COM41

3-PROJ
ECTMANAGE
MENT

I
NTRODUCTI
ON

DE
FINI
TI
ON:
Apr
oje
cti
sat
emp
ora
ryg
rou
pac
tivi
tyd
esi
gne
dtop
rod
uceau
niq
uep
rod
uct
,se
rvi
ceo
rre
sul
t.

I
tist
emp
ora
ryi
nth
ati
tha
sad
efi
nedb
egi
nni
nga
nda
nen
dint
imea
ndt
her
efo
red
efi
neds
cop
ean
dre
sou
rce
s

Apro
jec
tisuni
quei
nthatiti
sno
tar o
uti
neop
era
tio
n,bu
tas p
eci
fi
cse
tofop
era
tio
nsdes
ig
nedt
oacco
mpl
i
shasi
ngul
ar
g
oal
.Soapro
jec
tt e
amofteni
ncl
ude
speop
lewhod
ontu
sual
lywor
ktog
eth
ersome
time
sfromd
iff
ere
ntorg
ani
zat
ion
s
an
dacro
ssmu
lti
pl
egeog
raph
ies
.

Thede
vel
opme
nto
fsoftwa
reforani
mpro
vedbu
sine
ssp
roc
ess
,theco
nst
ruc
tio
nofabui
l
dingo
rbri
dge
,th
ere
li
efe
ffo
rt
af
terana
tura
ldi
sa
ste
r,thee
xp a
nsi
ono
fsal
esi
ntoane
wgeog
rap
h i
cmar
keta l
lar
epro
ject
s.

An
dallmu
stb
eexp
ert
lyma
nag
edt
ode
li
vert
heo
n-t
ime
,on
-bu
dge
tre
sul
ts,l
ear
nin
gan
din
teg
rat
iont
hato
rga
niz
ati
ons
ne
ed.

Pro
jectmana
geme
nt,the
n,isth
ea p
pli
cat
ionofknowl
edge
,ski
ll
sandte
chn
iqu
estoexe
cutepro
jec
tseffe
cti
vel
yand
ef
fici
entl
y.I
t
sastra
teg
iccompe
tencyfo
ro r
gan
iza
tio
ns,ena
bli
ngt
hemtoti
ep r
oje
ctres
ult
stobusi
nes
sgoa
ls a
nd
thu
s,bet
terco
mpetei
nthei
rmarket
s.

Pro
jectmana
geme
ntisthedi
sci
pl
ineofmana
gi
ngaser
ieso
ft a
skswi
thi
nag i
venamountofti
meandwit
hinabud
get
.
Pro
jectma
nage
mentpla
ysala
rgero
leinth
edevel
opme
ntofawidera
ngeo
for g
ani
sa
tio
nalreq
ui
reme
nts
,eggo
ver
nment
,
co
nstr
ucti
on,
engi
nee
rin
g,me
dic
ine
,andes
peci
al
ly,
inco
mput
ingandi
nfo
rmat
iontec
hnol
ogy.

De
fin
ingo
faPr
oje
ct

Acle
aran
daccura
teproj
ectdefi
niti
oniscr
iti
calt
othesu
ccesso
fap ro
jec
t.Thedef
ini
tio
npro
ces
sco
nsi
st
sofset
tin
g
cl
ear
lyde
fin
edobjec
tive
s,det
ermin
ingthekeysucc
essc
rit
e r
iaandeval
uat
ingtheri
sksi
nvo
lved
.Thefi
nalo
utco
me
s
houl
dbeaProj
ectDefi
ni
tio
nd o
cument,
some
time
srefe
rre
dt oasaPro
jectChart
er.

TheProje
ctDefi
ni
ti
onsho
uldi
ncl
udeast
ateme
nto fthebu
sin
e s
snee
dt h
atthepro
jec
ta i
mstoad
dre
ssa
nda
des
cri
pti
onoft
hepro
duc
t,s
ervi
ceo
roth
erdel
i
verab
lest
hatwi
llbei
tso
utpu
t.Itc
anb
econs
tru
ctedb
yas
kin
gas
eri
es
ofqu
est
ion
s:

Wh
ati
sth
epu
rpo
se,
orp
roj
ectmi
ss
io
n,i
eth
ere
aso
nfo
rdo
ingt
hep
roj
ect
?

Wh
ata
ret
heg
oal
s,i
ewh
att
arg
etsd
oest
hep
roj
ecta
imt
oac
hie
ve.

Wh
ati
sth
esc
opeo
fth
epr
oje
ct,
ieh
owwi
l
lth
eor
gan
isa
tio
nga
in?

Wh
ata
ret
heq
ual
i
tys
tan
dar
dsa
ndp
erf
orma
ncec
rit
eri
a?

Wh
ata
ret
heme
asu
rab
leo
bje
cti
veso
fth
epr
oje
ct?

Wh
ata
ret
heke
ysu
cce
ssc
rit
eri
a?

Wh
ata
ret
hep
roj
ectd
eli
ver
abl
es
?
1
 Wh
ata
ret
hep
roj
ectc
ons
tra
int
s,e
gti
me,
res
our
ces
,pe
rfo
rma
ncec
rit
eri
a?

Wh
atr
is
ksa
rei
nvo
lve
d?

Th
epr
oje
ctd
efi
ni
ti
onp
roc
essp
rod
uce
sth
ein
for
mat
ionn
eed
edt
obe
gi
nco
nst
ruc
tin
gaPr
oje
ctPl
an.

PROJ
ECTMANAGE
MENTTE
RMS

Ta
sk

Atas
kisana
cti
vi
tytha
tneed
stobea
c c
omp
li
she
dwit
hinade
fin
edp e
rio
dofti
me.
Tas
ksa
reg
ene
ral
lyp
iec
eso
fwo
rk
th
atreq
ui
ree
ffo
rtan
dreso
urc
esa
ndhaveaco
ncre
teo
utco
meordel
i
verabl
e.

I
nthe
oryatas
kcanbeo
fanysi
ze.
Ind
eed
,ap r
oje
ctc
oul
dber
ega
rde
dasave
ryl
arg
eta
sk.
Howe
ver
,th
ete
rmt
aski
s
n
orma
ll
yuse
dtore
feras
mal
le
rpiec
eofwork.

Tas
kstakepl
aceove
raperi
odoftimeandus
ual
lyco
nsu
meres
our
ces.
Proje
ctsaremadeupo
ftas
ks,s
omet
ime
sgr
oupe
d
to
gethe
rint
oworkpacka
ges
.Inpr
ac t
ice
,theter
mtas
kc a
nbeappl
iedtoal
mos
ta nypro
jec
tac
tivi
ty.Ta
skdur
ati
ons
ca
nb el
ongo
rshor
tandthe
recanbehugeva
ria
tio
nsi
ncos
tsan
dreso
urcere
qui
remen
t s
.

Thed e
li
vera
ble
sf r
omma nysmal
ltasksmaybec o
mbi
nedto
geth
ert ocre
ateth edeli
vera
blefo
ral ar
gertask.For
exampl
e,aproje
ctma n
agermaybeallo
cate
dt hetas
kofprod
ucingaproj
ectp l
an.Thistas
kmayinvol
veo b
t a
ini
ng
i
n f
ormat
ionfr
oman umberofpe
ople
.E a
chmeeti
ngcou
ldber
ega
rdedasataskinitsownrig
ht.So
meofthep e
oplethe
proje
ctmana
germeet
swithmayal
sohavetocar
ryouttas
kst
hemse
lvesi
nordertoprovi
dethereq
ui
redi
nformat
ion.

Sc
hed
ule

Asche
dul
eisati
meli
neofe
ventsandact
ivi
tie
swhi
chcanbeus
edasano
per
ati
ngti
met
able
.Itc
anbepres
ente
dona
c
alen
darfra
mewo
rkoronanel
apse
dt i
mesca
leands
pec
ifi
est
heoc
curr
enc
e,t
ime
sofe
ventsandt
her
ela
tivest
arta
nd
fi
ni
shti
meso
facti
vi
tie
s.

Th
esched
ulesp
ecif
iest
hetimi
ngan
ds e
quen
ceoft a
skswi
thi
nap r
oje
ct,aswe
lla
stheproj
ectdura
tio
n.I
tco
nsi
st
s
ma
inl
yoftas
ks,d
epende
nci
esamo
ngta
sks,
durat
ion
s,co
nst
rai
ntsa
ndti
me-o
rie
nte
dproj
ecti
nfo
rmat
ion
.

Adi
spl
ayofpro
jec
ttimeal
lo
cat
ion
,int
hef
ormo
fmi
l
est
one
s,d
eli
ver
abl
es
,ac
tivi
ti
eso
rGa
nttc
har
ts,
iso
fte
nre
fer
red
toa
sthepro
jec
tsche
d u
le

Ri
skAn
aly
sisa
ndRi
skMa
nag
eme
nt

Ar
is
kisa
neve
nt,
whi
chi
sun
cer
tai
nan
dha
san
ega
tivei
mpa
cto
nso
mea
cti
vi
ty.

Ris
ka n
alys
isi
sthepro
ces
sofq
uan
tit
ati
vel
yorq
ual
i
tat
ive
lya
ss
es
si
ngr
is
ks.
Iti
nvo
lve
ses
ti
mat
ingb
otht
heu
nce
rta
int
y
oftheri
skandit
simp
act.

Ri
skma
nag
eme
nti
sth
eus
eofr
is
kan
aly
si
stod
evi
sema
nag
eme
nts
tra
teg
ie
stor
edu
cer
is
k.

I
npr
oje
ctma
nag
eme
nt,
the
set
ech
niq
uesa
reu
sedt
oad
dre
sst
hef
oll
owi
ngq
ues
ti
ons
:

Wi
l
lth
epr
oje
ctg
oove
rsc
hed
ule
?(Sc
hed
uleRi
sk)
2
 Wi
l
lth
epr
oje
cto
ver
runi
tsb
udg
et?(Co
stRi
sk)

Wi
l
lth
eou
tpu
toft
hep
roj
ectf
ailt
osa
tis
fyt
heg
oal
s?(Pe
rfo
rma
nceRi
sk)

Atthebeg
inn
ingofaprojec
ta ndthro
ugho
utitsd
urati
on,
theanswerstot
hes
eque
sti
onsa
reun
known,b
uta'ye
s'ans
wer
toanyofthemisob
vio
uslyundesi
rab
le.
Eachofthes
eele
mentsshou
ldther
efo
rebesu
bject
edtoari
skana
lys
is,t
oh e
lp
pro
jectmanage
rsdeci
dewh etherthep r
ojec
tisind a
ngeroff ai
li
ngtomeeti
tscommi
tme
ntsandwheth
ero rnot
any
thin
gcanbed o
netoimprovetheproj
ect'
scha
nceso
fsucces
s.

Sc
hed
uleRi
sk

Sche
duleris
kistheris
kt h
att h
ep roj
ecttakeslo
nge
rt h
ansche
dul
ed.I
tc a
nleadtocos
tris
ks,aslo
ngerproj
ects
al
wayscos
tmo r
e,andtoperfo
rmanceri
sk,iftheproj
ectisco
mpl
etedto
olatetoperf
ormit
sinte
n de
dt as
ksfull
y.
Apar
tf ro
mt h
ecostes
ti
mati
onandreso
urceal
loc
ati
onuse
dinCPM,mos
tofthetec
hni
qu
esuse
dinquan
t i
tat
ivecos
tris
k
an
alys
isar
ed i
ffe
rentfro
mthos
eu s
edinsche
dul
er i
skana
lys
is
.

Theea
rlie
sttech
niq
ueu s
edfo
rsch
edul
eriskanal
ysi
swast h
eGanttchart
,devel
ope
db yHenryGanttin19
17.AGan
tt
cha
rtgive
sagraphi
calsu
mmar
yoftheprog
resso
fan umb
ero fpro
jec
tacti
vit
iesb
ylis
ti
n geac
hacti
vityver
tica
ll
yona
sh
eetofpaper
,repr
esenti
ngt
hest
artanddurat
ionofea
c htas
kbyah o
riz
ont
alli
neandt h
enrepre
senti
ngthecu
rre
nt
ti
mebyave r
tic
alli
ne.Thi
sma
kesi
teas
yt ose
ewhereeachacti
vit
yshou
ldbeandtos
howitscurr
entstat
us.

Man
ytasksr
equi
rethatpri
ortas
ksarecompl
etedbefo
rethe
yc anbein
iti
ated
,butunfort
unatel
y,Gant
tc h
artsar
e
no
tagoodme
thodofsho
wingth
einter
rel
atio
nshi
pb e
tweenta
sks,s
ocomput
ersmus
tbeu s
edtosetupandmain
tainth
e
ne
twor
ko fta
sks.
Onec o
mmonl
y-u
sedtec
hniq
ueisProg
ramEvalu
atio
nReviewTechni
que(PERT)wh i
chus
esad e
tai
le
d
di
ag
ramofal
lanti
cip
atedtas
ksinap ro
ject
,organ
ise
dintoanetworktorepr
ese
ntt hedepe
ndenceofeac
ht as
kon
th
oset
hatmus
tp r
eced
eit.

PERTcanbeuse
dt oa
naly
sethetas
ksinvo
lvedi
nco mpl
eti
ngapro
jec
t,es
pec
ial
lythed
ura
tio
no fe
achta
sk,an
d
i
denti
fythemi
ni
mumti
men e
ede
dt oc
ompl
etethet
otalproj
ect.
PERTmake
sitpo
ssi
bl
etos
che
duleapr
oje
ctwit
hout
knowi
ngt
heprec
is
edet
ail
sanddu
rati
onso
fallt
heac
tivit
ies
.

TheCriti
calPathMetho
d(CPM)i sas i
mil
arprojec
tp l
anni
ngandmana
gementtec
hniq
uewhi
cha l
sous
esan e
twor
k
repr
ese
ntati
on.Ear
li
ervers
io
nsd i
dn o
ttrytoesti
matepro
babi
li
tydi
st
rib
utio
nsfortas
kd u
rat
ion
s,maki
ngite
asi
erto
der
ivethecri
tic
alpath
,iethesetoftas
ksthatdete
rmi
nedthefin
alpro
jectle
ngth
.Vari
ouse
nhance
mentswe
remade
toCPMtoallo
walter
nati
vereso
urceal
loc
ati
onstobeexp
lore
d,wi
thi
nspec
ifi
edcos
tcons
trai
nts
.

Thein
c r
eas
in
gavail
abil
i
t yofcomputi
ngpowe
ra l
lo
wedledtoth
eincl
usi
onofp r
obab
il
itydis
tri
but
ion
sfortas
kd u
r a
tio
ns
i
nCPM. Thi
sall
owedMon teCarl
os i
mul
ati
ontobesubs
titu
tedforthePERTa s
sumpt
ions
.(Mont
eCarlosi
mul
ati
onsarea
ty
p eofal
go
rit
hmu s
edt osi
mula
t ethebe
havi
ourofsys
tems
.The
ya r
ed e
scri
bedasst
ochas
ticorno
ndeter
mini
st
icbecaus
e
th
eya reba
sedonth euseofran d
omn u
mber
s.As t
ochas
ti
cmodeli
same tho
do fest
imati
ngprob
abi
li
tydis
tri
buti
onsof
po
tentia
lout
comesbyall
owingforrand
omvari
atio
ninoneormor
einputs
.)

Thead
diti
onofs
toc
has
ti
ctas
kdura
tio
nsmea
nstas
ksc
anbep
lac
edonthec
rit
ica
lpat
hwithsomeprob
abil
i
ty,al
so
es
ti
mate
dusi
ngth
eMont
eCar
lome
tho
d.Sto
cha
sti
cCPMi
sno
wth
epref
err
edme
thodo
lo
gyfo
ras
ses
si
n gs
che
duleri
sk.

Co
stRi
sk

Co
stri
skisth
eris
ktha
tthepro
jectcos
tsmo
reth
anbudg
ete
d.I
tca
nle
adt
operf
orman
ceri
ski
fcos
toverr
unsl
eadt
o
re
duc
tio
nsinsco
peorq
ual
i
ty.Cos
tr i
skcanal
sol
eadt
osche
dul
eri
ski
fthes
che
dulei
sext
ende
dbecau
senote
noug
h
3
f
und
sar
eava
il
abl
etoc
omp
let
eth
epr
oje
cto
nti
me.

Themai
nte
chni
qu
eusedfo
rco
stana
lys
iso
fcompl
expro
jec
tsi
sba
sedo
nth
eWo
rkBr
eakd
ownSt
ruc
tur
e(WBS)wh
ich
or
gani
se
spr
oje
cttas
ksin
tohi
era
rch
ica
lst
age
sorpha
ses
.

WBSisaproj
ectmana
g e
menttec
hni
quefordef
ini
ngan
dorgan
isi
ngth
etotals
copeo
faproj
ectusi
ngahie
rarc
hic
altree
st
ructu
re.Thefi
rs
tt wole
vels
,kno
wna sth
er o
otnodea
ndL e
vel2,de
fin
eas e
tofpl
annedou
tcome
srepre
sent
ingthe
ent
irepro
jectsco
pe.Ate a
chsubs
eque
ntlevel
,thechi
ldr
eno fapare
ntn o
derepr
ese
ntthee nt
iresc
opeoft h
eir
pare
ntnod
e .

Awel
l-
des
ig
nedWBSde
scr
ibespl
annedoutc
omesi
nst
eado
fpla
nne
dactio
ns.Ou
tco
mesa
rethedesi
reden
dsofthepr
oje
ct
an
dcanbepred
ict
eda
ccur
at e
ly,
wh e
reasac
tion
smakeu
pthepro
jectpl
anandmaybedi
ffic
ulttopre
dic
taccu
rate
ly.
Awel
l-
des
ig
nedWBSma
kesiteas
yt oas
si
gnanyproj
ecta
cti
vi
tytoon
ea n
do n
lyo
netermi
nalel
eme
n to
ftheWBS.

WBScos
testi
mati
onatt
achesaco
sttoeachcompon
entan
dsu
msth
esetoo
btai
natot
al.Exp
ertsi
nrel
evantar
easar
e
as
kedtospe
cif
yap r
obabi
l
itydi
st
ribu
tio
nf o
re a
chp a
rto
fth
eWBSandthe
nMont
eCa r
losi
mul
ati
oni
suse
dt oe
sti
mat
e
apro
babi
l
itydi
str
ibu
tio
nf o
rthetot
alproj
ectcost

Pe
rfo
rma
nceRi
sk

Pe
rfo
r manc
er i
sksi
n cl
udetheri
skstha
tthecompl
etedpro
ject,wh
enco
mpl
ete
,fa
il
stop
erf
ormasi
nte
nde
dorfa
il
sto
me
etbu s
ine
ssrequi
rementstha
tj us
ti
fi
edit.Perf
ormanc
er i
skscanl
eadt
osche
dul
eandcos
tris
ksift
ech
nol
og
ic
al
pr
obl
emsincr
eas
et hedurati
onandco
stoft
hep ro
ject.

Theme
thodsus
edfors
che
dulean
dc o
stri
skana
lys
isares
imi
l
a rf
oralltyp
esofp
roje
cts
,butme
tho
dso
fpe
rfo
rma
nce
ri
skan
alys
isca
nd e
pen
dmoreonsub
jecta
rea
.Quan
t i
fyi
ngthere
lat
ions
hi
psbe
twee
ndiff
ere
ntas
pec
tso
fpe
rfo
rma
nce
ca
nbedif
ficu
lt.

The
rehavebe
enso
mea t
temptst
ocons
tru
ctqua
nti
tati
vees
ti
mate
sofper
for
man
cer
is
k,e
.g
.fo
rae
ros
pac
esy
ste
ms,b
ut
cu
rren
tp r
act
ices
eemst
ob et
ouseami
xofqu
anti
tat
iveme
thod
sandmo
del
s.

Sc
opea
ndSc
opeCr
eep

Thes
copeofapro
jec
tisthesu
mt o
talofal
lpro
jec
tp ro
duc
tsandt
hei
rre
qui
reme
ntso
rfe
atu
res
.So
met
ime
ssc
opei
s
us
edtore
fertot
hetota
li
tyofwor
kn ee
dedtoc
ompl
eteapro
jec
t.

I
ntra
dit
ion
alp r
oje
ctmana
geme
nt,t
hetoo
lstodes
cri
beaproj
ect'
ssc
opea
ret
hepro
d u
ctbre
akdo
wns
tru
ctu
rea
nd
p
rod
uctdesc
ripti
ons
.Th
eprima
ryto
olt
odesc
rib
eap r
oje
ct'
ssc
opei
sthewo
rkb
rea
kdownst
ruct
ure
.

I
fre
qui
reme
ntsa
renotc
ompl
ete
lyd
efi
neda
ndd
esc
rib
eda
ndi
fth
erei
snoe
ffe
cti
vec
han
gec
ont
roli
nap
roj
ect
,sc
ope
o
rreq
uir
ementc
ree
psmayo
ccur
.

Cre
episapr
obl
emthato
ccur
sinp r
oje
ctmana
geme
ntwh e
reth
eini
ti
alobj
ect
ive
soft
hep
roj
ecta
rep
lac
edi
n
je
opar
dyb
yagra
dua
lin
cre
asei
nove
ral
lobj
ect
ive
sasthep
roje
ctp
rog
res
se
s.

Th
er eq
ui
remen
tsofthenewobj
ecti
vesc
anexc
eedthere
sou
rce
sal
lo
cat
edt
oth
epr
oje
ctr
esu
lti
ngi
nth
epr
oje
ct
mi
ss
in
gdead
lin
es,o
ver
runn
ingb
udge
tsorfa
il
in
gco
mpl
ete
ly.

Sc
opeCr
eepr
efe
rst
oun
con
tro
ll
edc
han
gesi
nap
roj
ect
'ss
cop
e.I
tca
nha
ppe
nwh
ent
hes
cop
eofap
roj
ecti
sno
t
4
p
rop
erl
yde
fin
ed,
doc
ume
nte
dan
dco
ntr
oll
eda
ndc
anr
esu
lti
nti
meo
rbu
dge
tove
rru
ns.

Sco
pecreepc a
ninvol
veascopeincr
eas
e,cons
is
ti
ngo fnewp r
odu
ctso
rn e
wfeat
uresofexis
ti
ngpro
duct
s.Thi
sca
n
ha
ppenift h
ep r
oje
ctteamdri
ftsawa
yfromitsor
ig
inalpur
pose
.Sco
pecre
epca
nals
oc a
useaproj
ectt
eamtoove
rru
n
i
tsori
gi
nalbudg
etandsche
dule
.Asthesco
peofap ro
jectgrows
,mor
etas
ksmus
tbecomple
tedatthes
amecos
tandi
n
th
esametimefra
meastheor
ig
inals
eri
eso
fp r
ojec
ttasks.

