PROJECT MANAGEMENT

Course Content
• Introduction : Project , Program, and portfolio , Operation management , Product
life cycle, Project life cycle, project management life cycle. 10-Knowledge areas.
• Role of project manager and PMO ( 2HRS)
• 10 – project Knowledge areas with their associated processes
•
• 2. Project Integration Management : Processes : Dev project charter, Develop
project management plan, Direct & manage project work, Monitor control project
, Perform integrated change control , Close project / phase. (2HRS)

• 3. Project scope management : Processes : Plan scope management, Collect

requirements, Define scope, Create WBS, Validate Scope, Control scope
(2HRS)
• 4. Project Schedule management : Processes : Plan schedule management, Define
activities, Sequence activities, Estimate activity durations, Develop schedule,
Control schedule
(3HRS)
• 5. Project cost management : Processes : Plan cost management, Estimate cost,
Determine budget, and Control costs.
(1HR)
 Course Content
• 6. Project quality management: Processes : Plan quality
management, Manage quality and Control quality
(2HRS)

• 7. Project resource management : Processes : Plan resource

management, Estimate activity resources, Acquire resources,
Develop team, Manage team and Control resources (2HRS)

• 8. Project communication management : Processes : Plan

communication management plan, Manage communications
and Monitor communications ( 1Hr)
 Course Content
• 9.Project risk management : Processes : Plan risk management,
Identify risks, Perform qualitative risk analysis, Perform
quantitative risk analysis , Plan risk responses, Implement risk
responses and Monitor risks.
(3HRS)

• 10. Project Procurement management : Processes : Plan

procurement management , Conduct procurement, Control
procurements.
• ( 2HRS)
• 11. Project stake holder management : Processes : Identify stake
holders, Plan stake holder management, Manage stake holder
engagement

• Ref Book:- PMBOK –Edition-6

 PROJECT MANAGEMENT.

• By the time we build the airports, they have

become obsolete.
• By the time we build the roads, they have
already become over crowded.
• - Mr Ratan Tata.
 PROJECT MANAGEMENT
• Project Management Institute, USA (PMI)
was founded in 1969 to provide a means for
project managers to associate, share
information, and discuss common problems.

• Making project management indispensable

for business results.
– www. pmi.org.
 PMBOK GUIDE

• Project body of knowledge (PMBOK), is

the sum of knowledge within the
profession of project management.
 PROJECT MANAGEMENT

• A project is a temporary endeavor undertaken to

create a unique product, service or result.
 PROJECT MANAGEMENT

• Project management is application of

knowledge, skills, tools & techniques to
project activities to meet project
requirements.
 PROJECT MANAGEMENT

• Project management is managerial process –

Initiation- Planning- Execution – Monitoring &
Control-Close.
 Project management
• Examples of project include, but are not limited
to:

– Developing a new product or service.

– Effecting a change in structure, staffing, or style of an
organization.
– Designing a new transportation vehicle.
– Developing or acquiring a new or modified
information system.
– Constructing a building or facility.
– Building a water supply system for a community.
 Project management
• Running a campaign for a political office.
• Implementing a new business procedure or process.
• Responding to contract solicitation.
• Conducting a wedding ceremony.
• Project to facilitate payments of tax through internet.
• Service to collect garbage from homes.
• Presenting a budget papers to the board.
 Organizational Project
Management (OPM)
Projects: temporary endeavors undertaken
to create a unique product, service or
result
Program: related projects grouped and
managed to optimize benefits, control
and outcomes, not available from
managing individually.
Portfolio: projects and programs
grouped for effective management and
focused on meeting specific strategic
objectives
Implementations should fit the
Organizational Environment: the
structure, policies, processes and culture
of the organization.
“ Right” combination of right projects,
done right.
13
 PROJECT MANAGEMENT
• The projects or programs of the portfolio may not
necessarily be interdependent, or directly related.
• For ex:
• An infrastructure company that has the strategic objective of
“ maximizing the return on investment” may put together a
portfolio that includes a mix of projects in oil and gas,
power, roads, rail, and airports.

• From this mix, the firm may choose to manage related

projects as one program. All of the power projects may be
grouped together as a power program. Similarly , all of the
water projects may be grouped together as water program.
Projects –program-portfolio
 Characteristics of project objectives
• S :Specific
• M: Measurable
• A: Ambitious / assignable
• R: Realistic
• T: Time bound

• Project objectives:
– Schedule objective, Cost objective, and Quality
objective
Two Major Risks come to fore
while talking about Projects

Time Slippage / Delay

Cost Overrun
In your opinion
why do projects
often fail?
 Unclear requirements
 Poor planning
 Lack of clear, realistic project
objectives
 Misunderstanding of team roles,
responsibilities, authority, and power
 Failure to communicate and act as a
project team
 Lack of buy-in from team members
 Project Management Methodology
 Poor communication
Why do we
undertake
Projects?
NEED
 Projects are undertaken to
successfully implement organizational
strategies under uncertainties and
successfully meet the
expectations as visualized

NEED
 Projects and strategic planning
• Projects are often utilized as a
means of achieving an
organization’s strategic plan:
– Market demand.
– Strategic opportunity/business
need.
– Customer request.
– Technological advance.
– Legal requirement.
– social
 ORGANIZATIONS
PERFORM WORK
to achieve a set of
objectives

Operation work Project work

 What are the basic characteristics of
operation & project work

Operation work is: Project work is:

Ongoing temporary
endeavor
and
undertaken to create
Repetitive a

unique product,
service or result
 What is common to both
operation and project work?
 Performed by people

 Constrained by limited
resources

 Planned, executed &

controlled
Temporary endeavor means project is
having:
 Definite beginning
 Definite end, and
 Clear defined Project
Objectives
Or when it becomes clear that the
project objectives will or cannot
be met, or the need for the
project is no longer exists and the
Milestone is an agreed “end or starting”
project is terminated
of a
specific event or deliverable and has a
duration ZERO
Unique Product, Service or Result means:

Projects creates unique

deliverables, i.e., products,
services, or results that has not
been done exactly the same way
before and which is, therefore,
unique and distinct
Progressive Elaboration

General

Lev
el
of
det
ail
Requirements High-level design
Detailed
Progressive elaboration means developing in steps,
and continuing steadily by increments
 Triple constraints influence projects

Project Quality balancing

is affected by Q triple constraints

If any one SCOPE

of the constraints limits project team to define
‘triple constraint’ factors is affected, at least
scope and manage scope
one other factor is likely to limits
TIME constraints be effected, e.g.,
team to determine &
•Deliver high quality
manage product, service or result within scope, time and budget
time lines
•If scope is increased, it has a likely effect
COST constraints limitson time,toand
team cost as well
estimate “life cycle
•If time or scope is increased,
cost” costcost
i.e., project is most likely
plus to be effected
operating and
implementation costs
Triple constraints influence projects

How project objectives are related?

C = f (Q, T, S)
COST
is a function of
QUALITY, TIME, &
SCOPE
 PROJECT LIFE CYCLE

The Internal-Business-
Process
Business Need to upgrade Need
Operation to
PLAN need Discard

Customer Customer
NEED Project Life Cycle Phases NEED
Identified Satisfied
 Phase to phase relationships.
• Sequential relationship:

– A phase can only start once the previous phase is

complete.
– Step by step approach reduces uncertainty, but may
eliminate options for reducing the schedule.

• Over lapping relationship:

– A phase can start, prior to the completion of the

previous one. Fast tracking. Reduces the schedule,
quality may be the victim.
 Phase to phase relationships.
• Iterative relationship.
– Is used where one phase is planned at any given
point of time and the planning for the next is
carried out as the work progresses on the current
phase and deliverables.

– This is useful in largely undefined, uncertain , or

rapidly changing environment, such as research.
 Project Life Cycle

5. Requirements
“Project-life-cycle” deliverables influence
project
Influence of Stakeholders,
Opportunity to add Value,
and
High Uncertainty of success

Cost to make change, and

Low Amount of stake
Project Life Cycle (Time)
Project Cost and staffing levels
 PMBOK Guide Key components
COMPONENT BRIEF DESCRIPTION
1.Project life cycle Series of phases that a project passes through from start to end

2.Project phase A collection of logically related project activities that culminates in the completion of one
or more deliverables
3.Phase gates A review at the end of a phase in which a decision is made to continue to the next phase
, to continue with modification, or to end a program or a project.

4.management A systematic series of activities directed toward causing an end result where one or more
processes inputs will be acted upon to create one or more out puts

5.Project Logical grouping of inputs, tools & techniques, and out puts
management process Initiation, planning, executing, M& C, and close ( process groups )
groups Process groups are not project phases. Each phase has the 5- process groups.

6.Project An identified area of project management defined by its knowledge requirements and
management described in terms of processes, practices, tools & techniques.
knowledge areas

37
 PMBOK Guide Key components

• Process groups are not project phases.

• Each phase of a project contains all the five
process groups
• Total of phases determines project life cycle
PMBOK –Guide components
 Project life cycles
• Project life cycle
Is series of phases that a project passes through from its start
to its completion
1. Predictive life cycle:
A more traditional approach, where the bulk of planning occurring upfront ,
then executing in a single pass, a sequential process ( Water fall model).
Changes are managed through integrated change control system.
2. Iterative life cycle:
An approach that allows feed back for the unfinished work , to improve and
modify that work
3. Incremental life cycle
An approach that provides finished deliverables that the customer may be able
to use immediately
4. Adaptive/ agile life cycle
An approach that is both iterative and incremental to refine work items and
deliver frequently. Change driven.
5. Hybrid life cycle
Is a combination of predictive and adaptive life . Those elements
of the project , have fixed requirements follow predictive life cycle,
and those elements that are still evolving follow adaptive
development life cycle.
40
PROJECT LIFE CYCLE
 Tailoring
• The appropriate project management processes, inputs, tools and techniques, outputs, and
life cycle phases should be selected to manage a project.

