PMP Preparation Class. Course Outline  Initiating a Project  Planning Project Work  Developing Project Schedules, Cost Estimates, and Budgets  Planning.

PMP Preparation Class

Course Outline  Initiating a Project  Planning Project Work  Developing Project Schedules, Cost Estimates, and Budgets  Planning Project Quality, Staffing, and Communications  Analyzing Risks and Planning Risk Response  Planning Project Procurement  Executing Project Work  Monitoring and Controlling Project Work  Monitoring and Controlling Project Schedules and Costs  Monitoring and Controlling Project Quality, Staffing, and Communications  Monitoring and Controlling Project Risk and Contracts  Closing the Project

Day One: PMP Preparation Class

Initiating a Project  Apply Project Management Processes  Create a Project Charter  Identify Stakeholders

5 Generic Product Life Cycle Project Start Phase 1Phase 2Phase 3 Project End

6 Inputs, Tools and Techniques, and Outputs InputsOutputs Tools and Techniques Project Management Processes

7 Process Group Interactions Initiating Processes Planning Processes Monitoring And Controlling Processes Executing Processes Closing Processes

8 Fundamentals of project management Unit objectives Identify the features and attributes of a project. Identify the steps and variables of the project management process.

9 Fundamentals of project management Topic A: Project Topic B: Project management process

10 Project A temporary sequence of tasks with a distinct beginning and end that is undertaken to create a unique product or service

11 Features of a project Follows an organized process Has goals based on specific quality standards Uses time, money, resources, and people that are specifically allocated to the project Has a distinct beginning and end Generally has time and cost constraints Usually completed by a team of people

12 Initiating a project A project is initiated by a person or a group who: –Recognizes a problem or an opportunity –Decides to take action The basic purpose for initiating a project is to accomplish the identified goals

13 Attributes of a project Unique Has a purpose Has a life cycle Has interdependencies

14 Project management Includes directing and coordinating various resources throughout the life of a project in order to meet or exceed stakeholder needs and expectations Achieves the objectives for: –Scope –Quality –Time –Cost

15 Project vs. program vs. portfolio A program is a logical group of related projects. Projects are managed together in order to gain benefits that are not available from managing them separately. A portfolio of projects that accomplish a strategic business objective - Delivering a strategic business objective takes into consideration multiple aspects of an organization. By this definition, a program may require changes to the organization’s structure, policies, processes, procedures, and technology.

16 Product and project management Product management: –Produces a product or a service in an ongoing manner Project management: –Is based on a temporary group of processes that produces a unique product or service

17 Project-driven organizations Foster an environment in which all work is characterized through projects In non-project-driven organizations, projects are used only to support product lines.

18 Key characteristic People – To be successful, a project requires a group of dedicated individuals to achieve the project goal.

Progressive Elaboration Progressive elaboration - what this means is that a project begins with a broad scope description and received further elaboration as a project moves forward. The project team will elaborate on the project scope as they receive the full set of deliverables and objectives to be accomplished.

20 Fundamentals of project management Topic A: Project Topic B: Project management process

21 Project management process Five steps: –Initiating –Planning –Executing –Controlling –Closing

22 Initiating Formally recognizing a new project Establishing some project goals, objectives, and major milestones

23 Planning Defining resources Developing a schedule Developing a budget

24 Executing Coordinating personnel and resources in order to achieve the project’s goal

25 Controlling Measuring progress toward project objectives Taking corrective action to bring the project back within the stated goals and objectives

26 Closing Gaining acceptance of the final product Bringing the project to an orderly conclusion Reviewing the lessons learned from the project

27 Variables Variables in the project management process: –Project scope management –Time management –Estimating costs –Quality standards –Human resource management –Communication –Risk management –Contracts and procurement –Stakeholder Management –Integration

28 Possible pitfalls Inappropriate project manager Inappropriate team members Inadequately defined tasks Unclear overall project expectations Unavailability of resources Lack of support from upper management

Project Management Environment Defining Concepts of Project Management –What is a project? “A temporary endeavor undertaken to create a unique product, service or result.” 29

Project Management Environment Defining Concepts of Project Management –What is project management? “the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.” One of the techniques used is: –Progressive elaboration 30

Copyright © 2005 Element K Content LLC. All rights reserved. PMP® Exam PREP - Framework Projects and Strategic Planning –Market Demand –Organizational Need –Customer Request –Technological advance –Legal requirements 31

Project Management Environment Your Role as the Project Manager –Communicator –Influencer –Leader/Motivator –Negotiator –Problem Solver 32

Project Management Environment General management skills –Financial management –Purchasing and procurement –Sales and marketing –Contracts and commercial law –Manufacturing and distribution 33

Project Management Environment General management skills –Logistics and supply chain –Planning - strategic, tactical, operational –Organizational structures, behaviors, compensation, career paths, personnel administration –Health and safety –Information technology 34

Project Management Environment The Project Management Environment –Domains –Links to ongoing operations –Context of the environment Political Cultural Values Attitudes Physical locations 35

Copyright © 2005 Element K Content LLC. All rights reserved. Project Management Environment The Project Management Environment –Product Management Life Cycle vs. Project Management Life Cycle CreationIdeationIntroductionGrowthMaturityDecline Product Management Lifecycle Project Management Lifecycle 36

Stakeholders The Project Management Environment –Stakeholders The people who work on the project or The people affected by the project –Project Manager –Customer/user –Organization –Project team members –Project management team –Sponsor –PMO 37

PMP® Framework Project Management Plan (Updates) Monitoring & Controlling Process Group Executing Process Group Planning Process Group Initiating Process Group Closing Process Group Authorized Project Concept Approved & Baseline Project Management Plan Work Perf. Info Deliverables Approved Corrective Actions Validated Defect Repair Approved Change Requests Approved Defect Repair 38

PMP® Framework Initiating Process Group –Are the processes used to formally authorize a project or a project phase. Consists of: –Develop Project Charter –Identify Stakeholders 39

PMP® Framework Planning Process Group –Are the processes used to plan and establish the management of a successful project. Consists of: –Develop Project Management Plan –Plan Scope Management –Collect Requirements –Define Scope –Create WBS 40

PMP® Framework Planning Process Group Consists of: –Plan Schedule Management –Define Activities –Sequence Activities –Estimate Activity Resources –Estimate Activity Durations –Develop Schedule 41

PMP® Framework Planning Process Group Consists of: –Plan Cost Management –Estimate Costs –Determine Budget –Plan Quality Management –Plan Human Resource Management –Plan Communications Management –Plan Risk Management –Identify Risks –Perform Qualitative Risk Analysis –Perform Quantitative Risk Analysis 42

PMP® Framework Planning Process Group Consists of: –Plan Risk Responses –Plan Procurement Management –Plan Stakeholder Management 43

PMP® Framework Executing Process Group –Are the processes used to complete the work that has been planned in the project management plan. Consists of: –Direct and Manage Project Work –Perform Quality Assurance –Acquire Project Team –Develop Project Team –Manage Project Team –Manage Communications –Conduct Procurements –Manage Stakeholder Engagement 44

PMP® Framework Monitoring and Controlling Process Group –Are the processes used to watch the project work and identify potential problems. Consists of: –Monitor and Control Project Work –Perform Integrated Change Control –Validate Scope –Control Scope –Control Schedule –Control Costs 45

PMP® Framework Monitoring and Controlling Process Group Consists of: –Control Quality –Control Communications –Control Risks –Control Procurements –Control Stakeholder Engagement 46

PMP® Framework Closing Process Group –Are the processes used to formally close a project or a project phase. Consists of: –Close Project or Phase –Close Procurements 47

PMP® Framework Project Management Plan (Updates) Monitoring & Controlling Process Group Executing Process Group Planning Process Group Initiating Process Group Closing Process Group Authorized Project Concept Approved & Baseline Project Management Plan Work Perf. Info Deliverables Approved Corrective Actions Validated Defect Repair Approved Change Requests Approved Defect Repair 48

49 Environment Cultural environment – Influences team members’ attitudes and desire to achieve the project goal External environment – Includes everything outside the project, such as: –Parent organization –Political environment –Current industrial conditions –Geographical setting –Social commitments