Sc
opecre
episof
tenares
ulto
fweakpr
ojec
tmanag
ement
,po
orc
han
gec
ont
rolo
rin
cor
rec
tid
ent
ifi
cat
iono
fth
e
pr
odu
ctsandf
eat
ure
sre
qui
redt
oac
hie
vepr
ojec
tob
jecti
ves
.

Cr
iti
calPa
th

Cri
ti
calPat
hAn a
lys
is(CPA)i
sanef
fect
ivemeth
odfo
rpla
nni
ngandmana
gi
ngpr
oje
cts.L
et'
scon
sid
eraver
ysimp
le
exa
mple,
coo
kin
gandservi
ngaf
rie
dbre
akfas
t.Weca
nbe
gi
nbyli
st
inga
llt
hetas
ksr
equ
ire
dinrou
ghl
yc o
rre
cto
rde
r:

as
sembl
eplatesandcutl
ery
as
sembl
eingre
d i
ents
prepa
recooki
n geq
uipme
nt
maketoa
st
frysau
sag
esan deg
gs
gr
illb
aconandt o
matoes
se
tt a
ble
warmplate
s
se
rvebreakfast

Th
eo r
deris
n'
tq u
iteri
ghtassomeofthe
setas
ksn
eedtotakepl
ace
s
imu
ltan
eous
ly.Al
so
,so
met
asksmu
stb
est
art
edbef
oreot
hers
,andso
met a
sksmustbec
ompl
ete
dbe
for
eoth
ersca
nb e
s
tart
ed,eg
:

Th
epl
atesne
edt
owarmwhil
eoth
ert
asksareta
kin
gpla
ce
Th
eto
astnee
dst
obemadewhi
let
hes
ausa
gesar
efryi
ng,
andt
heb
aco
nan
dto
mat
oesa
reg
ri
ll
i
ng.
Th
eeg
gsnee
dtobef
rie
dlas
t.

Thec
rit
ica
lpa
than
aly
si
srepr
ese
ntswhattas
ksnee
dd o
ne,a
ndwhentheynee
ddo
ne,asadi
agr
am.Ti
mes
cal
esa
ndc
ost
s
ca
nbeatta
che
dtoe
achac
tivi
tyandre
sour
ce.Th
edia
gra
ma l
ong
si
des
howsth
eCPAformaki
ngafri
edbr
eakf
ast
.

Th
isi
saf
air
lyt
rivi
ale
xamp
lewh
icho
nlys
howsaf
ewa
cti
vi
ti
est
aki
ngp
lac
eove
raf
ewmi
nut
es.
Rea
lbu
si
nes
spr
oje
cts

5
a
rel
i
kel
ytoh
avef
armo
rea
cti
vi
ti
esa
ndt
ota
kep
lac
eove
rwe
ekso
rmo
nth
s.

Aspre
adsh
eetli
keMic
ros
oftExce
l,o
ras
pec
ial
i
sedp
roj
ectma
nag
eme
ntp
acka
gel
i
keMi
cro
sof
tPr
oje
ctc
anb
eus
edt
o
ca
rryoutCri
ti
calPa
thAnaly
si
s.

Ga
nttCh
art
s

Gant
tCh a
rtsareaveryu
sef
ultoo
lforp r
ojec
tmanage
ment
.Proje
ctmanage
mentpackag
esl
ikeMic
ros
oftPr
oje
ct
ge
neral
lyo
fferaGant
tCha
rtfunc
tio
n,butyoucane
asi
lyco
nstr
uctoneus
ingExc
elorasi
mil
arspr
eads
hee
t.AGan
tt
cha
rtcanbeus
edtokee
ptr
ackofpro
gre
ssforea
chac
tivi
tyandhowthec
ost
sarerun
n i
ng.

Createat i
me-
li
nefort hedurati
onoftheproje
ct.Eac
ha c
tivi
tyisr e
pres
ent
edbyas epara
teli
ne.I
nourBreakfa
st
exampletheti
mesc
aleisgi
veninminut
es,bu
tnormal
lyyouwoul
du s
ewe e
ks,o
revenmonths,fo
rlong
-te
rmproje
cts.
You
cancolou
rc o
dethet i
mebloc
kst oden
otetypeofacti
vi
ty,egin
tense,wat
chi
ngbri
ef,di
r e
ctl
ymanage
d,del
eg
atedand
lef
tt orun,an
dy o
uc ansch
edulerevi
ewandbrea
kp oi
nts
.Youcanals
omovetheti
meb l
ocksaro
undtorep
ortonactua
l
versu
sp l
anned,
tore-s
c h
edul
ean dtocre
atenewpla
nupdates
.

Attheen
dofeac
hlineyo
ucanshowasmanyco
stco
lumnsasre
qui
redfortheac
tivi
ti
es
.Ou
rBrea
kfa
stexamp
lesh
ows
ca
pit
alcos
t(Cap)ofthecon
suma
bleit
emsandth
er evenuec
ost(Rev)forlab
ourandf
uel
.Co
stco
lumn
sc a
nshow
pl
anne
dandac
tua
lexpen
ditu
reandvari
anc
es,
andcal
cula
tetot
als
,ave
rage
s,ra
tio
s,e
tc.

GanttChar
tsarefl
exi
bleandus
efulpro
jectman
ageme
ntt o
ols
,butt heydonotsho
wt hei
mpor
tancean
din
ter-
depe
nden
ceofrel
ate
dp a
ral
le
lact
ivi
tie
s,a
ndtheydon
'tsho
wt henee
dt ocomp
let
eonetas
kbef
oreano
therc
anb
egi
n,
li
keacri
ti
calp
athana
lys
is
.Bot
htool
sarene
ces
sa
ry,es
peci
al
lyatthepla
n n
ings
tag
e.

E
sti
mat
ingPr
oje
ctDu
rat
iona
ndCo
sts

Thedurati
onofapro
jectca
no n
lybees
tima
tedonc
ey ouknowwhatreso
urce
sareavai
lab
le,
forexamp
le,
ifapro
jec
tis
es
timat
edt or
equi
re1
000hoursofef
fortan
do n
lyonep e
rso
nisavai
l
abletoworkonit,i
tmaytakesi
xmonth
sormore
.
However
,ifthre
epeo
plear
eavail
abl
e,i
tmaybepos
si
bletocompl
etethepro
jectintwomont
hs.

Co
stsarenormal
lyspl
iti n
tol a
bou
rc o
stsan
dn on-
lab
ourcosts
.Thelabourcos
tc a
nb edeter
minedbye xami
ningthe
nu
mberofhoursofef
fortr e
quir
edandtheco
stperhour
.Ifyouareus
ingexter
nall
abour
,egcontra
ctorso
rc ons
ulta
nts
,
th
ec o
stsshoul
db eestimatedandbudge
tedina d
vance.Thisiss
traig
htfor
wardify o
ua lr
eadykn owy ourexact
re
qui
remen
ts,butifthef i
nalst
affi
ngreq
ui
rement
sarenoty e
tkn o
wny oumayneedtomakesomeass
umptio
nsbasedon
th
egenera
ltypeofstaffrequi
red,
egus
estanda
rdhourl
ycostforac
countant
s,pr
ogra
mmers,
offic
eadmini
strat
ors
.

6
Metho
dsofc al
cul
ati
ngthec os
tsofinternalla
bou
rva ryfromcompanytocompany
.Inso
mec a
ses
,thelab
ourco
stsfo
r
i
n t
ernalemplo
yee
sareass
umedt obezero,
sinceth
eya r
ea l
rea
dya cc
ount
edf ori
nad e
part
mentalbu
dget.
Thisd
oesno
t
meanthatt h
ereisnoco
st;itsi
mplymeanst h
attherearenofurtherco
stsinaddi
ti
ontowhatthecompa
nyisal
rea
dy
payi
ng.Othercompani
esuseana ver
a g
eh ourl
ycostpere mpl
oyeewhenc a
lcul
ati
ngpro
jectbudg
ets.Thi
smaybean
avera
gecostperhou
rforallemplo
yeesoritmayvarydependi
ngonjobfun
c t
ion.

Non-
labou
rc o
stsi
ncl
udeeveryt
hingno
td i
rect
lyrel
ate
dt osa
lar
yorc o
ntrac
torco
sts
. Someofthes
e,suc
ha stra
ini
ng
andteam-
buil
di
ngcos
tsareempl
oye
e-re
lat
ed,butthe
yarenotreg
arde
daslabo
urco
stsast he
ydonotrelat
ed i
rect
lyto
empl
oyeesal
aryorcont
ractorco
sts
.Everyproje
ctmana
gershou
ldbefami
li
arwit
ht hea cc
ount
ingrul
esinh i
sorher
owncompanytoen
surethatl
abo
urandnon-l
abo
urcos
tsareal
lo
cate
dcorrec
tly
.Non-
lab
ou rcos
tsg
eneral
lyinc
lude:

Ha
rdwareandsof
tware
Eq
uip
men t
Ma
teri
alsands
uppli
es
Tra
vell
ingexp
enses
Tra
ini
ng
Te
amb u
ildi
ng
Fa
cil
it
ies

I
fp a
rtsofap r
oje
ctar
eouts
our
ced,t
hisi
sno
rmall
yrega
rde
da san
on-
lab
ourc
osts
inc
eth
eco
mpa
nyi
spa
yin
gfo
r
de
li
verab
lesa
ndisno
tco
nce
rne
dabou
tthesu
ppl
ie
r'sl
abo
urcos
ts.

PROJ
ECTMANAGE
RSKI
LLS

Thepro
jec
tma
nag
eri
sth
ein
divi
dua
lwh
oha
sth
eove
ral
lre
spo
nsi
bi
li
tyf
ort
hes
ucc
ess
fulp
lan
nin
gan
dexe
cut
iono
fa
pr
ojec
t.

Al
tho
ughthi
scou
rseco
nce
ntra
teso
nITp r
ojec
tmanag
eme
nt,th
et i
tl
eiswid
elyuse
dinot
heri
ndus
tri
eswhi
cha
re
i
nvol
vedi
nprod
uci
ngapro
duc
torse
rvi
ce,
incl
udi
ngt
hecon
str
uct
ioni
ndus
try
,arch
ite
ctu
rea
nden
gin
eeri
ng.

Ap
roj
ectma
nag
ermu
stp
oss
es
sac
omb
ina
tio
nofs
kil
lsi
ncl
udi
ngpl
ann
ing
,or
gan
isi
ng,
commu
nic
ati
nga
ndpr
obl
em-
sol
vin
g.

Oneofthepri
meres
pon
sib
il
iti
eso
fthepro
jec
tmana
geri
sri
skma
nag
eme
ntandago
odp r
oje
ctmana
gerwi
lle
nsu
retha
t
ri
sksar
ec a
refu
ll
ymoni
toredthr
oug
hou
tthedur
ati
onofth
epro
jec
tasth
eycanhaveamajo
rimpa
ctonit
seven
tual
su
cces
sorfai
lu
re.

Goo
dcommun
ica
tio
ncanpla
yamajo
rro
lei
nmi
ni
mi
si
ngr
is
kbye
nsu
rin
gth
ata
llme
mbe
rso
fth
epr
oje
ctt
eama
rea
blet
o
expr
esst
hei
ropi
nio
nsan
dc o
nce
rns
.

Mo
stproje
ctman
ager
susepro
jectman
ageme
ntso
ftwar
e,s
uchasMi
cro
sof
tPr o
jecto
rOpenWorkb
enchtoo
rga
nis
e
th
eirt
asksan
dres
our
ces
,ast
hisa
ll
owsthe
mtopr
oducec
har
tsan
drepo
rtstha
tmig
htot
her
wis
eta
kehour
sofwo
rk.

Pl
ann
ingSki
ll
s

Pr
oje
ctma
nag
ersmu
stb
eab
let
oor
gan
ises
taf
fan
dta
sksi
ntoas
che
dul
ean
dmo
nit
ori
tsp
rog
res
s.Th
iss
che
dul
esh
oul
d
7
d
efi
nethesc
opeofwo
rktob
eu n
der
take
nandatime
tab
leforthep
r o
ject
.Iti
ncl
ude
sal
lact
ivi
tie
sth
ata
ret
obe
r
eso
urc
ed,s
ched
ule
dan
dun
der
takeno
verape
rio
dofti
metoa
chie
vethereq
ui
redpr
oje
ctou
tco
mes.

F
orlar
geandc
ompl
expro
jec
tsthepr
ojec
tmana
gerwi
llno
rma
ll
yd i
rec
tt hewo
rkofoth
erswhoa
rei
nvo
lve
dinthe
d
etai
le
dsc
hedu
li
ngoft
hepro
jec
t.Onsma
ll
erp
roje
ctst
h ep
roj
ectmana
germayb
eexpe
ctedtoc
arr
you
tso
meoral
lof
t
hiswo
rk.

Ap r
oje
ctman
agersho
uldu
nder
sta
ndt h
egene
ralpr
inc
ipl
esan
dpr
oces
se
sofdeve
lopi
ngpro
jec
tsc
hedu
les
,kn
owthe
le
gi
sl
ati
veandregul
ato
ryfra
meworks
,und
ers
tandtherel
eva
nts
oft
warean
db efami
li
arwi
thpr
oje
ctmana
geme
nt
meth
odsan
dtech
n i
que
s.

Or
gan
isa
tio
nalSki
ll
s

Proj
ectmana
gersmus
tbeabl
etou nd
ersta
ndtheint
erna
lfuncti
oni
ngofa
norgani
sa
tio
nandknowho
witac
hie
vesi
ts
sp
ecif
icobje
ctive
s.Thi
sisp a
rti
cular
lyimpor
tantinp u
bli
csectoror
gan
isa
tio
nswh i
char
eo f
tenri
ddl
edwit
h
bur
eaucr
acyandthenee
dtogothr
oughmul
tip
lele
vel
sofappr
oval
.

The
yshou
ldal
sobes
kil
le
dinpers
ona
lorg
ani
sa
tio
n,a
sthe
ymayb
erequi
redto
otokeept
rac
kofreq
ui
reme
ntsandd
esi
gn
do
cume
nts,c
ontr
acts
,sch
edul
es
,pers
onn
elreco
rds
,pr
ojec
tre
por
ts,commu
nic
ati
onre
cor
ds(i
ncl
udi
nge-ma
il
),hi
ri
ng
hi
st
ory
,meet
ing
sandst
atusr
epor
ts.

The
ymustals
obeabl
etoworkwit
handdevel
optea
msandcre
ateappro
pri
ateenvi
ron
mentswit
ht heai
mofach
ievi
ng
co
mmonobj
ecti
ves
.Theeff
ortsp
entmot
ivati
ngatea
mt op
erfor
ma tit
speakisal
wayswort
hwhil
e.Thefou
rcri
tic
al
co
mpone
ntsar
erewar
din
gachi
eve
ment
s,pro
vidi
ngf
eedba
ck,
recog
nis
ings
tre
ngth
sandprovi
di
ngchal
leng
es.

Teamlea
ders
hi
pissel
domea
sy.I
tisdi
ffi
cul
ttoper
suadeyo
urtea
mt ogowi
thyouri
deawi
tho
utmaki
ngthe
mf eelt
hat
theid
eaisbe
ingt
hrus
to nt
hem.Thet
eamloo
kstothePro
jectMa
nage
rt op
rovi
dedi
rect
iona
ndvis
io
n.Toach
ievethi
s
su
cces
sful
lythepr
ojec
tmanag
emustco
nsta
ntl
yenhanc
ehis
/herbr
eadthan
dd e
ptho
fkn o
wle
dge
.

Co
mmu
nic
ati
onSki
ll
s

Proj
ectmana
ger
smus
tb ea
blet
ospeakwel
linpub
li
ca n
dp r
ese
ntinf
ormat
ioninbo
thpos
iti
vean
dn e
gati
vesc
enar
ios
.
Theymus
tals
obeab
letoco
mmuni
cateef
fect
ive
lyi
nwr i
ti
ng,s
othatt
heycantran
smi
tide
asando
bjec
tive
s.Th
eymust
al
sobeabl
etoin
ter
prettheve
rbalan
dn o
n-ve
rba
lcommun
icat
ion
sofoth
ersinor
dertoknowth
eirre
qui
reme
ntsand
op
inio
ns.

Aproj
ectmana
geri
sexpec
tedtop
roduc
eh i
gh-
qua
li
typroj
e c
tplan
nin
gan
dde
si
gnd
ocu
men
tsa
nds
endo
utme
eti
ng
a
gen
das,u
pda
tes,
sta
tusr
epor
tsa
ndcou
rteo
usandeff
ect
iveemai
l.

Agoo
dmanag
ercangeth
is
/he
rid
easa
cro
ssc
lea
rlya
ndi
nan
on-
con
fro
nta
tio
nalma
nne
r,wi
tho
uta
ppe
ari
ngt
oimp
ose
vi
ewsons
ubo
rdi
nate
s.

Pr
obl
em-
Sol
vin
gSki
ll
s

Pro
jec
tmana
ger
smustb
eablet
ore
aso
nwe
lla
ndu
seal
og
ic
al,
ana
lyt
ica
lpr
oce
sst
oso
lvep
rob
lems
,i
den
tif
yso
lut
ion
san
d
ch
oos
ethemo
stapp
ropr
iat
e.

Th
eymu
stb
eab
let
ose
ekc
rea
tivea
ndi
nno
vat
ives
ol
uti
onst
oth
epr
obl
emst
hatwi
l
lar
is
eint
hec
our
seo
fth
epr
oje
ct

8
 THEPROJ
ECTL
IFECY
CLE

Theprojectlif
ec yc
leconsi
st
soff o
urp has
es,init
iat i
on,pla
n ni
ng,e xecuti
on(in c
ludi
ngmoni
t o
ringandcontrol
li
ng)and
eval
uati
on.Th eMPMMPr o
jectMan a
gementMe thod ol
og
yi sane xcell
entr esou
rcefort hispar toft heUnit.The
Ini
ti
ati
onph a
sebegi
nsbydefi
ningthesco
p e,
pu rpose,objec
tives
,r esour
c es
,deli
verab
les
,times
cal
esa ndstruc
tureofthe
proj
ect.Th enextstepistodevel
opaBu sin
essCa se,inclu
dingsever a
lp os
si
blesol
uti
onsandac os
t /bene
fitanal
ysi
sfor
eac
h.AF easib
il
ityStudyshoul
dt he
nb ecarri
e dou tt oens
uret h
a tt hechosensol
uti
onisfeasi
bl
ea ndh a
sana c
ceptab
le
le
velofrisk.Thenexts t
epistodefi
net heTe rmso fReference,follo
we dbyt heappo
intmentofth eproj
e c
tteam.The
fi
nalste
pi stoc a
rryo u
tPh a
seReviewb e
fores eekingapprovaltop r
oceed.Thefirs
tstepoft hePl a
nningphas
eisthe
crea
tio
no fad eta
il
edPr oj
ectPlanwhichthep rojec tmanag
erwillr eferthrougho
utthep ro
jecttomo ni
torandcontr
ol
ti
me,cos
ta ndquali
ty.Theproj
ectmanagerwillthe nc re
atethefo l
lowingplans:

Re
sour
cePlan:toidenti
fyt h
estaffi
ng,e
quip
mentandmat
eri
a l
snee
ded
Fi
nanc
ialPlan
:toqu a
nti
fyt hefi
nanci
alexpendi
tur
ereq
uir
ed
Qua
li
tyPlan:tosetqual
itytarg
etsandspeci
fyQual
it
yControlme
thod
s
Ri
skPlan:toi
denti
f yri
sksandplanacti
onsnee
dedtomi
ni
misethe
m
Acc
eptancePlan
:t ospe
cifycri
teri
aforaccept
ingde
li
ver
ables

Fi
nal
ly,aPhas
eRe vi
ewisc
arri
edouttoa
ss
essthede
li
ver
able
sprodu
cedtoda
teanda
ppr
ovethesta
rtoft
hePr
oje
ct
Exec
utio
np ha
se.Duri
ngtheProj
ectExecu
tionpha
setheproj
ecttea
mp r
oduc
esth
edel
ive
rabl
eswhi
l
ethepr
oje
ct
man
agermon
ito
rsan dco
ntr
olst
heproj
ectdel
iver
ybyunder
taki
ng:

Ti
meManag
ement:t
racki
n gandrecordi
ngt i
mespentont as
ksaga
insttheProjec
tPlan
Co
stManag
ement:i
dent
ifyin
ga ndrecor
d i
ngcostsaga
ins
tt hepro
jectb u
dget
Qu
ali
tyManage
ment:re
viewingthequal
ityoft hedeli
verab
lesan
dma nage
mentproces
se
s
Cha
ngeManag
ement:
reviewi
n ga
n di
mp l
ementingreque
stsforcha
ngestotheproject
Ri
skMana
gement:
ass
ess
ingth el
evelofprojectriskandtakinga
ctiontomini
miz
eit
I
ss
ueManag
ement:i
denti
fyingandreso
lvingprojectis
sues
Ac
cepta
nceManage
ment:identi
fyingthecompleti
onofd e
li
verabl
esandgai
ningthecus
tome
rsac
cep
tan
ce
Co
mmuni
cati
onsManag
ement: ke
epings
take h
oldersin
formedofprojectprog
ress
,ri
sksandi
ss
ues

Oncet h
ec us
tomerh a
sa c
ceptedthedeliverabl
esandaPh a
seRevie
wh asbeenca r
rie
do uttodete
rmi
newh etherthe
proje
ctobjecti
ve shavebeenachi
eved,thep roje
ctisrea
dyforClo
sure.
APr oje
c tClo
sureRepor
tshou
ldli
stallofthe
act
ionsrequ
ired.Wh enthi
sh a
sbeenappro ved,thel
ist
edacti
onsa
rec o
mp l
ete
dt orele
aseproj
ectres
our
ces,handover
del
iverab
les
,andi nformallsta
kehol
derst hattheprojec
tisnowclo
sed.Shor
tlya f
terthep r
oje
cthasbee
nc los
ed,a
n
Evalu
a t
ion(alsokn owna saPo s
t-I
mpleme n
ta t
ionRevie
w)shoul
db ecarri
edoutt odetermi
netheproje
c t
'sovera
ll
su
ccessandfindou twhetherthebenef
itss t
atedintheori
gi
nalBu
sin
essCasewereactua
llyrea
li
se
d.Anyles
sonsle
arne
d
sho
uldbedocument edforfutur
ep ro
jects.

