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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
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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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2016 3

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

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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

Copyright PMI Lahore, Pakistan Chapter


2016 9

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

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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 Copyright PMI Lahore, Pakistan Chapter


2016 11

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 Copyright PMI Lahore, Pakistan Chapter


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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)

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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 X
X
2. Running 1122 centre
3. Change in structure, staffing, in an organisation X
4. Implementing a new Computer system X
5. Maintaining a email system X
6. Constructing a building or plant X
7. Campaign for a political office X
8. Developing and implementing a new procedure X
9. Arranging a function or event X
10. Operation of a Fertilizer plant 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

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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

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What is Project Management?

The five Process groups are:


1. Initiation
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing

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What is Project Management?


The 10 Knowledge Areas
1. Integration Management
2. Scope Management
3. Time Management All 47 processes are
4. Cost Management in these 10
knowledge areas
5. Quality Management
6. HR Management
7. Communication Management
8. Risk Management
9. Procurement Management
10. Stakeholders Management
Copyright PMI Lahore, Pakistan Chapter
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What is Project Management?


Work within the 6 project constraints:

1. Scope (Work) The Iron Triangle


Primary 2. Time (Schedule)
3. Cost (Budget)
4. Resources Quality

Secondary 5. Risks
6. Quality
Resources Risks

Change in any one will Scope

have an effect on the others.

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The Project Managers 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.

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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

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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

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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

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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

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Enterprise Environmental Factors (EEFs)

Internal EEFs External EEFs


(related to organization) (related to the place of project)
Organizational culture, structure Market place conditions
Infrastructure facilities inside the Government / Industry
Company. standards
HR administration Political situation
Company work authorization Human resources availability
system Communications systems
Stake holders risk tolerances Commercial databases
Project Management availability
Information Systems used by the General security
company 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 Copyright PMI Lahore, Pakistan Chapter
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Stakeholders

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Project Life Cycle

Project Life Cycle:


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

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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)

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Characteristics of Project Life Cycle

1 2 3 4

Initiating Executing
Closing
Planning

PMBOK 39 Copyright PMI Lahore,33


Pakistan Chapter
2016

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.

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Single Phase Project

PMBOK 42 Copyright PMI Lahore, Pakistan Chapter


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Three Phase Project


PHASE I PHASE II PHASE III

Front End Engineering Design Plant detail design Plant construction

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Overlapping Phase Project


PHASE I PHASE II

Factory Design
Construction
PMBOK 43 Copyright PMI Lahore, Pakistan Chapter
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Project Management Processes

PMBOK 47 Copyright PMI Lahore, Pakistan Chapter


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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 Copyright PMI Lahore, Pakistan Chapter


2016 39

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 Copyright PMI Lahore, Pakistan Chapter


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Project Management 5 Process Groups

1 2 3 4 5

Monitoring
Initiating Planning Executing & control
Closing

Processes performed to Processes performed to


define and get complete the work defined in Processes performed to finalize
authorization of a new the project management plan all activities and formally close
project. (8 processes) the project or phase
(2 processes) (2 Processes)

Processes required to establish Processes required to track,


the scope of the project, and review, and update the
define the course of action progress of the project
required to attain the objectives
(11 processes)
47
(24 processes) Processes

PMBOK 49 Copyright PMI Lahore, Pakistan Chapter


41
2016

Monitoring &
Initiating Planning Executing Closing
Control

Processes are not discreet, they overlap

30%

24%

8%
13% 25%

Time

PMBOK 51 Copyright PMI Lahore, Pakistan Chapter


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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47 Processes
Management Team
Manage Project
PMBOK 61
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses
2 Plan Risk Response 24 8 11 2
Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright PMI Lahore, Pakistan Chapter
Manage Stakeholders Control Stakeholders
13
Management
Identity Stakeholders 43
Plan Stakeholders Management
2016 Engagement Engagement

Process Groups
Knowledge Areas
Initiating While ManagingExecuting
Planning Projects Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project
Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses
2 Plan Risk Response
24 8 11 2
Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright PMI Lahore, Pakistan Chapter
Manage Stakeholders Control Stakeholders
13
Management
Identity Stakeholders 44
Plan Stakeholders Management
2016 Engagement Engagement

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Process Groups
Knowledge Areas
Initiating Planning STUDY Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan 6
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope 6
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule 7
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs 4
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality 3
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47 4
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication 3
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses 6
11 Control Risks
Management
Conduct Quantitative Risk Analyses
Plan Risk Response
Procurement Close 4
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders 4
Management 45
2016 Engagement Engagement

PMI-Lahore, Pakistan Chapter


PMP Certification Course

Project Integration Management


Chapter 4

Copyright PMI Lahore, Pakistan Chapter


2016 PMI Lahore Chapter 2013 - All rights reserved.

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Scope Collect Requirements
Validate Scope 6
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 47
2016 Engagement Engagement

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 Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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 49

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.

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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)

Copyright PMI Lahore, Pakistan Chapter


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4.1 Develop Project Charter

Inputs Tools & Outputs


Techniques
5 2 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.

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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

Copyright PMI Lahore, Pakistan Chapter


2016 55

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
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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

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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

Copyright PMI Lahore, Pakistan Chapter


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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.

Copyright PMI Lahore, Pakistan Chapter


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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

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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 Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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 63

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 & Outputs


Techniques
4 2 1

Copyright PMI Lahore, Pakistan Chapter


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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. Scope Scope Mngt plan & Requirement Mngt Plans
2. Time Schedule Mngt plan
3. Cost Cost Mngt plan
4. Quality Quality Mngt plan & Process Improvement plan
5. HR HR Mngt plan
6. Communication Communication Mngt plan
7. Risk Risk Mngt plan
8. Procurement Procurement Mngt plan
9. Stakeholder Stakeholder engagement Mngt plan

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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)

Copyright PMI Lahore, Pakistan Chapter


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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.

