ProjectManagementProcessGroups

Initiating 4.Integration 4 Integration

4.1Develop 4.1 Develop ProjectCharter

Planning
4.2DevelopProject 4.2 Develop Project Management Plan

Executing
4.3Direct&Manage Project 4.3 Direct & Manage Project Execution

Monitoring&Control.
4.4Monitor&ControlProject 4.4 Monitor & Control Project Work 4.5 PerformIntegrated ChangeControl 5.4VerifyScope 5.5ControlScope 6.6ControlSchedule

Closing
4.6CloseProject or 4.6 Close Project or Phase

5.Scope 6.Time

5.1CollectRequirements 5.2DefineScope 5.3CreateWBS 6.1DefineActivities 6.2 SequenceActivities 6.3EstimateActivity Resources 6.4EstimateActivity Durations 6.5 DevelopSchedule 6 5 Develop Schedule 7.1EstimateCosts 7.2Determine Budget 8.1PlanQuality 9.1DevelopHuman p ResourcesPlan 10.1 Identify Stakeholders 10.2PlanCommunications 8.2Perform QualityAssurance 9.2 AcquireProjectTeam q j 9.3DevelopProjectTeam 9.4ManageProjectTeam 10.3DistributeInformation 10.4ManageStakeholders Expectations

Knowle edgeAreas

7.Cost 8.Quality 9.Human 9 Human Resources 10.Communication 11.Risk 11 Risk

7.3ControlCosts 8.3Perform QualityControl

3 3 4

10.5ReportPerformance

5
11.6 Monitor&ControlRisks 11 6 Monitor & Control Risks

11.1 PlanRisk 11 1 Plan Risk Management 11.2IdentifyRisks 11.3PerformQualitative RiskAnalysis 11.4PerformQuantitative RiskAnalysis 11.5PlanRiskResponses 11.5 Plan Risk Responses 12.1PlanProcurements 12.2ConductProcurements

12. Procurement

12.3Administer Procurements

12.4Close Procurements

20

10

42

 4.1DevelopProjectCharter 4 1 Develop Project Charter

Inputs
1. 2. 2 3. 4.

Tool&Techniques

Outputs

1. ExpertJudgment 1. ProjectCharter Project StatementofWork BusinessCase B i C ProjectCharterdocumentsbusinessneeds,current Contract understandingofthecustomersneedsandthe EnterpriseEnvironmental newproduct,service,orresultthatitisintendedto Factors satisfy,suchas: 5. OrganizationalProcess Projectpurposeorjustification j p p j Assets Measurableprojectobjectivesandrelated ProjectStatementofWork EnterpriseEnvironmentalFactors successcriteria Businessneed Governmentalorindustry Highlevelrequirements Productscopedescription standards Highlevelprojectdescription Strategicplan Organizationinfrastructure Highlevelrisks BusinessCase Marketplaceconditions p Summarymilestoneschedule S il h d l Marketdemand OrganizationalProcessAssets Summarybudget Organizationalneed Organizationalstandard Projectapprovalrequirements Customerrequest processes,policies,and Assignedprojectmanager,responsibility Technologicaladvance standardizedprocess andauthoritylevel Legalrequirements definitions Nameandauthorityofthesponsororother Name and authority of the sponsor or other Ecologicalimpacts Historicalinformation& person(s)authorizingtheprojectcharter Socialneed lessonslearned

 10.1IdentifyStakeholders 10 1 Identify Stakeholders

Inputs
1. 2. 3. 4. ProjectCharter ProcurementDocuments EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. StakeholderAnalysis 2. ExpertJudgment p g (seenextslidefordetails)

Outputs
1. 2. StakeholderRegister StakeholderManagement g Strategy

EnterpriseEnvironmentalFactors Enterprise Environmental Factors Organizationalorcompany cultureandstructure Governmentalorindustry standards OrganizationalProcessAssets Stakeholdersregister templates Lessonslearned Stakeholder Stakeholderregisters

StakeholderRegister IdentificationInformation Assessmentinformation Stakeholderclassification S k h ld l ifi i StakeholderManagementStrategy Definesanapproachto increasethesupportand minimizenegativeimpactsof stakeholders SampleStakeholderAnalysisMatrix
Stakeholder Interest(s)inthe Project Assessmentof Impact PotentialStrategiesforGainingSupportor ReducingObstacles

1.Stakeholder Analysis
Itisthetechniqueofsystematicallygatheringandanalyzingquantitativeandqualitativeinformationtodeterminewhose interestshouldbetakenintoaccountthroughouttheproject. Step1:IDallpotentialstakeholders Step2:IDthepotentialimpactorsupport Power/Interestgrid Power/Influencegrid Influence/Impactgrid Saliencemodel describesclassesofstakeholdersbasedontheirpower,urgency,andlegitimacy. Salience model describes classes of stakeholders based on their power urgency and legitimacy Step3:Assesshowkeystakeholdersarelikelytoreactorrespond

Power/InterestGridwithStakeholders

2.ExpertJudgment 2 E tJ d t

Lookforseniormanagement,IDkeystakeholders,PM,subjectmatterexperts(SME),industrygroupsandconsultants &professionalandtechnicalassociations.

 4.2DevelopProjectManagementPlan 4 2 Develop Project Management Plan

Inputs
1. 2.

Tool&Techniques

Outputs
1. ProjectManagementPlan

ProjectCharter 1. ExpertJudgment OutputsfromPlanning p g Processes 3. EnterpriseEnvironmental Factors 4. OrganizationalProcess Assets EnterpriseEnvironmentalFactors E t i E i t lF t Organizationalorcompanycultureand structure Governmentalorindustrystandards Projectmanagementinformationsystems Personneladministration Personnel administration Infrastructure OrganizationalProcessAssets Standardizedguidelines Projectmanagementplantemplate Changecontrolprocedures Projectfilesfrompastprojects Historicalinfo&lessonslearned Configurationmanagementknowledgebase

 5.1CollectRequirements 5 1 Collect Requirements

Inputs
1. 2. ProjectCharter StakeholderRegister g

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8. Interviews FocusGroups p FacilitatedWorkshops GroupCreativityTechniques GroupDecisionMakingTechniques Questionnaires&Surveys Observations Prototypes

Outputs
1.

Requirements Documentation 2. RequirementsManagement Plan 3. RequirementsTraceability Matrix FacilitatedWorkshops RequirementsTraceabilityMatrix JointApplicationDevelopment Requirementstobusiness (JAD) needs,opportunities,goals QualityFunctionDeployment(QFD) andobjectives VoiceoftheCustomer(VOC) Requirementstoproject GroupCreativityTechniques objectives Brainstorming Requirementstoproject Requirements to project scope/WBSdeliverables Nominalgrouptechnique TheDelphiTechnique Requirementstoproduct ProductScope:Thefeaturesandfunctions design Idea/mindmapping thatcharacterizeaproduct,service,or Requirementstoproduct Affinitydiagram result p g q development p GroupDecisionMakingTechniques ProjectScope:Theworkthatneedstobe Unanimity Requirementstoteststrategy accomplishedtodeliveraproduct, Majority andtestscenarios service,orresultwiththespecified Plurality Highlevelrequirementsto featuresandfunctions Dictatorship moredetailedrequirements

 5.2DefineScope 5 2 Define Scope

Inputs
1. 2. 3. ProjectCharter Requirements q Documentation OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. 4. ExpertJudgment ProductAnalysis y AlternativesIdentification FacilitatedWorkshops

Outputs
1. 2. ProjectScopeStatement ProjectDocumentUpdates j p ProjectScopeStatement Productscopedescription Productacceptancecriteria Projectdeliverables Projectexclusions Project exclusions Projectconstraints Projectassumptions ProjectDocumentUpdates Stakeholderregister Requirementsdocumentation q Requirementstraceability

ProductAnalysis Productbreakdown Systemsanalysis y y Requirementsanalysis Systemsengineering Valueengineering Valueanalysis AlternativesIdentification Brainstorming Lateralthinking Pairwisecomparisons

 5.3CreateWBS 5 3 Create WBS

Inputs
1. 2. 3. ProjectScopeStatement Requirements q Documentation OrganizationalProcess Assets

Tool&Techniques
1. Decomposition

Outputs
1. 2. 3. 4. WBS WBSDictionary y ScopeBaseline ProjectDocumentUpdates

OrganizationalProcessAssets Policies,procedures, andtemplatesforthe WBS Projectfilesform previousprojects Lessonslearnedfrom Lessons learned from previousprojects

WBSDictionary Codeofaccounts Descriptionofwork p Responsibleorganization Listofschedulemilestones Associatedschedule activities Resourcesrequired Costestimates Qualityrequirements Acceptancecriteria Technicalreferences Contractinformation ScopeBaseline Scope Baseline Projectscopestatement WBS WBSdictionary

 6.1DefineActivities 6 1 Define Activities

Inputs
ScopeBaseline EnterpriseEnvironmental p Factors 3. OrganizationalProcess Assets EnterpriseEnvironmentalFactors Projectmanagementinformation system(PMIS) OrganizationalProcessAssets Existingformalandinformal activityplanningrelatedpolicies, procedures,andguidelines Lessonslearnedknowledgebase L l dk l d b 1. 2.