• This selection activity is known as tailoring project management to the project. – a

methodology.

• A methodology is a system of practices, techniques, procedures, and the rules used by

those who work in a discipline.
• This definition makes it clear that PMBOK Guide is not a methodology.

• PMBOK Guide is recommended references, for tailoring.

• Tailoring is necessary because each project is unique, not every process , tools and
technique, inputs and out identified, in PMBOK-Guide is required for every project.

• The tailoring should address the competing constraints of scope, schedule, cost, resources,
quality and risk of the project.

• The importance of each constraint is different for each project.

42
 Project - Business Case
• Business need:
– Determination of what is prompting the nee for action.
– Identification of scope
– Identification of stakeholders affected
• Analysis of situation:
– Identification of organizational strategies, goals, and objectives
– Identification of root causes of the problem or main contributors of
opportunities
• Recommendation
– A statement of recommended option to pursue in the project
• Items to include ;
• Constraints, assumptions, risks, etc
• Success measures
• Milestones, dependencies, Roles and responsibilities
• Evaluation:
– Statement describing the plan for measuring benefits the project will
deliver
43
 Project Benefit Management Plan
 Is the document that describes how the document that describes
how and when the benefits of the project will be delivered , and
describes the mechanisms that should be in place to measure
those benefits.

– Target benefits: ( expected tangible and intangible value to be gained

by the implementation of the project )

– Strategic alignment :-(How well the project benefits align the

business strategies of the organization )

– Benefit owner ( accountable person to monitor , record, and report

realized benefits through out the time frame established in the plan )

– Metrics : ( Measures to be used to show benefits realized)

– Assumptions ( factors expected to be in place or in evidence )

– Risks ( Risks for the realization of the benefits )

44
 Project Management Knowledge Areas
Project Integration
Management
Project scope management
Project Time management
Project cost management
Project quality management
Project resource management
Project communication management
Project risk management
Project procurement management
Project stakeholder management
Project Integration management
Objective
The final deliverable – how much effort?
To complete the approved scope in time
To complete the project within budget
Deliverable to be confirming to the quality standard.
Estimate resources needed and management and control of
resources to complete the project
Plan , manage and control communication requirements of
project stake holders.
Proactively managing project risks, plan, prioritize , quantification
, develop risk response plan, implement , and control risks.
Managing materials, supplies, talent, equipments ,needed for
the project completion. Contract management
Ensuring all the stake holders of the project are on the same
page.
Integrating all the above knowledge areas to have a
comprehensive project management plan 45
 Processes – Process group wise

No of processes in Initiation = 2
Planning = 24
executing= 10
Monitor & control = 12
Close = 1
Total no of processes in PMBOK –edition 6 = 49

Product processes are not considered here, though

they intricately involved the pm processes
LINKS IN PROCESS GROUPS
 Enterprise environmental factors.
• Refer to both internal and external environmental factors
that surround or influence a project’s success.

• May enhance or constrain the project management options

and may have a positive or negative influence on the out
come.

• They are considered as inputs to most of the planning

processes.
 Enterprise environmental factors.

• Organizational culture, structure, and processes;

• Government or industry standards;
• Infrastructure (e. g ,. Existing facilities and capital equipment);
• Existing human resources;
• Personnel administration;
• Company work authorization systems;
• Market place conditions;
• Stakeholder tolerances;
• Political climate;
• Organization’s established communications channels;
• Commercial data bases
• Project management information systems;
 Organizational process assets:

• Include any or all process related assets, from any or all of

the organizations involved in the project that can be used to
influence the project’s success:

• Include formal and informal plans, policies, procedures, and

guide lines and organization’s knowledge bases such as
lessons learned and historical information.
 PROJECT SELECTION METHODS
• Mathematical methods:
– Constrained optimization methods – linear, dynamic,
integer, non linear, and/or multi objective programming.

• Benefit measuring methods:

– Benefit cost ratio: is the ratio of benefits to costs.

– For example: if you expect a construction project to cost
$10 million and you expect to be able to sell that
completed building for $15 million, then your BCR is 1.5
 SCORING MODEL
SCORING MODEL:

criteria weight proj-A proj-B proj-C

profit potential 5 5 5 3
marketability 3 4 3 4

ease to produce 1 4 3 2

weighted score 41 37 29

project -A is the obvious choice.

 NET PRESENT VALUE
• With NPV, you bring the value of the future
money into today’s dollars.
• 12% is cost of capital.

• Project A:

• Year. inflows. P V
• 1 10,000 8,929
• 2 15,000 11,958
• 3 5,000 3,559
• Total 30,000 24,446

• Less investment 24,000

• NPV 446
 NET PRESENT VALUE
• Project B:
• Year inflows PV
• 1 7,000 6,250
• 2 13,000 10,364
• 3 10,000 7,118
• Total 30,000 23,732
• Less investment 24,000
• NPV <268>
 NET PRESENT VALUE

• Project A has NPV greater than zero and

should be accepted.

• Project B has NPV less than zero and should

be rejected.

• When NPV >0 means that the project will

earn at least or greater than the cost of
capital.
INTERNAL RATE OF RETURN

• IRR is the discount rate when the PV of the

cash inflows equals original investment.

• For the exam, you need three things

concerning IRR:
• IRR is the discount rate when NPV=0
• IRR assumes the cash inflows are reinvested
at the IRR.
• You should choose project with highest IRR
value.
 RETURN ON INVESTMENT
• Is a % that shows what return you make by
making in something.
• Ex: a company invests in a project that costs
$200,000. The benefits of doing the project
save the company $230,000 in the first year
alone.

• ROI = (benefit-cost)/cost=30,000/200,000
• 15%.
• For the exam:
• ROI , bigger is better.
 BEP
• A club is planning a dance party for its
members. The tickets will be sold for $30
each.
• Fixed costs (band & hire hall etc, ) $1500.

• The variable costs (food etc, ) will be $10, for

each ticket sold.

• (x)*(30)= (x)*(10)+1500.
• X=75
• no of tickets to be sold for BEP.
 Project management office
• PMO is management structure that
standardizes the project related governance
processes, and facilitates sharing of
resources, methodologies, tools and
techniques.

• Supportive.
• Controlling.
• Directive.
 Project management

• Project Management Frame work is

completed.
 Organization culture & style influences project
Chief Executive Chief Executive

Functional Functional Functional Functional Functional Functional

manager manager manager manager manager manager

staff staff staff staff staff staff

staff staff staff staff staff staff
staff staff staff staff staff staff

Function organization Weak Matrix Org.

Chief Executive
In balanced
People have
split Functional Functional Functional
the loyalty
focus
matrix,
between
the manager manager manager
towards
project
power isand
their staff staff staff
function
functional
balanced Balanced Matrix Org.
staff staff staff
manager PMs
responsibilities
between & not&
to weak
in
functional
the projects
matrix
mgrs P.Mgr staff staff
 Organization culture & style influences project
Chief Executive Chief Executive

Functional Functional Functional Functional Functional Functional

manager manager manager manager manager manager

staff staff staff staff staff staff

staff staff staff staff staff staff
staff staff staff staff staff staff

Function organization Weak Matrix Org.

Chief Executive
In balanced
People have
split Functional Functional Functional
the loyalty
focus
matrix,
between
the manager manager manager
towards
project
power isand
their staff staff staff
function
functional
balanced Balanced Matrix Org.
staff staff staff
manager PMs
responsibilities
between & not&
to weak
in
functional
the projects
matrix
mgrs P.Mgr staff staff
Composite Organization
Role of project manager
Project manager is responsible to:
1. Accomplish project objectives,
2. Identify & quantify risks, response to the
Sponsor is a
uncertainties, & control risks during execution
person or group
3. Continuously utilize “progressive elaboration
that technique”
providesthroughout
the the project life cycle,
4. Adhere to code of professional conduct
financial
resources, in cash
or kind, for the
project
 Develop project charter

• Is the process of developing a document that formally

authorizes the existence of a project and provides the
project manager with the authority to apply organizational
resources to he project activities.

• - PMBOK –Edition-6
 Develop project charter

In puts Out puts

• Business documents • Project charter
– Business case • Assumption log
– Benefit management plan
• Agreements
• Enterprise environmental
factors
• Organizational process
assets
 • The project charter establishes a partnership between
the performing organization and requesting
organizations

Tools & Techniques • In case of external projects, a formal contract is

typically preferred way to establish agreement.

• A project charter may still be used to establish

internal agreements within the organization to ensure
proper delivery under contract.
1. Expert judgment
2. Data gathering • Approved project charter formally initiates the
• Brain storming project.
• Focus groups
• A project manager is identified and assigned as early
• Interviews in the project as is feasible while the charter is being
developed and always prior to the start of planning.
3. Interpersonal skills
• Conflict management • The project can be developed by the sponsor or the
• Facilitation project manager in collaboration with the initiating
entity.
• Meeting management
4. Meetings • The project charter provides the project manager with
he authority to plan, execute and control the project.
• Projects are initiated by entity external to the project
such as a sponsor, program or the portfolio office.
• Projects are initiated due to the internal business
needs or external influences.

• These needs often trigger the creation of a need

analysis, feasibility study, business case or the
description of the situation that the project will
address.

• Chartering a project validates alignment of the project

to the strategy and on going work of the organization.

• Charter is not considered a contract because there is

no consideration or money promised or exchanged in
its creation.
 Project charter
• Project purpose • Key stake holder list

• Measurable project objectives • Project approval

and related success criteria requirements

• High level project description • Project exit criteria

, boundaries, and key
deliverables • Assigned project manager ,
responsibility and authority
• Over all project risk level

• Summery mile stone schedule • Name and authority of the

sponsor
• Pre approved financial
resources
 Project Scope management
• Includes the processes required to ensure that the project
includes all the work required, and only the work required ,
to complete the project successfully.

