Units 2-11 Project management.ppt By Tol

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Unit 2: Project
Integration
Management

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The Key to Overall Project Success: Good
Project Integration Management
 Project managers must coordinate all of the other
knowledge areas throughout a project’s life cycle.
 Many new project managers have trouble looking at
the “big picture” and want to focus on too many
details (Jotor and Moses experience).
 Project integration management is the HEART of
project management and is made up of the day-to-day
processes the project manager relies on to ensure that
all of the parts of the project work together.

 Put simply, project integration management is
the way the gears of the project work
together.
 Within any project there are many moving
parts: time management, cost management,
schedule conflicts, human resource issues,
iterative planning, and much, much more.
 Project integration management is the art and
science of ensuring that your project moves
forward, and that your plan is fully developed
and properly implemented.
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 Project integration management requires
finesse /diplomacy
 It requires the ability to accomplish your
project plan.
 It requires leadership, record keeping, and
political know-how, given you’ll have to deal
with potential changes throughout your project
implementation.
 And, perhaps most importantly, it requires
flexibility and adaptability throughout the
project plan execution.
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Processes
2.1 Develop Project Charter—The process of developing a
document that formally authorizes the existence of a project
and provides the project manager with the authority to apply
organizational resources to project activities.
2.2 Develop Project Management Plan—The process of
defining, preparing, and coordinating all subsidiary plans and
integrating them into a comprehensive project management
plan. The project’s integrated baselines and subsidiary plans
may be included within the project management plan.
2.4 Direct and Manage Project Work—The process of leading
and performing the work defined in the project management
plan and implementing approved changes to achieve the
project’s objectives.

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Project Integration Management Processes (cont’d)
2.5 Monitor and Control Project Work—The process of
tracking, reviewing, and reporting project progress against
the performance objectives defined in the project
management plan.
2.6 Perform Integrated Change Control—The process of
reviewing all change requests; approving changes and
managing changes to deliverables, organizational process
assets, project documents, and the project management
plan; and communicating their disposition.
2.7 Close Project or Phase—The process of finalizing all
activities across all of the Project Management Process
Groups to formally complete the phase or project.

2.1 Develop Project Charter
Inputs:
 Project statement of work (product scope description, strategic plan:
strategic vision, goals, and objectives and a high-level mission
statement)
 Business case: a justification for the proposed project
 Agreements (Agreements are used to define initial intentions for a
project. Agreements may take the form of contracts, memorandum of
understanding (MOU), service level agreements (SLA), letter of
agreements, letters of intent, verbal agreements, email, or other written
agreements.
 Enterprise environmental factors (Governmental standards, industry
standards, or regulations e.g. codes of conduct, quality standards, or
worker protection standards; organizational culture and structure,)
 Organizational process assets (templates, historical information,
policies & process definition)
Tools and Techniques: Expert judgment and Facilitation techniques
(brainstorming, conflict resolution, problem solving)
Output: Project Charter
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Chartering the Project
 The project charter is the project’s “license to do
business.”
 It is the document that formally authorizes a project.
 Key project stakeholders should sign a project
charter to acknowledge agreement on the need and
intent of the project.
 The project charter provides the project manager with
the authority to apply organizational resources to
project activities.
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Components of a Charter
 Project purpose or justification,
 Measurable project objectives,
 High-level requirements,
 Assumptions and constraints,
 High-level project description and boundaries,
 Summary milestone schedule,
 Summary budget,
 Stakeholder list,
 Project approval requirements (i.e., what constitutes project
success, who decides the project is successful, and who signs off
on the project),
 Assigned project manager, responsibility, and authority level, and
 Name and authority of the sponsor or other person(s) authorizing
the project charter.
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2.2 Develop Project Management Plan
 Develop Project Management Plan is the process of
defining, preparing, and coordinating all subsidiary
plans and integrating them into a comprehensive
project management plan.
 The key benefit of this process is a central document
that defines the basis of all project work.
 A Project Management Plan is a document used to
coordinate all project planning documents and help
guide a project’s execution and control.
 Developing Project Management Plan process
includes the actions necessary to define, integrate,
and coordinate all subsidiary plans into project
management plan.
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Inputs:
a. Project Charter
b. Organizational Process Assets
c. Enterprise Environmental Factors
d. Outputs of Planning Processes
Tools:
 Expert Judgment and facilitation techniques
 Earned value management: a tool to integrate the
project scope, schedule, resource and to measure
and report project performance
 Project management methodology: any structured
approach to guide the project team, like scheduling
software
Output: The Project Management Plan 11

 Details of the decisions specified by the project
management plan team are as follows:
○ Project management processes selected by the project
management team,
○ Level of implementation for each selected process,
○ Descriptions of the tools and techniques to be used for
accomplishing those processes, and
○ Description of how the selected processes will be used
to manage the specific project, including the
dependencies and interactions among those processes
and the essential inputs and outputs.
 Description of how work will be executed to accomplish the
project objectives;
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 Change management plan that documents how
changes will be monitored and controlled;
 Description of how the integrity of the project
baselines will be maintained;
 Requirements and techniques for communication
among stakeholders; and
 Key management reviews for content, the extent
of, and timing to address, open issues and
pending decisions.
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Attributes of Project Plans
 Just as projects are unique, so are project plans.
 Plans should be:
◦ Dynamic
◦ Flexible
◦ Updated as changes occur
 Plans should first and foremost guide project
execution by helping the project manager lead the
project team and assess project status.

2.3 Direct and Manage Project
Execution
Inputs:
a. Approved Change Request
b. Project Management Plan
c. Enterprise Environmental Factors
d. Organizational Process assets
Tools:
a. Expert Judgment
b. Project Management Information System: tools used to gather,
integrate and disseminate the outputs of a project management
process
c. Meetings
Outputs:
a. Work Performance Data
b. Deliverables
c. Change Requests
d. Project Document Updates
e. Project Management Plan Updates 15

2.3 Direct and Manage Project Execution
 Direct and Manage Project Work is the process of leading and
performing the work defined in the project management plan and
implementing approved changes to achieve the project’s
objectives.
 The key benefit of this process is that it provides overall
management of the project work.
 Direct and Manage Project Work activities include, but are not
limited to:
• Perform activities to accomplish project objectives;
• Create project deliverables to meet the planned project work;
• Provide, train, and manage the team members assigned to
the project;
• Obtain, manage, and use resources including materials,
tools, equipment, and facilities;
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• Implement the planned methods and standards;
• Establish and manage project communication channels,
both external and internal to the project team;
• Generate work performance data, such as cost, schedule,
technical and quality progress, and status to facilitate
forecasting;
• Issue change requests and implement approved changes
into the project’s scope, plans, and environment;
• Manage risks and implement risk response activities;
• Manage sellers and suppliers;
• Manage stakeholders and their engagement; and
• Collect and document lessons learned and implement
approved process improvement activities.
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 The project manager, along with the project
management team, directs the performance of the
planed project activities, and manages the various
technical and organizational interfaces that exist within
the project.
 The direct and manage project execution processes is
most directly affected by the project application area.
 Deliverables are produced as outputs from the
processes performed to accomplish the project work
planed and scheduled in the project management plan.
 Work performance information about the completion
status of the deliverables, and what has been
accomplished, is collected as part of the project
execution and is fed into the performance reporting
process.
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 Direct and Manage Project Work also requires review of
the impact of all project changes and the implementation
of approved changes:
• Corrective action—An intentional activity that realigns the
performance of the project work with the project
management plan;
• Preventive action—An intentional activity that ensures the
future performance of the project work is aligned with the
project management plan; and/or
• Defect repair—An intentional activity to modify a
nonconforming product or product component.
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2.4 Monitor and control project work
 Monitor and Control Project Work is the process of
tracking, reviewing, and reporting the progress to meet the
performance objectives defined in the project management
plan.
 The key benefit of this process is that it allows
stakeholders to understand the current state of the project,
the steps taken, and budget, schedule, and scope
forecasts.
 Monitoring collecting, measuring and disseminating
performance information, and assessing measurements
and trends to effect process improvements.
 Continuous monitoring gives the project management
team insight into the health of the project, and identifies
any areas that can require special attention.
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2.4 Monitor and Control Project Work
Inputs:
a. Project Management Plan
b. Schedule Forecasts
c. Cost Forecasts
d. Validated Changes
e. Work Performance Information
f. Enterprise Environmental Factors
g. Organizational Process Assets
Tool: Expert Judgment, Analytical Techniques, PMIS, meetings
Outputs:
a. Change Requests
b. Work Performance Reports
c. Project Management Plan Updates
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 Perform Integrated Change Control is the process of
reviewing all change requests; approving changes and
managing changes to deliverables, organizational process
assets, project documents, and the project management
plan; and communicating their disposition.
 It reviews all requests for changes or modifications to
project documents, deliverables, baselines, or the project
management plan and approves or rejects the changes.
 The key benefit of this process is that it allows for
documented changes within the project to be considered in
an integrated fashion while reducing project risk, which
often arises from changes made without consideration to
the overall project objectives or plans.
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 Comparing actual project performance against the
project management plan and the baselines
indicated therein.
 Assessing performance to determine whether any
corrective or preventive actions are indicated, and
then recommending those actions are necessary
analyzing, tracking, and monitoring project risks to
make sure the risks are identified, their status is
reported, and that appropriate risk response plans
are being executed.
 Maintaining an accurate, timely information base
concerning the project’s product and their associated
documentation through the project completion
 Providing information to support status reporting,
progress measurements, and forecasting
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2.5 Perform Integrated Change Control
Inputs:
◦ Project management plan
◦ Work performance reports
◦ Change requests
◦ Enterprise environmental factors
◦ Organizational Process Assets
Tools: Expert Judgment, Meetings and Change Control
Tools
Outputs:
 Approved change requests
 Change log
 Project management plan updates
 Project documents updates
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2.6 Close project
Inputs:
 Project management plan
 Accepted deliverables
 Organizational process assets
Tool: Expert Judgment, Meetings, Analytical
Techniques
Outputs:
 Final product, service, or result transition
 Organizational process assets updates
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2.6 Close project
 The close project process involves performing the project
closure portion of the project management plan.
 In the multi-phase projects the close project process closes out
the portion of the project scope and associated activities
applicable to a given phase.
 This process includes finalizing all activities completed across
all project management process groups to formally close the
project or a project phase, And transfer the completed or
canceled project as appropriate.
 The close project process also establishes the procedures to
coordinate activities needed to verify and document the project
deliverables, to coordinate the interact to formalize acceptance
of those deliverables by the customer or sponsor, and to
investigate and document the reasons of actions taken if a
project is terminated before completion.
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2.6 Close project
 Two procedures are developed to establish the
interactions necessary to perform the closure activities
across the entire project or for the project phase.
 1.Administrative closure procedure. This procedures
details all the activities, interactions, and related roles and
responsibilities of the project team members and other
stakeholders involved in executing the administrative
closure procedures for the project
 Performing the administrative closure process also
includes the integrated activities needed to collect project
records, analyze project success or failure, gather lessons
learned, and archive project information for further use by
the organization.
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2.6 Close project
 2. Contract closure procedures. Includes all activities and
interactions needed to settle and close any contract agreement
established for the project, as well as define those related
activities supporting the formal administrative closure of the
project.
 This procedure involves both products verification (all work
completed correctly and satisfactorily) and administrative
closure (updating of contract records to reflect final result and
archiving that information for further use).
 The contract terms and conditions can also prescribe
specifications for contract closure that must be part of this
procedure.
 Early termination of a contract is a special case of contract
closure that could involve, for example, the inability to deliver
the product, a budget overrun, or lack required resources.
 This procedures is an input to the close contract process.
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Unit 3: Project Scope Management

Unit 3: Project Scope
Management
 Project scope management includes the processes
required to insure that the project includes all the
work required, and only the work required, to
complete the project successfully.
 Project scope management is primarily concerned
with defining and controlling what is and is not
included in the project.
3.1 Plan Scope Management
 It documents how the project scope will be defined,
validated, and controlled.
 The key benefit of this process is that it provides
guidance and direction on how scope will be
managed throughout the project life cycle.
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Management…
3.2 Collect Requirements- we find out all of the
stakeholders’ needs and write them down so that
we know what we build.
3.3 Define Scope- developing a detailed project scope
statement as the base for future project decisions.
3.4 Create WBS- subdividing the major project
deliverables and project work into smaller more
manageable components.
3.5 Control Scope - controlling changes to the project
scope. These processes interact with each other and
with processes in the other knowledge areas as well.
3.6 Validate Scope: The process of formalizing
acceptance of the completed project deliverables.
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Management…
In the project context, the term scope can refer to:
◦ Product scope- The features and functions that
characterize a product, service, or result
◦ Project scope- The work that needs to be
accomplished to deliver a product, service, or
result including the work that will not be done.
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3.1 Plan Scope Management
Inputs:
b. Project Charter
c. Enterprise Environmental factors
d. Organizational Process Assets
Tools:
a. Expert Judgment
b. Meetings
Outputs:
a. Scope Management Plan
b. Requirements Management Plan
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3.2 Collect Requirements
 Gathering requirements is all about sitting down with
all of the stakeholders for your project and working
out what their needs are, and that’s what you do in
the Collect Requirements process.
 If your project is going to be successful, you need
to know what it will take for all of your stakeholders to
agree that your project has met its goals.
 You need to have a good idea of what’s required of
your project up front, or you’ll have a tough time
knowing whether or not you’re doing a good job as
you go.
 That’s why you need to write down all of your project
and product requirements with enough detail that you
can measure your team’s progress.
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3.2 Collect Requirements
Inputs:
a. Stakeholder Management Plan
b. Project Charter
c. Requirements Management Plan
d. Stakeholder Management Plan: stakeholder comm.
requirements
e. Stakeholder Register
Tools
a. Interviews
b. Facilitated Workshops
c. Focus Groups Discussion
d. Group creativity techniques (brainstorming, nominal group
technique, mind/idea mapping, affinity diagram, multi-criteria
decision analysis)
e. Observation,
f. Surveys
Output: Requirements Documentation
Requirements Traceability Matrix
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3.2 Collect Requirements …
 In collecting requirements, we follow three steps:
a. You start with the stakeholders for your project.
They’ve a need that your project can meet
b. Next you figure out how these needs benefit your
company and write a business case for them
c. When you write down your requirements, you’re
saying exactly how these needs will be met.
 The requirements traceability matrix is a tool that
you use to trace each requirement back to a specific
business case, and then forward to the rest of the
scope deliverables (like specific WBS work packages),
as well as other parts of the project: the product
design (like specific levels) or test strategy (like test
plans).
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3.2 Collect Requirements …
 Explanation of the tools
a. Mind Maps: visualizing our ideas and developing a map
as to how we get there
b. Delphi Technique: letting everyone in the group give their
thoughts and let them hand the response to the
moderator. The groups are kept anonymous. We share
only thee ideas
c. Affinity Diagrams: posting ideas in walls and moving
them around in order to regroup them
d. Brainstorming: to think of new ideas
e. Nominal Group Technique: write the ideas as you find
them and have the group vote on which ones they like the
most. Use the vote to rank all of the ideas
f. Using Prototype: models of the product you want to
produce 37