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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

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Develop Project Management Plan


Output
Components of Project Management Plan
9 Management plans 4 other plans
1. Scope Management Plan 1. Requirement Mngt. plan
2. Schedule Management Plan 2. Process improvement plan
3. Cost Management Plan
3. Change control plan
4. Quality Management Plan
5. HR Management Plan 4. Configuration Mngt. plans
6. Communication Management Plan
3 base-lines
7. Risk Management Plan
8. Procurement Management Plan 1. Scope base line
9. Stakeholder Management Plan 2. Schedule base line
3. Cost base line
See PMBOK 78 for details
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4.0 Project Integration Management


Project Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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
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2016 73

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 & Outputs


Techniques
4 2 5

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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 .

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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 non-
conforming 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

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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

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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

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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 Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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
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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.

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4.4 Monitor and Control Project Work

Inputs Tools & Outputs


Techniques
7 4 4

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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]

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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

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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

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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

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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.
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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.

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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 Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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 97

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.

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4.4 Perform Integrated Change Control

Inputs Tools & Outputs


Techniques
5 3 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.

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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

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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 follow-
up

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
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2016 105

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
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2016 106

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4.0 Project Integration Management


Project Develop Project Charter
Integration 4.1
Management
Develop Project Management Plan
4.0 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
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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 109

4.6 Close Project or Phase

Inputs Tools & Outputs


Techniques
3 3 2

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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 111

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.

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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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


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

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables
Completed deliverable then goes to the Control
Quality process (8.3) to see if it has been made as per
Quality Checks Verify Scope Acceptance
the quality requirements
Verified Accepted Transitioned
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


After being verified that the
Verified Accepted
deliverable is as per
Deliverables Deliverables Deliverables
specification it is sent to
Validate Scope process (5.5)
Quality Checks Verify Scope Acceptance
to verify that it has been
made as described in the
Verified Accepted Transitioned
scope
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase
If the deliverable
Input is verified Input Input
that it is as per the scope,
then it is passed on to Close Verified Accepted
Deliverables Deliverables Deliverables
project or phase process
(4.6) as an input where is
Quality Checks Verify Scope Acceptance
goes through the
acceptance process and
goes outVerified
as an output as Accepted Transitioned
Deliverables
transitioned deliverable Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables

Quality Checks Verify Scope Acceptance

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output Output
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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope Deliverables Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 120
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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

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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
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope 6
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 123
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5.0 Project Scope Management


Project Scope Plan Scope Management
Management 5.1
5.0
Collect Requirements
5.2
Define Scope
5.3
Create WBS
5.4
Validate Scope
5.5
Control Scope
5.6
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Product Scope Vs. Project Scope


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

Project scope describes the


work required to deliver
the product, service, or result.

5.1 Plan Scope Management


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of creating a Scope Management


Plan that documents how the scope will be
defined, validated and controlled

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5.1 Plan Scope Management

Inputs Tools & Outputs


Techniques
4 2 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

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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

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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.

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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 Plan Scope Management


Scope 5.1
Management
5.0 Collect Requirements
5.2

Define Scope
5.3

Create WBS
5.4

Validate Scope
5.5

Control Scope
5.6
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Monitoring
Initiating Planning Executing & Closing
Controlling

The process of determining, documenting and


managing stakeholders needs and requirements
to meet the project objectives.

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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) Business Requirements
b) Stakeholder Requirements
c) Functional requirements
d) Project Requirements
e) 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 & Outputs


Techniques
5 11 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

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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.
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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

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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
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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
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PMBOK 119
151

Project Plan Scope Management


Scope 5.1
Management
5.0 Collect Requirements
5.2

Define Scope
5.3

Create WBS
5.4

Validate Scope
5.5

Control Scope
5.6
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Define Scope
Monitoring
Initiating Planning Executing & Closing
Controlling

The process of developing a detailed description


of the project and product

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Define Scope

Inputs Tools & Outputs


Techniques
4 4 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

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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.

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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 projects
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
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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 Plan Scope Management


Scope 5.1
Management
5.0 Collect Requirements
5.2

Define Scope
5.3

Create WBS
5.4

Validate Scope
5.5

Control Scope
5.6
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Create WBS
Monitoring
Initiating Planning Executing & Closing
Controlling

The process of subdividing the project deliverables and


project work into smaller, more manageable
components.

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Create WBS

Inputs Tools & Outputs


Techniques
5 2 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

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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. Identifying and analyzing the deliverables and related work
2. Structuring and organizing the WBS
3. Decomposing the upper WBS levels into lower level detailed components
4. Developing and Assigning identification codes to the WBS components
5. Verifying that the degree of decomposition of the work is necessary and
sufficient

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Create WBS
Tools and Techniques

Project

Control Product 2 Product 3 Product 4


Product 1
Accounts

Planning 1.1 1.2 1.3 3.1 3.2 3.3 4.1 4.2


packages
3.1.1 3.1.2 3.1.3 3.1.4 4.2.1 4.2.2 4.2.3

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


See figures on
PMBOK page 129-
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167
2016

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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

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WBS dictionary
WBS dictionary
An important companion document to the WBSit 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 whos going to do it?
Mini-milestones
Contractual information
Quality Requirements
Technical Specifications
Charge codes or other costing information
Associated Activities or Tasks

Project Plan Scope Management


Scope 5.1
Management
5.0 Collect Requirements
5.2

Define Scope
5.3

Create WBS
5.4
Validate Scope
5.5

Control Scope
5.6
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5.5 Validate Scope


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of formalizing acceptance of the


completed project deliverables

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5.5 Validate Scope

Inputs Tools & Outputs


Techniques
5 2 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


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

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables
Completed deliverable then goes to the Control
Quality process (8.3) to see if it has been made as per
Quality Checks Verify Scope Acceptance
the quality requirements
Verified Accepted Transitioned
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


After being verified that the
Verified Accepted
deliverable is as per
Deliverables Deliverables Deliverables
specification it is sent to
Validate Scope process (5.5)
Quality Checks Verify Scope Acceptance
to verify that it has been
made as described in the
Verified Accepted Transitioned
scope
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase
If the deliverable
Input is verified Input Input
that it is as per the scope,
then it is passed on to Close Verified Accepted
Deliverables Deliverables Deliverables
project or phase process
(4.6) as an input where is
Quality Checks Verify Scope Acceptance
goes through the
acceptance process and
goes outVerified
as an output as Accepted Transitioned
Deliverables
transitioned deliverable Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables

Quality Checks Verify Scope Acceptance

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output Output
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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
5
Scope Collect Requirements DELIVERABLE
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13
Management
Identity Stakeholders Plan Stakeholders
181
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5.5 Validate Scope

Validate Scope
Inputs
1. Project Management Plan
2. Requirements Documentation
3. Requirements Traceability Matrix
4. 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.

