project management professional (pmp_) mps-unascapacitalumno2

7/30/2019 Project Management Professional (PMP_) MPS-UNASCAPACITalumno2

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Subprojects

An independently manageable component of an existing project.

Can have smaller subprojects.

Subprojects can be contracted:

External enterprise.

Another functional unit in the organization.

Example: Creating interior design for a solar powered car.

Subprojects contracted to vendors:

Designing of seats.

Air-conditioning system.

Lesson 1 - Topic A: Identify Project Management Processes

Ing. Moises Palomino Suarez

Project Management

The application ofknowledge, skills, tools, and techniques to

project activities to meet project requirements. (According to the PMI)

Managing projects typically involves:

1. Scheduling.

2. Identifying requirements.

3. Establishing objectives.

4. Balancing quality, scope, time, and cost.

5. Addressing the concerns and expectations of the

stakeholders.

Example: Project manager responsibilities include:

Communicate cross-functionally.

Managepeople who do not report directly.

Deliver the work on time, within specified budget and quality specifications.




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Programs and Portfol ios

A group of relatedprojects that have a common objective.

Offergreat control over constituent projects and deliver benefitsthat the organization can use to meet its goals.


Portfolio

A collection ofprojects, programs, and other workto achieve the strategic

business objectives of an organization.

Generally managed by a senior manager or senior management teams.

Programs


Project M anagement Offi ce (PMO)

A centralized, permanent, ongoing administrative unit of a

department that serves to improveproject management performancewithin an organization.

Example: Newspaper chain needs to decrease costs.

PMO introduced standardized processes for:A)Calculating, leveling, loading, and developingproject budgets.

B)Updatingproject schedules.

C)Developingproject data references.

D)Organizingbest practices sharing sessions.




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Project Management Processes

All the activities that underlie the effective practice of projectmanagement.

Producesproject and product deliverables.

The project management processes



Project Management I nputs, Tools and Techni ques, and

Outputs

The relationship between project management inputs, tools and techniques, and outputs

Project management processes are implemented through inputs, tools and

techniques, and outputs.




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Enterpri se Envi ronmental Factors

Internal or external factors.

Havepositive or negative influence on projects. Support or limit the project management options.

Examples include:

Organizational culture.

The human resources pool.

Marketplace conditions.

Stakeholder risk tolerances.

Political situations.

Project management information systems.



Organizational Process Assets

Assets that influence project success.

Examples include:

Policies.

Procedures.

Guidelines.

Formal and informal plans.

Lessons learned documents.

Historical information.

Completed schedules.

Earned value data.

Risk data.

Two categories of organizational process assets:

Processes and procedures.

Corporate knowledge base.




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Interpersonal Skills

Ability to work harmoniously and efficiently.

Interpersonal skills include:

Leadership.

Team building.

Motivation.

Communication.

Influencing.

Decision making.

Political and cultural awareness - Ccia.

Negotiation.

Lesson 1 - Topic C: Identify the Interpersonal Skills for a Project Manager


Leadership Skills Ability to guide and inspire others to achieve results.

Ability to lead include:

Learning from one's mistakes.

Building relationships.

Taking initiatives.

Inspiring others through positive influence.

Establish rapport, enhance credibility, and gain others' trust.

Leadership capabilities are critical at the beginning of a project or phase.

Effectively communicate the vision.

Motivate and inspire team members for higher project performance.


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Communication Skil ls

Ensure everyone is kept informed, knows exactly what to do, and has all of

the information to do their jobs. Clear expression of ideas.

Effective communication is the ability to:

Motivate.

Delegate.

Organize.

Solve problems.

Obtain information.

Use effective listening techniques to:

Manage conflicts. Take appropriate decisions.

Provide suitable solutions.



Decision Making Skil ls

Decisions are the result of collaboration and negotiation.

Establish credibility to affect the decision-making process.

Employ sound decision making skills.

Engage in active collaboration.

Foster critical thinking when interacting with project team.




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The Project Management Framework (Cont.)

Knowledge Areas Project Management Process Groups

InitiatingProcess Group

Planning

Process Group

Executing

Process Group

Monitoring &Controlling

Process Group

ClosingProcess Group

Project HumanResourceManagement

Develop Human Resource Plan Acquire Project Team

Develop Project Team

Manage Project Team

ProjectCommunicationsManagement

IdentifyStakeholders

Plan Communicat ions Distribute Informat ion

Manage StakeholderExpectations

ReportPerformance

Project RiskManagement

Plan Risk Management

Identify Risks

Perform Qualitative RiskAnalysis

Perform Quantitative RiskAnalysis

Plan Risk Responses

Monitor andControl Risks

ProjectProcurementManagement

Plan Procurements Conduct Procurements Administer Procurements

CloseProcurements

Lesson 2 - Topic A: Examine the Project Management Context.


Relationships Among Project, Program, and

Portfolio Management

Projects are generally managed through programs and portfolios.

Projects are at the lowest level, programs in the next level, andportfolios at the top of the hierarchy.

Information flows from higher to lower levels during initial phases and

from lower to higher levels during later phases.

Relationships among individual projects and programs and portfolios

are interrelated with the organizational strategies and priorities.

Lesson 2 - Topic A: Examine the Project Management Context.



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Project Selection Criteria

The act of choosing a project from among competing proposals.

Example: Integrating customer and financial databases.

Criteria include:

Links to the strategic goal of increased technological advantage.

Can be produced using only internal resources.

Meets goal of increasing new sales revenue by 10%.

Lesson 2 - Topic B: Examine Project Selection


Project Selection Methods

Any systematic approach used to analyze the value of a proposed project

in orderto choose among competing proposals.