• Managing the project scope is mainly concerned with

– Defining and controlling what is in the project and what is not in the
project.
• Processes:-
– 1. Plan scope management
– 2. Collect requirements
– 3.Define scope
– 4.Create WBS
– 5. Validate scope
– 6. Control scope
 Project scope management

• Product scope : The features and functions that

characterize a product or service, or a result.

• Project scope :- The work performed to deliver a

product or service or a result with the specified
features and functions.

• The term “ Project scope” is some times viewed as

including the product scope.
 Plan scope management

• Is the process of creating , a scope management

plan that documents how the project and product
scope will be defined , validated and controlled.

• - PMBOK- Edition-6
 Plan scope management

• In puts: • Out Puts:

– Project charter – Scope management
– Project management Plan Plan
• Quality management Plan – Requirements
• Project life cycle description management plan
• Development approach
– EEF’s
– OPA’s
 Plan scope management Plan : T & T

• Expert judgment
• Data analysis
• Meetings
 Scope management plan

• Is a component of the project management plan.

• It describes how the scope will be defined, developed,
monitored, controlled, and validated.

• It includes:
– Process for preparing a project scope management plan.
– Process that enables the creation of the WBS from the scope
statement.
– Process that establishes how the scope base line will be approved
and maintained.
– Process that specifies how the formal acceptance of the completed
deliverables will be obtained.
 Requirements management plan
• Is a component of the project management plan that
describes how project and product requirements will be
analyzed , documented and managed.

• It includes :
– How the requirements activities will be planned , tracked, and
reported.
– Configuration activities such as how changes will be initiated, how
impacts will be analyzed, how they will be tracked, and reported.
Authorization level needed to approve these changes.
– Requirements prioritization process
– Metrics that will be used and rationale using them
– Traceability structure that reflects the requirement attributes captured
on the trace ability matrix
 Collect requirements

• Is the process of determining , documenting, and managing

project stake holder needs and requirements to meet project
objectives.
 Collect requirements
• In puts: • Out puts
– Project charter – Requirements
– Project management plan documentation
• Scope management plan – Requirements
• Requirements management plan traceability matrix
• Stake holder management plan
– Project documents
• Assumption log
• Lessons learned register
• Stake holder register
– Business documents
• Business case
– Agreements
– EEF’s
– OPA.s
 Collect requirements : T & T
Expert judgment
Data gathering
Brain storming
Interviews
Focus groups
Questionnaires and surveys • Inter personal and team
Bench marking skills:
Data analysis – Nominal group technique
– Observation / conversation
Document analysis
– Facilitation
Decision making:
• Context diagram
Voting
Multi criteria decision analysis • prototypes
Data representation
• Affinity diagram
• Mind mapping
Context diagram
 Requirements documentation

• Requirements documentation describes how individual

requirements meet the business need for the project.
• Progressively elaborated, from high level requirements into
more detailed ones.
• It includes :
– Business requirements
– Stake holder requirements
– Solution requirements
• Functional & non functional
– Transition and readiness requirements
– Project requirements
– Quality requirements
 Requirements traceability matrix

– Is a grid that links product requirements from their origin to

the deliverables that satisfy them.
– It includes :
• Business needs, opportunities, goals, and objectives.
• Project objectives
• Project scope and WBS deliverables
• Product design
• Test strategy and test scenarios
• High level requirements to more detailed ones
 Define scope
• Is the process of developing a detailed description of the
project and product.

• Since all the requirements identified in collect requirements

may not be included in the project, define scope process
selects the final project requirements documentation . It
then develops a detailed description of the project and
product or service or result.
• Define scope process can be highly iterative.
 Define scope
• In puts : • Out put
• Project charter • Project scope statement.
• Project management plan • Project documents updates
– Scope management plan – Assumption log
• Project documents – Requirements
documentation
– Assumption log
– Requirements traceability
– Requirements documentation
matrix
– Risk register
– Stake holder register
• EEF’s
• OPA’s
 Define scope : T & T
• Expert judgment.

• Data analysis
– Alternative analysis

• Decision making
– Multi criteria decision analysis

• Inter personal and team skills

– Facilitation

• Product analysis:
– Product break down
– Requirements analysis
– System analysis
– System engineering
– Value analysis
– Value engineering
 Project scope statement

• Product scope description

• Deliverables
• Acceptance criteria
• Project exclusions
 Create WBS

• Is the process of subdividing project work into smaller ,

more manageable components.

• .
 Create WBS

• In puts: • Out puts:

• Project management plan • Scope base line
– Scope management plan project document updates
• Project documents: – Assumption log
– Project scope statement – Requirements
documentation
– Requirements
documentation
 Create WBS : T &T

• Expert judgment
• decomposition
 Create WBS
• The WBS is a hierarchical decomposition of the total scope of the
work to be carried out by the project team to accomplish the
project objectives and create the required deliverables.

• The WBS organizes and defines the total scope of the project and
represents the work specified in the current approved project scope
statement.

• The planned work is contained within the lowest level of WBS

components , which are called as work packages.

• A work package can be used to group activities where the work is

scheduled and estimated, monitored and controlled.

• In the context of WBS, work refers to work products , or

deliverables that are the result of activity and not to the activity it
self.
 Create WBS
• Scope base line : Approved scope statement +
approved WBS + Its dictionary.
– Control account.
– Work package.
– Planning package : is a WBS component below control
account and above the work package with the known
work content but with out detailed scheduled activities.
– 8/80 rule
– 100% rule
– Divide and conquer
 Create WBS

• WBS dictionary :-
– Code no
– Description work in the work package
– Assumptions and constraints
– Responsible organization
– Schedule milestone
– Associated schedule activities
– Resources required
– Cost estimates
– Quality requirements
– Acceptance criteria
– Technical references
– Agreement information
 AGILE PROJECT
• Theme : Top level objective / program /
portfolio
• Epic : Any thing user . Big requirements. (
product back log)
• User stories : ( Sprint back log)
• Tasks : To be executed to achieve / complete
user story.
 Agile project
THEME

EPIC-1 EPIC-2

STORY-1 STORY-2

TASK-A

TASK-B

TASK- C
 Validate scope

• Is the process of formalizing acceptance of the

completed deliverables.
 Validate scope
• In puts:
• Project management plan
– Scope management plan
– Requirement management plan
– Scope base line
• Project documents:
– Lessons learned register
– Quality reports
– Requirements documentation
– Requirements traceability
matrix
• Verified deliverables
• Work performance data
• Out puts:
• Accepted deliverables
• Work performance
information
• Change requests
– Project document updates
– Lessons learned register
– Requirements
documentation
– Requirements traceability
matrix
 Validate scope : T & T

• Inspection
– Decision making
– voting
 Control scope

• Is the process of monitoring the status of the

project and product scope and managing changes to
the scope base line.

• Key benefit:- is that the scope base line is

maintained through out the project life cycle.

• Is performed through out the project life cycle.

 Control scope

• In puts: • Out puts:

• Project management plan
– Scope management plan
– Requirements management plan
– Change management plan
– Configuration management plan
– Scope base line
– Performance measurement base line
• Project documents:
– Lessons learned register
– Requirements document
– Requirements traceability matrix
• Work performance data
• OPA’s
• Work performance
information
• Change requests
• Project management plan
updates:
– Scope management plan
– Scope base line
– Schedule base line
– Cost base line
– Performance measurement
base line
• Project documents updates
• Lessons learned register
• Requirements documentation
• Requirements trace ability
matrix
 Control scope : T & T

• Data analysis
– Variance analysis
– Trend analysis
 Create WBS
First we need to organize project “work”

Travel Abroad

Ticketing &
Passport
Passport Visa
Boarding

Apply
Apply forfor
Obtain
Get Work Breakdown Structure
Passport
Passport
Police
Passport organizes and defines the
verification
“total scope of the project”
Get
Application WBS subdivides the project deliverables into
Form smaller, more manageable deliverables, with
Fill each descending level of WBS representing
Application an increasingly detailed definition of the
Form
project work. Lowest level of WBS
Submit components or deliverables are called “work
Application
Form
packages”.
WP’s can be scheduled, cost estimated,
monitored, & controlled
 Project schedule management

• Includes the processes needed to complete the

project in time.

• 1. Plan schedule management

• 2. Define activities
• 3. Sequence activities
• 4. Estimate activity durations
• 5. Develop schedule
• 6. Control schedule
 Plan schedule management

• Is the process of establishing the policies ,

procedures, and documentation for planning,
developing, managing, executing, and controlling
the project schedule.
 Plan schedule management

• In puts • Out puts

• Project management plan • Schedule management
– Scope management plan plan
– Development approach
• EEF’s
• OPA’s
 Plan schedule management : T & T

• Expert judgment
• Data analysis
• meetings
 Schedule management plan

• 1. Project schedule development

• 2. Release iteration length
• 3. Level of accuracy
• 4. units of measure
• 5. Organizational procedure link
• 6. Project schedule maintenance
• 7. Control thresholds
• 8. Rules of performance measurements
• 9. Reporting formats
 Define activities

• Is the process of identifying and documenting the

specific actions to be executed to produce the
project deliverables.
 Define activities

• In puts • Out puts

• Project management plan
– Schedule management plan
– Scope base line
• EEF’s
• OPA’s
• Activity list
• Activity attributes
• Mile stone list
• Change requests
• Project management
plan updates
– Schedule base line
– Cost base line
 Define activities : T & T

• Expert judgment
• Decomposition
• Rolling wave planning
• meetings
 Sequence activities

• Is the process of identifying and documenting

relationships among the project activities.

