Agenda

0 Instructor Introduction 3 minutes

0 Agenda review 2 minutes

0 Chapter of the week 50 minutes

0 Q&A of chapter 10 minutes

0 Break 10 minutes

0 Exercises 25 minutes

0 Round table 15 minutes

0 Closure 5 minutes
Elapsed Time
5 minutes

Planning Project
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 Content
0 Plan Procurements

0 Developing the Human Resource Plan

0 Plan Quality

Planning Project
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 Plan Procurements
0 It is the process of identifying what goods or services you’re
going to purchase from outside the organization and which needs
the project team can meet.

Planning Project
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 Plan Procurements
In outsourced projects the seller is also known as:

• Vendor
• Supplier
• Contractor

The scope baseline includes:

• Project scope statement

• Constraints
• Assumptions

Planning Project
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 Plan Procurements-Contracts
What is a contract?
•A compulsory agreement between two or more parties and is used to acquire products or services from outside the organization. Contracts are enforced by law and require an
offer and an acceptance.

Contract types Fixed Price or Lump Sum – Set a specific firm price or includes incentives.
•Firm Fixed-Price (FFP)‫‏‬.
Fixed-Price Plus Incentive (FPIF)‫‏‬.
Fixed Price with Economic Price Adjustment (FP-EPA)‫‏‬.

Contract types Cost Reimbursable – Most often used when the project scope contains uncertainty or large investments
early in the project life.
•Cost Plus Fixed Fee (CPFF). Fixed fee portion is the seller’s profit.‫‏‬
Cost Plus Incentive Fee (CPIF). Incentive fee encourages better cost performance.
Cost Plus Percentage of Cost (CPPC)‫‏‬. Fee based on cost, no motivation to keep cost slow.
Cost Plus Award Fee (CPAF)‫‏‬. Is the riskiest for the seller, award is not usually contestable.

Contract types Time and materials

•Hybrid type of contractual arrangements that contain aspects of both cost-reimbursable and fixed-price contracts. Most used when you need human resources and when it’s
possible to quickly and precisely define the scope of work.

Planning Project
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 Plan Procurements-Contracts
Low Risk (-)‫‏‬ High Risk (+)‫‏‬

Cost Reimbursable Contracts

Seller –> contractor / Supplier / Vendor

Time and Materials Contracts

Buyer –> Customer

Fixed Price Contracts

High Risk (+)‫‏‬ Low Risk (-)‫‏‬

Planning Project
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 Plan Procurements-Outputs
SOW Make or Buy decisions Procurement documents

They are prepared by the

buyer to assure as accurate
Contains the detail of the and complete response from
Document that outlines
procurement items in clear all potential bidders. When
which goods or services will
concise terms. It might be decision is primarily on price,
be produced and which will
prepared by the seller or the the term bid and quotation
be purchased.
buyer. are used. When
considerations other than
price, technology for
example, the term proposal
is used.

RFP: Request for proposal

RFI: Request for information
IFB: Invitation for Bid
RFQ: Request for quotation

Planning Project
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Resources
Develop Human Resource Plan
0 It is the process of identifying and documenting project roles,
responsibilities, and required skills, reporting relationships, and
creating a staffing management plan.

Planning Project
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Resources
Develop Human Resource Plan
Environmental factors to consider when developing the plan:
• Organizational
• Existing human resources and marketplace conditions
• Personnel policies
• Technical
• Interpersonal
• Location and logistics
• Political

Constraints to consider when developing the plan:

• Organizational structures
• Collective bargaining
• Economic Conditions
Planning Project
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Develop Human Resource Plan
Tools & techniques
• Organizational charts and Position descriptions:
• Hierarchical charts
• Matrix-based charts *
• Text-oriented formats
• Other sections of the Project Mgmt. Plan

Planning Project
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Develop Human Resource Plan
Outputs
• Human resource plan components:
• Roles and Responsibilities (RAM or RACI Charts)‫‏‬
• Project organizational charts
• Staffing Management Plan
• Staff acquisition
• Resource calendars*
• Staff release plan
• Training needs
• Recognition and rewards
• Compliance
• Safety
Planning Project
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 Plan Quality
0 This process is concerned with targeting quality standards that are
relevant to the project.

Planning Project
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 Plan Quality
Quality is affected by the triple constraint:

• Cost of Quality (COQ) – is the total cost to produce the product or

service of the project according to the quality standards. This cost
includes all work, whether it was planned or unplanned.

Planning Project
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 Plan Quality
• The cost associated with the COQ are:
• Prevention Cost - Cost associated with satisfying customer
requirements by producing a product without defects.
• Appraisal Cost – Cost expended to examine the product or process
and make certain the requirements are being met.
• Failure Cost - Cost of poor quality. Nonconformance Costs.

Planning Project
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 Plan Quality
Theories on the COQ
• Crosby = Zero defects and preventions or reworks results.
• Juran = Fitness for use, conformance. Quality by design
• Deming = Quality is a management problem.
• Feigenbaum = Founder of TQM
• Shewhart = Plan-Do-Chek-Act cycle
• TQM = Quality must be managed in and must be a continuous process
• Six Sigma = measurement based strategy; no more than 3.4 defects per
million opportunities.
• Kaizen = Continuous improvement; improve quality of people first.
• Continuous improvement = Watch continuously for ways to improve
quality
Planning Project
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Resources
Questions or comments

Elapsed time
55 minutes

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Break: 10 minutes

Elapsed time
65 minutes

18
Exercises

Elapsed time
75 minutes

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Round table

Elapsed time
100 minutes

20
Tips for the exam

Elapsed time
115 minutes

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0 The purpose of the Plan Procurements process is to identify which project
needs should be obtained from outside the organization

0 Contract types are a tool and technique of the Plan Procurements process
and include fixed-price and cost-reimbursable contracts.

0 The outputs of Plan Procurements are procurement management plan,

procurement statements of work, make-or buy decisions, procurement
documents, source selection criteria, and change requests.

0 Develop Human Resource Plan involves determining roles and

responsibilities, reporting relationships for the project, and creating the
staffing management plan.

0 The benefits of meeting quality requirements include increased stakeholder

satisfaction, lower costs, higher productivity, and less rework.

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0 Bibliography:
0 Heldman, Kim. PMP® Project Management Professional Exam
Study Guide. Sybex. Wiley Publishing, Inc. 5th ed. 2009.
0 Project Management Institute, Inc. A guide to the Project
Management Body of Knowledge (PMBOK). 4th ed. 2008.

0 Authors:
0 Iván Guillén Franco, PMP®
0 Luis Catalán, PMP®
0 Roberto Burgos, PMP®

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