1
.In
iti
ati
on

TheI
ni
tia
tio
nPhas
einvol
vesdef
ini
ngth
epurpo
sean
dscop
eo ft
hepro
ject
,thej
ust
ifi
cat
ionf
oru
nde
rtaki
ngi
tand
th
esol
uti
ontobei
mpleme
nted
.Itals
oin
vol
vesre
cru
iti
ngthepr
oje
cttea
ma n
dcarr
yin
goutaPha
seRevi
ew,b
efo
re
pr
oce
edi
ngtoth
enextsta
ge.

ABus
ines
sCas
eisd
evel
ope
d,des
cri
bi
ngthebus
ine
ssprob
lemtob
ea d
dre
ss
edbyt h
eproj
ect
,thea
lte
rnat
ive
s
ol
uti
onsandt
hepote
nti
alco
stsan
db e
nefi
tsas
soci
ate
dwi t
heac
h.TheBus
ine
ssCas
eisfo
und
ati
onforthe
9
 p
roj
ecta
sitf
ull
yde
scr
ibe
sth
epr
oje
ct,
ther
eas
onsf
orc
rea
tin
gita
ndt
heke
ybe
nef
itst
obep
rod
uce
d.

AFea
sib
il
ityStudyist
hencompl
etedtoas
cer
tai
nth
eli
keli
hoodo
ft h
ealte
rnat
iveso
lut
ion
sact
ual
lyd
eli
veri
ng
th
estat
edb e
nefi
tsintheBu
sin
essCas
e.Th
isi
sus
edtoi
den
tifythepref
erre
dsolu
tio
n,whi
chmus
tbeapp
roved
be
for
ep r
oceedi
ng.

TheTer
msofRefe
renc
ed e
scr
ibewhatt
heproj
ecti
nte
ndstoac
hie
veandthebou
ndar
ieswi
thi
nwh i
chi
tmu
st
ac
hie
veit.Thisi
ncl
udesthep r
oje
ctvis
io
n,obje
cti
ves
,sco
pe,del
i
vera
bles
,proj
ecto r
gan
isa
tio
nandan
I
mple
menta
tio
nPla
n.

Onc
ethepro
jecti
sde
fin
ed,i
tist
imetoa
ppo
intt
hePro
jec
tTe a
m.ThePr
oje
ctMa
nag
eri
sre
cru
ite
dtot
ake
onr
esp
ons
ib
il
it
yf o
rth
ep r
oje
ctandre
cru
itt
here
mai
ni
ngmemb
ersoft
hete
am.

F
inal
ly,aPha
seRe
viewisca
rri
edou
ttoen
suret
hatal
lofthereq
ui
reda
cti
vi
ti
esh
aveb
eenc
omp
let
eda
ndt
o
p
rovi
def o
rma
lapp
rovaltop
roc
eedtot
hene
xtphas
eofthep
r o
jec
t.

2.Pl
ann
ing

Th
ePlann
ingph
asei
nvo
lve
sth
ecr
eat
iono
fas
eto
fpl
ann
ingd
ocu
men
tswh
ichwi
l
lgu
idet
het
eamt
hro
ugh
outt
he
pr
oje
ct.

Th
eke
yst
age
sar
easf
oll
ows
:

Acompre
hens
iveProje
ctPlani
sc ri
ti
calt
othesuc
cesso
fthep r
ojec
t.I
tidenti
fi
estheWorkBrea
kdown
Str
uctur
e(WBS)o fphas
es
,act
ivi
tie
sandtas
kstobeund
ert
akentocomp
let
et h
ep r
oje
ct.I
tals
oide
nti
fie
s
th
eseque
nci
ng,du
rati
onanddepen
denci
esofta
sksa
n dth
ereso
urce
sandfina
nci
alexpe
ndit
urereq
ui
redto
co
mple
tethepro
ject.

TheRes
our
cePlanshoul
dgivead eta
il
edas
ses
sme
nto ftheres
ourc
esrequ
ire
dtounde
rtakethepr
oject
.It
sh
oul
dli
stther
equi
redlab
our,e
quipme
ntandmate
ria
lsandqu
anti
fytheamoun
tofea
chres
ourc
e.I
tsho
uldal
so
gi
veare
sou
rceus
agesc
hedul
etogivethePr
oje
ctManage
rwithacompl
etevi
ewofth
etota
lamou
ntofres
ourc
es
nee
deda
teachs
tage.

TheFi
nanc
ialPla
nd e
scri
besth
efi
nan
cia
lres
our
cesr
equ
ire
dduri
ngea
chsta
geoft
hepr
oje
ct.
Thetot
alc o
stofe achit
e mofl
abo
r,equ
ipme
ntandmater
ial
siscal
cul
ate
d,aswe
llasth
eto
talc
osto
f
un
d e
rta
kingeac
ha c
tivi
ty.

TheQu
ali
tyPlanli
st
st heq
u a
li
tyt a
rgetstha
tn e
edtobeach
ievedtoensu
retha
tt hepro
jec
tdel
i
vera
ble
s
me
etcus
tome
rr e
qui
reme
nts.
Qu a
li
tyAs s
uran
ceandQual
it
yControlac
tivi
ti
esar
esche
dule
dtomakes
uret
hat
th
ereq
uir
edleve
lofqua
li
tyisach
ievedthro
ugho
utthepr
oje
ct.

TheRi
skPla
nidenti
fi
esal
lfor
esee
ablepr
ojectr
isksan
dr a
testhe
mintermso
fthei
rli
kel
i
hoo
do foc
curre
nce
an
dp o
ten
tia
limpac
tontheproje
ct.Theri
sksar
ep ri
ori
ti
se
da n
dacti
onsi
dent
ifi
edt
oredu
cetheli
kel
ih
oodof
ea
chri
skandmin
imi
zeit
simpa
ctontheprojec
t.

AnAc
cept
anc
ePl
ani
scr
eat
edt
oen
sur
eth
atc
ust
ome
rac
cep
tan
cei
sso
ugh
tfo
rea
chd
eli
ver
abl
epr
odu
cedb
y
1
0
 t
hep
roj
ect
.Th
eAc
cep
tan
cePl
anp
rovi
desas
che
dul
eofAc
cep
tan
ceRe
vie
ws.

TheCommuni
cat
ion
sPland e
scr
ibe
st heinf
orma
tio
ntob epr
ovid
edtoproje
ctstakehol
der
st okee
pt h
em
i
nfor
medoftheprog
res
softhepro
j e
ct.Asch
edul
eofco
mmun
ica
tio
neven
tsandact
ivit
iesi
sdrawnuptoma
ke
su
rethatt
herig
htinfo
rmat
ioni
scommuni
cat
edtother
ig
htpeo
pleatt
heri
ghtti
me.

F
ina
ll
y,aPha
seRe
viewi
sca
rri
edouttoens
uretha
tallo
fthere
qui
redPl
ann
inga
cti
vi
ti
esh
aveb
eenc
omp
let
ed
a
ndtopro
vid
efor
malap
pro
valtop
r o
cee
dtot h
enextphas
e.

3
.Exe
cut
ion

Du
ringtheExecuti
onph a
sethedel
i
verab
lesa
rephy
si
call
yb u
il
ta ndpres
ent
edt othecus
tome
rforac
cepta
nce.Whi
le
ea
chd e
li
vera
bleisbe
ingcons
truc
ted,
agrou
pofmana
gementproce
sse
sarecar
rie
do u
tt omo
nito
randc
ontro
lact
ivit
ies
.
Onceal
lthedel
iver
abl
e sha
vebeenpro
duce
danda
ccepte
db ythecus
tome
r,theproj
ectisr
eadyfo
rcl
osu
re.

Thefirs
ta ndmos
timport
antstepistobuil
dt h
ed e
livera
bless
peci
fi
edint heTermso
fRefere
nce.Dur
ingthi
sacti
vit
y,
adetail
eddesi
gnofeachdel
ivera
blei
sc re
atedandth edel
i
ve r
abl
esarephysi
cal
lycons
truc
ted,t
este
da ndrevi
ewedto
de
te r
minewh e
thertheymee
tt hequa
litycri
teri
aandt heacce
ptanc
ec ri
teri
a.Whenal
lthecri
teri
ahavebeenmetthe
de
liverab
lesaresi
gne
do f
fonb ythec us
tomerandh and
edover.Atthisst
age,th
ep r
ojec
tisrea
d yforclo
sure
.Duri
ng
th
ec onst
ructi
onofthedeli
verab
lestheproje
ctman ag
erperfor
msse
ve ra
lmanage
mentpro
cess
estomoni
torandcontr
ol
th
et ime,
costandqua
li
tyofe a
chdeli
verabl
easfol
lows:

Ti
meMana
geme
ntin
volve
smoni
tor
ingandc
ontr
oll
i
ngt h
et i
mespe
ntbys
taffo
nthep
r o
ject.Ti
mes
hee
tsa
re
us
edtotra
ckandrec
ordti
mespent,s
otha
tthep r
ojec
tma n
age
rca
nasce
rta
int
heover
allpro
gre
ssoft
he
pr
oje
ct.

Co
stMana
geme
nti
nvo
lve
sid
ent
ify
ingp
roj
ectc
ost
san
dre
cor
din
gth
era
teo
fco
nsu
mpt
iono
fth
epr
oje
ct
bu
dge
t.

Qu
ali
tyMa
nag
eme
ntinvo
lve
sunde
rtaki
ngt
heQu
ali
tyAs
sur
anceandCon
trola
cti
viti
essp
eci
fiedinth
eQu a
li
ty
Pl
an,
toma
nag
eapro
ject
'sl
eve
lofqu
a l
i
tya
nden
sur
etha
tt h
ep r
ojec
tdeli
ver
abl
esmeetcus
tomerre
qui
reme
nts.

Ri
skMana
gemen
tinvo
lve
smoni
tor
inga
ndcon
trol
li
ngpro
jec
tris
ksbyt
aki
ngt
hes
tep
sne
ces
sa
ryt
opr
eve
nt
ri
sksa
ndmi
nimi
set
hei
mpacto
nthepro
jec
tsho
uldtho
ser
is
ksoc
cur.

I
ss
ueMan
ageme
ntinvo
lvesr
eso
lvi
nganyu
nfo
res
eeni
ss
uest
hatma
yar
is
ebe
for
eth
eya
ffe
ctt
hea
bil
i
tyo
fth
e
p
roje
cttomee
tit
sstate
dobje
cti
ves
.

Acc
eptanc
eMa n
age
mentinvol
vesc
arr
yin
gou
tAcce
pta
nceRevi
ewstog
ai
nthecus
tomer
'sa
ppr
ovalofea
ch
de
li
verab
le.I
fthecus
tome
rd o
esno
tacce
ptth
att
hedel
ive
rabl
esme
ett
hei
rreq
ui
remen
tsthes
ucc
essoft
he
pr
ojec
twillb
ecompr
omi
sed.

Co
mmu
nic
ati
onsMana
geme
ntinvol
vesc
ompl
eti
ngtheac
tivi
tie
sspec
ifi
edi
nth
eCo
mmu
nic
ati
onsPl
ant
oen
sur
e
th
ate
verys
takeh
old
errece
ive
stheri
ghti
nfo
rma
tio
n,attheri
ghtti
me.

F
ina
ll
y,aPha
seRe
vie
wisund
ert
ake
nt oen
sur
ethata
llofth
ere
qui
reda
cti
vi
ti
esi
nth
eExe
cut
ionp
has
eha
ve
b
eenco
mpl
ete
dandthep
roj
ecti
sre
adytopro
cee
dtothene
xtph
ase
.
1
1
 4.Cl
os
urea
ndE
val
uat
ion

ThePr oje
ctCl os
u reph as
ei nvolvesr el
e as
ingt hef i
nald el
iverablest ot hec us
tomer,h andi
ngo ve
rp ro
ject
documentati
on,t ermina
tingsuppl
ierc ontra
c ts
,r el
eas
ingprojectr es
ou r
cesa ndc o
mmunic
atingp ro
jectclo
suretoa l
l
stakehol
ders.Thef i
n a
lstepistoundertakea nE val
uati
ont odete
r minethee xtenttowhicht h
ep ro
jectwassuc
cessf
ul
andn oteanyl e
ssonslear
nedf o
rf uturep ro
j ec
ts.ThePr oj
ectClosu r
eRe portshouldli
stalltheacti
viti
esrequ
iredto
clos
et hep ro
ject,t oensurethatp roje
c tclosureisunderta
kens moothlyan deffic
ien
tly.On cetherepor
th asbeen
createdan da p
p roved,thec l
osu
r ea c
tivit
iessp e
cifi
edwithinth er eporta r
eu ndert
akena ndt heprojec
ti sthen
offic
iall
yc l
osed.On etothreemon thsaftert hep r
ojecthasbeenc lo
seda ndt h
eb us
ines
sh asbegu
nt oexper
iencethe
benefitsprovidedb ythep r
oject,iti si mportantt oundertakea nE valua
t i
on,oftenr eferr
edt oa saPo st
Implementati
onRe view(PIR).Thisall
owst hebusine
sstoide
n t
ifyth elevelofsucces
softhep roj
ectandlis
tanylesso
ns
learnedforfuturep roje
cts.

Evalu
at i
onisoftencarr
iedoutbya nindepen
dentperso
nt oprovi
deanu n
b i
as
edopini
onofthep r
ojec
to u
tcome.The
fi
rststepist orevie
wt heprojectperformanc
et odete
rmin
ewh ethe
rt h
ep roj
ectdeli
ver
edt hebenefi
ts
,mett he
obj
ectives
,o pe
ratedwithi
nt hescope
,a n
dp rod
ucedthed e
li
verab
lesontime,wi
thinbudg
etan dusi
ngtheallo
cated
res
ources.
Th erevi
ewa l
sonee
dst odete
rminewhethe
rt h
ep r
ojec
tc on
formedtothemanag
ementproces
sess
pecif
iedin
TermsofRe fer
ence.I
tshoul
da l
soiden
tifythekeypr o
jectachi
evement
s,fai
lur
esandanyles
sonslea
rnedforfuture
refer
en c
e.Theevalua
tio
ns h
oul
dr evi
ewh owtheproje
ctperfo
rmedagai
nsteac
hoft h
et a
rge
tssetduri
ngtheIni
tiati
on
andPlanningphase
softheprojec
t ,
iehastheproj
ect:

De
li
vere
dthebusi
nes
sbenef
itsdescr
ibe
dint h
eBusine
ssCase
?
Ac
hie
vedtheobj
ecti
vesspe
cifi
edintheTermsofRefere
n c
e?
De
via
tedfro
mt h
eorig
ina
lsco
p easdefi
nedintheTermsofRefe
renc
e?
Me
tthequa
li
tytarge
tsdefi
nedint h
eQu a
li
tyPlan?
Pr
oce
ededacc
ordi
ngtotheplannedDel
iver
ySc he
dule?
De
via
tedfro
mt h
ebudget
edp roj
ectexpendi
tureasdefi
nedintheF
ina
nci
alPl
an?
De
via
tedfro
mt h
eforeca
stresou
rcelevel
sasdefi
nedintheRes
ourc
ePlan
?

Thenextsta
geistoi
denti
fythee
xtenttowhi
cht
hep r
oje
cth
ascon
for
medtot
hema n
age
mentproc
ess
es(a
sse
toutin
th
eTe rmsofRe f
erenc
e)duri
ngtheExecu
tio
nphas
eofthepro
jec
t.Thes
ear
e:TimeManag
eme
nt,Cos
tMana
geme
nt,
Qual
i
tyMa nage
ment,Chan
geMana
geme
n t
,Ris
kManag
ement
,Co
mmuni
cat
ion
sMana
gementandAcce
ptanc
eManag
eme
nt.
Fi
nal
ly,theEval
uati
onsho
uld
:

L
is
tthemajorachi
evement
sfo
rthisprojec
tanddes
cri
bethepos
iti
veef
fec
tthateac
hachi
evementh
ashado
n
t
hecusto
mer'
sbusi
nes
s.
L
is
tanypr o
jectfai
lu
resandd
esc
ribetheeffe
ctst
heyhavehadonthec
ust
ome
r'sb
usi
nes
s.
De
scr
ibethele
sso
nslear
nedfr
omund e
rtaki
ngthi
spro
jectandli
stanyr
eco
mmenda
tio
nsforsi
mil
arpro
jec
tsi
n
t
hefuture
.

Su
cce
ss
fulp
roj
ectma
nag
eme
ntmo
del
sca
nof
tenb
eus
eda
ste
mpl
ate
sfo
rfu
tur
epr
oje
cts
.

1
2
 THEBASI
CSOFPROJ
ECTPL
ANNI
NG

I
ntr
odu
cti
on

Be
forecommenc
emen
to fanyproject
,thefi
r s
tthin
gt hatwenee
dt odoispro
jectpla
nning
.Anyreas
ona
blepro
jec
t
1
ma
nagercertai
nl
yunders
tandsimpor
tanc
eo fpla
nningap r
oje
ctwell
.Ca re
ful
lyp l
anne
dp ro
jec
ttake
sintoac
coun
t
ne
ces
saryaspec
tsofap r
ojec
t(e .g
.tas
ks,mil
est
one,sc
hedul
e,ri
sks
,communi
cat
ion,q
ual
ity
,etc.
)an
dp ro
videapla
n
whi
chprojec
tteamcanre
ferd u
r i
ngexe
cuti
on.

Wh
ati
sPr
oje
ctPl
ann
ing
?

Thepro
jectplanni
ngiscommonl
yp e
rcei
vedascrea
ting'
GanttCh ar
t'al
one,
wh i
chisi
nco
rre
ct.Ga
nttcha
rti
smerel
y
vi
sualr
eprese
ntati
onofp roje
ctsche
dule.
Infactpro
j e
ctplanisqui
tebr
oadercon
c e
pt.Apr
ojec
tpla
nexpres
se
sthe
ob
jecti
ves&r e
qui
rementsoftheproje
ctintermsof
P roj
ectScope
P roj
ectSchedul
e
R eso
urceRequ
ire
me nt p r
ojectcos
testi
mat
ion
P roj
ectQuali
tya nd
P roj
ectRiskManagement
Ap r
ojec
tp la
nningenab
lesp r
ojec
tma nag
ertotrans
lateproje
c treq
ui
rementint
oWo r
kbreakd
ownstr
uct
ure(WBS),
ta
sksli
st,Gant
tc ha
rts,res
ourceas
si
gnmentandri
skr e
gi
st
er,etc.

On
cepro
jectc
har
teri
sap
pro
ved,t
heproje
cti
sformal
lyi
ni
ti
ate
d.Pr
oje
ctp
lan
nin
gac
tivi
tyc
anb
egi
nba
sedo
nth
e
pr
oje
ctcha
rte
rdoc
ume
nt,
pro
jec
trequ
ire
mentd
ocu
me n
t.

Wh
ydowen
eedpr
oje
ctpl
ann
ing
?

Y
ouse
e,ca
reful&det
ail
edpla
nni
nghel
pustored
uc e
sri
ska
ndintur
nuncer
tai
ntyina
n ygive
np ro
jec
t.Inmet
icu
lou
sly
pl
ann
edproj
ect,p
rojec
tp l
anne
ratt
emptstoma
keap r
ovi
si
onfo
rpote
nti
aloc
curr
enc
e sofunce
rtai
nti
esinad
vance.
I
tistr
uethatpro
jectpla
ninadva
nce,c
annottakeca
reofal
lunf
ore
see
nevents
,ri
sks,anddevi
ati
onsneve
rthel
es
s;

1
3
westi
l
l,areinabet
terpo
si
tio
nthanha
vin
gn opla
nning
.Why?Wekn o
wwh a
tn e
edstob
edone,weca
norga
niz
eour
wor
ka ndals
o,wi
thwel
l-
pla
nnedpro
jec
twec anbett
erequ
ipour
sel
vestore
spon
da pt
lytopo
tenti
alr
is
ks,s
li
ppag
es,
et
c.Hencethebo
tto
mli
neis
,wear
eabl
etosa
veo nti
me,o
nreso
urc
esandasar
esul
twecans
aveoncos
ttoo
.

E
leme
ntso
fpr
oje
ctpl
an

F
igu
re2:
Ele
men
tso
fPr
oje
ctPl
ann
ing
1
.Pr
oje
ctSc
opePl
ann
ing

Anyp roj
ectisexpec
tedt oprovi
dei t
sstakeho
lde
rswithc
erta
inou
tco
me,whi
chisc o
mmonl
ytermedasprojec
t
del
ivera
ble
s.The
seproj
ectdel
iverab
lesdepe
ndsonthesco
peo
fthepro
jec
t.Ana
log
ic
all
y,def
ini
ngaprojec
tscopeis
li
ked ra
wingamap.I
nt hemap
,t hebounda
rie
saredrawntoi
ndi
cat
est
ret
ch/extentofagi
venter
r i
tor
y;si
mi
larl
y
pro
j e
ctscopeo
utl
ine
stheexte
n tofproje
ctdeli
vera
ble
s.

E
ssen
tiall
y,proj
ectscopeisthedefi
ni
tio
no fwhattheproj
ectise
xpect
edt oachi
eveandspe
cif
yt h
ebudgetofbo
th
t
imeandc osttha
tn eed
st obeprovi
si
onedtocreat
et hepr
ojec
td e
li
vera
ble
sb ef
oretheproj
ectgetsc
los
ed.Fort
he
b
estresult,on
en eedstot a
kec areofclear
lycarvi
ngoutp r
oje
ctd e
fin
iti
on&t hebud
geta
ryr e
qui
reme
n ts
.Mo
re
de
tai
li
n g&p rec
is
iondurin
gp roj
ectplan
n i
ngdefi
ni
telyhel
pt h
et e
amorga
nizethei
rworke f
fic
ien
tly&d el
ivert
he
pro
jectmoreeffec
tivel
y.Withoutapro
jectscop
e,pro
jectexe
cuti
onca
ngoh ay
wire.

Proje
ctDe l
iverabl
es
Tod e
fin
ep r o
jectscop
e,onenee
dst or
eferproj
ectreq
uir
ements
.Theproj
ectplan
nerneedstoli
stdownpro
jec
t
de
liver
ablei
t emsuna
mbig
uou
slys
tat
ingwhe
therthe
ya r
eI
nScopeo
rNoti
nScope
.So
,pro
jectsc
opeisa
bouto
utl
i
ning
theproj
ectd eli
vera
ble
s.Ba
sedo
np r
ojec
tscope
,proj
ectpl
anner
(s)cre
ate
(s)wor
kb re
akdownstru
ctur
e(WBS).

1.
1
. Wo rkBreakdownStruct
ure(WBS)
TheWBSisab
reakdown/decompo
sit
ionofpro
jec
tworkintodi
st
inctwor
kitemsathi
ghe
rlevel
.The
seworkite
msa
re
al
ig
nedwitht
hep rojec
tobjecti
vea ndcanhel
ptheprojec
tt e
amt ocre
ateexpe
cteddeli
ver
abl
es.Gene
ral
lyt
he
proj
ectt
eamca
nr ef
ert ot
hisworkitemhi
era
rch
ytodec
idewheth
eranygi
ventas
kisi
nclud
edinWBSo rn
ot.

