Project Management Professional (PMP) Training &NEW

Project Management Professional
(PMP) Training & Certification

Mohammad Amawi, PMP, PMOC
Orange Amman
May 19th- 30th, 2013
Getting Acquainted
Name
Title
Why are you here?
What do you want to learn from this course?
A little known fact
Ground Rules
Material & Book(s)
Time & Breaks
Smoking
Mobile Phones
Side Talks
Respect
Ask, ask, ask
How This Training is Delivered

Lectures
Exercises
Group Work
Discussions
Quizzes
Basic definitions
PMI
Non-for-profit Professional Association
Started in 1969
Over 400,000 members worldwide
In more than 160 countries
PMIs Membership
PMPs Certified
What is PMP?
A Credential initiated by PMI in 1984 Project
Management Professional
Demonstrate to employers, clients and colleagues that
project managers possess project management

knowledge, experience and skills to bring projects to
successful completion
The most recognized credential in project management
worldwide
Getting Certified
Title
CAPM
PMP
Full Name
Certified Associate in Project

Management
Project Management
Professional
Project Role
Contributes to project team
Leads and directs project

teams
Eligibility
Requirements
Candidate holds a baccalaureate

university degree.
Candidate holds a
baccalaureate university
degree.
25 contact hours of Project

Management training including all
nine knowledge areas of project
management.
4,500 hours of Project

Management Experience.
36 non overlapping months
of Project Management
Experience.
At least three years of project
experience within last six
years of experience.
35 contact hours of Project
Management training
including all nine knowledge
areas of project management
Exam
150 Questions, 3 hours
200 questions, 4 hours
PMP Exam
4 Hours Web-Based
200 Questions
175 Questions Counted
Passing Score: 107
PMP Exam Structure

Area
No. of Questions
Initiation
26
13
Planning
48
24
Execution
60
30
Monitoring &
Controlling
50
25
Closing
16
PMP Exam
Exam tests:
1- Theoretical Knowledge (PMBOK)
2- Personal Skills
3- Practical Experience
4- Ethics & professional responsibility
Project Management Body

of Knowledge (PMBOK)
Identifies that subset of the PMBOK that is
generally recognized as a good practice

Generally Recognized means the knowledge
and practice described are applicable to most

projects most of the time. There is consensus
about their value and usefulness.
Good Practice means there is a general
agreement that the application of these skills,

tools, and techniques can enhance the chances
of success over a wide range of projects.
Part I
Project Management
Fundamentals
What is a Project?
A Temporary endeavor undertaken to create a

unique Product, service, or result
At Orange
A TTM project is a temporary

endeavour undertaken to create
a unique product or infrastructure or
revamp of existing product or infrastructure
1- Temporary
Definite Beginning (T-1)& End (T4)
End reached when:
Objectives reached
Objectives cannot be met
Need for project no longer exists

Projects are not ongoing efforts
Does not generally apply to outcomes
2- Unique
Products
Capability
Results
Repetitiveness does not change the fundamental
uniqueness of the project
At Orange
Unique means that the product or infrastructure is
different, in some distinguishing way from all other

products or infrastructures.
3- Progressively Elaborative
Developing in steps, and continuing by increments.
Plans get improved and clearer as more information is
obtained and estimates are more accurate.
Example: Progressive
Elaboration
EXAMPLE: BEFORE CONCEPT PHASE
Project
Concept
Design
Implementation
Testing
Handover
Testing Phase
Design Phase
Concept Phase
EXAMPLE: BEFORE DESIGN PHASE
Project
Concept
Design
Handover
Testing
Phase
Design
Phase
Concept
Phase
EXAMPLE: AFTER DESIGN PHASE
Project
Concept
Design
Handover
Testing
Phase
Design
Phase
Concept
Phase
EXAMPLE: FINALLY
Project
Concept
Concept
Concept
Design
Project
Project
Design
Design
Implementation
Handover
Testing
Handover
Handover
Testing Phase
Design
Phase
Concept Phase
Projects Vs. Operation

Operation
Project
Repeating process
One of a kind, temporary

process
No clear beginning or ending
Clear beginning and ending
Same output created each

time the work is performed
Output is unique
Everyone in work group

performs similar functions
Requires multi-disciplined team
27
Exercise 1
Project or Operation
What is Project Management?

Project management is the application of
knowledge, skills, tools and techniques to project

activities to meet project requirements. It includes:
Identifying requirements
Establishing clear & achievable objectives
Balancing the competing demands for quality, scope, time
and cost
Adapting the specifications, plans & approach
What Project Management is Not?
Managing or buying a software.
Preparing a schedule or a bar chart

Preparing progress reports showing accomplishments
Coordinating work and communicating with
stakeholders
For Engineers ONLY

Project Management is a science and art
Project Management Context
Programs & Program Management

Portfolios & Portfolio Management
Project Management Office - PMO
Program Management
A program is a group of related projects managed in a
coordinated way to obtain benefits and control that

cannot be achieved from managing them individually.
Program Management is the centralized coordinated
management of a program to achieve the programs

strategic objectives and benefits.
Program Management
Project
A
Project
B
Objective
(s)
Project
C
Project
D
Portfolio management
A portfolio represents a collection of active programs,
projects and other that are grouped together to facilitate

effective management of that work to meet strategic
business objectives.
Portfolio management, therefore, is the centralized
management of one or more portfolios in order to

achieve specific strategic business objectives.
Focuses on ensuring that projects and programs are
reviewed to prioritize resource allocation, and that the

management of the portfolio is consistent with and
aligned to organizational strategies.
Portfolio Management
Project
(E)
Program A
Project
(F)
Operations
Project Management Offices

(PMOs)
An organizational unit to centralize and coordinate

the management of projects under its domain
The PMO can be understood as :
The organizational entity, staffed with skilled professional

personnel, that provides services in core and supporting areas
during the planning and execution of a project/Program
Can have a wide range of authorities and responsibilities
Takes one of 3 roles:
1- Providing policies, methodologies and templates
2- Provide support and guidance
3- Provide managers for projects, and coordinate managing

them
PMO Types
There are Three types of PMOs that may exist in an organization:
Supportive PMO
Controlling PMO
Directive PMO
Supportive PMO
The most common type of PMO
Its purpose is to empower project managers and teams to

deliver their projects more successfully
It doesn't control or direct projects, instead it focuses on

supporting projects through training, mentoring,
administration and reporting.
Controlling PMO
Offers controlling services (such as project reviews, audits,

assessments and governance), in addition to the supporting
services to get project back on track
Can influence project delivery
It can also enforce standards, implement processes and
manage overall project risk
Directive PMO
This is the least common, but sometimes most effective type of

PMO
It offers directive services, where it does not just support and

control projects, but also responsible for actually running them
Each of the Project Managers report to the PMO Director as

their supervisor. This helps to corral all of the project work
within an organization, to one department
Project Management Offices

(PMOs)
The PMO may:
Manage the interdependencies between projects

Help provide resources
Terminate projects
Monitor compliance with organizational processes
Help gather lessons learned
Be more heavily involved during the project initiation
Be part of the change control board
Be a stakeholder
PMOs-Requirements for Success

1.
Role should be clearly defined
2.
Only one role, dont try to do it all
3.
Commitment and support of top management
4.
All should be PMPs
5.
Improve project performance through the use of proper

processes and techniques
6.
The repercussions of failure!!
The Role of Project Manager
Knowledge
What the Project Manager knows about Project
Management.
Performance
What the Project Manager is able to do or
accomplish while applying his/ her project

management knowledge
Personal
How the Project Manager behaves when
performing the project or related work.

Encompasses:
Attitude
Core personality characteristics
Leadership
Project Manager Interpersonal

Skills
Leadership
Team
Building
Negotiation
Political &
cultural
awareness
Project
Manager
Interpersonal
Skills
Decision
making
Motivation
Communication
Influencing
Discussion
What Makes Great Project Managers-
The Alpha Project Managers
A Joke!
PMBOK Reading
Chapter 1
PART II
Project Management
Framework
Project Lifecycle
A collection of generally sequential and sometimes
overlapping project phases

Phases name and number are determined by:
Management
Nature of the project
Control requirements
Area of application
Can be determined or shaped by the unique aspects of the
organization, industry or technology

Can be documented by a methodology
Project Lifecycle Vs. Product

Lifecycle
Product lifecycle outlives project lifecycle
Project lifecycle is part of product lifecycle
Orange Projects Lifecycle

Time To Go
T-1
Time To Market
T0
Opportunity study
No impact analysis
in Super Fast Track
T1
Detailed design
T2
Development
T4
T3
Deployment
Launch
T1 & T2 in Full Track only
Market animation with no IT impact => Super

Fast Track
Market animation with IT impact => Fast Track
Innovation => Full Track
In Life Management
New product
launched
T4
T5 => Performance
review
on product cluster
T1
New product idea or

a revamp for the
existing product is
studied
T5
Product killed
T6
T6 => End of life review per
product
Cost & Staffing Level
The project through its lifecycle
Project Phases
Divisions within a project where extra control is needed to

effectively manage the completion of a major deliverable.
A deliverable is a measurable, verifiable work product.
Each phase ends with a deliverable
Number and structure of phases is determined by the

organizations control requirements
Some organizations have established policies that standardize

all projects.
Project Lifecycle- Sequential

Phases
Project Lifecycle- Overlapping

Phases
Project LifecycleThe Spiral Model
TTM deliverables
Marketing Deliverables
Customer Journey Deliverables
Financial & regulatory Deliverables

ITN Deliverables
Business processes Deliverables
Sourcing Deliverables
Project Deliverables
Stakeholders
Persons or organizations who are actively involved in the

project, or whose interests maybe positively or negatively
affected by the performance or completion of the project
Project Stakeholders:
Sponsors
Customers/ Users
Vendors/ Suppliers
Project Manager
Project Management Team
Project Team
PMO
Stakeholders
5 Steps to Managing Stakeholders

Identify ALL of them
Determine ALL their requirements
Determine their expectations

Communicate with them
Manage their influence
Organizational influence
Projects dont operate in vacuum, they are influenced
by organizational:
Culture
Style
Structure
Organizations degree of project management

maturity and systems can influence the project
Functional Organization
Also known as Silo organization
Functional managers control resources
Communication happens vertically
Good for operation-oriented organizations, such as
banks, government
Functional Organization
Advantages & Disadvantages
Advantages
Disadvantages
Clear Authority
Career
Development
Controlled
Poor
Coordination
No Project
Accountability
High Politics
Projectized Organization
Also known as No home
Systematic approach to project management

Well defined project management methodology &
lifecycle
Does not support learning & career development
Projectized Organization
Advantages
Disadvantages
Effective
Communication
Project Driven
Coordination
More focused
High Risk
Poor Resource
Utilization
No Home
Matrix organization
Also known as Two Bosses
Has three types:

Weak matrix
Balanced matrix
Strong matrix
Weak Matrix
Balanced Matrix
Strong Matrix
Advantages
Disadvantages
Project Manager
Assigned.
Communication and
Coordination
Visible Project
Objectives
Two Bosses
Competition of Priorities
Hard to Control
Tough Resource
Allocation
Project Management Process

Groups
Monitoring &
Controlling Processes
Planning
Processes
Initiation
Processes
Closing
Processes
Execution
Processes
Project Management Process

Groups
A version of Demings Cycle
Plan Do Check- Act (PDCA)
Interaction Between Process

Groups
Level of
Process
Interaction
Initiation Planning Execution Monitoring &

Process Process Process Control Process Closing
Process
Group
Group
Group
Group
Group
The Project Life Cycle
Project Management Knowledge

Areas
Project Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resources Management
Project Communication Management
Project Risk Management
Project Procurement Management
Project Integration Management

Includes the processes needed to identify, define, combine,
unify & coordinate the various processes and project

management activities within the Project Management
Process Groups
The processes required to ensure that the project includes all
the work required, and only the work required, to complete

the project successfully.
Project Time Management
The processes required to manage timely completion of the
project.

The processes involved in estimating, budgeting &
controlling costs so that the project can be completed within

the approved budget

Processes and 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.
Project Human Resources

Management
Processes that organize, manage, and lead the project team.
Project Communication
Management
Processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval, and

ultimate disposition of project information.
Project Risk management

Processes of conducting risk management planning,
identification, analysis, response planning, and monitoring

and control of the project.
Project Procurement
Management
Processes necessary to purchase or acquire products,
services or results needed from outside the project team.
Project Stakeholder Management

The processes required to identify people, groups, or
organizations that could impact or be impacted by the

project, to analyze stakeholders expectations and
their impact on the project, and develop appropriate
management strategies for effectively engaging
stakeholders in project decisions and execution.
Project Management Process Groups

Knowledge
Areas
4.Project
Integration
management
5. Project scope
management
6. Project time
management
Initiating
Process
Group
4.1 develop
Project charter
Planning
Process
Group
4.2 develop
Project
Management
plan
5.1 Plan Scope

Management
5.2 collect
requirements
5.3 define scope
5.4 create WBS
6.1Plan Schedule
Management
6.2 Define
Activities
6.3 Sequence
Activities
6.34stimate
Activity resources
6.5Estimate
Activity durations
6.6 Develop
Schedule
Executing
Process
Group
4.3 direct and

Manage project
work
Monitoring
& controlling
Process
Group
4.4 monitor and

control project
work
4.5 perform
Integrated
Change
control
5.4 validate scope

5.5 control scope
6.6 Control
Schedule
Closing
Process
Group
4.6 close project or

phase

Knowledge
Areas
Initiating
Process
Group
Planning
Process
Group
Executing
Process
Group
7. Project cost
management
7.1 Plan Cost

Management
7.2 Estimate costs
7.3 Determine
Budget
8. Project quality
management
8.1 Plan Quality

Management
8.2 perform
Quality Assurance
9. Project Human
Resource
Management
9.1 Plan Human

Resource
Management
9.2 Acquire Project

Team
9.3 Develop project
Team
9.4 Manage Project
Team
10. Project
10.1 Plan
Communications
Management
10.2 Manage
Communications
Communications
Management
Monitoring
& controlling
Process
Group
7.3 Control Costs
8.3 Control Quality
10.3 Control
Communications
Closing
Process
Group
Knowledge
Areas
Initiating
Process
Group
Planning
Process
Group
Executing
Process
Group
Monitoring
& controlling
Process
Group
11.Project risk
management
11.1 Plan Risk

Management
11.2 Identify Risks
11.3 Perform
Qualitative Risk
Analysis
11.4 Perform
Quantitative Risk
analysis
11.5 Plan Risk
Responses
12. Project
Procurement
Management
12.1 Plan
Procurement
Management
12.2 Conduct
Procurements
12.3 Administer
Procurements
13.2 Plan
Stakeholder
Management
13.3 Manage
Stakeholder
Engagement
13.4 Control
Stakeholder
Engagement
13 Project
Stakeholder
Management
13.1 Identify
Stakeholders
Closing
Process
Group
11.6 Control Risks
12.4 Close
Procurements
How do we define success?

On time
Within budget
Scope integrity
Achieving quality
Scope
Chaos Report
31.1% of projects will be cancelled before they ever get
completed
52.7% of projects will cost 189% of their original
estimates
Only 16.2% of projects were completed successfully
Why Projects Fail?
A subject for discussion
The Opera House ProjectSydney

Original cost estimate (in 1957) was US$ 7 million.
The original completion date was 26 January 1963.
Finally, the Opera House was formally completed in
1973, having cost $102 million.
Quiz
The Three Main Ones

Among the following factors, which is the most important
contributor to project failure??!!
No User
Involvement
Lack of
Executive
Management
Support
Unclear Objectives
Reason 1
Lack of User Involvement
Correctly identify proper user
Develop and Maintain a quality relationship with the
client
Create and maintain a platform for communication
Demonstrate results
Educate the client
Consider their feedback
Identify and recruit an evangelist
Conduct primary research
Show respect
Focus on real user needs
Reason 2
No Executive Management Support
Have a simple vision
Get clear commitment
Make fast decisions
Have a decision pipeline
Focus of education
Use measurements
Understand how and why you need to
negotiate
Have a well thought plan
Have a kill switch
CELEBRATE
Reason 3
Absence of clear business objectives
Make sure everyone understands the project's
objectives
Elevator pitch
Consider the big picture
Promote speed and clarity
Have a yardstick
Use RoI
Collaborate with team members
Use peer review
Avoid having too many cooks
Do your homework
The Three Pillars

The first three reasons cause the failure of around 50% of
failed projects.
They are also the simplest to implement, assess, and test.
So Why Projects Still Fail?!
The Five Deadly Sins of Project

Management
1- Ambition
Trying to do too much, too fast, and without sufficient
resources.
2- Arrogance
Ignoring and overriding user input, and forcing
implementation of ones perception of how things should
work.
3- Ignorance
Do everything that the old system did.
4- Fraudulence
Misleading or incomplete information.
5- Abstinence
When key people dont participate
The Seven Dwarfs

1.
2.
3.
4.
5.
6.
7.
Poor Scope Management

Use of improper tools
Lack of project management expertise and skills
Poor financial management
Incompetent staff
No formal methodology/ process
Improper process
Poor Scope Management

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Optimize Scope
Use stepping-stones, not milestones
Consider the use of time boxing
Clarify crucial rules
Manage expectations, its crucial
Optimize scope through the use of index cards
Use role models for guidance
Assess project requirements by their yield or gain
Consider the risk of each requirement
Consider cost, risk and gain collectively in your
decision-making
Use of Improper Tools

1.
2.
3.
4.
5.
Use iterative development style

Also, use collaborative development process
Collect rapid feedback
Test code quality early and often
Consider which business medium is the most
effective for your organization
6. Break the cycle of releases
7. Consider Extreme, RUP, or Scrum
8. Agile process makes it easy for users
9. Know how to give and receive feedback
10. Do the easy stuff first
1.
2.
3.
4.
5.
Lack of project management

expertise and skills
Follow project management fundamentals

Keep track of the details
Project managers should have basic PM skills
Project manager should also be a good leader
Project managers should be able to establish and maintain
connections
6. Foster sense of pride and accomplishment
7. Make the team feel their contribution matters
8. Embrace basic business skills
9. Always, try to have good judgment
10. The more experience, the better
Poor Financial Management

1.
2.
Create accurate estimates

Projects are marathons not sprints, use Scrum to
make it easier
3. Express the benefits of the project in the best possible
financial light
4. Create your budget with stakeholder input
5. Find the break-even point
6. Manage changes well and systematically
7. Build an incentive system to finish the project on time
and on budget
8. If the project no longer makes sense, pull the plug
9. Prune your code
10. Create a pipeline of projects, features and functions
And remember
Time is the enemy of all projects, and money is
the root of all evil!!!
The 6 Key Success Factors at

Orange
One process
Project mode
common vocabulary for all projects

go from concept to market in phases
closed with deliverables quality checks
at gates
Board
governance
formal, traceable, easy go/no go
of stakeholders at gates with
commitment on capex & opex
simple multi-country governance
work in multi-department transversal

project teams with common objective &
management
TTM
Customer advocates
interaction with customers to optimize customer
journey of products
Integrated
roadmap
product & infrastructure roadmap
with phased go to market
(seasonal launches, fast track
cycles)
Common tools
Instantis (documentation,
planning, gating) & roadmap
builder (business intelligence)
Enterprise Environmental Factors

The Internal and External environmental factors surrounding
and/or influencing the project negatively or positively.