• Key Benefit :- It defines the logical sequence of

work to obtain the greatest efficiency given all the
project constraints.

• Is performed through out the project life cycle.

 Sequence activities
• In puts:
– Project management plan
– Schedule management plan
– Scope base line
• Project documents:
– Activity attributes
– Activity list
– Assumption log
– Mile stone list
• EEF’s
• OPA’S
• Out puts:
• Project schedule net
work diagrams
• Project document
updates:
– Activity attributes
– Activity list
– Assumption log
– Milestone list
 Sequence activities : T & T

• Precedence diagramming method

• Dependency determination and integration
• Leads and lag
• Project management information system
 Sequence activities : T & T
• Types of relation ships among activities :
– FS: Finish to start
– SS: Start to start
– FF: Finish to finish
– SF: Start to finish
• Merge configuration / Burst configuration of
activities
• Lead and lag
• Slack / Float
• Free slack / Free float
 Sequence activities : T & T

• Slack / Float of activity = ( LS-ES ) or ( LF- EF)

• For Beta distribution : PERT scheduling
– Pert Duration of activity = ( P+4*M+O)/6
– Standard dev of activity = ( P-O)/6
– Variance of activity = ( SD)^2 = {( P-O )/6}^2

• For triangular distribution :

– Duration of activity : ( P+M+O)/3
 CPM-EXERCISE-1
• Sl.no act dur pred.

• 1.Estimate cost
• to complete project. 7 d ----
• 2.Bid job& get order. 15 d 1
• 3.Build system 7d 2
• 4.Dev-training 4d 2
• 5.Implement. 5d 3,4
•
• Find critical path, float/slack, for each activity.
 CPM – EXERCISE-2
• SL. NO. ACTIVITY. DUR. PRED.

• 1 A 2 DAYS.
• 2 B 6 DAYS. 1
• 3 C 8 DAYS. 1
• 4 D 4 DAYS. 2,3

• FIND CRITICAL PATH . FLOATS. OF ALL

ACTIVITIES.
 CPM-3
• SL Activity Dur(Hrs) Pred.
• A Remove & dis mantle
• motar. 8 ----
• B. Clean & Paint frame. 7 A.
• C. Rewind armature. 12 A.
• D. Replace armature. 9 A.
• E. Assemble & Install
• Motar. 4 B,C,D
• Calculate the total time of the over haul.
 CPM-Exercise -4.
• Sl no activity dur pred.

• 1 Get equipment. 5d
• 2. hire people. 4d
• 3. develop system. 15 d 1,2
• 4. training. 3d 3
• 5. documentation. 6d 3
• 6. install system. 9d 4,5

• Find critical path.

• What is float for each activity?.
 CPM – EXERCISE-5
• Sl no. Act dur pred.

• 1. project del’s 12 d ----

• 2.procure h/w 2 1
• 3.test h/w 8 2
• 4.procure s/w tools. 10 1
• 5.write programs 45 4
• 6.test & debug 22 5
• 7.install 8 3,6
• 8.training 3 7
• 9.acceptance 1 8.
• Find critical path, float/slack, for each
activity.
 CPM EXERCISE-6
• Sl no act dur pred
•
• 1 specs 15d nil
• 2 design data base part. 45d 1
• 3 design GUI part. 30d 1
• 4 code data base part. 105d 2
• 5 code GUI part. 45d 3
• 6 integrate & test. 120d 4,5
• 7 write user manual. 60d 1
• 8 finish. 0d 7,6
 PERT – EXERCISE-1

• SL.NO pred O M P
• 1 ESTIMATE 5 7 15
• 2 BID 1 10 15 25
• 3 BUILD 2 4 7 10
• 4 TRAIN 2 4 4 4
• 5 IMPLEMET. 3,4 3 5 10
• Find PERT duration of the project.
• Probability of completing the project?
 Crashing : Time / Cost trade off
SL NO PREDECESS Normal Crashed Normal Crash cost Cost of
OR duration ( D) duration cost Rs Rs acceleratio
( D) n/ day
START - 0 - -

A START 7 5 50,000 62,000

B A 9 6 80,000 110,000

C START 10 9 40,000 45,000

D C 8 6 30,000 42,000

FINISH B.D 0
 Crashing : Time / Cost trade off
SL NO PREDECESS Normal Crashed Normal Crash cost Cost of
OR duration ( D) duration cost Rs Rs acceleratio
( D) n/ day
START - 0 - -

A START 7 5 50,000 62,000 6,000

B A 9 6 80,000 110,000 10,000

C START 10 9 40,000 45,000 5000

D C 8 6 30,000 42,000 6,000

FINISH B.D 0
 Crashing : Time / Cost trade off

• Project cost ? Project duration ?

• What is min duration of project using the crashing

choices ?

Project Project cost ( Rs)

duration ( D)
 Crashing : Time / Cost trade off

• Project cost ? Project duration ?

• What is min duration of project using the crashing

choices ?
Project Project cost ( Rs)
duration ( D)

18 2,00,000

17 205,000 200,000+5,000

16 211,000 205,000+6,000

15 223,000 211,000+6000+6000
 Resource leveling
SL. NO ACTIVITY DURATION IN PREDECESSORS RESOURCES
DAYS

1 A 3 ----- M1

2 B 1 1 M2

3 C 1 1 M1
 Estimate activity durations

• Is the process of estimating the no of work periods

required to finish individual activities with
estimated resources.
 Estimate activity durations
• In puts:
• Project management plan
– Schedule management plan • Out puts:-
– Scope base line • Duration estimations
• Project documents: • Basis of estimation
– Activity attributes • Project documents
– Activity list updates:
– Assumption log – Activity attributes
– Lessons learned register – Assumption log
– Mile stone list – Lessons learned register
– Project team assignments
– Resource break down structure
– Resource calendars
– Resource requirements
– Risk register
• EEF’s
• OPA’s
 Estimate activity durations : T & T

• Expert judgment
• Analogous estimating
• Parametric estimation
• Three point estimating
• Bottom up estimating
• Data analysis
– Alternative analysis
– Reserve analysis
• Decision making
• Meetings
 Estimate activity durations
• Law of diminishing returns
• Learning curve
• Advances in technology
• Motivation of staff :
– Student’s syndrome
– Law of Parkinson
– Law of multitasking
• Reserve analysis
 Develop schedule

• Is the process of analyzing activity sequences ,

durations, resource requirements, and schedule
constraints , to make a schedule model for project
execution, and monitoring and controlling.
 Develop schedule
In puts: • Out puts :
Project management plan: • Schedule base line
Schedule management plan • Project schedule
Scope base line • Schedule data
Project documents: • Project calendars
Activity attributes
• Change requests
Activity list
Assumption log • Project management plan
Basis of estimation updates:
Duration estimates – Schedule management plan
Lessons learned register – Cost base line
Mile stone list • Project document updates:
Project schedule net work diagrams – Activity attributes
Project team assignments – Assumption log
Resource calendars – Duration estimates
Resource requirements – Lessons learned register
Risk register – Resource requirements
Agreements – Risk register
EEF’s
OPA’s
 Develop schedule : T & T
• Schedule net work analysis :
– Forward pass of the net work diagram
– Back ward pas of the net work diagram
• Critical path method
• Resource optimization
• Data analysis :
– What if
– Simulation “ Monte Carlo”
• Leads and lags
• Schedule compression techniques
• Project management information system
• Agile release plan
135
Agile -Release plan

136
 Control schedule

• Is the process of monitoring the status of the

project to update the project schedule and
managing changes to the schedule base line.
 Control schedule
• In puts:
• Project management plan
– Schedule management plan
– Schedule base line
– Performance measurement base
line
• Project documents
– Lessons learned register
– Project calendars
– Project schedule
– Resource calendars
– Schedule data
• Work performance data
• OPA’s
• Out puts:
• Work performance information
• Schedule fore casts
• Change requests
• Project management plan
updates:
– Schedule management plan
– Schedule base line
– Cost base line
– Performance measurement base
line
• Project documents updates
– Assumption log
– Basis of estimates
– Lessons learned register
– Project schedule
– Resource calendars
– Risk register
– Schedule data
 Control schedule : T & T

• Data analysis
– Earned value analysis
– Iteration burned down chart
– Performance reviews
– Variance analysis
– What if analysis
• Critical path method
• Project management information system
• Resource optimization
• Leads and lags
• Schedule compression
 Burn down chart
FEATURE TASK NO TASK STATUS OWNER ESTIM EFFORT
NAME DECSRIPTION /RESOU ATE REMAI
RCE HRS NING

SPENT REMAI
NING

FEATURE 1 REQUIREMNT CLOSED B.A 6 6 0

-1 S ANALYSIS

2 DEVELOPMEN U/P DEVELO 10 6 4

T PMNEN
T

3 EXECUTION OPEN TESTER- 12 0 12

1
 BURN DOWN CHART TABLE
•
D0 28

D1 22

D3 16

D4 0
 Burn down chart
30

25

20

15
Series1

10

0
1 2 3 4
 Project cost management
• Includes the processes of planning, estimating,
financing, funding, managing and controlling
project costs in order to complete the project within
approved budget.