Example: Opportunity to implement two new projects but has resources

for only one by the end of a fiscal year.

Prioritization based on:

A. Projected cost analysis.

B. Projected duration analysis.

C. Projected financial benefits analysis.




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Scoring and Rating Systems

Use mathematical modeling to find the best available solution or outcome.

System Description

Decision tree Selection criteria arranged along the branches of a tree flowchart.

Criteria profiling Project criteria are scored for comparison.

Weighted factor Different criteria may be weighted and scored for comparison

Q-sorting Groups of people rate the relative priority of a number of projects.

Delphi technique Experts are located remotely and remain anonymous, yet participate ingroup decision making. Consensus is achieved through group ranking.



Feasibility Analysis An analysis that provides technical and operational data to management to

make a decision about project selection.

Includes:

Problem description.

Summary of historical data.

Evaluation of available technologies.

Evaluation of organizations technical capabilities.

Cost and time estimates.

Assumptions and constraints. Recommendations.

Statement of project goals and milestones.




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Cost-Benefit Analysis

A comparison ofthe estimated costs versus the predicted benefits of a

project. Helps decision makers make informed choices about project selection.

Example: Increased e-commerce capability for retail organization.

The rough cost estimates are:

Predicted cost = $25K in the next five years.

Predicted increase in sales: 5% of $1 million = $50K.

Predicted net benefit = $25K.



A document that:

Describes the products or services that the project will supply.

Defines the business need that it is designed to meet.

Specifies the work that will be done during the project.

Project statement of work for the OGC PM Training Roll-Out project

Lesson 2 - Topic C: Prepare a Project Statement of Work.

Project Statements of Work (SOW)



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Business Requirements

Pressing organizational needs or market stimuli that drive decision makers

to sponsor projects and to prioritize competing projects.

Example: Business forces.

Business requirements may include forces such as:

Market demands

Organizational needs

Customer requests

Technological advances

Legal requirements

Social needs



How to Prepare a Project Statement of WorkGuidelines

Review the product description.

Consult technical experts.

Determine appropriate SOW format.

Present the information in a logical sequence.

Use consistent terminology and level of detail throughout the SOW.

Determine if collateral services are required.

Determine the acceptable criteria.

Make sure the SOW includes key elements such as resource requirements /

estimated hours of work.

Ensure that the SOW is complete, correct, and understandable.




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A document that provides a clear, concise description of the

business needs that the project is intended to address.

Project charter for the OGC PM Training Roll-Out project

Lesson 2 - Topic D: Create a Project Charter.

Project Charter


The Develop Project Charter Process

Helps formally launch and authorize a new project or to authorize an existing

project to continue into its next phase.




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Business Case

A document that:

A. Justifies investments ($) made for a project.B. Describes how a particular investment is in accordance to the

organization's policy.

Example: Business case for a geothermal energy project.

The business case includes:

I. Technical, investment, and regulatory factors influencing the project.

II. Cost estimates to justify the investments made for the project.



Business Case Components

System Description

Business need Substantiates ( ) the business reason for conducting the project.

Project contribution Determines the project's contribution toward (->)the organization'sobjectives.

Stakeholders Lists the project stakeholders, their expectations, and contribution towardthe project.

Constraints Compiles the limitations of the project.

Strategic risks Lists the risks that the project may face and the possible risk managementmeasures.

Benefits evaluation Analyzes and outlines the key benefits to be obtained.

Project roles Lists the members of the project team and their respective job roles in theproject.

Benefits realization plan Provides an outline of the benefits realization plan.

Contingency plan Outlines the alternate solutions for unplanned accidents.




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Stakeholder Analysis

The formal process ofidentifying all of the stakeholders of a project.

The stakeholder analysis process

Lesson 2 - Topic E: Identify Project Stakeholders.


Stakeholder Register A document that identifies stakeholders of a project with information that

includes their identification, assessment, and stakeholder classification.

Stakeholder register for the OGC PM Training Roll-Out project




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The Stakeholder Analysis Matrix

A document that describes the strategies to manage the stakeholders of a

project.

A template for the stakeholder analysis matrix

Stakeholder Stakeholder Interest(s) Assessment of Impact Potential Strategies


Stakeholder Management Strategy

A management strategy that is created to ensure maximum support and to

minimize the negative impacts of stakeholders throughout the entire project

life cycle.

A typical stakeholder management strategy document can include:

Stakeholder identification.

Stakeholder map.

Stakeholder analysis influence and importance matrix.

Stakeholder list.

Stakeholder communication. Communication efficiency.




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Lesson 3: Planning Project Work

Topic A: Identify the Elements of a ProjectManagement Plan

Topic B: Document Stakeholder Requirements

Topic C: Create a Scope Statement

Topic D: Develop a Work Breakdown Structure (WBS)


Project Management Framework

Knowledge Areas

Project Management Process Groups

Initiating Process

Group

Planning

Process Group

Executing

Process Group

Monitoring &

Controlling Process

Group

Closing Process

Group

Project IntegrationManagement

Develop Project

Charter

Develop Project

Management Plan

Direct and Manage

Project Execution

Monitor and Control

Project Work

Perform Integrated

Change Control

Close Project or

Phase

Project ScopeManagement

Collect Requirements

Define Scope

Create WBS

Verify Scope

Control Scope

Project TimeManagement

Define ActivitiesSequence Activities

Estimate Activity

Resources

Estimate Activity

Durations

Develop Schedule

Control Schedule

Project CostManagement

Estimate Costs

Determine BudgetControl Costs

Project QualityManagement Plan Quality

Perform Quality

Assurance

Perform Quality

Control



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Project Management Framework (Cont.)