Are Inputs to most of the Project Management Processes.
Can be categorized into Internal and External
Enterprise Environmental Factors

Culture & structure
Regulations & Standards

Infrastructure
Existing human resources
Personnel administration
Political climate
Commercial databases
Information systems
Stakeholders risk tolerance
Organizational Process Assets

Include all process related assets in addition to the
organizations knowledge bases

Input to most of the project management processes
Outputs of many processes may include updating or adding
to these process assets

Can be categorized into:
Processes and procedures
Corporate knowledge base
Processes and Procedures

Standard Processes.
Templates.
Communication Requirements.
Financial Controls Procedures.
Issue and Defect Management Procedures.
Change Control Procedure.
Risk Control Procedures.
Approval Procedures.
Corporate Knowledge
Process Measurement Database.
Project Files.
Historical Information and Lessons Learned.
Issue and Defect Management Database.
Configuration Management Knowledge Base.

Financial Database.
Role of Project Manager as

Integrator- The Alaskan Pipeline
Why was Frank Moolin a big part of the project success?
Quiz 1
PMBOK Reading
Chapters 2 & 3
PART III
INITIATION
Projects dont fail at the end,
they fail at the beginning
Anonymous
Why projects start?

A market demand,
An Organizational need,
A customer request,
A technological advance,
A legal requirement,
A social demand,
An Ecological impact.
At Orange Projects Start To

Get
Acquisition of new customers (increase customer base, new
market shares, etc.)
Keep
Keep your customer base (loyalty offers, retention, market share
defence, etc.)
Increase
Increase the ARPU expected
You can have a combination of more than one objective, select the
predominant one.
What did the Cheshire Cat say?
"If You Don't Know Where You're Going, Any Road Will
Get You There."
Initiation Processes
Integration
Develop
Project
Charter
Communication
Identify
Stakeholders
Develop Project Charter

The process of developing a document that formally
authorizes a project or a phase and documenting initial

requirements that satisfy the stakeholders needs and
expectations.
What is a Project Charter?

A document that formally authorizes a project or a phase and
documents initial requirements that satisfy the stakeholders

needs and expectations
Projects are chartered and authorized external to the project
Why a charter is needed?

Defines the reason of the project
Assigns the project manager and his/ her authority level
Linking the project to the strategy and ongoing work of the
organization
Helps in starting the planning for the project
Facts about the project charter

A must for all projects and/ or phases
Communicate the project purpose or justification, high level
objectives, project and product requirements and initial risks.

Should be clear enough, yet broad to a level that the charter
doesnt change over the projects life.
Develop Project Charter

Project Charter
Project Statement
of Work (SOW)
Expert Judgment
Business Case
Facilitation
Techniques
Agreements
Enterprise
Environmental
Factors
Organizational
Processes Assets
Project Statement of Work

A narrative description of products or services to be supplied
by the project.
References:
Business need.
Product scope description.
Strategic plan.
For external projects, provided by customer as part of a bid
document.
For internal projects, provided by sponsor or initiator.
Business Case
A document that provides necessary information from a
business perspective on whether or not the project is worth

the investment
Agreements
MoUs
SLAs
Letters of Agreement
Letters of Intent
Expert Judgment
Stakeholders.
Consultants.
Industrial groups.
Professional and technical associations.
Other units within organization.

Subject matter experts (SMEs)
Project management office (PMO)
Facilitation Techniques
Brainstorming
Conflict Resolution
Problem Solving
Meetings
Contents of project Charter

Purpose or justification
Project Description
Project and Product Requirements
Acceptance Criteria
Initial Risks
Summary Milestones
Estimated Budget
Project Manager Authority Level

Approval Requirements
Name & authority of the person(s) authorizing the
project charter
At Orange- Pre-Project
Objectives
Take GO/NO GO decision for design and market launch
Validate the objectives, business plan, project plan, expected
results until T3
Allocate resources and budget to realize project objectives
Validate the main ITN, business process, and customer
journey orientations.
Establish and commit (all contributors) on T3 objectives
(market lunch review)
Confirm process (TTM full track, fast track, or super fast
track )
Project Charter
Read the Attached Project Charter Sample
Exercise 2
Project Charter
Identify Stakeholders
Integration
Develop
Project
Charter
Communication
Identify
Stakeholders
Identify Stakeholders
Project Charter
Stakeholder
Analysis
Procurement
Documents
Expert Judgment
Enterprise
Environmental
Factors
Organizational
Process Assets
Meetings
Stakeholder
Register
Stakeholder Analysis
The process of systematically gathering and analyzing
quantitative and qualitative information to determine whose

interests should be taken into account throughout the
projects.
3 Steps to Managing Stakeholders

1.
2.
3.
Identify Your Stakeholders

Prioritize Your Stakeholders
Manage Your Stakeholders
Step1- Identify Stakeholders

Identifying all stakeholders impacted by the project and
documenting relevant Information regarding their interests,

involvement, and impact on the project success.
It is essential to identify all stakeholders to increase the
likelihood of project success.
Should be done as early as possible.
Identify Stakeholders Purpose

Enables the project manager to focus on the relationships
necessary to ensure the success of the project.
Stakeholder Register
The Stakeholder Register is used to identify those people and
organizations impacted by the project and document relevant

information about each stakeholder.
Includes all details related to the identified stakeholders.
Identification information: Name, organizational position,

location, role in project, contact information.
Assessment information: Major requirements, main
expectations, potential influence, phase.
Stakeholder classification: Internal/ external, supporter/
neutral/ resistor, etc.
Step2- Prioritize Your

Stakeholders
Identify the potential impact or support each stakeholder
could generate
Classify them according to:
1.
2.
3.
4.
Power/Interest Grid
Power/ Influence Grid
Influence/ Impact Grid
Salience Model
Power/ Interest Grid

High
Keep
Manage
Satisfied
Closely
Power
Monitor
Low
Keep
(Minimum
Effort)
Low
Informed
Interest
High
Step3: Assess Your Stakeholders

Anticipate how key stakeholders react in different
situations, in order to plan how to influence them to

enhance their support and mitigate potential negative
impact.
Exercise 3
Stakeholder Analysis
PMBOK Reading
Chapter 4
- Section 4.1
Chapter 13
- Section13.1
Quiz 2
PART IV
PROJECT PLANNING
The Victorious military is first
victorious and after that does battle.
The defeated military first does battle
and after that seeks victory.
Sun Tzu- Art of War
Develop Project Management

Plan
Documenting the actions necessary to define, prepare,
integrate, & coordinate all subsidiary plans into a project

management plan.
Develop Project Management

Plan
Project Charter
Outputs from
Planning
Processes
Enterprise
Environmental
Factors
Organizational
Process Assets
Expert Judgment
Project
Management Plan
Project Management Plan

Integrates and consolidates all of the subsidiary management
plans and baselines from the planning processes.

Includes but not limited to:
Project management processes selected by the project
management team.
Level of implementation of each selected process.
Descriptions of tools & techniques
How the selected processes will be selected to manage the
specific project
How work will be executed to accomplish objectives
A change management plan

contents
Subsidiary Plans
Project Scope Management Plan

Requirements Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan
Process Improvement Plan
Staffing Management Plan
Communication management Plan
Risk Management Plan
Procurement Management Plan
Baselines
Schedule
Cost performance
Scope
Project Management Plan Vs. Project

Documents
Project Documents
Change Management Plan
Activity Attributes
Project Staff Assignment
Communications Management Plan
Activity Cost Estimates
Project Statement of Work
Configuration Management Plan
Activity Duration Estimates
Quality Checklists
Cost Baseline
Activity List
Quality Control Measurements
Activity Resource Requirements
Quality Metrics
Human Resource Management Plan
Agreements
Requirements Documentation
Basis of Estimates
Requirements Traceability Matrix
Procurement Management Plan
Change Log
Resource Breakdown Structure
Scope Baseline
Change Requests
Resource Calendars
Forecasts
Risk Register
Issue Log
Schedule Data
Milestone List
Seller Proposals
Schedule Baseline
Procurement Documents
Source Selection Criteria
Schedule Management Plan
Procurement Statement of Work
Scope Management Plan
Project Calendars
Team Performance Assessment
Stakeholder Management Plan
Project Charter
Work Performance Reports
Oranges Integrated Roadmap

roadmap fed by marketing / technical strategy & budget
clear view of priorities & development capacity before individual T-1
opportunity studies help finalize selection of best opportunities
roadmap is compatible with resources of all contributors
roadmap based on TTM project information

T3 objectives are project commitments
approved by board
roadmap builder tool interfaced with Instantis
will enable real-time integrated roadmap based
on project information
TTM
roadmap synchronises product & infrastructure
infrastructure modifications often embarked in product development
infrastructure projects for large & multi-product infrastructure
traced product dependencies
Seasonal launches & fast track cycles are best practice
PMBOK Reading
Chapter 4
- Section 4.2
PART V
PROJECT SCOPE PLANNING
Planning Processes
Scope Planning
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Project Scope Vs. Product Scope
Project Scope: The work that needs to be accomplished to
deliver a product, service, or result with the specified

features and functions
Product Scope: The features and functions that characterize a
product, service, or result
Plan Scope Management

Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Plan Scope management

The process of creating a scope management plan that
documents how the project scope will be defined, validated

and controlled.
It provides guidance on how scope will be managed
throughout the project.
Plan Scope Management

Project
Management Plan
Project Charter
Enterprise
environmental
factors
Organizational
Process Assets
Expert Judgment
Meetings
Scope
Management Plan
Requirements
Management Plan

Plan
Part of Develop Project Management Plan
The outcome of a planning effort that precedes performing
the processes of project scope management

Documents how the scope will be defined, verified,
controlled, and how the work breakdown structure (WBS)

will be created and defined.
Can be formal or informal depending on needs of the project.
It Includes:
Processes for:
Detailing the project scope statement.

WBS creation, maintenance, and approval.
Formal verification and acceptance of the completed
project deliverables.
Control how requests to change the detailed project

scope statement will be processed.

(RQM)
A Plan that documents how requirements will be analyzed,
document and managed (tracked, reported, prioritized)

throughout the project life cycle.

(RQM) Components
How Requirement activities will be planned, tracked and
reported
Configuration Management Activities
Requirements Prioritization Process
Product Metrics
Traceability Structure
Collect Requirements
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
The process of defining and documenting stakeholders needs
to meet project objectives.

Requirements include the quantified and documented needs
and expectations of the sponsor, customer, and other
stakeholders.
WBS, cost, schedule and quality planning are all built upon
these requirements.
Need to be elicited, analyzed, and recorded in enough detail
to be measured once project execution begins
Project Requirements include business requirements, project
management requirements, delivery requirements, etc.

Product Requirements include information on technical
requirements, security requirements, performance
requirements, etc.
Scope
Management Plan
Requirements
Management Plan
Stakeholder
Management Plan
Project Charter
Stakeholder
Register
Interviews
Focus Groups
Facilitated
Workshops
Group Creativity
Techniques
Group Decision
Making Techniques
Questionnaires and
Surveys
Observations
Prototypes
Benchmarking
Context Diagram
Document Analysis
Requirements
Documentation
Requirements
Traceability
Matrix
Interviews
Talking to stakeholders directly.
Asking questions and recording answers
One-on-one, or multiple interviewers and/ or interviewees.
Interviewing:
Experienced participants
Stakeholders
Subject matter experts
Focus Groups
Bring together prequalified stakeholders and subject matter
experts.
Trained moderator guides the group through an interactive
discussion.
More conservational than one-on-one
Facilitated Workshops
Focused sessions that bring key cross-functional stakeholders
together to define product requirements

Helps in building trust, foster relationships, and improve
communication.
Reveal and resolve issues more quickly than individual
sessions.
Examples: Joint Application Development (JAD) & Quality
Function Deployment (QFD)
Group Creativity Techniques

Brainstorming
Nominal group Technique

Delphi Technique
Idea/ Mind Mapping
Affinity Diagram
Mind Map Example
Group decision Making

Techniques
Unanimity
Majority
Plurality
Dictatorship
Questionnaires & Surveys
Written sets of questions.

Aim to quickly accumulate information from a broad group of
respondents.
Most appropriate with broad audience, when quick
turnaround is needed, and where statistical analysis is
appropriate.
Observations
Viewing user performance
Also called Job shadowing

Helpful for detailed processes when people that use the
product have difficulty or reluctant to articulate their

requirements
Can uncover hidden requirements
Prototypes
Provide a working model of the expected product before
actually building it.

Support the concept of progressive elaboration through use
of iterative cycles of mock-up creation, user experimentation,
feedback generation and prototype revision.
Benchmarking
Involves comparing actual or planned practices, such as
processes and operations, to those of comparable

organizations to identify best practices, generate ideas for
improvement, and provide a basis for measuring
performance.
Compared organizations can be external or internal.
Context Diagrams
Visually depict the product scope by showing a business
system (process, equipment, computer systemetc.), and

how people and other systems (actors) interact with it.
Context diagrams show inputs to the business system, the
actor(s) providing the input, the outputs of the business

system, and the actor(s) receiving the output.
Context Diagrams
The document including the stakeholders requirements to
meet the business need for the project.

Usually starts at a high level and then gets elaborated within
the life cycle of the project and according to the RQM
Elements
Business need or opportunity
Functional requirements and non functional requirements
Quality requirements
Acceptance criteria
Business rules
Impacts to other organizational areas, and other entities inside or
outside the performing organization

Support and training requirements
Requirements assumptions and constraints

A tool that links project objectives to requirements to
deliverables to product features.

The structure and level of details of the traceability matrix to be
used shall be documented in the RQM as different projects can
use different structures of traceability.
This tool can be as simple as a table or as complex as a software
program.

Contents
Business needs, opportunities, goals, and objectives
Project objectives
Project scope, WBS deliverables
Product design
Product development
Test strategy and test scenarios

High level requirements to more detailed requirements
Example of Requirements
Traceability Matrix
Define Scope
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Define Scope
The process of developing a detailed description of the
project and the product

Critical to project success.
Builds upon the major deliverables, assumptions, and
constraints documented in the project initiation.
Define Scope
Scope
Management Plan
Project Charter
Requirements
Documentation
Organizational
Process Assets
Expert Judgment
Product Analysis
Project Scope
Statement
Alternatives
Identification
Project Document
Updates
Facilitated
Workshops
Product Analysis
Translating high-level product description into tangible
deliverables
Includes techniques such as:
Product breakdown
System analysis
Requirements analysis
System engineering
Value engineering
Value analysis
Alternatives Identification
A technique to generate different approaches to execute and
perform the work of the project.

Includes techniques such as:
Brainstorming
Lateral thinking
Pairwise comparison
Project Scope Statement

The project scope statement describes in details the project
deliverables, and the work required to create those

deliverables.
Common understanding among stakeholders,

Enables more detailed planning,
Guides the project teams work during execution,
Provides the baseline for evaluating changes.
Project Scope Statement

Contents
Product scope description
Product acceptance criteria

Project deliverables
Project exclusions
Project constraints
Project assumptions
Constraints
Applicable restrictions that will affect the performance of
the project.
Factors that affect a scheduled activity or when an
activity can be scheduled.
Assumptions
Are factors that, for planning purposes, are considered to be
true, real, or certain.

Affect all aspects of project planning.
Part of the projects progressive elaboration.
Generally involve a degree of RISK.
Must be identified, documented and validated.
Exercise 4
Scope Statement
Create WBS
Plan Scope
Management
Collect
Requirements
Define
Scope
Create
WBS
Create WBS
The process of subdividing project deliverables and project
work into smaller, more manageable components.

WBS is a deliverable-oriented hierarchical decomposition of
the work to be executed by the project team to accomplish
the project objectives, and create the required deliverables.
Each descending level represents an increasingly detailed
definition of the project work.
Organizes and defines the total scope of the project.
WBS Types
Phases- Deliverables
Deliverables-Phases
Combination of both
Example: WBS (Phases

Deliverables)
Example: WBS (Deliverables

Phases)
Create WBS
Scope
Management Plan
Project Scope
Statement
Requirements
Documentation
Enterprise
Environmental
Factors
Organizational
Process Assets
Decomposition
Expert Judgment
Scope Baseline
Project Document
Updates
Decomposition
Subdivision of project deliverables into smaller, more
manageable components until the work and deliverables are

defined to the work package level.
The level of composition varies per deliverable/ phase with
the size and complexity of project.
Work Package
The Work Package level is the lowest level in the WBS.

Work Package is the point at which the cost and activity
duration can be reliable, estimated and packaged.
Decomposition Involves
Identifying deliverables and related work.
Structuring and organizing the WBS.
Decomposing upper levels into lower level detailed
components.
Developing and assigning identification codes.
Verifying that the degree of decomposition is necessary and
sufficient.
WBS Dictionary Contents

Code of account identifier
Statement of work
Responsible organization
Schedule milestones
Associated activities
Resources required
Cost estimates
Quality requirements
Acceptance criteria
Technical references
Contract information
Scope Baseline
Scope statement
WBS
WBS dictionary
WBS Dictionary
A document generated by the Create WBS process that
supports the WBS.