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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
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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 projects
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 non-
acceptance. 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)
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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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Project Plan Scope Management


Scope 5.1
Management
5.0 Collect Requirements
5.2

Define Scope
5.3

Create WBS
5.4
Validate Scope
5.5

Control Scope
5.6
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5.6 Control Scope

Inputs Tools & Outputs


Techniques
5 1 5

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5.6 Control Scope

Control Scope
Inputs
1. Project management plan
Project management plan has the following information which is
used in Control Scope
Scope Baseline
Scope Management Plan
Change Management Plan
Configuration Management Plan
Requirements Management Plan
2. Requirements documentation
3. Requirements traceability matrix
4. Work Performance Data
5. Organizational Process Assets
Policies for controlling scope, procedures, and guidelines, reports
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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
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Control Scope
Outputs
1. Work performance information
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
2. 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

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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

Copyright PMI Lahore, Pakistan Chapter


2016 PMI Lahore Chapter 2013 - All rights reserved.

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6
Management Estimate Activity Resources
Control Schedule 7
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 193
2016 Engagement Engagement

Project Time Management


Project Time Plan Schedule Management
Management 6.1

Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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Plan Schedule Management


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of establishing the policies, procedures and


documentation for planning, developing, managing,
executing, and controlling project schedule.

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Plan Schedule Management

Inputs Tools & Outputs


Techniques
4 3 1

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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.

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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

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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

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Project Time Management

Project Time Plan Schedule Management


Management 6.1

Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7
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6.2 Define Activities

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of identifying and documenting the specific


actions to be performed to produce the project
deliverables.

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6.2 Define Activities

Inputs Tools & Outputs


Techniques
4 3 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

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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

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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 projects 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.

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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.

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Example of Activity List


Project Name:
Prepared By: Activity Attributes
Date:
Project Phase:
Control Account:
Start End
Planning Package: Duration Resource
Date Date
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

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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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Project Time Management


Project Time Plan Schedule Management
Management 6.1
Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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6.3 Sequence Activities

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of identifying and documenting


relationships among the project activities.
This determines which activity will come first and which
activity will come later.

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6.3 Sequence Activities

Inputs Tools & Outputs


Techniques
7 3 2

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6.3 Sequence Activities

Sequence Activities
Inputs

1. Schedule Management Plan from 6.1


2. Activity list from 6.2
3. Activity attributes from 6.2
4. Milestone list from 6.2
5. Project scope statement from 5.3
6. Enterprise environmental factors (EEFs)
7. Organization process assets (OPAs)

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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 Activity B Activity C

Install and Install and


Install Server configure operating configure security
system 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. Finish to start
2. Finish to finish
3. Start to Start
4. Start to finish

See next page

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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 and
Install Server 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 cant finish editing a report unless you complete writing the
report.

Activity A Activity B

Writing a report Editing the report

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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 Leveling of chips


floor 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 Operator on night


morning shift shift

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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.
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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 cant start a a pump until it is connected to
electric power by team B

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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

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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
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227

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 Start
B Start
C A, B
D C
E C
F D
End F, E

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Solution

A D F

Start C End

B E

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Project Time Management


Project Time Plan Schedule Management
Management 6.1
Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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6.4 Estimate Activity Resources


Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
8 5 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).

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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 in-
house 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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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.

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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

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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.

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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

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Project Time Management


Project Time Plan Schedule Management
Management 6.1
Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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6.5 Estimate Activity Durations


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of approximating the number of


work periods needed to complete individual
activities with estimated resources.

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Inputs Tools & Outputs


Techniques
10 6 2

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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.

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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
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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.

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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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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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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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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

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Project Time Management


Project Time Plan Schedule Management
Management 6.1
Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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6.6 Develop Schedule


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of analyzing activity sequences, resource


requirements, durations, and schedule constraints to
create the Project Schedule Model

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6.6 Develop Schedule

Inputs Tools & Outputs


Techniques
13 8 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
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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. Schedule network analysis
2. Critical path method
3. Critical chain method
4. Resource Optimization Techniques
5. Modeling Techniques
6. Leads and Lags
7. Schedule compression
8. Scheduling tool

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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

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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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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 - 0
A Start 4
B Start 6
C A, B 7
D C 5
E C 5
F D 7
End F, E 0

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Solution

F=2 F=0 F=0


1 4 14 18 19 25
4 5 7
A D F
3 6 F=0
0 7 13 14 18 19 25 25
7
Start C Finish
0 F=0 7 13 F=7 25
1 6 14 18
6 5
B E
1 6 21 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
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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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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.

See Figure on
PMBOK page 179

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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.

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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.

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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.
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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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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.

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Develop Schedule
Output
2. Project schedule

See Figure on
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Milestone
schedule

Summary
schedule

Detailed
schedule

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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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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 Plan Schedule Management
Management 6.1
Define Activities
6.0
6.2

Sequence Activities
6.3

Estimate Activity Resources


6.4

Estimate Activity Durations


6.5

Develop Schedule
6.6

Control Schedule
6.7

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6.7 Control Schedule

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of monitoring the status of the project to


update project progress and manage changes to the
schedule baseline

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6.7 Control Schedule

Inputs Tools & Outputs


Techniques
6 7 6

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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.

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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.
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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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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.

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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.
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PMI Lahore, Pakistan Chapter


PMP Certification Course

Project Cost Management


Chapter 7

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7
Management
Estimate Costs Control Costs 4
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 288
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Cost Management
Project Cost Plan Cost Management
Management
7.0 7.1
Estimate Costs
7.2
Determine Budget
7.3
Control Costs
7.4

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7.1 Plan Cost Management

Monitoring
Initiating Planning Executing & Closing
Controlling

The process that establishes the policies, procedures


and documentation for planning, managing, expending
and controlling project costs

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7.1 Plan Cost Management

Inputs Tools & Outputs


Techniques
4 3 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

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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.
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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.