• Processes :
– Plan cost management
– Estimate cost
– Determine budget
– Control cost
 Plan cost management

• Is the process of defining how the project costs will

be estimated , budgeted, managed, monitored and
controlled.
 Plan cost management

• In puts: • Out puts:

• Project charter • Cost management plan
• Project management
plan
– Schedule management
plan
– Risk management plan
• EEF’s
• OPA’s
 Plan cost management : T & T

• Expert judgment
• Data analysis
• meetings
 Cost management plan
• Units of measure
• Level of precision
• Level of accuracy
• Organizational procedure links
• Control thresholds
• Rules of performance
• Reporting formats
• Additional details:
– Description of strategic funding choices
– Procedure to account for fluctuation in currency exchange
rates
– Procedure for project cost recording
 Estimate costs
• Is the process of developing an approximation of
the project cost of resources required to complete
the project work.
 Estimate costs
• In puts: • Out puts :
• Project management plan • Cost estimates
– Cost management plan • Basis of estimates
– Quality management plan • Project document updates:
– Scope base line – Assumption log
• Project documents: – Lessons learned register
– Lessons learned register – Risk register
– Project schedule
– Resource requirements
– Risk register
• EEF’S
• OPA’s
 Estimate costs : T & T
• Expert judgment
• Analogous estimating
• Parametric estimating
• Bottom up estimating
• Three point estimating
• Data analysis:
– Alternative analysis
– Reserve analysis
– Cost of quality
• Project management information system
• Decision making
– voting
 Determine budget

• Is the process of aggregating the estimated costs of

individual activities or work packages to establish
an authorized cost base line.
 Determine budget
• In puts: • Out puts:
• Project management plan • Cost base line
– Cost management plan • Project funding
– Resource management plan requirements
– Scope base line • Project documents updates
• Project documents: – Cost estimates
– Basis of estimates – Project schedule
– Cost estimates – Risk register
– Project schedule
– Risk register
• Business document
– Business case
– Benefit management plan
• Agreements
• EEF’s OPA’s
 Determine budget : T & T

• Expert judgment
• Cost aggregation
• Data analysis
– Reserve analysis
• Historical information review
• Funding limit reconciliation
• financing
Cost Baseline

154
 Control costs

• Is the process of monitoring the status of the

project to update the project costs and managing
changes to the cost base line.
 Control costs
• Inputs: • Out puts:
– Project management plan • Work performance information
– Cost management plan • Cost fore casts
– Cost base line
• Change requests
– Performance measurement base line
• Project documents : • Project management plan
updates:
– Lessons learned register
– Cost management plan
• Project funding requirements – Cost base line
• Work performance data – Performance measurement base
• OPA’s line
• Project documents updates:
– Assumption log
– Basis of estimates cost estimates
– Lessons learned register
– Risk register
 Control costs : T & T
• Expert judgment

• Data analysis
– Earned value analysis
– Variance analysis
– Trend analysis
– Reserve analysis

• To- complete performance index

• Project management information system

 Control costs : Key words
Planned value ( PV) : - The authorized budget assigned to
scheduled work. ( BCWS) Budgeted cost of work scheduled.

Earned value ( EV) :- The measure of work performed

expressed in terms of the budget authorized for that work. (
BCWP ) Budgeted cost of work performed.

Actual cost ( AC) :- The realized cost incurred for the work
performed on an activity during a specific time period.
( ACWP) Actual cost incurred in work performance.

BAC = Budget at completion= The sum of all budgets

established for the work to be performed. = Total of PV.
 Control costs : Key words
• Cost variance = CV=( EV-AC) Typical variation
• Schedule variance = SV= ( EV-PV)
• Cost performance Index = CPI= (EV)/(AC)
• Schedule performance index = SPI = (EV) / (PV)
• Fore casting formulae:
• EAC = Estimate at completion = ( BAC ) /( CPI)
Typical variation.
• EAC for atypical variation = AC+ ( BAC- EV)
• EAC Based combined performance = AC+ [(BAC-
EV)]/(CPI)*( SPI)
 Control costs : Key words

• Estimate to complete = ETC = EAC-AC

• Variation at completion = BAC-EAC
• Revised duration = ( Original Duration ) / (SPI)
• TCPI = To complete performance index , based on
BAC = ( BAC- EV) / (BAC- AC)
• TCPI based on EAC = ( BAC-EV) / ( EAC- AC)
 Earned Value
• 4- Systems installation . Each /day. Rs1000/ system. One after another.

• Report at Day-3.
• Completed one system. spent Rs1000.(D-1)
• Completed 2nd system. Spent Rs1200(D-2)
• Completed 50%of 3rd system .spent Rs600 (D-3)

• Pv=1000+1000+1000=3000
• Ev=1000+1000+500=2500
• Ac=1000+1200+600=2800
 Earned Value
• BAC =Rs4000. Original Duration = 4 days.

• Cost variance = EV-AC=2500-2800=-300

• Cost performance index =EV/AC=2500/2800=0.893

• Over budget. Getting 89 paise for every rupee.

• Schedule variance =EV-PV=2500-3000=-500

• Schedule performance index=SPI=2500/3000=0.833

• Behind schedule & progressing @83% of the rate originally planned.

• EAC = Estimate at completion = BAC/ CPI= 4000/0.89= 4479
• ETC = Estimate to complete = EAC-AC= 4479-2800=1679

• VAC = Variation at completion = BAC-EAC= 4000-4479=-479o complete

• TCPI = To complete performance based BAC = ( BAC-EV)/ ( BAC-AC)=
• =( 4000-2500)/ ( 4000- 2800) =1.25 =125%

• Revised duration = Original duration / SPI= (4)/0.83= 4.8 days.

 Exercise - EV Problem

 The project: 5 software package installs on 5 existing PCs in 5

weeks (1 installation /week ) for a total consulting fee of $5,000.
After two weeks only 1 install has been done for a cost of
$1,500.
 Determine PV, AC, EV.
 Calculate SV, CV, SPI, CPI.
 Assume the rate of progress continues and calculate EAC .
 Calculate revised project duration and TCPI.

163
Exercise Solution

164
 Earned Value

• You have planned for a project to write a software

application to take 1 year. The costs to this project
are budgeted at $12,500 per month.

• Six months into the project, you find that software

application is 50% completed, & spent $70,000

• Calculate CV, CPI, SV, SPI, VAC.

 Earned Value
• BAC =(12 MONTHS)*($12,500/MONTH)= $150,000
• PV=(6MONTHS)*($12,500)/MONTH=$75,000.
• EV= SW IS 50% COMPL = $75,000.
• AC=$70,000
• CV=EV-AC=$75,000-$70,000=$5000.
• SV=EV-PV=$75,000-$75,000=$0.
• CPI=EV/AC=75,000/70,000=1.O7
• SPI=EV/PV=75,000/75,000=1
• EAC=BAC/CPI=$150,000/1.07=$140,186.91
• ETC=EAC-AC=$140,186.91-$70,000=$70,186.91
• VAC=BAC-EAC=$150,000-$140,186.91=$9813.09
 EVM
• EV EVc AC ACc CPI CPIc

• Month-1, 22000 22000 13,700 13700 1.61 1.61

• Month-2, 151000 173000 137,900 151,600 1.09 1.14

• Month-3, 107,000 280,000 98,400 250,000 1.09 1.12

Earned Value Management

168
 COSTS
• Life cycle cost:
• product cost+ maintenance cost for the entire
life of the product. Is also called as ownership
cost.

• Variable cost :
• costs that change with amount of production ex:
cost material used , wages etc.

• Fixed cost: that do not change as the production

changes. Ex: set up costs, rental etc.
 COSTS
• Direct costs :
• costs that are directly attributable to the
work on the project.
• Ex: team travel, team wages, recognition,
costs of materials used on the project.

• Indirect costs:
• over head costs- costs incurred for the
benefit of more than one project. Ex: taxes,
janitorial services.
 COSTS
• Sunk cost :
• expended cost in the project.

• Working capital:
• the amount of money the company has to
invest in the projects.

• Depreciation:
• large assets (equipments) purchased ,
loose value over time. Accounting standards
call this “depreciation”.
 COSTS
• Straight line depreciation:

• same amount depreciation is taken every

year. Ex: a $1000 item with 10 years of
useful life with no salvage value could be
depreciated $100/year.

• Accelerated depreciation:
• double declining balance & sum of years.
 Project Risk
Management.
probability is
the language
of uncertainty
Risk management is
the means by which
uncertainty is
systematic managed
Key word is systematic
 Project Risk management

Uncertain
Risk event
or
condition
that if
occurs
has
+ ve - ve

effect on the Project Objectives

 Project risk management

• Risk management processes are :

– 1. Plan risk management.
– 2. Identify risks.
– 3. Perform qualitative risk analysis.
– 4. Perform quantitative risk analysis.
– 5. Plan risk responses.
– 6. Implement risk responses.
– 7. Monitor risks.
 Plan risk management

• Is the process of defining how to conduct risk

management activities for a project.
 Plan risk management

• Inputs: • Out puts:

– Project charter – Risk management plan
– Project management
plan
• All components
– Project documents
• Stake holder register
– EEF’s
– OPA’s
 Plan risk management : T & T

• Expert judgment.
• Data analysis
– Stakeholder analysis
• Meetings
 Risk management plan
• Risk strategy
• Methodology
• Roles and responsibilities
• Funding
• Timing
• Risk categories
• Stake holder risk appetite
• Definition of risk probability and impact
• Risk scoring scheme
• Reporting formats
• Tracking
 Risk Breakdown Structure (RBS)
Project

Technical External Organizational Project Mgmt

Requirements Project Estimating

Subcontractors &
Suppliers dependencies

Technology Planning
Regulatory Resources

Complexity &
Market Funding Controlling
Interfaces

Performance &
Customer Prioritization Communication
Reliability

Quality Weather
 Risk management planning
Definition conditions for Impact Scales of a Risk on
Four Major Project Objectives
(examples are shown for negative impacts only)

Project Very low Low Moderate High Very high

objective .05 .1 .2 .4 .8

Insignificant <5%
Cost cost increase cost increase
5-10%
cost increase
10-20%
cost increase
>20%
cost increase