Knowledge Areas

Monitor and

Control Risks


Identify Risks

Perform Qualitative Risk

Analysis

Perform Quantitative Risk

Analysis

Plan Risk Responses

Report

Performance

Distribute Information

Manage Stakeholder

Expectations

Plan CommunicationsIdentify

Stakeholders

Acquire Project Team


Manage Project Team

Develop Human Resource Plan

Administer

Procurements


Process Group

Plan Procurements

Planning

Process Group

Conduct Procurements

Executing

Process Group


Close

Procurements



Includes:

Processes, tools, techniques, tasks.

Change and configuration management plans.

Performance measurement baselines.

Stakeholder communication.

Project life cycle.

Plan for issues. (??)

Example: Supermarket chain Processes and tools for reducing checkout line time.

Hiring, checkout expansion, change control board.

Manager meetings, plan for open issues.

Cost management plan, quality assurance management plan.

Lesson 3 - Topic A: Identify the Elements of a Project Management Plan.

The Project Management Plan



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The Collect Requi rements Process

Project manager defines and documents the stakeholders' needs

and expectations to meet project objectives.

Lesson 3 - Topic B: Document Stakeholder Requirements.


Facil i tated Workshops

Are group sessions that:

Bring together key multidisciplinary or cross functional stakeholders.

Define the project or product requirements for the project.

Example: Conducting facilitated workshops for OGC's Warehouse

Management Software project.

Stakeholders include:

Staff of the Process Development and Implementation department.

Key project managers. Administration personnel.

Key PMO staff.

Chief of the Business Transformation team.

Discussions highlight the stakeholder differences.

Enables reconciliation of the stakeholder differences.




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Requirements Documentation

Describes how individual requirements meet the business

requirements of the project. The requirements documented must be:

Unambiguous

Traceable

Complete

Consistent

Acceptable to key stakeholders



Requirements Documentation (Cont.)

A sample requirements documentation




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Requirements Management Plans

A plan that describes how the project requirements throughout the

project life cycle will be: Analyzed.

Documented.

Managed.

Phase-to-phase relationships between various phases strongly

influence how requirements are managed.

Components of the plan include:

Methods to plan, track, and report requirement activities.

Configuration management related activities.

Process for requirements prioritization.

Project or product related metrics. Traceability matrix for requirements.

Example: Requirements management plan for OGC's Warehouse

Management Software project.



The Requir ements Traceabili ty Matrix

A tabular document that links the project or product requirements to

their origin and traces them throughout the project life cycle.

Links each requirement to the:

Business and project objectives.

WBS.

Product design and development.

Test scenarios.




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The Requir ements Traceabili ty Matrix (Cont.)

A sample requirements traceability matrix



The Proj ect Scope Statement

Defines the project and what it does and does not need to accomplish.

Created at an early stage in the project.

Reflects the stakeholders common understanding of major activities

to be performed.

Typically includes:

Project objectives, deliverables, and requirements.

Project constraints and assumptions.

Product acceptance criteria.

Lesson 3 - Topic C: Create a Scope Statement.



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The Project Scope Statement (Cont.)

A sample project scope statement



Components of the Scope Statement

Content Description

Project objectives The measurable success criteria for the project.

Product descriptionThe characteristics of the product, service, or result of the project

undertaken.

Project requirements The conditions or capabilities the deliverables of the project must meet.

Project deliverablesAny tangible, measurable result or outcome required to complete a

project or portion of a project.

Project boundaries The parameters of what is and what is not included within a project.

Product acceptance

criteria

The process and criteria for accepting finished products or services

resulting from a project.

Project constraints Factors that limit the way that the project can be approached.

Project assumptionsStatements that must be taken to be true in order for the planning to

begin.




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The Define Scope Process

The project manager defines the scope of the project and finalizes a

project scope statement. Scope definitions are shaped (part) by the deliverables, assumptions, and

constraints that are documented during project initiation.



Techniques for Al ternatives Identi fi cation

Methods for generating as many alternative solutions and plans as

possible during project planning.

Technique Description

Lateral thinkingA 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. The goal

is to generate as many ideas as possible from as many team members aspossible.

Delphi techniqueA group technique that extracts and summarizes anonymous group input to

choose among various alternatives.




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Work Br eakdown Structures (WBS)

Helps to identify deliverables

Subdivides

project

work into

smaller

pieces

Maps to

project

scope

statement

Lesson 3 - Topic D: Develop a Work Breakdown Structure.


The Create WBS Process

The method of dividing the project deliverables into smaller, more

manageable components.

Helps create a deliverable-oriented hierarchical decomposition of

work to be executed by the project team.

Lesson 3 - Topic D: Develop a Work Breakdown Structure.



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Lesson 4: Developing Project

Schedules

Topic A: Create an Activity List

Topic B: Create a Project Schedule Network Diagram

Topic C: Estimate Activity Resources

Topic D: Estimate Duration for Project Activities

Topic E: Develop a Project Schedule

Topic F: Identify the Critical Path

Topic G: Optimize the Project Schedule Topic H: Establish a Schedule Baseline


The Project Management Framework

Knowledge Areas


Initiating Process

Group

Planning

Process Group

Executing

Process Group

Monitoring &

Controlling Process

Group

Closing Process

Group


Develop Project

Charter

Develop Project

Management Plan

Direct and Manage

Project Execution

Monitor and Control

Project Work

Perform Integrated

Change Control

Close Project or

Phase



Define Scope

Create WBS

Verify Scope

Control Scope



Estimate Activity

Resources

Estimate Activity

Durations

Develop Schedule

Control Schedule


Estimate Costs



Perform Quality

Assurance

Perform Quality

Control

Lesson 4 - Topic A: Create an Activity List.



