Project Management CSC 310 Spring 2017 Howard Rosenthal

Transcription

1 Project Management CSC 310 Spring 2017 Howard Rosenthal 1

2 No?ce This course is based on and includes material from the text: Effective Project Management - Traditional, Agile, Extreme 7TH Edition Authors: Robert K. Wysocki Publisher: Wiley ISBN: , Copyright 2014 The course includes and intersperses some materials, most often diagrams, provided by Mr. Wysocki s PowerPoint slides, at the website: It also utilizes general information and figures from the PMBOK: A Guide to the Project Management Body of Knowledge (PMBOK 5 TH Edition) Publisher: Project Management Institute ISBN: , Copyright 2013 It also utilizes: A User s Manual to the PMBOK Guide Fifth Edition, Snyder, Cynthia John Wiley and Sons, 2013 ISBN: 978_1_118_43107_8 2

3 Lesson Goals Define some key terms Understand what is meant by the Project Management Plan Understand what the Process Groups, Knowledge Areas and processes of Project Management as defined by the Project Management Institute Understand the relationships and flows between the process groups 3

4 Terms and General Principles 4

5 Key Facts and Terms Common Inputs (1) There are a number of different types of inputs to any project that are not a part of the project itself Enterprise Environmental Factors Company s organizational structure Organization s values and work ethic Laws and regulations governing your work There are differences between digging an oil well and writing software Stakeholder characteristics willingness to accept risk, etc. Current marketplace conditions Level of risk each of the stakeholders is willing to accept 5

6 Key Facts and Terms Common Inputs (2) Organizational Process Assets Templates for common documents Shows how the company wants it done You can tailor and improve but don t need to start from scratch Organizational policies and procedures for areas including risk, financial reporting, change control, etc. Historical databases on project performance, productivity, etc. Allows for better estimations in schedule, staffing, costs, etc. Includes lessons learned Infrastructure of hardware and software tools including any proprietary assets 6

7 Key Facts and Terms Common Tools Expert Judgment Use experience from the company or outside experts in the planning and execution of the program Project Management Information System (PMIS) An automated system to support the project manager Plans and optimizes scheduling Tracks progress and products Interfaces to other systems such as accounting Includes a Change Control Management System Includes a Configuration Management System Versions, products, branches Understands what may be delivered in each integrated system 7

8 Key Facts and Terms Common Outputs Change Requests Scope Delivery date Budget Quality standard Lead to changes in the Project Plan Changes usually related to one or more of the following Bring future results back in line with the plan Preventive actions to avoid a problem Defect repair Updates to any of the plans 8

9 Key Facts and Terms Project Management Plan (1) The Project Management Plan is the document that describes how the project will be executed, monitored, and controlled. It integrates and consolidates all of the subsidiary plans and baselines from the planning processes. Project baselines include, but are not limited to: Scope baseline Schedule baseline Cost baseline Subsidiary plans include, but are not limited to: Scope Management Plan Requirements Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Human Resource Management Plan Communications Management Plan Risk management Plan Procurement Management Plan Stakeholder Management Plan Change Management Plan that documents how changes will be monitored and controlled Configuration Management Plan that documents how configuration management will be performed 9

10 Key Facts and Terms Project Management Plan (2) The Project Management Plan may also include the following: Life cycle selected for the project and the processes that will be applied to each phase; Details of the tailoring decisions specified by the project management team as follows: Project management processes selected by the project management team, Level of implementation for each selected process, Descriptions of the tools and techniques to be used for accomplishing those processes, and Description of how the selected processes will be used to manage the specific project, including the dependencies and interactions among those processes and the essential inputs and outputs. Description of how work will be executed to accomplish the project objectives; Configuration Management Plan that documents how configuration management will be performed; Description of how the integrity of the project baselines will be maintained; Requirements and techniques for communication among stakeholders; and Key management reviews for content, the extent of, and timing to address, open issues and pending decisions. 10

11 Project Management Process Groups Knowledge Areas Initiating Process Group Planning Process Group Executing Process Group Monitoring and Controlling Process Group Closing Process Group Project Management Process Groups and Knowledge Areas 4. Project Integration Management 5. Project Scope Management 4.1 Develop Project Charter 4.2 Develop Project Management Plan 5.1 Plan Scope Management 5.2 Collect Requirements 5.3 Define Scope 5.4 Create WBS 4.3 Direct and Manage Project Work 4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.5 Validate Scope 5.6 Control Scope 4.6 Close Project or Phase 6. Project Time Management 6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources 6.5 Estimate Activity Durations 6.6 Develop Schedule 6.7 Control Schedule 7. Project Cost Management 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget 7.4 Control Costs 8. Project Quality Management 8.1 Plan Quality Management 8.2 Perform Quality Assurance 8.3 Control Quality 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 Communications Management 10.1 Plan Communications Management 10.2 Manage Communications 10.3 Control Communications 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 11.6 Control Risks 12. Project Procurement Management 12.1 Plan Procurement Management 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements 13. Project Stakeholder Management 13.1 Identify Stakeholders 13.2 Plan Stakeholder Management 13.3 Manage Stakeholder Engagement 13.4 Control Stakeholder Engagement PMBOK Table

12 Process Groups and Knowledge Areas There are 5 Process Groups and 10 Knowledge Areas (see preceding figure) There are a total of 47 different processes spread over these 5 Process Groups As we execute any PMLC all 5 Process groups are included However, depending on the project characteristics there will be significant tailoring in the actual execution of the project management Remember the management processes are different from the processes done in performing the work Designing a website or a database has its own internal processes for creating the product In this section I will be using the terms Initiating and Executing for Process Groups instead of Scoping and Launching (which are the author s terms Why? There is a Project Scope Management Knowledge Area and we don t want to overload the term Before discussing each of the processes, we begin with a discussion of some of the common terms that will be used throughout the remainder of this course 12