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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 organizations
accounting system

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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

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Project Cost Plan Cost Management


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

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of developing an approximation of the


monetary resources needed to complete project
activities

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7.2 Estimate Costs

Inputs Tools & Outputs


Techniques
7 10 3

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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

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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

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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.

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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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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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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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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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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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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.

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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 Plan Cost Management


Management
7.0 7.1
Estimate Costs
7.2
Determine Budget
7.3
Control Costs
7.4

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Determine Budget

Monitoring
Initiating Planning Executing & Closing
Controlling

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.

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Inputs Tools & Outputs


Techniques
9 5 3

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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

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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

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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.

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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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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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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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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.

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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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PMBOK 214
323

Project Cost Plan Cost Management


Management
7.0 7.1
Estimate Costs
7.2
Determine Budget
7.3
Control Costs
7.4

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Control Costs

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of monitoring the status of the project to


update the project budget and managing changes to
the cost baseline.

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Control Costs

Inputs Tools & Outputs


Techniques
4 6 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

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Control Costs
Tools and Techniques

1. Earned value management


2. Forecasting
3. To-complete performance index
4. Performance reviews
5. Project management software
6. 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)

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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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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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Tools and Techniques

III. What is Actual Cost (AC)


Cost incurred in carrying out the work of an activity.

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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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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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Tools and Techniques
Scheduled variance
SV = EV PV
BAC = 1600
SV = 800 1000 = - 200

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

PV = 1000

EV = 800

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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.

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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 PV = 1000
= 800/1200 = .66
EV = 800

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

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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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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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Tools and Techniques
Scheduled variance
SV = EV PV
SV = 800 1000 = - 200
BAC = 1600 EAC.1= 2000
Cost Variance
CV = EV - AC
CV = 800 -1200 = - 400
AC = 1200
Schedule Performance Id
SPI = EV/PV
SV = 800/1000 = .80

Cost Performance Index


CPI = EV/AC PV = 1000
= 800/1200 = .66
EV = 800

EAC at budget rate


EAC.1 = AC + BAC EV
= 1200+1600-800=2000

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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
Tools and Techniques
SV = 800 1000 = - 200 EAC.2 = 2424
BAC = 1600 EAC.1= 2000
Cost Variance
CV = EV - AC
CV = 800 -1200 = - 400
AC = 1200
Schedule Performance Id
SPI = EV/PV
SV = 800/1000 = .80

Cost Performance Index


CPI = EV/AC PV = 1000
= 800/1200 = .66
EV = 800

EAC.1 at budget rate EAC.2 at present CPI


EAC = AC + BAC EV EAC = BAC / CPI
= 1200+1600-800=2000 = 1600 / .66 = 2424

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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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Scheduled variance
EAC.3 = 2715
SV = EV PV
SV = 800 1000 = - 200 EAC.2 = 2424
BAC = 1600 EAC.1 = 2000
Cost Variance
CV = EV - AC
CV = 800 -1200 = - 400
AC = 1200
Schedule Performance Id
SPI = EV/PV
SV = 800/1000 = .80

Cost Performance Index


CPI = EV/AC PV = 1000
= 800/1200 = .66
EV = 800

EAC.1 at budget rate EAC.2 at present CPI EAC.3 considering CPI & SPI
EAC = AC + BAC EV EAC = BAC / CPI EAC = AC + [(BAC EV) / (SPI x CPI)]
= 1200+1600-800=2000 = 1600 / .66 = 2424 = 1200 +[(1600-800) / (.8x.66)]
= 2715

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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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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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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)

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2.0

1.0

.52

.66

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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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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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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. MS-
Projects, 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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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

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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

See Table on
PMBOK page 224
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PMI Lahore Pakistan Chapter


PMP Certification Class

Project Quality Management


Chapter 8

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
8
Quality
Plan Quality Management
Perform Quality
Control Quality 3
Management Assurance
Acquire Project
Management Team
9 HR Management Plan HR Management
Develop Project 47
Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 357
2016 Engagement Engagement

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 Plan Quality Management


Management
8.0
8.1
Perform Quality Assurance
8.2
Control Quality
8.3

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Plan Quality Management

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of identifying quality requirements and/or standards


for the project and product, and documenting how the project
will demonstrate compliance.

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8.1 Plan Quality Management

Inputs Tools & Outputs


Techniques
6 8 5

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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

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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

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Tools and Techniques

1. Cost-benefit analysis
2. Cost of quality
3. Seven basic Quality Tools
4. Benchmarking
5. Design of experiments
6. Statistical sampling
7. Additional quality planning tools
8. 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
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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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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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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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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Tools and Techniques

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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 problems 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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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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Tools and Techniques

Histogram

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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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Tools and Techniques

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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

See Figure on
PMBOK page 239
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PMBOK 239
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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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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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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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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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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.

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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.

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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
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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 Plan Quality Management


Management
8.0
8.1
Perform Quality Assurance
8.2
Control Quality
8.3

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Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
5 3 4

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Perform Quality Assurance


Inputs
1. Quality management plan
2. Process improvement plan
3. Quality metrics
4. 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

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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

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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

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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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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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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
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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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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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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

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Project Quality Plan Quality Management


Management
8.0
8.1
Perform Quality Assurance
8.2
Control Quality
8.3

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8.3 Control Quality

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of monitoring and recording results of executing the


quality activities to assess performance and recommend
necessary changes.

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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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


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

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables
Completed deliverable then goes to the Control
Quality process (8.3) to see if it has been made as per
Quality Checks Verify Scope Acceptance
the quality requirements
Verified Accepted Transitioned
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


After being verified that the
Verified Accepted
deliverable is as per
Deliverables Deliverables Deliverables
specification it is sent to
Validate Scope process (5.5)
Quality Checks Verify Scope Acceptance
to verify that it has been
made as described in the
Verified Accepted Transitioned
scope
Deliverables Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase
If the deliverable
Input is verified Input Input
that it is as per the scope,
then it is passed on to Close Verified Accepted
Deliverables Deliverables Deliverables
project or phase process
(4.6) as an input where is
Quality Checks Verify Scope Acceptance
goes through the
acceptance process and
goes outVerified
as an output as Accepted Transitioned
Deliverables
transitioned deliveable Deliverables Deliverables
Output Output 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
4.6 Close project
8.3 Control Quality 5.5 Validate Scope or phase

Input Input Input


Verified Accepted
Deliverables Deliverables Deliverables

Quality Checks Verify Scope Acceptance

Verified Accepted Transitioned


Deliverables Deliverables Deliverables
Output Output Output
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8.3 Control Quality

Inputs Tools & Outputs


Techniques
8 4 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

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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
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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) Cause and Effect Diagram
b) Flowcharts
c) Checksheets
d) Pareto Diagrams
e) Histograms
f) Control Charts
g) Scatter Diagrams

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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.