Insignificant <5% 5-10% 10-20% >20%

Schedule sch slippage sch slippage sch slippage sch slippage sch slippage

Barely scope Minor areas Major areas Scope Effects

Scope change affect
noticeable
scope
affected
of scope
affected
reduction
unacceptable
project
product

Low quality Affects vary Quality Quality Effects

reduction
Quality barely demanding
requires
reduction project
noticeable applications approval unaccepted product
 Risk management planning
probability and impact matrix
Risk score (probability x impact) for a specific risk
Probability Threats Opportunities
0.9 0.05 0.09 0.18 0.36 0.72 0.72 0.36 0.18 0.09 0.05
0.7 0.04 0.07 0.14 0.28 0.56 0.56 0.28 0.14 0.07 0.04
0.5 0.03 0.05 0.10 0.20 0.40 0.40 0.20 0.10 0.05 0.03
0.3 0.02 0.03 0.06 0.12 0.24 0.24 0.12 0.06 0.03 0.02
0.1 0.01 0.01 0.02 0.04 0.08 0.08 0.04 0.02 0.01 0.01
0.05 0.10 0.20 0.40 0.80 0.80 0.40 0.20 0.10 0.05
Impact (Ratio scale) on an objective - cost, time, scope of quality

Low impact Moderate impact High impact

 Identify risks

• Is the process of identifying individual project risks,

and sources of over all project risk, and
documenting their characteristics.
 Identify risks
• Inputs: • Out puts:
• Project management plan
– Schedule management plan
– Risk register
– Cost management plan – Risk report
– Quality management plan
– Resource management plan
– Project documents update
– Risk management plan • Assumption log
– Scope base line • Issue log
– Schedule base line
– Cost base line • Lessons learned register
• Project documents
– Assumptions log
– Cost estimates
– Duration estimates
– Issue log
– Lessons learned register
– Requirements documentation
– Resource requirements
– Stake holder register

• Agreements
• Procurement documentation
• EEF’S
• OPA’s
 Identify risks : T & T
• Expert judgment
• Data gathering
– Brain storming
– Check lists
– Interviews
• Data analysis
– Root cause analysis
– Assumption and constraints analysis
– SWOT analysis
– Documents analysis
• Inter personal and team skills
– Facilitation
• Prompt lists
• Meetings
 Risk register

• List of identified risks.

• Potential risk owners.
• List of potential responses.
 Risk report

• Contains information on sources of over all project

risk, together with summery information on
identified individual project risks.

• Sources of over all project risk, indicating which are

most important drivers of over all project risk
exposure.

• The results of perform qualitative risk analysis,

quantitative risk analysis, plan risk responses,
implement risk responses, and monitor risks are
also included in risk report.
 Perform qualitative risk analysis
• Is the process of prioritizing individual project risks
for further analysis or action by assessing their
probability of occurrences and impacts and other
characteristics.
 Perform qualitative risk analysis
• In puts : • Out puts
– Project management – Project documents
plan updates
• Risk management plan • Assumption log
– Project documents • Risk report
• Assumption log • Risk register
• Risk register • Issue log
• Stake holder register
– EEF’s
– OPA’s
 Perform qualitative risk analysis : T & T
• Expert judgment
• Data gathering
– interviews
• Data analysis
– Risk data quality assessment
– Risk probability and impact assessment
– Assessment of other risk parameters
• Inter personal and team skills
– Facilitation
• Risk categorization
• Risk representation
– Probability and impact matrix
– Hierarchical charts
• Meetings
 Assessment of other risk parameters
• Urgency
• Proximity
• Dormancy
• Manageability
• Controllability
• Detect ability
• Connectivity
• Strategic impact
• propinquity
 Bubble diagram

RISK EVENT PROXIMITY IMPACT DETECTABILITY

A 4 5 3

B 2 4 5
 Bubble diagram/ Hierarchical chart
6

3
Series1

0
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
Identify risks
Diagramming techniques

Cost
budget
Sale
volume
Units
sold Profit
Market
share
Product
Revenue
price Chance General Objective
Decision variable variance variance variable
You have a power you can’t OUTCOME
to control control it
directly Arrow donates INFLUENCE
 Risk management planning
Definition conditions for Impact Scales of a Risk on
Four Major Project Objectives
(examples are shown for negative impacts only)

Project Very low Low Moderate High Very high

objective .05 .1 .2 .4 .8

Insignificant <5%
Cost cost increase cost increase
5-10%
cost increase
10-20%
cost increase
>20%
cost increase

Insignificant <5% 5-10% 10-20% >20%

Schedule sch slippage sch slippage sch slippage sch slippage sch slippage

Barely scope Minor areas Major areas Scope Effects

Scope change affect
noticeable
scope
affected
of scope
affected
reduction
unacceptable
project
product

Low quality Affects vary Quality Quality Effects

reduction
Quality barely demanding
requires
reduction project
noticeable applications approval unaccepted product
 Risk management planning
probability and impact matrix
Risk score (probability x impact) for a specific risk
Probability Threats Opportunities
0.9 0.05 0.09 0.18 0.36 0.72 0.72 0.36 0.18 0.09 0.05
0.7 0.04 0.07 0.14 0.28 0.56 0.56 0.28 0.14 0.07 0.04
0.5 0.03 0.05 0.10 0.20 0.40 0.40 0.20 0.10 0.05 0.03
0.3 0.02 0.03 0.06 0.12 0.24 0.24 0.12 0.06 0.03 0.02
0.1 0.01 0.01 0.02 0.04 0.08 0.08 0.04 0.02 0.01 0.01
0.05 0.10 0.20 0.40 0.80 0.80 0.40 0.20 0.10 0.05
Impact (Ratio scale) on an objective - cost, time, scope of quality

Low impact Moderate impact High impact

 RISK SCORE
• Risk event : govt may increase commercial
tax.
• Likely Impact on the project objective: cost
increase <6%.
• Ref impact matrix:
• It is low with value 0.2
• Prob of this event happening=0.1
• The risk score =(0.2)*(0.1)=0.02
• Ref PI matrix : this score is on “Green”.
• This may not require response plan.
 RISK SCORE
• Risk event: there may be strike on port.
• Likely impact on the project objective: cost .
The cost of out put of the project may
increase >18%.
• Ref impact scale : very high (0.8)
• The team assess the prob of this event
happening=0.3
• The risk score of this event =(0.8)*(0.3)=0.24
• This score is on “RED”. To be taken on top
priority for response planning.
 Perform quantitative risk analysis
• Is the process of numerically analyzing the
combined effect of identified individual project
risks and other sources of uncertainty on over all
project objectives.

• Key benefit : It quantifies over all project risk

exposure and it can also provide additional
quantitative risk information to support for
response planning.
• It is performed through out the project.
 Perform quantitative risk analysis
• In puts: • Out puts:
– Project management plan – Project document updates
• Risk management plan
• Scope base line
• Cost base line
– Project documents
• Assumption log
• Basis of estimates
• Cost estimates
• Duration estimates
• Mile stone list
• Resource requirements
• Risk register
• Risk report
• Schedule fore casts
– EEF’s
– OPA’s
 Perform quantitative risk analysis

• Expert judgment
• Data gathering
– Interviews
• Interpersonal and team skills
– Facilitation
• Representation of uncertainty
• Data analysis
– Simulation
– Sensitivity analysis
– Decision tree analysis
– Influence diagram
 Perform Quantitative Risk Analysis

• Data gathering and representation

techniques:
– Interviewing ( P+4*M+O)/6 cost
estimates
– Probability distribution : beta , and triangular
– Modeling simulation : Monte Carlo simulation
sensitivity analysis ( Tornado diagram)
– Expected money value analysis : decision tree
analysis: EMV =( Prob)*( Amount at stake)
 Expected money value
• Risk prob impact EMV
• Bulldozer 0.4 $1500 $600
• Not delivered
• On time.
• Rain stops work on any given day. 0.20 $6000 $1200
• Strike occurs 0.10 $7000 $700
– (impact /day)

Customer disapproves the quality when the first

room is being painted:
0.30 $6000 $1,800
 EMV
• Build in house custom solution:-
• Cost $1,325,000.
• 30% probability of failure
• Implementation successful , impact =$ 0.
• Commercial package :
• Cost $ 2,250,000
• Probability of failure is 10%
• Implementation successful , impact =$0
• Risk cost = $ 5,000,000
 Decision tree analysis
• cost=$2,250,000 Buy case.

success
$ 0 impact

$,5000,000 10% probability

success
$0 impact

$,5000,000
30% prob

• Build case cost =$ 1,325,000

 EMV
• Commercial package:-
• $2,250,000+(0.10)*($5,000,000)
=$2,750,000.
• Custom software :-
• $1,325,000+(0.30)*($5,000,000).=
$2,825,000.
• Custom software has a higher over all cost
due to higher risk.
 EMV
• You need to fly from one city to another. You
can take air line A or B. considering the data
provided, which air line you should take , &
what is expected monetary value of your
decision?.