Provides more detailed description of the components in the
WBS., including work packages and control accounts.
WBS is not
Organizational Breakdown Structure (OBS)
Bill Of Materials (BOM)

Risk Breakdown Structure (RBS)
Resource Breakdown Structure (RBS)
A Video
Why is WBS important?
Exercise 5
Create WBS
Quiz 3
PMBOK Reading
Chapter 5
- Sections 5.1-5.4
PART VI
PROJECT TIME MANAGEMENT
Planning Processes
Project Time Planning

Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Resources
Define
Activities
Estimate
Activity
Durations
Develop
Schedule
Plan Schedule Management

Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Resources
Define
Activities
Estimate
Activity
Durations
Develop
Schedule

The process of establishing policies, procedures, and
documentation for planning, developing, managing,

executing, and controlling the project schedule.
The key benefit of the process is that it provides guidance and
direction on how the project schedule will be managed

Project
Management
Plan
Expert
Judgment
Project
Charter
Analytical
Techniques
Enterprise
Environment
al factors
Meetings
Org. Process
Assets
Schedule
Management
Plan
Analytical Techniques
Scheduling Methodology
Scheduling Tools & Techniques
Estimating Approaches
Formats
Project Management Software
Schedule Management Plans

A component of the project management plan.
Establishes the criteria and activities for developing,
monitoring, and controlling the schedule.

Can be formal or informal
Can be highly detailed or broadly defined based on the needs
of the project
Schedule Management Plans

Can include the following:
Project schedule model development
Level of accuracy
Units of measure
Organizational procedures links
Project schedule management maintenance
Control schedule
Rules of performance measurement
Reporting formats
Process description
Define Activities
Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Resources
Define
Activities
Estimate
Activity
Durations
Develop
Schedule
Define Activities
The process of identifying the specific actions to be
performed to produce the project deliverables.

Decomposed from the work packages at the WBS.
Activities are the smaller components that represent the
work necessary to complete the work package.
Activities provide basis for estimating, scheduling, executing,
and monitoring and controlling the project work.
Define Activities
Schedule
Managemen
t Plan
Scope
Baseline
Enterprise
Environmen
tal factors
Org. Process
Assets
Decompositio
n
Rolling Wave
Planning
Expert
Judgment
Activity List
Activity
Attributes
Milestone List
Rolling Wave Planning
Progressive detailing of the project management plan
Activity List
A comprehensive list including all schedule activities
required for the project.

Includes:
Activity identifier
Description of each activity
Sequence Activities
Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Resources
Define
Activities
Estimate
Activity
Durations
Develop
Schedule
Sequence Activities
Identifying & documenting dependencies among schedule
activities
Can be done using software or manually.
Precedence Diagramming Method

(PDM)
Also known as Activity-On-Node
Activities are represented in boxes (Nodes),
and arrows show dependencies
Dependencies Relationships
A
Finish-to-Start
Finish-to-Finish
Start-to-Start
B
A
Start-to-Finish
A
B
Dependencies Relationships
Use the following Rule of Thumb to understand the
relationships better:
Activity A should _ _ _ _ _ _
Before activity B can _ _ _ _ _ _
Types of Dependencies
Mandatory
Discretionary
External
Internal
Applying Leads & Lags
Lead: The overlapping time

Lag: The waiting time
Float/ Slack: The time an activity can be delayed (wait)
without affecting the project finish date
Sequencing Activities
Schedule
Management
Plan
Activity List
Activity
Attributes
Milestone List
Enterprise
Environmental
Factors
Project Scope
Statement
Organizational
Process Assets
Precedence
Diagrammin
g Method
(PDM)
Dependency
Determinati
on
Applying
Leads and
Lags
Project
Schedule
Networking
Diagram
Project
Documents
Update
Estimate Activity Resources

Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Resources
Define
Activities
Estimate
Activity
Durations
Develop
Schedule
Estimating the type and quantities of resources required to
perform each schedule activity
Types of Resources
Material
People
Equipment

Schedule
Management
Plan
Activity List
Activity
Attributes
Resource
Calendars
Risk Register
Activity Cost
Estimates
Enterprise
Environment
Factors
Org. Process
Assets
Expert
Judgment
Alternatives
Analysis
Published
Estimating
Data
Bottom-up
Estimating
Project
Management
Software
Activity
Resource
Requirements
Resource
Breakdown
Structure (RBS)
Project
Document
updates
Estimate Activity Durations

Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Durations
Define
Activities
Estimate
Activity
Resources
Develop
Schedule

Approximating the number of work periods needed to
complete individual activities with estimated resources.

Uses information on:
Activity scope of work
Required resource types
Estimated resource quantities
Resource calendar
Progressively elaborative
Takes elapsed time into account

Schedule
Management Plan
Activity List
Activity Attributes
Activity Resource
Requirements
Resource Calendars
Project Scope
Statement
Risk Register
Resource Breakdown
Structure
Enterprise
Environment Factors
Org. Process Assets
Expert
Judgment
Analogous
Estimating
Parametric
Estimating
Three Point
Estimates
(PERT)
Group DecisionMaking
Techniques
Reserve
Analysis
Activity
Duration
Estimates
Project
Document
Updates
Schedule Uncertainty & Risk

Analysis Process
Schedule risk analysis uses information about the
uncertainty of activity durations to help answer the

following questions:
What is the likelihood of finishing project as scheduled?
How much contingency is needed to establish a completion
date with a probability of success that is acceptable to the
stakeholders?
Which activities are the most likely to delay the project?
What actions can be taken to control risks in the schedule?
Schedule Uncertainty & Risk

Analysis Process
If estimating activity duration involves a great deal of
uncertainty, a commonly used technique is the application of

probabilistic estimates
Three Point (PERT) Estimates

Time Expected (te)= (to+4xtm+tp)/6
to: Optimistic Estimate

tm= Average Estimate
tp= Pessimistic Estimate
Based on a the assumption of Beta distribution
Beta Distribution
Activity Optimistic Duration

The total number of work periods in calendar units
assigned to perform the schedule activity, considering all of

the variables that could affect performance, and is
determined to be the shortest possible activity duration
It is determined by answering the question
How long will it take in the best case scenario?
Activity Pessimistic Duration
assigned to perform the schedule activity, considering all of

the variables that could affect performance, and is
determined to be the longest possible activity duration
It is determined by answering the question
How long will it take in the worst case scenario?
Activity Most Likely Duration

assigned to perform the schedule activity, considering all

of the variables that could affect performance, and is
determined to be the most probable activity duration
It is determined by answering the question:
How long will it most likely take?
Standard Deviation & variance

Activity Std. Deviation (activity) = P O
6
Variance = (P O)2
6
Project Std Deviation ( project)=
Variance Critical Path Activities
Estimates Certainty
Confidence level in the value is approximately 50%
Confidence level in the value + SD is approximately 85%

Confidence level in the value + 1.645 SD is approximately
95%
Confidence level in the value + 2 SD is approximately 98%
Confidence level in the value + 3 SD is approximately 99.9%
Critical Path
The longest path from the beginning to the end of the project.
Activities on the critical path cannot be delayed without

delaying the project.
There can be more than one critical path (riskier)
Project Manager should focus on critical path.
Network Diagram
B
3
A
2
C
1
H
2
D
4
E
3
F
2
G
4
Calculating Critical Path

Specify the individual activities.
Determine the sequence of activities.
Draw the network diagram.
Estimate activity completion time.

Identify critical path.
Start & Finish Dates

ES: Earliest start time.
EF: Earliest finish time.
LF: Latest finish time.
LS: Latest start time.
Forward Pass
Schedule Calculations That Identify The Early Start and Finish
Dates of Tasks and The Project.

ES = EF of Preceding Task (latest if more than one).
EF = ES + Duration.
Backward Pass
Schedule Calculations That Identify The Late Start and
Finish Dates of Tasks and The Project.

LF = LS of succeeding Task (earliest if more than one).
LS = LF - Duration
Float
Float or slack is the amount of time that a task in a project
network can be delayed without causing a delay to:

Subsequent tasks (free float)
Project completion date (total float)
Total Float = LF EF
OR
LS - ES
Free Float = Min ES (Succeeding Task) EF
Critical Path
B
3
A
2
C
1
H
2
D
4
E
3
F
2
G
4
Critical Path
3
15
15
16
1
2
1
10
10
3
7
17
2
16
11
12
11
12
15
4
15
17
Develop Schedule
Plan
Schedule
Management
Sequence
Activities
Estimate
Activity
Durations
Define
Activities
Estimate
Activity
Resources
Develop
Schedule
Develop Schedule
The process of analyzing activity sequences, durations,
resource requirements, and schedule constraints.

Provides specific start and end dates for activities.
Iterative process.
Develop Schedule
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
assignment
Resource
Breakdown
Structure
Org. Process Assets
Enterprise
Environmental
Factors
Project schedule
Schedule Network
Analysis
Critical Path
Method
Critical Chain
Method
Resource
Optimization
Techniques
Modeling
techniques
Leads & Lags
Schedule
Compression
Scheduling Tool
Schedule baseline
Schedule data
Project Calendar
Project
Management Plan
(updates)
Project document
(updates)
Resource Optimization
Techniques
Resource Leveling
Resource Smoothing
Resource leveling
Used when shared or critical resources are only available at
certain times, or in limited quantities, or to keep resource

usage at a constant level.
Usually changes the critical path.
Modeling Techniques
What-If Scenario Analysis
Simulation
What-If Scenario Analysis
An analysis of the question what if the situation represented by
scenario X happens.
Can be used to assess the feasibility of the schedule under
adverse conditions, and in preparing contingency and response
plans.
Exercises 6 & 7
Critical Path Calculations
Quiz
For the project in Exercise 7-a:
1- What is the Standard Deviation of the Project?

2- How much would you estimate the duration of the project? If
you want to be:
a. 85% confident
b. 95% confident
c. 98% confident
Schedule Compression
Fast Tracking
Crashing
Fast Tracking
A schedule compression technique in which phases or
activities normally performed in sequence are performed in

parallel.
Can result in rework and increased risks.
Crashing
A schedule compression technique in which cost and
schedule tradeoffs are analyzed to determine how to obtain

the greatest amount of compression for the latest
incremental cost.
Can result in increased cost.
Exercise 8
Crashing
A Subject for Discussion
After all of this, why do projects take more time to finish?
Student Syndrome
Student syndrome refers to the phenomenon that many
people will start to fully apply themselves to a task just at the

last possible moment before a deadline. This leads to wasting
any buffers built into individual task duration estimates
Parkinson Law
Work expands so as to fill the time available for its completion
Multi-Tasking
Critical Chain Method

A schedule network analysis technique that modifies the
project schedule to account for limited resources (according

to PMBOK).
Combines deterministic and probabilistic approaches.
Project schedule
Milestone Chart
Bar Chart
Project schedule network chart
Schedule Baseline
Project schedule with baseline start dates and baseline finish
dates.
PMBOK Reading
Chapter 6
- Sections 6.1 6.6
PART VII
PROJECT COST MANAGEMENT
Planning Processes

Plan Cost
Management
Estimate
Costs
Determine
Budget
Control
Costs
Project Cost management

On smaller projects, cost estimating and cost budgeting are so
tightly linked that they can be done together and by one

person.
The work done in cost management is preceded by a cost
planning effort by the project management team.
Techniques such as Life-Cycle Costing & Value Engineering can
improve decision making and reduce cost while improving
quality and performance of project deliverables.
Life-Cycle Costing
A decision making tool that involves tradeoffs between short
term project costs and long term product or service

operational costs.
It examines the effects of project decisions not only on project
activities, but also on the cost of maintaining, using and
supporting of the product, service, or result of the project.
Plan Cost Management

Plan Cost
Management
Estimate
Costs
Determine
Budget
Control
Costs
Plan Cost Management

The process of establishing policies, procedures, and
documentation for planning, managing, expending, and

controlling project costs.
The key benefit of the process is that it provides guidance and
direction on how the project schedule will be managed

Estimate Costs
Project
Management
Plan
Project Charter
Enterprise
Environmental
Factors
Org. Process
Assets
Expert Judgment
Analytical
Techniques
Meetings
Cost
Management
Plan

Part of Develop Project Management Plan
The outcome of a planning effort that precedes performing
the processes of project cost management

Sets out the format and establishes the criteria for planning,
structuring, estimating, budgeting, and controlling project

costs.
Documents cost management processes and their associated
tools and techniques

Establishes
Level of accuracy
Level of precision
Units of measure
Organizational procedures links
Control thresholds
Rules of performance measurement
Reporting formats
Process descriptions
Additional details
Estimate Costs
Plan Cost
Management
Estimate
Costs
Determine
Budget
Control
Costs
Cost Estimating Vs. Cost

Budgeting
Cost Estimating: Developing an approximation of the costs of
the resources needed to complete project activities

Cost Budgeting: Aggregating the estimated costs of individual
activities of work packages to establish a cost baseline
Estimate Costs
Cost
Management
Plan
Scope Baseline
Project Schedule
Human Resource
Plan
Risk Register
Enterprise
Environmental
Factors
Org. Process
Assets
Expert Judgment
Analogous
Estimating
Parametric
Estimating
Bottom-up
estimating
Three-Point
Estimates
Reserve analysis
Cost of Quality
Project
Management
Estimating
Software
Vendor Bid
Analysis
Group DecisionMaking
Techniques
Activity Cost
Estimates
Basis of
Estimates
Project
Document
Updates
Analogous Estimating
Using cost of previous similar projects as basis for estimating.
Less Costly BUT less accurate.

Used when information is limited (early phases).
Reliable when previous projects are similar in fact, not just in
appearance.
Parametric Estimating
Uses relationship between historical data and certain
parameters (cost per square meter, cost per meter, etc).
Bottom-Up Estimating
A method for estimating a component of work.
The cost is estimated for individual work packages or
activities, and they are then summarized or rolled-up to

higher levels.
Cost and accuracy are influenced by the size and complexity
of the individual package or activity.
Vendor Bid analysis
Includes analysis of what the project should cost, based on
responsive bids from qualified vendors.
A quantitative assessment of the likely costs of the resources
required to complete project activities.
Basis of Estimates
Documentation of basis of estimates (how it was developed).

Documentation of assumptions made.
Documentation of any known constraints.
Indication of range of estimates.
Indication of confidence level of the final estimate.
Cost Elements
Human Resources Labor
Hour rate, fringe benefits, overtime, overhead, per diem
Equipment & Software

Depreciation, purchase cost, support & Maintenance
Facilities
Rent, depreciation, utilities, admin overhead
Supplies
Stationary, food, leisure, gas for cars, tickets
Special expenses
Cost Can Be
Direct.
Indirect.
Fixed.
Variable.
Determine Budget
Plan Cost
Management
Estimate
Costs
Determine
Budget
Control
Costs
Determine Budget
The process of aggregating the estimated costs to individual
activities or work packages to establish an authorized cost

baseline.
Determine Budget
Cost
Management
Plan
Scope Baseline
Activity Cost
Estimates
Basis of Cost
Estimates
Project
Schedule
Risk Register
Resource
Calendars
Agreements
Organizational
Process Assets
Cost Aggregation
Reserve Analysis
Expert Judgment
Historical
Relationships
Funding Limit
Reconciliation
Cost
Performance
Baseline
Project Funding
Requirements
Project
Document
Updates
Funding Limit Reconciliation

The expenditure of funds should be reconciled with any
funding limits on the commitment of funds for the project.

Variance between the funding limits and the planned
expenditures sometimes necessitate the rescheduling of work
to level out the rate of expenditures.
Can be accomplished by placing imposed date constraints for
work into the project schedule.
Cost Performance Baseline
Time-phased budget at completion (BAC) used as basis
against which to measure, monitor, and control overall cost

performance.
Cost Performance Baseline
Contingency Reserves
Contingency reserves is usually percentage of total estimate
or based on risk analysis, to account for the risks that are

known unknowns of the project.
Under the control of the project manager.
Management Reserves
Budgets reserved for unplanned, but potentially required
changes to project scope. These are the risks that are

unknown unknowns.
Under the control of organizations management.
Cost Budgeting
8.Cost Budget
$1040
7.Management
Reserve
$140
6.Cost
Baseline
$900
5.Contingency
Reserve
$225
4. Project
3. Control
Account
2. Work
packages
1. Activities
$675
$400
$275
$75
$100
$25 $25 $25
$100
Net Present Value
The present value of total benefits (income or revenue) minus
the cost over many time periods.

Allows for comparison of many projects, to select the best to
initiate.
If NPV is +ve: the investment is a good choice.
The project with highest NPV is the best.
Net Present Value
NPV= (FV/ (1+i)n)

Where FV= Future Value
i= Interest Rate
n= Number of period intervals
Internal Rate of return (IRR)

Is the interest rate at which the costs of the
investment lead to the benefits of the investment.

The project with highest IRR is the best.
Payback Period
The period of time required for the return on an investment
to "repay" the sum of the original investment.

For example, a $1000 investment which returned $500 per
year would have a two year payback period.
The project with lowest payback period is the best
Quiz 4
PMBOK Reading
Chapter 7
- Sections 7.1 - 7.3
PART VIII
PROJECT QUALITY
MANAGEMENT
Planning Processes
What is Quality?
Conformance to Requirements
Fitness of use
According to PMBOK
The degree to which a set of inherent characteristics fulfill
requirements.

Plan
Quality
Management
Perform
Quality
Assurance
Control
Quality
Quality Management & Project

Management
Both disciplines recognize the importance of:
Customer Satisfaction
Prevention over inspection
Management Responsibility
Continuous Improvement
Quality Concepts
Quality vs. Grade

Precision vs. Accuracy
Quality Assurance vs. Quality Control
Quality Vs. Grade

Quality is the Degree to which a set of inherent characteristics
fulfill requirements
Grade is Category assigned to products or services having the
same functional use but different technical characteristics.
Low grade does not necessarily cause a problem, but low
quality does.
Precision vs. Accuracy
Precision is consistency that the value of repeated
measurements are clustered and have little scatter.

Accuracy means that the measured value is very close to the
true value.
Precise measurements are not necessarily accurate. A very
accurate measurement is not necessarily precise.
Quality Assurance vs. Quality

Control
Quality Assurance is applying the planned, systematic quality
activities to ensure that the project employs all processes

needed to meet requirements.
Quality Control is the action of monitoring specific project
results to determine whether they comply with relevant

quality standards and identifying ways to eliminate causes of
unsatisfactory performance.