50 Project stakeholder An individual, a group, or an organization involved in a project or whose interests might be influenced as a result of project achievement The key stakeholders:

51 Stakeholders’ influence Their need to feel appreciated throughout the project process Outlining specific requirements they want the project to meet

52 Characteristics Topic A: Project environment Topic B: Organizational structure Topic C: Project manager Topic D: Project team

53 Organizational structure Choosing an organizational interface is an important consideration –The structure chosen will affect the project’s success

54 Organizational structure Steps for deciding on an organizational structure:

55 Functional project organizational structure When creating a project team, make it one of the functional divisions of the organization

56 Functional project organizational structure AdvantagesDisadvantages Help of experts from functional departments No one is given full responsibility for the project. Possibility of professional growth and advancement The project is not the central focus. Flexibility in use of staff from the functional department Project team members tend to be less motivated. Results in more creativityProject issues outside the realm of the functional department are not given as much importance. Sharing of knowledge and expertise

57 Projectized In a projectized organizational structure, the project is separated from the rest of the parent organization and becomes a self- contained unit

58 Projectized AdvantagesDisadvantages It is easier to communicate within a team. Pure project groups tend to be inconsistent. Team members report to one manager. Rivalry can develop between the project members and the parent organization. The project manager has full authority. There is uncertainty about project team members’ future once the current project is completed. It focuses commitment on the team’s project. Duplication of effort occurs in many areas. It simplifies decision making.

59 Matrix organizational form Functional + purely project Combines advantages and overcomes the disadvantages No two organizations have the same matrix design.

60 Matrix organizational form Benefit –Responsibility is shared between project and functional managers. Both maintain some authority, responsibility, and accountability –More collaborative

61 Matrix organizational form Project manager: controls what the team does and when Functional manager: assigns staff and determines the technology to be used

62 Matrix organization Strong matrix organization –Similar to a pure project organization –Project is not separated from the parent organization Weak matrix organization –Similar to a pure functional organization –Project manager might be the only full-time team member –Functional departments just supply services to the project

63 Matrix organizational form AdvantagesDisadvantages Project manager has access to all resources within each functional department. Project team members have two bosses, the project manager and the functional manager. Team members still have their functional “home” once the project is completed. The possibility of role ambiguity exists for managers as well as team members. Balance among time, cost, and personnel can be improved. Time, cost, and performance must be monitored carefully. Policies and procedures can be developed independently for a project. More time is needed initially to define policies and procedures.

64 Matrix organizational form AdvantagesDisadvantages It provides improved use of company-wide resources. Multidimensional information and workflow can lead to confusion and complicate communication. Authority and responsibility for achieving the overall project goal are shared. Conflict can result if a functional manager’s goals differ from the overall project goals. It is flexible and can respond rapidly to change.

65 Develop Project Charter

66 Project Stakeholders

Create Project Charter  Include the project and authority identification information.  Include a clear, concise description of the business need, opportunity, or threat that the project is intended to address.  Include summary descriptions of the product or service of the project.  Include a description of the project's relationship to the business need it is intended to address.  Consider any known constraints and/or assumptions.  Ensure the person with the required knowledge and authority signs the project charter.  Distribute the signed charter to the appropriate project stakeholders.

68 Identify Stakeholders

Reflective Questions 1. What specific benefits would creating an effective charter bring to your organization?

Planning Project Work  Develop a Project Management Plan  Collect Requirements  Create a Scope Statement  Develop a Work Breakdown Structure (WBS)

71 Develop Project Management Plan Process

72 Plan Scope Management

73 Collect Requirements

74 Scope Definition Process

75 Product Analysis TechniqueDescription Functional analysis Analyzing all of the things that a product does, including primary and related functions, to identify unnecessary functions that might drive up cost on a product. Value engineering and value analysis Identifying and developing the cost versus benefits ratio for each function of a product. A method for controlling costs while maintaining performance and quality standards. Very common in military and construction contracts. Quality function deployment Systems engineering Identifying what the customer's needs are, and translating those needs into technical requirements. Appropriate for each stage of the product development cycle. Analyzing products holistically, integrating factors such as users, usage environment, and related hardware or software with which the product must function.

76 Alternatives generation TechniqueDescription Lateral thinking A creative approach to problem solving in which the team attempts to think about a problem in new ways and generate a fresh solution. Brainstorming A general creativity technique for generating possible alternatives. Brainstorming methods can be structured or unstructured in approach. The goal is to generate as many ideas as possible from as many team members as possible. Delphi technique A group technique that extracts and summarizes anonymous group input to choose among various alternatives. Often used to arrive at an estimate or forecast.

Create A Scope Statement  Refine the project objectives, deliverables, and product scope description.  Reexamine the project requirements.  Review the project boundaries.  Update the preliminary project constraints, risks, and assumptions.  Create schedule milestones.  Include a revised overall cost estimate and define any cost limitations.  Identify and document known risks.  Map out the internal organization.  Document project specifications and approval requirements.  Finalize the procedure for accepting completed products.

78 Work Breakdown Structure Process

Reflective Questions 1. What are some elements that would typically be included in an effective project management plan? 2. What are the benefits of creating a work breakdown structure for your project management plan?

Developing Project Schedules, Cost Estimates, and Budgets  Create an Activity List  Create a Project Network Diagram  Estimate Activity Resources  Estimate Activity Durations  Identify the Critical Path  Develop a Project Schedule  Estimate Project Costs  Establish a Cost Baseline

81 Activity List Complete?Activity Write Script Schedule Narrator Record Narration Edit Narration Mix Narration with Music Create Master PSA

Activity  An element of project work that requires an action to produce a deliverable.  Typically has an expected duration.  Usually consumes costs and resources. Examples of activities:  Revise user manual  Dig footers  Reserve conference room

Plan Schedule Management

84 Activity Definition

Create Activity List  Gather inputs and resource materials.  Decompose each work package in the WBS into activities required to produce the deliverable.  Consult records of similar projects to identify possible activities.  Consult subject matter experts about unfamiliar activity.  Ensure activities listed are necessary and sufficient to successfully complete. the work package.

86 Activity List Example Work Package WBS#: 1.1.3.1 Title: Initial Web site Design Work package assigned to: Amy Phillips Description: Approved color online comps of home page and at least one other page of company Web site. Design should include interface elements and proposed functionality. WBS#Activity Responsible Party Estimated Duration (Hours) 1.1.3.1.1 1.1.3.1.2 1.1.3.1.3 1.1.3.1.4 1.1.3.1.5 Research requirements Produce paper comps of 3 designs Review comps & select design Produce online comps of selected design Review and approve online comps

Historical Records Project WBS: 2.1.4 Title: New Sidewalk Assigned to: Peter Singletary Description: Install sidewalk over existing lawn. #Activity 2.1.4.1Excavate Lawn 2.1.4.2Build Forms 2.1.4.3Pour Concrete 2.1.4.4Remove Forms WBS: 2.2.9 Title: Sidewalk Removal Assigned to: Johnny Comelately Description: Remove existing sidewalk and replace with new grass. #Activity 2.2.9.1Remove Sidewalk 2.2.9.2Replace Topsoil 2.2.9.3Lay Sod Historical records of two similar projects

88 Sidewalk Replacement Work Package Activity List WBS: 2.3.3 Title: Sidewalk Replacement Assigned to: Description: Replace old concrete sidewalk (approx. 100 yds long) with curved concrete sidewalk from front porch to street (approx. 200 yds long). #Activity

89 Network Diagrams StartFinish A D B E C F

90 Activity Sequencing

91 Activity Dependencies DependencyDescription MandatoryInherent to the work itself. DiscretionaryDefined by the project management team. ExternalDepend on input from outside the project activities.

92 Precedence Relationships RelationshipDescription Finish-to-start (FS)Activity A must finish before activity B can start. Finish-to-finish (FF)Activity A must finish before activity B can finish. Start-to-start (SS)Activity A must start before activity B can start. Start-to-finish (SF)Activity A must start before activity B can finish.