3.3 Define Scope
 The Define Project Scope Process contains everything you
need to know before you can begin to break the project
down into the work that the team members will do.
Inputs
a. Project Charter
b. Requirements Document
c. Organizational Process Assets
Tools:
a. Facilitated Workshops:
b. Product Analysis: turn product elements to project work
c. Alternative Identification: to think of different ways how
to do the work
d. Expert Judgment: bring in an expert to help you figure
out what work needs to be done
Output: Scope Statement
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3.4 Create WBS
 The Create WBS process is the most important
process in the Scope Project Management
Knowledge are because it is where we actually figure out
all the work we’re going to do.
Inputs
a. Requirements Document
b. Project Scope Statement
c. Organizational Process Assets
Tool: Decomposition
Outputs
a. Work Breakdown Structure
b. Scope Baseline
c. WBS Dictionary
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3.4 Create WBS …
 WBS: shows the name of each work package. It is created
by decomposing large work products into work packages.
 A product-oriented, hierarchical structure that defines
all work required for the hardware, software, data services,
and process activities to be provided or performed by the
project.
 Each descending level represents an increasingly detailed
definition of a project component.
 WBS Dictionary: brings along all of the details we need to
do the project work. It is a description of each work
package listed in the WBS. It is a definition of the scope of
each WBS element
 Scope Baseline: is a snapshot of the plan we use to
compare against
 Project Document Updates: changes to the project
management plan and other project documents 40

WBS
 A WBS is the cornerstone of effective project
planning, execution, controlling, statusing, and
reporting.
 The WBS is the structure and code that integrates
and relates all project work (scope, schedule, and
cost). Therefore, the WBS contains the project’s
scope baseline necessary to achieve the technical
objectives of the work described.
 The WBS is used as a management tool throughout
the life cycle of a project to identify, assign, and track
its total work scope.
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3.4 Create WBS …
 Why Scope Changes?
Scope can change for several reasons
a. Good change: to make the product better: gold
plating
b. Bad change: due to scope creep
Scope creep: scope gets out of control
Gold plating: making something without talking over
with anybody thinking it would bring something
good.
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WBS - Purpose
 To plan a project, the total scope of work must
be:
◦ identified
◦ subdivided into manageable segments
◦ estimated,
◦ scheduled,
◦ budgeted
◦ assigned to individuals responsible to do the work
◦ documented

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WBS - Guidelines
 Should reflect how the Project Manager plans to
manage the project
 Emphasis must be on meeting project objectives
 The larger or more complex the project, the more
levels in the WBS
 If work is needed that requires effort or funding, it
should be included in the WBS
 It should reflect the total effort

WBS
 The project manager is to structure the project work into
WBS elements (work packages) that are:
 Definable—can be described and easily understood by
project participants.
 Manageable—a meaningful unit of work where specific
responsibility and authority can be assigned to a
responsible individual.
 Estimateable—duration can be estimated in time required
to complete, and cost can be estimated in resources
required to complete.
 Independent—minimum interface with or dependence on
other ongoing elements (i.e., assignable to a single control
account, and clearly distinguishable from other work
packages).
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WBS
 Integratable—integrates with other project work
elements and with higher level cost estimates and
schedules to include the entire project.
 Measurable—can be used to measure progress; has
start and completion dates and measurable interim
milestones.
 Adaptable—sufficiently flexible so the
addition/elimination of work scope can be readily
accommodated in the WBS framework.
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Guidelines - continued
 Include three types of project work
◦ Product
 Specifically assigned to a physical product as a
unique deliverable
 This subset is sometimes referred to as the product
breakdown structure
◦ Integration
 When products are brought together as a unit
 Can be at any level
◦ Support
 Level of Effort, Administration, Expenses

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Scheduling Principles - 1
 Compartmentalization
◦ the product and process must be decomposed
into a manageable number of activities and tasks
 Interdependency
◦ tasks that can be completed in parallel must be
separated from those that must be completed
serially
 Time allocation
◦ every task has start and completion dates that
take the task interdependencies into account

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 Effort validation
◦ project manager must ensure that on any
given day there are enough staff members
assigned to complete the tasks within the
time estimated in the project plan
 Defined Responsibilities
◦ every scheduled task needs to be assigned
to a specific team member

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 Defined outcomes
◦ every task in the schedule needs to have a defined
outcome (usually a work product or deliverable)
 Defined milestones
◦ a milestone is accomplished when one or more
work products from a task have passed quality
review

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Your WBS Is Important to
Monitoring
 It provides a comprehensive, consistent tool for
collecting and reporting status
◦ It is the basis for measuring schedule progress
against your plan
◦ It is the basis for measuring cost progress
against your plan
◦ It is the basis for reporting status to
management

Steps to Creating a WBS
1. Identify all products and services you are
required to provide
2. Define the elements of work needed for each
product or service
3. Add the work needed
4. Finalize the WBS by iterating until it is complete
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2. Define the Work for Your
Product
 Identify your make/buy strategy
◦ Make it from scratch
◦ Modify an existing product
◦ Buy it
 Select a life cycle model
 Identify technical work elements needed for each
product and sub-product

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3. Add Management Activities
 Identify additional work elements needed to
meet requirements
◦ Planning and monitoring activities
◦ Reporting activities
◦ Acquiring activities
◦ Technical monitoring activities (peer reviews, formal
reviews, etc.)
◦ Risk management activities
◦ Measurement activities
◦ Stakeholder coordination activities

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4. Finalize Your WBS
 Iterate as you refine schedule and cost estimates
◦ Factor in identified risks and mitigation strategies
◦ Group the work elements based on
organizational WBS standards or best practices
◦ Keep planned work aligned with budgetary
allocations
 WBS activities must result in all required products,
sub-products, and services
 Make your WBS product- and service-oriented, not
organization-oriented
 Document what each WBS element includes in a
WBS dictionary

Displaying Work Breakdown Structures
 Three different formats are usually used
 Organization-chart format: most common
◦ Effectively portrays an overview of your project and
the hierarchical relationships of different activities and
tasks.
 Outline format
◦ Sub-activities and tasks are indented
 Bubble format
◦ The bubble in the center represents your project
◦ Lines from the center bubble lead to activities
◦ Lines from activities lead to tasks
ExamplesWBS.pptx
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Prepare Report
1.0 Prepare draft report
2.0 Review draft report
3.0 Prepare final report
3.1 Write final report
3.2 Print final report
Review
Draft Report Prepare
Report
Prepare
Draft Report
Review
Final Report
Print
Final Report
Write
Final Report
Prepare Report
Prepare
Draft Report
Review
Draft Report
Prepare
Final Report
Write
Final Report
Print
Final Report
Org-Chart Format
Outline Format
Bubble Format

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A sample Work Breakdown Structure
Serve Pizzas to Customers
Provide the Place Cook the Food Serve Customers (Others)
Cook the Sauce
Make the
Dough
Build the Pizza

3.5 Control Scope
 Somewhere along the way, you or someone else will realize that
a change needs to happen, and that change will affect the scope
baseline
 That’s why you need the control scope process
Inputs
b. Requirements Documents
c. Traceability Matrix
d. Work Performance Information
e. Organizational Process Assets
Tools: Variance Analysis
Outputs:
a. Work Performance Measurements
b. Updates to Organizational Process Assets
c. Project Document Updates
d. Updates to the Project Management Plan
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3.5 Control Scope
 Project scope control is concerned with influencing
the factors that crate project scope changes and
controlling the impact of those changes
 Scope control assures all requested changes and
recommended corrective actions are processed
through the project inter grated change control
process
 Project scope control is also used to manage the
actual changes when they occur and is inter grated
with the other control processes
 Uncontrolled changes are often referred to as the
project scope creep
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3.6 Validate Scope
Inputs
b. Requirements Documents
c. Traceability Matrix
d. Deliverables
Tools: Inspection (stakeholders look closely at what
the team did)
Outputs:
a. Accepted Deliverables
b. Change Requests
c. Project Document Updates
If things are not done properly, there could be some
change 61

3.6 Validate Scope
 Scope validation is the process of obtaining the
stakeholders` formal acceptance of the completed
project scope and associated deliverables.
 Validating the project scope includes reviewing
deliverables to ensure that each is completed
satisfactorily.
 If the project is terminated early, the project scope
verification/validation process should establish and
document the level and extent of completion.
 Scope validation differs from quality control in that
the former is primarily concerned with acceptance of
the deliverables, while quality control is primarily
concerned with meeting the quality requirements
specified for the deliverables.
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Unit 4: Project Schedule/Time
Management
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Some challenges of schedule
management
 Role of deadlines
◦ “LIKE most professional writers, Karl Marx worked best
up against a deadline. The “Manifesto of the
Communist Party” was written in a few days of round-
the-clock creative inspiration in Brussels in January
1848. This intensive, adrenalin-fuelled, intellectual focus
produced what was to become the world’s best-selling
political pamphlet.” (The Economist, Dec. 23, 1999).
…. But: It’s not a smart idea to always work against
tight deadlines
 Realistic planning: How long does it really take to
complete task x? (“Double the time” rule)
 Procrastination/delay: Replacing high-priority tasks with
tasks of low priority - evasion
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Where do you spend most of your
time?
Urgent Not Urgent
Important
Quadrant 1
Fire fighting
Quadrant 2
Quality time
Not Important
Quadrant 3
Distraction
Quadrant 4
Wasting time
Source – The Seven Habits of Highly Effective People, by Stephen Covey, 1989
65

An ideal mix
Urgent Not Urgent
Important
Quadrant 1
5%
Quadrant 2
80%
Not Important
Quadrant 3
10%
Quadrant 4
5%
Source – The Seven Habits of Highly Effective People, by Stephen Covey, 1989
66

Strategies
Urgent Not Urgent
Important Do it now
Decide when
to do it
Not Important Delegate it Dump it
67

Further principles and tips
 Concentrate on results, and not on being busy!
 Make a list with tasks, and classify them according
to the quadrant
 Break down big tasks into smaller units, and make a
time plan for milestones
 Spend your most productive time of the day on the
most important tasks! (varies individually)
 Reduce interruptions
 Use the help of a “time coach” (e.g., a friend, who
helps you monitor your time plans)
68

Strategies against
procrastination
 What is procrastination?
◦ “you procrastinate when you put off things that you
should be focusing on right now, usually in favor of doing
something that is more enjoyable or that you’re more
comfortable doing.”
 Strategies
◦ Recognize that you're procrastinating and find out why
you are
 Finding tasks unpleasant or overwhelming
 Being unorganized; Perfectionism
◦ Approaches
 Think about the consequences of procrastinating
 Break down overwhelming or unpleasant tasks into
smaller units – do them step by step over a period of
time
 Reward yourself for achievements
 Keep priority lists (see matrix above)
Source: http://www.mindtools.com/pages/article/newHTE_96.htm
69

Processes in Project Time Management
4.1 Plan Schedule Management—The process of
establishing the policies, procedures, and documentation
for planning, developing, managing, executing, and
controlling the project schedule.
4.2 Define Activities—The process of identifying and
documenting the specific actions to be performed to
produce the project deliverables.
4.3 Sequence Activities—The process of identifying and
documenting relationships among the project activities.
4.4 Estimate Activity Resources—The process of
estimating the type and quantities of material, human
resources, equipment, or supplies required to perform
each activity.
70

Project Schedule Management
4.5 Estimate Activity Durations—The process of
estimating the number of work periods needed to
complete individual activities with estimated
resources.
4.6 Develop Schedule—The process of analyzing
activity sequences, durations, resource requirements,
and schedule constraints to create the project
schedule model.
4.7 Control Schedule—The process of monitoring the
status of project activities to update project progress
and manage changes to the schedule baseline to
achieve the plan.
71

 The Project Time Management processes and their
associated tools and techniques are documented in the
schedule management plan.
 The schedule management plan is a subsidiary plan of,
and integrated with, the project management plan through
the Develop Project Management Plan process.
 The schedule management plan identifies a scheduling
method and scheduling tool and sets the format and
establishes criteria for developing and controlling the
project schedule.
 The selected scheduling method defines the framework
and algorithms used in the scheduling tool to create the
schedule model.
 Some of the better known scheduling methods include
critical path method (CPM) and critical chain method
(CCM). 72

4.1 Plan Schedule Management
Inputs:
b. Project Charter
c. Enterprise Environmental factors
d. Organizational Process Assets
Tools:
a. Expert Judgment
b. Analytical Techniques
c. Meetings
Output: Schedule Management Plan
73

4.2 Define Activities
 Defining the schedule activities involves identifying
and documenting the work that is planned to be
performed.
 The activity definition process will identify the
deliverables at the lowest level in the work
breakdown structure (WBS), which is called the work
package.
 Project work packages are planned (decomposed)
into smaller components called schedule activities to
provide a basis for estimating, scheduling, executing,
and monitoring and controlling the project work.
 Implicit in this process is defining and planning the
schedule activities such that the project objectives
will be met.
74

