Sultanate of Oman

Ministry of Manpower
Colleges of Technology COURSE
MATERIAL

ITDB3111
PROJECT MANAGEMENT

Department of Information Technology

 ITDB3111- Project Management, Third Edition

Contents
About this Course Material 5
How this Course Material is structured. ........................................................................... 5
Course Overview 8
Welcome to ITDB3111-Project Management .................................................................. 8
ITDB3111-Project Management—is this course for you? ............................................... 8
Course Objectives ............................................................................................................. 8
Course Outcomes .............................................................................................................. 9
Timeframe ........................................................................................................................ 9
Study Skills ..................................................................................................................... 10
Need Help? ..................................................................................................................... 11
Assignments ................................................................................................................... 11
Assessments .................................................................................................................... 12
Getting around this Course Material 13
Margin icons ................................................................................................................... 13
Chapter 1-INTRODUCTION TO PROJECT MANAGEMENT 14
1.1. Introduction .......................................................................................................... 14
1.2. Basic Concepts ...................................................................................................... 15
1.3. Stakeholders ......................................................................................................... 17
1.4. The Project Management Process ...................................................................... 19
1.5. Chapter Summary ............................................................................................... 23
1.6. Assignment............................................................................................................ 24
1.7. Case Study ............................................................................................................ 24
1.8. Reference Used ..................................................................................................... 25
Chapter 2-INTRODUCTION TO MICROSOFT PROJECT 27
2.1. Introduction .......................................................................................................... 27
2.2. Mapping The Project Management Software Usage To The Project
Management Process Group .......................................................................... 28
2.3. Importance of using Project Management Software ........................................ 29
2.4. Getting Started With Microsoft Project ............................................................ 31
2.5. Setting-Up The Microsoft Project Environment ............................................... 31
2.6. Chapter Summary ............................................................................................... 31
 ITDB3111- Project Management, Third Edition

2.7. Hands-On .............................................................................................................. 31

2.8. References Used ................................................................................................... 32
Chapter 3-PROJECT INITIATION 33
3.1. Introduction.......................................................................................................... 33
3.2. Project Initiation .................................................................................................. 34
3.3. The Develop Project Charter Process ................................................................ 34
3.4. The Organizational and Organizational Strategy ............................................ 40
3.5. Defining Roles And Responsibilities................................................................... 49
3.6. Chapter Summary ............................................................................................... 54
3.7. Assignment............................................................................................................ 54
3.8. Case Study ............................................................................................................ 54
3.9. References Used ................................................................................................... 55
Chapter 4-PROJECT PLANNING ...................................................................................... 57
4.1. Introduction ......................................................................................................... 57
4.2. Establish Project Deliverables ........................................................................... 58
4.3. Creating The Wbs ............................................................................................... 59
4.4. Developing A Budget Plan.................................................................................. 61
4.5. Developing The Project Schedule ...................................................................... 64
4.6. Developing The Human Resource Plan ............................................................ 73
4.7. Developing The Communications Plan ............................................................. 78
4.8. Developing The Procurement Plan .................................................................... 83
4.9. Developing The Quality Management Plan ...................................................... 88
4.10. Developing A Change Management Plan ......................................................... 93
4.11. Developing The Risk Management Plan ........................................................... 95
4.12. Chapter Summary ............................................................................................ 101
4.13. Assignment......................................................................................................... 101
4.14. Case Study ......................................................................................................... 101
4.15. Hands-On ........................................................................................................... 104
4.16. References Used ................................................................................................ 104
Chapter 5-PROJECT EXECUTION ................................................................................. 105
5.1. INTRODUCTION............................................................................................. 105
5.2. Obtaining and Managing Project Execution .................................................. 106
 ITDB3111- Project Management, Third Edition

5.3. Steps in Project Execution............................................................................... 108

5.4. Directing and Managing Project Execution ................................................... 110
5.5. Implementing The Quality Management Plan ............................................... 115
5.6. Performing Quantitative Risk Assessment .................................................... 116
5.7. Conducting Procurement ................................................................................. 118
5.8. Managing The Project Team ........................................................................... 120
5.9. Chapter Summary ........................................................................................... 123
5.10. Assignment ...................................................................................................... 124
5.11. Case Study ........................................................................................................ 124
5.12. Hands-On ........................................................................................................ 126
5.13. References Used ............................................................................................. 126
Chapter 6-PROJECT MONITORING AND CONTROLLING 127
6.1. Introduction .................................................................................................... 127
6.2. Monitoring And Controlling Project Work ................................................ 128
6.3. Managing Risks .............................................................................................. 132
6.4. Chapter Summary ......................................................................................... 133
6.5. Assignment...................................................................................................... 133
6.6. Case Study ...................................................................................................... 134
6.7. Hands-On ........................................................................................................ 135
6.8. References Used ............................................................................................. 135
Chapter 7-PROJECT CLOSURE 136
7.1. Introduction .................................................................................................... 136
7.2. Formalizing Project Acceptance ................................................................... 137
7.3. Transfering Ownership Of Deliverables ...................................................... 138
7.4. Obtaining Legal And Administrative Closure ............................................ 139
7.5. Collating Lessons Learned ............................................................................ 142
7.6. Measuring Project Team Performance ........................................................ 144
7.7. Chapter Summary ......................................................................................... 146
7.8. Assignment...................................................................................................... 146
7.9. Case Study ...................................................................................................... 147
7.10. Hands-On ........................................................................................................ 148
7.11. References Used ............................................................................................. 148
 ITDB3111- Project Management, Third Edition