93 Finish-to-Start (FS) Example A 10 days B 4 days A (10 days) B (4 days) B can’t start until A is finished B can’t start until A is finished 14 days

94 Finish-to-Finish (FF) Example A 10 days B 4 days A (10 days) B (4 days) B can’t finish until A finishes B can’t finish until A finishes A (10 days) B (4 days) FF 14 days (Worst Case) 10 days (Best Case)

95 Start-to-Start (SS) Example A 10 days B 4 days A (10 days) B (4 days) B can’t start until A starts B can’t start until A starts A (10 days) B (4 days) SS 10 days (Best Case) 14 days (Worst Case)

96 Start-to-Finish (SF) Example A 10 days B 4 days A (10 days) B (4 days) A (10 days) A must start before B can finish B (4 days) 10 days (Best Case) 14 days (Worst Case) SF

Lag  The permit application takes six weeks to process.  The adhesive must dry until it’s tacky before the laminate can be installed.

98 Finish-to-Start (FS) Relationship with Lag A 10 days B 4 days B (4 days) Lag (4 days) A (10 days) Lag 4 18 days

99 Start-to-Start Relationship with Lag A 10 days B 4 days A (10 days) B (4 days) Lag (3 days) B can’t start until A starts Lag 3 10 days

100 Lead Example A 8 days B 6 days A (8 days) B (6 days) 4 days FS-4 10 days

101 PDM Diagram Start Finish A B C D E FGHIJ

102 Blank Activity Precedence Chart WBS: 2.3.3 Title: Sidewalk Replacement Assigned to: Jack Materman Description: Replace old concrete sidewalk (approx. 100 yds long) with curved concrete sidewalk from front porch to street (approx. 200 yds long). #ActivityPredecessor 2.3.3.1Remove Sidewalk 2.3.3.2Excavate Lawn 2.3.3.3Build Forms 2.3.3.4Pour Concrete 2.3.3.5Replace Topsoil 2.3.3.6Lay Sod 2.3.3.7Remove Forms

103 Completed Activity Precedence Chart WBS: 2.3.3 Title: Sidewalk Replacement Assigned to: Jack Materman Description: Replace old concrete sidewalk (approx. 100 yds long) with curved concrete sidewalk from front porch to street (approx. 200 yds long). #ActivityPredecessor 2.3.3.1Remove Sidewalk3.3.4.4 2.3.3.2Excavate Lawn2.3.3.1 2.3.3.3Build Forms2.3.3.2 2.3.3.4Pour Concrete2.3.3.3 2.3.3.5Replace Topsoil2.3.3.3 2.3.3.6Lay Sod2.3.3.5 2.3.3.7Remove Forms2.3.3.4 and 2.3.3.6

104 Completed Sidewalk Replacement Work Package Network Diagram 2.3.3.1 Remove Old Sidewalk 2.3.3.2 Excavate Lawn 2.3.3.3 Build Forms 2.3.3.7 Remove Forms 2.3.3.4 Pour Concrete 2.3.3.5 Replace Topsoil 2.3.3.6 Lay Sod

105 Activity Resource Estimating

Estimate Activity Resources  Determine what resources are necessary to complete each activity.  Determine what quantity of resources is necessary to complete each activity.  Generate possible alternatives for unavailable resources.  Analyze the scope statement.  Consider organizational policies that could affect resource acquisition and usage.  Identify and use expert judgment resources.  Analyze the resources already available.

Activity Duration Estimates  Number of work units required to complete the activity.  Assumptions made when making the estimates.  Range of variance for the estimate.

108 Activity Duration Estimating

Analogous Estimating  The amount and reliability of historical information.  The similarity of the historical project on which the estimates are based.  The expertise and relevancy of the expert judgment used to make the estimates.

Estimate Activity Durations  Involve the work package owners.  Consult historical information.  Determine which work unit you will use.  Consider resource requirements and capabilities  Determine the appropriate estimation method to use.  Modify the constraints and assumptions from the other planning processes.  Verify the accuracy of your estimates.  Consider the need for reserve time.  Include the list of assumptions made in the creation of estimates.  Include a range of variance for each estimate.

111 Critical Path

112 Schedule Development

113 Schedule Network Analysis Methods MethodDescription Critical path (CPM) Uses a sequential finish-to-start network logic and calculates one early and late start and finish date for each activity using a single duration estimate. Critical chain Considers resource limitations and adjusts the schedule as appropriate to work within those limitations. What-if scenario Allows you to plan for unexpected issues or problems that will interfere with the schedule. Resource leveling Allows you to readjust the work as appropriate and addresses scheduling activities when critical resources are only available at certain times.

114 Standard Diagramming Notations ESEF LSLFDU

115 CPM Network Diagram with Float ES 0 EF 10 LS 0 LF 10 DU 10 4.2.1 Activity A TF=0 FF=0 ES 10 EF 25 LS 10 LF 25 DU 15 4.2.2 Activity B TF=0 FF=0 ES 61 EF 66 LS 61 LF 66 DU 5 4.2.8 Activity H TF=0 FF=0 ES 37 EF 50 LS 48 LF 61 DU 13 4.2.5 Activity E TF=11 FF=11 ES 29 EF 37 LS 40 LF 48 DU 8 4.2.4 Activity D TF=11 FF=0 ES 25 EF 29 LS 36 LF 40 DU 4 4.2.3 Activity C TF=11 FF=0 ES 25 EF 41 LS 25 LF 41 DU 16 4.2.6 Activity F TF=0 FF=0 ES 49 EF 61 LS 49 LF 61 DU 12 4.2.7 Activity G TF=0 FF=0 FS 8

Identify the Critical Path  Conduct a forward pass to determine early start (ES) and early finish (EF) times for each activity.  Perform a backward pass to determine late start (LS) and late finish (LF) times for each activity.  Calculate float.  Identify the critical path as the path with the longest total duration and zero float.

117 Calculating the Critical Path ES 0 EF 10 LS 0 LF 10 DU 10 4.2.1 Activity A TF=0 FF=0 ES 10 EF 25 LS 10 LF 25 DU 15 4.2.2 Activity B TF=0 FF=0 ES 61 EF 66 LS 61 LF 66 DU 5 4.2.8 Activity H TF=0 FF=0 ES 37 EF 50 LS 48 LF 61 DU 13 4.2.5 Activity E TF=11 FF=11 ES 29 EF 37 LS 40 LF 48 DU 8 4.2.4 Activity D TF=11 FF=0 ES 25 EF 29 LS 36 LF 40 DU 4 4.2.3 Activity C TF=11 FF=0 ES 25 EF 41 LS 25 LF 41 DU 16 4.2.6 Activity F TF=0 FF=0 ES 49 EF 61 LS 49 LF 61 DU 12 4.2.7 Activity G TF=0 FF=0 FS 8

118 Network Diagram with Activity Duration Estimates TF= FF= TF= FF= 2.3.3.1 Remove Old Sidewalk 2.3.3.2 Excavate Lawn 2.3.3.3 Build Forms 2.3.3.7 Remove Forms 2.3.3.4 Pour Concrete 2.3.3.5 Replace Topsoil 2.3.3.6 Lay Sod ES 0 EF 20 LSLFDU 20 ES 20 EF 45 LSLFDU 25 ES 45 EF 53 LSLFDU 8 ES 53 EF 61 LSLFDU 8 ES 77 EF 81 LSLFDU 4 ES 53 EF 59 LSLFDU 6 ES 59 EF 67 LSLFDU 8 TF= FF= TF= FF= TF= FF= TF= FF= TF= FF= FS 16

119 Network Diagram with Forward Pass TF= FF= TF= FF= 2.3.3.1 Remove Old Sidewalk 2.3.3.2 Excavate Lawn 2.3.3.3 Build Forms 2.3.3.7 Remove Forms 2.3.3.4 Pour Concrete 2.3.3.5 Replace Topsoil 2.3.3.6 Lay Sod ES 0 EF 20 LSLFDU 20 ES 20 EF 45 LSLFDU 25 ES 45 EF 53 LSLFDU 8 ES 53 EF 61 LSLFDU 8 ES 77 EF 81 LSLFDU 4 ES 53 EF 59 LSLFDU 6 ES 59 EF 67 LSLFDU 8 TF= FF= TF= FF= TF= FF= TF= FF= TF= FF= FS 16