13 An Overview 13

14 The Ini?a?ng Process Group The Initiating Process Group consists of those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase. Initiation can be performed more than once on projects, if authorization is required to move to a new iteration or increment Initiating processes are used to Authorize funding for the project Gain understanding of a project at a high level Identify a project manager and authorize him or her to apply organizational resources to the project. Identify key stakeholders and their characteristics and document them in a Stakeholder Register. Identify the clear business need(s) for the project Projects can be authorized by various methods. Sometimes a portfolio steering committee authorizes projects. Some organizations use the Project Management Office (PMO) to prioritize and authorize them. In other organizations, it is the project sponsor who has the authority to initiate a project. Even after winning an RFP you still go through this process Poor project initiation can lead to Lessened project manager authority Unclear goals and uncertainty about where the project is going 14

15 The Planning Process Group (1) The Planning Process Group consists of those processes required to establish the scope of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve. Much of what managers do on a day-to-day basis is planning. Of course, a good deal of planning happens at the beginning of a project, but planning continues throughout the course of the project as well. 15

16 The Planning Process Group (2) The Planning Process Group includes all processes related to answering two questions: What will you do? and How will you do it? These processes include: Defining all of the work of the project Estimating how long it will take to complete the work Estimating the resources required to complete the work Estimating the total cost of the work Sequencing the work Building the initial project schedule Analyzing and adjusting the project schedule Writing a Risk Management Plan Documenting the Project Plan Includes all component plans as previously described Gaining senior management approval to execute/launch the project 16

17 Progressive Elabora?on In Planning Progressive Elaboration The iterative process of increasing the level of detail in a Project Management Plan as greater amounts of information and more accurate estimates become available. Rolling Wave Planning The iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level. This type of planning is typical, even on traditional projects 17

18 Planning Loops Planning processes will overlap and interact throughout the project in many different ways There are certain planning processes that by their nature create planning loops that go through several iterations before they are ready to be baselined Developing a project management plan and the subsidiary plans that are part of it creates a loop that allows for continual update and refinement Planning will continue throughout the project Planning is integrative in nature It is based on many factors, some of which change over time 18

19 The Execu?ng Process Group The Executing Process Group consists of those processes performed to complete the work defined in the project management plan to satisfy the project specification. These processes include: Implementing the project methodology and following the project lifecycle Integrating work from all executing processes Directing and managing all product work Performing quality assurance Staffing, developing and and managing the project team Creating deliverables that meet project requirements Managing project communications Generating information about project status Procuring and utilizing resource materials, supplies, and equipment Collecting lessons learned and continuously improving the team s processes Managing stakeholder engagement 19

20 The Monitoring and Control Process Group The Monitoring and Control Process Group consists of those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. These processes include: Comparing planned results with actual results Analyzing variances Providing forecasts Reporting performance Assessing overall project performance Validate and control scope Control costs Control quality Ensuring deliverables are correct Control communications Integrating approved changes into the Project Management Plan and the project documents Determining if action is needed, and what the right action is Ensuring approved changes are implemented correctly Managing risks and implementing responses Control procurements Control stakeholder engagement 20

21 The Closing Process Group The Closing Group consists of those processes performed to finalize all activities across all the Project Management Process Groups to formally close the project or phase. These processes include: Obtaining formal acceptance of all deliverables Comparing final project results to the project objectives, product requirements, and the scope, schedule, and cost baselines Conducting a lessons learned session, or series of sessions, documenting the results, and distributing them as indicated in the Communication Management Plan Releasing project resources Transitioning the final product Organizing and archiving all project documentation Closing out all procurements Closing out all contracts Acknowledging the team and celebrating success 21

22 Project Management Process Group Interac?on 22 Initiating Process Group Monitoring and Controlling Process Group Planning Process Group Executing Process Group Closing Process Group Project Initiator or Sponsor Enterprise/ Organization Customer Sellers NOTE: Project Documents PMBOK Figure 3-3

23 An Overview 23

24 Project Integra?on Management (1) The Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups. In the project management context, integration includes characteristics of unification, consolidation, communication, and integrative actions that are crucial to controlled project execution through completion, successfully managing stakeholder expectations, and meeting requirements. Project Integration Management includes Making choices about resource allocation Making trade-offs among competing objectives and alternatives Managing the interdependencies among the project management Knowledge Areas. 24

25 Project Integra?on Management (2) Integration Management is necessary in situations where individual processes interact. A cost estimate needed for a contingency plan involves integrating the processes in the Project Cost, Time, and Risk Management Knowledge Areas. When additional risks associated with various staffing alternatives are identified, then one or more of those processes may be revisited. The project deliverables may also need integrating with ongoing operations of the performing organization, the requesting organization, and with the long-term strategic planning that takes future problems and opportunities into consideration. Integration Management also includes the activities needed to manage project documents to ensure consistency with the project management plan and product, service, or capability deliverables. The integrative nature of projects and project management can be understood by thinking of other types of activities performed while completing a project such as: Develop, review, analyze, and understand the scope. This includes the project and product requirements, criteria, assumptions, constraints, and other influences related to a project, and how each will be managed or addressed within the project; Transform the collected project information into a Project Management Plan using a structured approach as described in the PMBOK Guide; Perform activities to produce project deliverables; and Measure and monitor the project s progress and take appropriate action to meet project objectives. Remember, the links among the processes in the Project Management Process Groups are often iterative in nature. For example, the Planning Process Group provides the Executing Process Group with a documented Project Management Plan early in the project and then updates the Project Management Plan if changes occur as the project progresses. 25

26 Project Integra?on Management - Processes There are six processes defined under Integration Management 4.1 Develop Project Charter The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities 4.2 Develop Project Management Plan The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive Project Management Plan. The project s integrated baselines and subsidiary plans may be included within the Project Management Plan 4.3 Direct and Manage Project Work The process of leading and performing the work defined in the Project Management Plan and implementing approved changes to achieve the project s objectives 4.4 Monitor and Control Project Work The process of tracking, reviewing, and reporting project progress against the performance objectives defined in the Project Management Plan 4.5 Perform Integrated Change Control The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the Project Management Plan; and communicating their disposition 4.6 Close Project or Phase The process of finalizing all activities across all of the Project Management Process Groups to formally complete the phase or project 26