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Knowledge Areas

Monitor and

Control Risks


Identify Risks


Analysis


Analysis

Plan Risk Responses

Report

Performance


Manage Stakeholder

Expectations


Stakeholders



Manage Project Team


Administer

Procurements


Process Group

Plan Procurements

Planning

Process Group


Executing

Process Group


Close

Procurements




Activ i t ies

Element of project work that requires an action to produce a

deliverable.

Have an expected duration.

Consume budget and/or human resources.

Are named in verb-noun format.

Example: Activities in a company project.

Revise user manual.

Make a sales presentation.

Reserve conference room. Revise user manualExpected duration determined by (whatever)

Verb (Action) Noun (Deliverable)




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Work Package

Planned work or deliverables.

Lowest-level component of the work breakdown structure. Cost and schedule can be easily estimated.

A work breakdown structure showing the work packages



The 8/80 Rule

A general guideline regarding work packages: they require more

than 8, but fewer than 80, hours of effort to complete.

Helps project managers create work package lists.




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The Define Activi ties Process

The process of identifying and documenting specific activities that must be

performed to produce the project's deliverables.



How to Defi ne Activi ties

Guidelines

Gather the inputs and materials you need.

Analyze and decompose each work package of the WBS into activities

that will be required to produce the deliverable.

Consult records of similar projects to identify possible activities.

Consult subject matter experts about unfamiliar material.

Evaluate all constraints and assumptions for their possible impact on

activity definition.

Evaluate the activity list, once each work package is decomposed to

activities.

Example: Web design company creating an activity list for design

work package.




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Completed WBS Table



The Sequence Activities Process

A planning process that involves identifying and documenting interactivity

dependencies among project activities for the purpose of creating the

project schedule.

Lesson 4 - Topic B: Create a Project Schedule Network Diagram.



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Acti vity Dependencies

A logical relationship that exists between two project activities.

Example: An architects vision for room layouts.

Functionality of the design:

a) Framed structure.

b) Walls, windows, roof.

Structure in place:

a) Reassess the plans.

b) Determine modifications.



Types of Activi ty Dependencies

Dependency Description

Mandatory Inherent to the work itself and are usually affected by physical constraints.

Discretionary Defined by the project and project management team at their discretion.

External Contingent on inputs from outside the project activit ies.




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Precedence Relationship

The logical relationship between two activities that describes the

sequence in which the activities should be carried out.

Example: Drywall installation must finish before painting can

begin.



Precedence Relationship Types

Relationship Description

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.




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Lag

A delay in the start of a successor activity.

FS relationship with lag



Lead

A change in a logical relationship that allows the successor activity

to start before the predecessor activity ends in an FS relationship.

Implemented when a successor activity needs to be accelerated in

order to shorten the overall project schedule.

FS relationship with lead




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Project Schedule Network Diagrams

Graphical representation of the sequence of project activities and the

dependencies among them. Read from left to right or top to bottom.

May include the entire project or specific parts of it.

A project schedule network diagram



Precedence Diagramming M ethod (PDM )

Produces a project schedule network diagram that uses rectangular boxes,

or nodes, to represent activities and arrows to represent precedence

relationships between activities.

Characteristics:

Reads from left to right.

Shows duration in nodes.

Created manually or with software.

Report a group of related activities as an aggregate activity.

Use all precedence relationship types.




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How to Create a Project Schedule Network

Diagram

To create a PDM project schedule network diagram:

Determine the dependencies among project activities using youractivity list and product descriptions.

Identify predecessor and successor activities.

Create nodes for all activities with no predecessor activities or

dependencies.

Create nodes for all activities that are successor activities.

Draw arrows from the predecessor activities to the successor activities.

Continue drawing the network diagram, working from left to right until all

activities are included on the diagram and the precedence relationships are

indicated by arrows.

Include any known lags or leads.

Verify the accuracy of your diagram.



Completed Network Diagram




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Project Resources

Any useful material object or person needed for project completion.

Include labor, materials, facilities, equipment, consultants, services,supplies, and utilities.

Example: Resources for a health and wellness seminar project.

Conference room.

Brochures, pamphlets, other materials.

Visiting consultants.

Vendors.



The Estimate Activity Resources Process

Involves determining specific resources necessary for completing project

activities.

Lesson 4 - Topic C: Estimate Activity Resources.



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How to Est im ate Act iv i ty Resourc es

Guidelines

Determine what resources are necessary.

Determine what quantity of resources are necessary.

Generate possible alternatives for unavailable resources.

Analyze the scope statement to ensure youve identified all the

resources.

Consider organizational policies that could affect resource acquisition

and usage.

Identify and use expert judgement resources.

Analyze the resources already available.

Lesson 4 - Topic C: Estimate Activity Resources.


The Estimate Acti vity Durations Process

The act of estimating the quantity of work that is required to complete

individual project activities using the available resources.

Lesson 4 - Topic D: Estimate Duration for Project Activities.



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How to Est imate Durat ion for Project Act iv i t ies

Guidelines

Involve the work package owners.

Consult historical information.

Determine how you want to quantify the work.

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.

Example: Activity estimates for creating website include design work,

resources, and work units.

Lesson 4 - Topic D: Estimate Duration for Project Activities.


Project Schedules

The plan for starting and finishing activities on specific dates and in

a certain sequence.

Used to:

Coordinate activities into a master plan.

Track schedule performance.

A project schedule for a website design project (deliverable categories in bold)

Lesson 4 - Topic E: Develop a Project Schedule.



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The Develop Schedule Process

The act of defining specific start and end dates for each project activity.



Standard Schedule Diagramming Notations

Relationship Description

ES Early start. The earliest time an activity can s tart.

EF Early finish. The earliest time an act ivity can finish.