E
sse
ntia
lly
,WBSisd
ecompos
it
iono
fp ro
jectwo
rkinahi
era
rch
ica
lfa
shi
onwh
ere
inwi
the
achd
esc
end
ingl
eve
l,i
tgi
ves
de
tai
lsofpro
jec
tdel
iver
abl
erequ
ire
df r
ompro
jec
ttea
m.

1
4
Tr
ian
gul
arCo
nst
rai
nts(TQR)

Th
ep ro
jects
copei
sge
ner
all
yco
nst
rai
ned
,wi
thr
esp
ectt
ofo
ll
owi
nga
spe
cts
1.T i
me
2. Qu
ali
ty
3.R e
sou
rce
s

I
fyoustr
etcha
nycorne
rofthetri
ang
l nF
ei ig
ure3:El
eme
ntsofProj
ectPla
nning
:thetri
ang
lege
tsd
is
tort
ed;s
imi
l
arl
y
a
nyc h
angei
nthesco
peofthepro
jectha
sdir
ecteffe
cton(ei
t h
eranyorall
)oft i
me,q
ual
it
yandres
our
ceso
fgive
n
pr
ojec
t.Vic
evers
a,a
nycha
ngeinti
meorco
storre
sour
cecanmaketh
ep r
oje
cts c
opeal
tere
d.

Andeachco
rnerofthi
stria
ngl
einturnhasc
osti
mpli
cat
ione.
g.a
nyaddi
ti
onofre
sou
rcetopro
jectca
nincr
easec
ostof
pro
ject,a
nydela
yind e
li
verycani
ncreas
ecos
tofproj
ect,anyco
mpro
mis
ecanq
uali
tycanha
vefurthe
reffec
tonc o
st
ofthepro
ject
.Hencecos
toftheprojec
tisdi
rec
tlydepend
entonpro
jects
cop
e&p roj
ects
copeintur
nisdepe
ndent
onproj
ectdel
i
verytime,q
ual
it
yp a
ramete
rs&res
ourc
esass
ig
nment.

2.
Del
ive
rySc
hed
ulePl
ann
ing

Onc
eproj
ectsco
peisd
ete
rminedandwor
kbrea
kdownst
ruc
tur
e(WBS)i
screa
ted
,then
extst
epi
stoc
reat
edel
ive
ry
ti
mel
in
e.Fo
re a
chofthedel
iverab
lewor
kite
mident
ifi
edi
nthewo
rkbrea
kdownst
ruc
tur
e(WBS)
,pro
jectp
lann
er
ne
edstoi
den
tif
ylis
tofac
tivit
iesnee
dtope
rfor
m.
Ac
tivi
ti
es
/Ta
sks
Ac
tivi
tie
sasmenti
one
dabo
ve,be
comeaba
si
sfores
ti
mati
on,
sche
dul
i
ng,
exe
cut
ion
,an
dmo n
ito
rin
gandco
ntr
oll
in
gofthe
pr
ojectwor
k.Foreac
hofthe
seacti
vi
ti
eshe
/shene
edstofi
gu
reou
t Ho wl
ongwi
lli
ttaketoco
mpl
etee
achact
ivi
ty
(d
ay s
,wee
ks)?

Wh
atki
ndo
fre
sou
rce
(s)r
equ
ire
dfo
rit
sco
mpl
eti
on(s
kil
lse
t,e
xpe
rie
nce
,et
c.)
?
Ba
sedo
ntheesti
mat
eofeffo
rtsre
qui
redtoc
arryoutea
chact
ivi
ty,on
ec a
nsu
muptoge
td u
rat
ionreq
ui
redforea
ch
de
li
ver
abl
e.Th
usworki
ngb
ackwar
d,pro
jec
tdeli
ver
yt i
mel
in
ecanbetwea
kedfu
rth
ert
oprovi
debett
erest
ima
tes
.
Mi
le
sto
nes
Amil
es
tonemar
ksasig
nif
ica
nte ve
nti
nt hep
roj
ect
.Gene
ral
ly,p
roj
ects
pon
sor
swo
uldr
efe
rtol
i
sto
fmi
l
est
one
sto
tr
acepr
ojec
tdeli
ver
yinrespe
ctofti
mel
i
ne&cos
tover
run
.

Ga
nttc
har
t
Thevi
sua
lrepre
sent
ati
onofpr
ojec
tsch
edul
ecanbevi
ewedthr
oughaGant
tchar
t.Ma
nyp o
rtf
oli
oman
ager
s&p r
ojec
t
sp
onso
rsfi
nditeas
ytoworkwi
thGant
tc h
art.
Sinc
eref
erri
ngtheGant
tchar
tforagi
venpro
ject
,pro
jectma
nage
r/
pro
jectpl
ann
er&o the
rst
akeh
old
erca
no pt
imi
ze/c
han
gethesc
hedul
efurt
her
.
Gene
ral
ly,thi
si
swh e
repro
jects
ponso
rssta
rtpushi
ngforag
gres
si
veproj
ectdead
li
newhic
hmig
htha
veb e
enind
ica
ted/
ag
reedearl
i
era ndso
meti
mesi
tb e
come
sar ea
lp r
obl
em.Insuchcas
e,th
er e
aso
nabl
ewayoutistoc
onsu
lttheproje
ct
sp
onso
rteam&p rovi
dethedeta
il
sofp r
oje
ctsched
ule
.Iftherearedi
ffer
ences
,hi
ghl
ydeta
il
edpro
jectsc
hedul
ecan
hel
pyout omakeyourpo
int
.Bas
edonthedis
cus
si
on,youmayagr
eetofo
ll
owin
gopti
ons
:
.R
1 es
chedu
lepr
ojec
tdeli
veryti
meli
ne[Ti
meImpli
cati
on]

1
5
 2. De
plo
yad
dit
ion
alr
eso
urc
es[
Res
our
ceI
mpl
i
cat
ion
]
.C
3 ha
nget
hes
cop
eofp
roj
ect[
Sco
peI
mpl
i
cat
ion
]
4. E
nfo
rcea
ddi
ti
ona
l/l
es
se
rQu
ali
tyc
hec
ks[
Qua
li
tyI
mpl
i
cat
ion
]
Aspro
jecttea
mc a
nmanageti
mel
ycompl
eti
onofp
roj
ectact
ivi
tiesb
ase
donproj
ectdel
i
verysch
edul
e,i
tisqu
ite
i
mpera
tivet
operf
ormdet
ail
edes
ti
mat
ionwo
rkonpr
oje
ctsc
hedul
e.Toe
sti
mat
ede
li
veryt
imel
in
e,g
ener
all
y,i
tin
vol
ves
per
for
mingf
oll
owi
ngpr
oce
sse
s.
F
ives
tepst
ocr
eat
ede
li
ver
ysc
hed
ule
De
fin
eTa
sks
/Ac
tivi
ti
es
2.
1
I
den
tif
ica
tio
nofi
ndi
vi
dua
l&s
pec
ifi
cta
skst
obep
erf
orme
dtoc
rea
tet
hep
roj
ectd
eli
ver
abl
es
Ta
sks
/Ac
tivi
ti
esSe
que
nci
ng
2.
2 Itistotakecar
eo fid
e nt
ifi
cat
ion&est
abl
is
hi
ngrela
tio
nsh
ipsa
mon
gth
epr
oje
cta
cti
vi
ti
ese
.g
.
Produ
c tf
il
li
ngac
tivi
tyt os
tartaf
terp
ackag
elab
ell
i
ngacti
vi
ty.
Re
sou
rcesReq
uir
eme
ntE s
timati
on
2.
3 Thi
sp ro
ces
scarryoutes
tima
tio
no fthet
ype(ski
l
lset/exper
ien
ce,e
tc.
)an
dqu
ant
iti
eso
f
mate
ria
l,pe
opl
e,eq
ui
pment
,etc
.requ
ire
dtop
erf
ormanyg
ive
nact
ivi
ty.
2.
4 Ta
skDura
tio
nsEs
timati
on
Th
eproc
esso
fappr
oxi
mati
ngthen
umberofworkper
iod
sneede
dtocompl
etei
ndi
vi
dua
lac
tivi
ti
es
wi
the
sti
mate
dre
sou
rce
s.Onec
anarri
veatth
esees
ti
matesb
ase
donei
thero
f
Expe
rt
sju
dge
ment(c
ons
ult
ingSu
bje
ctMa
tte
rExp
ert
)
Th
reePo
intEs
ti
mat
e(Mo
stl
i
kel
y,Op
timi
st
,Le
ssL
ike
ly)
Pa
rame
tri
cEs
ti
mat
ion(l
eng
th&h
eig
hto
fco
mpo
undwa
ll
,nu
mbe
rofl
i
neso
fco
de)
Some
times
,it
sagoodi
deat
oaddtol
era
ncef
ord
ura
tio
nofa
cti
vi
tyi
fyo
uar
eun
sur
eofe
xac
t
dura
tion(e.
g.
3we e
ks+
/-2day
s).
2.
5 Sc
hedul
eDe ve
lopme
nt
Thi
sisacr
iti
calp
roces
swhere
inpro
jectplan
n e
ran al
yse
sseq
uence
sofact
ivi
ti
es,fo
reacha
ctivi
ty
whatareth
e:dura
tio
nsrequ
ire
d,res
ourc
er eq
uir
ed ,a
ndc o
nstr
ain
tsari
si
ngduetosch
edul
i
ng.The
ou
tcomefro
mt hi
sexerci
sei
sap ro
jectschedul
e.Oncep ro
jectsch
edu
leisagr
eedbyimpor
t a
nt
st
akeho
lde
rs,i
tbeco
mesabas
eli
nefo
rthegivenprojec
t.
Tabl
e1:
5stepstocreateproj
ectdel
iver
ysche
dul
e

Thes
ef i
vest
e p
swillhel
puscre
atepro
jec
ts c
hedul
eandi
twoul
dbec
omeab
ase
lin
eforagi
venpr
oje
ct.Th
epro
jec
t
sc
hedulema
yc han
geasproj
ectprog
res
s;t
hischa
ngeca
nbeat
trib
ute
dtoch
angeins
cop
e,de
li
ver
abl
es,
qua
li
tya
ndris
k
as
pectsoftheproj
e c
t.

3
.Pr
oje
ctRe
sou
rce
sPl
ann
ing

I
tist
hep e
opl
ewhomaket
hep r
oje
ctwo
rkhe
nceiti
scri
ti
caltopl
anforpr
oje
cttea
m.Butp
roje
ctres
our
ceisno
t
j
ustab
outthepe
opl
etobein
volve
dint
hep
roje
ct,r
ath
erma t
eri
al
s,e
qui
pme
ntreq
ui
redfo
rsuc
ces
sfu
lco
mplet
iono
f

1
6
t
hep
roj
ect
.Ha
vin
gme
nti
one
dth
is
,ge
ner
all
yre
sou
rcep
lan
nin
gte
ndst
ore
vol
vea
bou
tpe
opl
e/s
taf
fin
gma
nag
eme
nt.

Hu
manRe
sou
rcePl
an
Th
isp
lant
rie
stoa
nswe
rfo
ll
owi
ngq
ues
ti
onsb
utr
ath
erp
rec
is
ede
tai
l
s:
. Wh
1 atki
ndso
fpe
opl
ear
ere
qui
redt
oco
mpl
etet
hep
roj
ectn
ece
ss
aryq
ty,
comp
ete
nci
es
?
2. Wh
ats
hou
ldt
heyd
or
ole
s&r
esp
ons
ib
il
it
ies
?
. Wh
3 omwi
l
lth
eyr
epo
rtt
o?
Thu
shumanre
sou
rcepla
nident
ifi
esa
nddoc
umen
tt hest
affi
ngre
qui
rement
sskil
ls
et,ro
les
,res
pon
sib
il
iti
esa
nda l
so
es
tab
li
shther
epor
tin
gstru
ctur
eofthep
roje
ctres
ourc
es.I
tal
sopr
ovi
d e
sthes
taf
fingpl
anwhic
hspeci
fi
esti
mel
in
eo f
ac
qui
si
ti
on&rel
eas
eofst
aff.
Th
estaf
fingpl
aninla
stdec
adeha
sbe
comequ
itei
mpor
tantf
orser
vice
sbas
edcompa
nie
swher
ethes
eco
mpa
n i
esst
rug
gl
e
wi
ththep o
olofres
ourc
einter
msofthei
ravai
la
bil
i
ty,ut
il
iz
ati
on;es
pec
ial
lyofthesc
arcer
eso
urc
ehavi
n gs
pec
ial
kno
wle
dge/s
kil
lse
ts.
Toar
riveathuma
nr e
sou
rcepl
an,pro
jectpla
nnern
eedtoref
ero
rga
niz
atio
nst
ruct
ure&fi
gur
eoutn
ece
ss
aryc
han
ges
andc
ompli
anc
esreq
ui
redforp
rojec
tr e
qui
rement
.Co
mpan
iesma
yha
vefol
lowi
ngo
rga
niz
ati
ons
tru
ctu
re:
. Hi
1 era
rch
ica
lOr
gan
iza
tio
n
2. Ma
tri
xBa
sedOr
gan
iza
tio
n
.F
3 l
ato
rga
niz
ati
on
Wh
atc
anwee
xpe
ctf
romh
uma
nre
sou
rcepl
an?
S/ I
tem De
scr
ipt
ion
No
A Ro
les&res
pon
sib
il
it
ies
Thi
ssecti
onoftheplanbroadl
ydesc
ribeshowreso
urcesshou
ldbe&h owt he
yareexpectedto
pe
rf o
rminordertodeli
vertheprojectoutco
me.
A.
1 Forseto fa ct
iviti
es&wo rka rea,Role
sa rei d
enti
fiedtoma ker es
ource
Role
acco
untablee
.g
.busi
n e
ssana
lysttoass
ess&processbus
ine
ssreq
ui
rements
A.
2 Thissec
tiondocumentsclea
rlyd es
crib
est h
ewo r
kap roj
ectteamme mberis
Respons
ib
ili
ty
expecte
dt oca
rryo uttoperfor
mp rojec
tactivi
t i
es
A.
3 I
fp roje
ctt e
amd oesnothaven ece
ss
aryc o
mpe t
encie
s,proj
ectoutcomeremai
ns
uncer
t a
in.Toass
essc o
mpetencyrequi
rementt hi
ssecti
ondesc
ribestheski
ll
Competenc
y s et
,e xperi
enc
e&c apa
cit
yr e
quir
ementc on
c e
r ne
da bou
tt hecomp l
eti
ono f
proje
cta cti
vi
ties
.Ba se
do nr eso
urcecompetencyr e
qui
rement
s;companyc an
underta
keh i
ri
ngort rai
ni
ngactivi
tie
s.

1
7
 Thi
sisani
mportan
tsect
ionwhic
hifimpl
ementedcanha
vecos
timpl
ica
tio
ntotheo
rga
niz
atio
n.Thi
s
se
cti
ond e
scri
bessta
ffi
ng&t ra
ini
ngrequi
remen
t,reso
urc
ec a
len
dars,re
lea
sepl
an,reward
s&
rec
ogni
ti
ons
,etc
.
C.
1 Thi
ssect
iontri
estoa
nswerfol
lo
win
gques
ti
ons
:
1.D oweh a
ver es
ourc
esofspeci
fi
edcompetenc
ies&e xperi
ence
?
Res
our
ce 2. Shoul
dwemo veint
ernalres
ourcetogi
venprojectorh i
renewones
?
a
cqu
is
it
ion 3.Ifn ewres
ourceist
ob ehi
red,s
houl
dh ebeont h
ec o.r
ollorco
ntrac
t?
4. Wi
llteamworkinac o
-loc
ati
onordisc
reteplace
sac r
ossge
ogra
phi
es?
5. Whatisth
ec os
t-be
nefitana
lys
isfo
rd ec
isi
onsmadeforaboveas
pects
?
6. Howstaff
ingacti
vit
ieswil
lbesync
h r
oni
zedwithHRd epa
rtment
?
C.
2 Th
iss
ect
iont
alksa
bou
tfo
ll
owi
ngp
oin
ts

Res
ourc
e Thedura
tio
nofeac
hkindofteammembe
rsr
equ
ire
dforproj
ect
ca
len
dars Ti
meli
neforhi
ri
ng(i
nter
n a
l/exte
rnal
)whensho
uldthe
sebes
tar
ted
De
p i
cti
ngres
our
cereq
ui
rementinca
len
daro
ftheproje
cttea
mduri
ngth
e
en t
irelifecycleoftheproject
C.
3 Thisp l
anp rovidesdetai
lsofthet ra
iningtob eprovi
dedf orprojecttea
ms oas
toma ket hemc ompetenttop e
r fo
rmp rojectacti
vitie
s.Thesecouldbeinhouse
trai
n i
ng,e xter naltrai
n i
ngs
,a ndc er t
ifi
catio
nsa sn eces
saryf ors p
onsor
s
St
affTraini
ng& compli
ancer equire
me n
ts.
rele
asepla
n
Thep rojectr esou
rcesneedtob erel
easedbasedonp ro
jecta c
tivi
ties&prog
r e
ss
made.Th issectiond es
cri
besth eapproacht ob et a
keni nr e
leas
ingreso
urces
underli
ningt hec o
st,qu
ali
ty&t imel
ineimpli
cati
ons.
C.
5 Inc
entive Thiss ectio
nt od ocu
mentc learo bjecti
ves& u nambig
uousc ondi
ti
onsf or
Pro
gram nominati
ons&r ewardproces
sund e
rli
ningthec o
st-b
enefitanal
ysis
.
A.
4 Authori
tyi swh atma r
kst h
ed i
fferencebetweensteeri
ngc o
mmitteeandworking
co
mmi tte
e .Th i
ss ecti
ono ft hed ocument,d es
cri
b e
swh ohaswh atki ndof
au
t hori
tyt op er f
orm/approve/reje
ct,e tc
.e .
gauthori
t ytoap pro
ver es
ource
Autho
rity
movement,t h
er igh
t/authori
tyt oa p pr
ovep ro
jects chedu
le,q ua
li
tyg ate
checkli
st,et c
.Wi del
ykn ownse cr
ete-Te a
mme mbersop er
ateb e
stwh enthei
r
i
nd i
viduallevelsofauthori
tyma tc
ht hei
rindivid
ualrespons
ibi
li
tie
s
B Or
gan
ogr
amf
orpr
oje
ct
Thi
scanb ef or
malorinfo
rmalch
artt
oind
ica
tet e
ammembe
rsi
nvol
vedinthepr
oje
ctwith
re
porti
ng/worki
ngrel
ati
ons
hip
.Itmayh
elppro
jec
ts po
nso
rstot
akeint
oacc
ounto
rga
niz
ati
on
de
si
gnsal
readyinpl
ace
.
C Sta
ffin
gma n
agemen
tplan

Ta
ble2:
Pro
jec
tHu
manRe
sou
rcePl
an

4.
Pro
jec
tCo
stPl
ann
ing
Cos
tplann
inge
xerci
sehe
lpstoba
sel
i
netheo
vera
llpr
oje
ctbu
dge
tinter
mso
fmone
ysotha
tpro
jec
tspo
nso
rs&proj
ect
st
eeri
ngcommi
tte
ec a
nagreeonproj
ectde
li
ver
ysched
ulea
swella
sthepa
yme
ntsch
edul
e.I
ttri
est
oiden
tif
yc o
st
el
ement
stobecons
umeddu
ringt
heproje
ctl
if
ecy
cle
ssuc
has
1
8
 Mo
net
aryr
eso
urc
esr
equ
ire
men
t(p
eop
le,
mac
hin
ery
,ma
ter
ial
,eq
ui
pme
nt,
spa
ce,
etc
.)
Pr
ovi
si
onsf
orr
is
kma
nag
eme
nt(p
eop
le,
mac
hin
ery
,ma
ter
ial
,eq
ui
pme
nt,
spa
ce,
etc
.)
Qui
tec
ommonl
y,co
stpl
ann
ingisob
servedtobea
niter
ati
vepro
ces
swhere
inpro
jectpla
nnerupda
tetheco
stofproj
ect
ba
sedoni
nforma
tio
nupda
t e
sa va
il
ablewithhi
m/he
r.Asyo
uwo u
ldhavese
en,i
ni n
iti
alpha
se,theROMest
imat
esare
wi
thi
nab r
oadrang
eof50%oft h
ep rop
osede
sti
matea
ndasproj
ectpro
gre
sse
s,thees
ti
matemaygetup
datedtothe
tu
neof20%orle
ss
.

Wh
atc
anwee
xpe
ctf
romPr
oje
ctCo
stpl
an?
Co
ste
sti
mat
espe
rac
tivi
ty
Si
nceacti
vity/tas
kformthebas
isfo
resti
mati
onofeff
ort,
durat
ionre
qui
red
;pro
jectco
sti
sge
nera
ll
yissu
mmedup
ba
sedoncostesti
mate
softhea
c t
ivi
tie
sinvol
ved.Ju
stli
keeff
ort/du
rati
ones
ti
mateofa
nacti
vi
ty/ta
sk,co
st
es
ti
ma t
eofa nacti
vi
typrovi
desqua
nti
fia
b l
eas
ses
sme
ntexpres
se
dintermso
fcurr
encyli
keNa
ira
,Euro
,USD,SD,
et
c.Itise
xp ec
tedtocapt
urecos
timpli
cati
onof
Pe
opl
e,eq
ui
pment
,fa
cil
i
t i
es
,etc
.req
ui
r e
dtocomp
let
egivenac
tivi
ty
I
nfl
ati
on,
exch
anger
atesapp
li
cabl
eforcon
textofth
ea c
tivi
ty

F
act
orsc
ons
ide
redf
ore
sti
mat
es
Th
iss
ect
ionwi
l
ldo
cume
nth
owc
osti
sde
ter
min
ed/wh
ate
leme
ntsf
orme
dth
eba
si
sofc
oste
sti
mat
ions
ucha
s
Wh
ata
lla
ss
ump
tio
nsa
rema
de?<c
urr
entve
ndo
rwi
l
lsu
ppl
yat1
0%d
is
cou
nte
dra
te>
Wh
ata
llc
ons
tra
int
sar
eap
pli
ed?<ma
xnu
mbe
rofs
eat
s,mi
nel
ect
ric
ityr
equ
ire
men
t>
Wh
ata
llp
ara
met
ersf
orme
dasab
asi
sofe
sti
mat
e<n
umb
ero
fli
neso
fco
de,p
ers
qua
ref
eeto
fwo
od,n
umb
ero
f
s
eat
s,e
tc.
>
Wh
ati
sth
eco
nfi
den
cel
eve
lofe
sti
mat
e?An
dWh
y?<8
0%?
>

5
.Pr
oje
ctQu
ali
tyPl
ann
ing

Th
erea
reva
rio
uskn
owna
ppr
oac
hest
oen
sur
epr
oje
ctq
ual
i
tys
omeo
fth
esea
re
1.S i
xSigma(6)
2. Co
stofQuali
ty(CoQ)
3.T o
talQual
ityMan
agement(TQM)
4. F
ail
ureModeandEffec
tAn al
ysi
s(FMEA)
5.Inter
natio
nalOrg
aniz
ati
onforStan
d a
rdi
zat
ion9
001
,et
c.
Al
lofthe
seapp
roa
chese
ss
enti
al
lyal
ignwit
hp r
inc
ipl
eso
fpr
oje
ctma
nag
eme
nts
ucha
sca
ref
ulp
lan
nin
gina
dva
nces
ave
al
otla
ter,h
encet
hiss
ect
ionb
ecome
sn e
ces
sar
y.