Tool&Techniques
1. 2. 3. 4. Decomposition RollingWavePlanning g g Templates ExpertJudgment

Outputs
1. 2. 3. ActivityList ActivityAttributes y MilestoneList

ActivityAttributes ActivityID WBSID ActivityName Activity Name ActivityCode ActivityDescription PredecessorActivities SuccessorActivities LogicalRelationships Leads&Lags LevelofEffort(LOE) DiscreteEffort ApportionedEffort(AE)

 6.2SequenceActivities 6 2 Sequence Activities

Inputs
1. 2. 3. 4. 5. ActivityList ActivityAttributes y MilestoneList ProjectScopeStatement OrganizationalProcess Assets

Tool&Techniques
1. PrecedenceDiagrammingMethod ( (PDM) ) 2. DependencyDetermination 3. ApplyingLeads&Lags 4. ScheduleNetworkTemplates PrecedenceDiagrammingMethod(PDM) FinishtoStart(FS) FinishtoFinish(FF) StarttoStart(SS) StarttoFinish(SF) DependencyDetermination Mandatorydependencies Discretionarydependencies Di ti d d i Externaldependencies

Outputs
1. 2. ProjectScheduleNetwork Diagrams g ProjectDocumentUpdates

ProjectDocumentUpdates Activitylists Activityattributes Riskregister ik i

PrecedenceDiagrammingMethod(PDM)

 6.3EstimateActivityResources 6 3 Estimate Activity Resources

Inputs
1. 2. 3. 4. 5. ActivityList ActivityAttributes y ResourceCalendars EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. 4. 5. ExpertJudgment AlternativesAnalysis y PublishedEstimatingData BottomUpEstimating Projectmanagement Software

Outputs
ActivityResource Requirements q 2. ResourceBreakdown Structure(RBS) 3. ProjectDocumentUpdates ResourceBreakdownStructure(RBS) Labor Material Equipment Supplies ProjectDocumentUpdates Activitylist Activityattributes A ti it tt ib t Resourcecalendars 1.

EnterpriseEnvironmentalFactors Resourceavailabilityandskills OrganizationalProcessAssets Policesandproceduresregarding staffing Policiesandproceduresrelating P li i d d l i therentalandpurchaseof suppliesandequipment Historicalinformationregarding typesofresourcesusedinsimilar work

 6.4EstimateActivityDurations 6 4 Estimate Activity Durations

Inputs
1. 2. 3. 4. 5. 6. 7. ActivityList ActivityAttributes y ActivityResource Requirements ResourceCalendars ProjectScopeStatement EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. ExpertJudgment 2. AnalogousEstimating g g 3. ParametricEstimating 4. ThreePointEstimating 5. ReserveAnalysis (see:7.1EstimateCosts)

Outputs
1. ActivityDurationEstimates 2. ProjectDocumentUpdates j p ProjectDocumentUpdates Activityattributes Assumptionsmadein developingtheactivity durationestimatesuchas killlevelsandavailability

ResourceCalendars Type,availability,andcapabilitiesofHR ProjectScopeStatement Assumptions: Existingconditions Availabilityofinformation Lengthofreportingperiods Constrains C i Availableskilledresources Contractterm&requirements

EnterpriseEnvironmentalFactors Durationestimatingdatabases Productivitymetrics Publishedcommercialinformation OrganizationalProcessAssets Historicaldurationinformation Projectcalendars Schedulingmethodology S h d li h d l Lessonslearned

 6.5DevelopSchedule 6 5 Develop Schedule

Inputs
ActivityList ActivityAttributes y ProjectScheduleNetwork Diagrams 4. ActivityResource Requirements 5. ResourceCalendars 6. ActivityDurationEstimates 7. ProjectScopeStatement 8. EnterpriseEnvironmental Factors 9. OrganizationalProcess Assets EnterpriseEnvironmentalFactors Schedulingtoolthatcanbe usedindevelopingthe schedule OrganizationalProcessAssets g Schedulingmethodology Projectcalendar 1. 2. 3.

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8. ScheduleNetworkAnalysis CriticalPathMethod CriticalChainMethod ResourceLeveling WhatIfScenarioAnalysis ApplyingLeads&Lags ScheduleCompression ScheduleTool

Outputs
1. 2. 3. 4. ProjectSchedule ScheduleBaseline ScheduleData ProjectDocumentUpdates

ScheduleCompression Crashing Fasttracking

ProjectSchedule Milestonecharts Barcharts Bar charts Projectschedulenetworkdiagrams ScheduleData Resourcerequirementsbytime period Alternativeschedules Alternative schedules Schedulingofcontingencyreserves ProjectDocumentUpdates Activityresourcerequirements Activityattributes Calendar Riskregister

 7.1EstimateCosts 7 1 Estimate Costs

Inputs
1. 2. 3. 4. 5. 6. ScopeBaseline ProjectSchedule j HumanResourcePlan RiskRegister EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8.

Outputs

ScopeBaseline ScopeStatement WBS WBSDictionary EnterpriseEnvironmentalFactors MarketConditions PublishedCommercial Information OrganizationalProcessAssets CostEstimatingPolices C t E ti ti P li CostEstimatingTemplates HistoricalInformation LessonsLearned

ExpertJudgment 1. ActivityCostEstimates AnalogousEstimating g g 2. BasisofEstimates ParametricEstimating 3. ProjectDocumentUpdates BottomUpEstimating ActivityCostEstimates:Directlabor, ThreePointEstimating materials,equipment,services, ReserveAnalysis facilities,info.tech.,andspecial CostofQuality categorieslikeinflationallowanceor i lik i fl i ll ProjectManagement acostcontingencyreserve. EstimatingSoftware BasisofEstimates:SomeSupport.Details: 9. VendorBidAnalysis BasisoftheEstimate AnalogousEstimating:Usesvaluesof Allassumptionsmade parameters,suchasscope,cost,etc. Anyknownconstrains Any known constrains Lesscostly,butlessaccurate. L tl b t l t Rangeofestimates ParametricEstimating:Usesastatistical Confidenceleveloffinal relationshipbetweenhistoricaldataand estimate othervariables.(e.g.unitprice) ProjectDocumentUpdates:RiskRegister ThreePointEstimates:UsesPERTequation: MostLikely(ml) Most Likely (ml) Optimistic(o) StandardDeviationEquation:(po)/6 Pessimistic(p) ExpectedActivityCost=(o+4ml+p)/6 ReserveAnalysis:Inc.contingencyreserves

 7.2DetermineBudget 7 2 Determine Budget

Inputs
ActivityCostEstimates BasisofEstimates ScopeBaseline ProjectSchedule ResourceCalendars Contracts OrganizationalProcess Assets ScopeBaseline ScopeStatement WBS WBSDictionary ProjectSchedule Project Schedule Plannedstart/finishdates Milestones&workpackages Planningpackages Controlaccounts OrganizationalProcessAssets g Costbudgetpolices, procedures,&guidelines Costbudgetingtools Reportingmethods 1. 2. 3. 4. 5. 6. 7.

p Outputs
1. 2. 3. CostPerformanceBaseline ProjectFunding Requirements ProjectDocumentUpdates

Tool&Techniques
1. 2. 3. 4. 5. CostAggregation ReserveAnalysis y ExpertJudgment HistoricalRelationships FundingLimitReconciliation

CostAggregation:Costestimatesare aggregatedbyworkpackagesin aggregated by work packages in accordancewiththeWBS. ReserveAnalysis:Itcanestablishthe contingency(fromrealizedrisks)& Expenditures management(unplannedchangesto scope&cost)reserves. HistoricalRelationships:Anythatresultin parametricoranalogousestimates ProjectFundingRequirements:Theyare involvetheuseofprojectcharacteristics derivedfromthecostbaseline. todevelopmath.Modelstopredicttotal Includeprojectedexpendituresplus projectcosts. anticipatedliabilities. p FundingLimitReconciliation:Expenditureof ProjectDocumentUpdates: F di Li i R ili i E di f fundsshouldbereconciledwithany RiskRegister fundinglimitsonthecommitmentof CostEstimates fundsfortheproject. ProjectSchedule

CostPerformanceBaseline:Authorized timephasedbudgetatcompletion (BAC)usedtomeasure,monitor,and controloverallcostperformanceon theproject.

