market Research related to vendors availability and capability is required in developing the procurement plan. – Information can be taken from online reviews, networking, etc. which can identify market capabilities of vendors, contactors, supplier, i.e. sellers.

4. Meetings – Meeting potential bidders can help in developing procurement plan by getting information related to the marketplace.

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Plan Procurement Management Outputs 1. Procurement management plan The plan shows how the procurement process will be conducted and will have information on: • • • • • • • • •

PMBOK 366

Types of contracts that will be used Risk issues related to contracts and procurements If independent estimates are required How multiple suppliers will be managed Coordination with other aspects of the project Constraints and assumptions related to procurement Performance bonds or insurances requirements Contract Forms and other formats to be used Prequalified sellers lists

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Plan Procurement Management Outputs 2. Procurement statements of work (SOW) – Procurement statement of work (SOW) describes in sufficient details the procurement item to be purchased by the buyer from the seller. This helps in determining if the seller will be able to supply the required item. – SOW should be developed for each item that is contracted out. – SOW Should be clear and complete so that the seller can understand it fully. It should include: • Specification of the deliverable • How many required • Performance required by the deliverable • Where the deliverable is required • Any other requirements that is unique to the deliverable

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Plan Procurement Management Outputs 3. Procurement documents – These documents are used to get proposals from sellers for the work they will be required to do: – Some of the terms used for different type of these proposals are: • • • • • • •

Request for Information (RFI) Invitation for bid (IFB) Request for Proposal (RFP) Request for quotation (RFQ) Tender Notice (invite bids for project) Invitation for negotiation Invitation for seller’s initial response

PMBOK 368

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637

Plan Procurement Management Outputs 4. Source selection criteria – Criteria is developed and used to rate the seller and the proposal given by the seller. – The objective is to see if the seller will be able to do the required work. – Criteria may include • • • • • • • •

Does the seller understand what is required. What is the technical capability of the seller What is the Management approach of the seller Will the seller offer Warranty Is the seller financially capable. Does the supplier have Production to produce what is needed. What is the size of sellers Business. What has been the past performance of the Sellers See PMBOK 369 for details Copyright PMI Lahore, Pakistan Chapter 2016

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Plan Procurement Management Outputs 5. Make-or-buy decisions – Decisions related to make or buy will be done during procurement planning.

6. Change requests – Change requests may be generated for any changes that may be required. These will be go through the Perform Integrated Change Process for approval

7. Project Document Updates – Requirements documentation will get updated – Requirements traceability matrix will get updated – Risk register will get updated as new risks may emerge

Copyright PMI Lahore, Pakistan Chapter 2016

639

Project Procurement Management Project Procurement Management 12.0

Plan Procurement Management 12.1 Conduct Procurements 12.2 Control Procurements 12.3 Close Procurements 12.4

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12.2 Conduct Procurements Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 371

Copyright PMI Lahore, Pakistan Chapter 2016

641

12.2 Conduct Procurements

Inputs

Tools & Techniques

8

7

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

6

642

2 Days Project Management Course by PMI Lahore at CNEEC Pakistan Engineering Co

321

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12.2 Conduct Procurements

Conduct Procurements Inputs 1. 2. 3. 4. 5. 6. 7. 8.

Project management plan Procurement documents Source selection criteria Seller proposals Project documents Make-or-buy decisions Procurement statement of work Organizational process assets

Copyright PMI Lahore, Pakistan Chapter 2016

643

Conduct Procurements Tools and Techniques 1. Bidder conferences • Bidder’s conference is held between the buyer and the bidders to discuss the bid and the work to be done. • To make sure that no one bidder gets preferential treatment, all bidders must be invited to the conference. • The objective is that all bidders must understand the work that is to be done • Site visits should also be considered if required. • All questions and their answers should be documented and become a part of the procurement documents

PMBOK 375

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Conduct Procurements Tools and Techniques 2. Proposal evaluation techniques • Some techniques should be developed and used to evaluate the proposal. • The evaluation committee will decide how the evaluation will be done and get it approved by the management. (e.g. price, or technical)

3. Independent estimates • The buyer should have its own estimates which can be used for comparing it with the bidders estimates. • Sometimes estimates from 3rd parties can be sought.