27 Project Integra?on Management Overview Project Integration Management Overview 4.1 Develop Project Charter 4.2 Develop Project Management Plan 4.3 Direct and Manage Project Work.1 Inputs.1 Project statement of work.2 Business case.3 Agreements.4 Enterprise environmental factors.5 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Facilitation techniques.3 Outputs.1 Project charter 4.4 Monitor and Control Project Work.1 Inputs.1 Project charter.2 Outputs from other processes.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Facilitation techniques.3 Outputs.1 Project management plan 4.5 Perform Integrated Change Control.1 Inputs.1 Project management plan.2 Approved change requests.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Project management information system.3 Meetings.3 Outputs.1 Deliverables.2 Work performance data.3 Change requests.4 Project management plan updates.5 Project documents updates.1 Inputs.1 Project management plan.2 Schedule forecasts.3 Cost forecasts.4 Validated changes.5 Work performance information.6 Enterprise environmental factors.7 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Project management information system.4 Meetings.3 Outputs.1 Change requests.2 Work performance reports.3 Project management plan updates.4 Project documents updates.1 Inputs.1 Project management plan.2 Work performance reports.3 Change requests.4 Enterprise environmental factors.5 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Meetings.3 Change control tools.3 Outputs.1 Approved change requests.2 Change log.3 Project management plan updates.4 Project documents updates 4.6 Close Project or Phase.1 Inputs.1 Project management plan.2 Accepted deliverables.3 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings.3 Outputs.1 Final product, service, or result transition.2 Organizational process assets updates PMBOK Figure

28 Project Scope Management (1) In the project context, the term scope can refer to: Product scope The features and functions that characterize a product, service, or result Project scope The work performed to deliver a product, service, or result with the specified features and functions. The term project scope is sometimes viewed as including product scope 28

29 Project Scope Management (2) 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 primarily concerned with defining and controlling what is and is not included in the project. The processes used to manage project scope, as well as the supporting tools and techniques, can vary by project. The Scope Baseline for the project is the approved version of: The Project Scope Statement The Work Breakdown Structure (WBS), and its associated WBS dictionary. A baseline can be changed only through formal change control procedures and is used as a basis for comparison while performing Validate Scope and Control Scope processes as well as other controlling processes. 29

30 Project Scope Management - Processes Project Scope Management has six processes 5.1 Plan Scope Management The process of creating a Scope Management Plan that documents how the project scope will be defined, validated, and controlled 5.2 Collect Requirement The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives 5.3 Define Scope The process of developing a detailed description of the project and product. 5.4 Create WBS The process of subdividing project deliverables and project work into smaller, more manageable components 5.5 Validate Scope The process of formalizing acceptance of the completed project deliverables 5.6 Control Scope The process of monitoring the status of the project and product scope and managing changes to the scope baseline These processes interact with each other and with processes in other Knowledge Areas 30

31 Project Scope Management Overview Project Scope Management Overview 5.1 Plan Scope Management.1 Inputs.1 Project management plan.2 Project charter.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Meetings.3 Outputs.1 Scope management plan.2 Requirements management plan 5.4 Create WBS.1 Inputs.1 Scope management plan.2 Project scope statement.3 Requirements documentation.4 Enterprise environmental factors.5 Organizational process assets.2 Tools & Techniques.1 Decomposition.2 Expert judgment.3 Outputs.1 Scope baseline.2 Project documents updates 5.2 Collect Requirements.1 Inputs.1 Scope management plan.2 Requirements management plan.3 Stakeholder management plan.4 Project charter.5 Stakeholder register.2 Tools & Techniques.1 Interviews.2 Focus groups.3 Facilitated workshops.4 Group creativity techniques.5 Group decision-making techniques.6 Questionnaires and surveys.7 Observations.8 Prototypes.9 Benchmarking.10 Context diagrams.11 Document analysis.3 Outputs.1 Requirements documentation.2 Requirements traceability matrix 5.5 Validate Scope.1 Inputs.1 Project management plan.2 Requirements documentation.3 Requirements traceability matrix.4 Verified deliverables.5 Work performance data.2 Tools & Techniques.1 Inspection.2 Group decision-making techniques 5.3 Define Scope.1 Inputs.1 Scope management plan.2 Project charter.3 Requirements documentation.4 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Product analysis.3 Alternatives generation.4 Facilitated workshops.3 Outputs.1 Project scope statement.2 Project documents updates 5.6 Control Scope.1 Inputs.1 Project management plan.2 Requirements documentation.3 Requirements traceability matrix.4 Work performance data.5 Organizational process assets.2 Tools & Techniques.1 Variance analysis.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan updates.4 Project documents updates.5 Organizational process assets updates.3 Outputs.1 Accepted deliverables.2 Change requests.3 Work performance information.4 Project documents updates PMBOK Figure

32 Project Time Management (1) The Project Time Management processes and their associated tools and techniques are documented in the Schedule Management Plan. The Schedule Management Plan is a subsidiary plan of, and integrated with, the project management plan through the Develop Project Management Plan process The Schedule Management Plan identifies a scheduling method and scheduling tool, and sets the format and establishes criteria for developing and controlling the project schedule. The selected scheduling method defines the framework and algorithms used in the scheduling tool to create the schedule model. Some of the better known scheduling methods include critical path method (CPM) and critical chain method (CCM). A schedule model is a representation of the plan for executing the project s activities including durations, dependencies, and other planning information, used to produce project schedules along with other scheduling artifacts Distinguishing the project schedule presentation from the schedule data and calculations that produce the project schedule is practiced by referring to the scheduling tool populated with project data as the schedule model. 32

33 Project Time Management (2) Project schedule development uses the outputs from the processes to Define activities Sequence activities Estimate activity resources Estimate activity durations in combination with the scheduling tool to produce the schedule model. The finalized and approved schedule is the baseline that will be used in the Control Schedule process As the project activities are being performed, the majority of effort in the Project Time Management Knowledge Area will occur in the Control Schedule process to ensure completion of project work in a timely manner On some projects, especially those of smaller scope, defining activities, sequencing activities, estimating activity resources, estimating activity durations, and developing the schedule model are so tightly linked that they are viewed as a single process that can be performed by a person over a relatively short period of time. These PMI separates processes are presented as distinct elements because the tools and techniques for each process are different. 33