 8.1PlanQuality 8 1 Plan Quality

Inputs
ScopeBaseline StakeholderRegister g CostPerformanceBaseline ScheduleBaseline RiskRegister EnterpriseEnvironmental Factors 7. OrganizationalProcess Assets ScopeBaseline ScopeStatement WBS WBSDictionary WBS Dictionary EnterpriseEnvironmentalFactors Governmentalagencyregulations Rules,standards&guidelines Working/operatingconditions OrganizationalProcessAssets Organizationalqualitypolices, procedures,&guidelines Hist.data&lessonslearned Qualitypolicy 1. 2. 3. 4. 5. 6.

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8. 9. CostBenefitAnalysis CostofQuality(COQ) Q y ( Q) ControlCharts Benchmarking DesignofExperiments(DOE) StatisticalSampling Flowcharting ProprietaryQualityManagement Methodologies AdditionalQualityPlanningTools

Outputs
1. QualityManagementPlan 2. QualityMetrics Q y 3. QualityChecklists 4. ProcessImprovementPlan 5. ProjectDocumentUpdates QualityMetrics:Operationaldefinitionthat describesaprojectorproductattribute& howtheQualityControlProcesswill measureit. ProcessImprovementPlan Processboundaries Processconfiguration Processmetrics P ti Targetsforimprovedperformance ProjectDocumentUpdates Stakeholderregister ResponsibilityAssignmentMatrix

(seenextfourslidesfordetails)

1.CostBenefitAnalysis 2.CostofQuality(COQ)
CostofConformance
PreventionCosts
(Buildaqualityproduct) Training Documentprocesses Equipment Time to do it right Timetodoitright

Theprimarybenefitsofmeetingqualityrequirementscanincludelessrework,higherproductivity,lowercosts,and increasedstakeholdersatisfaction.

Includesallcostsincurredoverthelifeoftheproductbyinvestmentinpreventingnonconformancetorequirements, appraisingtheproductorserviceforconformancetorequirements,andfailingtomeetrequirements(rework).

CostofNonconformance
InternalFailureCosts
(Failuresfoundbytheproject) Rework Scrap

ExternalFailureCosts External Failure Costs

(Failuresfoundbythecustomer) Liabilities Warrantywork Lostbusiness

AppraisalCosts
(Assessthequality) Testing Destructivetestingloss Inspections

Moneyspentduringtheprojecttoavoidfailures Moneyspentduring&aftertheprojectbecauseoffailures

3.ControlCharts
UpperSpecificationLimit

Theprimarybenefitsofmeetingqualityrequirementscanincludelessrework,higherproductivity,lowercosts,and increasedstakeholdersatisfaction.

LowerSpecificationLimit

ControlChartofConsecutiveMeasurementswithFixedLimits

4.Benchmarking 4. Benchmarking

Involvescomparingactualorplannedprojectpracticestothoseofcomparableprojectstoidentifybestpractices, generateideasforimprovement,andprovideabasisformeasuringperformance.

5.Design f E 5 D i ofExperiments(DOE) i t (DOE)

DOEisastatisticalmethodforidentifyingwhichfactorsmayinfluencespecificvariablesofaproductorprocessunder developmentorinproduction.

7.Flowcharting

Aflowchartisagraphicalrepresentationofprocessshowingtherelationshipsamongprocesssteps.

8.ProprietaryQualityManagementMethodologies

TheseincludeSixSigma,LeanSixSigma,QualityFunctionDeployment,CMMI,etc.

9.AdditionalQualityPlanningTools

Brainstorming:Thegoalistoobtainacomprehensivelistofprojectrisks. AffinityDiagrams:Usedtovisuallyidentifylogicalgroupingsbasedonnaturalrelationships. ForceFieldAnalysis:Whicharediagramsoftheforcesforandagainstchange. Nominal Group Techniques: To allow ideas to be brainstormed in small groups and then reviewed by a NominalGroupTechniques:Toallowideastobebrainstormedinsmallgroupsandthenreviewedbya largergroup. MatrixDiagrams:Whichincludetwo,three,orfourgroupsofinformationandshowrelationshipsbetween factors,causes,andobjectives. PrioritizationMatrices:Whichprovideawayofrankingadiversesetofproblemsand/orissues(usually generatedthroughbrainstorming)bytheirimportance.

 9.1DevelopHumanResourcesPlan 9 1 Develop Human Resources Plan

Inputs
1. 2. 3. ActivityResource Requirements q EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. OrganizationCharts& PositionDescriptions p 2. Networking 3. OrganizationalTheory (seenextslidefordetails)

Outputs
1. HumanResourcePlan HumanResourcePlan Roles&responsibilities Role Authority Responsibility Competency C t Projectorganizationcharts Staffingmanagementplan Staffacquisition Resourcecalendars Staffreleaseplan Staff release plan Trainingneeds Recognitionandrewards Compliance Safety

EnterpriseEnvironmentalFactors Enterprise Environmental Factors Organizationalcultureand structure Existinghumanresources Personneladministrationpolicies Marketplaceconditions OrganizationalProcessAssets Organizationalstandard processesandpoliciesand standardizedroledescriptions Templatesfororganizational chartsandpositiondescriptions charts and position descriptions Historicalinformationon organizationalstructuresthan haveworkedinpreviousprojects

1.Organization ChartsandPositionDescriptions

Therearethreetypesofdefinitionformatstodocumentteammemberrolesandresponsibilities:

ResponsibilityAssignmentMatrix(RAM)usingaRACIFormat

 10.2PlanCommunications 10 2 Plan Communications

Inputs
1. 2. 3. 4. StakeholderRegister StakeholderManagement g Strategy EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
Communications RequirementsAnalysis q y 2. CommunicationTechnology 3. CommunicationModels 4. CommunicationMethods CommunicationsRequirementsAnalysis Totalnumberofcommunication channelsequation: n(n1)/2 CommunicationTechnology Factorsthatcan affecttheproject: Urgencyoftheneedforinfo Availabilityoftechnology A il bilit f t h l Expectedprojectstaffing Durationoftheproject Projectenvironment (Seenextslidefordetailson3&4) 1.

Outputs
1. 2. Communications ManagementPlan g ProjectDocumentUpdates

ProjectDocumentUpdates ProjectSchedule Stakeholderregister Stakeholder register Stakeholdermanagement strategy

3.CommunicationsModels

ABasicmodel: Encode Message& Message & feedbackmessage Medium Noise Decode

4.CommunicationsMethods

CommunicationsMethodsclassification: Interactivecommunication: Betweentwoormorepartiesperformingamultidirectionalexchangeofinformation. Meetings,phonecalls,etc. Pushcommunication Senttospecificrecipientswhoneedtoknowtheinformation. Letters,memos,reports,emails,faxes,etc. Pullcommunication Usedforverylargevolumesofinformation,orforverylargeaudiences,thatrequirestherecipientstoaccessthe Used for very large volumes of information or for very large audiences that requires the recipients to access the communicationcontentattheirowndiscretion. Internetsites,elearning,andknowledgerepositories,etc.