4.2 Define Activities
Inputs
◦ Schedule management plan
◦ Scope baseline
◦ Organizational process assets
Tools & Techniques
◦ Decomposition
◦ Rolling wave planning
◦ Expert judgment
Outputs
◦ Activity list
◦ Activity attributes
◦ Milestone list
75

4.3 Sequence Activities
 Activity sequencing involves identifying and
documenting the logical relationships among
schedule activities.
 Schedule activities can be logical sequenced with
proper precedence relationships, as well as leads and
lags to support later development of a realistic and
achievable project schedule.
 Sequencing can be performed by using project
management software or by using manual
techniques.
76

4.3 Sequence ActivitiesPERT and
CPM.pptx
Inputs
◦ Activity list
◦ Milestone list
◦ Project scope statement
Tools & Techniques
◦ Precedence diagramming method (PDM)
◦ Dependency determination
◦ Leads and lags
Outputs
◦ Project schedule network diagrams
◦ Project documents updates
77

PDM: How to find the Critical
Path
1. Start with an activity network diagram
2. Find all of the paths in the diagram. A path is any string
of activities that goes from the start of the project to
the end.
3. Find the duration of each path by adding up the
durations of each of the activities on the path.
 The critical path is the one with the longest duration
Star
t
A
D
C
B
E
Finish
4
7
2
5
3
78

PDM: How to find the ES, S, LS, EF
& LF
79

PDM: How to find the ES, S, LS, EF &
LF
ES Activity EF
Slack
LS Duration LF
80

PDM: How to find the Critical
Path
 The float for each of the activities on the critical path
is zero.
 Find the next longest path. Subtract its duration
from the duration of the critical path, and that’s the
float for each activity on it.
 You can use this method to find the float for every
activity in a network diagram.
 Another word for float is slack.
 Do the same for the next longest path, and so on
through the rest of the network diagram.
 Float tells you how much extra time you have
 Once you know the float, you know how much play
you have in your schedule.
81

Self-check Exercise 1
Find the critical path
Star
t
A
D
C
F
E
Finis
h
4
7 2
4
5
G
B
H I
4 2
3
8
a) Critical Path: _______________
b) Duration of the Critical Path: _________
c) Total Number of Paths: ______
d) Find the float for each path
82

Star
t
A
E
C
B
Finis
h
5
9
7
8
D
F
2
3
a) Critical Path: _______________
G
5
83

Star
t
A
D
C
F
E
Finis
h
4
6 4
9
3
G
B
H I
3 3
3
6
a) Critical Path: _______________
J
K L
2 6
7
84

Star
t
A
D
C
F
E
Finis
h
8
5 3
7
6
G
B
H I
3 3
2
2
a) Critical Path: _______________
d) Float of each path and activities
J
K L
4 7
5
85

4.4 Estimate Activity Resources
 Estimating schedule activity resources involves
determining what resource (persons, equipment, or
material) and what quantities of each resources will
be used, and when each resources will be available
to perform project activities.
 The activity resource estimating process is closely
coordinated with the cost estimating process
86

4.4 Estimate Activity Resources
Inputs
◦ Activity list
◦ Resource calendars
◦ Risk register
◦ Activity cost estimates
Tools & Techniques
◦ Expert judgment
◦ Alternative analysis
◦ Published estimated data
◦ Bottom-up estimating
◦ Project management software
Outputs
◦ Activity resource
requirements
◦ Resource breakdown
structure
◦ Project documents
updates
87

4.5 Activity Duration Estimation
 The process of estimating schedule activity durations uses
information on schedule activity scope of work, required
resource types, estimated resources quantities, and resource
calendars with resource availabilities.
 The inputs for the estimates of schedule activity duration
originate from the person or group on the project team who is
most familiar with the nature of work content is the specific
schedule activity.
 The duration estimate is progressively elaborated, and the
process considers the quality and availability of the input data.
 For example , as the project engineering and design work
evolves, more detailed and precise data is available, and the
accuracy of the duration estimates improves.
 Thus, the duration estimate can be assumed to the
progressively more accurate and of better quality.
88

4.5 Activity Duration Estimation
Inputs
◦ Activity list
◦ Activity resource requirements
◦ Project scope statement
◦ Risk register
◦ Resource breakdown structure
Outputs
◦ Activity duration estimates
Tools &
Techniques
◦ Expert judgment
◦ Analogous
estimating
◦ Parametric
estimating
◦ Three-point
estimating (PERT)
◦ Group decision-
making techniques
◦ Reserve analysis
89

Activity Duration
(1) The deterministic approach (CPM), which ignores
uncertainty thus results in a point estimate (e.g. The
duration of task 1 = 23 hours, etc.)
(2) The stochastic approach (PERT), which considers
the uncertain nature of project activities by
estimating the expected duration of each activity and
its corresponding variance.
◦ To analyse the past data to construct the
probabilistic distribution of a task.
 Example: An activity was performed 40 times in the
past, requiring a time between 10 to 70 hours. The
figure below shows the frequency distribution.
90

Activity Duration
91
Fig 1. Frequency distribution of activities

Activity Duration
92
Fig 2. Beta distribution fitted to the data

Activity Duration
93
Fig 3. Beta Distribution of Activity Times

Activity Duration
 Three key values we use in the time estimate for each
activity:
a = optimistic time, which means that there is little
chance that the activity can be completed before
this time;
m = most likely time, which will be required if the
execution is normal;
b = pessimistic time, which means that there is little
chance that the activity will take longer.
94

Activity Duration
 The expected or mean time is given by:
 Te= (a+4m+b)/6
 The variance is:
 V = (b-a) 2/36
 The standard deviation is (b - a)/6
 For our example (Figure 1), we have a=10, b=70,
m=35.
 Therefore Te=36.6, and 2 =100.
95


Determining Expected Time
Activity o m p t variance
A 1 2 3
B 2 3 4
C 1 2 3
D 2 4 6
E 1 4 7
F 1 2 9
G 3 4 11
H 1 2 3
Expected time (t) = (o+(4*m)+p)/6 Variance = ((p-o)/6) 2
Basic Assumption: the Critical Path is: A-C-E-G-H
We want to know the project variance: The square of the sum of
the variances along the critical path
96

Determining Expected Time
Activity a m b t variance
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
Expected time (t) = (a+(4*m)+b)/6 Variance = ((b-a)/6)2
Basic Assumption: the Critical Path is: A-C-E-G-H
We want to know the project variance: The square of the sum of the
variances along the critical path, which is 3.11
Standard deviation is the square root of the variance = = 1.76
11
.
3
97

Project Description
 Project: about …..
 Project standard deviation = +- 1.76 weeks
 Due date: 16 weeks
 Project duration: 15 weeks
 Z-score = (due date-expected date)/std.dev
 Z = (16-15)/1.76 = 0.57
 Go to normal z distribution statistics table and take 5
from the rows and .07 from the columns.
98

Probability of Project Success
99
The intersection of the two is 0.7157
This means the probability of finishing in time is 71.2%

Summary of PERT
 Step 1: Calculate the expected completion time (TE) using
PERT
 Step 2: Calculate the variance of the project by calculating
the variance of each task
 Step 3: Calculate the standard deviation
 Standard Deviation = √ Task Variance1 + Task Variance2 +
Task Variance3… .
 Step 4: Calculate the Z-Score
 To calculate the Z-Score use the equation:
 Z = (T-TE)/σ
 The Z-Score (z) is the difference between the desired completion
time and the project's expected time divided by the standard
deviation for the project.
 Step 5: Calculate the probability of success now that you
have figured out the Z-Score.
100

Critical Path vs Critical Chain
 Usually, the critical path goes from start of the project
to the end of the project.
 Instead, the critical chain ends at the start of the
buffer assigned to the project.
 This buffer is called "project buffer."
 This is the fundamental difference between the critical
path and the critical chain.
 When it comes to critical path, activity sequencing is
performed.
 But with critical chain, critical chain scheduling is
performed.
101

 When it comes to the project schedule, the critical
path is more subjective towards the milestones and
deadlines.
 In critical path, not much of emphasis is given to
resource utilization.
 Therefore, many experts believe that the critical path
is what you get before you level the resources of the
project.
 One other reason for this is, in critical path, hands-off
dependencies are given the precedence.
 When it comes to critical chain, it is more defined as
a resource-levelled set of project tasks.
 In critical chain scheduling, dependencies are used to
determine the critical chain. 102

 Two types of dependencies are used; hands-off
dependencies and resource dependencies.
 Hands-off Dependencies
 This simply means that output of one task is the
input for another. Therefore, the latter task cannot be
started until the first task is completed.
 Resource Dependencies
 In this case, one task is utilizing a resource, so the
other task cannot be started until the first task is
completed and the resource is freed.
 The critical chain can be explained as the "resource
constrained critical path".
103

4.6 Schedule Development
 Most project management software for scheduling will handle
this situation by using a project calendar and alternative work-
period resource calendars that are usually identified by the
resources that require specific work periods.
 The schedule activities will be worked according to the project
calendar, and the schedule activities to which the resource are
assigned will also be worked according to the appropriate
resource calendars.
 Project schedule development, an iterative process, determines
planned start and finish dates for project activities.
 Schedule development can require that duration estimates and
resource estimates are reviewed and revised to create an
approved project schedule that can serve as a baseline against
which progress can be traced.
104

Activity schedules
 An activity schedule is a format for analyzing and
graphically presenting project activities
 It helps identify their logical sequence, expected
duration, and dependencies that exist between
activities
 It provides a basis for allocating management
responsibility
 With the activity schedule prepared, further
specification of resources and scheduling of costs
can be undertaken
105

Activity schedules…
 Once the logframe matrix is complete, it is then possible to use
the identified activities to further analyze issues of timing,
dependency and responsibility
Steps
1. List the main activities: the LF matrix has a summary only that serve as
basis
2. Break activities down into manageable tasks (WBS): the main skill is
getting the level of detail right.
3. Clarify sequence and dependencies
4. Estimate start-up, duration and completion of activities: consult experts. Do
not underestimate the time required
5. Summarize scheduling of main activities: put all together as a summary
6. Define milestones: key events; dates could be important milestones
7. Define expertise: when tasks are known, it is possible to specify experts
8. Allocate tasks among team: responsibility allocation taking into account
capability, skills and experience of each member of the team
106

Activity Schedule
Ref no. Results and
activities
Responsibility Year 1 Year 2
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1.1 Results
Activities
1.1.1
1.1.2
1.1.3
1.2
1.2.1
1.2.2
1.2.3
1.2.4
107

4.6 Schedule Development
Inputs
 Schedule management plan
 Activity list
 Activity attributes
 Project schedule network
diagrams
 Activity resource requirements
 Resource calendars
 Activity duration estimates
 Project scope statement
 Risk register
 Project staff assignments
 Resource breakdown
structure
 Enterprise environmental
factors
Tools & Techniques
 Schedule network analysis
 Critical path method
 Critical chain method
 Resource optimization
techniques
 Modeling techniques
 Leads and lags
 Schedule compression
 Scheduling tool
Outputs
 Schedule baseline
 Project schedule
 Schedule data
 Project calendars
 Project management plan 108

4.7 Control Schedule
 Schedule control is concerned with:
◦ Determining the current status of the project schedule
◦ Influencing the factors that create schedule changes
◦ Determining that the project schedule has changed
◦ Managing the actual changes as they occur.
109

4.7 Control Schedule
Inputs
 Project schedule
 Work performance data
 Project calendars
 Schedule data
Tools & Techniques
 Performance reviews
 Project management software
 Resource optimization
techniques
 Modeling techniques
 Leads and lags
 Schedule compression
 Scheduling tool
Outputs
 Work performance information
 Schedule forecasts
 Change requests
updates
updates
110

Schedule Compression
 Fast Tracking: is a schedule compression
technique to perform activities in parallel
(partial or in whole) in order to save time
 the activities to be performed in parallel should be
analyzed for logical relationship and that the two
activities in question can really be carried out in
parallel (i.e. overlapping of part or the whole
activities)
 normally no extra resources are needed
 additional risks may be created
 Fast Tracking is the preferred method for schedule
compression
111

Schedule Compression
 Crashing: crashing is a schedule compression
technique to shorten the activity duration by adding
◦ extra resources (money and/or human resources)
◦ Improving the productivity of existing resources
◦ involves additional costs as extra resources are
needed for
overtime
extra manpower
Outsourcing
◦ Project Manager needs to judge which activities can
be "crashed" with the lowest cost for the maximum
effectiveness
◦ May create risks for rework/defects
112

Linear Time-Cost Tradeoff
In theory, the normal or expected duration of a task can
be reduced by assigning additional resources to the task
Time
Cost
Crash
Point
Normal
Point
Slope (bj) = Increase in cost by
reducing task by one time unit
Normal time
Crash time
Normal
cost
Crash
cost
tj
N
tj
c
Cj
c
Cj
N
113

Selecting Activities to Crash
 Cost Slope = Rise / Run
 Cost Slope = CC – NC / NT – CT
 = CC – NC
NT – CT
 where,
◦ CC = Crash Cost
◦ NC = Normal Cost
◦ NT = Normal Time
◦ T = Crash Time
 Calculate for each activity on Critical Path
= CC – NC = $800 - $400
NT – CT 10 – 5
= $400/5 = $80 per unit of time
114

Balancing Overhead & Direct
Costs
Project
Duration
Cost
Indirect
(overhead)
Costs
Direct
Costs
Total Cost
Crash
Time
Normal Time
Minimum Cost
Solution
115

A None 7
B A 3
C A 4
D B,C 5
E D 2
F D 4
G E,F 5
Act. Imed. Pred. Time
A(7)
B(3)
C(4)
D(5)
E(2)
F(4)
G(5)
116
Crash the project by 4 days