34 Project Time Management The Scheduling Tool The Scheduling tool describes the manual or automated tool used to develop a schedule You can use a sticky pad as a tool, a word processor application, a spreadsheet, or software designed specifically for scheduling Schedule data refers to the information regarding the activities, sequences, resources, duration estimates, calendars, constraints, milestones, etc. A scheduling methodology is a set of rules and assumptions used in scheduling for example, critical path or critical chain methodology Combining the scheduling methodology, scheduling tool, and schedule data gives you a schedule model. Remember, the model is only as good as the input data 34

35 Project Time Management Scheduling Overview Project Specific Data (e.g., WBS, activities, resources, durations, dependencies, constraints, calendars, milestones lags, etc.) Scheduling Method Scheduling Tool Schedule Model Project Information For example, CPM Generates Output Project Schedule Examples of Project Schedule Presentations Network Diagram Activity List Bar Chart PMBOK Figure

36 Project Time Management - Processes Project Time Management has seven processes 6.1 Plan Schedule Management The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule 6.2 Define Activities The process of identifying and documenting the specifications to be performed to produce the project deliverables 6.3 Sequence Activities The process of identifying and documenting relationships among the project activities 6.4 Estimate Activity Resources The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity 6.5 Estimate Activity Durations The process of estimating the number of work periods needed to complete individual activities with estimated resources 6.6 Develop Schedule The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model 6.7 Control Schedule The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan 36

37 Project Time Management Overview Project Time Management Overview 6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources.1 Inputs.1 Project management plan.2 Project charter.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings.3 Outputs.1 Schedule management plan 6.5 Estimate Activity Durations.1 Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Activity resource requirements.5 Resource calendars.6 Project scope statement.7 Risk register.8 Resource breakdown structure.9 Enterprise environmental factors.10 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Three-point estimating.5 Group decision-making techniques.6 Reserve analysis.3 Outputs.1 Activity duration estimates.2 Project documents updates.1 Inputs.1 Schedule management plan.2 Scope baseline.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Decomposition.2 Rolling wave planning.3 Expert judgment.3 Outputs.1 Activity list.2 Activity attributes.3 Milestone list 6.6 Develop Schedule.1 Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Project schedule network diagrams.5 Activity resource requirements.6 Resource calendars.7 Activity duration estimates.8 Project scope statement.9 Risk register.10 Project staff assignments.11 Resource breakdown structure.12 Enterprise environmental factors.13 Organizational process assets.2 Tools & Techniques.1 Schedule network analysis.2 Critical path method.3 Critical chain method.4 Resource optimization techniques.5 Modeling techniques.6 Leads and lags.7 Schedule compression.8 Scheduling tool.3 Outputs.1 Schedule baseline.2 Project schedule.3 Schedule data.4 Project calendars.5 Project management plan updates.6 Project documents updates.1 Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Milestone list.5 Project scope statement.6 Enterprise environmental factors.7 Organizational process assets.2 Tools & Techniques.1 Precedence diagramming method (PDM).2 Dependency determination.3 Leads and lags.3 Outputs.1 Project schedule network diagrams.2 Project documents updates 6.7 Control Schedule.1 Inputs.1 Project management plan.2 Project schedule.3 Work performance data.4 Project calendars.5 Schedule data.6 Organizational process assets.2 Tools & Techniques.1 Performance reviews.2 Project management software.3 Resource optimization techniques.4 Modeling techniques.5 Leads and lags.6 Schedule compression.7 Scheduling tool.3 Outputs.1 Work performance information.2 Schedule forecasts.3 Change requests.4 Project management plan updates.5 Project documents updates.6 Organizational process assets updates.1 Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Resource calendars.5 Risk register.6 Activity cost estimates.7 Enterprise environmental factors.8 Organizational process assets.2 Tools & Techniques.1 Expert judgment.2 Alternative analysis.3 Published estimating data.4 Bottom-up estimating.5 Project management software.3 Outputs.1 Activity resource requirements.2 Resource breakdown structure.3 Project documents updates PMBOK Figure

38 Project Cost Management (1) Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget Cost estimates are developed for cost categories and work breakdown structure (WBS) elements and are then applied across the schedule to develop a funding curve and a cost baseline. The cost management processes can also analyze costing options by weighing the lifecycle cost of investing more in the project development in order to have a lower cost in maintaining the product, or investing less up front and having to spend more on maintenance and up keep. Along with the project schedule the project budget is one of the most important documents in the project. 38

39 Project Cost Management (2) Project Cost Management must consider the stakeholder requirements for managing costs. Different stakeholders will measure project costs in different ways and at different times. For example, the cost of an acquired item may be measured when the acquisition decision is made or committed, the order is placed, the item is delivered, or the actual cost is incurred or recorded for project accounting purposes. Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities. It should also consider the effect of project decisions on the subsequent recurring cost of using, maintaining, and supporting the product, service, or result of the project. For example, limiting the number of design reviews can reduce the cost of the project but could increase the resulting product s operating costs. The cost management planning effort occurs early in project planning and sets the framework for each of the cost management processes so that performance of the processes will be efficient and coordinated. 39

40 Project Cost Management (3) Financial Performance Measurement In many organizations, predicting and analyzing the prospective financial performance of the project s product is performed outside of the project. This is especially true during the development of commercial products This means that marketing research, pricing strategies, product rollout, etc. may be performed outside the purview of the Project Manager For other projects, such as a capital facilities project, Project Cost Management can include this work. When such predictions and analyses are included, Project Cost Management may address additional processes and numerous general financial management techniques including but not limited to: Return on Investment Discounted cash flow Investment payback analysis 40

41 Project Cost Management - Processes Project Cost Management has four processes 7.1 Plan Cost Management The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs 7.2 Estimate Costs The process of developing an approximation of the monetary resources needed to complete project activities 7.3 Determine Budget The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline 7.4 Control Costs The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline 41