 11.1PlanRiskManagement 11 1 Plan Risk Management

Inputs
1. 2. 3. 4. 5. 6. ProjectScopeStatement CostManagementPlan g ScheduleManagementPlan Communications ManagementPlan EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. PlanningMeeting&Analysis

Outputs
1. RiskManagementPlan RiskManagementPlan Risk Management Plan Methodology Rolesandresponsibilities Budgeting Timing Riskcategories(seenextslide) Risk categories (see next slide) Definitionsofriskprobabilityand impact(seenextslide) Probabilityandimpactmatrix Revisedstakeholderstolerances Reportingformats Tracking

EnterpriseEnvironmentalFactors Riskattitudesandtolerances OrganizationalProcessAssets Riskcategories Commondefinitionsof conceptsandterm Standardtemplates Rolesandresponsibilities Authoritylevelsfordecision Authority levels for decision making Lessonslearned Stakeholderregisters

1.RiskManagement Plan
RiskCategories.ARiskBreakdown Structure(RBS)isahierarchically organizeddepictionoftheidentified projectrisksarrangedbyrisk categoryandsubcategorythat category and subcategory that identifiesthevariousareasand causesofpotentialrisks:

DefinitionsofriskProbabilityand impact.Thistableisanexample impact This table is an example ofdefinitionsofnegativeimpacts thatcouldbeusedinevaluating riskimpactsrelatedtofour projectobjectives.Thefigure illustratesbothrelativeand ill b h l i d numeric(nonlinear)approaches.

 11.2IdentifyRisks 11 2 Identify Risks

Inputs
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Tool&Techniques

Outputs

RiskManagementPlan 1. DocumentationReviews 1. RiskRegister ActivityCostEstimates y 2. InformationGathering g RiskRegister Risk Register ActivityDurationEstimates Techniques Listofidentifiedrisks ScopeBaseline 3. ChecklistAnalysis Listofpotentialresponses StakeholderRegister 4. AssumptionsAnalysis CostManagementPlan 5. DiagrammingTechniques ScheduleManagementPlan 6. SWOTAnalysis QualityManagementPlan 7. ExpertJudgment InformationGatheringTechniques ProjectDocuments Brainstorming EnterpriseEnvironmental Delphitechnique Factors Interviewing 11. OrganizationalProcess Rootcauseanalysis Assets DiagrammingTechniques Di i T h i ProjectDocuments Causeandeffectdiagrams(Ishikawaorfishbone) Assumptionslog,workperformancereports,earnedvalue Systemorprocessflowcharts reports,networkdiagrams,baselines&otherprojectinfo Influencediagrams EnterpriseEnvironmentalFactors Publishedinfo,academicstudies,benchmarking,industry studies&riskattitudes OrganizationalProcessAssets Projectfiles,organizationalandprojectprocesscontrols, riskstatementtemplates&lessonlearned

 11.3PerformQualitativeRiskAnalysis 11 3 Perform Qualitative Risk Analysis

Inputs
1. 2. 3. 4.

Tool&Techniques

Outputs
1. RiskRegisterUpdates RiskRegisterUpdates Risk Register Updates Relativerankingorprioritylistof projectrisks Risksgroupedbycategories Causesofriskorprojectareas requiringparticularattention requiring particular attention Listofrisksrequiringresponsesinthe nearterm Listofrisksforadditionalanalysisand response Watchlists oflowpriorityrisks Trendsinqualitativeriskanalysis results

RiskRegister 1. RiskProbability&Impact RiskManagementPlan g Assessment ProjectScopeStatement 2. Probability&ImpactMatrix OrganizationalProcess 3. RiskDataQuality Assets Assessment 4. RiskCategorization RiskManagementPlan 5. RiskUrgencyAssessment Roles&responsibilitiesfor 6. ExpertJudgment conductionriskmanagement (seenextslidefordetails) Budgets Schedulesactivitiesforrisk management Riskcategories Definitionsofprobabilityandimpact D fi iti f b bilit di t Impactmatrix Revisedstakeholdersrisktolerances OrganizationalProcessAssets Informationonprior,similar completedprojects completed projects Studiesofsimilarprojectsbyrisk specialists Riskdatabasesfromindustry

2.ProbabilityandImpactMatrix

 11.4PerformQuantitativeRiskAnalysis 11 4 Perform Quantitative Risk Analysis

Inputs
1. 2. 3. 4. 5.

Tool&Techniques

Outputs
1. RiskRegisterUpdates RiskRegisterUpdates Probabilisticanalysisoftheproject Probabilityofachievingcostand timeobjectives Prioritizedlistofquantifiedrisks Trendsinquantitativeriskanalysis T d i tit ti i k l i results

RiskRegister 1. DataGathering& RiskManagementPlan g Representation p CostManagementPlan 2. Techniques ScheduleManagementPlan 3. QuantitativeRiskAnalysis& OrganizationalProcess ModelingTechniques Assets 4. ExpertJudgment RiskManagementPlan (seenextthreeslidesfordetails) Roles&responsibilitiesfor conductionriskmanagement Budgets Schedulesactivitiesforrisk management Riskcategories Risk categories Definitionsofprobabilityandimpact Impactmatrix Revisedstakeholdersrisktolerances OrganizationalProcessAssets p , Informationonprior,similar completedprojects Studiesofsimilarprojectsbyrisk specialists Riskdatabasesfromindustry

1.DataGatheringandRepresentationTechniques

Interviewing.Interviewingtechniquesdrawonexperienceandhistoricaldatatoquantifytheprobabilityandimpactof risksonprojectobjectives.

RangeofProjectCostEstimatesCollectedDuringtheRiskInterview

Modeling&Simulation.Aprojectsimulationusesa modelthattranslatesthespecifieddetailed uncertaintiesoftheprojectintotheirpotentialimpact t i ti f th j t i t th i t ti l i t onprojectobjectives.Iterativesimulationsare typicallyperformedusingtheMonteCarlotechnique.

1.DataGatheringandRepresentationTechniques

ProbabilityDistributions.Representtheuncertaintyinvaluessuchasdurationsofscheduleactivitiesandcostsof projectcomponents.Usedextensivelyinmodelingandsimulation.

ExamplesofCommonlyUsedProbabilityDistributions

2.QuantitativeRiskAnalysisandModelingTechniques

SensitivityAnalysis.Helpstodeterminewhichriskshavethemostpotentialimpactontheproject. Expectedmonetaryvalueanalysis(EMV).EMVanalysisisastatisticalconceptthatcalculatestheaverageoutcome whenhefutureincludesscenariosthatmayormaynothappen(i.e.analysisunderuncertainty).Acommonuseofthis typeofanalysisisthedecisiontreeanalysis.

($80Mx65%)+($30Mx35%)=$41.5M ($200M120M=$80M ($200M 120M $80M

($90M120M=$30M ($120M50M=$70M ($70Mx65%)+($10Mx35%)=$49M

($60M50M=$10M

DecisionTreeDiagram

 11.5PlanRiskResponses 11 5 Plan Risk Responses

Inputs
1. 2. RiskRegister RiskManagementPlan g

Tool&Techniques
1. 2. 3. 4. StrategiesforNegativeRisks orThreats StrategiesforPositiveRisks orOpportunities ContingentResponse Strategies ExpertJudgment

Outputs
1. 2. 3. 4. RiskRegisterUpdates RiskRelatedContract decisions ProjectManagementPlan Updates ProjectDocumentUpdates

StrategiesforNegativeRisksandThreats Avoid e.g.clarifyingrequirements Transfer e.g.insurance,warranties Mitigate e.g.designingredundancy Accept e.g.establishacontingency reserve StrategiesforPositiveRisksorOpportunities Exploit e.g.assignanorganizations mosttalentedresourcestotheproject Share e.g.formrisksharing partnerships,teams,orjointventures partnerships teams or joint ventures Enhance e.g.addmoreresourcesto anactivitytofinishearly Accept acceptit,butnotactively pursuingit

ProjectManagementPlan Project Management Plan Schedulemanagementplan Costmanagementplan Qualitymanagementplan Procurementmanagementplan Humanresourcemanagementplan Workbreakdownstructure Schedulebaseline Costperformancebaseline ProjectDocumentUpdates Assumptionslogupdates Technicaldocumentationupdates Technical documentation updates

 12.1PlanProcurements 12 1 Plan Procurements

Inputs
ScopeBaseline Requirements q Documentation 3. TeamingAgreements 4. RiskRegister 5. RiskRelatedContract Decisions 6. ActivityResource Requirements 7. ProjectSchedule 8. ActivityCostEstimates 9. CostPerformanceBaseline 10. EnterpriseEnvironmental 10 Enterprise Environmental Factors 11. OrganizationalProcess Assets ScopeBaseline ScopeStatement WBS WBSdictionary 1. 2.