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Conduct Procurements Tools and Techniques 4. Expert judgment – Subject matter experts from other functional areas (accounting, legal, administration) can give expert advice during the conduct procurement process wherever such advice is required.

5. Advertising – Advertising can be used to expand the list of sellers if required.

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Conduct Procurements Tools and Techniques 6. Analytical techniques – While conducting procurement analytical techniques can be used to identify if the vendor will be able to deliver as per the SOW. (E.g. forecasting schedule SPI, cost CPI, )

7. Procurement negotiations – Negotiations can be held between the buyer and seller on the SOW and other matters related to the work. – Management may appoint some other person from contract department to lead the negotiation.

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Conduct Procurements Outputs 1. Selected sellers • A list of sellers who, after bid evaluation are in the competitive range is developed after the evaluation. • This list is used for final approval by the management for selecting the seller/contractor to do the required work. • Based on the approval the selected seller are awarded contract for project work.

PMBOK 377

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Conduct Procurements Outputs 2. Agreements • Agreements are signed between the buyer and the seller for the work that is awarded to the seller. • This agreement can be a complex document or a simple purchase order. However, it is legally binding on both parties. • It describes what work/services will be provided by the seller. • And how the seller will be compensated for the work/services it is going to provide. • Some of the documents the agreement should have are: – – – – – –

SOW and the list of deliverables Schedule for the work to be done The cost of the contract and terms of payment Inspections to be carried out Any warranty or support associated with the deliverables What method to be used in case of any claims or disputes Copyright PMI Lahore, Pakistan Chapter 2016

649

Conduct Procurements Outputs 3. Resource calendars • In case the contract involves resources from outside, the resource calendar will show the availability of contracted resources at different time during the contract.

4. Change requests • Changes requests will go through the Integrated Change Control Process for approval

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Conduct Procurements Outputs 3. Project management plan updates As the work progresses Cost, scope, and schedule base lines will get updated.

4. Project document updates • Requirement documentation • Traceability documentation • Risk Register

Copyright PMI Lahore, Pakistan Chapter 2016

651

Project Procurement Management Project Procurement Management 12.0

Plan Procurement Management 12.1 Conduct Procurements 12.2 Control Procurements 12.3 Close Procurements 12.4

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12.3 Control Procurements Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 379

Copyright PMI Lahore, Pakistan Chapter 2016

653

12.3 Control Procurements

Inputs

Tools & Techniques

6

7

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

5

654

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327

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12.3 Control Procurements

Control Procurements Inputs 1. 2. 3. 4. 5. 6.

Project management plan Procurement documents Agreements Approved change requests Work Performance reports Work performance Data

Copyright PMI Lahore, Pakistan Chapter 2016

655

Control Procurements Tools and Techniques 1. Contract change control system • Contract change control system defines the process by which the procurement can be modified. • It includes the paperwork, tracking system, dispute resolution procedure, and approvals levels. • The contract change control system is integrated with the Integrated Change Control Process.

2. Procurement performance reviews • Procurement performance review is a structured review of the seller’s progress to deliver the scope. • The reviews can include – A review of document prepared by the seller. – Inspections and audits carried out by the buyer

PMBOK 383

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Control Procurements Tools and Techniques 3. Inspections and audits – Inspections and audits required by the buyer and supported by the seller are conducted during the project to verify compliance in seller’s work processes or deliverable.

4. Performance reporting – Work performance data and reports from seller are evaluated against the agreed requirement. – These provide the management with information about the seller performance.