LF Late finish. The latest time an activity can finish.

LS Late start. The latest time an activity can start.

DUDuration. The number of work periods required for

completion of an activity.




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The Crit ical Path

Path with the longest total duration.

Has no scheduling flexibility.

1[6W] + 2[4W] + 4[3w] + 6[1W] = 14 Weeks

1[6W] + 3[5W] + 5[4w] + 6[1W] = 16 Weeks Critical Path

A network diagram showing the critical path of activities

Lesson 4 - Topic F: Identify the Critical Path.


Schedule Netwo rk Analysis

Technique used to calculate the theoretical early and late start and

finish dates for all project activities.

Four methods:

Critical Path Method (CPM).

Critical chain method.

What-if scenario.

Resource leveling.

Example: A marketing campaign schedule.

Involves:

Using software to create request for proposals.

Launching campaign.

Estimating slack.

Adjusting activities.




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The Crit ical Path Method (CPM)

A schedule network analysis method.

Uses sequential finish-to-start network logic. Calculates one early and late start and finish dates for each activity.

Uses a single duration estimate.

Critical path method involves calculating one early and late start and finish date for each activity



Schedule Formats

Bar chart:

Shows start and end dates, duration, order.

Can show precedence relationships.

Can show percentage completion; actual progress.

Used to present project status to management.

A bar chart




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Schedule Formats (Cont.)

Milestone chart:

Provides summary level view of projects milestones.

Uses icons or symbols.

Shows the projects overall schedule.

A milestone chart



Schedule Formats (Cont.)

Project schedule network diagram with dates:

Assigns start and finish dates to activities.

Communicates project status in terms of activity precedence relationships.

A project schedule network diagram with dates




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How to Develop a Project Schedule

To develop a draft project schedule:

Perform a mathematical analysis to determine the time periodswithin which activities could be scheduled once resource limits and

other known constraints are applied.

Evaluate the possible impact of any constraints and assumptions on

schedule development.

Consider the availability of your resources.

Consult project calendars and assign dates to activities.

Calculate possible project durations under different assumptions

using simulation.

Consider external resource date constraints, if applicable.

Select project management software that best meets the needs andbudget of your project.

Review rough drafts of the schedule with the project team, sponsor,

and customer.



How to Develop a Project Schedule (Cont.)

To develop a draft project schedule:

Choose the format in which youll publish the schedule.

Distribute the preliminary schedule to all program office personnel,

functional team members, functional management, and the

customer or sponsor to obtain approval.

Following approval, baseline the schedule and distribute to the

team.

Example: Mathematical analysis to determine project schedulingactivities.




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Completed Project Schedule



Criti cal Activities

The activities on the critical path.

Have ES = LS and EF = LF.

Critical activities in a project

Critical Activities:

A, B, F, G, H




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How to Identi fy the Cri tical Path

To identify the critical path for a project with FS relationships:

1. Conduct a forward pass to determine ES and EF times for each activity.2. Perform a backward pass to determine LS and LF times for each.

3. Calculate float.

4. Identify the critical path as the path with the longest total duration and zero

float.



Schedule Compress ion

The shortening of the project schedule without affecting the project

scope.

Two methods:

Fast-tracking

Crashing

Example: Schedule compression for building and installing cabinets.

Involves carpenter and sub-contractor.

Sub-contractor installs cabinets while carpenter builds.

Changes precedence.




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Fast-Tracking

The process of compressing total project duration.

Perform sequential activities concurrently.

Example: Fast-tracking activities for launching a new product.

Product and user manual developed concurrently.

Project duration shortened.



Crashing

Analyzes cost and schedule trade-offs to determine how to obtain

the greatest amount of schedule compression for the least

incremental cost.

Involves allocating more resources to activities on the critical path.

Crash costs of a website project




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Crash Cost Plott ing Metho ds

Techniques for analyzing the crash costs through a graph or visual

representation.

Crash costs plotted on a graph



How to Optimi ze the Project Schedule

To compress the project schedule:

1. Consider your resource leveling options.

2. Consider fast-tracking the project.

3. Analyze activities on the critical path to determine if crashing the schedulewill produce a viable option.

4. Analyze each activity on the critical path to determine whether reducingscope is a viable option for reducing duration.

5. Recalculate the critical path after compressing the schedule.

6. Review any schedule changes with key stakeholders.

7. Revise the schedule and distribute to the team.

Example: Optimizing the schedule of a website design project.

Involves:

Drafting schedule compressed one week.

Analyzing critical path.

Fast-tracking activities.

Lesson 4 - Topic G: Optimize the Project Schedule.



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Criti cal Path Activity



Calculated Crash Costs Per Week




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Completed Crash Plot



Schedule Basel ines

The management-approved version of the project schedule.

Drawn from the schedule network analysis.

Provides basis for measuring and reporting schedule performance.

A chart showing a schedule baseline

Lesson 4 - Topic H: Establish a Schedule Baseline.



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Lesson 5: Developing Cost Estimates

and Budgets

Topic A: Estimate Project Costs

Topic B: Estimate the Cost Baseline

Topic C: Reconcile Funding and Costs



Knowledge Areas


Initiating Process

Group

Planning

Process Group

Executing

Process Group

Monitoring &

Controlling Process

Group

Closing Process

Group


Develop Project

Charter

Develop Project

Management Plan

Direct and Manage

Project Execution

Monitor and Control

Project Work

Perform Integrated

Change Control

Close Project or

Phase



Define Scope

Create WBS

Verify Scope

Control Scope



Estimate Activity

Resources

Estimate Activity

Durations

Develop Schedule

Control Schedule


Estimate Costs



Perform Quality

Assurance

Perform Quality

Control

Lesson 5 - Topic A: Estimate Project Costs.