Plan
Quality
Management
Perform
Quality
Assurance
Control
Quality
Plan Quality Management

Identifying which quality Standards are relevant to the
project and determining how to satisfy them

Scope statement
Quality policies
Quality standards & regulations in the company, industry.
Quality is planned, designed and built in- not inspected in.
Plan Quality
Project
Management Plan
Stakeholder
Register
Risk Register
Requirements
Documentation
Enterprise
Environmental
Factors
Org. Process
Assets
Cost/ Benefit
Analysis
Cost of Quality
(COQ)
Seven Basic
Quality Tools
Benchmarking
Design of
Experiments
Statistical
Sampling
Additional Quality
Planning Tools
Meetings
Quality
Management Plan
Quality Metrics
Quality Checklists
Process
Improvement Plan
Project Document
Updates
Seven Basic Quality Tools

1.
2.
3.
4.
5.
6.
7.
Cause & Effect Diagram

Flowcharts
Checksheets
Pareto Diagrams
Histograms
Control Charts
Scatter Diagrams
Also known as Fish-Bone Analysis or Ishikawa Analysis

Used to identify the problem, discover the underlying causes
leading to it, and develop solutions and preventive actions.
Flowcharting
Diagram that shows the relationship between different
elements in a system of processes

Used to assist team efforts in identifying potential quality
problems and the possible affects of those problems.
Cause & Affect Diagram
Process flowcharts
Checksheets
Category
Attribute 1
Attribute 2
Attribute 3
Attribute 4
Strokes
Frequency
Control Charts
Graphic display of results, over time, of a process.
Used to determine if the process is in control. When a
process is in control it should not be adjusted.

Rule of Seven
Histogram
A vertical bar chart showing how often a particular variable
state occurred.
Histograms
Pareto Diagrams
Histogram, ordered by frequency of occurrence, that shows how
many results were generated by type or categories of identified

cause.
Rank ordering is used to guide corrective actions fix the
problems that are causing the greatest number of defects first.
Relates to Paretos Law & Principle of 80/20
Pareto Diagram
Scatter Diagram
A Scatter diagram shows the relationship between two
variables.
Allows to study and identify the possible relationship
between changes observed in two variables.
Scatter Diagram
BENCHMARKING
The evaluation of a groups business or project practices in
comparison to those of other groups or projects.

Includes a number of quantitative or qualitative attributes
that can be assessed in both the benchmark and the subject.
Cost of Quality
Prevention costs up front costs to design and plan for
quality.
Appraisal costs associated with evaluation of results to
make sure that they conform to quality.

Internal Failure costs Cost of re-work associated with items
that did not pass the appraisal.

External Failure costs Cost of failures found by the
customer.
Cost of Quality
Conformance:
Training.
Research.
Surveys.
Nonconformance:
Scrap.
Rework.
Warranty.
Inventory.
Check Lists
Job aid that prompts employees to perform activities
according to a consistent quality standard.

Could be for quality assurance or quality control.
Two types of Checklists:
Imperative
Interrogative
Design of Experiments
A structured, organized method that is used to determine the
relationship between the different factors affecting a process

and the output of that process.
It involves designing a set of ten to twenty experiments, in
which all relevant factors are varied systematically.
The results of these experiments are analyzed, to help
identify optimal conditions
Describes how the project team will implement the
performing organizations quality policy

Contents
Purpose
Quality Policy/ Standards

Quality Assurance Procedures & Test
Quality Control Procedures & Tests
Roles & Responsibilities

Process Boundaries
Process Configuration
Process Metrics
Targets for Improved Performance
PMBOK Reading
Chapter 8
- Section 8.1
PART IX
PROJECT HUMAN RESOURCE
MANAGEMENT
Planning Processes
Project Human resource

Management
Plan
Human
Resource
Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team
Project Human resource

Management
Plan
Human
Resource
Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team
Plan Human Resource

Management
Identifying, documenting, and assigning project roles,
responsibilities, required skills and reporting relationships,

as well as creating the staffing management plan.
Identifying who we want, at which skill level, when, and for
how long. Specifying their roles, and responsibilities and
interactions.
Develop Human Resource Plan
Project
Management
Plan
Activity
Resource
Requirements
Enterprise
Environmental
Factors
Org. Process
Assets
Organization
Charts &
Position
descriptions
Networking
Organizational
Theory
Expert
Judgment
Meetings
Human
Resource
Management
Plan
Organizational Charts & Position

Descriptions
Hierarchical- type Charts
Matrix-based Charts
Text-Oriented Formats
Organizational Charts & Position

Descriptions
Responsibility Assignment Matrix

(RAM)
Activity
Ann
Ben
Carlos
Dina
Ed
Define
Design
Develop
Test
R= Responsible A=Accountable C=Consult
I=Inform
Organizational Theory
Provides information regarding the ways that people, teams
and organizational units behave.
Halo Effect
The tendency to rate high or low on all factors due to the
impression of a high or low rating on some specific factor.
Maslows Hierarchy
Hertzberg Theory
Hygiene Factors:
Working conditions.
Salary.
Personal life.
Relationships at work.
Security.
Status.
Motivating Agents:
Responsibility.
Self Actualization.
Professional Growth.
Recognition.
McClelland Acquired-Needs
Theory
Also called:
Three Need Theory
Learned Needs Theory.
An individual's specific needs are acquired over time and are
shaped by one's life experiences.

A person's motivation and effectiveness in certain job
functions are influenced by these three needs.
Most of these needs fall under:
Achievement.
Affiliation.
Power.
Expectancy Theory
High performers remain loyal and motivated as long as
rewards meet expectations.
Theory X-Theory Y
Describes how managers deal with subordinates.
Describe two opposing sets of assumptions about employees.
Theory X
Employees:
Dislike work and try to avoid it.
Lack ambition, creativity, and problem solving skills.
Prefer direction and avoid responsibility.
Are motivated by Maslows lower needs.
Are self centered and dont care about organization.
Theory Y
Employees:
Meet expectations with proper motivation.
Are committed to organization goals.

Are creative and innovative.
Can take responsibility.
Are motivated by higher levels of Maslow.
Theory Z
Supplements Theory Y.
Assumes that trust and commitment on part of organization
will yield higher motivation and performance by employees.

Rooted in Japanese culture.
Human Resource Plan

Provides guidance on how project human resources should
be defined, staffed, managed, controlled, and eventually

released.
Human Resource Plan Contents

Roles and Responsibilities
Project Organization Charts


Staff acquisition
Resource Calendars
Staff Release Plan
Training needs
Recognition & Rewards
Compliance
Safety
At Orange
Teamwork in multidisciplinary project
one TTM project manager
product manager for product Fast Track & Super Fast Track
trained project manager for Full Track & Fast track cycles
authority on project team & project steering committee
manages project budget
commits on T3, quality & value creation
TTM
one TTM project team
teamwork to achieve objectives
every deliverable has an owner
collocation when feasible
departments contribute within project
one sponsor per project
one objective
project team incentive based on it
Exercise 9
Prepare RAM/RACI
PMBOK Reading
Chapter 9
- Section 9.1
PART X
PROJECT COMMUNICATION
MANAGEMENT
Planning Processes
Project Communications Management

Plan
Communications
Management
Manage
Communications
Control
Communications
Plan Communications Management

Plan
Communications
Management
Manage
Communications
Control
Communications
Consequences of Miscommunication
Plan Communication
The process of determining the project stakeholder
information needs and defining a communication approach.

Who needs what information,
When will they need it,
In which format,
How will it be given to them,
How frequently.
Communication Body of
Knowledge
Communication Process
Choice of Media
Documentation Skills
Presentation Skills
Meeting Management
Clutter, Noise, & Barriers
Effective Communication
Effective Communication
Non Verbal
Para lingual
Feedback
Effective Listening
Feedback
Active Listening
Para lingual
Communication Methods
Method
When Used
Formal Written
Complex Problems, PM Plans, Charter, Long

Distance Communication
Formal Verbal
Presentations, Speeches
Informal Written
Memos, e-mails, notes
Informal Verbal
Meetings, Conversations
Plan Communications
Management
Project
Management
Plan
Stakeholder
Register
Enterprise
environmental
factors
Organizational
Process Assets
Communication
Requirements
Analysis
Communication
technology
Communication
Models
Communication
Methods
Meetings
Communications
Management
Plan
Project
Documents
Updates
Communication Requirements
Analysis
Determining the communication requirements of the project
stakeholders.
Defined by combining the type and format of information
needed with an analysis of the value of that information.
Project resources are expended only on communicating
information that contribute to success, or where a lack of
communication can lead to failure.
Number of Communication
Channels
N (N-1)/2
Communication technology
Factors that affect the project communication technology:
Urgency of the need for information.

Availability of technology
Expected project staffing
Duration of the project
Project Environment
Communication Models
Message
Sender
Noise
Acknowledge
Message
Medium
Noise
Feedback
Message
Noise
Receiver
Communication Models
Interactive
Push
Pull
Communication Management
Plan
Stakeholder communication requirements
Information to be communicated
Reason for distribution
Responsibility
Recipients
Methods and technologies used
Frequency
Resources allocated for communication (including time and
budget)
Escalation process
Method for updating
Glossary of terminology
Information flow in the project (flow chart)
Communication constraints
Communication Matrix
What
Why
By Whom
Recipient When
How
Status
report
Performanc
e reporting
PM
Sponsor/
Steering
Committee
Weekly
basis
Email
Minutes of
meeting
Reporting
decisions
PC
Steering
Committee
After each
meeting
Email
Risk forms
Report &
document
risks
Any
stakeholder
PM
As needed
Email
Risks log
Updating
risks log
Risk
Manager
Steering
Committee
Every two
weeks
Meeting &
email
A Video
Do you communicate effectively?
Exercise 10
Develop A Communication Matrix
PMBOK Reading
Chapter 10
- Section 10.1
PART XI
PROJECT RISK
MANAGEMENT
Planning Processes
There are risks and costs to a
program of action. But they are far
less than the long-range risks and
costs of comfortable inaction
John F. Kennedy
Is Risk Good Or Bad?
Risk
Negative
Positive
Threat
Opportunity
Risk Definition
Risk: an uncertain event that, if it occurs, has a positive or
negative effect on a projects deliverables.
Project Risk Management

The systematic process of identifying, analyzing, and
responding, monitoring, and controlling project risks
Project Risk Planning

Plan Risk Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis

Plan
Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis

Deciding how to conduct risk management activities for a
project.

Project
Management
Plan
Project Charter
Analytical
Techniques
Stakeholder
Register
Expert
Judgment
Enterprise
Environmental
factors
Meetings
Org. Process
Assets
Risk
Management
Plan
Describes how risk management will be structured and
performed on the project.

A subset of the project management plan.

Methodology.
Roles and responsibilities.
Budgeting.
Timing.
Risk categories.
Definitions of risk probability and impact.
Probability and impact matrix.
Revised stakeholders tolerances.
Reporting formats.
Tracking.
Risk Categories
Definition of Risk Probability &

Impact
Impact Scale
Cardinal
Linear
Non-Linear
Ordinal
Impact Scale
Cardinal Linear (0.1, 0.3, 0.7, 0.9)
Cardinal Non-Linear (.05, .1, .2, .4, .8).

Cardinal Non-Linear is used to reflect focus on high risks.
Ordinal (Very Low, Low, Medium, High, Very High)
Probability Scale
Cardinal Linear (0.05, 0.1,0.2etc.)

Ordinal (Very unlikely, unlikely, moderate, likely, very likely,
almost certain)
Probability-Impact Matrix
Each risk is rated on its probability of occurring and impact
on an objective if it does occur.

The matrix shows low, moderate or high risks.
Risk Score= risk probability x risk impact
(Cardinal)
(Ordinal)
Identify Risks
Determining which risks may affect the project and
documenting their characteristics.
Identify Risks
Plan
Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Identify Risks

Activity Duration
Estimates
Scope Baseline
Schedule Management
Plan
Quality Management
Plan
Human Resource Plan
Project Documents
Procurement
Documents
Enterprise
Environmental Factors
Org. Process Assets
Risk Register
Documentation
Review
Information
Gathering
Techniques
Checklist Analysis
Assumptions
analysis
Diagramming
Techniques
SWOT Analysis
Expert Judgment
Documentation Review
Structured review of project documentation, including plans,
assumptions, previous project files, contracts and other

information at project level and detailed scope levels.
Information Gathering
Techniques
Brainstorming
Delphi Technique
Interviewing
Root cause analysis
Brainstorming
A group creativity technique designed to generate a large
number of ideas for the solution of a problem.

Everyone is allowed to express ideas freely and without
criticism.
Delphi Technique
A way to reach a consensus of experts who participate
anonymously.
A facilitator uses a questionnaire to solicit ideas about the
important risks.
Eliminates biasness and influence of individuals
Interviewing
Interviewing experienced project participants, stakeholders,
and subject matter experts to identify risks.
Root Cause Analysis

Also known as Fish-Bone Analysis or Ishikawa Analysis
Used to identify the problem, discover the underlying causes
leading to it, and develop solutions and preventive actions.
Root Cause Analysis
Checklist Analysis
Based on historical and project information.
Must be exhaustive (very difficult).
Important to review at project closure to improve on the
checklist for future projects.

One of the easier more common first steps.
Can be grouped into categories.
Assumptions Analysis
Review project assumptions.
Explores the validity of assumptions as they apply to the
project.
Identifies risks to the project from inaccuracy, inconsistency,
or incompleteness of assumptions.
SWOT Analysis
Internal Factors
Strengths.
Weaknesses.
External Factors
Opportunities.
Threats.
Risk Register
A document that contains the outcomes of risk planning.
At this stage includes:

List of identified risks.
List of potential scenarios.
Risk triggers
Perform Qualitative Risk Analysis
Prioritizing risks for further analysis or action by assessing
and combining their probability of occurrence and impact.

Assesses the priority of identified risks using their relative
probability or likelihood of occurrence.
Perform Qualitative Risk

Analysis
Plan
Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Perform Qualitative Risk Analysis
Risk Management
Plan
Risk Register
Risk Management
Plan
Project Scope
Statement
Organizational
Process Assets
Risk Probability
and Impact
Assessment
Probability and
Impact Matrix
Risk Data quality
assessment
Risk
Categorization
Risk Urgency
Assessment
Expert Judgment
Project Documents
Updates
Risk register Updates

Relative ranking or priority list of project risks.
Risks grouped by categories.

Causes of risk or project areas requiring particular attention.
List of risks requiring responses in the near-term.
List of risks for additional analysis and responses.
Watchlists of low-priority risks.
Trends in qualitative risk analysis results.
Perform Quantitative Risk Analysis
The process of numerically analyzing the effect of identified
risks on overall project objectives.

Performed on risks that have been prioritized by the
qualitative analysis.
Outcomes of Quantitative Risk

Analysis
Quantify possible outcomes and their probability.
Assess probability of achieving a specific objective.
Identify risks requiring most attention.

Identify realistic and achievable targets.
Determine best decision under uncertainty.
Perform Quantitative Risk

Analysis
Plan
Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Perform Quantitative Risk

Analysis
Risk Register
Risk
Management
Plan
Cost
Management
Plan
Schedule
Management
Plan
Enterprise
Environmental
Factors
Organizational
Process Assets
Data Gathering
and
Representation
Techniques
Quantitative
Risk Analysis
and Modeling
Techniques
Expert
Judgment
Project
Documents
Updates
Data Gathering and

Representation Techniques
Interviewing.
Probability distributions.
Quantitative Risk Analysis and

Modeling Techniques
Sensitivity Analysis
Expected Monetary Value Analysis
Modeling and Simulation
Sensitivity Analysis
Helps to determine which risks have the most potential
impact on the project.

It examines the extent to which the uncertainty of each
project element affects the objectives being examined when

all other uncertain elements are held at their baseline value.
Expected Monetary Value (EMV)

Statistical concept that calculates the average outcomes when
the future includes scenarios that may or may not happen

(i.e. analysis under uncertainty).
The EMV of opportunities will generally be expressed in
positive values while those of threats in negative values.

Calculated by multiplying the value of each possible outcome
by its probability of occurrence, and adding them together.
Expected Monetary Value (EMV)

EMV = Probability X Impact
All possible
outcomes
of a decision
Work
Package
Probability
Impact
EMV
10%
-$ 20,000
-$2,000
30%
$45,000
$13,500
68%
-$18,000
-$12,240
Total
-$ 740
Decision Tree Analysis
Graphical means of displaying all available options, their
probability, and their impact, to reach the final project

objective.
Decision Tree Analysis

EMV In house = (1000 150) * 0.5 + ( -30 150) * 0.5 = $ 335
$335
$550
EMV out source = (1000 250) * 0.8 + ( 0 250) * 0.2 = $ 550
Modeling & Simulation

Uses Monte Carlo Technique
A computerized technique that uses sampling from a random
number sequence to simulate characteristics or events or

outcomes with multiple possible values.
Used to generate probable outcomes based on estimates
processed / iterated thousands of times.
Modeling & Simulation

Provides probable project results and information for project
decision-making.
For Cost Risk Analysis, use cost estimates.
For Schedule Risk Analysis,
use the schedule network
diagram and duration estimates.
Illustrates the likelihood of
achieving specific cost / schedule

targets.
Monte Carlo Simulation
Monte Carlo Simulation

Mean=$46.67m
Probability (Cumulative)
100%
75%
50%
25%
12%
0%
$41m $50m
Cost
$30m $38.75m $47.5m $56.25m $65m
Plan Risk Responses

The process of developing options and actions to enhance
opportunities an to reduce threats to project objectives.
Plan Risk Responses

Plan
Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Plan Risk Responses

Risk Management
Plan
Risk Register
Strategies for
Negative Risks or
Threats
Strategies for
Positive Risks or
Opportunities
Contingent
Response
Strategies
Expert judgment
Project
Management Plan
updates
Project
Documents
Updates
Responses for Negative Risks

(Threats)
Avoidance.
Transference.
Mitigation.
Acceptance.
Avoidance
Changing project plan to eliminate the risk or condition or to
protect the project objectives from its impact.
Transference
Shifting some or all of the negative impact, along with
ownership of the response to a third party.

Examples of transference:
Insurance
Warranties
Guaranties
Performance bonds
Transfers risk, but does not eliminate it.
Mitigation
Reducing probability and/ or impact of risk to an acceptable
level.
Does not eliminate risk completely.
Mitigates probability and/ or impact.
Acceptance
Deciding not to change the project plan, to deal with a risk, or
being unable to identify suitable response strategy.