Copyright PMI Lahore, Pakistan Chapter 2016

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Control Procurements Tools and Techniques 5. Payment systems – Payments to the seller are processed through the buyers accounts payable system. – All payments should be made as per the terms and conditions mentioned in the contract.

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Control Procurements Tools and Techniques 6. Claims administration • Claims are contested changes on which the buyer and seller cannot reach an agreement. • Generally speaking these are works that are carried out without approval or without proper documentation. • The preferred method to resolve disputes is through negotiations or Alternate Dispute Resolution (ADR). • Arbitration and mediation are forms of alternative dispute resolution (ADR)

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659

Control Procurements Tools and Techniques 7. Records management system • Record management system is used by the Project manger to manage contracts and agreement. • This could be part of Management Information System that is used by the buyer such as Primavera or MS Project. • It also has archives of contract documents and previous records.

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5/3/2017

Control Procurements Outputs 1. 2. 3. 4. 5.

Work Performance Information Change requests Project management plan updates Project documents updates Organizational process assets updates

Copyright PMI Lahore, Pakistan Chapter 2016

661

Project Procurement Management Project Procurement Management 12.0

Plan Procurement Management 12.1 Conduct Procurements 12.2 Control Procurements 12.3 Close Procurements 12.4

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12.4 Close Procurements Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of completing each project procurement

PMBOK 386

Copyright PMI Lahore, Pakistan Chapter 2016

663

14.4 Close Procurement

Inputs

Tools & Techniques

2

3

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

2

664

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332

5/3/2017

14.4 Close Procurement – The Close Procurements process also involves administrative activities such as • Finalizing open claims • Updating records to reflect final results • Archiving information for future use – Early termination of a contract is a special case of procurement closure that can result from • a mutual agreement of both parties • the default of one party – The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract

PMBOK 387

Copyright PMI Lahore, Pakistan Chapter 2016

665

12.4 Close Procurements

Close Procurement Inputs 1. Project management plan – Project plan including procurement plan

2. Procurement documents – Includes » Contract Schedule » Contract Cost » Contract Quality » Payment records » Inspection results

PMBOK 388

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Close Procurement Tools and Techniques 1. Procurement audits – Audit of all the procurement processes from Plan procurement to control procurement is carried out to determine successes and failures.

2. Procurement Negotiations – Negotiations to settle all disputes, claims, and issues is carried out. – If settlement is not done by negotiations then alternate dispute resolution (ADR) methods are used, such as, mediation or arbitration. – Litigation in the courts is least desired option.

PMBOK 388

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667

Close Procurement Tools and Techniques 3. Records management system – Record management system is used by the project manager to manage contacts, procurement documentation and records.

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Close Procurement Outputs 1. Closed procurements – The buyer, usually through its authorized procurement administrator, provides the seller with formal written notice that the contract has been completed. – Requirements for formal closure are defined in the contract agreement.

PMBOK 389

Copyright PMI Lahore, Pakistan Chapter 2016

669

PMI-Lahore Pakistan Chapter PMP® Certification Class

Project Stakeholders Management Chapter 13 Copyright PMI Lahore, Pakistan Chapter 2016

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Knowledge Areas

4

Integration Management

5

Scope Management

6

Time Management

7

Cost Management

8

Quality Management

9 HR Management

10

11

Process Groups Initiating Develop Project Charter

Planning

Develop Project Management Plan

Executing

Monitoring and Control

Closing

Direct & Manage Project Work

Monitoring & Control Project Work Perform Integrated Change Control

Close Project or Phase

Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Duration Develop Schedule Plan Cost Management Estimate Costs Determine Budget Plan Quality Management

Page 61

Communication Management

Plan HR Management

Plan Communication Management

Validate Scope Control Scope

Control Schedule

Control Costs Perform Quality Assurance Acquire Project Management Team Develop Project Management Team Manage Project Management Team