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Knowledge Areas

Monitor and

Control Risks


Identify Risks


Analysis


Analysis

Plan Risk Responses

Report

Performance


Manage Stakeholder

Expectations


Stakeholders



Manage Project Team


Administer

Procurements


Process Group

Plan Procurements

Planning

Process Group


Executing

Process Group


Close

Procurements




The Est imate Costs Process

The process of projecting the total expenditures necessary for the

completion of your project.




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Common Estimate Types

Type or Level of Accuracy Description or Accuracy Rating

Rough Order of Magnitude

(ROM)

Developed without basis of detailed data and often based on very high level

historical data, expert judgment, or a costing model. Accuracy:

-50 percent to +100 percent.

Budgetary Often used for appropriation purposes. Accuracy: -10 to +25 percent.

Range of estimateOften used as an alternative to ROM where the accuracy of the estimate is

not well known. Accuracy: 35 percent.

Approximate estimateBased on more information than ROM estimates, but still lacks the detail

required for high accuracy. Accuracy: 15 percent.

Definitive estimate (or control

or detailed)

Developed by estimating the cost for each work package in the WBS.

Accuracy: - 5 percent to + 10 percent.

Phased estimate (or rollingwave or moving window) Allows the use of ROM or approximate estimates for some later parts of thework. Accuracy: 5 percent to 15 percent.



Analogous Est imat ing

A method of cost estimating.

Managers use experience, historical information, expert judgment.

Determines a total project cost or time estimate.

Apportions total across the major categories of work.

Used when:

Only a limited amount of detailed information is available.

Similar project is available for comparison.

Estimators have appropriate experience.

Example: A web design firm uses analogous estimating to produce

cost and time estimates for new accounts.




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Bottom-Up Estimating

Estimates the cost for each work package.

Estimates are then rolled up or aggregated. Used when:

More detail is available about the work packages.

More accurate estimates are needed.

There is time to invest in making the estimates.

Example: A caterer using the bottom-up estimating technique based on a

detailed WBS for a large corporate event.



Parametri c Estimating

A technique used to predict total project costs by using the project's

characteristics in a mathematical model.

Managers do a statistical analysis using historical information

about scope, cost, budget, and duration.

A sample parametric estimating




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The Determine Bu dget Process

The process of allocating the overall cost estimates to individual

activities or work packages across the project life cycle.

Lesson 5 - Topic B: Estimate the Cost Baseline.


Funding Limit Reconcili ation

A method of adjusting spending, scheduling, and resource allocation

in order to bring expenditures into alignment with budgetary

constraints.

Example: A customer wants to spread project costs over two quarters.

$250,000 during Q1.

$350,000 during Q2.

Q1: $250,000 Q2: $350,000




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Cost Assignment Methods

Cost Assignment Method Description

50/50 percent rule50 percent credit is given when the activity begins and 50 percent credit

is given when the work is completed.

Percentage completed ruleCompletion percentages are estimated and assessed at specified reporting

intervals. This is perhaps the most commonly used rule.

Weighted milestones

The total work package value is divided up and assigned to milestone

intervals within the work package. The value is earned when the

milestone is achieved.



How to Estimate the Cost Basel ine

To estimate a cost baseline:

1. Gather the inputs you will need, such as the WBS, project schedule, cost

estimates, and risk management plan.

2. Determine when activities will be taking place.

3. Allocate funds for each activity or work package for the time period in

which they will be taking place.

4. Consider adding in a contingency amount.

5. Total the costs for each time period.

6. Plot the costs on a chart to create an S-curve of the baseline.

7. Publish and distribute the cost baseline to the appropriate project

stakeholders.




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Topic A: Create a Quality Management Plan

Topic B: Document the Project Roles,

Responsibilities, and Reporting Relationships

Topic C: Create a Communications

Management Plan

Lesson 6: Planning Project Quality, Staffing, and

Communications



Knowledge Areas


Initiating Process

Group

Planning

Process Group

Executing

Process Group

Monitoring &

Controlling Process

Group

Closing Process

Group


Develop Project

Charter

Develop Project

Management Plan

Direct and Manage

Project Execution

Monitor and Control

Project Work

Perform Integrated

Change Control

Close Project or

Phase



Define Scope

Create WBS

Verify Scope

Control Scope



Estimate Activity

Resources

Estimate Activity

Durations

Develop Schedule

Control Schedule


Estimate Costs



Perform Quality

Assurance

Perform Quality

Control


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Quality Management Plans

Describe for the project stakeholders the teams approach to

implement the quality policy. Outline (esq) how quality control and quality assurance will be

performed.

Example: Clothing manufacturers labor cost reduction.

Quality management plan includes:

How quality control and assurance would be performed.

Who would be responsible for quality control.

How, when, and to what degree they would conduct inspections.

How the team would respond to quality issues.

Lesson 6 - Topic A: Create a Quality Management Plan.


The Plan Quality Process The process of putting plans into place to ensure that a project will satisfy

its stated objectives or business needs.




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Process Improvement Planning

The process of analyzing and identifying areas of improvement inproject processes.

Enumerating an action plan based on the project goals andidentified issues.

Involves: Describing operational theories and project roles and responsibilities.

Identifying long and short-term goals.

Describing process improvement objectives and activities.

Identifying risks and resource requirements.

Determining process improvement activities.

Creating a process improvement plan.

Receiving approval from stakeholders and senior managers. Executing the process improvement plan.



Process Improvement Plan

Describes the steps to analyze and determine areas ofimprovements in project process.

Areas of process improvements include:Process boundaries.

Process configuration.

Process metrics.Targets for improved performance.

Example: Reviewing the existing product testingprocess in a software

development company.