• Air line A = fare $900. on time 90%. late

impact :$4000.
• Air line B = fare $300. on time 70%. Late
impact =$4000.
 EMV
• EMV analysis:-
• Air line A:- (10%)*($4000)+$900=$1300.
• Air line B :- (30%) *($4000) +$300 =$1500.
• We should choose air line –A with EMV of $1300.
 Quantitative Risk Analysis
Expected Money Value:
• EMV or Risk event status = Risk Probability X Amt at Stake

E.g.: In considering a new project, marketing forecast indicates , there is a

30% probability that the income the first year will result in a loss of $40,000,
however there is also a 50% probability that the revenue is as high as
$80,000 as well as 20% probability of revenue will be $6,000. Find the EMV

Amount at Stake Risk Probability EMV or Risk Event Status

($40,000) 30% ( or 0.3) ( $ 12000)

$ 80,000 50% ( or 0.5) $40,000
$ 6000 20% ( or 0.2) $ 1200
100% or 1 $ 29,200
 Quantitative Risk Analysis
Decision Tree Analysis
• The decision tree is a diagram that describes the decision under consideration and the
implication of choosing one or another available alternatives. It incorporates the
probabilities of risks and costs. Solving the decision tree yields greatest expected value.
 EMV

• $200-$120=$80M ($80)*(0.65)=52
• -$120+$90=-$30M ($30)*(0.35)=-10.5
• Net EMV =41.5

• $120-$50=$70M ($70)*(0.65)=45.5
• $60-$50=$10M ($10)*(0.35)=3.5
• Net EMV =49
• GO FOR UPGRADE
 Simulation : Monte Carlo

• Sensitivity chart.
• Criticality index.
 Plan risk responses
• Is the process of developing options , selecting
strategies, and agreeing on actions to address over
all project risk exposure and to treat individual
project risks.
 Plan risk responses
• Inputs
– Project management plan
• Resource management plan
• Risk management plan
• Cost base line
– Project documents
• Lessons learned register
• Project schedule
• Project team assignments
• Resource calendars
• Risk register
• Risk report
• Stake holder register
– EEF’s
– OPA’s
• Out puts:
– Change requests
– Project management plan
updates:
• Schedule management plan
• Cost management plan
• Quality management plan
• Resource management plan
• Procurement management plan
• Scope base line
• Schedule base line
• Cost base line
– Project documents updates
• Assumption log
• Cost fore casts
• Lessons learned register
• Project schedule
• Project team assignments
• Risk register
• Risk report
 Plan risk responses : T & T
• Expert judgment
• Data gathering
– Interviews
• Inter personal and team skills
– Facilitation
• Strategies for threats
• Strategies for opportunities
• Contingent response strategies
• Strategies for over all project risks
• Data analysis
– Alternative analysis
– Cost benefit analysis
• Decision making
– Multi criteria decision analysis
 Plan risk responses : T & T
• Strategies for threats:
– Escalate
– Avoid
– Transfer
– Mitigate
– Accept
• Strategies for opportunities:
– Escalate
– Exploit
– Share
– Enhance
– Accept
 Plan risk responses : T & T

• Contingent response strategies

• Strategies for over all project risks

– Avoid
– Exploit
– Transfer / share
– Mitigate / Enhance
– Accept
 Implement risk responses
• Is the process of implementing agreed upon
response plans.
 Implement risk responses
• In puts:
– Project management
plan
• Risk management plan
– Project documents
• Lessons learned register
• Risk register
• Risk report
– OPA’s
• Out puts:
– Change requests
– Project documents
updates:
• Issue log
• Lessons learned register
• Project team assignments
• Risk register
• Risk report
 Implement risk responses : T & T

• Expert judgment
• Inter personal and team skills
– Influencing
• Project management information system
 Monitor risks
• Is the process of monitoring the implementation of
agreed upon risk response plans, tracking identified
risks, identifying and analyzing new risks, and
evaluating risk process effectiveness through out
the project.
 Monitor risks
• Inputs:
• Project management
plan
– Risk management plan
• Project documents
– Issue log
– Lessons learned register
– Risk register
– Risk report
• Work performance data
• Work performance
reports
• Out puts:
– Work performance
information
– Change requests
– Project management plan
updates:
• Any components
– Project documents
updates:
• Assumption log
• Issue log
• Lessons learned register
• Risk register
• Risk report
– OPA’s updates
 Monitor risks : T & T

• Data analysis
– Technical performance analysis
– Reserve analysis
• Audits
• Meetings

• Note :- Work around is the strategy in this process

 Project stake holder management
• Includes processes required :
– To identify the people, groups, organizations that could
impact or be impacted by the project.
– To analyze stake holder expectations and their impact on
the project.
– To develop appropriate management strategies for
effectively engaging stake holders in project decisions,
and execution.
• Processes are :
– 1. Identify stake holders
– 2. Plan stake holder engagement
– 3. Manage stake holder engagement
– 4. Monitor stake holder engagement
 Identify stake holder
• Is the process of identifying project stake holders
regularly and analyzing and documenting relevant
information regarding their interests, involvements,
inter dependencies, influence , and potential impact
on project success.
 Identify stake holder
• In puts: • Out puts :
– Project charter – Stake holder register
– Business documents – Change requests
• Business case – Project management plan
• Benefit management plan updates
– Project management plan • Requirements
• Communication management plan
management plan • Communication
• Stake holder engagement management plan
plan • Risk management plan
– Project documents • Stake holder engagement
plan
• Change log
• Issue log – Project documents
• Requirements updates
documentation • Assumption log
– Agreements • Issue log
• Risk register
– EEF’s
– OPA’s
 Identify stake holder : T & T

• Expert judgment
• Data gathering
– Questionnaire and surveys
– Brain storming
• Brain storming
– Data analysis
– Document analysis
• Data representation
– Stake holder mapping representation / representation
• Meetings
 Identify Stakeholders
STAKE ASSESSMENT VIEW INFLUENCE STRATEGY Remarks
HOLDER INFO
IDENTIFICATION
INFO.

Name, Organization, Major Internal / H : High Manage Any relevant

Position, Location, Role requirements, main External, M : Med Closely information
in Project, Contact Info. expectations, Support / L : Low about this
potential influence Neutral / Keep Informed stakeholder
in the project, Resistor
phase in the Monitor
project life cycle
with most interest Engage
POWER / INTEREST GRID WITH STAKE
HOLDERS
KEEP SATISFIED .A MANAGE CLOSELY .B

HIGH

MONITOR .C KEEP INFORMED .D

LOW HIGH
Stake holder cube
Stake holder cube
Influence mapping

234
Salience Model
 Project stake holders- House construction
SL. NAME Power Legitima Urgency Danger Do De Defini Str
NO te ous min pen tive ate
ant den gy
t
1 Client √ √ √ √ I

2 Govt √ √ √ II

3 Rich √ √ √ II
neighbor
4 Neighbor √ √ √ II

5 Residents √ III

6 Contract √ √ √ √ I
labors
7 Suppliers √ √ √ II
 Plan stake holder engagement
• Is the process of developing approaches to involve
project stake holders based on their requirements,
expectations, interests, and potential impact on the
project.
 Plan stake holder engagement
• In puts • Out puts
– Project charter – Stake holder engagement
– Project management plan plan
• Resource management plan
• Communication management
plan
• Risk management plan
– Project documents
• Assumption log
• Change log
• Issue log
• Project schedule
• Risk register
• Stake holder register
– Agreements
– EEF’s
– OPA’s
Project Stakeholder Management – Stakeholder
Engagement Assessment Matrix

C = Current State, D = Desired State

 Manage stake holder engagement

• Is the process of communicating and working with

project stake holders to meet their requirements
and expectations, address issues, and foster
appropriate stake holder involvement.
 Manage stake holder engagement
• Inputs: • Out puts:
– Project management plan – Change requests
• Communication – Project management plan
management plan updates
• Risk management plan • Communication
• Stake holder engagement management plan
plan • Stake holder engagement
• Change management plan plan
– Project documents – Project documents
• Change log updates
• Issue log • Change log
• Lessons learned register • Issue log
• Stake holder register • Lessons learned register
– EEF’s • Stake holder register
– OPA’s
 Manage stake holder engagement : T & T

• Expert judgment
• Communication skills
– Feed back
• Inter personal and team skills
– Conflict management
– Cultural awareness
– Negotiation
– Observation / Conversation
– Political awareness
• Ground rules
• Meetings
 Monitor stake holder engagement

• Is the process of monitoring project stake holder

relationships, and tailoring strategies for engaging
stake holders through modification of engagement
strategies and plans.
 Monitor stake holder engagement
• In puts:
– Project management plan
• Resource management
plan
• Communication
management plan
• Stake holder engagement
plan
– Project documents
• Issue log
• Lessons learned register
• Project communications
• Risk register
• Stake holder register
– Work performance data
– EEF’s
– OPA’s
• Out puts:
– Work performance
information
– Change requests
– Project management plan
updates
• Resource management
plan
• Communications
management plan
• Stake holder engagement
plan
– Project documents
updates
• Issue log
• Lessons learned register
• Risk register
• Stakeholder register
 Manage stake holder engagement : T & T

• Expert judgment
• Communication skills
– Feed back
• Inter personal and team skills
– Conflict management
– Cultural awareness
– Negotiation
– Observation / Conversation
– Political awareness
• Ground rules
• Meetings
 Project communication management
• Includes processes needed to ensure that the
information requirements of the project and its
stakeholders are met through development of
artifacts and implementation of activities designed
to achieve effective information exchange.