Time – Cost Analysis: Crashing the
Project
Activity Normal
Time
Crash
Time
Normal
Cost
Crash
Cost
Cost/Day
A 7 6 $7,000 $8,000 $1,000
B 3 2 5,000 7,000 2,000
C 4 3 9,000 10,200 1,200
D 5 4 3,000 4,500 1,500
E 2 1 2,000 3,000 1,000
F 4 2 4,000 7,000 1,500
G 5 4 5,000 8,000 3,000
117

Path Length Crash A Crash C Crash F
(or D)
Crash F
(or D)
ABDFG 24 23 23 22 21
ABDEG 22 21 21 21 21
ACDFG 25 24 23 22 21
ACDEG 23 22 21 21 21
Action
Action Marginal Cost
Crash A $1,000
Crash C $1,200
Crash D $ 1,500
Crash F $1,500
Crash G $3,000
118

Unit 5: Project Cost Management
5.1 Plan Cost Management—The process that establishes
the policies, procedures, and documentation for planning,
managing, expending, and controlling project costs.
5.2 Estimate Costs—The process of developing an
approximation of the monetary resources needed to
complete project activities.
5.3 Determine Budget—The process of aggregating the
estimated costs of individual activities or work packages to
establish an authorized cost baseline.
5.4 Control Costs—The process of monitoring the status of
the project to update the project costs and managing
changes to the cost baseline.
119

5.1 Plan Cost Management
Inputs
◦ Project charter
Tools & Techniques
◦ Expert judgment
◦ Analytical techniques
◦ Meetings
Outputs
◦ Cost management plan
120

5.1 Plan Cost Management
 In Plan Cost Management Process, you need to
plan out all of the processes and methodologies
you’ll use for Cost Management up front.
 When you’ve got your project charter written and
you’re starting to put together your Project
Management plan, you need to think about all of
the processes and standards you’ll follow when
you estimate your budget and track to that
estimate.
 So, the Plan Cost Management process is where
you plan out all the work you’ll do to make sure
your project doesn’t cost more than you’ve
budgeted.
121

5.2 Estimate Costs
Inputs
◦ Human resource management plan
◦ Scope baseline
◦ Project schedule
◦ Risk register
122

5.2 Estimate Costs
Tools & Techniques
◦ Expert judgment
◦ Analogous estimating
◦ Parametric estimating
◦ Bottom-up estimating
◦ Three-point estimating
◦ Cost of quality
◦ Project management software
◦ Vendor bid analysis
◦ Group decision-making techniques
Outputs
◦ Basis of estimates
123

5.2 Estimate Costs
 This means figuring out exactly how much you expect each
work activity you are doing to cost. So each activity is estimated
for its time and materials cost, and any other known factors that
can be figured in.
 Activity cost estimates. This is the cost estimate for all of the
activities in your activity list. It takes into account resource rates
and estimated duration of the activities.
 Basis of estimates. Just like the WBS has a WBS dictionary,
and the activity list has activity attributes, the cost estimate has
a supporting detail called the basis of estimates. Here is where
you list out all of the rates and reasoning you have used to
come to the numbers you are presenting in your estimates.
 Updates to project documents. Along the way, you might find
that you need to change the way you measure and manage
cost. These updates allow you to make changes to the Project
Management plan to deal with those improvements.
124

5.3 Determine Budget
Inputs
◦ Scope baseline
◦ Basis of estimates
◦ Project schedule
◦ Risk register
◦ Agreements
◦ Organizational process
assets
Tools & Techniques
◦ Cost aggregation
◦ Expert judgment
◦ Historical relationships
◦ Funding limit reconciliation
Outputs
 Cost baseline
 Project funding requirements
125

5.3 Determine Budget
 Here’s where all of the estimates are added up and
baselined. Once you have figured out the baseline,
that’s what all future expenditures are compared to.
 Here’s where you take the estimates that you came
up with and build a budget out of them. You’ll build on
the activity cost estimates and basis of cost estimate
that you came up with in Estimate Costs.
 This means that you use the outputs from the last
process where you created estimates as inputs to
this one. Now you can build your budget.
126

5.4 Control Costs
Inputs
◦ Project funding requirements
◦ Work performance data
assets
Tools & Techniques
◦ Earned value management
◦ Forecasting
◦ To-complete performance
index (TCPI)
◦ Performance reviews
◦ Project management
software
Outputs
◦ Work performance
information
◦ Cost forecasts
◦ Change requests
updates
assets updates
127

Earned Value Analysis
 Knowing where you are on
schedule?
budget?
work accomplished?
128

 Budget at Completion (BAC)= The amount of
money a project consumes when it is finished
 Planned % Complete= How much is expected to be
performed in terms of percentage
 Planned value (PV) = BAC X Planned % Complete
 Actual % Complete= How much is actually
performed in terms of percentage.,
 Earned value (EV) = BAC X Actual % Complete;
BCWP
129

130
Fig 1. Typical curve showing PV, AC, EV

 Schedule and cost variances and performance indicators are
defined mathematically as follows:
 Schedule variance (SV) = Earned value (EV) – Planned value
(PV)
 Cost variance (CV) = Earned value (EV) – Actual cost (AC)
 Schedule performance index (SPI) = Earned value (EV) /
Planned value (PV)
 Cost performance index (CPI) = Earned value (EV) / Actual cost
(AC)
 The final step when assessing task performance to date is to
update what you expect your total expenditures will be upon task
completion. Specifically, you want to determine the following:
 Estimate at completion (EAC): Your estimate today of the total
cost of the task
 Estimate to complete (ETC): Your estimate of the amount of
funds required to complete all work still remaining to be done on
the task
131

132
Fig. 2: Earned Value Analysis

 You can use the following two approaches to calculate the EAC:
 Method 1: Assume that the cost performance for the remainder
of the task will revert to what was originally budgeted.
 EAC = Approved budget for the entire task – Cost variance for
the work done to date on the task
 = Budget at completion (BAC) + Actual cost (AC) – Earned
value (EV)
 Method 2: Assume that the cost performance for the remainder
of the task will be the same as what it has been for the work
done to date.
 EAC = Budget at completion (BAC) / Cumulative cost
performance index (CPI)
 Method 3: very pessimistic scenario considering the impact of
both cost and schedule on EAC
 EAC =BAC/(CPI*SPI)
133

 You’re managing a project to install 200 windows in a new
skyscraper and need to figure out your budget. Each week of the
project costs the same: your team members are paid a total of
$4,000 every week, and you need $1,000 worth of parts each
week to do the work. The project is scheduled to last 16 weeks:
1. What’s the BAC for the project?
 BAC =
2. What will the planned % complete be four weeks into the project?
 Planned % complete =
3. What should the PV be four weeks into the project?
 PV =
4. What is the earned value if you find out that the work performed
is 20%?
 EV=
135

 You’re managing a project to install 200 windows in a new
skyscraper and need to figure out your budget. Each week of the
project costs the same: your team members are paid a total of
$4,000 every week, and you need $1,000 worth of parts each
week to do the work. The project is scheduled to last 16 weeks:
1. What’s the BAC for the project?
 BAC = 5,000 x 16 = 80,000
2. What will the planned % complete be four weeks into the project?
 Planned % complete = 25%
3. What should the PV be four weeks into the project?
 PV = 80,000 x 25% =20,000
4. What is the earned value
 EV= 80,000 x 20% =16,000
136

Self-check Exercise
 Your project has a total budget of $300,000. You check
your records and find that you’ve spent $175,000 so far.
The team has completed 40% of the project work, but
when you check the schedule it says that they should
have completed 50% of the work.
 Calculate the following:
◦ PV
◦ EV
◦ AC
◦ CV
◦ SV
137

5.4 Control Costs
 This just means tracking the actual work according to
the budget to see if any adjustments need to be
made.
 Controlling costs means always knowing how you
are doing compared to how you thought you would
do.
138

5.4 Control Cost Process
 Project cost control includes:
◦ Influencing the factors that create changes to the
project baseline
◦ Ensuring requested changes are agreed upon
◦ Managing the actual changes when and as they occur
◦ Assuring that potential cost overruns do not exceed the
authorized funding periodically and in total for the
project
◦ Monitoring cost performance to detect and understand
variance from the cost baseline
◦ Recording all appropriate changes accurately against
the cost baseline
◦ Preventing incorrect, inappropriate, or unapproved
changes from being included in the reported cost or
resource usage
◦ Informing appropriate stakeholder of approved
changes
◦ Act to bring expected cost overruns within acceptable 139

Group Assignment
 Try to prepare:
1. Collect requirements/Needs
Assessment
2. WBS
140

 Project Quality Management processes include all
the activities of the performing organization that
determine quality policies, objectives, and
responsibilities so that the project will satisfy the
needs for which it was undertaken.
 It implements the quality management system
through the policy, procedures, and processes of
quality planning, quality assurance, and quality
control, with continuous process improvement
activities conducted throughout, as appropriate.
 Quality is “the degree to which a set of inherent
characteristics fulfill requirements”.
 Quality is the measurement of how closely your
product meets its requirements.
141
Unit 6: Project Quality Management

Quality Management
 What does the term quality mean?
 Narrowest definition… “ freedom from
defects”
 Quality is the ability of a product or service to
consistently meet or exceed customer
expectations (customer satisfaction).
142

Quality Management
 Customer satisfaction is about making sure that the
people who are paying for the end product are happy
with what they get.
 When the team gathers requirements for the
specification, they try to write down all of the things
that the customers want in the product so that you
know how to make them happy.
 Fitness for its purpose/use
 Fitness for use is about making sure that the
product you build has the best design possible to fit
the customer’s needs.
 Conformance to requirements is the core of both
customer satisfaction and fitness for use. Above all,
your product needs to do what you wrote down in
your requirements specification. 143

Project Quality Management
6.1 Plan Quality Management—The process of
identifying quality requirements and/or standards for
the project and its deliverables and documenting how
the project will demonstrate compliance with quality
requirements.
6.2 Manage Quality—you take all of the outputs from
Plan Quality Management and Control Quality and
look at them to see if you can find ways to improve
your process and take action.
6.3 Control Quality—The process of monitoring and
recording results of executing the quality activities to
assess performance and recommend necessary
changes.
144

6.1 Plan Quality Management
Inputs
 Stakeholder register
 Risk register
 Requirements documentation
factors
Tools & Techniques
 Cost-benefit analysis
 Cost of quality
 Seven basic quality tools
 Benchmarking
 Design of experiments
 Statistical sampling
 Additional quality planning
tools
Outputs
 Quality management plan
 Process improvement plan
 Quality metrics
 Quality checklists
145

6.2 Manage Quality
 Quality assurance encompasses all the activities
implemented in a quality system to provide
confidence that the project will satisfy the relevant
quality standards
 Quality assurance is about finding and correcting
defects before reaching the beneficiaries.
 Quality assurance is provided by a Quality Assurance
dept/Now TQM/.
 Quality assurance can be INTERNAL ( from the
project management team to the performing
organization)
 Quality assurance can be EXTERNAL (provided to
the customer and other parties actively involved in
the work of the project 146

6.2 Manage Quality
Inputs
 Quality management plan
 Process improvement plan
 Quality metrics
 Quality control measurements
 Project documents
Tools & Techniques
 Quality management and
control tools
 Quality audits
 Process analysis
Outputs
 Change requests
updates
updates
147

6.3 Control Quality
Inputs
 Quality metrics
 Quality checklists
 Deliverables
 Project documents
Tools & Techniques
 Seven basic quality tools
 Statistical sampling
 Inspection
review
Outputs
 Quality control
measurements
 Validated changes
 Validated deliverables
 Work performance
information
 Change requests
updates
 Organizational process
assets updates
148

Nature of PQM
 Project quality management must address
both the management of the project and the
product of the project.
 Failure to meet quality requirements in either
dimension can have serious and negative
consequences for any or all of the project
stakeholders
149

Quality Planning Inputs
Quality policy
 The overall intentions and direction of an
organization with regard to quality, as formally
expressed by the top management
 In the case of a joint venture, a quality policy for the
individual project should be developed
 The management team is responsible for dissipating
the quality policy to all project stakeholders through
appropriate information distribution channels
150

Scope Statement
 The scope statement is a key input to quality
planning because it documents major project
deliverables as well as project objectives
which serve to define important stakeholder
requirements
151

Product description
 Although the elements of the product
description may be embodied in the
scope statement, the product
description often contains details of
technical issues and other concerns
that may affect quality planning
152

Standards and Regulations
 The project management team any application-
area-specific standards or regulations that may
affect the project.
 ISO 9000- A set of international standards on
quality management and quality assurance.
 ISO 14000 -A set of international standards for
assessing a company’s environmental
performance
153

Other Process Outputs
 In addition to the scope statement and product
description, processes in other knowledge areas may
produce outputs that should be considered as part of
the quality planning
 Example: procurement planning outputs may identify
contractor quality requirements that should be reflected
in the overall Quality Management Plan
154

Tools and Techniques for Quality
Planning
 Benefit / cost analysis
 The planning process must consider benefit/cost
tradeoffs
 The Primary Benefit: Is less work, higher
productivity, lower costs, and increased
stakeholder satisfaction
 The Primary Cost: Is the expanses associated with
PQM activities
Note: it is elementary that the benefit should
outweigh the cost
155

Planning
Benchmarking
 Benchmarking involves comparing actual or
planned project practices to those of other
projects to generate ideas to:
1- Generate ideas for improvement
2- provide a standard for measurement of
performance
Note: other projects compared may be within the
same organization or out side and may be within
the same application area or in another
156

Planning
Flow charting
 The flowcharting techniques in quality
management generally include
- cause and effect diagram (see the
diagram in the next slide)
- System or process flow charts
 Flowcharting can help in anticipating probable
quality problems and thus helps to develop
approaches for dealing with them
157

Cause-and-Effect Diagram
Effect
Materials
Methods
Equipment
People
Environment
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
158