42 Project Cost Management Overview Project Cost Management Overview 7.1 Plan Cost Management.1 Inputs.1 Project management plan.2 Project charter.3 Enterprise environmental factors.4 Organizational process assets 2. Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings.3 Outputs.1 Cost management plan 7.4 Control Costs.1 Inputs.1 Project management plan.2 Project funding requirements.3 Work performance data.4 Organizational process assets.2 Tools & Techniques.1 Earned value management.2 Forecasting.3 To-complete performance index (TCPI).4 Performance reviews.5 Project management software.6 Reserve analysis 7.2 Estimate Costs.1 Inputs.1 Cost management plan.2 Human resource management plan.3 Scope baseline.4 Project schedule.5 Risk register.6 Enterprise environmental factors.7 Organizational process assets 2. Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point estimating.6 Reserve analysis.7 Cost of quality.8 Project management software.9 Vendor bid analysis.10 Group decision-making techniques.3 Outputs.1 Activity cost estimates.2 Basis of estimates.3 Project documents updates 7.3 Determine Budget.1 Inputs.1 Cost management plan.2 Scope baseline.3 Activity cost estimates.4 Basis of estimates.5 Project schedule.6 Resource calendars.7 Risk register.8 Agreements.9 Organizational process assets.2 Tools & Techniques.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationships.5 Funding limit reconciliation.3 Outputs.1 Cost baseline.2 Project funding requirements.3 Project documents updates.3 Outputs.1 Work performance information.2 Cost forecasts.3 Change requests.4 Project management plan updates.5 Project documents updates.6 Organizational process assets updates PMBOK Figure

43 Project Quality Management (1) Project Quality Management includes the 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 quality management is applied to the project and the product. Quality processes and tools and techniques for the product are industry and product specific Software quality is far different than pavement quality Quality processes and tools and techniques for the project can be applied to most projects the same way Both must be planned into the project to ensure the result meets the customer expectations and fulfills the project objectives Many quality metrics deal with faults and failures 43

44 Project Quality Management (2) Underlying assumptions of Quality Management Customer satisfaction is a key component of project success. Customer satisfaction can be described as conformance to requirements and fitness for use. It is better to plan quality in and prevent defects and errors from occurring rather than to find errors during the inspection process. The plan-do-check-act process as defined by Deming and Shewhart (to be discussed later) is the basis for quality improvement, but it is not explicitly identified in the quality processes. Much of the investment in quality comes from the organization. Quality processes and procedures, certifications, investment in proprietary quality methodologies (such as TQM or Six Sigma) are the responsibility of the organization. It is the responsibility of the project to follow those processes. 44

45 Project Quality Management (3) Some key terms Quality The degree to which a set of inherent characteristics fulfills requirements Quality as a delivered performance or result is the degree to which a set of inherent characteristics fulfill requirements (ISO 9000) Grade Grade as a design intent is a category assigned to deliverables having the same functional use but different technical characteristics A category or rank is used to distinguish items that have the same functional use (e.g., hammer ) but do not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force) It may not be a problem if a suitable low-grade software product (one with a limited number of features) is of high quality (no obvious defects, readable manual). In this example, the product would be appropriate for its general purpose of use. It may be a problem if a high-grade software product (one with numerous features) is of low quality (many defects, poorly organized user documentation). In essence, its high-grade feature set would prove ineffective and/or inefficient due to its low quality. 45

46 Project Quality Management (4) Precision Within the quality management system, precision is a measure of exactness For example, the magnitude for each increment on the measurement s number line is the interval that determines the measurement s precision the greater the number of increments, the greater the precision. Accuracy Within the quality management system, accuracy is an assessment of correctness For example, if the measured value of an item is very close to the true value of the characteristic being measured, the measurement is more accurate. Consider archery targets Arrows clustered tightly in one area of the target, even if they are not clustered in the bull s-eye, are considered to have high precision Targets where the arrows are more spread out but equidistant from the bull seye are considered to have the same degree of accuracy Targets where the arrows are both tightly grouped and within the bull s-eye are considered to be both accurate and precise Precise measurements are not necessarily accurate measurements, and accurate measurements are not necessarily precise measurements. The project management team should determine the appropriate levels of accuracy and precision for use in the quality management plan 46

47 ISO Quality Standards (1) Companies spend enormous amounts of money to get certified in various International Standards Organization (ISO) processes They also spend lots of money training and certifying employees and preparing for reviews In the context of achieving ISO compatibility, modern quality management approaches seek to minimize variation and to deliver results that meet defined requirements. These approaches recognize the importance of: Customer Satisfaction Understanding, evaluating, defining, and managing requirements so that customer expectations are met. This requires Conformance to requirements (to ensure the project produces what it was created to produce) Fitness for use (the product or service needs to satisfy the real needs) Prevention over inspection Quality should be planned, designed, and built into not inspected into the project s management or the project s deliverables. The cost of preventing mistakes is generally much less than the cost of correcting mistakes when they are found by inspection or during usage Continuous Improvement The PDCA (plan-do-check-act) cycle is the basis for quality improvement as defined by Shewhart and modified by Deming. In addition, quality improvement initiatives such as Total Quality Management (TQM), Six Sigma, and Lean Six Sigma could improve the quality of the project s management as well as the quality of the project s product Commonly used process improvement models include Malcolm Baldrige, Organizational Project Management Maturity Model (OPM3 ), and Capability Maturity Model Integrated (CMMI ) 47

48 ISO Quality Standards (2) Management Responsibility Success requires the participation of all members of the project team Nevertheless, management retains, within its responsibility for quality, a related responsibility to provide suitable resources at adequate capacities. Cost of Quality (coq) Cost of quality refers to the total cost of the conformance work and the nonconformance work that should be done as a compensatory effort because, on the first attempt to perform that work, the potential exists that some portion of the required work effort may be done or has been done incorrectly The costs for quality work may be incurred throughout the deliverable s life cycle Decisions made by the project team can impact the operational costs associated with using a completed deliverable. Post-project quality costs may be incurred because of product returns, warranty claims, and recall campaigns Because of the temporary nature of projects and the potential benefits that may be derived from reducing the post-project cost of quality, sponsoring organizations may choose to invest in product quality improvement These investments generally are made in the areas of conformance work that act to prevent defects or act to mitigate the costs of defects by inspecting out nonconforming units The issues related to post- project COQ should be the concern of program management and portfolio management such that project, program, and portfolio management offices should apply appropriate reviews, templates, and funding allocations for this purpose 48