Includes active and passive acceptance:
Active acceptance: developing a contingency plan if risk
occurs.
Passive acceptance: no action is taken until risk happens.
Responses for positive risks

(Opportunities)
Exploit (vs. Avoid).
Share (vs. Transfer).
Enhance (vs. Mitigate).
Accept. (The same)
Outcomes From Risk Response

Planning
Residual Risk: Those that remain after avoidance, transfer or
mitigation responses have been taken.

Secondary Risk: That arise as a direct result of implementing a
risk response.
Contingency reserve needed: The amount of buffer needed to
reduce the risk of over runs.
At Orange
Exercise 11
Which Risk Response is This?
Exercise 12
Risk Identification & Analysis
PMBOK Reading
Chapter 11
- Section 11.1 - 11.5
Quiz 5
PART XII
PROJECT PROCUREMENT
MANAGEMENT
Planning Processes
Project Procurement
Management
The processes necessary to purchase or acquire products,
services or results from outside the project team.

Includes the contract management and change control
processes required to develop and administer contracts.
Includes also administering any contracts issued by an
outside organization (the buyer) that is acquiring the project
from the performing organization (the seller).
Project Procurement
Management
The organization, can be the buyer or seller of the product,
service or result under a contract.

Contract can be called:
Agreement.
Subcontract.
Purchase order.
Project Procurement
Management
Seller can be called:
Contractor
Subcontractor
Vendor
Service provider
Supplier
Buyer can be called:
Client
Customer
Service requester
Purchaser
Seller in a project
Bidder
Selected
Source
Contractor,
Supplier or Vendor
Project Procurement
Management
Plan
Procurement
Management
Conduct
procurements
Control
Procurements
Close
Procurements
Plan Procurements Management

Plan
Procurements
Management
Conduct
procurements
Control
Procurements
Close
Procurements
Plan Procurements
The process of documenting project purchasing decisions,
specifying the approach, and identifying potential sellers.

Should be accomplished during the scope definition effort to
specify:
Whether to procure or not?
How to procure?
What to procure?
How much to procure?
When to procure?
Project Managers Authority in

Procurement
It depends on the type of the contracting environment:
Centralized Contracting Environment
There is a procurement department & a procurement
manager who handle all procurements

The project Manager contacts the procurement manager
when he/she needs help regarding procurement
Decentralized Contracting Environment
Theres no procurement department
The project manager hires a procurement manager to work
full time on procurement & he will be reporting directly to
the Project Manager
Centralized Contracting Environment
Disadvantages
Advantages
Because they are part of the

procurement department that
focuses only on procurement,
they have high level of expertise
It provides its employees with

continuous improvement,
training & shared lessons
learned
They are more efficient & helpful

in understanding the managers
requirement in procurement
Employees have clear &

defined career path in
procurement profession
One procurement manager may

work on many projects, so the
attention will be divided among
many procurement projects
It may be more difficult for the

project manager to obtain
contracting help when needed
The project manager will not

have a full authority in the
procurement project
Decentralized Contracting Environment
Advantages
Disadvantages
The project manager has easier

access to contracting expertise
because the procurement
manager is a member of the team
The procurement manager has

more loyalty to the project
There is no home department for

the procurement manager to
return to after the project is
completed
Its more difficult to maintain a high
level of contracting expertise in the
company because theres no
procurement department
There may be an inefficient use of

procurement resources in projects
across the organization
There may be a little

standardization of procurement
practice from one project to the
next
No career path as a procurement

manager
Plan Procurements
Project
Management Plan
Requirements
Documentation
Risk Register
Activity Resource
Requirements
Project Schedule
Activity Cost
Estimates
Stakeholder
Register
Enterprise
Environmental
Factors
Organizational
Process Assets
Make-or-Buy
Analysis
Expert Judgment
Contract Types
Meetings
Procurement
Management Plan
Procurements
Statement of Work
Make-or-Buy
Decisions
Procurement
Documents
Source Selection
Criteria
Change Requests
Project
Documents
Updates
Make-or-Buy Analysis
A technique used to determine whether particular work can
best be accomplished by the project team or must be

purchased from outside sources.
If buy: Purchase or lease?
Should consider all related costs; direct and indirect.
Contract Types
Fixed price
Cost reimbursable
Time and material
Fixed Price Contracts

The most common type.
A total lump sum price against a well-defined product.
Three types:
Firm Fixed Price Contracts (FFP)
Fixed Price Incentive Fee Contracts (FPIF)
Fixed Price with Economic Price Adjustment Contracts (FP-
EPA)
Fixed Price Contracts

Advantages:
The most common type.
The buyer knows the price from the beginning.
Risk is on the seller
Disadvantages:
The buyer must prepare a detailed SOW ( more work on the
buyer)
The seller might try not to do everything according to the
SOW if he started loosing money
More cost on the buyer
Cost reimbursable Contracts

Paying the seller the actual cost, plus a fee.
Three types:
Cost-plus-fixed-fee (CPFF)
Cost plus incentive fee (CPIF)

Cost plus award fee (CPAF).
Cost reimbursable Contracts

Advantages:
No detailed SOW.
Less cost on the buyer than the FPC
Disadvantages:
Total cost is unknown
Risk is on the buyer
More work on the buyer ( since he has to audit the sellers
invoices )
Time & Material Contracts

Hybrid type of contractual agreement.
Contain aspects of both cost-reimbursable and fixed-price
types.
They are open ended, but on certain rates.
Time & Material Contracts

Advantages:
Quick to create
Duration brief
Used when expat acquisition & staff augmentation
Disadvantages:
Only good in small projects
Needs daily oversight & reports from the buyer ( more work)
Which Type is Better?

Depends on:
How well defined the contract statement of work is.
The amount and frequency of change expected.
The level of effort and expertise the buyer can devote to
managing the seller.

Industry standards for the types of contract used.
Amount of market competition.
Amount of risk.
Procurement Documents
A buyer-prepared formal request sent to each Seller.
The Basis upon which a seller prepares a bid for the
requested products.
RFP/ RFQ/RFI/IFB are used to solicit proposals to meet
procurement needs.
Statement of Work (SOW): procurement item in sufficient
detail to allow prospective sellers to determine if they are
capable of providing the item(s).
Statement of Objective (SOO): term used for a procurement
item that is presented as a problem to be solved.
Procurement Documents (RFP/

RFQ/RFI/IFB )
Once the contract type is selected & the procurement SOW has been
created, the buyer can put together the procurement documents

that describe their needs
Request for proposal (RFP): sometimes its called request for
Tender, it requests a detailed proposal on how the work will be
accomplished, who will do it, company experience, price, Technical
requirements, etc & it allows the company to detect benefits & risks
at early stage.. ( usually used with CR contracts)
Invitation for Bid ( IFB, or request for bid RFB): just to request a
total price to do all the work. (usually used with FP contracts)
Request for Quotation (RFQ): request a price quote per item, hour,
meter, or other unit of measure, used when price is the main factor (
usually used with T&M)
Request for Information (RFI): is simply looking for information , it
might be used before procurement documents are created, the
received information could help the company to identify the
required in order to send RFQ, RFP or IFB
(steps for preparing RFP)

1
Collect Requirement
from all stakeholders
2
Procurement SOW must be as

clear & concise as possible and
it must
describe all the work and
activities the seller is required to
complete
Define scope
Of the project
3
Prepare a detailed
SOW
4
Prepare RFP
How to write (RFP)
RFP usually includes:

Company
Background
which include a short company overview such as a brief
history , industry background, company size, etc..
Project
Definition
It is crucial for the vendor and project team to understand the

underlying business case for the project; that is, why the
project is being attempted. Also understand deliverables
expected from the project by the vendor
Project
Requirements
which include Technical requirements, functional

requirements, etc
Audience
Information about the und users
(RFP Form-Example)
REQUEST FOR PROPOSALS (RFP)
RFP NO. ______________
PROJECT TITLE:
PROPOSAL DUE DATE: __________ Time, Pacific Standard Time or Pacific
Daylight Time, Olympia, Washington, USA.
E-mailed bids will be accepted.
Faxed bids will not.
ESTIMATED TIME PERIOD FOR CONTRACT: ________ ___________

The Agency reserves the right to extend the contract for up to two additional oneyear periods at the sole discretion of the Agency.
CONSULTANT ELIGIBILITY: This procurement is open to those consultants that
satisfy the minimum qualifications stated herein and that are available for work in
Washington State.
CONTENTS OF THE REQUEST FOR PROPOSALS:
1.1.
1.
Introduction
2.
General Information for Consultants
3.
Proposal Contents
4.
Evaluation and Award
5.
Exhibits
A.
Certifications and Assurances
B.
Personal Service Contract with General Terms and Conditions
PURPOSE AND BACKGROUND
(NOTE: Provide a clear statement of the projects purpose, present system or process, and
perceived need, as well as any other background about the project, which may be
appropriate.)
The Washington State, <insert agency name>, hereafter called "AGENCY, is initiating this
Request for Proposals (RFP) to solicit proposals from firms interested in participating on a
project to _________________.
1.2.
OBJECTIVES AND SCOPE OF WORK
(NOTE:
1.3
Explain what the contract is intended to accomplish.).
MINIMUM QUALIFICATIONS
(NOTE:
Include what is required to be able to qualify for a contract.)
Source Selection Criteria
Can be only price if an

off-the-shelf product.
Other selection criteria take
into consideration:
Understanding of needs.
Overall life-cycle cost
Technical capability
Risk
Management approach
Technical approach
Warranty
Financial capability
Production capacity
Past performance
References
IP rights
They are included in the
procurement documents to
give the seller an
understanding of the buyers
needs
They help the seller on how

to prepare the bid
They become the basis by

which the buyer evaluates
the bids
Quiz 6
PMBOK Reading
Chapter 12
- Section 12.1
PART XIII
PROJECT STAKEHOLDER
MANAGEMENT
Planning Processes
Project Stakeholder Management

Identify
Stakeholders
Plan
Stakeholder
Management
Manage
Stakeholder
Engagement
Control
Stakeholder
Engagement
Plan Stakeholder Management

Identify
Stakeholders
Plan
Stakeholder
Management
Manage
Stakeholder
Engagement
Control
Stakeholder
Engagement
Plan Stakeholder Management

The process of developing appropriate management
strategies to effectively engage stakeholders through the

project life cycle, based on the analysis of their needs,
interests, and potential impact on project success.
It provides a clear, actionable plan to interact with project
stakeholders to support the projects interests.
Plan Risk Responses
Project
Management
Plan
Stakeholder
Register
Enterprise
Environmental
Factors
Organizational
Process Assets
Expert Judgment
Meetings
Analytical
Techniques
Stakeholder
Management
Plan
Project
Documents
Updates
Analytical Techniques
The engagement level of stakeholders can be classified as
follows:
Unaware Unaware of project and potential impacts
Resistant Aware of project and potential impacts and
resistant to change
Neutral Aware of project yet neither supportive nor
resistant
Supportive Aware of project impacts and supportive for
change
Leading Aware of project impacts and actively engaged in
ensuring the project is a success
Stakeholder Engagement
Assessment Matrix
Stakeholder
Stakeholder 1
Stakeholder 2
Stakeholder 3
Unaware
Resistant
Neutral
Supportive Leading
DC
A component of project management plan
Identifies the management strategies required to effectively
engage stakeholders
It can also provide

Desired and current engagement levels of stakeholders
Scope and impact of change to stakeholders
Identified interrelationships and potential overlap between
stakeholders
Stakeholder communication requirements for the current project
phase
Information to be distributed to stakeholders, including language,
format, content and level of detail
Reason for the distribution of that information and expected
impact to stakeholder engagement
Time frame and frequency for the distribution of required
information to stakeholders; and
Method for refining and updating the stakeholder management
plan as the project progresses and develops
PMBOK Reading
Chapter 13
- Section 13.1
PART XIV
EXECUTION
The Execution Processes

Direct & Manage Project Execution
Perform Quality Assurance
Acquire Project Team

Develop Project Team
Manage Project Team
Manage Communications
Conduct Procurement
Manage Stakeholder Engagement
Direct & Manage Project

Execution
The process of performing the work defined in the project
management plan to achieve project objectives.
Direct & manage

Project Execution
Performing activities to accomplish project requirements.
Creating project deliverables.
Staffing, training and managing the team members assigned to
the project.
Obtaining, managing, and using resources including material,
tools, equipment, and facilities.
Implementing the planned methods and standard .
Establishing and managing project communication channels,
both external and internal to the project team.
Direct & manage Project

Execution
Generating project data, such as cost, schedule, technical and
quality progress, and status to facilitate forecasting.

Issuing change requests and adapting approved changes into the
projects scope, plans and environment.
Managing risks and implementing risk response activities.
Managing sellers and suppliers; and
Collecting & documenting lessons learned, and implementing
approved process improvement activities.
Direct & manage Project

Execution
Deliverables
Project
Management
Plan
Expert Judgment
Approved Change
Requests
Project
Management
Information
System
Enterprise
environmental
Factors
Organizational
Process Assets
Meetings
Work
Performance
Data
Change Requests
Project
Management
Plan Updates
Project
Document
Updates
Deliverables
Any unique and verifiable product, result, or capability to
perform a service that is identified in the project

management planning documentation, and must be produced
and provided to complete the project.

The process of auditing the quality requirements and the
results from quality control measurements to ensure

appropriate quality standards and operational definitions are
used.

Plan
Quality
Management
Perform
Quality
Assurance
Control
Quality
Quality
Management
Plan
Process
Improvement
Plan
Quality Metrics
Quality Control
Measurements
Project
Documents
Quality
Management and
Control Tools
Quality Audits
Process Analysis
Change Requests
Project
Management
Plan Updates
Project
Document
Updates
Organizational
Process Assets
Updates
Quality Audits
A structured, independent review to determine whether
project activities comply with organizational and project

policies, processes, and procedures.
Can be scheduled or random.
Can be conducted by external or internal auditors.
Result in:
Reduced cost of quality.
Increase in sponsor or customer acceptance.
Objectives of Quality Audits

Identify all the good/ best practices being implemented.
Identify all the gaps/ shortcomings.
Share the good practices introduced or implemented in similar
projects in the organization and/ or industry.

Proactively offer assistance in a positive manner to improve
implementation of processes to help the team raise productivity.
Highlight contributions of each audit in the lessons learned
repository of the organization.
Process Analysis
Follows steps outlined in the process improvement plan to
identify needed improvements.

Updates
Quality Standards.
Processes.

Updates
Quality management plan.
Schedule management plan.
Cost management plan.
Project Document Updates

Quality audits reports.
Training plans.
Process documentation.
Gold Plating
Giving Extra
Bad and should be avoided

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

The project management team may or may not have direct
control over team members selection because of:

Collective bargaining agreements.
Use of subcontractor personnel.
Matrix project environment.
Internal or external reporting relationships.

Plan
Human
Resource
Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team
Human Resource
Management
Plan
Pre-assignment
Enterprise
Environmental
Factors
Acquisition
Organizational
Process Assets
Multi-Criteria
Decision
Analysis
Negotiation
Virtual Teams
Project Staff
Assignments
Resource
Calendars
Project
Management
Plan Updates
Pre-assignment
When project team members are known in advance.
If the project is a result of:
Specific people being promised as part of a proposal.
The project is dependent on the expertise of particular
persons.
Some staff assignments are defined within the project
charter.
Negotiation
Negotiating with:
Functional managers.
Other project management teams within the organization.
External organizations, vendors, suppliers, contractorsetc.
Acquisition
When the needed resources are not available in-house.

Can involve hiring individual consultants or subcontracting
work to another organization.
Virtual Teams
Groups of people with a shared goal who fulfill their roles
with little or no time spent meeting face-to-face.

The ease of communication through electronic means made
virtual teams more feasible.
Communication planning becomes increasingly important in
virtual team environment.
Virtual Teams
Virtual teams make it possible to:
Form teams of people from the same organization who live in
widespread geographic areas.

Add expertise that cant exist at the same location.
Incorporate employees who work from home.
Allow team members who work different shifts or hours to
participate.
Include people with mobility limitations or disabilities.
Reduce travel expenses.
Multi-Criteria Decision Analysis

Criteria is developed and used to rate or score potential team
members
Examples Include
Availability
Cost
Experience
Ability
Knowledge
Skills
Attitude
International Factors

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

performance.
Project managers should create an environment that
facilitates teamwork.

Developing project teams include:
Improving skills of team members
Improving feelings of trust & cohesiveness
Creating a dynamic and cohesive team culture to improve
both individual and team productivity, team spirit and

cooperation
Examples include assisting one another, and communicate
in ways that fit individual preference.

Plan
Human
Resource
Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team

Project Staff
Assignments
Human Resource
Management Plan
Resource
Calendars
Interpersonal Skills
Training
Team Building
Activities
Ground Rules
Co-location
Reward &
Recognition
Personnel
Assessment Tools
Team
Performance
Assessments.
Enterprise
Environmental
Factors Update.
Sometime known as Soft Skills
Include:
Empathy.
Influence.
Creativity.
Group facilitation.
Training
Can be:
Formal
Informal
Training methods:
Classroom.
Online.
Computer-based.
On the job
Coaching
Mentoring.
Team Building Activities

Can vary from a five-minute agenda item to an off-site,
professionally facilitated experience to improve interpersonal

relationships.
The objective is to help individual team members to work
together effectively.
Particularly valuable when team members work from
different locations.
Informal communication and activities can help in building
trust and establishing good working relationships.
Team development Stages

Forming.
Storming.
Norming.
Performing.
Adjourning.
Forming
The team meets and learns about the project and what their
formal roles and responsibilities are.

Team members tend to be independent and open in this phase.
Team members are usually on their best behavior but very
focused on themselves.
In this stage the members of the team get to know one another,
exchange some personal information, and make new friends.
Storming
Team begins to address the project work, technical decisions,
and the project management approach.

If team members are not collaborative and open to differing
ideas and perspectives the environment can become
destructive.
In some cases, the team never leaves this stage.
The role of project manager is cruicial in this stage. Tolerance
and patience will help in passing through it successfully.
Norming
Team members begin to work together and adjust work
habits and behaviors to support the team.

Team begins to trust each other.
Motivation increases as the team gets more acquainted with
the project.
As team members get to know each other better, their views
of each other begin to change
Performing
Teams should try to reach this stage as quickly as possible.
Teams that reach this stage function as a well-organized unit.