Planning
Design of Experiments
 This is an analytical technique which aims to define
variables that have most influence on the overall
outcome
 This technique is commonly applicable to the
product of the project issues.
 However this technique can also be used in project
management issues such as cost and schedule
tradeoffs to allow for optima solutions.
159

Outputs from Quality Planning
Quality Management Plan
 The quality management plan should
describe how a project management team will
implement its quality policy
 Also called Quality System, (in ISO
terminology), the plan should define :
- The organizational structure
- Roles and responsibilities
- Resources needed for implementation of
quality management
160

Quality Management Plan
(continued)
 The Quality Plan should address:
- Quality Control of the project
- Quality Assurance
- Quality Improvement of the project
Note: the project quality plan can be highly detailed
or broadly framed based on the needs of the
project
161

Operational Definitions
 An operational definition describes what something
is and how it is measured by the quality control
process. For example:
- the project management team must indicate the
start and end of every activity in a detailed
schedule
- Weather the whole activity or certain deliverables
are to be measured
Operational definitions are also called Metrics in
some areas of application
162

Checklists
 A checklist is a structured tool used to
verify that a set of required steps or
requirements have been performed.
 Many organizations have standard
checklists to ensure consistency of
frequently performed activities
163

Inputs To Other Processes
 The quality planning process may
identify need for further activity in
another area
164

Quality Control
 Quality control involves monitoring specific project
results to determine if they comply with relevant
standards and identifying ways to eliminate causes
of unsatisfactory results.
 Project results mentioned include both PRODUCT
results such as deliverables and MANAGEMENT
results such as cost and schedule performance
 Quality control is often performed by a quality
control department
 The project management team should have a
working knowledge of statistical quality control
especially sampling and probability to help
evaluate and control outputs.
165

Quality Control
 The project management should be aware of the
following among other subjects:
- prevention ( keeping errors out of the process)
- Inspection (keeping errors out of the customers hand)
- Attribute sampling (for conformity of results)
- Variable sampling (where the results are rated on a
continuous scale that measures the degree of conformity or
non conformity
- Special cause ( unusual events)
- Random causes ( normal process variations)
- Tolerances ( where results should fall with in a defined
tolerance range
- Control limits ( the process is in control if it falls within these
defined limits)
166

Control
 Control Charts
 These charts are graphical representations (see in
next slide) that display the result of a process over
time and are used to determine if the process is “in
control”
 When in control the process should not be adjusted ,
however it may be changed in order to provide
improvements
 Control charts may be used to monitor any type of
output variable
 Control charts are most often used to monitor
repetitive activity in production but can also be used
to monitor cost and schedule variances
167

Control Chart
970
980
990
1000
1010
1020
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
UCL
LCL
168

Control
Pareto Diagram
 A Pareto diagram is a histogram ordered by
frequency of occurrence which shows how many
results were generated by what category or
identified cause
 The project management team should take action
to fix the problems that are causing the greatest
number of defects first
 Typically the Pareto diagram reflects that a
relatively small number of causes are responsible
for the majority of the problems or defects.
169

Pareto Analysis
80% of the
problems
may be
attributed to
20% of the
causes.
Smeared
print
Number
of
defects
Off
center
Missing
label
Loose Other
170

Control
Statistical Sampling
 Statistical sampling involves choosing a part of a
population of interest for inspection
 Appropriate sampling can effectively reduce the
cost of quality control
 There is a vast body of knowledge related to
statistical sampling and therefore the management
must be aware of the various sampling techniques
171

Control
Flowcharting
 Flowcharting is used in quality control
to help analyze how a problem occurs
172

Control
Trend Analysis
 The trend analysis involves the use of mathematical
techniques to forecast future outcomes based on
historical results it is often used to monitor:
- Technical performance – how many defects have
been identified and how many remain uncorrected
- Cost and schedule performance – how many
activities in a certain period were completed with
significant variances
173

Outputs for Quality Control
 Quality improvement ( previously described)
 Acceptance decisions, where the inspected items
will either be accepted or rejected and those
rejected may be reworked
 Rework, which is an action taken to bring defects
or nonconforming items into compliance with
requirements and specifications. Rework is a
frequent cause of project over-runs and the project
management team must make an effort to minimize
it .
174

Outputs for Quality Control
 Completed Checklists, which become a part of a
project record when they are used
 Process Adjustments, which involves immediate
corrective or preventive action as a result of quality
control measurements. In some cases the
adjustment may need to be handled according to
procedures for overall change control.
175

Unit 7: Project Resource Management
 There are four processes in this knowledge area. While the first
belongs to Planning Process group, the other three are in the
Executing Process group.
7.1 Plan Resource Management. The process of identifying and
documenting project roles, responsibilities, required skills,
reporting relationships, and creating a staffing management
plan.
7.2 Acquire Project Team. The process of confirming human
resource availability and obtaining the team necessary to
complete project activities.
7.3 Develop Project Team. The process of improving
competencies, team member interaction, and overall team
environment to enhance project performance.
7.4 Manage Project Team—The process of tracking team member
performance, providing feedback, resolving issues, and
managing changes to optimize project performance.
7.5 Control Resources: to be added in PMBoK 6th edition
176

7.1 Plan Human Resource Management
 In the Plan Human Resource Management process, you
plan out exactly which resources you’ll need, what their
roles and responsibilities are, and how you’ll train your
team and make sure they stay motivated.
 This is where you plan out the staffing needs for your
project, and how you’ll manage and reward the team.
 The human resource management plan provides project
staffing attributes, personnel rates, and related
rewards/recognition, which are necessary components for
developing the project cost estimates.
 Project Human Resource Management includes the
processes that organize, manage, and lead the project
team. The project team is comprised of the people with
assigned roles and responsibilities for completing the
project.
177

7.1 Plan Resource Management
 Project team members may have varied skill sets,
may be assigned full or part-time, and may be added
or removed from the team as the project progresses.
 Project team members may also be referred to as
the project’s staff. Although specific roles and
responsibilities for the project team members are
assigned, the involvement of all team members in
project planning and decision making is beneficial.
 Participation of team members during planning adds
their expertise to the process and strengthens their
commitment to the project.
178

7.1 Plan Resource Management
Inputs
 Activity resource requirements
 Enterprise environmental factors
Tools & Techniques
 Organization charts and position descriptions
 Networking
 Organizational theory
 Expert judgment
 Meetings
Outputs
 Human resource management plan
179

7.1 Acquire Project Resources
Inputs
 Human resource management plan
Tools & Techniques
 Pre-assignment
 Negotiation
 Acquisition
 Virtual teams
 Multi-criteria decision analysis
Outputs
 Project management plan updates
180

7.2 Acquire Project Team
 Acquiring project team is the process of obtaining the
human resources needed to complete the project.
 The project management team may or may not have
control over team members selected from the project.
 Acquiring qualified people for teams is crucial.
 The project manager who is the smartest person on the
team should do a good job of recruiting people
 Staffing plans and good hiring procedures are important,
as are incentives for recruiting and retention.
◦ Some companies give their employees one dollar for
every hour that a new person who they helped hire
works.
◦ Some organizations allow people to work from home
as an incentive.
181

7.3 Develop Project Team
 Develop project team improves the competencies and
interactions of team members to enhance project
performance.
 Objectives include:
 Improve skills of team members in order to increase their
ability to complete project activities
 Improve feelings of trust and cohesiveness among team
members in order to raise productivity through greater
teamwork Examples of effective teamwork include
assisting one another when workloads are unbalanced,
communicating in ways that fit individual preferences, and
sharing information and resources.
 Team development efforts have greater benefit when
conducted early, but should take place throughout the life
cycle.
182

 The main goal of team development is to help
people work together more effectively to improve
project performance.
 It takes teamwork to successfully complete most
projects.
 Training can help people understand themselves
and each other, and understand how to work better
in teams.
 Team building activities include:
◦ Physical challenges
◦ Psychological preference indicator tools
183

Inputs
 Human resource management
plan
Tools & Techniques
 Interpersonal skills
 Training
 Team-building activities
 Ground rules
 Colocation
 Recognition and rewards
 Personnel assessment tools
Outputs
 Team performance
assessments
factors updates
184

Stages of Team Development
 Forming: People are still trying to figure out their roles in the
group; they tend to work independently, but are trying to get
along.
 Storming: As the team learns more about the project, members
form opinions about how the work should be done. This can
lead to temper flare-ups in the beginning, when people disagree
about how to approach the project.
 Norming: As the team learns more about the other members,
they begin to adjust their own work habits to help out one
another and the team as a whole. Here’s where the individuals
on the team start learning to trust one another.
 Performing: Once everyone understands the problem and what
the others are capable of doing, they start acting as a cohesive
unit and being efficient. Now the team is working like a well-
oiled machine.
 Adjourning: When the work is close to completion, the team
starts dealing with the fact that the project is going to be closing
soon. 185

7.4 Manage Project Team
 Manage project team involves tracking team members
performance, providing feedback, resolving issues, and
coordinating changes to enhance project performance.
 The project management team observes team behavior,
manages conflict, resolves issues, and appraises team
member performance.
 As a result of managing the project team, the staffing
management plan is updated, change requests are
submitted, issues are resolved, inputs is given to
organizational performance appraisals, and lessons
learned are added to the organizations database.
 Management of the project team is complicated when
team members are accountable to both a functional
manager and a project manager within a matrix
organization.
 Effective management of this dual reporting relationship
is often critical success factor for the project, and is
gradually the responsibility of the project manager.
186

7.4 Manage the Project Team
 Wouldn’t it be great if your team members never had
any conflicts? Well, we all know that conflicts are a fact
of life in any project.
 A good project manager knows how to handle conflicts
so they don’t delay or damage the project. And that’s
what the Manage Project Team process is about.
 Project managers must lead their teams in performing
various project activities.
 After assessing team performance and related
information, the project manager must decide:
◦ If changes should be requested to the project.
◦ If corrective or preventive actions should be
recommended.
◦ If updates are needed to the project management plan
or organizational process assets.
187

Reasons of Conflicts
 Resources are scarce—that’s why you have to negotiate
for them. Have you ever been in a situation where there’s
a “good” conference room, or top-performing team
member, or even that photocopy machine that always
seems to be in use? Well, that’s a scarce resource. No
wonder resources cause so many conflicts.
 Priorities mean one project or person is more important
than another, and gets more budget, resources, time,
prestige, or other perks/incentives. If the company’s
priorities aren’t crystal clear, then conflicts are definitely
going to happen.
 Schedules decide who gets what, when. Have you ever
had a client, sponsor, or stakeholder get upset because
your project won’t come in as early as he or she wanted it
to? Then you’ve had a conflict over schedules. These
three things are the source of over 50% of all conflicts!
188

Reasons of Conflicts
 Personalities are always clashing. Sometimes two
people just don’t get along, and you’re going to have
to find a way to make them work together in order to
get your project done.
 Cost disagreements seem to come up a lot,
especially where contracts are involved. Even when
the price is agreed upon up front, buyer’s remorse will
set in, and it will lead to issues.
 Technical opinions are definitely a reason that
conflicts happen, because it’s really hard to get an
expert to change his/her mind…so when two of them
disagree, watch out!
189

Tools and Techniques for Managing Project
Teams
Inputs
 Human resource management
plan
 Team performance assessments
 Issue log
 Work performance reports
Tools & Techniques
 Observation and conversation
 Project Performance Appraisals
 Conflict management
 Interpersonal skills
Outputs
 Change requests
updates
updates
updates
190

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 few members.
191

General Advice on Teams
(cont’d)
 Plan some social activities to help project team
members and other stakeholders get to know each
other better.
 Stress team identity.
 Nurture team members and encourage them to
help each other.
 Take additional actions to work with virtual team
members.
192

Development
 Developing the employee can be
regarded as investing in a valuable
asset
◦ A source of motivation
◦ A source of helping the employee fulfil
potential
193

Why People Leave Their
Jobs?
 They feel they do not make a difference.
 They do not get proper recognition.
 They are not learning anything new or
growing as a person.
 They do not like their coworkers.
 They want to earn more money.
194

Unit 8: Project Communications
Management
 Project communication management is the knowledge area
that employs the process required to ensure timely and
appropriate generations, collection, distribution, storage,
retrieval and ultimate disposition of project information.
 The project communications management process
provides the critical links among people and information
that are necessary for successful communications.
 Project managers can spend an inordinate amount of time
communicating with the project team, stakeholders,
customer, and sponsor.
 Everyone involved in the project should understand how
communications affect the project as a whole.
195

Meaning, Concept , & Functions of Communication
196
 Communication: -
 helps us belong to a society
 entails establishing relationships with other people.
 means sending & receiving info or messages.
 comes from the Latin word “communis”-to make
common.
 is the process of transmitting meaning b/n individuals,
organizations, groups.
 is the form of interaction that takes place through
symbols.
 is not simply the verbal, explicit & interaction
transmission of messages.
196

Communication...
197
 Communication involves the following components: -
 is a process of understanding & sharing of ideas, facts,
feelings
 involves interaction & relationship among members of a
social system.
 is transmission or exchange of info, ideas, emotions, skills.
 is a mechanism by which power is exercised.
 is a process by which various people are linked to achieve a
common goal.
197

198

Source

Message

Channel

Receiver
Response
Receptors
Feedback
Noise
There are four main elements (green-coloured) and
four sub-elements of communication (the rest).
Elements in the communication process
198

Elements in the communication
process...
199
 Source: the origin of the message (individual or institution)
 Encoding: translation of ideas into a set of symbols
(languages, gestures, and pictures are some of the symbols)
 Message: stimulus being conveyed.
 Channel: medium or means by which a message is
transmitted.
 Receiver: one who perceives the sender’s message.
 Decoding: the process by which the receiver interprets &
translates the message to get meaning out of it.
 Feedback: the response of the receiver to the sender’s
message.
199

Deriving meaning of
communication
200
 Communication: -
 is not as simple as sending and receiving messages.
 there could be a difference between intended and perceived
message.
 in a face-to-face communication, the outcome is negotiated.
 at the interpersonal level, communication is an interactive
process.
200