49 The Seven Quality Tools (1) Cause & Effect Diagram Flowcharts Checksheets Pareto Diagrams Histograms Control Charts Scatter Diagrams PMBOK Figure 8-7 There are seven tools used in quality control 49

50 The Seven Quality Tools (2) Cause-and-effect Diagrams - also known as Fishbone or Ishikawa Diagrams The problem statement placed at the head of the fishbone is used as a starting point to trace the problem s source back to its actionable root cause. The problem statement typically describes the problem as a gap to be closed or as an objective to be achieved The causes are found by looking at the problem statement and asking why until the actionable root cause has been identified or until the reasonable possibilities on each fishbone have been exhausted Often prove useful in linking the undesirable effects seen as special variation to the assignable cause upon which project teams should implement corrective actions to eliminate the special variation detected in a control chart Flowcharts are referred to as Process Maps They display the sequence of steps and the branching possibilities that exist for a process that transforms one or more inputs into one or more outputs Flowcharts show the activities, decision points, branching loops, parallel paths, and the overall order of processing by mapping the operational details of procedures that exist within a horizontal value chain Flowcharts may prove useful in understanding and estimating the cost of quality in a process This is obtained by using the workflow branching logic and associated relative frequencies to estimate expected monetary value for the conformance and nonconformance work required to deliver the expected conforming output 50

51 The Seven Quality Tools (3) Checksheets - also known as tally sheets May be used as a checklist when gathering data Used to organize facts in a manner that will facilitate the effective collection of useful data about a potential quality problem They are especially useful for gathering attributes data while performing inspections to identify defects For example, data about the frequencies or consequences of defects collected in checksheets are often displayed using Pareto diagrams Pareto Diagrams A special form of vertical bar chart used to identify the vital few sources that are responsible for causing most of a problem s effects The categories shown on the horizontal axis exist as a valid probability distribution that accounts for 100% of the possible observations The relative frequencies of each specified cause listed on the horizontal axis decrease in magnitude until the default source named other accounts for any nonspecified causes Typically, the Pareto diagram will be organized into categories that measure either frequencies or consequences. 51

52 The Seven Quality Tools (4) Pareto Chart 52

53 The Seven Quality Tools (5) Histograms A special form of bar chart and are used to describe the central tendency, dispersion, and shape of a statistical distribution Unlike the control chart, the histogram does not consider the influence of time on the variation that exists within a distribution. Control Charts Used to determine whether or not a process is stable or has predictable performance Upper and lower specification limits are based on requirements of the agreement They reflect the maximum and minimum values allowed There may be penalties associated with exceeding the specification limits Upper and lower control limits are different from specification limits The control limits are determined using standard statistical calculations and principles to ultimately establish the natural capability for a stable process The project manager and appropriate stakeholders may use the statistically calculated control limits to identify the points at which corrective action will be taken to prevent unnatural performance. Although used most frequently to track repetitive activities required for producing manufactured lots, control charts may also be used to monitor cost and schedule variances, volume, and frequency of scope changes, or other management results to help determine if the project management processes are in control. Scatter Diagrams Plot ordered pairs (X, Y) and are sometimes called correlation charts because they seek to explain a change in the dependent variable, Y, in relationship to a change observed in the corresponding independent variable, X The direction of correlation may be proportional (positive correlation), inverse (negative correlation), or a pattern of correlation may not exist (zero correlation) If correlation can be established, a regression line can be calculated and used to estimate how a change to the independent variable will influence the value of the dependent variable 53

54 The Seven Quality Tools (6) Control Chart 54

55 The Seven Quality Tools (7) ScaUer Chart 55

56 Project Quality Management - Processes Project Quality Management has three processes 8.1 Plan Quality Management The process of identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements 8.2 Perform Quality Assurance The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used 8.3 Control Quality The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes 56

57 Project Quality Management Overview Project Quality Management Overview 8.1 Plan Quality Management.1 Inputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements documentation.5 Enterprise environmental factors.6 Organizational process assets.2 Tools & Techniques.1 Cost-benefit analysis.2 Cost of quality.3 Seven basic quality tools.4 Benchmarking.5 Design of experiments.6 Statistical sampling.7 Additional quality planning tools.8 Meetings.3 Outputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality checklists.5 Project documents updates 8.2 Perform Quality Assurance.1 Inputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality control measurements.5 Project documents.2 Tools & Techniques.1 Quality management and control tools.2 Quality audits.3 Process analysis.3 Outputs.1 Change requests.2 Project management plan updates.3 Project documents updates.4 Organizational process assets updates 8.3 Control Quality.1 Inputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process assets.2 Tools & Techniques.1 Seven basic quality tools.2 Statistical sampling.3 Inspection.4 Approved change requests review.3 Outputs.1 Quality control measurements.2 Validated changes.3 Validated deliverables.4 Work performance information.5 Change requests.6 Project management plan updates.7 Project documents updates.8 Organizational process assets updates Figure 8-1. Project Quality Management Overview PMBOK Figure

58 Project Human Resources Management (1) Project Human Resource Management includes the processes that organize, manage, and lead the project team The project team is comprised of the people with assigned roles and responsibilities for completing the project Project team members (also referred to as project staff) may have varied skill sets, may be assigned full or part-time, and may be added or removed from the team as the project progresses Although specific roles and responsibilities for the project team members are assigned, the involvement of all team members in project planning and decision making is beneficial Participation of team members during planning adds their expertise to the process and strengthens their commitment to the project I always asked my team members if they could stand behind the schedules that they developed 58