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The ISO 9000 Series

A quality system standard that is applicable toany product, service, or process in the world.

Developed by ISO, a consortium ofapproximately 100 of the worlds industrialnations.

Does not guarantee that an organization willproduce quality products or services.

Simply confirms that appropriate systems arein place.



Cost of Quality The total cost of effort needed to achieve an acceptable level of

quality in the projects product or service.

Different types of costs




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Checklists

A job aid that prompts employees to perform activities according to

a consistent quality standard.Obtain a printout of the image specifications from the graphics database. Use this

checklist to ensure that the images are ready to be handed off to the programmer.

# Item Y/N

1 Does the image match the description in the database?

2 Does the style meet the specifications for the course or lesson?

3 Does the quality of the image meet the standards set for the course?

4 Is the image size correct?

5 Is the correct border on the image?

6 Is the image in the correct palette?

7 Is the opacity correct (transparent or opaque)?

8 Is the bit-depth correct?

A checklist for printing image



Flowchart

A diagram that shows the relationships of

various elements in a system or process.

Two flowcharting techniques:

Cause-and-effect diagram.

Process or system flowchart.

Helps identify potential quality problems and

possible effects of the problems.




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Process Flowchart Shows the sequence of events and flow of inputs and outputs between

elements in a process or system.

Has a definite beginning and end.

A sample process flowchart



Cause-and-Effect Diagram A diagram that shows the relationships of various elements in a system or

process.

A cause-and-effect diagram




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Control Charts

UCL

Indicates Instability

LCL

UCL

LCL

X X

Variability above the upper control limit (UCL)

A graph used to analyze and communicate the variability of a process or

project activity over time. Shows the potential capability of the process.

Suggests the range of variability in the process.



Control Charts (Cont.)

UCL

Indicates Instability

LCL

UCL

LCL

X X

Variability below the lower control limit (LCL)




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Benchmarking

A method of addressing the evaluation of a groups business or

project practices in comparison to those of other groups. Used to identify best practices in order to meet or exceed them.

Example: Benchmarking the espresso-based beverages based on

the performance of Seattle-based Starbucks Corp.



Design of Experiments (DOE) A technique to systematically identify varying levels of independent

variables.

Example: Creating a new style of jar in a cannery.

Creation involves:

Determining the optimum torque size.

Testing torque with spindle speed and conveyor speed.

Determining adjustments to these settings.




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How to Create a Quality Management PlanGuidelines

Review the organizations quality policy and determine how yourproject team will implement the policy.

Review the product description to identify customer/stakeholderquality requirements.

Determine the cost of quality trade-offs.

Review the quality management plan.

Example: Creating a quality management plan by a project team.

Creation involves: Determining that a quality policy is available.

Assigning roles and responsibilities. Assigning project quality assurance coordinator.

Repeating the design process and peer plan reviews.



The Develop Human Resource Plan Process The process of identifying, documenting, and assigning project roles,

responsibilities, and reporting relationships.

Commonly performed during early project phases.

Lesson 6 - Topic B: Document the Project Roles, Responsibilities, and Reporting Relationships.



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Organizational Structures

Dictates how the various groups and individuals within an organization

interrelate.

CFO CIO

Department Head

VP HR

Employee

CEO

Employee

Employee

Department Head

Employee Employee

Employee

Department Head

A sample organizational structure



Organizational Structure Types

Item Y/N

Functional organization

Each department carries out specific activities.

Reporting is hierarchical.

PMs authority is low, relative to functional manager.

Projectized organization

PM and core project team operate as a separate

unit.

PM has significant authority and independence.

Matrix organization Individuals report upwards and also horizontally.

Composite organization Combination of all other types.




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Organization Chart A visual representation of the projects organizational structure.

Clearly assigns project tasks to team members.

A functional organization chart



Organization Chart (Cont.)

A projectized organization chart




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Organization Chart (Cont.)

A matrix organization chart



Relative Authority in Organizational Structures

The project managers authority relative to thefunctional managers authority over the projectand the project team.

Example: Companies with different organizationalstructures.

An auto manufacturing company with functionalorganizational structure and hierarchicalmanagement.

A web design company with projectizedorganizational structure.




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Project Interfaces

Various reporting relationships that occurwithin the project as well as the boundaries ofthe project.

Classified as:

Organizational

Technical

Interpersonal

LogisticalPolitical



Responsibility Assignment Matrix (RAM) A chart that links key project stakeholders to specific project deliverables or

activities by assigning responsibility to an individual stakeholder for each

element of work.

Project

Manager

Engineering

Manager

Quality

Assurance

Manager

Purchasing

Manager

Manufacturing

Manager

Create Blueprints S A P P

Manufacture

BreadboardS A P P

Test Breadboard S P A P

Order

ComponentsS P P A P

Assemble S P A

S = Sign-off

A = Accountable

P = Participant

A sample Responsibility Assignment Matrix




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Staffing Management Plan

Forecast what types of staff will work on the project, when they will

be needed, how they will be recruited onto the project, and whenthey will be released from the project.

Example: Writing a companys 100th anniversary book.

Staffing management plan includes:

External resources.

Internal resources with specialized knowledge.

Who would be needed.

When they would be needed.

What they would contribute.

How long they would participate.



Staffing Management Plan Components

Staff acquisition

Timetable

Release criteria

Training needs

Recognition and rewards

Compliance

Safety




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Communications Management Plan

Describes the project teams approach to communicate project

information.

Example: Communications management plan for a companys

annual meeting.

The plan includes:

Regularly scheduled status meetings.

Distribution of the meeting minutes.

Email distribution list.

All stakeholders and resources included on communications.

Lesson 6 - Topic C: Create a Communications Management Plan.