Deriving meaning of communication...
201
 Interpersonal communication achieves meaning based on
three conditional factors:
 a base of common experience
 some system to reference the base
 a relationship that leads to the achievement of meaning ( a
sense-making act)
To achieve meaning, the communicants must recognize the intent
of communication.
201

Characteristics of Communication
Communication has the following four characteristics
 Continuous: - because a person does not stop
communicating
 Personal: - because the meaning depends on how we
interpret the message.
 Circular: - because it is difficult to identify the point where
communication begins and ends.
 Irreversible: - because once something is said or written
and reaches the receiver, the act becomes irreversible.
202

Levels of Communication
There are four levels of communication:
1. Interpersonal-occurs b/n two or more persons in a face-to-
face situation
2. Group – occurs b/n individuals as members of a group
3. Organization- occurs within an organization which is
hierarchically structured
4. Mass- consists of transmission of messages from a single
organizational point to mass audience who do not have
direct access to the sender.
203
203

Media of Organizational
Communication
 Organizational communication can take several forms:
 Oral: -helps us get feedback immediately. But very difficult to
maintain the consistency & accuracy of a message.
 Written: -provide records and references. Possible to maintain
uniformity, & accuracy of the message.
 Visual: - draw the attention of the audience & is effective
 Non-verbal: - facial expressions, gestures & body movements.
204
204

Problems in Organizational
Communication
 Barriers in Communication
1. Problems in Perception: - perception problems because of differences in
backgrounds, knowledge & experiences.
2. Semantic Problems: - problems of encoding & decoding (because of
language capacity).
3. Poor expression of Messages: - jargons should be avoided
4. Unclarified Assumptions: - if a receiver falsely assumes certain things,
which are not intended by the sender, confusions will arise.
5. Interpretation Problems: - sending messages in all languages
understood by all receivers
6. Psychological Barriers: - motivation, fear, love affect how one perceives
messages.
7. Poor Credibility of Communication: - perceived credibility of the
communicator.
8. Organizational Barriers: - organizational structure
205
205

Factors influencing perception
 The target of all communication is the receiver.
 Hence, how s/he perceives the message is important.
 This is because there can be a differnce in meaning
perceived by the receiver (difference b/n intended and
perceived messages).
 Different people perceive the same stimuli differently.
 How we react to stimuli depends on how we perceive them.
 Various factors influence our perceptions:
 Selectivity- we choose a few stimuli to respond to.
 Culture, capacity, experience, attitudes matter on how we
perceive stimuli.
206
206

Factors influencing perception...
1. Psychological set-having a mindset in us about the world
because of our experience or hearsay. This is prejuging.
2. Sensory organization-we organize the info supplied to us by
our sensory organs based on their resemblance and
arrangement.
3. Form- it is easier to notice what is organized and structured
than what is not.
4. Closure-refers to our ability to fill up gaps according to the
logic of the message. E.g. 500 + 500 = 100. You know that „0“
is missing.
5. Common-fate - noticing figures sharing common fate (moving
207
207

Communication Models
Models are important for two things:
 To know the interrelated behaviour needed for communication
 To signle out each part of the communication process
Lasswell Model- one of the earliest models(best model)
- 'who says what, in which channel, to whom, with what effect?'
- implies that more than one channel carries a message.
who says what channel to whom with what
effect
208
Communicator Message Medium Receiver Effect
208

Project Communications
Management
 Communications Management makes sure
everybody gets the right message at the right time.
 The project communications Management processes
include the following;
8.1 Plan Communications Management-determining
the information and communication needs of the
project stakeholders.
8.2 Manage Communications-making needed
information available to project stakeholders in a
timely manner
8.3 Monitor Communications– collecting and
distribute performance information. This includes
status reporting, progress measurement, and
forecasting.
209

8.1 Plan Communications Management
 Every project should include some type of
communications management plan, a document that
guides project communications
 The communications planning process determines the
information and communications needs of the
stakeholders; for example, who needs what information,
when they will need it, how it will be given to them, and by
whom.
 While all projects share the need to communicate project
information, the informational needs and methods of
distribution vary widely.
 Identifying the informational needs of the stakeholders
and determining a suitable means of meeting those needs
is an important factor for project success.
 On most projects, thee majority off communications
planning is done as part of earliest project phases.
210

8.1 Plan Communications
Management…
Inputs
 Stakeholder register
factors
assets
Tools & Techniques
 Communication
requirements Analysis
 Communication technology
 Communication models
 Communication methods
 Meetings
Outputs
 Communications
management plan
211

Communications Management Plan
Contents
 A description of a collection and filing structure for
gathering and storing various types of information
 A distribution structure describing what information
goes to whom, when, and how
 A format for communicating key project information
 A project schedule for producing the information
 Access methods for obtaining the information
 A method for updating the communications
management plans as the project progresses and
develops
 A stakeholder communications analysis
212

8.2 Manage Communications
Inputs
 Communications management
plan
 Work performance reports
factors
Tools & Techniques
 Communication technology
 Communication models
 Communication methods
 Information management
systems
 Performance reporting
Outputs
 Project communications
updates
assets updates
213

8.2 Manage Communications
 Manage Communications is in the Executing
process group, because it happens while the work
is being done.
 You need to make sure everybody gets the
information they need while they’re working, so that
they’re completely equipped to get their jobs done.
 Here’s where you get the information out to the
people and make sure that the right people have
the info they need.
 90% of a project manager’s job is communication.
214

Conflict Handling Modes, in Preference
Order
 Confrontation or problem-solving: directly face a
conflict
 Compromise: use a give-and-take approach
 Smoothing: de-emphasize areas of differences
and emphasize areas of agreement
 Forcing: the win-lose approach
 Withdrawal: retreat or withdraw from an actual or
potential disagreement
215

8.3 Control Communications
Inputs
 Project communications
 Issue log
Tools & Techniques
 Information management
systems
 Expert judgment
 Meetings
Outputs
 Work performance information
 Change requests
updates
updates
216

8.3 Monitor Communications
 Monitor Communications is in the Monitoring and
Controlling process group.
 You need to constantly monitor and always stay in
control of all of the communication that goes on
throughout the project, whether it’s to communicate
your team’s performance, or to keep stakeholders
up to date on the project.
 This is where you turn all of that work performance
data (like how long it actually took the team to
complete tasks, and actual costs of doing the work
so far) into work performance information (like
forecasted completion dates, and budget forecasts)
that your stakeholders will use to stay informed.
217

Unit 9: Project Risk Management
 Project risk management includes the processes
concerned with conducting risk management
planning, identification, analysis, responses, and
monitoring and control on the project; most of these
processes are updated throughout the project.
 The objectives of project risk management are to
increase the probability and impact of positive
events, and decrease the probability and impact of
events adverse to the project.
218

219
What is Risk?
 A risk is any uncertain event or condition that might
affect your project. (Not all risks are negative)
 Risk
◦ A possible future event if occurs will lead to an
undesirable outcome.
 Project Risk
◦ The cumulative effect of the chances of an
uncertain occurrence that will adversely affect
project objectives.
 Risk Management
◦ A systematic and explicit approach for identifying,
quantifying, and controlling project risk.
◦ Risk = f(event, uncertainty, damage)
◦ Risk = f(hazard, safeguard)

220
Project Risk Management
•Project risk management is the art and
science of identifying, assessing, and
responding to project risk throughout the
life of a project and in the best interests of
its objectives
•Project risk is the cumulative effect of the
chances of uncertain occurrences
adversely affecting project objectives

221
Purpose of Risk Management
1. Identify factors that are likely to impact the project
objectives of scope, quality, cost, resources and time
2. Quantify the likely impact of each factor
3. Give a baseline for project non-controllables
4. Mitigate impacts by exercising influence over project
controllables

222
Benefits of Risk Management
 More and better information is available
during planning and decision making
 Project objectives are verified
 Improved communications
 Higher probability of project success
 Proactive approach
 Project might be canceled

223
Project Risk
Project Risk
Scope
Integration
Communication
Human Resources
Procurement
Cost
Quality
Time
Stakeholders

224
INTEGRATING RISK
PROJECT
MANAGEMENT
INTEGRATION
SCOPE
QUALITY
TIME
COST
HUMAN
RESOURCES
CONTRACT /
PROCUREMENT
INFORMATION /
COMMUNICATIONS
PROJECT
RISK
Life Cycle and
Environment Variables
Services, Plant, Materials:
Performance
Cost Objectives,
Restraints
Time Objectives,
Restraints
Expectations
Feasibility
Ideas, Directives,
Data Exchange Accuracy
Requirements
Standards
Availability
Productivity
Interests/expectations
STAKEHOLDERS

225
TYPES OF RISK
 Knowns (certainty)
◦ An item or situation containing no uncertainty
 Known Unknowns (probability)
◦ Things which we know exist but do not know how
they will affect us. These can be identified and
evaluated.
 Unknown Unknowns (Uncertainty)
◦ Those risks that cannot be identified and
evaluated (unexpected needs). These can be
handled via contingency allowances.

9.1 Plan Risk management: deciding how to approach,
plan, and execute the risk management activities for a
project.
9.2 Identify Risks: The first thing you need to do when
planning for risks is to gather the team together and
come up with a list of every possible risk you can think
of. The RBS you created during Plan Risk Management
will make it a lot easier to do this.
9.3 Perform Qualitative Risk Analysis: Once you’ve got a
list of risks, you’ll need to get a good idea of the
probability and impact of each risk. Remember the
probability and impact guidelines in the Risk
Management plan. This is where you use them to assign
a probability and impact to each risk! Perform Qualitative
Risk Analysis helps you prioritize each risk and figure out
its probability and impact. 226

9.4 Perform Quantitative Risk Analysis: By the time you
get here, you’ve got a list of risks, with a probability and
impact assigned to each. That’s a great starting point, but
sometimes you need more information if you want to make
good decisions.
 You can make better decisions with more precise
information. That’s what this process is about—assigning
numerical values for the probability and impact of each risk.
9.5 Plan Risk Responses: All that’s left now is to plan
responses to each risk! This is where you decide whether
to avoid, mitigate, transfer, or accept…and how you’ll do it!
The goal of all of the risk planning processes is to produce
the risk register. That’s your main weapon against risk.
9.6 Implement Risk Responses: PMBoK 6th edition
9.7 Control Risks: When it comes to risk, the earlier you can
react, the better for everybody. 227

9.1 Plan Risk Management
 Plan Risk Management is the process of defining how
to conduct risk management activities for a project.
 The key benefit of this process is it ensures that the
degree, type, and visibility of risk management are
commensurate with both the risks and the importance
of the project to the organization.
 The risk management plan is vital to communicate with
and obtain agreement and support from all
stakeholders to ensure the risk management process
is supported and performed effectively over the project
life cycle.
 The Risk Management plan is your guide to identifying
and analyzing risks on your project. It tells you who
identifies and analyzes the risks, how they do it, and
how often it happens.
228

 Risk Management Plan tells you how you’re going to
handle risk on your project—which you probably guessed,
since that’s what management plans do.
 It says how you’ll assess risk on the project, who’s
responsible for doing it, and how often you’ll do risk
planning (since you’ll have to meet about risk planning
with your team throughout the project).
 In planning risk management, all approved subsidiary
management plans and baselines should be taken into
consideration in order to make the risk management plan
consistent with them.
 The risk management plan is also a component of the
project management plan.
 The project management plan provides baseline or
current state of risk-affected areas including scope,
schedule, and cost.
229

 The plan has parts that are really useful for managing risk:
 It has a bunch of risk categories that you’ll use to
classify your risks.
 Some risks are technical, like a component that might turn
out to be difficult to use. Others are external, like changes
in the market or even problems with the weather. Risk
categories help you to build a risk breakdown structure
(RBS).
 You’ll need to describe the methods and approach you’ll
use for identifying and classifying risks on your project.
 It’s important to come up with a plan to help you figure out
how big a risk’s impact is and how likely a risk is to
happen.
 The impact tells you how much damage the risk will cause
to your project.
 A lot of projects classify impact on a scale from minimal to230

 Careful and explicit planning enhances the probability
of success for other risk management processes.
 Planning is also important to provide sufficient
resources and time for risk management activities and
to establish an agreed upon basis for evaluating risks.
 The Plan Risk Management process should begin
when a project is conceived and should be completed
early during project planning.
 You should build guidelines for risk categories into your
Risk Management plan, and the easiest way to do that
is to use a risk breakdown structure (RBS). Notice
how it looks a lot like a WBS? It’s a similar idea—you
come up with major risk categories, and then
decompose them into more detailed ones.
231

 The risk management plan is a component of the project
management plan and describes how risk management activities
will be structured and performed. The risk management plan
includes the following:
 Methodology. Defines the approaches, tools, and data sources
that will be used to perform risk management on the project.
 Roles and responsibilities. Defines the lead, support, and risk
management team members for each type of activity in the risk
management plan, and clarifies their responsibilities.
 Budgeting. Estimates funds needed, based on assigned
resources, for inclusion in the cost baseline and establishes
protocols for application of contingency and management
reserves.
 Timing. Defines when and how often the risk management
processes will be performed throughout the project life cycle,
establishes protocols for application of schedule contingency
reserves, and establishes risk management activities for inclusion
in the project schedule. 232

9.2 identify Risks
 Identify Risks is the process of determining which risks
may affect the project and documenting their
characteristics.
 The key benefit of this process is the documentation of
existing risks and the knowledge and ability it provides
to the project team to anticipate events.
 Identify risks is an iterative process, because new
risks may evolve or become known as the project
progresses through its life cycle.
233

9.3 Perform Qualitative Risk
Analysis
 Perform Qualitative Risk Analysis is the process of
prioritizing risks for further analysis or action by
assessing and combining their probability of
occurrence and impact.
 The key benefit of this process is that it enables
project managers to reduce the level of uncertainty
and to focus on high-priority risks.
 Perform Qualitative Risk Analysis assesses the
priority of identified risks using their relative
probability or likelihood of occurrence, the
corresponding impact on project objectives if the
risks occur, as well as other factors such as the time
frame for response and the organization’s risk
tolerance associated with the project constraints of
cost, schedule, scope, and quality.
234