120 Network Diagram with Backward Pass 2.3.3.1 Remove Old Sidewalk 2.3.3.2 Excavate Lawn 2.3.3.3 Build Forms 2.3.3.7 Remove Forms 2.3.3.4 Pour Concrete 2.3.3.5 Replace Topsoil 2.3.3.6 Lay Sod ES 0 EF 20 LS 0 LF 20 DU 20 ES 20 EF 53 LS 20 LF 45 DU 25 ES 45 EF 53 LS 45 LF 53 DU 8 ES 53 EF 61 LS 53 LF 61 DU 8 ES 77 EF 81 LS 77 LF 81 DU 4 ES 53 EF 59 LS 63 LF 69 DU 6 ES 59 EF 67 LS 69 LF 77 DU 8 TF= FF= TF= FF= TF= FF= TF= FF= TF= FF= TF= FF= TF= FF= FS 16

121 Completed Network Diagram 2.3.3.1 Remove Old Sidewalk 2.3.3.2 Excavate Lawn 2.3.3.3 Build Forms 2.3.3.7 Remove Forms 2.3.3.4 Pour Concrete 2.3.3.5 Replace Topsoil 2.3.3.6 Lay Sod ES 0 EF 20 LS 0 LF 20 DU 20 ES 20 EF 45 LS 20 LF 45 DU 25 ES 45 EF 53 LS 45 LF 53 DU 8 ES 53 EF 61 LS 53 LF 61 DU 8 ES 77 EF 81 LS 77 LF 81 DU 4 ES 53 EF 59 LS 63 LF 69 DU 6 ES 59 EF 67 LS 69 LF 77 DU 8 TF=0 FF=0 TF=0 FF=0 TF=0 FF=0 TF=0 FF=0 TF=10 FF=0 TF=10 FF=10 TF=0 FF=0 FS 16

122 Project Schedule

123 Network Diagram with Dates Example ES 0 EF 10 LS 0 LF 10 DU 10 4.2.1 Activity A ES 10 EF 25 LS 10 LF 25 DU 15 4.2.2 Activity B ES 61 EF 66 LS 61 LF 66 DU 5 4.2.8 Activity H ES 37 EF 50 LS 48 LF 61 DU 13 4.2.5 Activity E ES 29 EF 37 LS 40 LF 48 DU 8 4.2.4 Activity D ES 25 EF 29 LS 36 LF 40 DU 4 4.2.3 Activity C ES 25 EF 41 LS 25 LF 41 DU 16 4.2.6 Activity F ES 49 EF 61 LS 49 LF 61 DU 12 4.2.7 Activity G 3 Feb14 Feb 7 Mar28 Apr6 May 7 Mar31 Mar10 Apr28 Apr 7 Mar13 Mar 25 Mar 13 Apr FS 8

124 Fast-Tracking Develop Product Write Manual Normal Fast-tracked

125 Crash Costs Example Normal Time (wk) Crash Time (wk) Normal Cost ($) Crash Cost ($) Crash Cost ($/wk) A10815,00023,0004,000 B121110,00014,5004,500 C865,0008,0001,500 D636,0007,500500 E9612,00018,0002,000 Totals453448,00071,000Totals

126 Plotting Crash Costs 70,000 65,000 60,000 55,000 50,000 45,000 32 34 46 Total Project Duration (weeks) Total Project Cost ($) Minimum Total Crash Cost Crash B Crash A Crash E Crash C Crash D 3638404244 Normal Operations

127 Critical Path Activity B (6) C (6) D (6) E (10) F (20) A (13) G (5)

128 Calculated Crash Costs per Week Normal Time (wk) Crash Time (wk) Normal Cost ($) Crash Cost ($) Crash Cost ($/wk) A131025,00043,0006,000 B642,0004,0001,000 C653,0005,0002,000 D623,0004,000250 E1073,0009,0002,000 F201350,00064,0002,000 G536,0008,0001,000

129 Simulation TechniqueDescription Monte Carlo analysis Uses the optimistic, most likely, and pessimistic estimates for variables in the model and simulates various outcomes of the project schedule to provide a statistical distribution of the calculated results. What-if analysis Simulates different scenarios using the project's logic network to assess the feasibility of the schedule under adverse conditions.

Develop a Project Schedule  Perform a mathematical analysis to determine the time periods within which the activities could be scheduled.  Evaluate constraints and assumptions made during other planning processes.  Consider the availability of your resources.  Consult project and resource calendars and assign dates to activities.  Calculate possible project durations under different assumptions using simulation.  Consider international issues, if applicable.  Select the most appropriate project management software.

Develop a Project Schedule (cont.)  Review rough drafts of the schedule with the project team.  Choose the format in which you’ll publish the schedule.  Distribute the preliminary schedule to appropriate parties.  Perform schedule compression, if applicable.  Review any schedule changes with key stakeholders.  Baseline the schedule and distribute to the team.

Plan Cost Management

133 Cost Estimating

134 Estimating Techniques Pros and Cons TechniqueProsCons Analogous Can ensure no work is inadvertently omitted from work estimates. Can sometimes be difficult for lower- level managers to apportion cost estimates. Bottom-up Is very accurate and gives lower- level managers more responsibility. May be very time consuming and can only be used after the WBS has been well-defined. Parametric Using parametric models is not time consuming. May be inaccurate, depending on the integrity of the historical information used.

Estimate Project Costs  Involve the work package owners.  Gather relevant input information that may help you prepare the estimates.  Determine which estimating technique to use.  Look for alternative costing options.  Determine the units of measure that will be used.  Consider possible risks that could impact cost.  Ensure all cost estimates are assigned to the appropriate account according to the chart of accounts.  Make sure your cost estimates include key elements.

136 Cost Budgeting

137 Cost Baseline Cost Time Planned Costs

138 Cost Assignment Methods MethodDescription 0/100 percent ruleNo credit is given to work until it is completed. 50/50 percent rule Fifty percent credit is given when the activity begins and fifty percent credit is given when the work is completed. Percentage complete rule Completion percentages are estimated and assessed at specific reporting intervals. Weighted milestones The total work package value is divided up and assigned to milestone intervals within the work package.

Establish a Cost Baseline  Gather inputs you will need to establish the baseline.  Determine when activities will take place using the project schedule.  Using one of the four methods of assigning costs, allocate funds for each activity or work package for the time period in which they will occur.  Consider adding contingency amount to accommodate the risk of incurring extra expenses.  Total the costs for each time period.  Plot the costs for each time period.  Publish and distribute the cost baseline to the appropriate stakeholders.

Reflective Questions 1. What are some of the different ways of identifying the critical path of a project? 2. What are some elements of a typical schedule management plan?

Planning Project Quality, Staffing, and Communications  Create a Quality Management Plan  Document Roles, Responsibilities, and Reporting Relationships  Acquire Project Team  Create a Communications Management Plan

142 Quality Planning

Quality  Total Quality Management (TQM)  Standards and regulations  ISO 9000 Series  Standards example

144 Cost of Quality Type of CostDescription Prevention The up-front costs of programs or processes needed to meet customer requirements, or to design in quality. Appraisal The costs associated with evaluating whether the programs or processes meet requirements. Failure The costs associated with making the product or service acceptable to the customer after it fails internal testing and before it's delivered to the customer

145 Cause-and-Effect Diagram MachineMethodMaterial Rejected Images Non-standard Software PersonnelEnvironment Mac or PC Wrong specs Incompatible File formats Poor training No stylebook Inexperience Overworked Poor specs Late Storyboards Low morale Noise Measurement

146 Process Flowchart Pressurization test X-ray the weld to detect micro-fractures Fractures detected ? Connect pressure unit to open end of pipe Pressurization test Yes No Yes No C A B Grind out the old weld Prepare the weld surface Apply the new weld Test complete Time elapsed? Leaks detected?

Benchmarking  Which products or services to offer and which features should be included?  What processes are other groups using to achieve customer satisfaction?  What metrics or goals are used to measure the processes or products that achieve customer satisfaction?

Design of Experiments  Which variable has the greatest effect?  What is the relationship between each variable and the quality (customer-focused) specifications?  What is the best value for each variable in order to optimize quality or value?