59 Project Human Resources Management (2) Human resource planning is used to determine and identify human resources with the necessary skills required for project success The Human Resource Management Plan describes How the roles and responsibilities, reporting relationships, and staffing management will be addressed and structured within a project Contains the Staffing Management Plan including Timetables for staff acquisition and release Identification of training needs Team-building strategies 4 motivational theories that can be applied Which one would you choose? McGregor s Theory of X and Y Maslow s Hierarchy of Needs David McClelland s Theory of Needs Herzberg s Theory of Hygiene Factors and Motivational Agents Plans for recognition and rewards programs Compliance considerations Safety issues Impact of the Staffing Management Plan on the organization Effective human resource planning should consider and plan for the availability of or competition for scarce resources Project roles can be designated for teams or team members Those teams or team members can be from inside or outside the organization performing the project Other projects may be competing for human resources with the same competencies or skill sets Given these factors, project costs, schedules, risks, quality, and other project areas may be significantly affected 59

60 McGregor s Theory of X and Y Douglas McGregor states that (his book The Human side of Enterprise ) people inside an organization can be managed in two ways. The first is which falls under the category negative X and the other one is positive Y. Under the assumptions of theory X: Employees inherently do not like work and whenever possible, will attempt to avoid it. Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals. Employees avoid responsibilities and do not work until formal directions are issued. Most workers place a greater importance on security over all other factors and display little ambition. Under the assumptions of theory Y Physical and mental effort at work is as natural as rest or play. People do exercise self-control and self-direction and if they are committed to those goals. Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the problems of the organization. People have potential. 60

61 The X Versus Y Manager 61

62 Maslow s Hierarchy of Needs (1) One of the most widely mentioned theories of motivation is the Hierarchy of Needs theory by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator. Needs can be categorized as: Physiological: These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction. Maslow believed that until these needs were satisfied to a degree to maintain life, no other motivating factors can work. Security or Safety: These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm. Social: Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for affection, acceptance and friendship. Esteem: According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention. Self-Actualization: Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming; it includes growth, achieving one s potential and self-fulfillment. It is to maximize one s potential and to accomplish something. 62

63 Maslow s Hierarchy of Needs (2) 63

64 David McClelland s Theory of Needs (1) David McClelland s achievement motivation theory states that a person has need for three things but people differ in degree in which the various needs influence their behavior Need for Power People whose need for power is socially oriented are effective leaders and should be allowed to manage others. These people like to organize and influence others. People who have a high need for power are inclined towards influence and control. Power seekers want power either to control other people (for their own goals) or to achieve higher goals (for the greater good). They seek neither recognition nor approval from others, only agreement and compliance Need for Affiliation These people work best when cooperating with others. They seek approval rather than recognition. Affiliation seekers look for harmonious relationships with other people. They will thus tend to conform and shy away from standing out. They are driven by love and faith. They like to build a friendly environment around themselves. Social recognition and affiliation with others provides them motivation. 64

65 David McClelland s Theory of Needs (2) Need for Achievement These people should be given projects that are challenging but are reachable. They like recognition They are driven by the challenge of success and the fear of failure. They are analytical in nature and take calculated risks. Such people are motivated to perform when they see at least some chances of success. Achievers seek to excel and appreciate frequent recognition of how well they are doing. They will avoid low risk activities that have no chance of gain. They also will avoid high risks where there is a significant chance of failure. 65

66 Herzberg s Theory of Hygiene Factors and Mo?va?onal Agents (1) Herzberg Distinguishes between hygiene factors and motivational agents. Hygiene Factors Working Conditions Salary Personal Life Relationship at work Security Status Company's policies and administration Job security Poor hygiene factors may destroy motivation, but improving them, under most circumstances, will not improve motivation. They do not lead to higher levels of motivation but dissatisfaction exists without them. Hygiene factors are not sufficient to motivate people. 66

67 Herzberg s Theory of Hygiene Factors and Mo?va?onal Agents (2) What motivates people is the working itself, including such things as: Responsibility Self-Actualization Professional Growth Recognition Preferably, the two approaches, hygiene and motivation, must be carried out simultaneously. Treat people so they obtain a minimum of dissatisfaction. Use people so they achieve, get recognition, grow and advance in their careers. Based on Maslow's Hierarchy, Herzberg theorized that the factors that motivate the worker or are likely to satisfy their needs, lead to positive job attitudes. 67

68 Project Human Resources Management - Processes Project Human Resources Management has four processes 9.1 Plan Human Resource Management The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a Staffing Management Plan What people you need, what they will do, and how they are organized to do it 9.2 Acquire Project Team The process of confirming human resource availability and obtaining the team necessary to complete project activities 9.3 Develop Project Team The process of improving competencies, team member interaction, and overall team environment to enhance project performance Need to develop ways for motivating people 9.4 Manage Project Team The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance 68

69 Project Human Resources Management Overview Project Human Resource Management Overview 9.1 Plan Human Resource Management.1 Inputs.1 Project management plan.2 Activity resource requirements.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Organization charts and position descriptions.2 Networking.3 Organizational theory.4 Expert judgment.5 Meetings.3 Outputs.1 Human resource management plan 9.2 Acquire Project Team.1 Inputs.1 Human resource management plan.2 Enterprise environmental factors.3 Organizational process assets.2 Tools & Techniques.1 Pre-assignment.2 Negotiation.3 Acquisition.4 Virtual teams.5 Multi-criteria decision analysis.3 Outputs.1 Project staff assignments.2 Resource calendars.3 Project management plan updates 9.3 Develop Project Team.1 Inputs.1 Human resource management plan.2 Project staff assignments.3 Resource calendars.2 Tools & Techniques.1 Interpersonal skills.2 Training.3 Team-building activities.4 Ground rules.5 Colocation.6 Recognition and rewards.7 Personnel assessment tools.3 Outputs.1 Team performance assessments.2 Enterprise environmental factors updates 9.4 Manage Project Team.1 Inputs.1 Human resource management plan.2 Project staff assignments.3 Team performance assessments.4 Issue log.5 Work performance reports.6 Organizational process assets.2 Tools & Techniques.1 Observation and conversation.2 Project performance appraisals.3 Conflict management.4 Interpersonal skills.3 Outputs.1 Change requests.2 Project management plan updates.3 Project documents updates.4 Enterprise environmental factors updates.5 Organizational process assets updates PMBOK Figure