Control Quality

47 Processes

Manage Communication Control Communication

Plan Risk Management Identify Risks Conduct Qualitative Risk Analyses

Risk Management

Control Risks

Conduct Quantitative Risk Analyses

4

Plan Risk Response 12 13

Procurement Management Stakeholders Management

Identity Stakeholders

Plan Procurement Management

Conduct Procurements

Control Procurements

Plan Stakeholders Management

Manage Stakeholders Engagement

Control Stakeholders Engagement

Close Procurements

Project Stakeholders Management Project Stakeholder Management

Identify Stakeholders

13.1

13.0

Plan Stakeholder Management 13.2 Manage Stakeholder Engagement 13.3 Control Stakeholder Engagement 13.4 Copyright PMI Lahore, Pakistan Chapter 2016

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13.1 Identify Stakeholders Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 391

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673

13.1 Identify Stakeholders

Inputs

Tools & Techniques

4

3

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Outputs

1

674

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13.1 Identify Stakeholders

Identify Stakeholders Inputs 1. Project charter – Information of external and internal parties that are associated with the project • Sponsors, Customers, Team Members, Organizations, etc..

2. Procurement documents – Contains information about external stakeholders such as suppliers, contactors, vendors, etc.

PMBOK 394

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675

13.1 Identify Stakeholders

Identify Stakeholders Inputs 3. Enterprise environmental factors – Culture and Structure of the organization – Government or Industry regulations and Standards

4. Organizational process assets – Templates to be used for stakeholder register – Lessons Learned from Previous Projects – Stakeholder registers from previous projects

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Identify Stakeholders Tools and Techniques 1. Stakeholder analysis 2. Expert judgment 3. Meetings

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Identify Stakeholders Tools and Techniques 1. Stakeholder analysis – Technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project – Interests, Expectations & Influence Stakeholders Relationships – help build coalitions to enhance project success Step 1

– Identify the Stakeholder, their roles, departments, interests, knowledge levels, expectations and influence levels – Key stakeholders include anyone in a decision-making or management role who is impacted by the project outcome, such as • Sponsor • Project manager, • Primary customer PMBOK 395

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Identify Stakeholders Tools and Techniques Step 2 Analyze the potential impact or support each stakeholder could generate prioritize key stakeholders, communicate & manage their expectations using multiple classification models: Power/Interest Grid – grouping based on their level of authority (‘power’) and their level of concern (‘interest’) regarding the project outcomes. Power/Influence Grid – grouping based on their level of authority (‘power’) and their active involvement (‘concern’) in the project Influence/Impact Grid – grouping based on their active involvement (‘influence’) in the project and their ability to effect changes to the project’s planning or execution ‘impact’. Salience Model – Describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate). Copyright PMI Lahore, Pakistan Chapter 2016

679

Power/Interest Grid

High Manage closely

Monitor (Min.effort)

Keep Informed

Power

Keep satisfied

Low

Interest

High

See figure on PMBOK page 397

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PMBOK 397

Copyright PMI Lahore, Pakistan Chapter 681 2016

Power/Influence Grid

High Manage closely

Monitor (Min.effort)

Keep Informed

Power

Keep satisfied

Low

Influence

High

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Influence/Impact Grid grouping based on their active involvement (‘influence’) in the project and their ability to effect changes to the project’s planning or execution ‘impact’. High Manage closely

Monitor (Min.effort)

Keep Informed

Impact

Keep satisfied

Low

Influence

High

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Identify Stakeholders Tools and Techniques 2. Expert judgment – Use expert advice in identifying stakeholders and analyzing them. Use expertise of – – – – – –

Senior Management Identified Key Stakeholder Project Managers for other projects Subject Mater Experts Consultants Professional & Technical Associations

3. Meetings – Profile analysis meetings – meetings designed to develop an understanding of major project stakeholder. Copyright PMI Lahore, Pakistan Chapter 2016

685

Identify Stakeholders Outputs 1. Stakeholder register – The main output which used in all the remaining processes is the Stakeholders register. This list has all details related to the stakeholders. E.g. a) Identification Information of the stakeholder • Name, Organization, Position, Location, Role in the Project, Contact Information, key stakeholder or not.