Wh
atd
oespr
oje
ctq
ual
it
ypl
ann
ingi
nvo
lve
s?
Toc
rea
tep
roj
ectq
ual
i
typ
lan
,pr
oje
ctp
lan
nern
eedt
oid
ent
ifywh
ata
ret
heq
ual
i
tyr
equ
ire
men
tso
fth
epr
oje
ct,
1
9
whi
chal
lst
and
ardsa
rewes
uppos
edt
oco
mpl
ywi
tha
ndi
nwh
atma
nne
r.Su
rel
ypr
oje
ctq
ual
i
typ
lan
sun
der
goe
sch
ang
es
ju
stast
hemas
terpr
oje
ctp
lan
.

Wh
atc
anwee
xpe
ctpr
oje
ctq
ual
it
ypl
ant
ohi
ghl
ig
ht?
Sr
. I
tem De
scr
ipt
ion
No
1 Qu
ali
tyProc
ess&Po
li
ci
es
Thepo
li
ci
esa
boutq
uali
tyass
ura
ncep r
oces
stobef o
llo
wed,qua
li
tycontro
lstobeinp l
ace
,proc
ess
i
mpro
veme
ntbei
nga
dopte
da r
edetai
l
ed
2 Proj
ectpla
nnerneedtobui
l
dt hebus
ine
sscas
estopre
sen
tc os
t-b
enefi
tan
alys
is
ofqua
li
tyass
uran
ce&c on
trolp
roces
stodemons
trat
ebenef
itsof:
:
Si
gni
fi
can
tavo
ida
nceo
fre
wor
k
Co
st-
Benefi
t
Analy
sis I
ncr
eas
einp
rod
uct
ivi
ty
Qua
li
ty&Rel
ia
bil
i
tyo
fdeli
ver
abl
es
,e t
c .
fact
orswh
ichwo
uld
s
ati
sf
yqu
ali
tye
xpec
tat
ion
sanda
cco
mpanyi
ngco
stimpl
ic
ati
on.

3 Co
sto
fQu
ali
ty Th
iss
ect
iong
ive
sst
ake
hol
der
sde
tai
l
sofe
sti
mat
edc
ostt
obei
ncu
rre
d
d
uri
ngtheproj
ectli
fec
ycl
ebyvir
tueofqua
li
tyc o
ntr
ol&q
ual
i
typ
roc
ess
:
b
ifu
rca
tin
g/h
igh
li
ght
ingt
heco
stp
roj
ect
ioni
ntermso
f
Co
nfo
rma
ncec
ost(Pr
eve
nti
onc
ost
s,a
ppr
ais
alc
ost
)
No
n-Co
nfo
rma
ncec
ost(i
nte
rna
lfa
il
urec
ost
,ext
ern
alf
ail
.co
st)
4 Thi
ssecti
onwillesta
bli
sht heme tricsb ase
do nwh i
chq ual
itycontro
lscanbe
appl
ied
.E s
tabl
i
shi
ngq ua
li
t yme tric
si sve ryimport
a nttoe nsu
restabi
li
tyand
perfo
rmanceoft hep roject.Th ep a
r amet
ers&p e
rmiss
ibl
eva l
uessuchas
Qu
ali
tyMetri
cs
avai
la
bil
it
y(a ccepta
ble
:9 8.95%),f a
ilurer ate(0.02%)&f reque
ncy,budg
et
cont
rol(cos
toverrun<4% ),etca l
lt heseessen
tial
lygoverns&i n
dica
teheal
th
oftheproj
ecttothestakeholders.
5 Base
do nthebestp r
acti
c e
s,th ep rojectquali
typ lann
erma yp ro
videqua
li
ty
Qua
li
tyCheckl
is
tc hec
kli
stt oe ns
ures peci
fics eto fp r o
jecta cti
viti
esa rep erf
ormedin
sta
ndardi
zedmanne
r .
Suchc hecklis
tsa requit
eu s
efulinqual
itycontr
ols
.
6 Thi
sischartreprese
ntatio
nt ovi suali
zep roce
ssstabi
li
ty&p erfo
rmance
.The
proj
ectp l
annerneedstosp e
c i
fyt h
eb o
u n
dary&t hre
sholdli
mitstoind
ica
te
Cont
rolCh
arts
whenp r
ojectsta
bil
ityorp erforma nceisg e
ttingcompromi
sed.Atwh a
tlevel
s
who
sinte
rventi
onisexpectedet cisbei
n gcharte
do ut.
Tabl
e3: ProjectQu al
ityPl a
n

6
.Su
ppo
rti
ngPl
ans
6
.1Ri
skMa
nag
eme
ntPl
an

20
As
sumi
ngyouarerespo
nsi
bleforse
tti
ngupofap owerplan
ta ndinthewakeofrecentmi
sh
apsocc
urre
dinsomeothe
rc ou
ntry,
go
vernmen
th asenf
orce
ds tr
ing
entcompl
ia
ncerequi
reme
ntoff ai
ls
afemec
hanis
msateverypos
si
bl
estag
eso
fp owerge
n e
rati
on&
di
spos
almana
gement
.Andt hi
scompl
ia
ncereq
ui
r e
mentwil
lgetappli
cabl
etoallexi
st
ingaswe
llasne
wp o
werplants
.Youwoul
dbe
st
randedi
fyouh a
venotthough
tofoccur
renceofthi
sevent.
Wh a
twouldyoudo
?Wouldn
tyo
ub eb
ette
roff,
ify o
uhavehadris
k
mi
tig
ati
onpla
nt ofac
esuchevent?

Thep
roje
ctriskisfut
uris
ti
cu nc
erta
int
yt ha
tma yocc
urduringl
ifeofaproj
ectan
dc anaffe
ctpr oj
ectde
liverab
les
.Theri
sk
ca
nberecord
edt hro
ughcause
-ef
fectanal
ysi
s.Th
ec a
useofr i
skcoul
dbesomehypo
thes
is,l
i
mitat
ion,req
ui
rement,etc
.andthe
ef
fec
tcoul
db esl
ipp
ageoftime
li
ne,c
ostover
run/sa
ve,per
formanc
ed e
gra
dati
on/i
mpro
vement,e
tc.ofthepro
je c
tf o
rexampl
e
ne
wregu
lato
ryc o
mpli
ancemaybeenf
orce
donp owe
rp r
ojec
ts,
e c
onomi
cunce
rtai
ntymayle
adtohig
herc o
stofl
abour,et
c.

Pro
jec
tris
kmana
geme
ntisabo
utas
se
ssi
ngfut
ureunc
ert
ain
tie
swhichca
nh avepo
tent
iali
mpa
ctonp r
oje
cto
bje
cti
vesa
ndt
he
exe
rci
seo
fcre
ati
ngri
skman
age
men
tp l
an,p
repar
est
eamfo
reffec
tive
lyman
agin
gtho
seunce
rta
int
ies
.

Wh
atc
anwee
xpe
ctf
rompr
oje
ctr
is
kma
nag
eme
ntpl
an?

Sr
. I
tem De
scr
ipt
ion
No
1 Ri
skI
den
tif
ica
tio
n
Thes
ucce
ssoftheris
kmanag
eme
ntdep
end
sonthep
ro-
acti
ven
esse
xhi
bit
edbypr
oje
ct
I
den
tif
ica
tio
n
1
.
1 te
aminid
entif
ying&redu
cin
gef
fec
tofri
skso
npro
jec
t.Thi
scanbef
aci
li
tat
edi
fri
sk
pro
ces
s
i
dent
ifi
cat
ionpro
c e
ssi
swel
l

21
 d
ocu
men
ted&i
sea
syt
oun
der
sta
ndf
ort
eamme
mbe
rs.
Ita
ls
o
Thepro
jectri
skpl
anne
rspe
cif
iesc
ateg
ori
eso
ftheris
ksbas
edo
nth
epo
ten
tia
limp
act
1
.
2 Ri
skCa
teg
ori
es
onth
ep r
ojec
tobj
ecti
vee.
g.
cata
stro
phi
c,s
evere
,lo
w,etc
.
2 Ri
skAs
ses
sme
nt 6
.2
Ri
skp
roba
bil
i
tya
nd We
lle
sta
bli
sh
edc
rit
eri
onst
ohe
lpt
eamme
mbe
rst
oas
se
ssr
is
kpr
oba
bil
i
ty&i
mpa
ct.
2.
1
i
mpact
Thepl
antoin
dic
atewhatcoul
dberi
skto
ler
anc
ele
velth
atwoul
dbeacce
pta
bleto
2.
2 Ri
skTo
ler
anc
e st
ake
hol
der
sandwhats
trat
egytob
eado
pte
difri
skl
eve
lcro
ss
est
heto
ler
ancel
evel
.

Ri
skRes
ponse
s
3 Ther
is
kp l
annermu
std
efi
neu
nde
rwh
atc
ond
iti
onsr
esp
ons
esh
oul
dbet
oavo
id,a
cce
pt,mi
ti
ga
teo
rtr
ans
fer
th
eris
k.
4 Ri
skMana
gement
4.
1 Me
cha
nis
m I
tou
tli
neswh
ata
ppr
oac
htot
ake
,wh
omt
oco
nsu
lt,
wha
tut
il
it
ytou
se,
etc
.
Th
isse
cti
ons
p e
cif
ieswhos
houl
ddowha
tifri
sko
ccu
rs.
Iti
snotu
ncommontofi
nda
rmi
es
Ro
lesand
4.
2 wo
rldove
rhavedefin
edpers
onne
ltoc
omma
ndando
wnspe
cif
icr
esp
o ns
ib
il
ity
.
r
espo
nsib
il
iti
es

Bu
dge
tPr
ovi
si
oni
ng Thi
ssec
tio
nma r
ksbudg
etp
rovi
si
oni
ngf
orkn
own&u
nkn
ownr
is
ksa
ndp
rovi
de
4.
3
ju
sti
fi
cat
iono
fdoi
ngs
o.
4.
4 Ri
skTr
acki
ng I
tde
tai
l
swh
owo
uldt
rac
kri
sk,
inwh
atf
req
uen
cy,
wit
hwh
ati
npu
ts,
etc
Co
mmu
nic
ati
onPl
an
Pr
oject
sgetsucces
sfu
llydel
ive
ryonl
ywh e
np e
opl
eworktoget
her.Proj
ectte
amc anworktog
eth
eron l
ywh e
ntheyknowwhat
th
eyshoul
dd oandtheywoul
dkn o
wthis
,on
lywhenthe
yareinfo
rmedabouti
t.That
sthepr
eci
serea
sonwhyorga
niz
ati
onss
hou
ld
ha
vec o
mmunica
tio
np l
an.Co
mmuni
cati
onpl
anisa
boute
sta
bli
sh
ingappro
pri
atechan
nelst
oletco
rrec
tinforma
tio
nflo
wt o
p-do
wnas
wel
lasbot
tom-upmanner
.

I
dentif
yingProj
ectStakehol
ders
Thefir
stt h
ingtha
tn ee
dstob edoneatthetimeofcre
ati
ngcommun
ica
tio
np l
anforaproj
ecti
s,toiden
tif
ystake
hol
der
softhe
pro
jecta n
dt he
irinf
ormati
onr e
levanc
e(e xt
e n
tofinfo
rmati
on&t i
meofrece
ivi
ng/s
har
ingi
nfor
ma t
ion
).Sta
keho
lde
rscou
ldbe
cu
stomers(in
terna
l/exte
rn a
l),vendor
s,empl
oyees
,par
tners
,etc.a
ndofc o
urs
eatd i
ffe
rentl
evelsinthepro
jec
torga
niz
ati
on
wi
thd i
fferen
tia
linte
rest
,importa
n c
e&i n
flue
n c
eoverpro
ject
.

Pl
anni
ngprojectco
mmu n
icati
on:
I
tisi
mporta
n tforpro
jectmanage
rt oc
ate
gor
izep
roje
ctsta
keh
old
ers&id
ent
ifyaptcommu
nic
ati
oncha
nne
lsa
sperst
akehol
ders

ca
teg
ory.Sucharra
n g
ementwills
aveproj
ectmana
ger
st
imedu
ringpr
oje
ctexec
utio
nwh i
ledea
li
ngwi
thamo
untofinf
ormati
on
he
/sherec
eives&hastocommuni
cat
e.

J
ustfo rexampl
e,so
mestakeho
lde
rsnece
ss
ari
l
yh avet
or ec
eivecert
ainin
format
ion(e.
g.pr
oje
ctspo
nso
rstokno
wa bou
t
a
chie
vement/fa
il
uretoach
ievemil
es
ton
esinre
spe
ctofspe
cif
ictime
li
ne)si
mi
lar
ly;proj
ectpl
anne
rca
nidenti
fyc
ate
gor
ieso
f
pr
ojectst
akeho
lder
ssuc
hasfol
lows

F
ore
achoft
hei
den
tif
ieds
take
hol
derc
ate
gor
y,t
her
eha
stob
emo
deso
fco
mmu
nic
ati
ont
hatwen
eedt
oes
tab
li
sha
sap
pro
pri
atet
o
t
hec
onte
xtoft
hepro
ject
.

Pr
oje
ctma
nag
ern
eedt
obec
lea
rab
outh
owi
nfo
rma
tio
nwo
uldb
ega
the
red&s
har
ed
Re
cei
vi
ngi
nfo
rma
tio
n:s
hou
ldi
tbet
hro
ughme
eti
ng(e
.g
.Us
erAc
cep
tan
ceTe
stme
eti
ngwi
thc
ust
ome
r)
22
 o
rovere
mai
l(c
oll
ects
tat
uso
fac
tivi
ti
es
/is
sue
sove
rema
ilo
rs/wt
oolf
romt
eamme
mbe
rs)
ors
ome
o
the
rmea
ns
Sh
ari
ngI
nfo
rma
tio
n:s
hou
ldi
tbed
onet
hro
ughme
eti
ng(e
.g
.st
ake
hol
derme
eti
ng)&t
hens
har
ingMo
M
ma
ilo
rove
rema
il(p
roj
ecta
cti
vi
ti
esa
ret
obec
omp
let
edb
yte
amme
mbe
rs)

Wh
atc
anwee
xpe
ctf
romc
ommu
nic
ati
onpl
an?

Sr. Todi
st
ribu
te/s
har
e Tor
ece
ive
No
1.
1 Mu s
tInf
orm Mu
stg
etr
esp
ons
e/u
pda
tef
rom
1
.
2 Sh
oul
dIn
for
m Sh
oul
dge
tre
spo
nse
/up
dat
efr
om
1
.
3 Co
uldPo
ss
ib
lyI
nfo
rm Co
uldPo
ss
ib
lyg
etu
pda
tef
rom
1
.
4 Ne
edn
oti
nfo
rm Ne
edn
otg
etu
pda
tef
rom

Sr
.Importan
c e OtherFacto
rs
No
2.
1 Cri
ti
cal|Inf
ormati
on/act
ion I
mmediat
e(t i
me,f
requ
ency)
2.
2 Ma
ndatory|Inf
ormati
on/act
ion Aspersche
dule(ti
me,fr
equen
cy)
2.
3Infor
mationonl
y Emai
l/pres
srel
eas
e/Lang
uag
e,forma
t
2.
4F o
ractio
n&u pdate
s Author
itytosha
re/rece
ive/commi
t
2.
5 Ca
nIgnore|Confi
denti
al Esc
alat
ionMatri
xforrefe
rence
Tabl
e4: Cat
egor
iza
tio
nofpro
jectsta
kehol
ders&inf
ormati
on

6
.3Pr
ocu
reme
ntPl
an

Pro
jectproc
ureme
ntp l
andocument
sp u
rcha
sepol
ic
yi l
lu
str
ati
ngp u
rcha
seproc
ess
,buy/l
eas
e/re
ntde
cis
io
ns,vend
or
se
lec
tio
n,neg
oti
ati
on,fi
nanc
ialco
ncurr
ence
,dura
tio
n,leg
alc
oncurr
ence
,etc
.Als
oitsho
u l
dchal
koutr
ole
sautho
riz
ed
tomakete
nderi
ngproc
ess
,fi
nanci
al&leg
alc
oncu
rrence
,andapp
roval
/rej
ect
iondec
is
io
n.
Wh
atc
anwee
xpe
cti
npr
ocu
reme
ntpl
an?
Apa
rtfro
mabovefact
ion
sproje
ctpla
nnerne
edstospe
cif
yho
wp ro
cur
ements
tat
e me
ntofwo
rk(SoW)o
rRFQ/RF
Tt o
beo
rga
niz
edortrac
ked,so
urci
ngcr
ite
rio
n,ve
ndorse
lec
tio
ncr
ite
rio
nsaswe
lld
ocumentt
hemake
-bu
ydec
is
io
nappr
oac
h
&es
cal
ati
onmatr
ixforthesa
me.

23
 SOF
TWAREPROJ
ECTMANAGE
MENT

Th
ejo
bpa
tte
rno
fanI
Tco
mpa
nye
nga
gedi
nso
ftwa
red
eve
lop
men
tca
nbes
eens
pli
tint
wop
art
s:

So
ftwa
reCr
eat
ion

So
ftwa
rePr
oje
ctMa
nag
eme
nt
Apro
jecti
swe
ll
-def
ine
dta
sk,whi
chisac
oll
ect
iono
fse
vera
lope
rati
onsd
onei
nor
dert
oac
hie
veag
oal(f
ore
xamp
le,
s
oft
warede
vel
opme
ntandd
eli
ver
y).APro
jectcanb
echa
rac
ter
ize
das:

E
ver
ypr
oje
ctma
yha
sau
niq
uea
ndd
is
ti
nctg
oal
.

Pr
oje
cti
sno
tro
uti
nea
cti
vi
tyo
rda
y-t
o-d
ayo
per
ati
ons
.

Pr
oje
ctc
ome
swi
thas
tar
tti
mea
nde
ndt
ime
.

Pr
oje
cte
ndswh
eni
tsg
oali
sac
hie
vedh
enc
eiti
sat
emp
ora
ryp
has
eint
hel
i
fet
imeo
fano
rga
niz
ati
on.

Pr
oje
ctn
eed
sad
equ
ater
eso
urc
esi
nte
rmso
fti
me,
man
powe
r,f
ina
nce
,ma
ter
iala
ndkn
owl
edg
e-b
ank.
S
oft
war
ePr
oje
ct
ASoftwa
reProje
ctisth
ecompl
etepr
oce
dur
eofsoft
waredeve
lop
men
tfromr e
qui
reme
ntgat
her
ingtotes
ti
ngan
d
mai
nte
nanc
e,car
rie
doutacc
ord
ingtot
heexe
cut
ionmeth
odo
lo
gie
s,i
naspe
cif
iedper
iodoft
imetoach
ievei
nte
nde
d
so
ftwa
reprod
uct.

N
eedo
fso
ftw
arep
roj
ectm
ana
ge
men
t
So
ftwareissa
idtobeaninta
ngi
blepro
du c
t.Sof
twared e
velop
mentisakin
dofa l
lnewstreaminworl
dbus
ine
ssan
d
th
ere
sverylittl
eexper
ien
ceinb u
il
dingso
ftwareproduc
ts.Mos
tsoft
wareprod
uctsaretai
lormadetofi
tcli
ent
s
re
qui
remen
t s
.Themosti
mporta
ntisthattheunderlyi
ngtechno
lo
gychang
esandadvanc
essofrequ
entl
yandrapi
dl
y
th
atexperie
nceofoneprod
uctmayn o
tb eappl
i
edt otheotherone
.Alls
uchbus
ine
ssandenvir
onment
alc
onst
rai
nts
br
ingr
iskinsof
twarede
velo
pmenthenc
eitises
sen
t i
altomana
gesof
twarepr
oje
ctseff
ici
ent
ly.

Thei
mag
eabo
ves
howstr
ipl
econs
tra
int
sfo
rsof
twarepro
jec
ts.I
tisanes
se
nti
alpa
rtofs
oft
wareor
gan
iza
tio
nto
de
li
verq
ual
i
typr
oduc
t,kee
pin
gthecos
twi
thi
ncli
ent
sbu
dge
tc o
nst
rai
nandde
li
verth
epro
jecta
spersch
edul
ed.
24
The
reares
eve
ralfa
cto
rs,b
othi
nte
rnalande
xte
rna
l,wh
ichma
yimp
actt
hist
rip
lec
ons
tra
int
ria
ngl
e.An
yoft
hre
e
fa
ctorc
ans
evere
lyi
mpac
ttheot
hertwo.

The
refo
re,so
ftwa
rep
roj
ectma
nag
eme
nti
ses
se
nti
alt
oin
cor
por
ateu
serr
equ
ire
men
tsa
lon
gwi
thb
udg
eta
ndt
ime
co
nst
rai
nts.

S
oft
war
ePr
oje
ctM
ana
ge
r
Aso
ftwa
reproje
c tman
age
risapers
onwhoun
derta
kesthere
spo
nsi
bi
li
tyofexec
uti
ngtheso
ftwarepr
ojec
t.Sof
twar
e
pr
oje
ctmana
geristho
roug
hlyawa
reofal
lth
ep h
ase
sofSDLCtha
tt h
esoft
warewou
ldgothr
oug
h.Proj
ectmana
germa
y
ne
verdi
rec
tlyin
vo l
veinprod
uci
ngthee
ndprod
uctbutheco
ntro
lsandman
age
stheac
t i
vi
ti
esin
volve
dinprodu
cti
on.