70 Project Communica?ons Management (1) Project Communications Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information Project managers spend most of their time communicating with team members and other project stakeholders, whether they are internal (at all organizational levels) or external to the organization Effective communication creates a bridge between diverse stakeholders who may have different cultural and organizational backgrounds, different levels of expertise, and different perspectives and interests These can greatly impact or influence upon the project execution or outcome 70

71 Project Communica?ons Management (2) The communication activities involved in these processes may often have many potential dimensions that need to be considered, including, but not limited to: Internal (within the project) and external (customer, vendors, other projects, organizations, the public) Formal (reports, minutes, briefings) and informal ( s, memos, ad-hoc discussions) Vertical (up and down the organization) and horizontal (with peers) Official (newsletters, annual report) and unofficial (off the record communications) Written and oral, and verbal (voice inflections) and nonverbal (body language) As part of the Plan you define the frequency of communications for each type of communication Additional, ad hoc communications and meetings are often necessary Most communication skills are common for both general management and project management, such as, but not limited to: Listening actively and effectively Questioning and probing ideas and situations to ensure better understanding Educating to increase team s knowledge so that they can be more effective; Fact- finding to identify or confirm information Setting and managing expectations Persuading a person, a team, or an organization to perform an action Motivating to provide encouragement or reassurance Coaching to improve performance and achieve desired results Negotiating to achieve mutually acceptable agreements between parties Resolving conflict to prevent disruptive impacts Summarizing, recapping, and identifying the next steps 71

72 Project Communica?ons Management (3) While all projects share the need to communicate project information, the information needs and methods of distribution may vary widely The methods of storage, retrieval, and ultimate disposition of the project information need to be considered and appropriately documented during this process. Important considerations that may need to be taken into account include, but are not limited to: Who needs what information, and who is authorized to access that information What level of information is needed by different people Some personnel need to see draft documents, design, etc. Others may only needs high level summaries, financial reports, etc. When they will need the information Where the information should be stored What format the information should be stored in How the information can be retrieved Whether time zone, language barriers, and cross-cultural considerations need to be taken into account 72

73 Project Communica?ons Management - Processes Project Communications Management has three processes 10.1 Plan Communications Management The process of developing an appropriate approach and plan for project communications based on stakeholder s information needs and requirements, and available organizational assets Manage Communications The process of creating, collecting, distributing, storing, retrieving and the ultimate disposition of project information in accordance with the communications management plan 10.3 Control Communications The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met 73

74 Project Communica?ons Management Overview Project Communications Management Overview 10.1 Plan Communications Management.1 Inputs.1 Project management plan.2 Stakeholder register.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Communication requirements analysis.2 Communication technology.3 Communication models.4 Communication methods.5 Meetings.3 Outputs.1 Communications management plan.2 Project documents updates 10.2 Manage Communications.1 Inputs.1 Communications management plan.2 Work performance reports.3 Enterprise environmental factors.4 Organizational process assets.2 Tools & Techniques.1 Communication technology.2 Communication models.3 Communication methods.4 Information management systems.5 Performance reporting.3 Outputs.1 Project communications.3 Project management plan updates.2 Project documents updates.4 Organizational process assets updates 10.3 Control Communications.1 Inputs.1 Project management plan.2 Project communications.3 Issue log.4 Work performance data.5 Organizational process assets.2 Tools & Techniques.1 Information management systems.2 Expert judgment.3 Meetings.3 Outputs.1 Work performance information.2 Change requests.3 Project management plan updates.4 Project documents updates.5 Organizational process assets updates PMBOK Figure

75 Project Risk Management (1) Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project The objectives of project risk management are to increase the likelihood and impact of positive events, and decrease the likelihood and impact of negative events in the project Because projects are unique in nature, there is much more uncertainty in a project than there is in regular operations Risk is rooted in uncertainty the more uncertainty, the more risk Organizations have different perspectives about risk and how much risk they are willing to tolerate. Organizations may be willing to tolerate or accept a greater amount of financial risk if it will reduce the amount of quality or schedule risk. The risk tolerance for various project objectives is specific to the particular organization and the specific project 75

76 Project Risk Management (2) A few definitions Risk An uncertain event that, if it occurs, has a positive or negative effect on one or more project objectives Known risks are those that have been identified and analyzed, making it possible to plan responses for those risks. Known risks that cannot be managed proactively, should be assigned a contingency reserve Unknown risks cannot be managed proactively and therefore may be assigned a management reserve Opportunity A risk that would have a positive effect on one or more project objectives Risk Tolerance The degree, amount, or volume of risk that an organization or individual will withstand 76

77 Project Risk Management (3) A cause of risk may be a given or potential requirement, assumption, constraint, or condition that creates the possibility of negative or positive outcomes Causes could include the requirement of an environmental permit to do work, or having limited personnel assigned to design the project The risk is that the permitting agency may take longer than planned to issue a permit In the case of an opportunity, additional development personnel may become available who can participate in design, and they can be assigned to the project. If either of these uncertain events (risk or opportunity) occurs, there may be an impact on the project, scope, cost, schedule, quality, or performance. Risk conditions may include aspects of the project s or organization s environment that contribute to project risk including Immature project management practices Lack of integrated management systems Concurrent multiple projects Dependency on external participants who are outside the project s direct control 77

78 Project Risk Management Risk Register The risk register is a document in which the results of risk analysis and risk response planning are recorded and include List of identified risks The identified risks are described in as much detail as is reasonable. A structure for describing risks using risk statements may be applied, for example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur leading to EFFECT In addition to the list of identified risks, the root causes of those risks may become more evident List of potential responses Potential responses to a risk may sometimes be identified during the Identify Risks process 78

79 Project Risk Management Tool Probability and Impact Matrix (1) Risks are evaluated based on their probability and impact to cost and schedule A probability and impact matrix is a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs. Risks are prioritized according to their potential implications for having an effect on the project s objectives A typical approach to prioritizing risks is to use a lookup table or a probability and impact matrix The specific combinations of probability and impact that lead to a risk being rated as high, moderate, or low importance are usually set by the organization 79

80 Project Risk Management Tool Probability and Impact Matrix (2) 80

81 Project Risk Management Tool Probability and Impact Matrix (3) 81