a) Assessment Information • Expectations, Influence Phase in the Project Life Cycle

a) Stakeholder Classification related to supporting the project • Resistant/Neutral/Supporter/leader

– Stakeholder register should be consulted and updated on a regular basis, as stakeholders may change and new ones are identified. This should be done throughout the lifetime of the project PMBOK 398

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Project Stakeholders Management Project Stakeholder Management

Identify Stakeholders 13.1

13.0

Plan Stakeholder Management 13.2 Manage Stakeholder Engagement 13.3 Control Stakeholder Engagement 13.4 Copyright PMI Lahore, Pakistan Chapter 2016

687

13.2 Plan Stakeholder Management Initiating

Planning

Executing

Monitoring & Controlling

Closing

The process of determining the project stakeholder information needs and defining a communication approach

PMBOK 399

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688

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13.2 Plan Stakeholders Management

Inputs

Tools & Techniques

4

3

Outputs

Copyright PMI Lahore, Pakistan Chapter 2016

2

689

13.2 Plan Stakeholder Management

Plan Stakeholder Management Inputs 1. Project Management Plan – gives detail of how the stakeholder management will be done.

2. Stakeholder register – Gives details of stakeholders

3. Enterprise environmental factors (EEFs) •

Conditions and environment where the project is being carried out

4. Organizational process assets (OPAs) • Historical information and • Lessons learned PMBOK 400

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345

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Plan Stakeholder Management Tools and Techniques 1. Expert Judgment 2. Meetings 3. Analytical Techniques

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Plan Stakeholder Management Tools and Techniques 2. Meetings • Meeting are held to see the how much the stakeholders are engaged with the project. • This information is used to develop the stakeholder management plan

3. Analytical Techniques – step 1 • Compare the current level of engagement of stakeholders with the planned level of engagement

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Plan Stakeholder Management Tools and Techniques 3. Analytical Techniques – step 2 There are 5 levels how a stakeholder would be engaged with a project: Unaware – the stakeholder is not aware of the project and what impact it will have. Resistant – the stakeholder does not want the project to go ahead, so he/she is resisting the project. Neutral – the stakeholder knows about the project but is not either resisting or supporting it. He/she is kind of neutral. Supportive - the stakeholder supports the project and wants it to go ahead. Leading – the stakeholder is in the leading position of the project, he/she is supporting it and wants the project to succeed.

1. 2. 3. 4. 5.

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Plan Stakeholder Management Tools and Techniques 3. Analytical Techniques – step 3 –

The chart shows the engagement levels of stakeholder with regard to the project. The desired level is Supporting. PP = Present Position WP = Wanted Position

Stakeholder

Unaware

S-1 S-2

Resisting

Neutral

Supporting

PP

WP

WP

WP

WP

PP

WP

PP

S-3

PP

S-4

Leading

WP

Action plan is required for S-1, S-2 and S-4. S-3 is supportive so he/she should be encouraged to move to Leading level Copyright PMI Lahore, Pakistan Chapter 2016

694

See figure on PMBOK page 403

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Plan Stakeholder Management Outputs 1. Stakeholder Management Plan – The stakeholder management plan describes the management strategies that will be adopted for managing the stakeholders. – Objective is to keep the stakeholders engaged and supporting the project. – It provides information on: • • • •

The Desired and current engagement levels of the stakeholders Changes in engagement levels to be done and how these will be done. Communication requirements of the stakeholders Information and report to be given to the stakeholders to keep them informed and engaged. • How the stakeholder management plan will be updated

PMBOK 403

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695

Plan Stakeholder Management Outputs 2. Project document update – The main document that will get updated is the stakeholders register. – Its columns will start getting filled up with information related to the stakeholders with will be used in managing the stakeholders engagement.