Create a Quality Management Plan  Review the organization’s quality policy.  Review the product description to identify customer/stakeholder quality.  Determine cost of quality trade-offs.  Ensure your quality management plan:  Describes the resource required to implement quality management.  Includes quality management roles and responsibilities.  Is as detailed and formal as required, based on the project needs.

150 Human Resource Planning

Organizational Structure Types  Functional  Projectized  Matrix  Composite

152 Functional Organization Chart CEO Program Manager Marketing Human Resources ProcurementEngineeringManufacturing Mechanical Engineering Assembly Electrical Engineering Quality

153 Projectized Organization Chart Program Manager VP Administration VP Marketing VP Manufacturing VP Engineering Project Manager 1 Project Manager 2 Marketing IM & T Procurement Engineering Manufacturing Marketing IM & T Procurement Engineering Manufacturing CEO

154 Matrix Organization Chart CEO Program Manager Marketing Human Resources ProcurementEngineeringManufacturing Project Manager 1 Project Manager 2 1/2 46 1112

155 Project Interfaces InterfaceDescription OrganizationalReporting relationships among different organizational units. Technical Reporting relationships among technical disciplines on the project that can occur during a phase or during the transition between phases. Interpersonal Formal and informal reporting relationships among individuals working on the project, whether internally or externally.

156 Responsibility Assignment Matrix Project Manager Engineering Manager Quality Assurance Manager Purchasing Manager Manufacturing Manager Create Blueprints Manufacture Breadboard Test Breadboard Order Components Assemble S S S S S A A P P P P A P P A p p p p A Responsibility Assignment Matrix S = Signoff A = Accountable P = Participant

Document Roles and Relationships  Review the staffing requirements for your project.  Understand any constraints.  Address the organizational structure.  Incorporate required roles and reporting relationships, if necessary.  Consider the competencies of expected staff members.  Create an organization chart to document the reporting relationships.  Ensure key project stakeholders with reporting relationships are indicated on your chart.  Create a RAM to document roles and responsibilities for stakeholders.  Ensure the RAM is created as early as possible.  Assign roles and responsibilities to stakeholders.  Ensure project scope is accounted for in the RAM.  Distribute the organization chart and RAM to project team.

158 Human Resources Plan ItemDescription Staff acquisition Consider whether you will use team members from within the organization or from external sources, the costs associated with the level of expertise required for the project, and physical location of resources. Timetable Optimize the use of people on the project to keep the project on time and within budget. Release criteria Develop a method and timetable for releasing resources to help control project costs by using team members’ expertise or skills as they are needed. Training needs A training plan can be developed for team members who need to improve their competency levels or who may need to obtain certifications that will benefit the project. Recognition and rewards Create incentives for meeting milestones or other project deliverables, which can have a positive effect on morale Compliance Any compliance issues should be stipulated in the staffing management plan. Safety Projects performed where specific safety precautions must be taken can have documented policies and procedures for the protection of team members.

159 Communications Planning

Communications Technology  How quickly must the information reach the audience?  Will there be feedback from the communication?  What technology will the audience need to receive the communication?  Are there technical difficulties or learning curve issues to address?  Are there access or security issues with the communications technology?  Is the particular mode of technology likely to become outdated?  What is the relative cost of each technology?

Create a Communications Management Plan  Determine the communication needs of project stakeholders.  Analyze the value to the project of providing the information.  Evaluate any constraints and assumptions.  Determine the appropriate communications technologies to use for communicating project information.  Ensure the communications management plan details “who gets what information when and in what format.”  Integrate the communications management plan into the overall project plan.  Distribute the communications management plan to project stakeholders.

Reflective Questions 1. What specific benefits would enlisting stakeholder support bring to your quality, resource, and communications planning efforts? 2. What are some factors you will consider when determining a structure for your quality organization?

Analyzing Risks and Planning Risk Response  Create a Risk Management Plan  Identify Project Risks and Triggers  Perform Qualitative Risk Analysis  Perform Quantitative Risk Analysis  Develop a Risk Response Plan

164 Risk Management Plan

Risk Risk Components  A measure of probability that the risk event will occur.  The impact of the risk occurring on a project. Risk Classifications  Business risk versus insurable risk.  Effect-based classification.  Source-based classification.  Level of uncertainty.

166 Levels of Uncertainty TypeDescription Known Items that you are aware of and that will affect you, but you have no control over. Known-unknown Items that will affect you, although you are not able to predict how or how much they will affect you. Unknown-unknownItems beyond your ability to foresee.

167 Risk Tolerance ClassificationDescription Risk-averterNot likely to take a risk that is considered a high risk. Risk-seeker Prefers an uncertain outcome and may be willing to pay a penalty to take a high risk. Risk-neutralTolerance to risk is proportional to the amount of money at stake.

168 Decision-Making ElementDescription Certainty Completely sure of the states of nature to be faced and their respective payoffs. Risk Known states of nature and their respective payoffs, but probability must be assigned to the occurrence of each state of nature. Uncertainty Each state of nature must be estimated and payoffs may be unknown.

Create a Risk Management Plan  Determine how you will organize your project’s risk management team.  Conduct risk planning meetings to develop the risk management plan.  Establish a budget for risk management.  Consult your organization’s risk management policy for compliance.  Use a risk management plan template, if available.  Describe the approaches, tools, and data sources that may be used to perform risk management activities for the project.  Determine the schedule for performing risk management activities.  Determine how your team will document risk response efforts.  Determine how lessons learned will be documented.  Include organizational and stakeholders risk thresholds.

170 Project Risks and Triggers

171 Risk Identification

Risk Categories  Technical changes  Changes to industry standards during a project  Reliance on unproven or complex technology  Unrealistic performance goals

173 Information-Gathering Techniques TechniqueDescription Brainstorming Used to identify overall project risks or may focus in on the risks within a particular project segment or work package. Delphi technique Generates a consensus among project risk experts who anonymously submit their risk list to a facilitator. Interviewing Used to get information from people with a wide experience across many projects. Root cause identificationUsed to find and group the risks by cause. Strengths, weaknesses, opportunities, and threats (SWOT) analysis Examines the project from the perspective of strengths, weaknesses, opportunities, and threats.

Identify Project Risks and Triggers  Review outputs from other planning processes.  Use one or more risk identification techniques to identify risks and their possible triggers.  Use a consistent method to identify project risks and triggers.  Think outside the box.  Apply the method to identify project risks and triggers consistently.  Consult relevant historical information.  Group identified risks into categories.  Determine triggers for each identified risk.

175 Qualitative Risk Analysis

176 Probability Scale No Probability Certainty 0.1.3.5.7.91.0

177 Probability/Impact Risk Rating Matrix 1.35 0.75 0.15 4.95 2.75 0.55 7.65 4.25 0.85 0.9 Very High 0.5 Medium 0.1 Very Low 1.5 Medium 5.5 Very High 8.5 Probability Impact

Perform Qualitative Risk Analysis  Examine the list of identified risks.  Analyze the data available for each risk to assign a data precision ranking score.  Determine the organization's risk threshold for this project.  Analyze the assumptions identified during risk identification as potential risks.  Analyze the probability and impact of each identified risk using well- defined probability and impact scales.  Determine the risk factor scores of each risk using a probability/impact risk rating matrix.  Prioritize the risks according to the risk management plan.  Identify risks that require additional analysis.  Determine the overall risk ranking for the project.  Determine all changes to the risk register.

179 Quantitative Risk Analysis

180 Interviewing Methods MethodDescription Direct Asks an expert to assign subjective probabilities to a given range of values, providing a lowest possible value, most likely value, and highest possible value. Diagrammatic Uses diagrams for an expert to assign subjective probabilities to a given range of values, providing a lowest possible value, most likely value, and highest possible value. Delphi Group method allowing experts to contribute their assessments anonymously.

181 Uniform Distribution Probability Impact

182 Normal Distribution Probability Impact

183 Triangular Distribution Probability Impact

184 Quantitative Analysis Methods MethodDescription Sensitivity analysis Places a value on the effect of changing a single variable within a project by analyzing that effect on the project plan. Expected monetary value (EMV) analysis Assesses the average outcome of both known and unknown scenarios. Decision tree analysis Factors both probability and impact for each variable, indicating the decision providing the greatest expected value when all uncertain implications and subsequent decisions are quantified. Modeling and simulation Uses models that calculate potential impact of events on the project, based on random input values.