Tool&Techniques
1. MakeorBuyAnalysis 2. ExpertJudgment p g 3. ContractTypes (Seenextslidefordetailson contracttypes)

Outputs
1. 2. 3. 4. 5. 6. ProcurementManagement Plan ProcurementStatementsof Work MakeorBuyDecisions ProcurementDocuments SourceSelectionCriteria ChangeRequests

SourceSelectionCriteria S S l ti C it i Understandingofneed ProcurementDocuments Overallorlifecyclecost RequestforInformation(RFI) Technicalcapabilityrisk Requestforproposal(RFP) Managementapproach Requestforquotation(RFQ) Technicalapproach Technical approach Tendernotice Warranty Invitationfornegotiation Financialcapacity Invitationforsellersinitialresponse Productioncapacityandinterest Businesssizeandtype Pastperformanceofsellers References Intellectualpropertyrights Propertyrights

3.ContractTypes

FixedPriceContracts.Involvessettingafixedtotalpriceforadefinedproductorservicetobeprovided. FirmFixedPriceContracts(FFP).Themostcommon.Anycostincreaseduetoadverseperformanceisresponsibility oftheseller. f th ll FixedPriceIncentiveFeeContracts(FPIF).Givesthebuyerandsellersomeflexibilityinthatitallowsfordeviation fromperformance,withfinancialincentivestiedtoachievingagreedtometrics. FixedPricewithEconomicPriceAdjustmentContracts(FPEPA).Itisusedwheneverthesellersperformanceperiod spansaconsiderableperiodofyears,asisdesiredwithmanylongtermrelationships.Ithasspecialprevisionallowingfor predefinedfinaladjustmentstothecontractpriceduetochangedconditions.TheEPAclausemustrelatetosome d fi d fi l dj h i d h d di i Th EPA l l reliablefinancialindex.Itisintendedtoprotectbothbuyerandsellerfromexternalconditionsbeyondtheircontrol. CostreimbursableContracts.Involvespaymentstothesellerforalllegitimateactualcostsincurredforcompletedwork,plusa feerepresentingsellerprofit.Itgivestheprojectflexibilitytoredirectasellerwheneverthescopeofworkcannotbeprecisely definedatthestartandneedstobealtered,orwhenhighrisksmayexistintheeffort. CostPlusFixedFeeContacts(CPFF).Thesellerisreimbursedforallallowablecostsforperformingthecontractwork, l d ( ) h ll b df ll ll bl f f h k andreceivesafixedfeepaymentcalculatedasapercentageoftheinitialestimatedprojectcosts. CostPlusIncentiveFeeContracts(CPIF).Thesellerisreimbursedforallallowablecostsforperformingthecontract workandreceivesapredeterminedincentivefeebaseduponachievingcertainperformanceobjectivesassetforthinthe contract.Iffinalcostsarelessorgreater,thenbothsharecostsformthedepartures. CostPlusAwardFeeContracts(CPAF).Thesellerisreimbursedforalllegitimatecosts,butthemajorityofthefeeis onlyearnedbasedonthesatisfactionofcertainbroadsubjectiveperformancecriteriadefinedandincorporatedintothe contract.Thedeterminationofthefeeisbasedonthesubjectivedeterminationofsellerperformancebythebuyer. TimeandMaterialContracts(T&M).T&Mcontractsareahybridtypeofcontractualarrangementsthatcontainaspectsofboth costreimbursableandfixedpricecontracts.Usedforstaffaugmentation,acquisitionofexperts,andanyoutsidesupportwhen aprecisestatementofworkcannotbequicklyprescribed.Theycanbeleftopenendedandmaybesubjecttoacostincrease forthebuyer.Theycanincreaseincontractvalueasiftheywerecostreimbursablecontracts.Theycanresemblefixedunit pricearrangements.Unitlaborormaterialratescanbepresetbythebuyerandseller,includingsellerprofit,whenbothparties agreeonthevaluesforspecificresourcecategories.

 4.3Direct&ManageProjectExecution 4 3 Direct & Manage Project Execution

Inputs
1. 2. 3.

Tool&Techniques
ExpertJudgment ProjectManagement j g InformationSystems

Outputs
1. 2. 3. 4. 5. Deliverables WorkPerformance Information ChangeRequests ProjectManagementPlan Updates ProjectDocumentUpdates

ProjectManagementPlan 1. ApprovedChangeRequests pp g q 2. EnterpriseEnvironmental Factors 4. OrganizationalProcess Assets EnterpriseEnvironmentalFactors Organizational,companyor customerculture&structure Infrastructure Personneladministration Stakeholderrisktolerances Projectmanagementinfo.sys. Project management info sys OrganizationalProcessAssets Standardizedguidelinesandwork instructions Communicationsrequirements Issueanddefectmanagement g procedures Processmeasurementdatabase Projectfilesfrompriorprojects

WorkPerformanceInformation Deliverablestatus Scheduleprogress Costsincurred Changerequests Correctiveaction C i i Preventiveaction Defectrepair Updates

 8.2PerformQualityAssurance 8 2 Perform Quality Assurance

Inputs
1. 2. 3. 4. ProjectManagementPlan Q QualityMetrics y WorkPerformance Information QualityControl Measurements

Tool&Techniques
1. PlanQuality&Perform Q QualityControlTools& y Techniques QualityAudits ProcessAnalysis

Outputs
1. 2. 3. OrganizationalProcess AssetsUpdates p ChangeRequests ProjectManagementPlan Updates ProjectDocumentsUpdates

2. 3.

ProjectManagementPlan P j tM t Pl Qualitymanagementplan Processimprovementplan WorkPerformanceInformation Technicalperformance measures Projectdeliverablesstatus Scheduleprogress Costsincurred

4. QualityAudits:Objectives OrganizationalProcessAssetsUpdates Organizational Process Assets Updates IDallthegood/bestpractices ID all the good/best practices Thequalitystandards IDallthegaps/shortcomings ProjectManagementPlanUpdates Sharethegoodpractices Qualitymanagementplan Offerassistanceinapositive Schedulemanagementplan manner Costmanagementplan Highlightcontributionsofeach ProjectDocumentUpdates audit Qualityauditsreports ProcessAnalysis Trainingplans Itfollowsthestepsoutlinedinthe Processdocumentation processimprovementplanto identifyneededimprovements. IncludesRootCauseAnalysis I l d R C A l i

 9.2AcquireProjectTeam 9 2 Acquire Project Team

Inputs
1. 2.

Tool&Techniques
Preassignment Negotiation g Acquisition VirtualTeams

Outputs
1. 2. 3. ProjectStaffAssignments ResourceCalendars ProjectManagementPlan Updates

ProjectManagementPlan 1. EnterpriseEnvironmental p 2. Factors 3. 3. OrganizationalProcess 4. Assets ProjectManagementPlan Rolesandresponsibilities Projectorganizationcharts Staffingmanagementplan EnterpriseEnvironmentalFactors ExistinginfoforHumanResources Personneladministrationpolicies Organizationalstructure O i ti l t t Locationormultiplelocations

 9.3DevelopProjectTeam 9 3 Develop Project Team

Inputs
1. 2. 3. ProjectStaffAssignments ProjectManagementPlan j g ResourceCalendars

Tool&Techniques
1. 2. 3. 4. 5. 6. InterpersonalSkills Training g TeamBuildingActivities GroundRules Colocation Recognition&Rewards

Outputs
1. 2. TeamPerformance Assessments EnterpriseEnvironmental FactorsUpdates

TeamBuildingActivities T B ildi A ti iti Forming Storming Norming Performing Adjourning

TeamPerformanceAssessments Improvementsinskills Improvementsin Improvements in competencies Reducedstaffturnoverrate Increasedteamcohesiveness EnterpriseEnvironmentalFactorsUpdates Personneladministration Personnel administration

 9.4ManageProjectTeam 9 4 Manage Project Team

Inputs Tool&Techniques
1. 2. Observation&Conversation ProjectPerformance Appraisals ConflictManagement IssueLog InterpersonalSkills

Outputs
1.