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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
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PMI Lahore Pakistan Chapter


PMP Certification Course

Project Human Resource


Management
Chapter 9
PMBOK 255 Copyright PMI Lahore, Pakistan Chapter
2016 PMI Lahore Chapter 2013 - All rights reserved.

Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
Develop Project 47
9 HR Management Plan HR Management 4
Management Team
Manage Project
Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 424
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Project Human Resource Management

Project
Human
Plan Human Resource Management
Resource 9.1
Management
9.0 Acquire Project Team
9.2

Develop Project Team


9.3

Manage Project Team


9.4

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Plan Human Resource Management

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of identifying and documenting project


roles, responsibilities, and required skills, reporting
relationships, and creating a staffing management plan.

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9.1 Plan HR Management

Inputs Tools & Outputs


Techniques
4 5 1

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9.1 Develop Human Resource Plan

Plan Human Resource Management


Inputs

1. Project Management Plan


2. Activity resource requirements
3. Enterprise environmental factors
4. 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
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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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https://www.edrawsoft.com/project-organizational-chart.php
431

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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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.

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

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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.
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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
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Project Human Resource Management

Project Human Develop Human Resource Plan


Resource
Management 9.1
9.0
Acquire Project Team
9.2

Develop Project Team


9.3

Manage Project Team


9.4

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9.2 Acquire Project Team


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of confirming human resource availability


and obtaining the team necessary to complete project
assignments.

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Acquire Project Team

Inputs Tools & Outputs


Techniques
3 5 3

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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.

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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
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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.

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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
Develop Human Resource Plan
Resource 9.1
Management
9.0 Acquire Project Team
9.2

Develop Project Team


9.3

Manage Project Team


9.4

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9.3 Develop Project Team

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of improving the competencies, team interaction,


and the overall team environment to enhance project
performance.

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9.3 Develop Project Team

Inputs Tools & Outputs


Techniques
3 7 2

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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.

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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]

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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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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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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.

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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.

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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)

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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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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 Managers 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)

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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
Develop Human Resource Plan
Resource 9.1
Management
9.0 Acquire Project Team
9.2

Develop Project Team


9.3

Manage Project Team


9.4

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9.4 Manage Project Team


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of tracking team member performance,


providing feedback, resolving issues, and managing
changes to optimize project performance.

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9.4 Manage Project Team

Inputs Tools & Outputs


Techniques
6 4 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.

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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 companys 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.

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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. .

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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

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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

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
Develop Project 47
9 HR Management Plan HR Management
Management Team
Manage Project
Processes
Management Team
Communication
10
Management
Plan Communication Management Manage Communication Control Communication 3
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses

2 Plan Risk Response 24 8 11 2


Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
13
PMBOK 61
Stakeholders
Identity Stakeholders Copyright Management
Plan Stakeholders
Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
Management 485
2016 Engagement Engagement

Project Communications Management

Project Plan Communications


Management
Communications
10.1
Management
Manage Communications
10.0
10.2

Control Communications
10.3

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Plan Communications Management

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of developing an appropriate approach and


plan for project communications based on
stakeholders information needs and requirements, and
available organizational assets.

PMBOK 289 Copyright PMI Lahore, Pakistan Chapter


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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 & Outputs


Techniques
4 5 2

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10.1 Plan Communications Management

Plan Communications Management


Inputs
1. Project Management Plan
2. Stakeholder register
3. Enterprise environmental factors
4. 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.

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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.

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Number of Channels

1 Channel

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Number of Channels

3 Channels

B C

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Number of Channels

A D

6 Channels

B C

N is the number of stakeholders


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2016 495

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.

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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.

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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 Copyright PMI Lahore, Pakistan Chapter


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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)

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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.

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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

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PMBOK 294
503

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.

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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 Copyright PMI Lahore, Pakistan Chapter


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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

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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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2016 507

Project Communications Management

Project Plan Communications


Management
Communications
10.1
Management
Manage Communications
10.0
10.2

Control Communications
10.3

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10.2 Manage Communications


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of creating, collecting, distributing, storing,


retrieving and the ultimate disposition of project
information in accordance with the communications
management plan.

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10.2 Manage Communications

Inputs Tools & Outputs


Techniques
4 5 4

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10.2 Manage Communications

Manage Communications
Inputs
1. Communications Management Plan
2. Work Performance Reports
3. Enterprise Environmental Factors
4. Organizational Process Assets

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2016 511

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)

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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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2016 513

Manage Communications
Outputs
1. Project Communications
2. Project Management Plan Updates
3. Project Document Updates
4. Organizational Process Assets Updates

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Project Communications Management

Project Plan Communications


Management
Communications
10.1
Management
Manage Communications
10.0
10.2

Control Communications
10.3

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10.3 Control Communications


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of monitoring and controlling communications


throughout the entire project life cycle to ensure the information
needs of the project stakeholders are met.

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10.3 Control Communications

Inputs Tools & Outputs


Techniques
5 3 5

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2016 517

10.3 Control Communications

Control Communications
Inputs
1. Project management plan
2. Project Communications
3. Issue log
4. Work performance data
5. 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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2016 519

Control Communications
Outputs
1. Work Performance Information
2. Change Requests
3. Project Management Plan Updates
4. Project Document Updates
5. 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

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2016 PMI Lahore Chapter 2013 - All rights reserved.

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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
Page Develop Project 47
9 HR Management Plan HR Management
61 Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11
Management
Control Risks 6
Conduct Quantitative Risk Analyses
Plan Risk Response
Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders 2 24 Manage
8
Stakeholders
11
Control Stakeholders
2
13 Identity Stakeholders Copyright Management
Plan Stakeholders PMI Lahore, Pakistan Chapter
Management 523
2016 Engagement Engagement

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.