185 Decision Tree A $100,000 B $125,000 C $135,000 0.7 x $100,000 = $70,000 0.3 x -$10,000 = -$3,000 0.5 x -$10,000 = -$5,000 0.5 x $60,000 = $30,000 0.2 x $20,000 = $4,000 0.8 x -$10,000 = -$8,000

Perform Quantitative Risk Analysis  Consult historical information.  Use the appropriate interviewing technique and obtain probability distributions.  Depict the distributions in a PDF.  Perform a sensitivity analysis.  Use decision tree analysis technique.  Conduct a project simulation.  Prioritize the quantified risks.

187 Risk Response Planning

188 Negative Risk Strategies StrategyDescription Risk avoidance Involves changing the project plan to prevent a potentially detrimental risk condition or event from happening. Risk transference Shifts the impact of a risk event and ownership of the risk response to a third party. Risk mitigation Attempts to reduce the probability or impact of a potential risk event to an acceptable level.

189 Positive Risk Strategies StrategyDescription Risk exploitation Often used when a project team wants to make sure that a positive risk is fully realized. Risk sharing Entails partnering up with another party in an effort to give your team the best chance of seizing the opportunity. Risk enhancementAttempts to increase the probability that an opportunity will occur.

Develop a Risk Response Plan  Examine each identified risk to determine its causes and how it might affect project objectives.  Brainstorm possible response strategies for each risk.  Choose the response strategy that is most likely to be effective for each identified risk.  Develop specific actions for implementing the chosen strategy.  Identify backup strategies for risks with high risk factor scores.  Determine the amount of contingency reserves necessary to deal with accepted risks.  Determine how much of a contingency reserve you should set aside for unknown risks.  Consult the risk management plan for the description of the content and format of the risk response plan.  Incorporate the risk response plan into the overall project plan.  Examine trends in analysis results that may guide response strategies.

Reflective Questions 1. How could you and your organization benefit from comprehensive risk panning? 2. What tools and techniques could you use to effectively identify, rank, prioritize, and quantify risks for future projects you manage?

Planning Project Procurement  Prepare a Contract Statement of Work  Prepare a Procurement Document

193 Plan Procurements

Specifications Specification TypeDescription DesignDetail what is required in terms of physical characteristics. Performance Specify measurable capabilities the end product must achieve in terms of operational characteristics. Functional Define what the deliverable is required to do, but not necessarily how to do it.

195 Make-or-Buy Analysis QuestionConsideration How will the options affect project cost, time, or quality? For instance, if current personnel must be retrained for services requiring a new skill set, it may be less expensive to outsource those services. Will this service be an ongoing need for the company? If the organization will continue to need a specific skill set--even for future, unrelated projects--it may be a worthwhile investment to train current personnel to perform that service. Do the project's time constraints accommodate the learning curve inherent to newly trained personnel? While it may make financial sense to develop an in-house solution, there may not be enough time to train personnel and/or implement the necessary policies and equipment to produce that solution.

196 Contracts Contract TypeDescription Fixed-price Seller agrees to perform the work at the negotiated contract value. Also known as a lump-sum contract. Cost-reimbursable Seller receives a refund of the expenses incurred while providing a service or producing a product, plus a fee representing seller profit. Time and Material (T&M) Buyer pays to the seller a pre-negotiated hourly rate and full reimbursement for materials used to complete the contract.

Prepare a Statement of Work (SOW)  Review the product description to ensure that you fully understand the scope of the work being procured.  Consult technical experts to clearly and concisely define specifications.  Use a standard form or template, if available.  Present the information in a logical sequence.  Use consistent terminology and level of detail throughout the SOW.  Determine whether any collateral services will be required of the seller.  Determine the acceptable criteria for the product or service.  Make sure your SOW includes all key elements.  Have a knowledgeable third party review the SOW for completeness and correctness.

198 Evaluation Criteria Objective CriteriaSubjective Criteria Ph.D. chemist with at least five years experience in chromatographic research Experienced laboratory chemist with background in chromatography 80,000 - 90,000 square foot storage area within three miles of Dallas-Fort Worth Airport 80,000+ square foot storage area near Dallas- Fort Worth Airport

Prepare a Procurement Document  Examine the procurement need and determine which procurement document to use.  Use standard procurement forms or templates if available.  Develop a strong set of evaluation criteria based on the real needs of your project.  Leave yourself some room to select from a range of capabilities and experience.  Determine how you want the prospective sellers to respond.  Examine the relevant SOW and modify if necessary.  Ensure the procurement document is structured to facilitate consistent, comparable responses from sellers.  Include other relevant information.

Reflective Questions 1. How could your organization benefit from procurement and solicitation planning? 2. What tools and techniques could you use to prepare better statements of work and procurement documents for future projects you manage?

Plan Stakeholder Management

Executing Project Work  Manage Project Execution  Perform Quality Assurance  Develop the Project Team  Distribute Project Information  Request Seller Responses  Select Sellers 202

203 Direct and Manage Project Execution 203

Project Management Information System (PMIS)  Includes formal and informal techniques.  May be computerized or manual.  Collects information on what work has and has not been accomplished in each work package.  Collects information on how actual work results compare with planned work results. 204

Common PMIS Problems  Reacting to lagging indicators.  Managing symptoms rather than problems.  Over-reliance on PMIS communication.  Invalid data in the PMIS.  Too much information. 205

Directing and Managing Project Execution  Comply with organizational policies and procedures.  Design and implement a work authorization system to formally sanction work to commence on an activity or deliverable.  Create a PMIS that is workable for your project.  Assign responsibility for day-to-day operation of the PMIS.  Evaluate the effectiveness of the PMIS for your project. 206

207 Perform Quality Assurance 207

208 Quality Audits TopicDescription Quality management policy May be evaluated to determine how well management uses quality data and how well others in the organization understand how the data is being used. Collection and use of information May be evaluated to determine how well the project team is collecting, distributing, and using quality data. Analytical methods May be evaluated to determine if the best analytical methods are being used consistently and how well their results are being used. Cost of quality May be evaluated to determine the most effective proportion between prevention, inspection, and costs of repair or rework. Quality process design May be evaluated to determine how process design, process analysis, and statistical process control should be used to establish and improve the capability of a process. 208

Performing Quality Assurance  Ensure that qualified auditors conduct quality audits.  Use one or more quality assurance tools and techniques to determine the causes of project quality problems.  Identify and implement the appropriate actions to take to increase the efficiency and effectiveness of the project team’s work results to improve quality. 209

210 Acquire Project Team 210

211 Develop Project Team 211

212 Team Development StageDescription Forming Allowing team members to get to know each other and trust one another. StormingResolving conflict and achieving consensus. Norming Less structured and more informal focusing on maintaining momentum. Performing Less structured and more informal focusing on sustaining momentum. 212

Reward and Recognition  Tied to performance.  Based on the results of a pre-established evaluation process.  Reward outcomes that are within the team member’s control.  Consider cultural differences when providing recognition. 213

214 Co-location Co-located TeamsVirtual Teams Improved communication Shared team identity Enhanced team performance Enhanced team spirit Hampered communication Difficulty bonding Lack of team identity Lose sight of team members’ contributions 214

Training  Provide specific performance targets.  Present relevant information and opportunities for practice.  Provide feedback to the trainee during training.  Provide an evaluation mechanism. 215

216 Conflict Management Approaches ItemDescription Confrontation Identifying the underlying problem and working out solutions in a way that allows all parties to work through their disagreements. CompromiseFinding a middle ground that satisfies all parties to some degree. Smoothing De-emphasizes differences between points of view and focuses on commonalities. ForcingRequires others to yield to the point of view of one side or another. Withdrawal Avoiding or retreating from the conflict or potential conflict and allowing the involved parties to work out the conflict on their own. 216

Developing the Project Team  Recognize the project team’s current stage of development and be proactive in making the team as productive as possible.  Develop and implement a formal reward and recognition system tied to performance.  Consider co-location to enhance the team’s ability to perform together and improve communication.  Provide appropriate training to help team members gain new or enhanced skills.  Manage conflict using the appropriate approach based on the circumstances and individuals involved. 217

Manage Project Team 218

Managing a Project Team  Establish good communication among team members.  Monitor performance of team members on an ongoing basis.  Consider having a quality audit.  Manage conflict within the team.  Establish an issues log to track and assign project issues. 219

220 Keys to Managing People Psychologists and management theorists have devoted much research and thought to the field of managing people at work. Important areas related to project management include: –Motivation theories –Influence and power –Effectiveness

221 Intrinsic and Extrinsic Motivation Intrinsic motivation causes people to participate in an activity for their own enjoyment. Extrinsic motivation causes people to do something for a reward or to avoid a penalty. For example, some children take piano lessons for intrinsic motivation (they enjoy it) while others take them for extrinsic motivation (to get a reward or avoid punishment).