Aproje
ctmana
gercl
ose
lymoni
tor
sthedevel
opme
ntpro
cess
,prep
aresande
xecu
tesva
rio
uspla
ns,a
rra
nge
snec
ess
ary
a
nda de
qua
tereso
urce
s,mai
nta
insco
mmunic
ati
onamo
ngalltea
mme mbe
rsinor
dertoaddre
ssis
sue
sofcos
t,b
udge
t,
re
sou
rces
,ti
me,
qual
it
yandcust
omers
ati
sf
a c
tio
n.

L
etu
sse
efe
wre
spo
nsi
bi
li
ti
est
hatap
roj
ectma
nag
ers
hou
lde
rs-

Ma
nag
ingPe
opl
e

Ac
tasp
roj
ectl
ead
er

L
iai
so
nwi
ths
take
hol
der
s

Ma
nag
ingh
uma
nre
sou
rce
s

Se
tti
ngu
pre
por
tin
ghi
era
rch
yet
c.
Ma
nag
ingPr
oje
ct

De
fin
inga
nds
ett
ingu
ppr
oje
cts
cop
e

Ma
nag
ingp
roj
ectma
nag
eme
nta
cti
vi
ti
es

Mo
nit
ori
ngp
rog
res
san
dpe
rfo
rma
nce

Ri
ska
nal
ysi
sate
ver
yph
ase

Ta
ken
ece
ss
arys
tept
oavo
ido
rco
meo
uto
fpr
obl
ems

Ac
tasp
roj
ects
poke
spe
rso
n
S
oft
war
eMa
nag
eme
ntA
cti
vi
ti
es
So
ftwa
rep
roj
ectma
nag
eme
ntc
omp
ris
eso
fan
umb
ero
fac
tivi
ti
es
,wh
ichc
ont
ain
spl
ann
ingo
fpr
oje
ct,
dec
idi
ngs
cop
eof

25
so
ftwarepro
duc
t,es
t i
mati
onofcos
tinva
rio
ust
erms
,sc
hed
uli
ngo
fta
sksa
nde
ven
ts,
andr
eso
urc
ema
nag
eme
nt.
Pro
jec
t
mana
gemen
tacti
vit
iesmayi
n c
lud
e:

Pr
oje
ctPl
ann
ing

Sc
opeMa
nag
eme
nt

Pr
oje
ctE
sti
mat
ion
P
roj
ectP
lan
nin
g
So
ftwarepro
jec
tpl
anningista
sk,whi
chisper
for
medbe
for
etheproduc
tio
nofsoft
warea
ctua
ll
ystar
ts.I
tisther
e
fo
rt h
es o
ftwar
eprodu
ctionbutinvo
lve
sn ocon
cre
teact
ivi
tythathasanydire
cti
onco
nnect
ionwi
ths o
ftwar
e
pr
oduct
ion
;rath
eri
tisasetofmul
tipl
eproc
ess
es
,whi
chf
aci
li
tat
ess
oftwar
ep r
odu
cti
on.
Proj
ectpl
anni
ngmayinc
lud
e
th
efol
lowi
ng:

S
cop
eMa
nag
eme
nt
I
td e
fin
est
hesco
peofp ro
ject
;thi
sincl
udesa
lltheac
tivit
ies,pro
ces
snee
dt obedon
einordert
omakeadeli
vera
ble
so
ftwar
epro
duct
.Scopemanag
eme
ntisess
enti
albe
caus
eitc reat
esbou
ndar
iesofth
ep ro
jectbyc
lea
rlyde
fin
ingwhat
woul
dbedo
neintheproj
ectandwhatwoul
dnotbedone.Thismakesp
roj
ecttocont
ainli
mi
t e
dan
dquant
ifi
abl
etas
ks,
whi
chcane
asi
l
ybed o
cument
edandinturnavo
idsc
ostandtimeoverru
n.

Du
rin
gPr
oje
ctSc
opema
nag
eme
nt,
iti
sne
ces
sa
ryt
o-

De
fin
eth
esc
ope

De
cid
eit
sve
rif
ica
tio
nan
dco
ntr
ol

Di
vi
det
hep
roj
ecti
ntova
rio
uss
mal
le
rpa
rtsf
ore
aseo
fma
nag
eme
nt.

Ve
rif
yth
esc
ope

Co
ntr
olt
hes
cop
ebyi
nco
rpo
rat
ingc
han
gest
oth
esc
ope
P
roj
ectE
sti
ma
ti
on
Fo
ranef
fec
tiveman
a g
eme
ntacc
urat
eest
ima
tio
nofvar
iou
smea
sur
esi
samu
st.Wi
thc
orr
ecte
sti
mat
ionma
nag
ersc
an
ma
nag
ean
dcontro
lthepro
jec
tmoree
ffi
ci
ent
lyande
ffe
cti
vel
y.

Pr
oje
cte
sti
mat
ionma
yin
vol
vet
hef
oll
owi
ng:

So
ftwa
res
iz
ees
ti
mat
ion
So
ftwa
resi
zemayb
eest
ima
tedeit
heri
nt e
rmsofKLOC(Ki
loL
ineo
fCo de
)orbycal
cul
ati
ngnumberof
fu
ncti
onp
oin
tsi
nth
eso
ftwa
re.L
ine
sofc
odedep
endup
onco
din
gpra
cti
cesa
ndFun
cti
onp
oin
tsvarya
c c
ordi
ng
26
 t
oth
eus
ero
rso
ftwa
rer
equ
ire
men
t.

E
ffo
rte
sti
mat
ion
Thema nager
se s
ti
mateeffo
rtsintermsofpers
onne
lreq
uir
ementandman-
hourreq
ui
redt opro
duc
et he
sof
t ware
.F o
re ff
ortesti
mat
ionsof
twaresi
zesho
uldbeknown
.Thiscaneit
herbed e
rive
dbyma na
ger
s
expe r
ienc
e,org
ani
zat
ion
shi
st
ori
calda
taorso
ftwa
resi
zeca
nbeconve
rtedi
ntoeff
ort
sbyusin
gso
mesta
ndar
d
formulae
.

Ti
mee
sti
mat
ion
Onces
izeandeffor
tsaree
sti
mated,thet
imereq
uir
edt oproduc
et heso
ftwa
recanb ees
timate
d.Ef
forts
re
qui
redisse
gre
gat
edin
tosu
bcatego
rie
saspert
herequi
rementspe
cif
ica
tio
nsan
dinter
depe
nde n
cyofvari
ous
co
mponen
t sofsoft
ware
.Soft
wa r
et as
ksared i
vi
dedin t
os mal
le
rt as
ks,act
ivi
ti
esore ventsbyWork
Bre
akthroug
hStruc
tur
e(WBS).Thetas
ksa
resche
dul
edond ay-
to-
daybasi
sori
ncal
enda
rmonths.

Thes
umoft
imer
equ
ire
dtoc
omp
let
eal
lta
sksi
nho
urso
rda
ysi
sth
eto
talt
imei
nve
ste
dtoc
omp
let
eth
e
pr
oje
ct.

Co
ste
sti
mat
ion
Thi
smig
htbecons
id
ere
da sth
emostdi
ffi
cul
tofal
lbeca
usei
tdepe
ndso
nmo
ree
leme
ntst
hana
nyo
fth
e
pr
evio
uson
es.
Fore
sti
mat
ingp
roje
ctco
st,
iti
sreq
ui
redt
ocons
id
er-

o Si
zeo
fso
ftwa
re

o So
ftwa
req
ual
i
ty

o Ha
rdwa
re

o Ad
dit
ion
als
oft
war
eort
ool
s,l
i
cen
sese
tc.

o Ski
l
ledp
ers
onn
elwi
tht
ask-
spe
cif
ics
kil
ls

o Tr
ave
lin
vol
ved

o Co
mmu
nic
ati
on

o Tr
ain
inga
nds
upp
ort
P
roj
ectE
sti
ma
ti
onT
ech
ni
qu
es
Wed
is
cus
se
dva
rio
usp
ara
met
ersi
nvo
lvi
ngp
roj
ecte
sti
mat
ions
ucha
ssi
ze,
eff
ort
,ti
mea
ndc
ost
.

Pr
oje
ctma
nag
erc
ane
sti
mat
eth
eli
st
edf
act
orsu
si
ngt
wob
roa
dlyr
eco
gni
zedt
ech
niq
ues

27
De
comp
osi
ti
onTe
chn
iqu
e
Th
ist
ech
niq
uea
ss
ume
sth
eso
ftwa
rea
sap
rod
ucto
fva
rio
usc
omp
osi
ti
ons
.

Th
erea
ret
woma
inmo
del
s-

L
ineo
fCo
deE
sti
mat
ioni
sdo
neo
nbe
hal
fofn
umb
ero
fli
neo
fco
desi
nth
eso
ftwa
rep
rod
uct
.

F
unc
tio
nPo
int
sEs
ti
mat
ioni
sdo
neo
nbe
hal
fofn
umb
ero
ffu
nct
ionp
oin
tsi
nth
eso
ftwa
rep
rod
uct
.
E
mpi
ri
calE
sti
mat
ionTe
chn
iqu
e
Th
ist
ech
niq
ueu
sese
mpi
ri
cal
lyd
eri
vedf
ormu
laet
oma
kee
sti
mat
ion
.Th
esef
ormu
laea
reb
ase
donL
OCo
rFPs
.

Pu
tna
mMo
del
Th
ismo
deli
sma
deb
yLa
wre
nceH.
Put
nam,wh
ichi
sba
sedo
nNo
rde
nsf
req
uen
cyd
is
tri
but
ion(Ra
yle
ig
hcu
rve
).
Pu
tna
mmo
delma
pst
imea
nde
ffo
rtsr
equ
ire
dwi
ths
oft
war
esi
ze.

COCOMO
COCOMOst
andsfo
rCOnstr
u c
tiveCOs
tMOd e
l,d
eve
lop
edbyBa
rryW.Bo
ehm.
Itd
ivi
dest
hes
oft
war
epr
odu
ct
i
ntothr
eecat
ego
rie
sofs
oftware:
org
ani
c,s
emi
-de
tac
hedan
demb
edde
d.

P
roj
ectS
che
dul
i
ng
Pro
jectSc h
edul
inginaproj
ectref
erstoroa
dmapo fallact
ivi
tiestobedonewi
thspeci
fi
edorderandwit
hintimesl
ot
al
lo
ttedtoe a
chacti
vity.
Proje
ctmanag
erstendtode f
inevari
oustasks,
andproj
ectmil
es
tonesandthe
ma r
rangethem
kee
pingva r
iou
sfa c
torsi
nmi n
d.Theylookfort asksli
einc ri
t i
calpathintheschedu
le,whic
ha r
en ece
ssaryto
co
mple
t einspe
cif
icmanner(bec
aus
eoftaskinter
dep e
n d
ency)andst r
ict
lywit
hintheti
meallo
cate
d.Arra
ngementof
ta
skswh i
chli
esou
to fcri
ti
calpa
thareles
sli
kelytoimpactoverallsch
edul
eoftheproj
ect.

F
ors
che
dul
i
ngap
roj
ect
,iti
sne
ces
sa
ryt
o-

Br
eakd
ownt
hep
roj
ectt
asksi
ntos
mal
le
r,ma
nag
eab
lef
orm

F
indo
utva
rio
ust
asksa
ndc
orr
ela
tet
hem

E
sti
mat
eti
mef
ramer
equ
ire
dfo
rea
cht
ask

Di
vi
det
imei
ntowo
rk-
uni
ts

As
si
gna
deq
uat
enu
mbe
rofwo
rk-
uni
tsf
ore
acht
ask

Ca
lcu
lat
eto
talt
imer
equ
ire
dfo
rth
epr
oje
ctf
roms
tar
ttof
ini
sh
R
eso
urc
ema
nag
eme
nt
28
Al
lele
mentsu
sedtod
evel
opas
oftwa
repro
ductma
ybea
ss
ume
dasr
eso
urc
efo
rth
atp
roj
ect
.Th
isma
yin
clu
deh
uma
n
re
sou
rce,
produ
cti
veto
ol
sands
oft
warel
i
brari
es
.

Ther
esou
rcesa
reava
il
abl
einli
mi
tedqu
anti
tyan
dstayintheorg
ani
zat
ionasapoo
lofass
ets
.Thesho
rtag
eofres
our
ces
ha
mpersthedeve
lop
mentofp ro
jectanditcanlagbehin
dt heschedul
e.All
ocat
ingextrares
ourc
esinc
reas
es
de
vel
opmentco
sti
ntheend.
Iti
sther
efor
enec
ess
arytoes
ti
mateandal
loca
teadeq
uateres
our
cesfo
rtheproj
ect
.

Re
sou
rcema
nag
eme
nti
ncl
ude
s-

De
fin
ingp
rop
ero
rga
niz
ati
onp
roj
ectb
ycr
eat
ingap
roj
ectt
eama
nda
ll
oca
tin
gre
spo
nsi
bi
li
ti
est
oea
cht
eam
me
mber

De
ter
min
ingr
eso
urc
esr
equ
ire
datap
art
icu
lars
tag
ean
dth
eira
vai
l
abi
l
ity

Mana
geRe
sou
rce
sbyg
ene
rat
ingr
eso
urc
ere
que
stwh
ent
heya
rer
equ
ire
dan
dde
-al
lo
cat
ingt
hemwh
ent
heya
re
nomor
enee
ded.
P
roj
ectR
is
kMa
nag
eme
nt
Ri
skmana
geme
nti
nvol
vesal
lacti
vi
tiesp
ert
ain
ingtoid
enti
fi
cati
on,
ana
lyz
inga
ndma
kin
gpr
ovi
si
onf
orp
red
ict
abl
ean
d
no
n-pr
edi
ctab
ler
is
ksi
nt h
ep r
oject
.Ris
kmayincl
udethef
oll
owi
ng:

E
xpe
rie
nce
dst
affl
eavi
ngt
hep
roj
ecta
ndn
ews
taf
fco
min
gin
.

Ch
ang
eino
rga
niz
ati
ona
lma
nag
eme
nt.

Re
qui
reme
ntc
han
geo
rmi
si
nte
rpr
eti
ngr
equ
ire
men
t.

Un
der
-es
ti
mat
iono
fre
qui
redt
imea
ndr
eso
urc
es.

Te
chn
olo
gi
calc
han
ges
,en
vir
onme
nta
lch
ang
es,
bus
ine
ssc
omp
eti
ti
on.
R
is
kMa
nag
eme
ntP
roc
es
s
Th
erea
ref
oll
owi
nga
cti
vi
ti
esi
nvo
lve
dinr
is
kma
nag
eme
ntp
roc
ess
:

I
den
tif
ica
tio
n-Ma
ken
oteo
fal
lpo
ss
ib
ler
is
ks,
whi
chma
yoc
curi
nth
epr
oje
ct.

Ca
teg
ori
ze-Ca
teg
ori
zekn
ownr
is
ksi
ntoh
igh
,me
diu
man
dlo
wri
ski
nte
nsi
tya
spe
rth
eirp
oss
ib
lei
mpa
cto
nth
e
pr
oje
ct.

Ma
nage-Anal
yzethep
roba
bil
i
tyofocc
urr
enc
eofr
is
ksa
tva
rio
usp
has
es
.Ma
kep
lant
oavo
ido
rfa
cer
is
ks.
At
tempttomi
nimi
zeth
eirs
ide
-ef
fec
ts.

Mo
nit
or-Cl
os
el
ymo
nit
ort
hep
ote
nti
alr
is
ksa
ndt
hei
rea
rlys
ymp
toms
.Al
somo
nit
ort
hee
ffe
ctso
fst
epst
ake
n
29
 t
omi
ti
ga
teo
ravo
idt
hem.
P
roj
ectE
xec
uti
o
n&M
oni
to
ri
ng
I
nth
isp
has
e,t
het
asksd
esc
rib
edi
npr
oje
ctp
lan
sar
eexe
cut
eda
cco
rdi
ngt
oth
eirs
che
dul
es
.

E
xec
utio
nn e
edsmo
nito
rin
ginord
ert
oche
ckwhethe
rever
ythi
ngi
sgo
inga
ccor
din
gtothepla
n.Mo
nit
ori
ngiso
bse
rvi
ng
t
oche
ckt h
ep r
oba
bil
i
tyofris
kandt
aki
ngme
asu
restoa
ddre
sst
heri
skorrep
ortthes
tatu
sofvar
iou
stas
ks.

Th
eseme
asu
resi
ncl
ude-

Acti
vit
yMoni
tor
ing-Al
lact
ivi
ti
ess
ched
ule
dwith
inso
metas
kca
nbemo
nit
ore
dond
ay-
to-
dayb
asi
s.
Whe
nal
l
ac
tivi
ti
esi
natas
ka r
ecomp
lete
d,i
tisc
onsi
der
edasc
ompl
ete
.

Stat
usRepor
ts-Therep
ortsco
ntai
nst
atuso
facti
vi
tie
sandta
skscompl
ete
dwithi
nag
ive
nti
mef
rame
,
ge
neral
lyaweek.
Sta
tuscanbemar
kedasf
ini
she
d,pe
ndin
gorwork-
in-p
rog
resse
tc.

Mil
est
one
sCheckli
st-Eve
rypr o
jecti
sdi
vi
dedi
ntomul
ti
pl
ephas
eswher
emajo
rt a
sksarepe
rfo
rmed
(mil
es
ton
es)b
asedonthepha
sesofSDL
C.Thi
smi
l
esto
neche
ckl
i
stispr
epare
donceever
yf e
wweeksa
ndr
epo
rts
thest
atu
sofmi
lest
ones
.

P
roj
ectC
omm
uni
ca
ti
onM
ana
ge
men
t
E
ffe
cti
veco
mmun
ica
tio
np l
aysvit
alrol
einthes
ucces
sofapr
ojec
t.I
tbri
dge
sgap
sbetwe
encli
enta
ndt
heo
rga
niz
ati
on,
a
mon
gthet
eammemb
ersaswe
llasoth
erstakeho
lde
rsinth
eproj
ects
uchasha
rdwar
esuppl
i
ers.

Co
mmu
nic
ati
onc
anb
eor
alo
rwr
itt
en.
Commu
nic
ati
onma
nag
eme
ntp
roc
essma
yha
vet
hef
oll
owi
ngs
tep
s:

Pl
ann
ing-Thisst
epinc
lud
esth
eiden
tifi
cat
ion
sofal
lthest
akeho
lde
rsi
nthepr
ojec
tandthemo
deo
f
co
mmuni
cat
ionamongt
hem.I
tal
soc
onsi
dersi
fanyad
dit
iona
lcommu
nic
ati
onf
aci
l
iti
esar
ereq
ui
red.

Shar
ing-Aft
erdet
ermi
ni
ngva
rio
usas
pect
sofpl
anni
ng,ma
nag
erfo
cuse
sonsha
ringco
rrec
tin
for
mati
onwi
th
theco
rrec
tpers
ononco
rre
ctti
me.Th
iskee
pse
veryonein
vol
vedthepro
jec
tu ptodat
ewit
hproj
ectpr
ogr
ess
an
ditssta
tus
.

F
eedb
ack-Pr o
jectmana
ger
susevar
iou
smea
sure
sandfee
dbac
kmechani
smandcr
eat
esta
tusan
dperfo
rmanc
e
r
epo
rts.Th
ismech
anis
mensu
restha
tinputf
romvar
iou
sstake
hol
der
siscomi
ngt
othepr
ojec
tmana
gerast
hei
r
f
eed
back.

Cl
osur
e-Att heendo
feachmaj
orevent
,endo
fap has
eofSDL
Coren
dofth
eproj
ecti
tse
lf,
admin
ist
rat
ive
cl
os
ureisf
ormal
lyann
oun
cedtoupdatee
verys
takeho
lde
rbyse
ndi
nge
mai
l
,bydi
st
rib
uti
ngahard
copyof
do
cumento
rb yoth
ermea
no fe
ffec
tiveco
mmun
icat
ion
.
Af
terc
los
ure
,th
ete
ammo
vest
one
xtp
has
eorp
roj
ect
.
3
0
C
onf
ig
ura
ti
onM
ana
ge
men
t
Co
nfi
gura
tio
nma n
ageme
nti
saproc
esso
ftrac
kinga
ndc
ont
rol
li
ngt
hec
han
gesi
nso
ftwa
rei
nte
rmso
fth
ere
qui
reme
nts
,
de
si
gn,
functi
onsandde
vel
opme
ntofthep
roduc
t.

I
EEEd
efi
nesi
tas
thep
roc
esso
fid
ent
ify
inga
ndd
efi
ni
ngt
hei
temsi
nth
esy
ste
m,c
ont
rol
li
ngt
hec
han
geo
fth
esei
tems
t
hro
ugh
outthe
irl
i
fecycl
e,rec
ordi
ngan
dre
por
tin
gth
est
atu
sofi
temsa
ndc
han
ger
equ
est
s,a
ndve
rif
yin
gth
e
c
omp
let
enes
san
dco
rre
ctn
esso
fitems
.

Gene
ral
ly,
oncet
heSRSi
sfi
nal
iz
edther
eisle
ssch
anceofre
qui
reme
ntofch
ange
sfro
mus
er.
Ift
heyo
ccu
r,thec
han
ges
ar
eaddre
sse
donl
ywit
hpri
orap
prova
lofhig
hermana
geme
nt,a
sther
eisap
oss
ib
il
ityo
fco
sta
ndti
meo
verru
n.

Ba
sel
ine
Ap
has
eofSDL
Cisa
ss
ume
dove
rifi
tba
sel
i
ned
,i.
e.b
ase
li
nei
same
asu
reme
ntt
hatd
efi
nesc
omp
let
ene
sso
fap
has
e.A
p
has
eisb
ase
li
nedwhe
nallact
ivi
ti
esper
tai
nin
gtoi
tar
efi
ni
sh
eda
ndwe
lld
ocu
men
ted
.Ifi
twa
sno
tth
efi
nalp
has
e,i
ts
o
utp
utwoul
dbeus
edinn
e xti
mmedi
atepha
se.

Confi
gu
rati
onmana
geme
ntisadi
sc
ipl
in
eoforg
a n
iza
tio
nadmi
ni
str
ati
on,whi
chtake
sca
reo
foccu
rre
nceo
fanycha
nge
(pro
cess
,re
qui
reme
nt,tec
hno
lo
gi
cal
,st
rat
egi
caletc
.)af
teraph
asei
sbase
li
ned
.CMkee
psc
hec
konanych
ang
esd
onein
so
ftware
.

Ch
ang
eCo
ntr
ol
Cha
ngeco
ntro
lisfu
ncti
ono
fconfi
gur
ati
onman
age
ment
,whiche
nsu
rest
hata
llc
han
gesma
det
oso
ftwa
res
yst
ema
re
co
nsi
st
entan
dmadeasp
eror
gan
iza
tio
nalr
ule
sandr
egu
lat
ion
s.