EnterpriseEnvironmental FactorsUpdates 1. ProjectStaffAssignments 2. OrganizationalProcess 2. ProjectManagementPlan j g AssetsUpdates Assets Updates 3. TeamPerformance 3. 3. ChangeRequests Assessments 4. 4. ProjectManagementPlan 4. PerformanceReports 5. Updates 5. OrganizationalProcess ConflictManagement:Characteristics&conflictmanagementprocess Assets Conflictisnatural&forcesasearchforalternatives Conflict is natural & forces a search for alternatives ProjectManagementPlan Conflictisateamissue EnterpriseEnvironmentalFactors Roles&responsibilities Opennessresolvesconflict Updates Projectorganization Resolutionshouldfocusonissues,notpersonalities Inputtoorganizational Staffingmanagementplan Resolutionshouldfocusonthepresent,notthepast performanceappraisals OrganizationalProcessAssets Techniquesforresolvingconflict: p Personnelskillupdates Certificatesofappreciation C ifi f i i Withdrawing/Avoiding OrganizationalProcessAssets Newsletters Smoothing/Accommodating Updates Websites Compromising Historicalinfo&lessons Bonusstructures Forcing learned Corporateapparel Collaborating Templates Otherorganizational Other organizational Confronting/ProblemSolving C f ti /P bl S l i Organizationalstandard perquisites InterpersonalSkills processes Leadership ProjectManagementPlanUpdates Influencing Staffingmanagement Effectivedecisionmaking plan

 10.3DistributeInformation 10 3 Distribute Information

Inputs
1. 2. 3. ProjectManagementPlan PerformanceReports p OrganizationalProcess Assets

Tool&Techniques
1. 2. CommunicationMethods InformationDistribution Tools

Outputs
1. OrganizationalProcess AssetsUpdates p OrganizationalProcessAssetsUpdates Stakeholdernotifications Projectreports Projectpresentations Projectrecords Project records Feedbackfromstakeholders Lessonslearneddocumentation

CommunicationsMethods Individual&groupmeetings Video&audioconferences Computerchats Computer chats Otherremotecommunication methods InformationDistributionTools Hardcopydocumentdistribution, manualfilingsystems,press releases,andsharedaccess electronicdatabases Electroniccommunicationand conferencingtools,suchasemail, fax,voicemail,telephone,etc. Electronictoolsforproject El t i t l f j t management,suchaswebinterfaces toschedulingandproject managementsoftware,etc.

 10.4ManageStakeholderExpectations 10 4 Manage Stakeholder Expectations

Inputs
1. 2. 3. 4. 5. 6. StakeholderRegister StakeholderManagement g Strategy ProjectManagementPlan IssueLog ChangeLog OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. CommunicationMethods InterpersonalSkills p ManagementSkills

Outputs
1. 2. 3. 4. OrganizationalProcess AssetsUpdates p ChangeRequests ProjectManagementPlan Updates ProjectDocumentUpdates

OrganizationalProcessAssets Organizationalcommunication requirements Issuemanagementprocedures Issue management procedures Changecontrolprocedures Historicalinformation

InterpersonalSkills Buildingtrust Resolvingconflict Activelistening i li i Overcomingresistancetochange ManagementSkills Presentationskills Negotiation Writingskills Writing skills Publicspeaking

OrganizationalProcessAssetsUpdates Organizational Process Assets Updates Causesorissues Reasoningbehindcorrective actionschosen Lessonslearned ProjectDocumentsUpdates Stakeholdermanagement strategy Stakeholderregister Issuelog

 12.2ConductProcurements 12 2 Conduct Procurements

Inputs
ProjectManagementPlan ProcurementDocuments SourceSelectionCriteria QualifiedSellerList SellerProposals ProjectDocuments MakeorBuyDecisions TeamingAgreements OrganizationalProcess Assets ProjectDocuments Riskregister Riskrelatedcontract Ri k l t d t t decisions OrganizationalProcessAssets Listingofprospective& previouslyqualifiedsellers Informationonrelevantpast Information on relevant past experiencewithsellers,both goodandbad 1. 2. 3. 4. 5. 6. 7. 8. 9.

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. BidderConferences ProposalEvaluation p Techniques IndependentEstimates ExpertJudgment Advertising InternetSearch ProcurementNegotiations

Outputs
1. 2. 3. 4. 5. 6. SelectedSellers ProcurementContract Award ResourceCalendar ChangeRequests ProjectManagementPlan Updates ProjectDocumentUpdates

ProjectManagementPlanUpdates Costbaseline Scopebaseline Schedulebaseline Procurementmanagement plan ProjectDocumentUpdates Requirements documentation Requirementstraceability R i t t bilit documentation Riskregister

 4.4Monitor&ControlProjectWork 4 4 Monitor & Control Project Work

Inputs
1. 2. 3. 4. ProjectManagementPlan PerformanceReports p EnterpriseEnvironmental Factors OrganizationalProcess Assets

Tool&Techniques
1. ExpertJudgment

Outputs
1. 2. 3. ChangeRequests ProjectManagementPlan j g Updates ProjectDocumentUpdates

PerformanceReports Performance Reports Currentstatus Significantaccomplishmentsforthe period Scheduledactivities Forecasts Issues

ChangeRequests Change Requests Correctiveaction Preventiveaction Defectrepair ProjectManagementPlanUpdates Schedulemanagementplan Costmanagementplan Qualitymanagementplan Scopebaseline Schedulebaseline Costperformancebaseline ProjectDocumentUpdates Project Document Updates Forecasts Performancereports Issuelog

 4.5PerformIntegratedChangeControl 4 5 Perform Integrated Change Control

Inputs
1. 2.

Tool&Techniques

Outputs

ProjectManagementPlan 1. ExpertJudgment 1. ChangeRequestStatus WorkPerformance 2. ChangeControlMeetings g g Updates p Information 2. ProjectManagementPlan 3. ChangeRequests Updates 4. EnterpriseEnvironmental 3. ProjectDocumentUpdates Factors 5. OrganizationalProcess ChangeRequests Change Requests Assets Anysubsidiarymanagementplans EnterpriseEnvironmentalFactors Baselinesthataresubjecttothe Projectmanagementinformationsystems formalchangecontrolprocess OrganizationalProcessAssets Changecontrolprocedures Proceduresforapprovingandissuing Procedures for approving and issuing changeauthorizations Processmeasurementdatabaseusedto collectandmakeavailablemeasurement dataonprocessesandproducts Projectfiles ConfigurationManagementActivities Configuration Management Activities Configurationmanagementknowledgebase ConfigurationIdentification Configurationstatusaccounting Configurationverificationandaudit

 5.4VerifyScope 5 4 Verify Scope

Inputs
1. 2. 3. 4. ProjectManagementPlan Requirements q Documentation RequirementsTraceability Matrix ValidatedDeliverables

Tool&Techniques
1. Inspection

Outputs
1. 2. 3. AcceptedDeliverables ChangeRequests g q ProjectDocumentUpdates

ProjectManagementPlan Project Management Plan Projectscopestatement WBS WBSdictionary

 5.5ControlScope 5 5 Control Scope

Inputs
1. 2. ProjectManagementPlan WorkPerformance Information

Tool&Techniques
1. VarianceAnalysis

Outputs
WorkPerformance Measurements 2. OrganizationalProcess AssetsUpdates 3. ChangeRequests 4. ProjectManagementPlan Updates 5. ProjectDocumentUpdates WorkPerformanceMeasurements Plannedvs.actualtechnical performance OrganizationalProcessAssetsUpdates Causesofvariances Causes of variances Correctiveactionchosenandthe reasons Othertypesoflessonslearned ProjectManagementPlanUpdates Scopebaselineupdates p p Otherbaselineupdates ProjectDocumentUpdates Requirementsdocumentation Requirementstraceability 1.

ProjectManagementPlan Scopebaseline Scopemanagementplan Changemanagementplan Change management plan Configurationmanagement plan Requirementsmanagement plan OrganizationalProcessAssets Existingformalandinformal scopecontrolrelated, procedure,andguidelines Monitoringandreporting methodstobeused

 6.6ControlSchedule 6 6 Control Schedule

Inputs
1. 2. 3. 4. ScheduleManagementPlan ProjectSchedule j WorkPerformance Information OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8. PerformanceReviews VarianceAnalysis y ProjectManagement Software ResourceLeveling WhatIfScenarioAnalysis AdjustingLeads&Lags ScheduleCompression SchedulingTool

Outputs
WorkInformation Measurements 2. OrganizationalProcess AssetsUpdates 3. ChangeRequests 4. ProjectManagementPlan Updates 5. ProjectDocumentUpdates WorkPerformanceMeasurements CalculatedSVandSPIvalues OrganizationalProcessAssetsUpdates Causesofvariances Correctiveactionchosen Corrective action chosen Othertypesoflessonslearned ProjectManagementPlanUpdates Scopebaseline Schedulemanagementplan Costbaseline ProjectDocumentUpdates Scheduledata Projectschedule 1.