Teams at this stage are able to function as a unit as they find
ways to get the job done smoothly and effectively without

inappropriate conflict or the need for external supervision.
Adjourning
The team completes the work and move on from the project.
Mourning over the dissolving of the team relationship, and
begin preparing for change in individual work requirements.
Ground Rules
Establishing clear expectations regarding acceptable and
unacceptable behavior.
Examples include:
How team members should resolve conflicts.
Is interruption in meetings allowed or not.
Coming late to meetings.
Phone calls.
Smoking.
Whos allowed to talk to senior management.
Whos authorized to give directions to vendors/
subcontractors.
Work times.
Codes of dress.
Co-location
Involves placing many of the team members in one physical
location.
Can be temporary in some cases.
Can be used in conjunction with virtual teams.
Enhances ability to perform as a team.
War rooms.
Recognition and Rewards

For desirable behaviors only.
Through performance appraisal.

Should satisfy needs valued by individuals.
Should focus on win-win instead of win-lose.
Generally, money is viewed as a very tangible aspect of a
reward system.
Team performance Assessments

Formal or informal
Conducted by the project management team
The performance of successful team is measured according to
agreed upon project objectives

Evaluation indicators include:
Improvements in skills
Improvements in competencies
Reduced staff turn over rate
Increased team cohesiveness
Should trigger actions such as training, changes,
recommendations, etc..
Manage Project Team

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

project performance.
The project management team:
Observes team performance.
Manages conflict.
Resolves issues.
Appraises team performance.
Manage Project Team

Plan
Human
Resource
Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team
Manage Project Team

Project Staff
Assignments
Human
Resource
Management
Plan
Team
Performance
Assessments
Issue Log
Work
Performance
Reports
Organizational
Process Assets
Observation
and
Conversation
Project
Performance
Appraisals
Conflict
Management
Interpersonal
Skills
Enterprise
Environmental
Factors
Updates
Organizational
Process Assets
Updates
Change
Requests
Project
Management
Plan Updates
Project
Documents
Updates
Observation & Conversation

Used to stay in touch with the work and attitudes of project
team members.
Project management team monitors progress towards:
Project deliverables.
Accomplishments.
Interpersonal issues.
Project Performance Appraisals

Can be formal or informal depending on the length of the
project, organizational policy, project complexity and the

amount and quality of regular communication.
Objectives include:
Clarification of roles and responsibilities.
Constructive feedback to team members.
Discovery of unknown or unresolved issues.
Development of individual training plans.
Establishment of specific goals for future time periods.
Conflict Management
Should conflict be avoided?
Conflict Management
Conflict in projects is inevitable

Why?
Sources of Conflict in projects

Scarcity of resources.
Scheduling priorities.
Personalities.
Limited power of project manager.
Facts about Conflict

Natural and forces search for alternatives.
Is a team issue.
Openness resolves conflict.
Should focus on issues, not personalities.
Should focus on the present, not the past.
How Can Conflict Be Minimized?
Communication.
Planning
Ground rules.
Identification of root causes and resolving them.
Involving team members in resolution.
Conflict Resolution Techniques

Withdrawing/Avoiding.
Smoothing/ Accommodating.
Compromising.
Forcing.
Collaborating.
Confronting/ problem solving.
Withdrawing/ Avoiding
Retreating from an actual or potential conflict situation.
A passive, stop-gap way of handling conflict.
Appropriate when a cooling-off period is needed, and when
the other party is unassertive and uncooperative.

A lose-lose technique
Generally fails to solve the problem.
Should not be used when the conflict deals with an issue that
is of immediate concern or is important to the successful
completion of the project.
Smoothing/ Accommodating
Emphasizing areas of agreement rather than areas of
difference.
An appeasing approach.
Appropriate to keep harmony and avoid outwardly conflictive
situations.
Fails to provide permanent long-term solution to the
underlying conflict.
Generally, conflict reappears in a different form.
A lose-lose technique
Compromising
Searching for a solution that bring some degree of
satisfaction to all parties.

Is primarily bargaining, receiving something in exchange for
something else.
Appropriate when reached and accepted as a just solution by
both parties involved in conflict.
Usually provides acceptable solutions.
Sometimes, important aspects of the project cant be
compromised to achieve personal objectives.
forcing
Pushing ones view at the expense of others.
A win-lose situation.
Used when there is no common ground for bargaining or
negotiation.
Also used when both parties are uncooperative and strongwilled.
Appropriate when time is of essence, and issue is vital for the
well-being of project.
Usually takes less time than other techniques, but leaves hard
feelings.
Conflict resolved by forcing may develop again and haunt the
enforcer.
Should be used only as a last resort.
Collaborating
Incorporating multiple view points and insights from
differing perspectives.
Leads to consensus and commitment.
Used when the situation is too important to be compromised.
Not very effective when more than a few players are involved
and their viewpoints are mutually exclusive.
Confronting/ Problem Solving

Treating conflict as a problem to be solved by examining
alternatives.
Requires a give-and-take attitude and open dialogue.
Involves pinpointing the issue and resolving it objectively by
defining the problem, gathering necessary information,
generating and analyzing alternatives, and selecting the best
alternative.
Requires open dialogue between participants, who must be
mature, understanding, and competent-both technically and
managerially.
Takes longer than other techniques.
Provides ultimate solutions.
SUMMARY
Techniques
Forcing
Description
Solution
forcing a solution from one side, Permanent Win-lose

not the best solution.
Smoothing /
attempting to underestimate the Temporary Lose-lose
Accommodatin conflict.
g
Compromising brings some degree of satisfaction Permanent: Lose-lose
to both parties.
commitmen
t
Confrontation Treating conflict as a problem;
Permanent Win-win
/ Problem
solving the real problem, most
Solving
often used by project managers.
Collaborating Incorporating multiple viewpoints Permanent Win-win
and insights from differing
perspectives; leads to consensus
and commitment.
Withdrawal / retreating or postponing a
Temporary Lose-lose
Avoidance
decision never results in
resolution.
To Resolve a Conflict
Assure Privacy
Empathize than sympathize

Listen actively
Maintain equity
Focus on issue, not on personality
Avoid blame
Identify key theme
Re-state key theme frequently
Encourage feedback
Identify alternate solutions

Give your positive feedback
Agree on an action plan
Conflict Management Exercise
The process of making relevant information available to
project stakeholders as planned.

Implementing the Communications Management Plan
Responding to unexpected requests for Information
Effective information distribution includes:
Sender-receiver modules.
Choice of media.
Writing style.
Meeting management techniques.
Presentation techniques.
Facilitation techniques.
Plan
Communications
Management
Manage
Communications
Control
Communications
Communications
Management Plan
Work
Performance
Reports
Enterprise
Environmental
Factors
Organizational
Process Assets
Project
Communications
Communication
Technology
Communication
Models
Communication
Methods
Information
Management
System
Performance
Reporting
Project
Management
Plan Updates
Project
Documents
Updates
Organizational
Process Assets
Updates
Communication Methods
Individual and group meetings.

Video and audio conferences.
Computer chats.
Other remote communications methods.

(update)
Stakeholder notifications.
Project reports.
Project presentations.
Project records.
Feedback from stakeholders.
Lessons learned documentation.
Distribute Information
Lost in translation
Plan Procurements Management

Plan
Procurements
Management
Conduct
procurements
Control
Procurements
Close
Procurements
Conduct Procurements
Project Management
Plan
Procurement
Documents
Source Selection
Criteria
Seller Proposals
Project Documents
Make or Buy
Decisions
Procurement
Statement of Work
Organizational
Process Assets
Bidder Conferences
Proposal Evaluation
Techniques
Independent
Estimates
Expert Judgment
Advertising
Analytical
Techniques
Procurement
Negotiations
Selected Sellers
Agreements
Resource Calendars
Change Requests
Project Management
Plan Updates
Project Documents
Updates
Proposal
Seller-prepared Documents.
Describe the sellers ability & willingness to provide the
requested products.
Constitutes a formal and technical offer in response to a
buyers request.
Bidder Conference
Also called: Contractor Conferences, Vendor Conferences, and
Pre-Bid Conferences.
Meeting Prospective Sellers before bids preparation, to
ensure clear and common understanding of procurement.
All potential sellers are given equal standing during the
conference.
Advertising
Placing advertisements in general and specialty publications.
Proposal Evaluation Techniques

Can involve subjective and objective components.
Multiple reviewers.
Develop Qualified Sellers List

List of sellers asked to submit a proposal.
Developed from the organizational assets.

Or project management team can develop from own sources.
Select Sellers
Lowest price is not necessarily lowest cost.
Price might be the only factor in off the shelf items.

Proposals are split into commercial and technical sections.
Multiple sources may be required.
Select Seller
Weighed System: method for quantifying qualitative data to
minimize the personal prejudice on source selection

Independent Estimates: An estimate of what the seller should
price the service/ product
Screening System: establishing minimum requirements of
performance for one of more of the evaluation criteria
Contract Negotiation: Clarification & mutual agreement on
contract aspects
Independent Estimates
The procuring organization may either prepare its own
independent estimates, or have an estimate of cost prepared

by an external professional estimator.
Should-be price.
Significant difference between seller price and estimates
might happen as a result of:
Statement of work is unclear.
Prospective seller didnt understand or fully respond.
Change in market condition.
Select Seller
Weighed System: Method for quantifying qualitative data to
minimize the personal prejudice on source selection
Example
Criteria
Weight
Rate
(1-100 scale)
Score
Number of years in
business
5%
50
2.5
Understanding of needs
25%
80
20
Technical Ability
15%
30
4.5
Total
27
Conduct Procurements
The process of obtaining seller responses, selecting a seller,
and awarding a contract.
Select Seller
Independent Estimates: An estimate of what the seller
should price the service/ product

The procuring organization may either prepare its own
independent estimates, or have an estimate of cost prepared
by an external professional estimator
Should-be price.
Significant difference between seller price and estimates
might happen as a result of:
Statement of work is unclear.
Prospective seller didnt understand or fully respond.
Change in market condition.
Select Seller
Screening System: Establishing minimum requirements of
performance for one of more of the evaluation criteria

Eliminates sellers who dont meet the minimum
requirements of the source selection criteria
Select Seller
Contract Negotiation: Clarification & mutual agreement on
contract aspects, main items to negotiate on are:

Scope
Schedule
Price & terms of payment
After Sales/After service
Obtain a fair &

reasonable price
Develop a good
Objectives of Negotiations relationships with
the seller
Select Seller
Negotiations Tactics
Attacks
Personal Insults
Good guy/bad
guy
Deadline
if your organization cant manage the
details of the operations perhaps it should

get out of the business
if you dont understand what you are doing
perhaps you should find another job

One person is helpful to the other side
while the other is difficult to deal with

We have a flight at 5pm and we must finish
negotiations before that time
Select Seller
Negotiations Tactics
Limited Authority
Missing man
I cant shorten the schedule Im not
authorized, limited authority statements are

not necessary true
Only my boss can agree on that &my boss is
not here, lets only agree on this

Withdrawal
Fair &
Reasonable
Fait accompli
To show that theres a less interest

Lets be reasonable just accept that offer as
it stands
This is a done deal
Seller Rating Systems
Uses information on:

Sellers Past Performance
Quality Ratings
Delivery Performance
Contractual Compliance
Selected sellers
Those sellers who have been judged to be in a competitive
range based upon the outcome of the proposal or bid

evaluation, and who have negotiated a draft contract that will
become the actual contract when the award is made.
Agreements
Includes terms and conditions, and may incorporate other
items that the buyer specifies regarding what the seller is to

perform or provide.
Mutually binding legal agreement:
Obligates the seller to provide.
Obligates the buyer to pay.
Legal relationship subject to remedy in courts.
Agreements
Components can include:
Statement of work or deliverables
Schedule baseline
Performance reporting
Period of performance
Roles and responsibilities
Pricing
Payment terms
Place of delivery
Others
Murder on the Orient Express
Manage Stakeholders Engagement
The process of communicating and working with
stakeholders to meet their needs and addressing issues as

they occur.
Increases the likelihood that project will not veer off track
due to unresolved stakeholders issues and unmatched
expectations.
Key benefit is that it allows project manager to increase
support and minimize resistance from stakeholders.
Manage Stakeholders Expectations
Involves communication activities directed towards project
stakeholders to influence their expectations, address

concerns, and resolve issues. Such as:
Actively managing the expectations of stakeholders to
increase the likelihood of project acceptance by negotiating
and influencing their desires to achieve project goals.
Addressing concerns that have not become issues yet.
Clarifying and resolving issues that have been identified.
Manage Stakeholder Engagement

Identify
Stakeholders
Plan
Stakeholder
Management
Manage
Stakeholder
Engagement
Control
Stakeholder
Engagement
Manage Stakeholders Engagement
Issue Log
Stakeholder
Management Plan
Communications
Management Plan
Change Log
Organizational
Process Assets
Communication
Methods
Change
Requests
Interpersonal
Skills
Organizational
Process Assets
Updates
Management
Skills
Project
Management
Plan Updates
Project
Document
Updates
Issue Logs
Also called action item log.

Tool to document and monitor the resolution of issues.
Addressed in order to maintain good, constructive working
relationships.
Building trust.
Resolving conflict.
Active listening.
Overcoming resistance to change.
The 8 Steps for Leading

Change*
Establishing a sense of urgency.
Creating the guiding coalition.
Developing a vision and strategy.
Communicating the change vision.

Empowering employees for broad-based action.
Generating short-term wins.
Consolidating (accumulating) gains and producing more
change.
Anchoring new approaches in the culture.
* Leading Change- John P. Kotter
Management Skills
Facilitate consensus toward project objectives

Influence people to support the project
Negotiate agreements to satisfy the project needs, and
Modify organizational behavior to accept the project outcomes
Project Document (Update)
Stakeholder management strategy.

Stakeholder register.
Issue log.
What Makes Great Project

Managers?
Shackleton Story
Expedition
Mission: Crossing Antarctica and coming back
"All the money that was ever minted would

not have bought that biscuit and the
remembrance of that sacrifice will never
leave me".
Frank Wild- A companion
Newspaper Advertisement
MEN WANTED: FOR HAZARDOUS JOURNEY.
SMALL WAGES, BITTER COLD, LONG
MONTHS
OF COMPLETE DARKNESS, CONSTANT
DANGER, SAFE RETURN DOUBTFUL.
HONOUR AND RECOGNITION IN CASE OF
SUCCESS.
- SIR ERNEST SHACKLETON
Would You Go?
"For scientific leadership, give me Scott (Robert

Falcon); for swift and efficient travel, Amundsen; but
when you are in a hopeless situation, when there
seems to be no way out, get on your knees and pray
for Shackleton.
- Sir Raymond Priestley
Why was Sir Ernest Shackleton

that successful?
EQ vs. IQ
What is Emotions?
Emotions
?Can we Control Our Emotions
What is Emotional Intelligence?
Golemans Framework of
Emotional Competencies
Self
Other
(Personal Competence) ( Social Competence)
Recognition
Self Awareness
-Emotional self awareness
-Accurate self-assessment
-Self confidence
Self Management
Regulation
-Emotional self control

-Transparency
-Adaptation
-Achievement
-Initiative
- Optimism
Social Awareness
-Empathy
-Organizational awareness
-Service
Relationship
Management
-Inspirational leadership
-Influence
-Developing others
-Change catalyst
- Conflict Management
-Building bonds
-Teamwork and
collaboration
EMOTIONAL INTELLIGENCE FRAMEWORK FOR

PROJECT MANAGEMENT
5.Team Leadership
-Communication
-Conflict Management
-Inspirational Leadership
3.Social Awareness
-Empathy
- Emotional Boundaries
1.Self Awareness
-Self confidence
4. Relationship
Management
-Stakeholder Relationship
-Developing others
-Truth Telling
2.Self
Management
-Self -Control
Emotional Intelligence Framework for

Project Management
5.Team Leadership
-Communication
3.Social Awareness
-Empathy
1.Self Awareness
-Self confidence
4. Relationship
Management
-Developing others
-Truth Telling
2.Self
Management
-Self -Control

Project Management
5.Team Leadership
-Communication
3.Social Awareness
-Empathy
1.Self Awareness
-Self confidence
4. Relationship
Management
-Developing others
-Truth Telling
2.Self
Management
-Self -Control
Self Awareness
Accurate Self-Assessment
Aware of Strengths & Weaknesses

Reflective, learning from experience
Open to Candid Feedback
Able to show a sense of humor and
perspective about oneself.
Self Awareness
Self Confidence
Present self with self-assurance; have

presence
Can voice views and express opinion even if
unpopular.
Decisive.
Able to make decisions despite uncertainties
and pressure
Self Awareness
Emotional Self-Awareness (red flags)
Inappropriate Humor
Use of Sarcasm
Passive Aggressive Behavior
Playing the Victim
Hostility

Project Management
5.Team Leadership
-Communication
Inspirational Leadership
3.Social Awareness
-Empathy
1.Self Awareness
-Self confidence
4. Relationship
Management
-Influence
-Developing others
-Truth Telling
Self- Control
Self-control is the ability to remain composed in spite of
emotional state.
Self-control is for all emotions.
Hot Buttons
Techniques to Improve SelfManagement

1- Identify the feeling
2- Determine the underlying cause
3- Take action to get clear
Additional Techniques
1- Reduce your stress level
2- Conduct an Inner-Dialogue
3- Take it out with someone
4- Give yourself a time out
5- Write a letter or email you will not send
6- Take care of yourself
And Remember: Its not worth dying for!!!

Project Management
5.Team Leadership
-Communication
Inspirational leadership
3.Social Awareness
-Empathy
1.Self Awareness
-Self confidence
4. Relationship
Management
-Influence
-Developing others
-Truth Telling
2.Self Management
- Self -Control
Social Awareness
Empathetic Listening
Let others speak

Maintain eye contact
Give the speaker your full attention
Playback and summarize
Try on their shoes
Suspend our judgment
Social Awareness
Organizational Awareness
The ability to read the currents of emotions and political
realities in groups
- Cary Cherniss and Daniel Goleman
Social Awareness
Emotional Boundaries
Good fences make good neighbors
Emotional Intelligence Framework

for Project Management
5.Team Leadership
-Communication
-Inspirational
leadership
3.Social Awareness
-Empathy
-Organizational
awareness
-Emotional
Boundaries
1.Self Awareness
4. Relationship
Management
-Stakeholder
Relationship
-Influence
-Developing others
-Truth Telling
2.Self Management
-Self Control

-Self confidence
Emotional Intelligence Framework

for Project Management44
5.Team Leadership
-Communication
-Inspirational
leadership
3.Social Awareness
-Empathy
-Organizational
awareness
- Emotional
Boundaries
1.Self Awareness
-Emotional self
awareness
Accurate selfassessment
Self confidence
4. Relationship
Management
-Influence
-Developing others
-Truth Telling
2.Self Management
-Self Control
Quiz 7
PMBOK Reading
Chapter 3
Section 3.5
Chapter 4
Section 4.3
Chapter 8
Section 8.2
Chapter 9
Sections 9.2 - 9.4

Chapter 10
Sections 10.2
Chapter 12
Section 12.2
Chapter 13
Section 13.3
PART XV
MONITORING &
CONTROLLING
Monitor & Control Project Work

The process of tracking, reviewing, and regulating the
progress to meet the performance objectives defined in the

project management plan.
It includes collecting, measuring, and distributing
performance information, and assessing measurements and

trends to effect process performance.