Ac
han
gei
nth
eco
nfi
gu
rat
iono
fpr
odu
ctg
oest
hro
ughf
oll
owi
ngs
tep
s-

I
den
tifi
cat
ion-Ac ha
n g
erequ
esta
rrive
sf r
ome
ith
eri
nte
rna
lore
xte
rna
lso
urc
e.Wh
enc
han
ger
equ
esti
s
i
denti
fi
edforma
ll
y,i
tispro
per
lydo
cument
ed.

Va
li
dat
ion-Va
li
di
tyo
fth
ech
ang
ere
que
sti
sch
ecke
dan
dit
sha
ndl
i
ngp
roc
edu
rei
sco
nfi
rme
d.

Anal
ysi
s-Thei
mpac
tofcha
ngere
que
stisa
nal
yzedi
nte
rmso
fsc
hed
ule
,co
sta
ndr
equ
ire
def
for
ts.Ove
ral
l
imp
actoft
hepro
spe
cti
vec
hang
eonsy
ste
misan
aly
zed
.

Co
n t
rol-Ifthepro
spe
ctivechan
geei
the
rimpac
tstooman
ye nt
iti
esi
nt h
esy
stemoritisuna
void
abl
e,iti
s
mandat
orytotakea
pprovalofhi
gha
utho
riti
esb
efor
echang
eisi
ncorp
orat
edi
ntothesys
tem.
Itisdec
ide
dif
thechang
eiswo
rthi
nco
rp or
ati
onorn
ot.I
fiti
snot,
chan
gereq
ues
tisref
use
dfo
rmal
ly.

E
xecuti
on-Ifthepr
evi
ouspha
sedet
ermi
nestoexec
utethechan
ger
equ
est
,th
isp
has
eta
kea
ppr
opr
iat
e
act
ion
stoe
xecu
teth
echa
nge,
doesat
horo
ughre
vis
io
nifnec
ess
ary
.

Cl
os
ere
que
st-Th
ech
ang
eisve
rif
iedf
orc
orr
ecti
mpl
eme
nta
tio
nan
dme
rgi
ngwi
tht
her
esto
fth
esy
ste
m.Th
is
3
1
 n
ewl
yin
cor
por
ate
dch
ang
eint
hes
oft
war
eisd
ocu
men
tedp
rop
erl
yan
dth
ere
que
sti
sfo
rma
ll
yisc
los
ed.

P
roj
ectM
ana
ge
men
tTo
ol
s
Theri
skandu
nce
rtai
ntyri
se
smu
lti
fol
dwi
thr
esp
ectt
oth
esi
zeo
fth
epr
oje
ct,e
venwh
ent
hep
roj
ecti
sde
vel
ope
d
ac
cor
dingt
ose
tmeth
odol
og
ie
s.

Th
erea
ret
ool
sava
il
abl
e,wh
icha
idf
ore
ffe
cti
vep
roj
ectma
nag
eme
nt.
Afe
war
ede
scr
ibe
d-

Ga
nttCh
art
Ga
nttchar
tswa
sdevi
se
dbyHen
ryGantt(19
17)
.Itrepr
esent
sp r
oje
cts
che
dulewi
thres
pecttoti
mep
eri
ods
.Iti
sa
ho
riz
ont
alba
rcha
rtwi
thba
rsr
epre
sen
tinga
cti
vit
iesa
ndtimesch
edul
edf
orth
ep ro
jec
tact
ivi
ti
es.

PE
RTCh
art
PERT(Prog
ramEval
uat
ion&Revi
ewTechn
iqu
e )ch
artisatoo
lthatde
pic
tspro
jec
tasnet
wor
kdia
gra
m.I
tisca
pabl
e
ofgr
aphi
cal
lyre
pres
ent
ingma
ineve
ntsofpro
jectinbo
thp a
ral
le
landco
nsec
uti
veway
.Eve
nts
,wh
icho
ccu
roneaft
er
ano
ther
,sho
wd e
pen
dencyofth
elat
ereventoverthep
r e
vio
usone
.

E
ven
tsa
res
howna
snu
mbe
redn
ode
s.Th
eya
rec
onn
ect
edb
yla
bel
eda
rro
wsd
epi
cti
ngs
equ
enc
eoft
asksi
nth
epr
oje
ct.

3
2
Re
sou
rceHi
st
ogr
am
Thi
sisagr
aphi
calt
oolt
hatcon
tai
nsb
arorcha
rtre
pres
ent
ingnu
mberofr
eso
urce
s(usu
all
yski
lle
dst
aff)req
uir
ed
ove
rtimef
oraproj
ecte
vent(orp
has
e).
Res
our
ceHi
st
ogr
amisa
neffe
cti
veto
olfo
rsta
ffpla
nnin
gandco
ordi
nat
ion
.

Cr
iti
calPa
thAn
aly
sis
Thi
stool
sisu
sef
ulinreco
gni
zi
ngi
nt e
rde
pende
nttas
ksinthepr
oject
.Ital
sohel
pstofin
do u
tth esho
rte
stpat
hor
cr
iti
calpa
thtocomp
let
etheproj
ectsuc
ces
sfu
ll
y.L
ikePERTdi
ag
ram,ea
cheven
tisall
ott
edaspec
ificti
mefra
me.
Thi
s
to
ols
howsdep
endenc
yofeventas
sumi
ngane
ventca
np ro
cee
dtonextonl
yifthepre
vio
usonei
scomple
ted.

Thee
ven
tsarea
rra
nge
dacco
rdi
ngt
othe
irea
rli
es
tp o
ss
ibl
esta
rtti
me.Pat
hbetwe
ensta
rta
nde
ndn
odei
scr
iti
cal
pa
thwhi
chc
anno
tbefu
rth
erred
uce
dan
dalle
ventsr
equi
retob
eexe
cutedi
nsa
meorde
r.

3
3
 PROJ
ECTMANAGE
MENTSOF
TWARE
Sin
cethep r
ojec
tmanag
ementi
soneo
ft h
ecorefun
ctio
nsofabus
ine
sso
rga
niz
atio
n,theproj
ectma
nage
mentfu
ncti
on
sho
uldbesuppo
rtedbyso
ftwar
e.Bef
oreso
ftwar
ewa sbo
rn,pr
oje
ctmanag
ementwasful
lydoneth
roug
hp a
per
s.Thi
s
event
uall
yp r
oduce
dalotofpaperdo
cumen
tsandsear
chi
ngthro
ughthe
mf o
rinforma
tio
nwh i
chwasnotapl
eas
ant
experi
enc
e.

Onces
oftwar
ec a
mea va
il
abl
eforana f
forda
blecos
tfort hebus
ine
ssorg
aniz
atio
ns,s
oft
war
ed e
velo
pme
ntcomp
ani
es
st
arte
dd e
velo
pin
gp r
ojec
tmanag
ementso
ftware
.Thisb
ecamequ
itepopu
laramongal
lthei
ndu
str
iesa
ndthe
ses
oft
ware
wereq
uic
klyado
ptedbythepro
jectman
ageme
ntcommuni
ty.

Ty
peso
fPr
oje
ctMa
nag
eme
ntSo
ftwa
re
1-De
skt
op

Therear
etwot ype
sofp roje
ctmanag
emen
tsoftwar
ea vai
l
ablefo
rp r
ojectmana
ger
s.Thef i
rs
tc a
tego
ryofsuc
h
so
ftwar
eisth
ed e
skto
ps o
ftwar
e.Mi
cro
sof
tProj
ectisagoo
dexampl
eforthi
stype
.Youca
nman a
geyou
rentir
epro
jec
t
us
ingMSPro
ject
,butyouneedtos
har
etheel
ect
ronicdo
cument
swit
hothe
rs,whe
ncoll
abo
rat
ionisr
equ
ire
d.

Al
lth
eupda
tess
hou
ldb
edonetothes
amedo
cumen
tbyre
leva
ntpart
iesti
metot
ime.
There
for
e,suc
hd e
skt
opp
roj
ect
ma
nag
eme
ntso
ftwa
reha
sli
mi
tat
ion
swhenits
hou
ldbeu
pda
tedandma
int
a i
nedb
ymoretha
noneper
son.

2-We
bBa
sed

Asaso
lut
ionfo
rt h
eabovei
ssu
e,th
eweb-b
asedpr
oje
ctmana
geme
ntso
ftwarewasi
ntro
duc
ed.Wi
thth
ist
ype
,th
eus
ers
cana
cces
sthewebapp
li
cati
onandre
ad,
writeorc
han
geth
ep r
oje
ctmana
gement
-re
lat
edact
ivi
ti
es
.

Thi
swasago
odso
lut
ionfo
rdis
tri
but
edproje
ctsa
cro
ssde
partme
ntsandg
eog
rap
hies
.Thi
swa
y,a
llt
hesta
keh
olde
rso
f
thepr
oje
cthaveacc
esstop
roje
ctdet
ail
satanygi
venti
me.Spe
cia
ll
y,t
hismo
delist
hebe
stf
orvir
tua
ltea
mstha
t
op
erat
eontheI
nter
net.

Proje
ctmanagemen
tsoftwa
reca
nb ei
mplement
edasawebappl
ica
tio
n.Thi
sisacces
se
dt h
r o
ughanin
tr a
netorextra
net,
ortheinte
rnetits
elf
,usi
ngawe
bb ro
wser.Be
nefi
tso
fweb-ba
sedproje
ctman a
geme
ntapp l
i
cati
onsi
ncludethefa
ctthat
theycanbeacces
sedfro
manytypeofcompute
rwith
outin
sta
lli
ngso
ftwar
e. Theso
ftwarei
sals
oautomati
cal
lyupda
ted
andmai
n t
aine
db ythese
rvic
epro
vider,
andthenatur
eofthesyst
emmakesitnatura
ll
ymu l
ti-
use
r.

Al
so,web-
bas
edsof
t war
et end
stocomewit
hamonth
lychargewhi
chi
sch
eape
rthanbu
yin
gandma
int
ain
ingt
he
ap
pli
c a
tio
ny o
urs
elf.Ho
we ver
,web-b
ase
dp ro
jec
tso
ftwaretend
stobes
lo
wertor
esp
ondtha
ndes
ktopappl
i
cat
ion
s,a
nd
pro
jectinfo
rmat
ionisnotavai
la
blewhentheus
eri
soff
li
n e
.

F
ivePo
pul
arPr
oje
ctMa
nag
eme
ntAp
pli
cat
ion
s

3
4
 1
. Mi
cro
sof
tProj
ect
Mi
cro
sof
tPr oj
ectiso
neo
fthemorep
opu
larp
acka
gesa
ndi
tno
wof
fer
sawe
bin
ter
fac
ean
dde
epOf
fic
e,
Ou
tlo
okan dShar
epoi
nti
nte
gra
tio
n.
2.Ma t
chwareMi
ndView
Mi
ndViewhasane a
sy-to-u
sesprea
dshe
et-l
ikelayo
ut,a
nditsmi
ndmapop t
ionlet
sy o
useeyo
urpro
jecti
nvisu
als
,
re
mini
scen
to fbrai
n s
tormingbub
ble
s.
3. Pro
ject
Kickstar
t
Pro
jectKickStartisaneasy-
to-us
eproje
c tmana
geme
ntp a
ckaget
hatintegr
ateswi
thothe
rappl
ica
tio
nsli
kePowe
rPo
int
,
Out
loo
k, E
xc el
,Word,Micro
softProj
ect,andACT!.
4. Rat
ion
alPl
a n
MultiProj
e c
t
Rat
ion
alPl
a nMultiProj
e c
th a
sfeature
stoma n
ageres
ourc
esandbud
getsaswel
lasmult
ipl
epro
ject
s.I
th a
sanin
ter
act
ive
Gan
ttc ha
r t,
normall
ya vai
lab
leonl
yinh i
gher-
endsui
tes
.
5. Bas
eca
mp
Bas
eca
mpi salow-cos
twe b-
bas
edp ro
jectmanag
ementandcol
la
bora
tio
np ackag
ewh i
chi
sgai
ni
ngmo
mentum.

Ch
ara
cte
ris
ti
cso
fPr
oje
ctMa
nag
eme
ntSo
ftwa
re
Whe
nitcomestochoo
sin
gp ro
jectman
agementso
ftware,the
rearemanythi
ngstocons
ide
r.Notal
lthepr
ojec
tsmay
ut
il
iz
eallthefea
turesoff
eredbyproje
c tmana
gementsof
twar
e.Theref
ore
,youshou
ldhaveagoo
dunde
rst
andi
ngof
yo
urproj
ectrequ
ire
mentsbefo
reatt
emptingtos
elec
to nefo
ryou.F
oll
owi
ngarethemos
timpo
rtan
tasp
ect
sofproj
ect
ma
nage
mentsof
tware
:

1-Co
ll
abo
rat
ion

Theproj
ectmanage
ments
oftwar
esho
uldf
aci
li
tat
ethetea
mcoll
abo
rati
on.Thi
smea
nsthatt
herel
eva
ntsta
keho
lde
rsof
th
ep roj
ectshou
ldbeabl
etoacce
ssa
ndupda
tethepro
jectdo
cument
swhe ne
verthe
ywantto
.Ther
efo
re,t
heproj
ect
ma
n a
gementso
ftwares
houl
dh a
veacce
ssc
ontr
olandau
thent
ica
tio
nma n
agementi
norde
rtogra
ndacce
ssl
evel
stothe
pr
ojectstake
hol
ders
.

2-Sc
hed
uli
ng

Sched
uli
ngisoneofthemai
nf e
ature
sthatsh
oul
db eprovid
edbyp ro
jectmana
geme
ntsoft
ware.
Usual
ly,
modernp
roje
ct
manag
ementsoft
wareprovi
destheabi
li
tytodra
wGa nttc h
artswhenitco
mestoacti
vi
tysche
duli
ng.
Inaddi
ti
ontothi
s,
act
ivi
tyde pen
denci
escanal
sobeaddedtothesched
ules,s
osuchsoft
warewil
lshowyouthepro
jectcri
ti
calpa
thand
la
terchangestothec r
iti
calpathauto
mati
cal
ly.Bas
elini
ngi
sa l
soau se
fulfeat
ureoffe
redbyp ro
jectmana
geme
nt
so
ftware
.Usuall
y,aproj
ecti
sb a
sedl
in
edwhentherequi
rement
sa r
ef i
nal
iz
ed.

Whe
nrequ
ire
ment
sarec
han
geda
ndnewre
qui
remen
tsareadd
edtothepro
jectla
ter,p
roj
ectmana
gemen
tt e
amc a
n
co
mpar
ethenews
che
dul
ewi
thth
eba
sel
i
nes
chedul
eaut
omat
ica
ll
ytou
nder
stan
dt h
ep r
oje
ctsc
opea
ndcostdevi
ati
ons
.

3-I
ss
ueTr
acki
ng

Du
ringt
hep
roj
ectli
fec
ycl
e,t
hereca
nbema
nyi
ssu
esr
ela
tedtop
r o
jec
tthatn
eedsco
nst
antt
rac
kin
gandmoni
tor
ing
.
So
ftwar
ede
fec
tsiso
neo
fthego
odexa
mpl
esf
ort
his
.Th
eref
ore
,thepro
jec
tmana
geme
ntsof
twa
res
houl
dhavef
eatur
es
3
5
t
otr
acka
ndmo
nit
ort
hei
ss
uesr
epo
rte
dbyva
rio
uss
take
hol
der
soft
hep
roj
ect
.

4-Pr
oje
ctPo
rtf
oli
oMa
nag
eme
nt

Proj
ectp o
rtfo
li
omanag
ementisoneofthekeya s
pect
swh e
nano rg
ani
zati
onhaseng
agedinmor
et h
anoneproject
.The
org
aniz
atio
nshou
ldbeabl
eme a
su r
ea ndmoni
tormul
tip
leproje
cts,s
oth eo
rgan
iza
tio
nkn owsho
wt hepro
jectsprog
res
s
overa
ll
.Ifyouar
easmal
lcompanywi t
honlyacoupl
eofproje
cts,
y o
uma yno
twantthisfeat
ure
.Insuc
hcase
,y o
ushoul
d
sel
ectproje
ctmana
gementsof
t warewit
houtp r
oje
ctp o
rtfo
li
oma na
gemen
t,assuc
hf eat
uresco
uldbequi
teexp e
nsi
ve
foryou.

5-Do
cume
ntMa
nag
eme
nt

Ap r
ojecthasmanydocu
mentsinuse
.Mo s
tofthes
edocumen
tsshou
ldbeacces
si
bl
etothesta
keh
olde
rsoftheproje
ct.
Theref
ore,t
h eproj
ectmanag
ementsof
t wa
resho
uldhaveadocume
ntma n
age
mentfa
cil
i
tywithcorr
ectac
cesscont
rol
sy
stem.Inaddit
iontothis
,documen
tsn eedtobeversi
one
dwh eneve
rt he
ya r
eupdate
d.Ther
efore
,thed o
cument
mana
gementfeat
uresho
uldsu
pportdocumentve
rsi
oni
ngaswel
l.

6-Re
sou
rceMa
nag
eme
nt

Re
sou
rceman
ageme
ntofthepro
jecti
soneo
ft h
eke yexpec
tat
ion
sf r
ompro
jectman
age
mentso
ftwa
re.Thi
sin
clud
es
bo
thhumanre
sour
cesa
ndothe
rt y
pes
.Thepro
jectman
a g
eme
ntsoftwa
res
houl
dshowtheut
il
iz
ati
onofeac
hr e
sou
rce
th
roug
hou
ttheenti
repr
oje
ctli
fecyc
le.

Co
ncl
usi
on
Mo
dernproj
ectman a
gementp ra
c t
icer eq
ui
r e
st h
ea ss
is
tanc
eo fproj
ectmanag
emen
tsoftwar
e.Themodernpro
ject
ma
nag
ementprac
ticei
sc ompl
ica
tedt oanext e
ntth a
titcanno
toperat
ewitho
uttheus
eofsoft
ware.
Whenchoo
si
ngthe
co
rre
ctproj
ectmanage
me ntsof
twar eforyourpurpos
e,yo
un e
edtoeval
uat
ethechar
acte
ris
ti
csofso
ftwar
eandmatch
wi
thyourpro
jectmanagementrequi
r e
ments.Neve
rc hoo
seonewit
hmo r
efeatu
rethanyoureq
uir
e,asus
ual
lypro
ject
ma
nag
ementsoft
warec omewithah ig
hp ricetag.I
na ddi
ti
on,havi
ngmorethantherequi
redfea
ture
sc o
uldmake
co
nfu
sio
nswhenusi
ngthes o
ftwareinpracti
ce.

3
6
 RI
SKMANAGEMENT
1I
ntr
odu
cti
on
I
ti sessen
t i
alfore ff
ecti
vema nag
ementco n
t rolthata l
ls i
gni
fi
cantr i
sksandu nc
ertai
nti
esinap rojec
ta re
sys
temati
call
yiden
tifi
ed,q
uan ti
fi
ed,anal
yse
d, o
wn ed,a
cteduponandmonit
oredbythemanag
ementte
amt omaximi
sethe
li
kel
iho
odo fsuc
ces
sfulach
ievementofobjec
tiveswithi
nb u
dgetandsche
duletarg
ets
.
Ri
skma nag
ementisameanso fdeali
ngwithuncertaint
yi dentif
yingso
urcesofunce
rtai
ntyandtherisksasso
ci
ated
wit
ht hem,andthe
nma na
gingthoseri
skss
ucht hatn e
gat
iveoutco
mesaremini
mis
ed(oravoi
dedal
tog
ether
), a
ndp os
iti
ve
out
comesarecapi
tal
is
edu po
n .Theneedtomanageuncertai
ntyisi
nheren
tinmo s
tproje
ctswhic
hrequ
ireformalproj
ect
manag
ement.Consi
derthi
sil
lustrati
vedefi
niti
ono faprojec
t:
Anende
avouri
nwh i
chhuman,mate
ria
landfi
nanci
alres
ource
sareor
ganis
edinanovelwa
y,t ou
nder
takeauni
ques
cope
ofwor
ko fgi
venspe
cif
icat
ion.wi
thi
nc o
nst
rai
ntsofcos
ta ndti
me,s
oa stoach
ieveuni
tary,be
nef
ici
alch
ange
,thr
ough
thede
li
veryofqu
anti
fi
edandq ua
li
tati
veobj
ecti
ves.
(Turner,1
992asquo
tedbyChapma)
I
nh i
ghli
ght
ingtheone
-off
,change
-indu
cin
gn atu
reo fproj
ects,t
hisd
efin
iti
onindi
cate
sthatp r
oje
ctscar
rywiththem
aninhere
ntd e
greeofuncerta
intythatrequi
resattent
ionaspartofaneff e
cti
vep ro
jectmanag
emen
tp roc
ess
.The
ro
otsofthisunc
ertai
ntyareworthcl
ari
ficat
ion
.Ch ap
manh a
sindi
cat
edthatoneobvi
ousso
urceofunc
erta
intyandri
sk
i
nt heexecuti
onofap ro
jectisth
elarg
e -
sca
leu s
eofnewa nduntri
edtechnol
og
y.Chapmanal
soi
ndic
atestha
tsuch
so
urcesofris
kf re
quent
lybecometheprimemotivato
rfort hei
ntrod
ucti
ono f
,andc a
refulat
tenti
onto,fo
rmalri
sk
mana
gementproce
sse
s(RMPs).

2De
fini
ti
onso
fri
sk
So
medef
ini
ti
onso
fris
kinc
lud
e:
thei
mpl
i
cat
ion
soft
hee
xis
ten
ceo
fsi
gni
fi
can
tun
cer
tai
ntya
bou
tth
ele
velo
fpr
oje
ct
pe
rfo
rmanc
eachi
eva
ble

So
urc
eso
fRi
sk
Ri
skst
oap
roj
ectc
anb
ecl
as
si
fi
edb
yth
eirc
aus
e,a
son
eoft
hef
oll
owi
ngt
ype
s:

1
.
Ext
erna
l
Thes
emayb ea ss
oci
atedwithgl
obalc o
nditi
onsinpol
iti
calandregul
ator
ya re
asandmarkets
.Genera
ll
y,externa
lsource
s
ofri
sken compas
sfactor
swh i
cha rebeyondthec o
ntroloftheproje
ctt e
ama n
d/ortheorgan
isa
tio
n(s)invo
lved.Thes
e
mayincl
ud elegi
sl
ati
ver eq
uire
ment swithregardtosafetyort heprote
ctio
no fcons
umersortheenviron
ment.Such
reg
ula
tio
n sg o
vernth eoperat
ionofc ompanie
sa n
de nterpri
se
s,non-co
mpli
ancewithwhichlea
dt oleg
alobst
acles
,or
unof
fic
ialpo l
it
ica
ldemonstra
tion
st hatcanh a
rma norgani
sa
tio
nsproj
ectopera
tio
nsandreputat
ion
.Thep ub
li
cu pro
ar
andprotesta g
ai
nstSh e
llOilovert hep r
opos
eds i
nkingoftheBr e
ntSp aroi
lp l
atfo
rmint heNorthSeashowedthe
pote
nti
alf ord a
magetoc or
poratePR.Th eSe aEmpressoi
lspi
llinFebrua
ry1996rui
ned190kmo fWels
hc o
ast
lin
eina
val
uedcon s
ervati
onarea.Theauthori
tiessh
owedth e
yh adteet
hwh entheyfi
nedtheMilf
ordHavenPortAuthori
ty4
mil
li
on.
Da magetoyourproje
ctc a
nb eserio
us.