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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
11.1 Plan Risk Management
11.0
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


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11.1 Plan Risk Management


Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
5 3 1

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11.1 Plan Risk Management

Plan Risk Management


Inputs
1. Project management plan
2. Project Charter
3. Stakeholder Register
4. Enterprise environmental factors
5. Organizational process assets

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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

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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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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.

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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
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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
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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 539
Management Institute, Inc. 2013, Page 318

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
11.1 Plan Risk Management
11.0
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

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of determining which risks may affect the


project and documenting their characteristics

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11.2 Identify Risks

Inputs Tools & Outputs


Techniques
13 7 1

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2016 543

11.2 Identify Risks

Identify Risks
Inputs
1. Risk Management Plan
2. Cost Management Plan
3. Schedule Management Plan
4. Quality Management Plan
5. Human Resource Management Plan
6. Scope Baseline
7. Activity Cost Estimates
8. Activity Duration Estimates
9. Stakeholder Register
10. Project Documents
11. Procurement Documents
12. Enterprise Environmental Factors
13. Organizational Process Assets

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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 Copyright PMI Lahore, Pakistan Chapter


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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. .
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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 Copyright PMI Lahore, Pakistan Chapter


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Identify Risks
Tools and Techniques
4. Assumption analysis
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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2016 549

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
profit.
553 Based on PMBOK 4th Ed.

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

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Internal Factors

STRENGTHS WEAKNESSES
What does the Company do What could be improved?
well?
What is being done badly?
What is the good Track
What should be avoided?
Record?
Where does the organization
compete well?

Positive Negative
OPPORTUNITIES THREATS
What will happen in the next What sort of obstacles the
5 years? business faces?
What opportunities are What sort of competition the
available? organization faces?

External Factors
Copyright PMI Lahore, Pakistan Chapter
2016 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

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Project Risk Management


Project Risk
Management
11.1 Plan Risk Management
11.0
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

Monitoring
Initiating Planning Executing & Closing
Controlling

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

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11.3 Perform Qualitative Risk Analysis

Inputs Tools & Outputs


Techniques
5 6 1

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11.3 Preform Qualitative Risk Analysis

Perform Qualitative Risk Analysis


Inputs

1. Risk management plan - describes how risks will be handled


2. Scope Baseline describes the project scope
3. Risk register has the list of all the identified risks
4. Enterprise Environmental factors factors affecting the project
5. Organizational process assets formats, lessons learnt, previous
experience

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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 Copyright PMI Lahore, Pakistan Chapter
2016 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


See figure on
PMBOK 331

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11.3
Perform
Preform
Quantitative
QualitativeRisk
Risk
Analysis
Analysis

Tools HIGH
& Techniques HIGH
LOW MEDIUM 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 Copyright PMI Lahore, Pakistan Chapter


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Project Risk Management


Project Risk
Management
11.1 Plan Risk Management
11.0
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


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11.4 Perform Quantitative Risk Analysis

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of numerically analyzing the effect of


identified risks on overall project objectives.

PMBOK 333 Copyright PMI Lahore, Pakistan Chapter


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11.3 Perform Quantitative Analyses

Inputs Tools & Outputs


Techniques
6 3 1

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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

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11.4 Perform Quantitative Risk Analysis


Tools and Techniques
1. Data gathering and representation techniques

a) Interviewing
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

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11.4
Perform
Perform
Quantitative
Quantitative
Risk
Risk
Analysis
Analysis

Tools & Techniques Three point estimate


O+4M+P
EXAMPLE OF -----------------
THREE POINT 6
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

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Tools & Techniques


1. Data gathering and representation techniques
b) Probability distributions
Type Description Examples Used in which
Tool/Technique
Continuous These represent Durations of Modeling And
probability the uncertainty in schedule Simulations
distributions values activities
Cost of project
components
Discrete These represent Outcome of a EMV (Decision
distributions uncertain events test Tree)
A possible
scenario in a
decision tree

575

Three point estimate


EXAMPLE OF
Tools & Techniques O+4M+P
THREE POINT -----------------
ESTIMATION 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%
$68 M
$31 M $41M $50M $63M

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

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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 Copyright PMI Lahore, Pakistan Chapter
2016 579

Tornado Diagram
Positive Negative
impact 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 Copyright PMI Lahore, Pakistan Chapter


2016 581

Decision Tree Analyses


Decision: Build new plant or to upgrade the existing plant?

58
Copyright PMI Lahore, Pakistan Chapter 2
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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

58
Copyright PMI Lahore, Pakistan Chapter 3
2016

Decision Tree Analyses


Decision to be made is to invest $120M to build new plant or to upgrade the existing
plant by investing $50M

58
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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

58
Copyright PMI Lahore, Pakistan Chapter 5
2016

Decision Tree Analyses


Decision to be made is to invest $120M to build new plant or to upgrade the existing
plant by investing $50M

58
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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

58
Copyright PMI Lahore, Pakistan Chapter 7
2016 (PMBOK Guide)
Project Management Institute, A Guide to Project Management Body of Knowledge,
Fifth Edition, Project Management Institute, Inc. 2013, Page 339. Fig. 11-16

Risk Contingency Calculation for negative and


positive risks
Expected Expected
Probability Cost Schedule Cost Schedule
Risk Event (%) ($) (weeks) ($) (weeks) Action
10 additional requirements 80% $45,000 10 $36,000 8 Conduct requirements review
1 month delay getting key person 40% $15,000 1.5 $6,000 0.6 Minimize delay with senior management
Team productivty is 10% higher 60% -$30,000 -5 -$18,000 -3 Optimize team interfaces
Additional key person is available 60% -$25,000 -3 -$15,000 -1.8 Maximize opportunitiy with management
Purchased product doesn't work 20% $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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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 Copyright PMI Lahore, Pakistan Chapter
2016 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
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Three point estimate


EXAMPLE OF
Tools & Techniques O+4M+P
THREE POINT -----------------
ESTIMATION 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.