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Project Stakeholders Management Project Stakeholder Management

Identify Stakeholders 13.1

13.0

Plan Stakeholder Management 13.2 Manage Stakeholder Engagement 13.3 Control Stakeholder Engagement 13.4 Copyright PMI Lahore, Pakistan Chapter 2016

697

13.3 Manage Stakeholder Engagement Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

PMBOK 403

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698

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13.3 Management Stakeholder Engagement

Inputs

Tools & Techniques

4

3

Outputs

5

Copyright PMI Lahore, Pakistan Chapter 2016

699

13.3 Manage Stakeholder Engagement

Management Stakeholder Engagement Inputs 1. Stakeholder management plan • Provides information on how the various stakeholders can be best involved in the project

2. Communication management plan • Provides information on how the communication will be managed for the stakeholders

3. Change log • Changes and their impact to the project in terms of time, cost, and risk, must be communicated to the appropriate stakeholders

4. Organizational process assets • Organizational communication requirements • Historical information about previous projects PMBOK 406

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Management Stakeholder Engagement Tools and Techniques 1. Communication methods 2. Interpersonal skills 3. Management skills

Copyright PMI Lahore, Pakistan Chapter 2016

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Management Stakeholder Engagement Tools and Techniques 1. Communication methods • This describes the type of communication methods that will be used for managing the engagement of stakeholders such as: – Meetings with group or individual stakeholders – Video and audio conferences for stakeholders that are not colocated – Emails, chats, etc. • The objective is to keep the stakeholders engaged and supporting the project.

PMBOK 407

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Management Stakeholder Engagement Tools and Techniques 2. Interpersonal skills • • • •

Building trust Resolving conflict Active listening Overcoming resistance to change

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Management Stakeholder Engagement Tools and Techniques 3. Management Skills

• The project manager applied Management Skills to coordinate and harmonize the group towards accomplishing the project objectives • Examples – – – –

Facilitate consensus towards project objectives Influence people to support the project Negotiate agreements to satisfy the project needs Modify organizational behavior to accept the project outcomes

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Management Stakeholder Engagement Outputs 1. 2. 3. 4. 5.

Issue log Change requests Project management plan updates Project document updates Organizational process assets updates

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705

Project Stakeholders Management Project Stakeholder Management

Identify Stakeholders

13.1

13.0

Plan Stakeholder Management 13.2 Manage Stakeholder Engagement 13.3 Control Stakeholder Engagement 13.4 Copyright PMI Lahore, Pakistan Chapter 2016

706

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13.4 Control Stakeholder Engagement Initiating

Planning

Executing

Monitoring & Controlling

Closing

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

Copyright PMI Lahore, Pakistan Chapter 2016

707

13.4 Control Stakeholders Engagement

Inputs

Tools & Techniques

4

3

Copyright PMI Lahore, Pakistan Chapter 2016

Outputs

5

708

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13.4 Control Stakeholder Engagement

Control Stakeholders Engagement Inputs 1. Project management plan – all subsidiary plans 2. Issue log – list of all issues related to the stakeholder and status. 3. Work performance data • Data on the status of the work that has been completed in terms of Percentage and other information such as number of defects, actual costs, actual time etc.

4. Project documents • • • • •

Project schedule Stakeholder register Issue log Change log Project communications

PMBOK 411

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709

Control Stakeholders Engagement Tools and Techniques 1. Information management system • Provides a standard tool for the project manager to – – – – –

Capture Information Store Information Distribute Information Consolidate reports from several systems Facilitate report distribution to stakeholders

2. Expert judgment – Senior management – Identified key stakeholders – Consultants etc.

3. Meetings – Meeting are used to exchange and analyze information about stakeholder engagement and develop action plan for controlling the stakeholders engagement. PMBOK 412

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Control Stakeholders Engagement Outputs 1. 2. 3. 4. 5.

Work Performance information Change requests Project management plan updates Project document updates Organizational process assets updates

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711

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356

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