Comparing actual work performance against the project
management plan.
Assessing performance to determine whether any corrective or
preventive actions are indicated, and then recommending those
actions as necessary.
Identifying new risks and analyzing, tracking, and monitoring
existing 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 projects product(s) and the associated documentation

through project completion.
Providing information to support status reporting, progress
measurement, and forecasting.
Providing forecasts to update current cost and current
schedule information; and
Monitoring implementation of approved changes as they
occur.
Project
Management Plan
Schedule
Forecasts
Cost Forecasts
Validated Changes
Work
Performance
Reports
Enterprise
Environmental
Factors
Organizational
Process Assets
Expert Judgment
Change Requests
Analytical
Techniques
Work
performance
reports
Project
management
information
software
Project
Management
Plan Updates
Meetings
Project
Document
Updates
Change Requests
Needed because change is inevitable.
Happen as a result of comparing actual results with planned resul

May:
Expand
Adjust
Reduce
Project and product scope
Changes May Include

Corrective Actions: A documented direction for executing the
project work to bring expected future performance of the project

work in line with the project management plan.
Preventive Actions: A documented direction to perform an
activity that can reduce the probability of negative consequences
associated with project risks.
Defect Repairs: The formally documented identification of a
defect in a project component with a recommendation to either
repair the defect or completely replace the component.
Perform Integrated Change

Control
The process of reviewing all change requests, approving
changes and managing changes to the deliverable,

organizational process assets, project documents, and the
project management plan.
Conducted from project inception through completion.

Control
Influencing the factors that circumvent integrated change
control so that only approved changes are implemented.

Reviewing, analyzing, and approving change requests promptly,
which is essential, as a slow decision may negatively affect time,
cost or the feasibility of the change.
Managing the approved changes.
Maintaining the integrity of baseline by releasing only approved
changes for incorporation into the project management plan
and project documents.

Control
Reviewing, approving, or denying all recommended
corrective and preventive actions.

Coordinating changes across the entire project (e.g., a
proposed schedule change will often affect cost, risk, quality,
and staffing); and
Documenting the complete impact of change requests.
Facts About Integrated Change

Control
Change control is necessary because projects seldom run
exactly according to project management plan.

Changes are incorporated into a revised plan.
Corrective and preventive actions are taken to control the
project performance.
Monitoring gives insight on project health & areas that
require special attention.
Steps for Integrated Change

Control
Prevent the root cause of change.
Identify change.
Create a change request.
Assess the change.

Assess impact.
Perform integrated change control.
Look for options.
Approve or reject change.
Adjust the project management plan and baseline.
Notify stakeholders.
Manage the project to new project management plan.
Details are sent to the PM

Event happens to
trigger a change
to the Scope by
*****or one of its
partners
Change Request is filled ,

with reasons ,details ,and
possible impacts .
Change Management
Procedure
Name of Project
Impacts of change are

evaluated on the
schedule ,cost ,and/or
quality
Change Request is
logged in the Changes
Log as Change
Requested
PM presents the change
to the committee for
approval with impacts &
alternatives) if any (
Project
Plan
Risks List
Issue
Change
Order?
Changes
Log
Project
Cost
Decision Made
Change and its impacts
are logged in the
Changes Log ,necessary
amendments to the plan ,
deliverables ,change
orders ,and invoices are
processed
YES
Change
Approved
NO
Change is either
discarded ,logged in
future enhancements or
issues log

Control
Project
Management
Plan
Expert Judgment
Approved
Change Request
Meetings
Change Log
Change Control
Tools
Change Requests
Project
Management
Plan Updates
Enterprise
Environmental
Factors
Project
Document
Updates
Work
Performance
Reports
Organizational
Process Asset
Configuration Management
System
A configuration management system with integrated
change control provides a standardized, efficient and

effective way to centrally manage approved changes and
baselines within a project.
Configuration control is focused on the specifications of
both the deliverables and processes,
While change control is focused on identifying,
documenting and controlling changes to the project and
product baselines.
CONFIGURATION
MANAGEMENT SYSTEM
Configuration management with integrated change control
processes achieve the following objectives;

Establishes an evolutionary method to consistently identify
and request changes to established baselines, and to assess
the value and effectiveness of those changes
Provides opportunities to continuously validate and
improve the project by considering the impact of each
change, and
Provides the mechanism for the project management team
to consistently communicate all approved and rejected
changes to the stakeholders
Configuration Management
Activities
Configuration Identification
Configuration Status Accounting
Configuration Verification and Audit
Configuration Identification
Selection and identification of a configuration item provide
the basis for which product configuration is defined and

verified, products and documents are labeled, changes are
managed, and accountability is maintained.
Configuration Status Accounting

Information is recorded and reported as to when appropriate
data about the configuration item should be provided. The

information includes a listing of approved configuration
identification, status of proposed changes to the
configuration, and the implementation status of approved
changes.
Configuration Verification and

Audit
Configuration verifications and configuration audits ensure
the composition of a projects configuration items is correct

and that corresponding changes are registered, assessed,
approved, tracked and correctly implemented. This ensures
the functional requirements defined in the configuration
documentation can be met.
Validate Scope
The process of formalizing acceptance of the completed
project deliverables.
Includes reviewing deliverables with the customer or
sponsor to ensure that they are completed satisfactorily and
obtaining formal acceptance of deliverables by the customer
or sponsor.
Validate Scope Vs. Quality Control
Verify scope is concerned with acceptance of work results
while perform quality control is concerned with the

correctness of the work results.
Quality control is generally performed before scope
verification, but the two processes can be performed in
parallel.
Validate Scope
Plan Scope
Management
Collect
Requirements
Define Scope
Control Scope
Create WBS
Validate Scope
Validate Scope
Project
Management Plan
Inspection
Requirements
documentation
Group decisionmaking
techniques
Requirements
traceability
matrix
Verified
deliverables
Work
performance data
Accepted
Deliverables
Change Requests
Work
performance
information
Project
Document
Updates
Control Scope
The process of monitoring the status of the project and
product scope and managing changes to the scope baseline.

Controlling project scope ensures all requested changes and
recommended corrective or preventive actions are processed
through the Perform Integrated Change Control process.
Control Scope
Project scope control is also used to manage the actual
changes when they occur and is integrated with the other

control processes.
Uncontrolled changes are often referred to as project scope
creep
Control Scope
Plan Scope
Management
Collect
Requirements
Define Scope
Control Scope
Create WBS
Validate Scope
Control Scope
Project
Management
Plan
Work
performance
data
Requirements
documentation
Requirements
traceability
matrix
Organizational
Process Assets
Variance
Analysis
Work
Performance
Information
Organizationa
l Process
Assets
Updates
Change
Requests
Project
Management
Plan Updates
Project
Document
Updates
Variance Analysis
Project performance measurements are used to assess the
magnitude of variation from the original baseline.

It determines the cause and degree of variance relative to the
scope baseline, and decides whether corrective or preventive
action is required.
Control Schedule
The process of monitoring the status of the project to update
project progress and manage changes to the schedule

baseline.
Schedule control is concerned with:
Determining the current status of project

schedule.
Influencing the factors that create schedule
changes.
Determining that the project schedule has
changed, and
Managing the actual changes as they occur.
Control Schedule
Plan Schedule
Management
Define
Activities
Sequence
Activities
Develop
Schedule
Estimate
Activity
Resources
Estimate
Activity
Durations
Control
Schedule
Control Schedule
Project Management
Plan
Performance Reviews
Work performance
data
Project Management
Software
Project Schedule
Resource
Optimization
Techniques
Project calendars
Schedule data
Organizational
Process Assets
Modeling Techniques
Leads & Lags
Schedule Compression
Scheduling Tool
Work Performance
Information
Schedule Forecasts
Organizational
Process Assets
Updates
Change Requests
Project Management
Plan Updates
Project Document
Updates
Control Cost
The process of monitoring the status of the project to update
the project budget and managing changes to the cost

baseline.
Involves recording actual costs spent to date.
Important to determine:
Cause of a variance, whether positive or

negative.
Magnitude of the variance.
Decide if variance requires corrective
action.
Control Cost Includes

Influence the factors that create changes to the cost baseline.
Ensuring requested changes are agreed upon.

Managing the actual changes when they occur.
Assuring that potential cost overruns do not exceed the
authorized funding periodically and in total.

Monitoring cost performance to detect and understand
variances 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 stakeholders of approved changes.
Acting to bring expected cost overruns within acceptable
limits.
Control Costs
Plan Cost
Management
Estimate
Costs
Determine
Budget
Control
Costs
Control Costs
Project Management
Plan
Work performance
data
Project Funding
Requirements
Organizational
Process Assets
Earned Value
Management
Forecasting
To-complete
Performance Index
Performance
Reviews
Reserve Analysis
Project
Management
Software
Work Performance
Information
Cost Forecasts
Organizational
Process Assets
Updates
Change Requests
Project
Management Plan
Updates
Project Document
Updates
Earned value Management (EVM)

Methodology that measures project progress by comparing
actual schedule & cost performance against planned

performance as laid out in the schedule & cost baseline.
Work does not earn value until it is completed.
Earned value Management (EVM)

Relates Three Values:
Planned Value (PV)

Earned Value (EV)
Actual Costs (AC)
Budget At Completion (BAC).
Planned Value (PV)

Budgeted Cost of Work Scheduled (BCWS)
Earned Value (EV)

Budgeted Cost of Work Performed (BCWP)
ACTUAL COSTS (AC)

Actual Cost of Work Performed (ACWP)
Budget At Completion (BAC)

Project Estimated Budget
Schedule Variance
Any difference between the scheduled completion of an
activity and the actual completion of that activity.

Schedule Variance is the earned value minus the planned
value
Schedule Variance = Earned Value - Planned Value
SV = EV - PV
Cost Variance
Any difference between the budgeted cost of an activity and
the actual cost of that activity.

Cost Variance is the earned value minus the planned value
Cost Variance = Earned Value Actual Cost
CV = EV - AC
Variance Values
Schedule Variance:
If SV= 0, then schedule is on track.

If SV 0, then project is ahead of schedule
If SV 0, then project is behind schedule
Cost Variance
If CV= 0, then project is on budget.

If CV 0, then project is below budget (Cost Saving)
If CV 0, then project is above budget (Cost Overrun)
Schedule Performance Index (SPI)

SPI = EV / PV
Cost Performance Index (CPI)

CPI = EV / AC
Performance Index Values

Schedule Variance:
If SPI= 1, then schedule is on track.

If SPI 1, then project is ahead of schedule
If SPI 1, then project is behind schedule
Cost Variance
If CPI= 1, then project is on budget.

If CPI 1, then project is below budget (Cost Saving)
If CPI 1, then project is above budget (Cost Overrun)
Forecasting
Estimate To Complete (ETC)
Estimate At Completion (EAC)
Estimate To Complete (ETC)

When current variances are seen as atypical and similar
changes will not continue to happen in the future
ETC= BAC-EV
When current variances are seen as typical of future
variances
ETC= (BAC-EV)/CPI
When past performance show that the original estimating
assumptions were fundamentally flawed, estimates to

completion has to be re-calculated
ETC= BTC
Estimate At Completion (EAC)

When past performance show that the original estimating
assumptions were fundamentally flawed:
EAC = AC + BTC
When current variances are seen as atypical and similar
changes will not continue to happen in the future:
EAC = AC + (BAC EV)

When current variances are seen as typical of future
variances
EAC = AC + [(BAC EV)/CPI]
Variance At Completion (VAC)
How much over or under budget do we expect

to be at the end of the project
VAC = Budget at Completion - Estimate at Completion
= BAC - EAC
Exercises 13 & 14
Earned Value Calculations
To-Complete Performance Index

(TCPI)
This helps in determining the efficiency that must be
achieved on the remaining work in order for the project to

meet a specified end point such as Budget at Completion
(BAC) or Estimate at completion (EAC)
TCPI= Work Remaining/ Funds Remaining

TCPI based on the BAC:
TCPI = (BAC-EV) / (BAC-AC)

TCPI based on the EAC:
TCPI = (BAC-EV) / (EAC-AC)
Control Quality
The process of monitoring and recording results of executing
the quality activities to assess performance and recommend

necessary changes.
Quality control activities identify causes of poor process or
product quality and recommend and/or take action to

eliminate them.
Quality Control-Related Terms

Prevention (keeping errors out of the process) and inspection
(keeping errors out of the hands of the customer).

Attribute sampling (the result either conforms or not) versus
variable sampling (the result is rated on a continuous scale

that measure the degree of conformity).
Special causes (unusual events) and common causes (normal
process variation).
Tolerances (specified range of acceptable results) and control
limits (range of process in control).
Control Quality
Plan
Quality
Management
Perform
Quality
Assurance
Control
Quality
Control Quality
Project
Management Plan
Quality Metrics
Quality Control
Measurements
Seven basic Quality
Tools
Quality Checklists
Statistical
sampling
Work Performance
data
Inspection
Approved Change
Requests
Approved Change
Requests Review
Validated Changes
Validated
Deliverables
Work Performance
Information
Organizational
Process Assets
Updates
Deliverables
Change Requests
Project documents
Project Management
Plan Updates
Organizational
Process Assets
Project Document
Updates
Control Communications
Monitoring & controlling communications throughout the entire
project lifecycle to ensure the information needs of the project

stakeholders are met.
It ensures an optimal information flow among all communication
participants, at any moment of time.
Plan Communications
Management
Plan
Communications
Management
Manage
Communications
Control
Communications
Control Communications
Project
Management
Plan
Work
Performance
Data
Project
Communications
Issue Log
Organizational
Process Assets
Information
Management
System
Expert Judgment
Meetings
Work
Performance
Information
Organizational
Process Assets
Updates
Change Requests
Project
Management
Plan Update
Project
Document
Updates
Control Risks
The process of implementing risk response plans, tracking
identified risks, monitoring residual risks, identifying new risks,

and evaluating risk process effectiveness throughout the project.
Control Risks
It determines if:
Project assumptions are still valid.
Analysis shows an assessed risk has change or can be
retired.
Risk Management policies and procedures are being
followed.
Contingency reserves of cost or schedule should be
modified in alignment with the current risk assessment.
Control Risks
Plan Risk
Management
Identify
Risks
Plan Risk
Responses
Perform
Qualitative
Risk
Analysis
Perform
Quantitative
Risk
Analysis
Control Risks
Control Risks
Risk Register
Project
Management
Plan
Work
Performance
Data
Performance
Reports
Risk
Reassessment
Risk Audits
Variance & Trend
Analysis
Work
Performance
Information
Organizational
Process Assets
Updates
Change Requests
Technical
Performance
Measurement
Project
Management Plan
updates
Reserve Analysis
Project Document
Updates
Meetings
Risk Reassessment
Should be scheduled regularly.
Should be an agenda item at project team status meetings.
Risk Register Updates
Outcomes of risk reassessments.

Actual outcomes of risks and risk responses.
Control Procurements
The process of managing procurement relationships,
monitoring contract performance, and making changes and

corrections as needed
Control ProcurementsHighlights
Reviewing and documenting how a seller is performing or has
performed to establish required corrective actions and provide

a basis for future relationships with the seller
Managing contract related changes
When appropriate managing the contractual relationship with
the outside buyer of the project.
Can include managing interfaces across providers.
For some organizations, might be separate from project
organization. In this case a contract administrator on the
project team reports to a different department.
Plan
Procurements
Management
Conduct
procurements
Control
Procurements
Close
Procurements
Project
Management
Plan
Contract change
control system
Procurement
Documents
Procurement
performance
reviews
Agreements
Work
Performance
Reports
Approved
Change Requests
Work
Performance
Data
Inspections and
audits
Performance
reporting
Payment systems
Claims
administration
Records
management
system
Work
Performance
Information
Organizational
Process Assets
Updates
Change
Requests
Project
Management
Plan Updates
Project
Documents
Updates
Procurement Performance
Review
A structured review of sellers progress to deliver project
scope and quality within cost and on schedule, as compared

to contract.
It can include a review of seller-prepared documentation and
buyer inspections, as well as quality audits conducted during
sellers execution of the work.
Objectives are:
Identify performance success or failure.
Identify progress compared to contract statement of
work.
Identify contract non-compliance to determine sellers
ability or inability to deliver.
Payment Systems
Processed by the Accounts Payable system of the buyer
After certification of satisfactory work by an authorized
person on the project team.

All payments are made in accordance with contract terms.
Claims Administration
The process of documenting, processing, managing, and
monitoring claims throughout the contract lifecycle, in

accordance with terms of contract.
Contested changes and potential constructive changes are
those requested changes where the buyer and seller cannot
reach an agreement on compensation for the change.
If parties involved cannot resolve claims, it maybe handled in
accordance with Alternative Dispute Resolution (ADR) or
through negotiation.
Records Management System

Used by project manager to manage contract documents and
records.
It consists of a specific set of processes, related control
functions, and automation tools that are consolidated and
combined into a whole, as part of the project management
information system.
The system contains a retrievable archive of contract
documents and correspondence.
Control Stakeholder Engagement

The process of monitoring overall project stakeholders
relationship and adjusting strategies and plans for engaging

stakeholders.
It maintains and increases the efficiency and effectiveness of
stakeholder engagement activities as the project evolves and its

environment changes.