222 Maslow’s Hierarchy of Needs Abraham Maslow argued that human beings possess unique qualities that enable them to make independent choices, thus giving them control of their destiny. Maslow developed a hierarchy of needs, which states that people’s behaviors are guided or motivated by a sequence of needs.

223 Figure 1. Maslow’s Hierarchy of Needs

224 Herzberg’s Motivational and Hygiene Factors Frederick Herzberg wrote several famous books and articles about worker motivation. He distinguished between: –Motivational factors: Achievement, recognition, the work itself, responsibility, advancement, and growth. These factors produce job satisfaction. –Hygiene factors: Larger salaries, more supervision, and a more attractive work environment. These factors cause dissatisfaction if not present, but do not motivate workers to do more.

225 McClelland’s Acquired-Needs Theory Specific needs are acquired or learned over time and are shaped by life experiences. The following are the main categories of acquired needs: –Achievement (nAch): People with a high need for achievement like challenging projects with attainable goals and lots of feedback. –Affiliation (nAff): People with high need for affiliation desire harmonious relationships and need to feel accepted by others, so managers should try to create a cooperative work environment for them. –Power (nPow): People with a need for power desire either personal power (not good) or institutional power (good for the organization). Provide institutional power seekers with management opportunities.

226 McGregor’s Theory X and Y Douglas McGregor popularized the human relations approach to management in the 1960s. Theory X: Assumes workers dislike and avoid work, so managers must use coercion, threats, and various control schemes to get workers to meet objectives. Theory Y: Assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs. Theory Z: Introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, which emphasizes trust, quality, collective decision making, and cultural values.

227 Ways to Influence that Help and Hurt Projects Projects are more likely to succeed when project managers influence people using: –Expertise –Work challenge Projects are more likely to fail when project managers rely too heavily on: –Authority –Money –Penalty

228 Power Power is the potential ability to influence behavior to get people to do things they would not otherwise do. Types of power include: –Coercive power –Legitimate power –Expert power –Reward power –Referent power

229 General Advice on Teams Be patient and kind with your team. Fix the problem instead of blaming people. Establish regular, effective meetings. Allow time for teams to go through the basic team-building stages. Limit the size of work teams to three to seven members.

Delegation If there is a question in exam around delegation, try to watch for the options as follows: –Technical stuff - All technical stuff can be delegated –WBS and similar items - Remember that WBS, estimation etc is best done by project team rather than PM –Working with customers on Technical details. PM need not be involved. He can just be informed.. 230

Delegation PM Should not delegate value added stuff which are mainly responsibilities like Motivating team members Giving out rewards. You can invite senior managers but not delegate Watch out for things in PMBOK where it says this is PM;s responsibility 231

232 Manage Communications 232

Distributing Project Information  Create and distribute planned requests for project information in accordance with the communications management plan.  Use effective communication skills to exchange information.  Use an information retrieval system to provide stakeholders access to project information.  Select the appropriate information distribution method for distributing project information.  Monitor the communications system for feedback to ensure messages are getting through as planned.  Analyze effects on project execution and control when unexpected information requests surface. 233

Manage Stakeholder Expectations  Follow the communications plan and obtain stakeholder feedback.  Hold meetings with stakeholders.  Be flexible in communications for senior management.  Assign, track, and resolve open issues.  Process change requests in order to update the communications plan.  Take corrective action to bring project performance in line with stakeholder expectations.  Document lessons learned. 234

235 Conduct Procurements 235

Conduct Procurements  Gather and review all of your procurement documents.  Obtain or develop a qualified sellers list.  Determine how and to whom you will request seller responses.  Hold a bidders conference to allow prospective sellers to ask questions and acquire information. 236

237 Sample Weighted Scorecard 237

238 Contract Negotiation StageDescription Introduction All parties become acquainted and the overall attitude of the negotiation is established—normally led by the buyer’s team leader. ProbingEach side attempts to learn more about the other’s real position. Bargaining Give-and-take discussions take place to arrive at the best possible agreement for all. Closure The tentative agreement is revised and everyone has an opportunity to tweak the results. Agreement The team tries to ensure that all parties clearly understand and agree to all terms and conditions of the contract. 238

239 Manage Stakeholder Engagement

Monitoring and Controlling Project Work  Control and Monitor Project Work  Manage Changes to Performance Baselines  Review Deliverables and Work Results  Control Project Scope 240

241 Monitor and Control Project Work 241

Monitoring and Controlling Project Work  Compare and evaluate project performance to the project plan.  Analyze, track, and monitor risks.  Maintain accurate information.  Provide information to support status reporting, progress, and forecasting.  Provide forecasts to update recent cost and schedule information.  Monitor the execution of approved changes. 242

243 Integrated Change Control

244 Causes of Project Changes CauseDescription Inaccurate initial estimates Inaccuracies may range from lack of experience, information, or precedence to inaccurate data, excessive optimism, technological difficulties, and unreliable resources. Specification changes Project work can open up new avenues of development and design that were not considered during the initial planning of the project work and scope. New regulations New governmental or industry-specific regulations may be enacted. This can be especially true for very lengthy projects.

Change Control System  What will be measured?  What standards will be used?  How much variance is allowable?  How and when will team members report measurements results?  What corrective actions will be taken?  How will information and updates be recorded and communicated? 245

Revision Request Example 246

Managing Changes to Performance Baselines  Develop and implement a change control system.  Use configuration management to control changes to the original product.  Coordinate changes across the entire project.  Use performance reports to measure project performance.  Identify corrective action necessary to bring expected performance in line with the project plan.  Update the project plan to reflect changes to performance baselines.  Document the causes of variances and corrective action taken. 247

Validate Scope 248

Inspection  Compare the baseline specifications, schedules, and budgets to actual project costs.  Determine the likelihood that remaining deliverables will be completed as projected.  Identify actions needed to ensure work results will meet specifications, scope, schedule, and budget goals. 249

Reviewing Deliverables and Work Results  Prepare for scope verification inspection.  Conduct an inspection to review deliverables and work results.  Prepare an inspection report.  Provide the report to key stakeholders.  Distribute formal acceptance documentation to project stakeholders according to the communications management plan. 250

251 Scope Control 251

Controlling Project Scope  Develop and implement a scope change control system.  Evaluate change requests.  Identify and document corrective actions to bring expected future performance in line with planned performance.  Ensure formal agreements are reached and new specifications detailed when project scope is expanded.  Revise cost, schedule, or quality baselines to reflect changes, if necessary.  Use performance measurement techniques to monitor changes.  Document lessons learned. 252

Reflective Questions 1. How have you prepared for a scope verification inspection? Were your efforts successful? Why or why not? 2. Are project control processes in your organization effective? Why or why not? How can they be improved? 253

Monitoring and Controlling Project Schedule and Costs  Control the Project Schedule  Control Project Costs 254

255 Schedule Control 255

EVM Equations MeasurementEquation Schedule varianceSV = EV - PV Schedule performance indexSPI = EV / PV Cost varianceCV = EV – AC Cost performance indexCPI = EV / AC 256

Playground Construction Gantt Chart Activity Est. Cost A $6,000 B C D E F $50,000 $12,000 $16,000 $25,000 $10,000 1 2 3 4 5 6 7 8 Reporting Periods Status to Date Planned duration Actual work completed to date 257