9.3 Perform Qualitative Risk
Analysis
 Such assessments reflect the risk attitude of the
project team and other stakeholders. Effective
assessment therefore requires explicit identification
and management of the risk approaches of key
participants in the Perform Qualitative Risk Analysis
process.
 Where these risk approaches introduce bias into the
assessment of identified risks, attention should be
paid to identifying bias and correcting for it.
 Perform Qualitative Risk Analysis is usually a rapid
and cost-effective means of establishing priorities for
Plan
 Risk Responses and lays the foundation for Perform
Quantitative Risk Analysis, if required.
 It is performed regularly throughout the project life
235

9.4 Perform Quantitative Risk
Analysis
 Perform Quantitative Risk Analysis is the process of
numerically analyzing the effect of identified risks on
overall project objectives.
 The key benefit of this process is that it produces
quantitative risk information to support decision making in
order to reduce project uncertainty.
 Perform Quantitative Risk Analysis is performed on risks
that have been prioritized by the Perform Qualitative Risk
Analysis process as potentially and substantially impacting
the project’s competing demands.
 The Perform Quantitative Risk Analysis process analyzes
the effect of those risks on project objectives. It is used
mostly to evaluate the aggregate effect of all risks affecting
the project. When the risks drive the quantitative analysis,
the process may be used to assign a numerical priority
rating to those risks individually.
236

9.4 Perform Quantitative Risk Analysis
237

Analysis
 How do you quantitatively prioritize a risk? Would you
prioritize the risks with the highest probability of
occurrence or the risks with the greatest monetary impact?
 This is where Expected Monetary Value (EMV) comes to
the rescue in Project Risk Management.
 Beginning With a Qualitative Risk Analysis...
 After conducting a Qualitative Risk Analysis, you’ll have a
list of risks with a priority and urgency assigned.
 By using Expected Monetary Value, you can quantify each
risk to determine whether your qualitative analysis is
backed by numbers.
 Expected Monetary Value is a recommended tool and
technique for Quantitative Risk Analysis in Project Risk
Management.
238

Analysis
 Steps to Calculate Expected Monetary Value (EMV)
 To calculate the Expected Monetary Value in project risk
management, you need to:
1. Assign a probability of occurrence for the risk.
2. Assign monetary value of the impact of the risk
when it occurs.
3. Multiply Step 1 by Step 2.
 The value you get after performing Step 3 is the Expected
Monetary Value.
 This value is positive for opportunities (positive risks) and
negative for threats (negative risks).
 Project risk management requires you to address both
types of project risks.
239

Analysis
 Example:
 Suppose you are leading a construction project. Weather, cost of
construction material, and labor turmoil are key project risks
found in most construction projects:
Project Risk 1 - Weather: There is a 25 percent chance
of excessive rainfall that’ll delay the construction for two
weeks which will, in turn, cost the project $80,000.
Project Risk 2 - Cost of Construction Material: There
is a 10 percent probability of the price of construction
material dropping, which will save the project $100,000.
Project Risk 3 - Labor Turmoil: There is a 5%
probability of construction coming to a halt if the workers
go on strike. The impact would lead to a loss of
$150,000.
240

Analysis
 Expected Monetary Value Calculation for Project
Risk Management
 In this Expected Monetary Value example, we have two
negative project risks (Weather and Labor Turmoil) and a
positive project risks (reduction in Cost of Construction
Material).
 The Expected Monetary Value for the project risks:
 Weather: 25/100 * (-$80,000) = - $ 20,000
 Cost of Construction Material: 10/100 *
($100,000) = $ 10,000
 Labor Turmoil: 5/100 * (-$150,000) = - $7,500
 The project’s Expected Monetary Value based on
these project risks is (cumulative):
-($20,000) + ($10,000) – ($7,500) = -
$17,500 241

Analysis
 Exercise
 You are planning modifications to a car assembly line. You have
identified particular project risks and assessed them as shown
below.
 There is a:
30% probability that parts will be delayed, costing $90,000
60% chance that parts could be produced more efficiently
saving you $60,000
45% chance that parts will not be able to be integrated,
requiring rework costing $43,500
30% chance that workflow processes will be more
streamlined, saving $92,500
20% probability that system and design faults will cause
rework costing $25,000 in corrections
• What is the EMV?
242

Analysis
 The Monte Carlo Technique
 Uses
 Will select input values – pessimistic to most likely to
optimistic and all numbers in between
 A probability distribution is calculated from the iterations
i.e. total cost or completion date based on what was input
– cost estimates or schedule network diagram and
duration estimates
 Calculates
 Number of times each activity is on the critical path
 How sensitive the output is to a change in the activity and
its duration
 Helps to assess and decide on the priority of dealing with
the risks depending on the impact on the project 243

Analysis
 Journey Times example
 Your Project requires a journey from A to B which has
 12 traffic junctions in between, with an average time between
junctions of 10 minutes
 And a wait time of 3 minutes at each junction when it is on red
 Worst case is when all the lights are on red
= (12 x 3) + (12 x 10) = 156 minutes
 Best case is when all the lights are on green
= 12 x 10 only = 120 minutes
 Most probable is when half are on red and half on green
= (12 x 10) + (6 x 3) = 138 minutes
 Need to take other possible combinations into account. This is
what Monte Carlo does via software
244

9.5 Plan Risk Responses
 Plan Risk Responses is the process of developing options and
actions to enhance opportunities and to reduce threats to project
objectives ( Avoid, Mitigate, Transfer,. Accept, exploit, share,
enhance)
 The key benefit of this process is that it addresses the risks by
their priority, inserting resources and activities into the budget,
schedule and project management plan as needed.
 The Plan Risk Responses process follows the Perform
Quantitative Risk Analysis process (if used). Each risk response
requires an understanding of the mechanism by which it will
address the risk. This is the mechanism used to analyze if the
risk response plan is having the desired effect. It includes the
identification and assignment of one person (an owner for risk
response) to take responsibility for each agreed-to and funded
risk response.
 Risk responses should be appropriate for the significance of the
risk, cost-effective in meeting the challenge, realistic within the
project context, agreed upon by all parties involved, and owned
by a responsible person. Selecting the optimum risk response
245

Strategies for Negative Risks
 Avoid. Risk avoidance is a risk response strategy whereby the
project team acts to eliminate the threat or protect the project
from its impact. It usually involves changing the project
management plan to eliminate the threat entirely.
 Transfer. Risk transference is a risk response strategy whereby
the project team shifts the impact of a threat to a third party,
together with ownership of the response. Transferring the risk
simply gives another party responsibility for its management—it
does not eliminate it.
 Mitigate. Risk mitigation is a risk response strategy whereby the
project team acts to reduce the probability of occurrence or
impact of a risk.
 Accept. Risk acceptance is a risk response strategy whereby
the project team decides to acknowledge the risk and not take
any action unless the risk occurs. This strategy is adopted
where it is not possible or cost-effective to address a specific
risk in any other way. 246

Strategies for Positive Risks or Opportunities
 Exploit. The exploit strategy may be selected for risks with
positive impacts where the organization wishes to ensure that
the opportunity is realized. This strategy seeks to eliminate the
uncertainty associated with a particular upside risk by ensuring
the opportunity definitely happens.
 Enhance. The enhance strategy is used to increase the
probability and/or the positive impacts of an opportunity.
Identifying and maximizing key drivers of these positive-impact
risks may increase the probability of their occurrence.
 Share. Sharing a positive risk involves allocating some or all of
the ownership of the opportunity to a third party who is best able
to capture the opportunity for the benefit of the project.
 Accept. Accepting an opportunity is being willing to take
advantage of the opportunity if it arises, but not actively pursuing
it.
247

9.6 Control Risks
 Control Risks is the process of implementing risk response
plans, tracking identified risks, monitoring residual risks,
identifying new risks, and evaluating risk process effectiveness
throughout the project.
 The key benefit of this process is that it improves efficiency of
the risk approach throughout the project life cycle to
continuously optimize risk responses.
 The Control Risks process applies techniques, such as variance
and trend analysis, which require the use of performance
information generated during project execution. Other purposes
of the Control Risks process are to determine if:
◦ Project assumptions are still valid,
◦ Analysis shows an assessed risk has changed or can be
retired,
◦ Risk management policies and procedures are being
followed, and
◦ Contingency reserves for cost or schedule should be modified 249

Unit 10: Project Procurement
Management
 Project Procurement Management includes the processes
necessary to purchase or acquire products, services, or
results needed from outside the project team.
 The organization can be either the buyer or seller of the
products, services, or results of a project.
 Project Procurement Management includes the contract
management and change control processes required to
develop and administer contracts or purchase orders
issued by authorized project team members.
 Project Procurement Management also includes
controlling any contract issued by an outside organization
(the buyer) that is acquiring deliverables from the project
from the performing organization (the seller), and
administering contractual obligations placed on the project
team by the contract.
250

Project Procurement
Management
10.1 Plan Procurement Management—The process
of documenting project procurement decisions,
specifying the approach, and identifying potential
sellers.
10.2 Conduct Procurements—The process of
obtaining seller responses, selecting a seller, and
awarding a contract.
10.3 Control Procurements—The process of
managing procurement relationships, monitoring
contract performance, and making changes and
corrections as appropriate.
10.4 Close Procurements—The process of
completing each project procurement.
251

Project Procurement Management
 A procurement contract includes terms and conditions, and
may incorporate other items that the buyer specifies as to
what the seller is to perform or provide.
 It is the project management team’s responsibility to make
certain that all procurements meet the specific needs of
the project while adhering to organizational procurement
policies.
 Depending upon the application area, a contract can also
be called an agreement, an understanding, a subcontract,
or a purchase order.
 Most organizations document policies and procedures
specifically defining the procurement rules and specifying
who has authority to sign and administer such agreements
on behalf of the organization.
252

10.1 Plan Procurement Management
 Plan Procurement Management is the process of
documenting project procurement decisions, specifying
the approach, and identifying potential sellers.
 The key benefit of this process is that it determines
whether to acquire outside support, and if so, what to
acquire, how to acquire it, how much is needed, and when
to acquire it.
 Plan Procurement Management identifies those project
needs that can best be met or should be met by acquiring
products, services, or results outside of the project
organization, versus those project needs which can be
accomplished by the project team.
 When the project obtains products, services, and results
required for project performance from outside of the
performing organization, the processes from Plan
Procurement Management through Close Procurements
are performed for each item to be acquired. 253

10.2 Conduct Procurements
 Conduct Procurements is the process of obtaining
seller responses, selecting a seller, and awarding a
contract.
 The key benefit of this process is that it provides
alignment of internal and external stakeholder
expectations through established agreements.
 During the Conduct Procurements process, the team
will receive bids or proposals and will apply
previously defined selection criteria to select one or
more sellers who are qualified to perform the work
and acceptable as a seller.
 On major procurement items, the overall process of
requesting responses from sellers and evaluating
those responses can be repeated. A short list of
qualified sellers can be established based on a254

10.3 Control Procurements
 Control Procurements is the process of managing procurement
relationships, monitoring contract performance, and making
changes and corrections to contracts as appropriate.
 The key benefit of this process is that it ensures that both the
seller’s and buyer’s performance meets procurement
requirements according to the terms of the legal agreement.
 Both the buyer and the seller will administer the procurement
contract for similar purposes.
 Each are required to ensure that both parties meet their
contractual obligations and that their own legal rights are
protected.
 The legal nature of the contractual relationship makes it
imperative that the project management team is aware of the
legal implications of actions taken when controlling any
procurement.
 On larger projects with multiple providers, a key aspect of
contract administration is managing interfaces among the
various providers. 255

10.3 Control Procurements
 Control Procurements includes application of the appropriate
project management processes to the contractual relationship(s)
and integration of the outputs from these processes into the
overall management of the project.
 This integration will often occur at multiple levels when there are
multiple sellers and multiple products, services, or results
involved. The project management processes that are applied
may include, but are not limited to:
◦ Direct and Manage Project Work. To authorize the seller’s work at
the appropriate time.
◦ Control Quality. To inspect and verify the adequacy of the seller’s
product.
◦ Perform Integrated Change Control. To assure that changes are
properly approved and that all those with a need to know are aware
of such changes.
◦ Control Risks. To ensure that risks are mitigated.
256

10.4 Close Contracts
 Close Procurements is the process of completing each
procurement.
 The key benefit of this process is that it documents agreements
and related documentation for future reference.
 The Close Procurements process also involves administrative
activities such as finalizing open claims, updating records to
reflect final results, and archiving such information for future use.
 Close Procurements addresses each contract applicable to the
project or a project phase. In multiphase projects, the term of a
contract may only be applicable to a given phase of the project.
 In these cases, the Close Procurements process closes the
procurement(s) applicable to that phase of the project.
Unresolved claims may be subject to litigation after closure. The
contract terms and conditions can prescribe specific procedures
for agreement closure.
 The Close Procurements process supports the Close Project or
Phase process by ensuring contractual agreements are
completed or terminated.
257

Unit 11: Stakeholder
Management
11.1 Identify Stakeholders—The process of identifying the people,
groups, or organizations that could impact or be impacted by a
decision, activity, or outcome of the project; and analyzing and
documenting relevant information regarding their interests,
involvement, interdependencies, influence, and potential impact on
project success.
11.2 Plan Stakeholder Engagement—The process of developing
appropriate management strategies to effectively engage
stakeholders throughout the project life cycle, based on the
analysis of their needs, interests, and potential impact on project
success.
11.3 Manage Stakeholder Engagement—The process of
communicating and working with stakeholders to meet their
needs/expectations, address issues as they occur, and foster
appropriate stakeholder engagement in project activities
throughout the project life cycle.
11.4 Monitor Stakeholder Engagement—The process of monitoring
overall project stakeholder relationships and adjusting strategies
and plans for engaging stakeholders.
258