2I
nte
rna
l
I
nternalso
urceso
fr i
skarewithi
nt hecont
rolofthep r
ojec
tt e
ama n/o
rt heorga
nis
a t
ion(s
)involve
d.Thes
ei nc
lude
ri
sksaris
in
ga sares
ultofproje
ctdesig
norh u
ma nbeh
avio
ur.Cor
poratedis
pute,co
mmu ni
cati
onf a
il
ureandtechnol
og
y
fa
ilur
e,canallha
rmt hepro
ject.Hu
manp er
formance
,ski
ll
savai
lab
il
ity,c
apabil
i
t yandmotivat
ionarees
se
n t
ialfac
tors
th
a tcontri
butetothesucce
ssofthep ro
ject.Theproj
ectlead
ershoul
dh avet h
es ki
llstoexerci
seco
nsi
stentris
k
ma
n ag
ementinorde
rt okee
pt h
ep ro
jectontrack.
I
tisnotp o
ss
iblet
oeli
minat
eris
k;itispos
si
bletohandl
eris
kc o
ndit
ion
s.Sometypesofr i
skareavoi
dabl
eandar ewi
thi
n
th
er ea
lmoft hepro
jectmana
ger'
scontro
l.

Ens
uri
ngt
hatt
hemate
ria
lsyo
uord
erarede
li
vere
donti
me,s
eei
ngt
oittha
tth
eit
emsyoupl
ant
osel
lar
eprod
ucedo
n
s
che
dul
e,a
ndge
tti
ngyo
ursale
sfa
cil
i
tie
sinpl
aceal
lmu
stbepla
nne
db e
for
eth
atmome
ntwhenthec
ust
ome
rssho
wup
3
7
a
ndl
ayt
hei
rmo
neyo
nth
eco
unt
er.

Thepro
jec
tmana
geri
senco
ura
gedtotakeri
skma
nag
eme
nta
cti
onst
otryt
oavoi
dther
is
k(rikmi
s tig
ati
on)
,tobu
il
dup
re
ser
ves(ri
skc
onti
nge
ncy)an
dt oes
tabl
is
hanet
worko
fco
nta
ctstob
eab
letob
ett
erwit
hst
andp
rojec
tshoc
ks.

1
0Go
lde
nRu
leso
fPr
oje
ctRi
skMa
nag
eme
nt

Thebenef
itsofri
skma nag
ementi
np ro
jectsar
eh uge
.Youca
ngainalotofmoneyifyoudea
lwithunce
r t
ainproj
ect
eve
ntsinap ro
acti
vema nne
r.Th ere
sul
twi l
lb ethatyoumini
mis
et heimpa
cto fpro
jectthre
atsa n
ds ei
zethe
opp
ortuni
ti
esthatoccur.Thi
sall
owsyo
ut odel
iveryourpr
ojec
to ntime
,onbudgetan
dwiththequa
li
tyr es
ult
syour
pro
jectspo
n s
ordemand
s.Als
oyourtea
mme mbe
rswillb
emuchhappi
eriftheydonotent
era"fi
refi
ghti
ng"modenee
ded
torep
airthefai
lu
r e
sthatcou
ldhavebee
np re
ve n
ted.

Ru
le1
:Ma
keRi
skMa
nag
eme
ntPa
rto
fYo
urPr
oje
ct

Thefi
rstruleises
senti
altothesucce
ssofproje
c tr i
skman a
gement.I
fy oud on
'ttru
lyembe
dr i
skmanag
ementinyour
pro
ject,youc a
nn otreapthef ul
lbenefi
tsoft hisapproach.Youcane n c
ounte
ran umb
eroff au
ltyapproa
chesin
co
mpanies
.Someprojec
tsu s
enoapproac
hwh at
soevert oris
kma nagement.Theyareei
theri
gno
rant,r
unningt
heirfi
rst
pro
jectort heyareso
mehowc o
nfide
ntt ha
tn oriskswilloccurint h
e i
rp roj
ect(whic
hofcours
ewillhapp
en).Some
peo
plebli
ndlytrus
tt heproje
ctmanager
,espe
cial
lyi fhe(u su
allyitisama n)lo
oksl
ikeabatt
eredarmyveteranwho
ha
sbeeninth etre
nchesforthela
sttwodecades
.Pr ofe
ss
ionalcompani
esma keri
skmanag
eme
ntp a
rtoft h
eirda
yt oday
op
erati
onsandincl
udeitinproje
ctmeeti
ngsan
dt het rai
ningofstaff.

Ru
le2:
Ide
nti
fyRi
sksE
arl
yinY
ourPr
oje
ct

Thefirs
ts t
epinp ro
jectris
kma nag
emen ti
st oide
nti
fyt her i
sksthata r
ep res
entiny o
urp roj
ect.Thisreq
uiresan
op
enmi ndsetth atfocus
esonf uturescena
rio
st hatmayo ccu
r.Twoma insource
se xi
sttoidentif
yr i
sks,peopleand
pape
r.Pe o
plearey ourteammembersthateachb ri
ngalon
gt hei
rp ers
onalexperi
encesandexperti
se.Otherpeopleto
ta
lkt oareexpe rtso
u t
si
dey ou
rp roje
ctt ha
th aveat ra
ckr ecordwiththet ypeofprojectorworky ouaref ac
ing
.
Theycanr e
veals o
meb o
obytrapsyouwillenco
unterorsomegoldenopportu
n i
ti
esthatmayn othavecross
edy o
urmi nd
.
I
ntervi
ewsa ndteamsessi
ons(ri
skbrains
t o
rmin
g)a r
eth ecommonme t
hodstodisco
vert h
er i
skspeopl
ekn ow.Paperisa
di
fferentstor
y. Proj
ectstendtogenerateasig
nifi
cantnumbero f(ele
ctroni
c)d oc
umentsthatcontai
np ro
jectr i
sks
.
Theymayn otalwayshavet h
atn a
me,buts o
meonewhore a
dscarefull
y(b et
weent heli
nes
)wi l
lfindthem.Thepr oj
ect
pl
an,busin
esscasea n
dr esou
rcep l
annin
ga regoodsta
r te
rs.Anothercategor
iesareoldp r
ojectp l
ans
,y ou
rc ompany
I
ntranetandspecial
is
edwebsi
tes.

Areyouabl
et oi
dent
ifyallproj
ectri
sksbef
orethe
yo cc
ur?Pro
bab
lyn o
t.Howe
veri
fyouco
mbi
nean u
mberof
di
ffe
rentid
enti
fi
cat
ionme
t ho
ds,yo
uareli
kel
yt of
indthelar
gema
jor
ity
.Ifyoudea
lwi
tht
hempro
per
ly,yo
uhave
en
oug
ht i
mele
ftfort
heunexpecte
dris
kstha
ttakepl
ace
.

Ru
le3
:Co
mmu
nic
ateAb
outRi
sks

F
ail
edproje
ctss
howthatproje
ctmanage
rsinsu
chpro
jec
tswerefre
que
ntlyuna
wareofthebi
gh a
mmertha
twasabo
ut
t
oh i
tt h
em.Thefrig
hten
ingfind
ingwasthatfre
que
ntl
ys o
meoneo
fthep ro
jector
gani
sat
ionactu
all
ydidse
et h
at
h
ammer,bu
td i
dn'
tinfo
rmt h
ep ro
jectmanag
erofi
tsexi
st
ence.
Ifyoudo
n'twantthi
stohappeninyou
rproj
ect,y
ou
b
ette
rp a
ya t
tent
iontori
skcommuni
cat
ion
.

Agoo
dapproa
chist
oc o
nsi
st
entl
yinc
lud
er i
skco
mmu
nica
tio
nint h
etas
ksy
oucar
ryout.I
fyouhaveatea
mmeeti
ng,
ma
kep r
oje
ctris
kspar
toft h
edefa
ultag
enda(a
ndnotthefi
nali
temo
nthel
i
st!
).Th
issh
owsri
sksar
eimpo
rta
ntto
3
8
t
hep
roj
ectma
nag
era
ndg
ive
ste
amme
mbe
rsa"
nat
ura
lmo
men
t"t
odi
sc
usst
hema
ndr
epo
rtn
ewo
nes
.

Ano
theri
mport
antli
n eofcommun
icat
ioni
sthatofthepro
jectmana
gera
ndproj
ectspo
nso
rorprin
cipa
l.Fo
cusyo
ur
co
mmuni
cat
ioneff
ortsonthebigri
sksher
ea n
dmakesur
ey o
ud o
n'tsu
rpr
is
ethebos
sorthecu
sto
mer!Al
sotakeca
re
th
atthespons
ormakesdec
isio
nsont h
et o
pr i
sks
,be
cau
seusual
lyso
meofthe
me xc
eedthemand
ateoft h
ep r
oje
ct
ma
nage
r.

Ru
le4:
Con
sid
erBo
thTh
rea
tsa
ndOppo
rtu
nit
ies

Pro
jec
triskshaveanegati
vecon
notati
on:t
heyarethe"ba
dguys
"thatca
nharmyo
urproje
ct.Howe
vermo
der
nr i
sk
ap
proa
chesals
of o
cusonposi
ti
veris
ks,thepro
jecto
pp o
rtuni
ti
es
.Thes
earet
heunce
rtai
neventstha
tben
efi
ci
alto
yo
urproj
ectandorgan
isa
tio
n.The
se"g
oodguy
s"makey
ourproje
ctfas
ter
,be
tte
randmor
eprofi
tabl
e.

Unfor
tuna
tel
y,lo
tsofpro
jec
tt ea
msstru
ggl
etocros
sthefi
nis
hlin
e,bei
ngove
rlo
ade
dwithworkthatn e
edstobedo
ne
qu
ickl
y.Thi
screa
tespr
oje
ctd y
n a
micswhe
reonl
yn e
gati
veris
ksmatt
er(ifthetea
mc o
nsi
der
sa n
yr i
sksatall
).Ma
ke
su
rey o
ucreat
esometi
metodealwithth
eo p
port
unit
iesi
ny o
urproj
ect,eve
nifitiso
nlyhal
fa nhour.Ch
ancesa
re
tha
ty o
useeacou
pleo
foppor
tunit
ieswi
thahig
hpay-o
ffthatdon
'treq
ui
reabigi
nves
tmenti
ntimeorres
ourc
es.

Ru
le5
:Cl
ari
fyOwn
ers
hipI
ss
ues

So
mep roje
ctmanager
st hi
nkt heyaredoneoncetheyhavecreat
edalis
twithris
ks.Howeverthisisonl
yas ta
rti
ng
po
int.Thenextste
pistomakec l
earwhoisre
spons
ibl
eforwhatris
k!So
meoneha
stofeeltheh e
atifar i
skisnott
aken
ca
reofp ro
perl
y.Thetrickissi
mple
:ass
ig
nar i
skownerforeac
hr i
skth
atyouhavefound
. Theris
ko wneri
sthepers
on
i
ny o
urt ea
mt ha
th a
st herespo
nsi
bi
li
tyt oop
timi
sethi
sr i
skforthepr
ojec
t.Theeffec
tsa r
er ea
llyposi
ti
ve.Atfir
st
pe
opleusua
ll
yf ee
luncomfor
t a
blethattheyareact
uall
yr e
spo
n s
ib
lefo
rcerta
inris
ks,butastimepa s
se
sth e
ywil
lact
an
dc arr
yo u
tt a
skstodecre
a s
ethrea
tsandenhanc
eop p
ortuni
ti
es.

Own e
rshi
pals
oexis
tsonanotherle
vel.I
fap ro
jectthre
atoccurs
,so
meonehastopaythebil
l.Thi
sso
undslo
gic
al,b
utit
i
sa nis
sueyo
uh a
vetoa ddr
essbef
orear i
skocc
urs.Es
peci
al
lyifdi
ffere
ntb u
sine
ssuni
ts
, d
epartmen
tsandsuppl
ier
sare
i
n vol
vedinyourproj
e c
t,itbeco
mesimport
antwh obe
arsthecons
eque
ncesandh a
stoemptyh i
swall
et.Animport
ant
si
d eeff
ectofc l
ari
fyin
gt heowners
hipofr i
skeffec
ts,i
st ha
tlinemanag
ersstarttopaya tte
nti
ont oap ro
ject,
espec
ial
lywhenalotofmon e
yisatstake.Theowners
hipis
suei
sequal
lyimpor
tantwithprojecto
pportuni
ti
es.F
ight
s
over(unexp
ected)revenu
escanbeco
meal o
ng-t
ermpasti
meofmanag
ement.

Ru
le6
:Pr
ior
iti
seRi
sks

Ap roj
e c
tmanage
ro n
cet o
ldme" Itrea
ta llri
sksequa
ll
y."Thismakespr
o j
ectli
fer e
all
ysimple.However,i
td oes
n'
t
del
iverthebes
tresul
tspos
si
bl
e.Somer i
skshaveah i
ghe
rimp a
ctthanothe
r s
.There
fore,y
oub e
t t
ersp e
ndy ou
rt i
meon
t
h eris
kst ha
tcanc a
usethebi
ggestlos
sesandgai
ns.Checkify o
uh a
vean ysho
wstoppe
rsiny ourprojectthatcoul
d
derai
ly o
urproj
ect.I
fso,the
searey ou
rn umber1p r
ior
ity.Theothe
rriskscanbep r
ior
iti
sedong u
tf eel
ingor,more
o
b j
ectivel
y,onasetofc ri
ter
ia.Th ecrit
eri
amo s
tp roj
ectt ea
msuseistoc o
nsi
dert h
ee ffectsofar is
ka ndt he
l
ikeli
hoodtha
titwil
loccu
r.What
eve rprio
riti
sa
tio
nme a
sureyouuse
,usei
tc o
nsi
ste
ntlyandfocusontheb i
gris
ks.

Ru
le7
:An
aly
seRi
sks

Und
ers
tan
dingthenat
ureofari
skisapre
con
d i
ti
onfo
rago
odre
spo
nse
.Ther
efo
retakes
omet
imet
oha
veac
los
erl
oo
k
ati
ndi
vi
dualri
sksa
nddon'
tjumptocon
clu
si
onswi
tho
utkn
owi
ngwha
taris
kisab
out
.

Ri
ska
nal
ysi
soc
cur
satd
iff
ere
ntl
eve
ls
.Ify
ouwa
ntt
oun
der
sta
ndar
is
kata
nin
divi
dua
lle
veli
tismo
stf
rui
tfu
lto
3
9
thi
nka bo
uttheeffe
ctst h
atithasandthecaus
esthatcanma keithappe
n.Looki
ngattheeffec
ts,youc a
nd e
scri
be
whateffec
tstakepl
aceimmedi
ate
lyafte
rar i
skoccursandwhateffec
tshappenasares
ultoftheprimaryeffe
ctsor
be
causeti
meelaps
es
.Amor edeta
il
edanal
ysi
smayshowt h
eo r
derofma g
nit
udeeffecti
nac er
tai
ne ffe
c tcate
gor
ylike
co
sts,le
adt i
meorproductqual
ity.Ano
the
ra ngl
et oloo
ka tr i
sks,i
stof o
cusonthee vent
st h
atp r
ecedear i
sk
oc
currence
,theri
skcaus
es.Li
stthedi
ffe
rentcau
sesandthecir
c u
mstan
cestha
td ec
rea
seorincr
eas
et heli
keli
hoo
d.

Anot
h e
rl e
velofr i
skanal
ysi
sisinves
ti
gat
ethee n
tir
ep roj
ect
.Eachproj
ectman
age
rn eed
stoanswe
rt h
eu s
ual
qu
esti
onsabou
tt het
ota
lbudgetn
eededortheda
tetheproj
ectwi
llfi
ni
sh.
Ifyout
akeri
sksi
ntoac
cou
nt,youc
andoa
si
mul
atio
nt osho
wy o
urproj
ectspo
nsorhowl
ike
lyiti
sthatyoufi
ni
shonagi
venda
teorwit
hinace
rta
inti
meframe
.A
si
mi
larexerci
secanb
edoneforpro
jectco
sts
.

Thei
nfo
rmati
onyouga
theri
nar i
skan
alysi
swi
l
lpr
ovi
deva
lua
blei
nsi
ght
siny
ourp
roj
ecta
ndt
hen
ece
ss
aryi
npu
tto
fi
ndef
fect
ivere
spon
sest
oopti
mi
seth
er i
sks
.

Ru
le8
:Pl
ana
ndI
mpl
eme
ntRi
skRe
spo
nse
s

I
mple
menti
ngaris
krespo
nsei
stheac
tivi
tythatactu
all
yadd
svalu
etoyourp
roject
.Youpre
ventathr
eato
ccur
rin
gor
mi
ni
mis
en e
gat
iveeff
ects
.Exe
cuti
oni
ske yhe
re.Theoth
erru
lesha
vehel
pedyo
ut omap
, p
rio
rit
is
ean
dunder
sta
ndris
ks.
Thi
swil
lhel
py o
utomakeaso
undri
skr e
spo
nsepla
nthatfo
cuse
sonth
ebigwi
ns.

I
fyoudea
lwi
tht h
r e
atsyo
ub a
sic
all
yhavethr
eeop
tio
ns,ri
skavo
ida
nce,ri
skmini
mi
sati
onandris
ka c
cepta
n c
e.Avoi
ding
r
is
ksmeansy
ouorgani
seyou
rp ro
jecti
nsuchawaythatyoudon
'tenc
ounteraris
ka nymo
re.Thi
scoul
dme anchan
ging
s
uppl
ie
roradopt
ingadif
ferenttec
hnol
og
yor,i
fyoudea
lwithafat
alri
sk,ter
minat
ingaproj
ect.Spen
dingmoremon
ey
o
nad o
omedpr
ojec
tisabadinves
tment
.

Thebig
ges
tc a
tego
r yofrespo
nse
sareth
eo nest
ominimi
seri
sks.Youcantrytopreventaris
koccurri
ngbyin
flue
nci
ng
thecau
sesordecreas
ingtheneg
ati
veef
fectsthatcoul
dresul
t.I
fy ouhavecarr
iedoutrul
e7properl
y(ris
ka na
lys
is
)
yo
uwi l
lhavep l
entyofo ppo
rtuni
ti
est
oi nf
lue
nceit.Af i
nalrespo
nseistoacc
eptar i
sk.Thi
sisagoodch
oic
eifthe
ef
f e
ctsont h
ep roje
cta remin
ima
lort h
ep os
si
bil
i
tiestoinfl
uenceitprovetob everydi
ffi
cult
,timecon
sumi
ngor
re
lati
vel
ye xpen
sive.J
u s
tmakesur
ethatiti
saconsci
ousch
oicetoacce
ptac e
rtai
nr i
sk.

Res
pon
sesforri
skopp
ort
unit
iesa
ret h
ereve
rseoftheone
sfo
rth
rea
ts.Th
eywi
l
lfo
cuso
nse
eki
ngr
is
ks,ma
ximi
si
ng
th
emorign
orin
gthe
m(ifopp
ortun
iti
espro
vetobeto
osma
ll
).

Ru
le9
:Re
gi
st
erPr
oje
ctRi
sks

Thi
srul
eisab
outbo
okkeep
ing(ho
weverd
on'
tst
oprea
din
g).Ma
inta
ini
ngari
skl
oge
nabl
esy
outovi
ewp
rog
res
sandma
ke
su
rethatyouwon'
tforg
etar i
skortwo
.Iti
sal
soaperfe
ctcommun
ica
tio
nto
oltha
tinfo
rmsyo
urt
eammemb
ersa
nd
st
akeh
olde
rswhati
sgo
ingon(ru
le3).

Agoodr i
sklo
gcontai
nsri
sksd es
crip
tio
ns,cl
ari
fi
esownershi
piss
ues(rul
e5 )a ndena
b l
esyoutoc ar
r yoursomebasi
c
an
a l
yseswi
threg
ardt oca
usesande f
fect
s(rule7).Mos
tp ro
jectmanag
ersaren'
tr e
all
yf ondofadminis
trat
ivetasks
,
bu
td oingyou
rbookkeep
ingwithr eg
ardstoris
kspa y
so f
f,espec
ial
lyift h
en umbe
ro fr i
sksislar
g e
.Somep ro
ject
manag
ersdon'
twanttoreco
rdr i
sks,be
caus
etheyfee
lt h
ismakesi
teasi
ertoblamethe
mi ncas
eth i
ngsgowrong
.However
therevers
eistr
ue.I
fy o
ur e
c or
dp roj
ectris
ksandtheeffecti
verespo
nsesyouhaveimple
mented,youcreat
eat rack
re
c o
rdt ha
tnoonecandeny.
E venifaris
khappenst
h a
td e
rail
stheproje
ct.Doin
gproject
sistaki
ngrisks.

40
Ru
le1
0:Tr
ackRi
sksa
ndAs
so
cia
tedTa
sks

Theri
skre
gi
steryo
uh a
vecr
eate
dasar e
sul
tofrul
e9,wil
lhelpyout
otrac
kri
sksan
dt h
eiras
soc
iat
edta
sks
.Tr
acki
ng
ta
sksi
saday-t
o-d
ayj o
bfo
reachproj
ectmanag
er.I
nteg
rat
ingri
sktas
ksin
toth
atdai
lyrout
inei
stheea
si
es
tso
luti
on.
Ri
sktas
ksmaybecar
rie
dou
tt oi
den
tifyorana
lys
eris
ksortogen
erat
e,s
el
ecta
ndimpl
eme
ntr e
spon
ses
.

Tra
cki
ngrisksdi
ffe
rsfromtra
ckingtas
ks.I
tfocu
sesonthecu
rre
ntsi
tuat
ionofri
sks
.Whi
chri
sksar
emorel
i
kel
yto
ha
ppen
?Ha stherel
ati
veimpo
rtanc
eo fri
sksch
ange
d ?An
swer
ingt
hisq
ues
ti
onswil
lhel
ptopaya
t t
enti
ont
other
is
ks
th
atmatt
ermo s
tforyou
rp r
ojec
tva l
ue.

41
42