PMBOK 336 Copyright PMI Lahore, Pakistan Chapter


2016 591

Result from Triangular


Distribution simulation

75%

12%
$68 M
$31 M $41M $50M $63M
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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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 Copyright PMI Lahore, Pakistan Chapter


2016 593

Perform Quantitative Risk Analysis


Outputs

1. Project Document updates


Risk register that was started in section 11.2 will get an update.
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
11.1 Plan Risk Management
11.0
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

Monitoring
Initiating Planning Executing & Closing
Controlling

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.

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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 & Outputs


Techniques
2 4 2

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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 Copyright PMI Lahore, Pakistan Chapter


2016 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.

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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.

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Plan Risk Responses


Tools and Techniques
1. Strategies for negative risks or threats
ATMA
d) Accept
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

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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

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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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2016 605

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.

Copyright PMI Lahore, Pakistan Chapter


2016 607

Plan Risk Responses


Outputs
1. Project management plan updates
Following plans will be updated to reflect changes

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
11.1 Plan Risk Management
11.0
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


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11.6 Control Risks

Monitoring
Initiating Planning Executing & Closing
Controlling

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 Tools & Outputs


Techniques
4 6 5

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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 Copyright PMI Lahore, Pakistan Chapter


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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.

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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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2016 615

Control Risks
Tools and Techniques
4. Technical performance measurement
Technical performance measurement compares technical
accomplishments during project execution to the project management
plans 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 projects scope
Exposing the degree of technical risk faced by the project
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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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2016 617

Control Risks
Outputs
1. Work performance information
2. Change requests
3. Project management plan updates
4. Project document updates
5. 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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310
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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
Page Develop Project 47
9 HR Management Plan HR Management
61 Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses 4
Plan Risk Response
Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Copyright Management Manage
PMI Lahore, Pakistan Stakeholders
Chapter Control Stakeholders
13 Identity Stakeholders Plan Stakeholders
Management 621
2016 Engagement Engagement

Project Procurement Management


Project Plan Procurement Management
Procurement
Management 12.1
12.0
Conduct Procurements
12.2
Control Procurements
12.3
Close Procurements
12.4

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12.1 Plan Procurement Management


Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
9 4 7

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12.1 Plan Procurement Management

Plan Procurement Management


Inputs
1. Project Management Plan
2. Requirements documentation
3. Risk register
4. Activity resource requirements
5. Project schedule
6. Activity cost estimates
7. Stakeholder Register
8. Enterprise environmental factors (EEFs)
9. Organizational process assets (OPAs)

Copyright PMI Lahore, Pakistan Chapter


2016 625

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) Firm Fixed price Contracts FFP
b) Firm Fixed price plus Incentive Fee Contract FPIP
c) Firm Fixed price with Economic price adjustment FP-EPA

II. Cost reimbursable


a) Cost plus Fixed Fee Contract- CPFF
b) Cost plus incentive fee contracts CPIF
c) Cost plus Award Fee contract CPAF

III. Time and Material


PMBOK 362
Copyright PMI Lahore, Pakistan Chapter
2016 626

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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.

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12.1 Plan Procurement Management

Risk associated with Contracts


LOW Fixed Price HIGH
1. Firm Fixed Price (FFP)
2. Fixed Price Incentive Fee (FPIF)
3. Fixed Price with Economic Price adjustment
Contracts (FP-EPA)
Seller Risk
Buyer Risk

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

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Plan Procurement Management


Inputs

Fixed Price Contract


Estimate Actual Actual
Scenario #1 Scenario #2
Cost of work to $100,000 $80,000 $110,000
be done
Total Price of $110,000 $110,000 $110,000
the contract

Profit $10,000 $30,000 -0-

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Plan Procurement Management


Inputs
Cost plus Fixed Fee (CPFF)
Estimated Actual Actual
Scenario #1 Scenario #2
Cost of work to $100,000 $80,000 $110,000
be done
Fixed Fee to be $10,000 $10,000 $10,000
paid to seller
Total price of $110,000 $90,000 $120,000
contact
Profit $10,000 $10,000 $10,000

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Cost plus Incentive Fee (CPIF)


Estimated Actual Actual
Scenario #1 Scenario #2
Cost of work $100,000 $80,000 $110,000

Target Profit $10,000 $10,000 $10,000

Sharing formula 85% buyer 15% x 20,000 = 15% x -10,000 =


15% seller $3,000 -$1,500
Ceiling Price of $115,000 $115,000 $115,000
Contract
Total Price of $110,000 $93,000 $115,000
contract
Profit $10,000 $13,000 $5,000

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2016 631

Plan Procurement Management


Inputs
Cost plus Incentive Fee (CPIF)
Estimated Actual Actual
Scenario #1 Scenario #2
Cost of work $100,000 $80,000 $110,000

Target Profit $10,000 $10,000 $10,000

Sharing formula 85/15 15% x 20,000 = 15% x -10,000 =


$3,000 -$1,500
Total Price of $110,000 $93,000 $118,500
contract
Profit $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
Copyright PMI Lahore, Pakistan Chapter
2016 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:
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

PMBOK 366
Copyright PMI Lahore, Pakistan Chapter
2016 635

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 sellers initial response

PMBOK 368
Copyright PMI Lahore, Pakistan Chapter
2016 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 638

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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 Plan Procurement Management
Procurement
Management 12.1
12.0
Conduct Procurements
12.2
Control Procurements
12.3
Close Procurements
12.4

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2016 640

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12.2 Conduct Procurements

Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
8 7 6

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12.2 Conduct Procurements


Conduct Procurements
Inputs
1. Project management plan
2. Procurement documents
3. Source selection criteria
4. Seller proposals
5. Project documents
6. Make-or-buy decisions
7. Procurement statement of work
8. Organizational process assets

Copyright PMI Lahore, Pakistan Chapter


2016 643

Conduct Procurements
Tools and Techniques
1. Bidder conferences
Bidders 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
Copyright PMI Lahore, Pakistan Chapter
2016 644

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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.

Copyright PMI Lahore, Pakistan Chapter


2016 647

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
Copyright PMI Lahore, Pakistan Chapter
2016 648

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324
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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

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2016 651

Project Procurement Management

Project Plan Procurement Management


Procurement
Management 12.1
12.0
Conduct Procurements
12.2
Control Procurements
12.3
Close Procurements
12.4

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12.3 Control Procurements

Monitoring
Initiating Planning Executing & Closing
Controlling

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 & Outputs


Techniques
6 7 5

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12.3 Control Procurements

Control Procurements
Inputs
1. Project management plan
2. Procurement documents
3. Agreements
4. Approved change requests
5. Work Performance reports
6. 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
sellers 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
Copyright PMI Lahore, Pakistan Chapter
2016 656

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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 sellers
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.