About this Course Material

ITDB3111-Project Management Course Material has been produced
by the Department of Information Technology. All Course Materials
produced by the Department of Information Technology is
structured in the same way, as outlined below.

How this Course Material is structured.

The Course Overview

The course overview gives you a general introduction to the course.
Information contained in the course overview will help you
determine:
 If the course is suitable for you.
 What you will already need to know.
 What you can expect from the course.
 How much time you will need to invest to complete the course.
The overview also provides guidance on:
 Study skills.
 Where to get help.
 Course assignments and assessments.
 Activity icons.
 Chapters.

We strongly recommend that you read the overview carefully

before starting your study.

The Course Content

The course is broken down into chapters. Each chapter comprises:
 An introduction to the chapter content.
 Chapter objectives
 Chapter outcomes.
 New terminology.
 Core content of the chapter with a variety of learning activities.
 A chapter summary.
 Assignments and/or assessments, as applicable.
 Answers to assignments and/or assessment, as applicable

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 ITDB3111- Project Management, Third Edition

Resources
1. A Guide to Project Management Body of Knowledge (PMBOK
Guide) 4th Edition, 2008 Edition by PMI, Project Management
Institute
2. Business plan as a decision making tool for projects, Visitask,
http://www.visitask.com/Business-plan-decison-making-tool.asp
3. Business Plan Guidelines, Merlot,
http://www.merlot.org/merlot/viewMaterial.htm?id=301883
4. Business Project - IT ADVISERS BUSINESS PLAN SAMPLE,
iPlanner, http://www.iplanner.net/business-
financial/bizplan/bizplan.aspx?eq=_Kv8WPlpGI9X5pqTzaYF-Q
5. Examples of a Business Case, Bright Hub PM,
http://www.brighthubpm.com/project-planning/103223-
examples-of-a-business-case/?cid=parsely_rec
6. Feasibility Study Template, Bright Hub PM,
http://images.brighthub.com/media/6C54CD_feasibility-study-
template-from-kibs.doc
7. Guide to the Project Initiation Process Group, Bright Hub
PM,http://www.brighthubpm.com/project-planning/124432-
guide-to-the-project-initiation-process-group/?cid=parsely_rec
8. How to write an effective business plan, ABC Consulting,
http://www.businessconsultingabc.com/Writing_An_Effective_B
usiness_Plan.html
9. http://www.cvr-
it.com/Samples/XProject_Charter_Form_Template.pdf
10. Introduction to Project Management by Team Works taken from
http://www.merlot.org/merlot/viewMaterial.htm?id=90038Date
Modified in MERLOT:September 05, 2011
11. Introduction to Project Management by Larry Cooperman taken
from http://www.merlot.org/merlot/viewMaterial.htm?id=388951
Date Modified in MERLOT: April 15, 2011
12. Microsoft Project 2010 In Dept, 2011 by Quantum PM and Scott
Daley, Que
13. Microsoft Project 2010 Project Management, 2010 by Robert
Happy, PMP, MCT, Sybex
14. Microsoft® Project 2010 Inside Out, 2011 by Teresa S. Stover,
Microsoft Press
15. Oracle Primavera P6 Version 8: Project and Portfolio
Management, 2012 by Daniel L. Williams, PhD and Elaine Britt
Krazer, PMP, Packt Publishing
16. Project Management 101 by Linh Huong et. al. taken from
http://cnx.org/content/col11352/1.1/Last edited by Linh Luong on
Aug 19, 2011 3:48 pm GMT-5.
17. Project Management Book by Michael Harding Roberts HRA
Consulting taken from
http://www.merlot.org/merlot/viewMaterial.htm?id=562817 Date
Modified in MERLOT: June 28, 2011
18. Project Management by Merrie Barron and Andrew R. Barron
taken from http://cnx.org:8888/content/col11120/1.6/ Last edited
by Andrew R. Barron on Apr 5, 2013 10:47 am GMT-5.