OrganizationalProcessAssets Organizational Process Assets Existingformalandinformal schedulecontrolrelated policies,procedures,and guidelines Schedulecontroltools Monitoringandreporting methodstobeused

 7.3ControlCosts 7 3 Control Costs

Inputs
1. 2. 3. 4. ProjectManagementPlan ProjectFunding j g Requirements WorkPerformance Information OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. EarnedValueManagement Forecasting g TocompletePerformance Index(TCPI) 4. PerformanceReviews 5. VarianceAnalysis 6. ProjectManagement Software (seenextfourslidesfordetails)

Outputs
1. 2. 3. 4. 5. 6. WorkPerformance Measurements BudgetForecasts OrganizationalProcess AssetsUpdates ChangeRequests ProjectManagementPlan Updates ProjectDocumentUpdates

ProjectManagementPlan: CostPerformanceBaseline CostManagementPlan WorkPerformanceInformation: Statusofdeliverables Statusofcostsauthorized& S f h i d& incurred Estimatesforcompleting projectwork OrganizationalProcessAssets Formal&informalcostcontrol Formal & informal cost control relatedpolicies,procedures& guidelines Costcontroltool Monitor.&reportingmethods

WorkPerformanceMeasurements: CalculatedCV,SV,CPI&SPIvalues forWBScomponents,workpackages &controlaccountsaredocumented &communicatedtostakeholders CostManagementPlan OrganizationalProcessAssets: Causesofvariances Correctiveaction Corrective action Lessonslearnedfromprojectcontrol ProjectManagementPlanUpdates: CostPerformanceBaseline CostManagementPlan

1.EarnedValueManagement

PlannedValue(PV):Authorizedbudgetassignedtotheworktobeaccomplishedforanactivityorworkbreakdown structurecomponent.TotalPVisreferredtoasthePerformanceMeasurementBaseline(PMB)&itisalsoknownas BAC. EarnedValue(EV):Valueofworkperformedexpressedintermsoftheapprovedbudgetassignedtothatworkforan activityorworkbreakdownstructurecomponent.Itistheauthorizedworkcompletedplustheauthorizedbudgetfor suchcompletedwork.Itisoftenusedtodescribethepercentagecompletionoftheproject. ActualCost(AC):Totalcostactuallyincurredandrecordedinaccomplishingworkperformedforanactivityorwork Actual Cost (AC): Total cost actually incurred and recorded in accomplishing work performed for an activity or work breakdownstructurecomponent.Itwillhavenotupperlimit,whateverisspenttoachievetheEVwillbemeasured. ScheduleVariance(SV):Itisthemeasureofscheduleperformanceonaproject.Whentheprojectiscompleteditwill bezero.Equation:SV=EV PV. CostVariance(CV):Itisthemeasureofcostperformanceonaproject.AttheendoftheprojecttheCVwillbethe differencebetweentheBAC&theactualamountspent.CViscriticalbecauseindicatestherelationshipofphysical diff b t th BAC & th t l t t CV i iti l b i di t th l ti hi f h i l performancetothecostsspent.AnynegativeCVisoftennonrecoverabletotheproject.Equation:CV=EV AC. SchedulePerformanceIndex(SPI): Itisameasureofprogressachievedcomparedtoprogressplannedonaproject. Equation:SPI=EV/PV. CostPerformanceIndex(CPI):Itisameasureofthevalueofworkcompletedcomparedtotheactualcostorprogress madeontheproject.ItisconsideredthemostcriticalEVMmetric&measuresthecostefficiencyforthework completed.Equation:CPI=EV/AC.

2.Forecasting

EstimateAtCompletion(EAC):Involvesmakingestimatesorpredictionsofconditions&eventsintheprojectsfuture basedoninformation&knowledgeavailableatthetimeoftheforecast.EACsaretypicallybasedontheactualcosts incurredforworkcompleted,plusanestimatetocomplete(ETC)theremainingwork.ThemostcommonEAC forecastingapproachisamanual,bottomupsummationbyPM&PMteam.Equation:EAC=AC+bottomupETC. (newestimatesareflawed) ETC=EACAC EACforecastforETCworkperformedatthebudgetedrate:ThisEACmethodacceptstheactualprojectperformance EAC forecast for ETC work performed at the budgeted rate: This EAC method accepts the actual project performance todateasrepresentedbytheactualcosts,andpredictsthatallfutureETCworkwillbeaccomplishedatthebudgeted rate.Ifactualperformanceisunfavorable,theassumptionthatitwillimproveshouldbeacceptedonlywhen supportedbyprojectriskanalysis.Equation:EAC=AC+BACEV.(orthereisatypicalvariance) EACforecastforETCworkperformedatthepresentCPI:Thismethodassumeswhattheprojecthasexperiencedto EAC f t f ETC k f d t th t CPI Thi th d h t th j th i dt datecanbeexpectedtocontinueinthefuture.Equation:EAC=BAC/cumulativeCPI. whenthereistypicalvariance:Equation: EA=AC+((BAC EV)/CPI) EACforecastforETCworkconsideringbothSPIandCPIFactors:TheETCworkwillbeperformedatanefficiencyrate thatconsidersboththecostandscheduleperformanceindices.VariationofthismethodweightheCPI&SPIat differentvalues(e.g.80/20).Equation:EAC=AC+[(BAC EV)/(cumulativeCPIxcumulativeSPI)]. (whencostperformanceisnegativeandscheduleisfirm) EstimateToComplete(ETC)whenthereistypicalvariance:Equation: ETC=BAC cumulativeEV/cumulativeCPI EstimateToComplete(ETC)whenthereisatypicalvariance:Equation: ETC=BAC cumulativeEV VarianceatCompletion(VAC):Estimatedcostoverrunattheendofproject. Equation:VAC=BAC EAC Status:Equation:(CPI+SPI)/2

3.ToCompletePerformanceIndex(TCPI)

TCPIisthecalculatedprojectionofcostperformancethatmustbeachievedontheremainingworktomeeta specifiedmanagementgoal,suchastheBACortheEAC.IfBACisnolongerviable,thePMdevelopsaforecasted EAC.Onceapproved,theEACeffectivelysupersedestheBACasthecostperformancegoal. EquationfortheTCPIbasedontheBAC:TCPI=(BAC EV)/(BAC AC). IfBACisnolongerattainable,thePMwillprepareanewEACforthework,andonceapproved,theprojectwillwork tothenewEACvalue.EquationfortheTCPIbasedontheEAC:TCPI=(BAC EV)/(EAC AC).

4.PerformanceReviews

Performancereviewscomparecostperformanceovertime,scheduleactivitiesorworkpackagesoverrunningthe underrunningthebudget,andestimatedfundsneededtocompleteworkinprogress. IfEVMisbeingused,thefollowinginfoisdetermined: VarianceAnalysis:Itcomparesactualprojectperformancetoplannedorexpectedperformance. TrendAnalysis:Itexaminesprojectperformanceovertimetodetermineifperformanceisimprovingor deteriorating. Earned Value Performance: It compares the baseline plan to actual schedule and cost performance. EarnedValuePerformance:Itcomparesthebaselineplantoactualscheduleandcostperformance.

5.VarianceAnalysis

Costperformancemeasurements(CV,CPI)areusedtoassessthemagnitudeofvariationtotheoriginalcostbaseline. Cost performance measurements (CV CPI) are used to assess the magnitude of variation to the original cost baseline Thepercentagerangeofacceptablevarianceswilltendtodecreaseasmoreworkisaccomplished.

6.ProjectManagementSoftware 6. Project Management Software

ProjectmanagementsoftwareisoftenusedtomonitorthethreeEVMdimensions(PV,EV&AC),todisplaygraphical trends,andtoforecastarangeofpossiblefinalprojectresults.