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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)

Copyright PMI Lahore, Pakistan Chapter


2016 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.

Copyright PMI Lahore, Pakistan Chapter


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Control Procurements
Outputs
1. Work Performance Information
2. Change requests
3. Project management plan updates
4. Project documents updates
5. Organizational process assets updates

Copyright PMI Lahore, Pakistan Chapter


2016 661

Project Procurement Management

Project Plan Procurement Management


Procurement
Management 12.1
12.0
Conduct Procurements
12.2
Control Procurements
12.3
Close Procurements
12.4

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12.4 Close Procurements

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of completing each project procurement

PMBOK 386
Copyright PMI Lahore, Pakistan Chapter
2016 663

14.4 Close Procurement

Inputs Tools & Outputs


Techniques
2 3 2

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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
Copyright PMI Lahore, Pakistan Chapter
2016 666

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333
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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
Copyright PMI Lahore, Pakistan Chapter
2016 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 PMI Lahore Chapter 2013 - All rights reserved.

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

335
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Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Control Closing
Monitoring & Control
Integration Develop Project Direct & Manage Project Project Work Close Project or
4 Develop Project Management Plan
Management Charter Work Perform Integrated Phase
Change Control
Plan Scope Management
Validate Scope
Scope Collect Requirements
5
Management Define Scope
Control Scope
Create WBS
Plan Schedule Management
Define Activities
Time Sequence Activities
6 Control Schedule
Management Estimate Activity Resources
Estimate Activity Duration
Develop Schedule
Plan Cost Management
Cost
7 Estimate Costs Control Costs
Management
Determine Budget
Quality Perform Quality
8 Plan Quality Management Control Quality
Management Assurance
Acquire Project
Management Team
Page Develop Project 47
9 HR Management Plan HR Management
61 Management Team
Manage Project Processes
Management Team
Communication
10 Plan Communication Management Manage Communication Control Communication
Management
Plan Risk Management
Identify Risks
Risk Conduct Qualitative Risk Analyses
11 Control Risks
Management
Conduct Quantitative Risk Analyses 4
Plan Risk Response
Procurement Close
12 Plan Procurement Management Conduct Procurements Control Procurements
Management Procurements
Stakeholders Manage Stakeholders Control Stakeholders
13 Identity Stakeholders Plan Stakeholders Management
Management Engagement Engagement

Project Stakeholders Management

Project
Stakeholder
Identify Stakeholders
Management 13.1
13.0
Plan Stakeholder Management
13.2
Manage Stakeholder Engagement
13.3
Control Stakeholder Engagement
13.4
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13.1 Identify Stakeholders


Monitoring
Initiating Planning Executing & Closing
Controlling

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 Copyright PMI Lahore, Pakistan Chapter


2016 673

13.1 Identify Stakeholders

Inputs Tools & Outputs


Techniques
4 3 1

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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 Copyright PMI Lahore, Pakistan Chapter


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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

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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 projects 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
Keep Manage
satisfied closely
Power

Monitor Keep
(Min.effort) Informed

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
Keep Manage
satisfied closely
Power

Monitor Keep
(Min.effort) Informed

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 projects planning or execution
impact.
High
Keep Manage
satisfied closely
Impact

Monitor Keep
(Min.effort) Informed

Low Influence High

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2016

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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.

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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

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Project
Stakeholder
Identify Stakeholders
Management 13.1
13.0
Plan Stakeholder Management
13.2
Manage Stakeholder Engagement
13.3
Control Stakeholder Engagement 13.4

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2016 687

13.2 Plan Stakeholder Management

Monitoring
Initiating Planning Executing & Closing
Controlling

The process of determining the project stakeholder


information needs and defining a communication
approach

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13.2 Plan Stakeholders Management

Inputs Tools & Outputs


Techniques
4 3 2

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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

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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:
1. Unaware the stakeholder is not aware of the project and what impact
it will have.
2. Resistant the stakeholder does not want the project to go ahead, so
he/she is resisting the project.
3. Neutral the stakeholder knows about the project but is not either
resisting or supporting it. He/she is kind of neutral.
4. Supportive - the stakeholder supports the project and wants it to go
ahead.
5. Leading the stakeholder is in the leading position of the project,
he/she is supporting it and wants the project to succeed.

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2016 693

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 Resisting Neutral Supporting Leading


S-1 PP WP WP
S-2 PP WP WP
S-3 PP WP
S-4 PP 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
See figure on
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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

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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
Identify Stakeholders
Management 13.1
13.0
Plan Stakeholder Management
13.2
Manage Stakeholder Engagement
13.3
Control Stakeholder Engagement 13.4

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2016 697

13.3 Manage Stakeholder Engagement

Monitoring
Initiating Planning Executing & Closing
Controlling

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

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13.3 Management Stakeholder Engagement

Inputs Tools & Outputs


Techniques
4 3 5

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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

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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 701

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 co-
located
Emails, chats, etc.

The objective is to keep the stakeholders engaged and supporting


the project.

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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. Issue log
2. Change requests
3. Project management plan updates
4. Project document updates
5. Organizational process assets updates

Copyright PMI Lahore, Pakistan Chapter


2016 705

Project Stakeholders Management


Project
Stakeholder
Identify Stakeholders
Management 13.1
13.0
Plan Stakeholder Management
13.2
Manage Stakeholder Engagement
13.3
Control Stakeholder Engagement
13.4
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13.4 Control Stakeholder Engagement


Monitoring
Initiating Planning Executing & Closing
Controlling

The process of monitoring overall project stakeholder


relationships and adjusting strategies and plans for
engaging stakeholders

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2016 707

13.4 Control Stakeholders Engagement

Inputs Tools & Outputs


Techniques
4 3 5

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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

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2016 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.
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Control Stakeholders Engagement


Outputs

1. Work Performance information


2. Change requests
3. Project management plan updates
4. Project document updates
5. Organizational process assets updates

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2016 711

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