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 ITDB3111- Project Management, Third Edition
19. Project Management for Dummies 3rd Edition, 2010 by Stanley
Portny, PMP, Wiley Publishing
20. Project Management Getting It Done by Teresa Hill et. al. taken
from http://cnx.org/content/col11374/1.1/ Last edited by Teresa
Hill on Nov 6, 2011 9:18 pm US/Central.
21. Project Management Made Easy by Sid Kemp taken from
http://www.merlot.org/merlot/viewMaterial.htm?id=562830Date
Modified in MERLOT: June 28, 2011
22. Project Management using Microsoft Project by Microsoft taken
from
http://www.merlot.org/merlot/viewMaterial.htm?id=78286Date
Modified in MERLOT:February 02, 2010
23. Project Manager Street Smarts, 2011 by Linda Kretz Zaval, PMP
and Terri Wagner, PMP, Wiley & Sons.
24. Sample Feasibility Study, Bright Hub PM,
http://images.brighthub.com/media/3D2FF6_feasibility-study-
sample.doc
25. Step by Step Guide to Project Management by PM@UTS taken
from
http://www.merlot.org/merlot/viewMaterial.htm?id=562845Date
Modified in MERLOT: June 28, 2011
26. Successful Project Management Applying Best Practices and
Real-World Techniques with Microsoft® Project, 2011 by
Bonnie Biafore, Microsoft Press
27. What is a Terms of Reference?, Project Management Tips,
http://pmtips.net/terms-reference/

For those interested in learning more on this subject, we provide you

with a list of additional resources at the end of this Course Material;
these may be books, articles or web sites.

Your Comments
After completing ITDB3111-Project Management, we would
appreciate it if you would take a few moments to give us your
feedback on any aspect of this course. Your feedback might include
comments on:
 Course content and structure.
 Course reading materials and resources.
 Course assignments.
 Course assessments.
 Course duration.
 Course support (assigned tutors, technical help, etc.)

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 ITDB3111- Project Management, Third Edition

Your constructive feedback will help us to improve and enhance

this course.

Course Overview
Welcome to ITDB3111-Project Management
This course covers the project management skills, Processes and
Knowledge Areas with a strong emphasis on issues and problems
associated with delivering successful IT Project.
ITDB3111-Project Management—is this course for you?
This course is intended for students who are in Advanced Diploma
and are required to take a Major Elective course.
No prerequisite courses are required in taking this course.
Course Objectives
The objectives of this course are:

 To discuss the principles of Project Management and

Knowledge Areas.

 To analyse organizational structures, project plans, quality,

Objectives team and risk management.

 To manage project execution.

 To evaluate set-targets, deliverables and conflict resolution

documents.

 To use tools and case studies for Project Management.

Course Outcomes
Upon completion of ITDB3111-Project Management you
Outcomes will be able to:

1. Explain the concepts of Project Management and Knowledge

Areas.
2. Analyze Organization Structures.
3. Analyze a plan using methods and tools including Establish
WBS, time & effort estimates, resource allocation and
scheduling.

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 ITDB3111- Project Management, Third Edition

4. Analyze concepts of Quality Management, Assurance and

Control.
5. Analyze risks and manage them.
6. Analyze project execution and manage it.
7. Evaluate set-targets, deliverables and conflict resolution
documents.
8. Analyze team management.
9. Use tool for project management.
10. Use case studies for project management.

Timeframe

The expected duration for this course is _____ hours/week.

Formal study time required is ______ hours/week.

Self-study time expected/recommended is ______ hours/week.

How long?

Study Skills

As an adult learner your approach to learning will be different to that from

your school days: you will choose what you want to study, you will have
professional and/or personal motivation for doing so and you will most
likely be fitting your study activities around other professional or domestic
responsibilities.

Essentially you will be taking control of your learning environment. As a

consequence, you will need to consider performance issues related to time
management, goal setting, stress management, etc. Perhaps you will also
need to reacquaint yourself in areas such as essay planning, coping with
exams and using the web as a learning resource.

Your most significant considerations will be time and space i.e. the time
you dedicate to your learning and the environment in which you engage in
that learning.

We recommend that you take time now—before starting your self-study—

to familiarize yourself with these issues. There are a number of excellent
resources on the web. A few suggested links are:

 http://www.how-to-study.com/
The “How to study” web site is dedicated to study skills resources. You
will find links to study preparation (a list of nine essentials for a good
study place), taking notes, strategies for reading text books, using
reference sources, test anxiety.