258 Software Development Gantt Chart Status to Date ActivityStatus A F B C D E F F F NF NS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Float Weeks F NF NS = Finished = Not Finished = Not Started Scheduled duration Actual duration 258

259 Schedule Control Chart 1 2 3 4 5 6 7 8 Schedule Status Ahead of Schedule 0 Behind Schedule Duration Units Reporting Periods 259

260 Schedule Variance VariableDescription SV The measured difference between the planned or scheduled completion of an activity and the actual completion of that activity. EV The composite measurement of both actual cost and time performance in relation to scheduled or planned cost and time performance. PV The budgeted portion of the approved cost estimate to be spent during a specific time period to complete the scheduled work. SV = EV – PV 260

261 Normal SPI Curve 1 2 3 4 5 6 7 8 Schedule Status SPI 1.0 Reporting Periods 261

262 Potential SPI Curve for Construction Project 1 2 3 4 5 6 7 8 Schedule Status SPI 1.0 Reporting Periods 262

Controlling the Project Schedule  Develop and implement a schedule change control system.  Evaluate change requests.  Use performance measurement techniques to monitor changes and compare actual schedule performance to planned performance.  Analyze the results of your performance measurements.  Identify and document corrective actions taken to bring expected future project schedule performance in line with planned performance.  Revise cost, schedule, or quality baselines to reflect changes, if necessary.  Document lessons learned. 263

264 Cost Control 264

265 Graphic Performance Report 265

266 Performance Reviews TechniqueDescription Variance analysisComparing actual project performance to projected performance. Trend analysis Inspecting project performance over a period of time to determine if performance is increasing or decreasing. Earned value technique Comparing projected performance to actual performance. 266

267 Cost Variance (CV) 1 2 3 4 5 6 7 8 Status to Date Reporting Periods 500 400 300 200 100 $ (K) (AC ) (EV ) CV c c 267

268 Cost Performance Index (CPI) 1 2 3 4 5 6 7 8 Schedule Status CPI 1.0 Reporting Periods 268

269 EAC Common FormulasDescription EAC = AC + ETC This method requires making a new estimate to complete (ETC) all remaining project work and adding that estimate to the actual costs (AC) incurred to date. EAC = AC + BAC - EV This method uses the sum of the actual costs (AC) to date and the budget at completion (BAC) minus the earned value (EV) of work completed to date. EAC = (AC +(BAC- EV)/CPI) This method involves adding the actual costs (AC) to the difference of the budget at completion (BAC) and the earned value (EV) and then dividing that value by the cumulative cost performance index (CPI). 269

Controlling Project Costs  Develop and implement a cost change control system.  Evaluate change requests.  Use performance measurement techniques to monitor changes and compare actual cost performance to planned performance.  Analyze the results of your performance measurements.  Identify and document corrective actions to take to bring expected future project cost performance in line with planned performance.  Revise cost, schedule, or quality baselines to reflect changes, if necessary.  Use performance measurement techniques.  Document lessons learned. 270

271 Cost Baseline Week Total Budgeted Cost (K) 12345678910 Conduct Planning Meetings62121 Arrange Location734 Arrange Staffing523 Publicize Event711113 Hold Event33 Total285424131233 Cumulative591115161920222528 271

Reflective Questions 1. What performance measurement techniques have you used to measure schedule performance? What did those measurements tell you about the schedule performance? 2. How could using earned value management help you to control project costs on future projects? 272

Monitoring and Controlling Project Quality, Staffing, and Communications  Perform Quality Control  Manage Project Team  Report Project Performance  Manage Stakeholders 273

274 Perform Quality Control 274

Variability Above the Upper Control Limit (UCL) UCL Indicates Instability LCL UCL LCL XX 275

276 Variability Below the Lower Control Limit (LCL) UCL Indicates Instability LCL UCL LCL XX 276

277 Pareto Diagram Example Causes of Failure 100% 60% 80% 40% 0% 20% 400 240 320 160 0 80 ABCDE # Failures Cumulative Percentage of Failures 277

Statistical Sampling  Attributes sampling data is data that is counted.  Number of employees participating in profit sharing.  Number of customer complaint calls.  Number of returned items.  Variables sampling data is data measured on a continuous scale.  Time  Temperature  Weight 278

Performing Quality Control  Conduct inspections to detect quality errors as work results are produced.  Use Pareto diagrams to focus corrective actions on the problems having the greatest overall effect on quality performance.  Use control charts to analyze and communicate the variability of a process or project activity over time.  Identify ways to eliminate causes of unsatisfactory results to minimize rework.  Initiate process adjustments.  Continue to monitor, measure, and adjust quality throughout the project life cycle. 279

280 Control Communications 280

Reflective Questions 1. What quality control methods have you used on projects that you have managed? Were they effective? Why or why not? 2. What types of performance reports have you prepared? Were they effective for the audience and information being reported? Why or why not? 281

Monitoring and Controlling Project Risk and Contracts  Monitor and Control Project Risk  Administer a Contract 282

283 Risk Monitoring and Control 283

Monitoring and Controlling Project Risk  Consult the risk response plan to identify risks and triggers.  Monitor the environment for any new risks.  Monitor the effectiveness of the risk response, contingency, and fallback plans.  Deal with unforeseen risks by systematically planning a reasoned response.  Update project documentation as changes are indicated.  Manage the contingency reserve. 284

285 Control Procurements 285

Contract Change Requests ChangeDescription Administrative These are the non-substantive and most common changes to the way the contract is administered. Contract modification This is a substantive change to the contract requirements such as a new deadline or a change to the product requirements. Supplemental agreement This is an additional agreement related to the contract but negotiated separately Constructive These are changes that the seller may have caused through action or inaction. Termination of contract A contract may be terminated due to seller default or for customer convenience. Defaults are typically due to non-performance such as late deliveries, poor quality, or non-performance of some or all project requirements. 286

Legal Issues  Warranties  Waivers  Contract breaches 287

Administering a Contract  Index and store all contract correspondence for ease of retrieval.  Develop and implement an effective contract change control system.  Evaluate the risk of each contract change request.  Document all contract changes and incorporate any effects of the changes into the project plan.  Develop and implement an effective performance reporting system.  Set performance milestones to monitor project progress.  Address performance reporting specifications imposed on the seller in the contract.  Conduct site visits to determine how the seller’s work is progressing.  Submit approved invoices for payment. 288

Control Stakeholder Engagement

Closing the Project  Close a Project or Phase  Close Procurements 290

291 Close Procurements 291

Procurement Audit  Did the supplier complete the work as specified?  Were all terms and conditions of the contract met?  Were the quality, cost, and timeliness of the supplier’s work acceptable?  Was the supplier able to accommodate requested changes?  How well did the supplier’s staff work with yours?  Was their ample and effective communication?  What lessons were learned from this contract? 292

293 Close Project or Phase 293

Closing the Project  Gather and organize performance measurement documentation.  Release project resources.  Update records.  Analyze project success and effectiveness.  Prepare a final project report.  Obtain project approval from customer.  Archive indexed project records.  Celebrate the success of the project. 294

Closing a Contract  Ensure the supplier has provided all required products or services.  Ensure any buyer-furnished property or information was returned.  Settle any outstanding contract issues.  Conduct a procurement audit to evaluate the supplier’s performance.  Address any outstanding invoices and payments.  Archive complete contract file with the project archives.  Provide the seller with formal written notice that the contract has been completed. 295

Reflective Questions 1. In your experience, which aspect of closing a project have you found to be the most challenging? Why? 2. What tools and techniques could you use to effectively close future projects you manage? Explain. 296

PMP Preparation Class. Course Outline  Initiating a Project  Planning Project Work  Developing Project Schedules, Cost Estimates, and Budgets  Planning.

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PMP Preparation Class. Course Outline  Initiating a Project  Planning Project Work  Developing Project Schedules, Cost Estimates, and Budgets  Planning.

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Presentation on theme: "PMP Preparation Class. Course Outline  Initiating a Project  Planning Project Work  Developing Project Schedules, Cost Estimates, and Budgets  Planning."— Presentation transcript:

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