The Plan Communications Process The process of ensuring timely and appropriate generation, collection,

dissemination, storage, and ultimate disposition of project information.




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Communications Technologies

The technologies used for communications planning: websites, email,

instant messaging, phones, video conferencing.



Activity Form Responsible Frecuency Audiency

Team

tracking

Meeting Project Manager Weekly Team work

Project Manager

Analyst

Leader

Program

Leader

User

Expert

Programmers

Board

Analysts

How to Create a Communications Management Plan




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Knowledge Areas



Planning

Process Group

Executing

Process Group

Monitoring &

ControllingProcess Group



Develop Human Resource

Plan



Manage Project Team


Identify

StakeholdersPlan Communications

Distribute

Information

Manage Stakeholder

Expectations

Report

Performance



Identify Risks


Analysis

Perform Quantitative

Risk Analysis

Plan Risk Responses

Monitor and

Control Risks


Plan ProcurementsConduct

Procurements

Administer

Procurements

Close

Procurements


Risks

An uncertain event with positive or negative

impact.

Primary components include:

A measure of probability that the risk event will

occur.

The impact of the risk occurring on a project.

Example: The threat of rain is a risk when

planning an outdoor festival that could

seriously affect attendance and revenue.

Lesson 7 - Topic A: Examine a Risk Management Plan .



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High-level process with five sub-phases:

The project risk management process with the five main sub-phases

Project Risk ManagementLesson 7 - Topic A: Examine a Risk Management Plan .


Business risk:

Inherent in business.

All projects have potential for loss or profit.

Example: Purchasing inventory without guaranteed sales.

Insurable risk:

Only the potential for loss.

No potential for profit.

Insurance may be purchased to offset losses.

Example: Loss of inventory due to fire.

Business Risk vs. Insurable Risk




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Document that describes the teams approach to

identifying risks. Identifies methodology, approaches, and tools.

Documents roles and responsibilities.

Identifies budgeting and scheduling.

Identifies risk categories.

Example: Entrepreneurs seeking funding from venturecapitalists for building an amusement park.

Risk management plan will include:Losses due to employee theft as business risk.

Liabilities for park ride injuries as insurable risks.

Risk Management Plan



The Plan Risk Management ProcessThe process of deciding how to plan and execute

the risk management activities for a project.




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Impact Rating Impact Level Definition

1 Very lowIf this risk occurs, the impact on the projects objectives would

be minor and not noticeable outside the project.

3 LowIf this risk occurs, the impact on the projects objectives would

be minor but noticeable to customer or sponsor.

5 Moderate

If this risk occurs, the impact on the projects objectives would

be significant and would create customer or sponsor

dissatisfaction with the project.

7 High

If this risk occurs, the impact on the project would be

significant and would create major customer or sponsor

dissatisfaction. The project would be in jeopardy.

9 Very high If this risk occurs, the impact would be catastrophic.The project would be cancelled.

Impact Scales



Type Description

KnownItems 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 orhow much they will affect you.

Unknown-unknown Items beyond your ability to foresee.

Levels of Uncertainty




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Classification Description

Risk-averter Not likely to take a risk that is considered a high risk.

Risk-seekerAccepts an uncertain outcome and may be willing to take a high risk

regardless of the consequences.

Risk-neutral Tolerance to risk is proportional to the amount of money at stake.

Levels of Risk Tolerance



Early warning signs or indications that risk will occur.

External factors include:

Changes in the legislation.

Internal factors include:

Changes in staffing.

Changes in governance.

Changes in funding.

Example: For a documentary program production, a television writers strike

would be a trigger and involves positive and negative risks.

Triggers

Lesson 7 - Topic B: Identify Project Risks and Triggers .



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The Identify Risks Process

An iterative process of identifying the risksand triggers facing a project.



Technique Description

BrainstormingUsed to identify overall project risks or may focus in on the risks

within a particular project segment or work package.

Delphi techniqueGenerates 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 analysisUsed to identify problems, discover the root cause, and develop

corrective actions.

Information-Gathering Techniques




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Identifies and categorizes risks, potential risk responses, triggers.

Updated as risk categories change. Risk responses from the initial risk register are used in the risk

response planning process.

Updated risk register is provided to the project team members.

A sample risk register

Risk Registers



Risk Category Examples

Technical, quality, or

performance risks

Technical changes.

Changes to industry standards during the project.

Reliance on unproven or complex technology.

Unrealistic performance goals.

Project management risks

Inadequate time and resource allocation.

Ineffective project plan development.

Poor cost estimates.

Organizational risks

Resource conflicts with other projects.

Inadequate project funding.

Inconsistent management support.

External risks

Union issues.

Change of management in customers organization.

Regional security issues.

Risk Categories




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A technique to determine the probability ofoccurrence and the impact of identified risk.

Determine the risk exposure of the project bymultiplying the probability and impact.

Example: An event management companyplanning a jazz concert in a

particular coastal city where there is a threatof bad weather.

Qualitative Risk AnalysisLesson 7 - Topic C: Perform Qualitative Risk Analysis.


The Perform Qualitative Risk Analysis Process

The process of assessing, ranking, and

prioritizing risks for subsequent analysis.

Lesson 7 - Topic C: Perform Qualitative Risk Analysis.



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Evaluation of the usefulness of data concerning risk.

Examining data includes: Amount of data available.

Quality of data available.

Source of information.

Legitimacy of data.

Dependability of data. (trusted)

Example: Risk assessment performed for a restaurant chains new site

development.

Risk Data Quality Assessment

Lesson 7 - Topic C: Perform Qualitative Risk Analysis.


A simplified probability and impact risk rating matrix

Probability and Impact Risk