• Processes :-
• 1. Plan communication management.
• 2. Manage communication.
• 3. Monitor communication.
 Project communication management

• Mechanisms by which information is exchanged :-

– Written form : Either physical or electronic
– Spoken : Either face to face or remote
– Formal or informal : ( as in formal papers or social media )
– Through gestures : tone of voice and facial expression
– Through media : Pictures, actions.
 Project communication management
• Communication activities have may dimensions :-
– Internal
– External
– Formal : Reports, formal meetings, meeting agendas and
MOM, Stake holder briefings and presentations.
– Informal : General communications using emails , social media,
websites, and informal ad hoc discussions.
– Hierarchical focus:
• Upwards
• Down wards
• Horizontal
– Official
– Unofficial
– Written and oral : Verbal ( words and voice inflections ) and
non verbal ( Body language and actions)
 Project communication management

• Communication skills :
– Listening actively
– Awareness of cultural and personal differences.
– Identifying , setting, and managing stake holder
expectations.
– Enhancement of skills :
• Persuading a person , a team or an organization to perform an
action.
• Motivating people and providing encouragement or re assurance
• Coaching to improve performance and achieve desired results
• Negotiating to achieve mutually acceptable agreements between
parties and reduce approval or decision delays.
• Resolving conflict to prevent disruptive impacts.
Project communication management
 Communications
• Push type
• Pull type
• Interactive type
• No of communication channels= (N)*(N-1)/2

• Communication model:
– Sender ---- encodes ---massage --- encodes ---
receiver
– Receiver –encodes ---massage (feed
back/acknowledge) --decodes –sender.
 Communications
• Words carry around 10% of the intent
• Vocal tones, 20%
• Body language 70%

• An efficient project manager spends 90% of

his / her time in communication
 Plan communication management
• Is the process of developing an appropriate
approach and plan for project communication
activities based on the information requirements of
each stake holder or group , available organizational
assets, and the requirements of the project.
 Plan communication management
• In puts: • Out puts:
– Project charter – Communication
– Project management management plan
plan – Project management
• Resource management plan updates
plan • Stakeholder engagement
• Stake holder engagement plan
plan – Project documents
– Project documents updates
• Stakeholder register • Project schedule
• Requirements • Stake holder register
documentation
– EEF’s
– OPA’s
 Plan communication management: T & T
• Expert judgment
• Communication requirements analysis
• Communication technology
• Communication models
• Communication methods
• Inter personal and team skills
– Communication styles assessment
– Political awareness
– Cultural awareness
• Data representation :
– Stake holder assessment matrix
• meetings
 Plan communication management
• Communication management plan:
– Stakeholder communication requirements
– Information to be communicated, including language, format,
content, level of details
– Reason for the distribution of that information
– Time frame and frequency for the distribution, receipt of
acknowledge of the information
– Person responsible for communicating the information
– Person or group who will receive the information
– Methods and technologies used for communication , ( memos, e-
mails, / press release etc )
– Resources allocated for communication activities, including time and
budget
– Escalation process identifying time frames and the management
chain, for escalation of issues that cannot be resolved at a lower staff
level
– Glossary for common terminology, flow charts, communication
constraints ( specific legislation, regulation, organization policies etc)
 Manage communication
• Is the process of ensuring timely and appropriate
collection, creation, distribution, storage, retrieval ,
management, and the ultimate disposition of
project information.
 Manage communication
• Inputs:
– Project management plan
• Resource management plan
• Communication management
plan
• Stakeholder engagement plan
– Project documents
• Change log
• Issue log
• Lessons learned register
• Quality report
• Risk report
• Stake holder register
– Work performance reports
– EEF,s
– OPA’s
• Out puts:
– Project communications
– Project management plan
updates
• Communication management
plan
• Stake holder engagement
plan
– Project documents updates
• Issue log
• Lessons learned register
• Project schedule
• Risk register
• Stake holder register
– OPA’s updates
 Manage communication: T & T
• Communication technology
• Communication methods
• Communication skills
– Communication competence
– Feed back
– Non verbal
– Presentations
• Project management information system
• Project reporting
• Interpersonal and team skills
– Active listening
– Conflict management
– Cultural awareness
– Meeting management
– Net working
– Political awareness
• Meetings
 Monitor communications

• Is the process of ensuring the information requirements

of the project and its stake holders are met.
 Monitor communications
• In puts: • Out puts:
– Project management plan – Work performance
• Resource management information
plan – Change requests
• Communications
– Project management plan
management plan
updates
• Stakeholder engagement
plan • Communications
management plan
– Project documents
• Stake holder engagement
• Issue log plan
• Lessons learned register
– Project document updates
• Project communications
• Issue log
– Work performance data • Lessons learned register
– EEF’s • Stake holder register
– OPA’a
 Monitor communications: T & T

• Expert judgment
• Project management information system
• Data analysis
– Stake holder engagement assessment matrix
• Inter personal and team skills
• Observations / Conversations
• Meetings
 CONSTRUCTIVE & DESTRUCIVE TEAM
ROLES
• Constructive team roles:
• Initiator.
• Information seeker.
• Information giver.
• Encourager.
• Clarifier.
• Harmonizer.
• Summerizer.
• Gate keeper.
CONSTRUCTIVE & DESTRUCIVE TEAM
ROLES
• Destructive team roles:
• Aggressor.
• Blocker.
• Withdrawer.
• Recognition seeker.
• Topic jumper.
• Dominator.
• Devil’s advocate.
 Project communication
management

• THE BIGGEST COMMUNICATION PROBLEM IS:

– WE DO NOT LISTEN TO UNDERSTAND.
– WE LISTEN TO REPLY.
 Project procurement management
• Includes processes required to purchase or acquire
products, services or results required from out side the
project team.

• It includes the management and control processes

required to develop and administer agreements such as
contracts, purchase orders, memoranda of agreements (
MOA’s), or internal service agreements (SLA’s).

• The personnel authorized to procure goods and /or

services needed for the project may be the members of
the project team, or purchasing department of the
organization.
 Project procurement management

• Processes are :
– 1. Plan procurement management.
– 2. Conduct procurements
– 3. Control procurements.
 Plan procurement management

• Is the process of documenting project procurement

decisions, specifying the approach, and identifying
potential sellers.
 Plan procurement management
• Inputs
– Project charter
– Business documents
• Business case
• Benefits management plan
– Project management plan
• Scope management plan
• Quality management plan
• Resource management plan
• Scope base line
– Project documents
• Mile stone list
• Project team assignments
• Requirements documentation
• Requirements traceability matrix
• Resource requirements
• Risk register
• Stake holder register
– EEF”s
– OPA’s
• Out puts:
– Procurement management plan
– Procurement strategy
– Bid documents
– Procurement statement of work
– Source selection criteria
– Make or buy decisions
– Independent cost estimates
– Change requests
– Project document updates
• Lessons learned register
• Mile stone list
• Requirements documentation
• Requirements trace ability matrix
• Risk register
• Stake holder register
– OPA’s updates
 Plan procurement management: T & T

• Expert judgment
• Data gathering
– Market research
• Make or buy analysis
• Source selection analysis
• Meetings
 Procurement management plan
• How procurement will be coordinated with other project
aspects such as project schedule development and control
processes.
• Time table for key procurement activities.
• Procurement metrics to be used to manage contracts.
• Stakeholder roles and responsibilities related to
procurements.
• Constraints and assumptions that could affect planned
procurements.
• The legal jurisdiction and currency in which payments will be
made.
• Determination of whether independent estimates will be
used.
• Risk management issues.
• Pre qualified sellers , if any, to be used.
 Types of contracts
• Pre-approved seller’s list.
• Formal procurement policies, procedures, and guide
lines.
• Contract types:-
– Fixed types contracts:
• Firm fixed price
• Fixed price incentive fee
• Fixed price with economic price adjustments
– Cost – reimbursable contracts
• Cost plus fixed fee.
• Cost plus incentive fee
• Cost plus award fee
– Time and materials
Procurement strategy and Bid documents
• Procurement strategy:
– Delivery methods.
– Contract payment types.
– Procurement phases.

• Bid documents:
– RFI : request for information.
– RFQ: request for quotation.
– RFP : request for proposal.
 Fixed price with incentive fee
• A buyer has negotiated a fixed price incentive contract
with a seller.
• The contract has a target cost of $200,000, and target
profit of $40,000 and a target price of $240,000.
• Sharing ratio of 80:20.
• If the seller completes the contract with the actual costs
of $180,000, how much profit will the buyer pay the
seller?

– $200,000- $180,000= $20,000

– (0.20)*($40,000)= $8000
– $40,000+$8000=$48,000
 Conduct procurements

• Is the process of obtaining seller responses ,

selecting a seller, and awarding contract.
 Conduct procurements
• In puts:
• Project management plan
– Requirements management plan
– Communication management plan
– Risk management plan
– Procurement management plan
– Cost base line
• Project documents
– Lessons learned register
– Project schedule
– Requirements documentation
– Risk register
– Stake holder register
• Procurements documentation
• Seller proposal
• EEF’S
• OPA’s
• Out puts:
– Selected seller
– Agreements
– Change requests
– Project management updates
• Requirements management plan
• Quality management plan
• Communication management plan
• Risk management plan
• Procurement management plan
• Scope base line.
• Schedule base line
• Cost base line
– Project documents updates
• Lessons learned register
• Requirements documentation
• Requirements traceability matrix
• Resource calendars
• Risk register
• Stake holder register
– OPA’s updates
 Conduct procurements: T & T

• Expert judgment
• Advertising
• Bidder’s conferences
– Data analysis
• Proposal evaluation
• Inter personal and team skills
– Negotiation
 Control procurements
• Is the process of managing procurement relation
ships , monitoring contract performances and
making changes , and corrections as appropriate
and closing out contracts.
 Control procurements
• In puts:
– Project management plan
• Requirements management plan
• Procurements management plan
• Change management plan
• Schedule base line
– Project documents
• Assumption log
• Lessons learned register
• Mile stone list
• Quality reports
• Requirements documentation
• Requirements traceability matrix
• Risk register
• Stake holder register
– Agreements
– Procurement documentation
– Approved change requests
– Work performance data
– EEF’s
– OPA’s
• Out puts:
– Closed procurements
– Work performance information
– Procurement documentation
updates
– Change requests
• Project management plan
updates:
• Risk management plan
• Procurement management plan
• Schedule base line
• Cost base line
• Project document updates
– Lessons learned register
– Resource requirements
– Requirements traceability matrix
– Risk register
– Stake holder register
• OPA’s updates
 Control procurements : T & T

• Expert judgment
• Claims administration
• Data analysis
– Performance reviews
– Earned value analysis
– Trend analysis
• Inspection
• Audits