11.1 Identify Stakeholders
 Identify Stakeholders is the process of identifying the
people, groups, or organizations that could impact or
be impacted by a decision, activity, or outcome of the
project, analyzing and documenting relevant
information regarding their interests, involvement,
interdependencies, influence, and potential impact on
project success.
 The key benefit of this process is that it allows the
project manager to identify the appropriate focus for
each stakeholder or group of stakeholders.
 It is critical for project success to identify the
stakeholders early in the project or phase and to
analyze their levels of interest, their individual
expectations, as well as their importance and
influence.
259

Stakeholder analysis
 Stakeholders: - are people affected by the impact of an activity &
people who can influence the impact of an activity
 Stakeholders are:
 individuals or groups with a direct, significant and specific
stake or interest in a given territory or set of natural
resources and, thus, in a proposed project.
 People affected by the impact of an activity
 People who can influence the impact of an activity
 Participation or stakeholder analysis seeks to identify the major
interest groups involved (all those affected by or involved) in the
project.
 Stakeholder groups are made up of people who share a common
interest, such as an NGO, and the community.
 Categorizing the stakeholders into different groups is important
260
260

Key players
 The project manager
 Is responsible for achieving project
objectives .
 Manages the project:
◦ Planning, organizing, leading, controlling
(monitoring progress)
◦ Communicating, balancing conflicting
requirements, managing stakeholders,
building & inspiring the team
◦ Sharing success, accepts all blame!
261

Key Players…
 SPONSOR– the person or group that provides the
financial resources, in cash or kind, for the project
◦ Project Initiator
◦ Ensures project relevance
◦ Helps in objectives setting
 Customer/user/client– the person or organization that will
use the project/s product.
 Performing organization—the enterprise whose employees
are most directly involved in doing the work of the project.
 Project team members– the group that is performing the
work of the project
 Project management team– the members of the project
team who are directly involved in project management
activities
 Potential opponents: Groups which may oppose or obstruct
a project.
 SUPPLIER-- Provides resources
262

Stakeholder Analysis
 Why stakeholder analysis:
◦ To identify stakeholders’ interests in, importance to, and
influence over the operation
◦ To identify local institutions and processes upon which to build
◦ To provide a foundation and strategy for participation
◦ To develop a strategic view of the human and institutional
situation, and the relationship between the different
stakeholders and the objectives identified.
◦ provides a useful starting point for problem analysis.
◦ It involves the identification of all stakeholder groups likely to be
affected (either positively or negatively) by the proposed
intervention.
263

Stakeholder analysis
 It is a four-step process
1. Identify key stakeholders
2. Assess stakeholder interests and the potential impact of the
project on these interests (expectations, benefits, willingness
to mobilize resources, interests)
3. Assess the stakeholder influence and importance (power,
control of strategic resources)
4. Outline stakeholder participation strategy
264

 Particular effort must always be made to ensure their
participation.
 The full participation of stakeholders in both the
design and implementation of projects is a key (but
not a guarantee) to their success.
 Stakeholder participation: gives local people control
over how project activities affect their lives. It is
essential for sustainability generates a sense of
ownership (if initiated early in the design process)
 The basis of the stake– e.g., customary rights,
ownership, administrative or legal responsibilities,
intellectual rights, social obligations.
265

Stakeholder Analysis…
 Planning workshop provides opportunities for learning for both
the project team and for the stakeholders themselves
 builds capacity and leads to responsibility.
 It is important that stakeholder participation not be exclusive, or
controlled by any one group.
 Once the project has found common ground, and has negotiated
its goal with partners including local stakeholders, the
stakeholder agreement should be recorded in writing.
 This may seem overly formal, but it has been shown time and
again to provide clarity, and to help avoid (or resolve) conflict in
the future.
266

 Risks in stakeholder analysis
 The analysis is only as good as the information used.
Sometimes it is difficult to get the necessary information, and
many assumptions will have to be made
 Tables can oversimplify complex situations
 Ways of stakeholder analysis
 There are a number of ways of doing stakeholder analysis.
 The approach taken vary depending on the type of a project
being proposed. For example, for an advocacy project, we
would need to consider different aspects of stakeholders than
we would for a development project
 Ideally, stakeholder analysis should be carried out with
representatives of as many stakeholder groups as possible.
267

Stakeholder analysis matrix
…
Stakeholders
and their basic
characteristics
Interests and
how affected by
the problem(s)
Capacity and
motivation to
bring about
change
Possible
actions to
address
stakeholde
r interests
Stakeholder 1 Keen interest in
reducing the
problem
Awareness
raising?,
lobby?
Stakeholder 2
Stakeholder 3
Stakeholder 4
268

Method of Carrying out a Stakeholder analysis…
 List all the possible stakeholders in the project. Divide these into
primary and secondary stakeholders
 In the second column, write down the interests of each stakeholder in
relation to the project and its objectives
 In the third column, write down the likely impact of the project on each
stakeholder’s interests. This enables you to know how to approach the
different stakeholders throughout the course of the project. Use
symbols as follows:
+ potential positive impact on interest,
- Potential negative impact on interest
+/- possible positive and negative impact on interest
? Uncertain
 In the fourth column, indicate the priority that the project should give to
each stakeholder in meeting their interests. Use the scale 1 to 5 , where
1 is the highest priority
Step 1: Stakeholder analysis matrix
269

 Example 1: A community identified their priority need as improved access
to safe water and produced the following table
Stakeholders Interests Likely impact Priority
Primary
Local community Better health + 1
Women Better health, Walk less far
to collect water, Opportunity
to socialize, Safety while
collecting water
+ 1
Children Better health, walk less far
to collect water, time to
play
+ 1
Water sellers income - 1
Secondary
Community health
workers
Reduced workload, income + 2
Health NGOs Better health + 3
MoH Achievement of targets + 4
Donors Effective spending of funds,
achievement of objectives
+ 4
270

Step 2: Table showing influence and importance of stakeholders
 Influence:- is the power that stakeholders have over the project
 Importance:- is the priority given by the project to satisfy the needs and
interests of each stakeholder
 Some stakeholders will have more influence on the project than others
 While some are in a position to influence the project so that it is successful,
there might be others who feel threatened by it
A B
D C
Influence
High
Low High
Low
Importance
271

A B
D C
Power
Interest
Low High
High
273

 Answers to the exercise
Boxes A, B and C are the key stakeholders of the project. They can
significantly influence the project or are most important if project
objectives are to be met
Box A:- Stakeholders of high importance to the project, but with low
influence. They need special initiatives to ensure their interests are
protected
Box B:- Stakeholders of high importance to the project, who can also
influence its success . It is important to develop good working
relationships with these stakeholders to ensure adequate support for the
project
Box C:- Stakeholders with high influence who can affect the project impact,
but whose interests are not the target of the project. These stakeholders
may be the source of risk. Relationships with these stakeholders are
important
Box D:- Stakeholders of low priority but who may need limited monitoring
and evaluation to check that they have not become high priority
274

Syndicate Exercise
 Exercise 1:
 Go through the list of stakeholders on the stakeholder table
completed in example 1.
 Think about the amount of influence they have and the extent
to which the project is important to them
 Give each stakeholder a number and put the number in the
place on the table above where the stakeholder falls
 If they have high influence, place them towards the right of the
table
 If the project is important for them, move the number upwards
towards the top of the table
275

Method of Carrying out a Stakeholder
analysis…
A B
D C
3
8
1
2
4
6
7
5
High
Low
High
Low
Influence
I
mportanc
e
Primary Stakeholders
1.Local community
2.Women
3.Children
4. Water sellers
Secondary Stakeholders
5. Community health workers
6. Health NGOs
7. Ministry of Health
8. Donors
276

analysis…
Step 3: Identify appropriate stakeholder participation
Participation is essential in development work, but in practice it is a
concept that has been misused
Participation means different things to different people in different
situations
In its widest sense, participation is the involvement of people in
development projects
For example, someone can be said to participate by:
 Attending a meeting, even though they do not say anything
 Taking part in the decision-making process
 Contributing materials, money or labor
 Providing information
 Answering questions for a survey
Often, so-called participatory projects do not actively involve stakeholders
(especially primary stakeholders) in decision-making and development
projects
277

analysis…
 Stakeholder participation in decision-making throughout the whole
project cycle is likely to result in:
 Improved Effectiveness-increased sense of ownership
 Enhanced Responsiveness- project targets effort and inputs at
perceived needs
 Improved Efficiency- the project is likely to stay within budget and
finish on time
 Improved Sustainability and Sustainable Impact-more people are
committed to carrying on the activity after outside support has stopped
 Empowerment and Increased Self-reliance –skills and confidence
 Improved Transparency and Accountability-because stakeholders are
given information and decision-making power
 Improved Equity-if the needs, interests and abilities of all stakeholders
are taken into consideration
278

 Active participation is likely to have many benefits, although it is
not a guarantee of project success
 Achieving full participation is not easy. It can also take a lot of
time, and conflicting interests are likely to come to the surface
Coercion
Co-operation/
Partnership
Control,
collective action or
Co-learning
Informing
Consultation
Decided by ourselves
Decided by others
Levels of participation
Being manipulated;
No real power
Being informed,
others set the agenda
Being consulted,
Others analyze and
Decide course action
Work with
others
Little input
by others
279

 Partnership is the type of participation in which two or more
stakeholders share in decision-making and the management of the
activity
 Ideally, this is partnership between project staff and the beneficiaries.
 However, achieving partnership with primary stakeholders can be
challenging
 A number of problems can arise:
 Partnership may be seen by primary stakeholders as too costly in time and
money when compared with the benefit expected
 Primary stakeholders may lack appropriate information for effective
decision-making
 Some primary stakeholder groups may challenge the right of other groups
to participate. E.g., women may be excluded from participating in a village
water committee
 Organizations may have a management structure that does not encourage
primary stakeholder participation
280

Syndicate Exercise
 Is partnership easy?
 How might the challenges of partnership be overcome?
 To identify the level of participation, which is appropriate for different
stakeholders, draw a summary participation matrix similar to the one
below
 The columns represent the levels of participation and the rows stand
for the stages of the project cycle
 Work through the list of stakeholders in the stakeholder matrix
 Think about the extent to which thy should participate for each stage
of the project cycle
 Consider the amount of interest or influence they have
 Ensure that primary stakeholders participate as fully as possible to
encourage ownership of the project
281

Type of Participation
inform consult partnershi
p
control
Identification
Design
Implementation
and Monitoring
Reviewing
Evaluation
Stage
in
Project
During the project cycle we might find that stakeholders,
who we thought should participate to a great extent, are
actually not interested in participating. Or we might find
that to be responsive to how the project is going, we want
to encourage some stakeholders to participate more
282

 Example: The rural community identified their priority need as improved access to safe water,
and filled in a matrix table with the following information
Type of Participation
inform consult partnership control
Identification Health NGOs
Donor
Cross section of
community
Design Donor Community
Women
Children
Water Sellers
Health Workers
Health NGOs
MoH
Local Church
Project
Staff
Implementation
and Monitoring
Donor Women,
Children
Water sellers
Local church
Health workers
Project
Staff
Reviewing Donor Women,
Children
Water sellers
Local church
Health workers
Evaluation Donor MoH
Health NGOs
Community
Stage
in
Project
283

 Dam Project
 Villagers are concerned about a new dam which has been
proposed in their valley.
 The dam will help provide drinking water for the city.
 It is decided that the project should focus on ensuring the views
of villagers are listened to so that their livelihoods are not
adversely affected.
284

Bank
Municipality
Commercial farms
City
villages
Flooded area
Proposed dam
Proposed pumping station
285

Exercise
 Complete a summary participation matrix for the dam project
 When the table is completed, think about how participation of
stakeholders might actually happen
 For example, if we think a women’s group should be consulted at the
planning stage, consider how this might be carried out
 We might decide to hold a special meeting
 It is important to consider our options so that we can ensure those
who we think should participate in the project respond to our invitation
 The community should select representative members
 Encourage them to ensure a good gender balance
 These members might then require training and discussion of their
expected roles and responsibilities in the project
 Identify the different stakeholders of the proposed dam by identifying
primary and secondary stakeholders
286

List interest Likely
impact
Priority
1 City dwellers
2 Villagers
3 Commercial farms
4 Donors
5 MoW
6 Water sellers
287

11.2 Plan Stakeholder Engagement
 Plan Stakeholder Engagement is the process of
developing appropriate management strategies to
effectively engage stakeholders throughout the
project life cycle, based on the analysis of their
needs, interests, and potential impact on project
success.
 The key benefit of this process is that it provides a
clear, actionable plan to interact with project
stakeholders to support the project’s interests.
288

11.3 Manage Stakeholder
Engagement
 Manage Stakeholder Engagement is the process of
communicating and working with stakeholders to meet their
needs/expectations, address issues as they occur, and foster
appropriate stakeholder engagement in project activities
throughout the project life cycle.
 The key benefit of this process is that it allows the project
manager to increase support and minimize resistance from
stakeholders, significantly increasing the chances to achieve
project success.
 Manage Stakeholder Engagement involves activities such as:
◦ Engaging stakeholders at appropriate project stages to obtain
or confirm their continued commitment to the success of the
project;
◦ Managing stakeholder expectations through negotiation and
communication, ensuring project goals are achieved;
◦ Addressing potential concerns that have not yet become issues
and anticipating future problems that may be raised by
stakeholders. Such concerns need to be identified and
289

11.4 Monitor Stakeholder
Engagement
 Control Stakeholder Engagement is the process of monitoring
overall project stakeholder relationships and adjusting
strategies and plans for engaging stakeholders.
 The key benefit of this process is that it will maintain or
increase the efficiency and effectiveness of stakeholder
engagement activities as the project evolves and its
environment changes.
290

What more can do for your group
Assignment?
 Project cost Analysis
 Quality assurance measure
 HR analysis
 Risk Analysis
 Stakeholder Analysis
291

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