 8.3PerformQualityControl 8 3 Perform Quality Control

Inputs
1. 2. 3. 4. 5. 6. 7. ProjectManagementPlan Q QualityMetrics y QualityChecklists WorkPerformance Measurements ApprovedChangeRequests Deliverables OrganizationalProcess Assets

Tool&Techniques
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Cause&EffectDiagrams ControlCharts Flowcharting Histogram ParetoChart RunChart ScatterDiagram StatisticalSampling Inspection ApprovedChangeRequests Review (seenextthreeslidesfordetails)

Outputs
1. 2. 3. 4. 5. 6. 7. QualityControl Measurements ValidatedChanges ValidatedDeliverables OrganizationalProcess AssetsUpdates ChangeRequests ProjectManagementPlan Updates ProjectDocumentUpdates

WorkPerformanceMethods Plannedvs.actualtechnical performance Plannedvs.actualschedule performance Plannedvs.actualcost performance OrganizationalProcessAssets Qualitystandardsandpolices Quality standards and polices Standardworkguidelines Issueanddefectreporting proceduresandcommunication polices

OrganizationalProcessAssetsUpdates Completedchecklists Completed checklists Lessonslearneddocumentation ProjectManagementPlanUpdates Qualitymanagementplan Processimprovementplan j p ProjectDocumentUpdates Qualitystandard

1.CauseandEffectDiagrams

AlsocalledIshikawaorfishbonediagrams,theyillustratehowvariousfactorsmightbelinkedtopotentialproblemsor effects.

4.Histogram 4 Hi t

Ahistogramisaverticalbarchartshowinghowoftenaparticularvariablestateoccurred.

5.ParetoChart

Itisaspecifictypeofhistogram,orderedbyfrequencyofoccurrence.

6.RunChart

Similartoacontrolchartwithoutdisplayedlimits,arunchartshowsthehistoryandpatternofvariation.Runcharts showtrendsinaprocessovertime,variationovertime,ordeclinesorimprovementsinaprocessovertime.Trend analysisisperformedusingrunchartsandinvolvesmathematicaltechniquestoforecastfutureoutcomesbasedon historicalresult.Trendanalysisisoftenusedtomonitor: TechnicalPerformance CostandSchedulePerformance

7.ScatterDiagram

Itshowstherelationshipbetweentwovariables.Dependentvariablesversusindependentvariablesareplotted.

9.Inspection

Itistheexaminationofaworkproducttodeterminewhetheritconformstodocumentedstandard.Inspectionsmay becalledreviews,peerreviews,audits,orwalkthroughs. b ll d i i di lk h h

 10.3ReportPerformance 10 3 Report Performance

Inputs
1. 2.

Tool&Techniques

Outputs
1. 2. 3. PerformanceReports OrganizationalProcess g AssetsUpdates ChangeRequests

ProjectManagementPlan 1. VarianceAnalysis WorkPerformance 2. ForecastingMethods g Information 3. CommunicationMethods 3. WorkPerformance 4. ReportingSystems Measurements (Seenextslidefordetails) 4. BudgetForecasts 5. OrganizationalProcess Assets WorkPerformanceInformation Deliverablesstatus Scheduleprogress Costsincurred WorkPerformanceMeasurements Work Performance Measurements Plannedversusactualscheduleperformance Plannedversusactualperformance Plannedversusactualtechnicalperformance OrganizationalProcessAssets Reporttemplates p p Policiesandprocedures(measures& indicators) Organizationallydefinedvariancelimits

1.VarianceAnalysis

VarianceAnalysisisanafterthefactlookatwhatcausedadifferencebetweenthebaselineandtheactual performance.Commonstepsare: Verifythequalityoftheinformationcollected Determinevariances Determinetheimpactofthevariances

Forecastingistheprocessofpredictingfutureprojectperformancebasedontheactualperformancetodate.They F ti i th f di ti f t j t f b d th t l f t d t Th maybeclassifiedindifferentcategories: Timeseriesmethods.Usehistoricaldataasthebasisforestimatingfutureoutcomes.e.g.EV Causal/econometricmethods.Usetheassumptionthatitispossibletoidentifytheunderlying factorsthatmightinfluencethevariablethatisbeingforecasted.e.g.RegressionAnalysis,ARMA (Autoregressivemovingaverage),andeconometrics. Judgmentalmethods.Incorporateintuitivejudgments,opinions,andprobabilityestimates.e.g. Compositeforecasts,surveys,Delphimethod,scenariobuilding,technologyforecasting. Othermethods.Mayincludesimulation,probabilisticforecasting,andensembleforecasting.

2.ForecastingMethods

3.Communication Methods

Statusreviewmeetingscanbeusedtoexchangeandanalyzeinformationabouttheprojectprogressand performance.ThePMgenerallyusesapushcommunicationtechnique.

1.PerformanceReports

Organizeandsummarizetheinformationgathered,andpresenttheresultsofanyanalysisascomparedtothe performancemeasurementbaseline.Commonformatsinclude:barcharts,Scurves,histograms,andtables.

TabularPerformanceReportSample

3.ChangeRequests

ChangesareprocessedthroughthePerformIntegratedChangeControlprocessasfollows: Recommendedcorrectiveactionsincludechangesthatbringtheexpectedfutureperformanceinlinew/thePMP Recommendedpreventiveactionscanreducetheprobabilityofincurringfuturenegativeprojectperformance

 11.6Monitor&ControlRisks 11 6 Monitor & Control Risks

Inputs
1. 2. 3.

Tool&Techniques
RiskReassessment RiskAudits Variance&TrendAnalysis TechnicalPerformance Measurement ReserveAnalysis StatusMeetings

Outputs
RiskRegisterUpdates OrganizationalProcess g AssetsUpdates 3. ChangeRequests 4. RecommendedPrevention Actions 5. ProjectManagementPlan Updates 6. ProjectDocumentUpdates RiskRegisterUpdates Outcomesofriskreassessments,risk audits,andperiodicriskreviews. Actualoutcomesoftheproject srisks Actual outcomes of the projects risks andoftheriskresponses. OrganizationalProcessAssetsUpdates Templatesfortheriskmanagement plan Riskbreakdownstructure Lessonslearned ChangeRequests Recommendedcorrectiveactions Recommendedpreventiveactions 1. 2.

RiskRegister 1. ProjectManagementPlan j g 2. WorkPerformance 3. Information 4. 4. PerformanceReports 5. RiskRegister 6. IDrisksandriskowners Agreeduponriskresponses Specificimplementationactions Symptomsandwarningsignsofrisk Residualandsecondaryrisks Awatchlist orlowpriorityrisks Timeandcostcontingencyreserves Ti d t ti WorkPerformanceInformation Deliverablestatus Scheduleprogress Costsincurred

 12.3AdministerProcurements 12 3 Administer Procurements

Inputs
1. 2. 3. 4. 5. 6.

Tool&Techniques
ContractChangeControl System y ProcurementPerformance Reviews Inspection&Audits PerformanceReporting PaymentSystems ClaimsAdministration RecordsManagement System

Outputs
1. 2. 3. 4. Procurement Documentation OrganizationalProcess AssetsUpdates ChangeRequests ProjectManagementPlan Updates

ProcurementDocuments 1. ProjectManagementPlan j g Contract 2. PerformanceReport ApprovedChangeRequests 3. WorkPerformance 4. Information 5. ProcurementDocuments P tD t 6. Procurementcontractawards 7. Statementofwork PerformanceReports Sellerdevelopedtechnical documentation Sellerperformancereports ApprovedChangeRequests Modificationstothetermsand conditionsofthecontract WorkPerformanceInformation Whichqualitystandardsarebeing satisfied Whatcostshavebeenincurred Whichsellerinvoiceshavebeenpaid

OrganizationalProcessAssetsUpdates Correspondence Paymentschedulesandrequests Sellerperformanceevaluation documentation ProjectManagementUpdates Procurementmanagementplan Baselineschedule

 4.6CloseProjectorPhase 4 6 Close Project or Phase

Inputs
1. 2. 3. ProjectManagementPlan AcceptedDeliverables p OrganizationalProcess Assets

Tool&Techniques
1. ExpertJudgment

Outputs
1. 2. FinalProduct,Service,or ResultTransition OrganizationalProcess AssetsUpdates

OrganizationalProcessAssets Projectorphaseclosureguidelines orrequirements Historicalinformationandlessons learnedknowledgebase

OrganizationalProcessAssetsUpdates Projectfiles Projectorphaseclosure documents Historicalinformation

 12.4CloseProcurements 12 4 Close Procurements

Inputs
1. 2. ProjectManagementPlan Procurement Documentation

Tool&Techniques
1. 2. 3. ProcurementAudits NegotiatedSettlements g RecordsManagement System

Outputs
1. 2. ClosedProcurements OrganizationalProcess g AssetsUpdates

NegotiatedSettlements Negotiation AlternativeDisputeResolution(ADR) Mediation Arbitration Litigation

OrganizationalProcessAssets Procurementfile Deliverableacceptance Lessonslearned documentation