Identify
Stakeholders
Plan
Stakeholder
Management
Manage
Stakeholder
Engagement
Control
Stakeholder
Engagement
Project
Management Plan
Information
Management
System
Issue Log
Expert Judgment
Work
Performance Data
Meetings
Project
Documents
Work
Performance
Information
Change
Requests
Organizational
Process Assets
Updates
Project
Management
Plan Updates
Project
Document
Updates
Quiz 8
PMBOK Reading
Chapter 3
Section 3.6
Chapter 4
Section 4.4, 4.5
Chapter 5
Section 5.5, 5.6

Chapter 6
Section 6.7
Chapter 7
Section 7.4
Chapter 8
Section 8.3
Chapter 10
Sections 10.3
Chapter 11
Section 11.6
Chapter 12
Section 12.3
Chapter 13
Section 13.4
PART XVI
CLOSING
Closing Processes
Integration
Procurement
Close Project
Or Phase
Close
Procurements
Close Project or Phase

The process of finalizing all activities across all of the
Project Management Process Groups to formally complete

the project or phase.
When closing a project, project manager reviews all prior
information from the previous phase closure to ensure all
project work is completed and that the project has met its
objectives.
Formally establishes that the project or project phase is
finished.
Also establishes the procedures to investigate and
document the reasons for actions taken if a project is
terminated before completion
Integration
Procurement
Close Project
Or Phase
Close
Procurements

Completing the project scope doesnt mean that the project is
done.
What remains is:
Collecting & finalizing paperwork.
Verifying that project product is acceptable.
Transferring completed project product to those who will
use it & return resources back.
Activities taken to Close

a Project or Phase
Confirm all requirements are met.
Verify and document that project or phase meet exit
criteria.
Obtain formal (legal) sign-off from customer.
Prepare final payments & cost reports.
Update records.
Finish lessons learned.
Activities taken to Close a Project

or Phase (Contd)
Update procedures and templates based on lessons
learned.
Analyze and document project success and effectiveness.
Prepare final report.
Index & archive records.
Measure customer satisfaction.
Hand off completed project deliverables to user(s)
Release resources
Final Report
The final report is a report that summarizes what happened
in the project .
It is prepared for all projects , irrespective of weather the
project has been completed successfully or not.
Includes:
Overview of the project.
Evaluation of the team's performance.

List of issues encountered.
A summary of what went right and what wrong.
Deviations from the original plan and budget.
Summary of major accomplishments.

Recommendations for future projects.
Is made available to the senior management,
stakeholders, and other project managers.
How to Create a Final Report

Make a summary of how the project was carried out.
Evaluate the performance of the project team.

Explain the issues encountered.
Provide recommendations for future projects.
Example: A project to create a website for a client.
The final report includes:
An overview of the project's initial objectives and
specification.
Key changes to the objectives.
Recommendations for similar projects.
What Else?
---------
Why?

Project
management
plan
Accepted
deliverables
Organizational
process assets
Expert
Judgment
Analytical
Techniques
Meetings
Final product,
service, or
result
Organizational
process assets
updates
Close procurements
The process of completing each project procurement.
It supports the Close Project or Phase process, since it
involves verification that all work and deliverables were

acceptable.
Close procurements
For all procurements and contracts.
Happens when:
A contract ends.
A contract is terminated before work completion.

All contracts must be closed, no matter what.
Closing a contract provides a formal written verification that
work and deliverables were accepted.
Close Procurement Vs. Close a

Project or Phase
Closing procurement occurs first.
Closing a project or phase maybe done at the end of project
or phase, while closing a procurement happens at the end of

the contract.
Closing contracts require more record keeping due to legal
implications.
Integration
Procurement
Close Project
Or Phase
Close
Procurements
Contract Terminations
Contracts are terminated usually by buyers due to:
Cause (seller doesnt perform)

Convenience (work no more needed)
Contracts should have provisions for stopping
work before completion.

Rights and responsibilities of parties in early
termination are contained in a termination clause
in the contract
Close Procurements
Project
management
plan
Procurement
Audits.
Procurement
Document
Procurement
Negotiations
Records
Management
System
Closed
Procurements
Organizational
process assets
updates
Activities taken to Close a

Procurement
Verify Product.
Close financial records.
Update records.
Prepare final contract performance report.
Close contract file.
Perform procurement audit.
Finalize lessons learned.

Final acceptance and closure.
Contents of Contract File

Contract.
Change requests.
Seller performance reports.
Financial information.
Inspection (audit) results.
Lessons learned.
PMBOK Reading
Chapter 4
Section 4.6
Chapter 12
Section 12.4
PART XVII
PROFESSIONAL RESPONSIBILITY
CODE OF ETHICS AND PROFESSIONAL CONDUCT
Code of Ethics and Professional

Conduct
Describes the expectations that we have of ourselves and our
fellow practitioners in the global project management

community
It articulates the ideals to which we aspire as well as the
behaviors that are mandatory in our professional and

volunteer roles
Purpose & Target Group

Purpose
Instil confidence in the project management
profession
Help individuals become better practitioners
Target Group
All PMI members
All PMI credential holders
Individuals in the process of application for PMI
credentials
PMI volunteers
Structure
4 Values
Responsibility
Respect
Fairness
Honesty
Each value has:
Mandatory Conduct
Aspirational Conduct
Mandatory Vs. Aspirational

Conduct
Mandatory
Establish firm requirements, and in some cases, limit or
prohibit practitioner behavior.

Aspirational
Describe the conduct that we strive to uphold as
practitioners
Although adherence to the aspirational standards is not
easily measured, conducting ourselves in accordance with it
is not optional
The conduct covered under the aspirational standards and
conduct covered under the mandatory standards are not

mutually exclusive
Responsibility
Definition
Our duty to take ownership for the decisions we make or

fail to make, the actions we take or fail to take, and the
consequences that result.
Responsibility-Aspirational
Standards
We make decisions and take actions based on the best interests
of society, public safety, and the environment

We accept only those assignments that are consistent with our
background, experience, skills, and qualifications
We fulfill the commitments that we undertake we do what we
say we will do.
When we make errors or omissions, we take ownership and
make corrections promptly.
When we discover errors or omissions caused by others, we
communicate them to the appropriate body as soon they are
discovered.
We protect proprietary or confidential information that has
been entrusted to us
Responsibility Mandatory
Responsibility
We report unethical or illegal conduct to appropriate
management and, if necessary, to those affected by the

conduct.
We report unethical or illegal conduct to appropriate
management and, if necessary, to those affected by the
conduct.
We bring violations of this Code to the attention of the
appropriate body for resolution
We only file ethics complaints when they are substantiated
by facts.
We pursue disciplinary action against an individual who
retaliates against a person raising ethics concerns.
Respect
Description
Our duty to show a high regard for ourselves,

others, and the resources entrusted to us
Respect- Aspiriational Standard

We inform ourselves about the norms and customs of
others and avoid engaging in behaviors they might

consider disrespectful.
We listen to others points of view, seeking to understand
them.
We approach directly those persons with whom we have a
conflict or disagreement.
We conduct ourselves in a professional manner, even
when it is not reciprocated.
Respect Mandatory Standard

We negotiate in good faith.
We do not exercise the power of our expertise or position to
influence the decisions or actions of others in order to benefit

personally at their expense.
We do not act in an abusive manner toward others.
We respect the property rights of others.
Fairness
Description
Our duty to make decisions and act impartially

and objectively. Our conduct must be free from
competing self interest, prejudice, and favoritism.
Fairness- Aspirational
Responsibility
We demonstrate transparency in our decision-making
process.
We constantly reexamine our impartiality and objectivity,
taking corrective action as appropriate.

We provide equal access to information to those who are
authorized to have that information.

We make opportunities equally available to qualified
candidates
Fairness Mandatory
Responsibility
We proactively and fully disclose any real or potential
conflicts of interest to the appropriate stakeholders.

When we realize that we have a real or potential conflict of
interest, we refrain from engaging in the decision-making
process or otherwise attempting to influence outcomes
We do not hire or fire, reward or punish, or award or deny
contracts based on personal considerations, including but not
limited to, favoritism, nepotism, or bribery.
We do not discriminate against others based on, but not
limited to, gender, race, age, religion, disability, nationality, or
sexual orientation.
Honesty
Description
Our duty to understand the truth and act in a truthful
manner both in our communications and in our conduct.
Honesty Aspirational
Responsibility
We earnestly seek to understand the truth.
We are truthful in our communications and in our
conduct.
We provide accurate information in a timely manner.
We make commitments and promises, implied or
explicit, in good faith.

We strive to create an environment in which others feel
safe to tell the truth.
Honesty Mandatory Standard

We do not engage in or condone behaviour that is designed to
deceive others, including but not limited to:

Making misleading or false statements
Stating half-truths,
Providing information out of context, or
withholding information that, if known, would render our
statements as misleading or incomplete.
We do not engage in dishonest behaviour with the intention of
personal gain or at the expense of another
At Orange
We are passionate, confident and focused

on the future. We push the boundaries.
We make a difference to peoples lives.
We are direct and

easy to
understand.
We keep things
simple. We focus
only on whats
important.
We take the time to listen. We treat

everyone as individuals. We enjoy
working and succeeding together
Orange Values
We are brave. We dare to do

things differently, to find a better
way. We give colour to all that we
do.
We are open. We say what we do and

we do what we say. We are happy to
share
At Orange
Confidentiality
We use code names for TTM projects, we communicate and
discuss projects using code names

We keep our desks clan, we dont keep sensitive TTM
information on our desks
We dont discuss TTM projects in open areas, we meet and
discuss TTM projects in isolated areas
We dont send sensitive TTM information such as
deliverables and presentations by email, we use instantis as a
communication tool
We use shredders to get rid from sensitive TTM documents
We determine who should review what on instantis, we
mark sensitive information as confidential on instantis and
we give access to selected team members
THANK YOU
PROJECT MANAGEMENT
PROFESSIONAL TRAINING AND
CERTIFICATION PROGRAM (PMP)
MOHAMMAD AMAWI-PMP,PMOC
GETTING STARTED
The Certificates
About the exam

Applying to take the exam
Preparing for the exam
How does the exam look like
Taking the exam
Take a sample exam
THE CERTIFICATES
There are a number of project management certificates, taking
this course qualifies you to take one of the following certificates:

Project Management Professional PMP
Certified Associate in Project Management CAPM
THE CERTIFICATES
Certificate Education
CAPM
PMP
Bachelor
Degree
Bachelor
Degree
PM
PM
Questions
Training Experience
25 hours
35 hours
Time of
Exam
Code of
Conduct
Yes
None
150
3 hours
4500 hour
(3 years)
200
4 hours
Yes
ABOUT THE EXAM

PMI Process
# of Questions
% of Questions
Initiation
26
13%
Planning
48
24%
Execution
60
30%
Control
50
25%
Closing
16
8%
ABOUT THE EXAMS
PMI exams require certain procedures to qualify for taking the ex
eligibility
Eligibility letters can be acquired online.
The exam measures the following:
Project Management knowledge
Practical experience
Common sense
Ethics & principles
Applying for the Exam

Apply for the Eligibility Online
Visit PMIs website
https://certification.pmi.org/
Log in using username and password
You have 3 months to complete the process
Fill all the required information:
Address
Education
Experience
Details of completed projects
Contact Information for Managers and Supervisors
Project management education
Applying for The Exam

In the experience section: fill in all the information about your
project management related experience.

Project Title
Role in project
Primary Industry
Time spent on the project
Summary of tasks
Only Project-related work counts, operational work is not
considered part of the required experience.
Applying for The Exam

Contact Prometric Center to schedule for the exam.
Specify a time, date, and exam center
Make sure you know where the exam center is ahead
of time, visit before the day of the exam
Application Rules
A new and improved online application.
Collection of project contact information.

Instant audit notification.
One-year eligibility period.
Limit on the number of times candidates will be permitted to
test. Candidates will have three opportunities to take and

pass the PMP examination within their one-year eligibility
period. If candidates do not succeed on the third attempt,
candidates will have to wait one year from their third
unsuccessful attempt before being permitted to test again.
Few Tips
The exam measures the capability of using knowledge and
experience in real life, therefore most of the questions are

situational
Only few questions require that you MEMORIZE the inputs,
outputs, tools and techniques.
Dont waste your time trying to memorize inputs, outputs, tools
and techniques. Itll do you no good.
Time of the exam is enough, no one ever complained about
time.
You might use the same data for more than one question
Few Tips
Expect 18-22 formula based questions (CPM, EVM and
others)
The length of the question does not indicate that its a
difficult one. And the length of the answer does not
necessarily indicate that its the right one.
Many questions have more than one right answer, you have
to choose the BEST.
A right statement does not make it the right answer to the
question.
The questions jump from one topic to another without a
specific sequence.
TYPES OF QUESTIONS
Situational questions
You received Notification that a major item you are purchasing
for a project will be delayed, what is the BEST Thing to do?

Ignore it, it will go away
Notify your boss
Let the customer know about it and talk over options
Meet with the team to identify alternatives.
TYPES OF QUESTIONS
Two or more right answers
Extraneous information
Questions using made up terms
Where understanding is important
New approach to known topic
Questions with more than one item in each choice

Excessively wordy questions
Extraneous information
Your company is a major manufacturer of doors, and has
received numerous awards for quality. As the head of

manufacturing department, you have 230 people reporting
to you on 23 different projects. Experience shows that each
time you double the production of doors, unit costs
decrease by 10 percent. Based on this, the company
determines that production of 3,000 doors costs $ 21,000.
This case illustrates:
Learning cycle
Law of diminishing return
80/20 rule
Parametric estimating
Questions Using Made Up Terms

A form of project organization where power is evenly
shared between the functional manager and the project

manager is called:
A tight matrix
A weak matrix
A balanced matrix
A strong matrix
Where Understanding is
Important
The process of decomposing deliverables into smaller,
more manageable components is complete when:

Project justification has been established
Change requests have occurred
Cost and duration estimates can be developed for
each work element at this detail
Each work element can be found in the WBS
Dictionary
New approach to know topic

In a matrix organization, information dissemination is MOST
likely to be effective when:

Information flows both horizontally and vertically
The communications flows are kept simple
There is an inherent logic in the type of matrix shown
Project managers and functional managers socialize
Questions with more than one

item in each choice
The seller on the project has presented the project manager with a formal
notification that the seller has been damaged by the buyers activities. The seller
claims that the buyers slow response to sending the seller approvals has
delayed the project, and has caused the seller unexpected expense. The FIRST
things the project manager should do are:
Collect all relevant data, send the data to the company lawyer, and consult
with him about legal actions
Review the contract for specific agreed-upon terms that relate to the issue,
see if there is a clear response, and consult with the lawyer if needed
Review the statement of work for requirements, send a receipt of claim
response, and meet to resolve the issue without resorting to legal actions if
possible
Hold a meeting with the team to review why the acceptances have been
late, make a list of the specific reasons, and resolve those reasons
STUDYING FOR THE EXAM

Reading the material
Reviewing PMBOK - Project Management Body of
Knowledge
Processes in each knowledge area
Inputs, tools & techniques, outputs of processes
Review code of professional conduct
Solve a lot of practice questions
STUDYING FOR THE EXAM

Rule of Threes
Test-taking mode
Step-by-step
Take a comprehensive exam

Go back to the areas you scored less in, and
study them in concentration
Review other areas
Review answers
Retake the entire exam
BEFORE THE EXAM

Review material
Eat a good meal, see some TV, go out with friends
Get a good night sleep (dont study material, dont stay up all
night)
Take the day of the exam off work (or at least the morning)
Eat a good meal, drink some coffee, juice.
THE DAY OF THE EXAM

Schedule the exam between 9-10
Wear comfortable cloths, shoes
Leave the house at least 45 minutes before the exam starts
Take two Identification cards and the eligibility letter
No calculator, no cell phone, no review notes, no smoking

Take a snack (they might allow it)
DURING THE EXAM

Watch the time regularly
Skip questions you cant answer instantly

Use Mark function
At the middle mark of the exam, stand up, and do some
exercise
Use your time wisely
Control your frustration
REFERENCES
1- My Life is Failure. By: Jim Johnson
2- The Alpha Project Manager. By: Andy Crowe
3- The Lazy Project Manager. By: Peter Taylor
4- How to win friends and influence people. By: Dale
Carnegie
5- Critical Chain. By: Elyahu Goldratt
6- The One Minute Manager. By: Kim Blanchard.
7- The Goal. By: Elyahu Goldratt.
8- Who moved my cheese. By: Spencer Johnson.
9- Emotional Intelligence. By: Daniel Goleman.
10- Leading Change. By: John Kotter

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Project Management Professional

(PMP) Training & Certification

How This Training is Delivered

Demonstrate to employers, clients and colleagues that

project managers possess project management

The most recognized credential in project management

Certified Associate in Project

Contributes to project team

Leads and directs project

Candidate holds a baccalaureate

25 contact hours of Project

4,500 hours of Project

150 Questions, 3 hours

200 questions, 4 hours

Passing Score: 107

PMP Exam Structure

1- Theoretical Knowledge (PMBOK)

4- Ethics & professional responsibility

Project Management Body

generally recognized as a good practice

and practice described are applicable to most

agreement that the application of these skills,

A Temporary endeavor undertaken to create a

A TTM project is a temporary

Need for project no longer exists

uniqueness of the project

different, in some distinguishing way from all other

obtained and estimates are more accurate.

Projects Vs. Operation

One of a kind, temporary

No clear beginning or ending

Clear beginning and ending

Same output created each

Everyone in work group

Requires multi-disciplined team

What is Project Management?

knowledge, skills, tools and techniques to project

What Project Management is Not?

Managing or buying a software.

Preparing a schedule or a bar chart

For Engineers ONLY

Project Management Context

Programs & Program Management

coordinated way to obtain benefits and control that

Program Management is the centralized coordinated

management of a program to achieve the programs

projects and other that are grouped together to facilitate

management of one or more portfolios in order to

reviewed to prioritize resource allocation, and that the

Project Management Offices

An organizational unit to centralize and coordinate

The PMO can be understood as :

The organizational entity, staffed with skilled professional

Can have a wide range of authorities and responsibilities

Takes one of 3 roles:

1- Providing policies, methodologies and templates

2- Provide support and guidance

3- Provide managers for projects, and coordinate managing

There are Three types of PMOs that may exist in an organization:

The most common type of PMO

Its purpose is to empower project managers and teams to

It doesn't control or direct projects, instead it focuses on

Offers controlling services (such as project reviews, audits,

Can influence project delivery

Project Management Professional (PMP) Training &NEW

Project Management Professional (PMP) Training &NEW