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 ITDB3111- Project Management, Third Edition

 http://www.ucc.vt.edu/stdysk/stdyhlp.html
This is the web site of the Virginia Tech, Division of Student Affairs.
You will find links to time scheduling (including a “where does time
go?” link), a study skill checklist, basic concentration techniques,
control of the study environment, note taking, how to read essays for
analysis, memory skills (“remembering”).

 http://www.howtostudy.org/resources.php
Another “How to study” web site with useful links to time
management, efficient reading, questioning/listening/observing skills,
getting the most out of doing (“hands-on” learning), memory building,
tips for staying motivated, developing a learning plan.

The above links are our suggestions to start you on your way. At the time
of writing these web links were active. If you want to look for more go to
www.google.com and type “self-study basics”, “self-study tips”, “self-
study skills” or similar.

Need Help?

Is there a course web site address?

What is the course instructor's name? Where can s/he be located

(office location and hours, telephone/fax number, e-mail address)?
Help
Is there a teaching assistant for routine enquiries? Where can s/he be
located (office location and hours, telephone/fax number, e-mail
address)?

Is there a librarian/research assistant available? Where can s/he be

located (office location and hours, telephone/fax number, e-mail
address)?

Is there a learners' resource centre? Where is it located? What are the

opening hours, telephone number, who is the resource centre
manager, what is the manager's e-mail address)?

Who do learners contact for technical issues (computer problems,

website access, etc.)

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 ITDB3111- Project Management, Third Edition

Assignments
The learner is required to accomplish and submit assignments and/or
project that will be required by the Course Lecturer.
The required number of assignments and the corresponding marks
will be based on the approved Course Delivery Plan for the semester.
The assignments and/or project will be submitted to the Course
Assignments Lecturer as per the designated submission dates, methods and other
requirements.
The assignments will be given as specified in the Course Delivery
Plan.

Assessments
The learner is required to undergo and pass the required assessments
as specified in the College By-Laws and as per the Assessment
Pattern approved by the Department.
These assessments includes but are not limited to:
Assessments
 Quizzes
 Assignments
 Laboratory Works
 Presentations
 Mid-Semester Examination
 Final Examination
The corresponding marks will be set in the Course Delivery Plan.

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 ITDB3111- Project Management, Third Edition

Getting around this Course Material

Margin icons

While working through this Course Material you will notice the frequent use of margin icons.
These icons serve to “signpost” a particular piece of text, a new task or change in activity; they
have been included to help you to find your way around this Course Material.

A complete icon set is shown below. We suggest that you familiarize yourself with the icons and
their meaning before starting your study.

Activity Assessment Assignment Case study

Discussion Group activity Help Note it!

Outcomes Reading Reflection Study skills

Summary Terminology Time Tip

Computer-Based
Audio Video Feedback
Learning

Answers to
Objectives Basic Competence
Assessments

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 ITDB3111- Project Management, Third Edition

Chapter 1-INTRODUCTION TO PROJECT MANAGEMENT

1.1. INTRODUCTION
This chapter provides the essential introductory concepts of Project Management. It
discusses the processes, life cycles, skills and knowledge areas. It also covers the
concepts behind the organizational aspects of Project Management such as
stakeholders, teams and work environment.
1.1.1. Objectives
The objectives of this Chapter are:
 Explain what a project is, various attributes and constraints.
 Identify the different stakeholders and their functions.
 Describe the project management process and its areas.
1.1.2. Outcomes
Upon completion of this chapter, the student will be able to:
 Explain the concepts of Project Management and Knowledge Areas.
 Analyze organization structures.

1.1.3. Terminologies
 Project-a temporary endeavor undertaken to create a unique product,
service or result.
 Life Cycle-refers to the process used to build the deliverables
produced by the project.
 Project Management-the application of knowledge, skills, tools and
techniques to project activities to meet project requirements.
 Milestone-a significant point or event in the project.
 Project Stakeholders-individuals or organizations who are
connected to the project in one way or another and can influence the
project’s outcome.

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 ITDB3111- Project Management, Third Edition

1.2. BASIC CONCEPTS

1.2.1. What is a Project?
The Project Management Body of Knowledge (PMBOK) defines a Project
as a temporary endeavor undertaken to create a unique product, service or
result with a definite beginning and end.

1.2.2. Project Characteristics

A project has several characteristics:
 Projects are unique.
 Projects are temporary in nature and have a definite beginning and
ending date.
 Projects are completed when the project goals are achieved or it's
determined the project is no longer viable.
 A successful project is one that meets or exceeds the expectations of
your stakeholders.
1.2.3. Project Components
Large or small, a project always has the following three components [8]:
 Specific scope: Desired results or products.
 Schedule: Established dates when project work starts and ends.
 Required resources: Necessary amounts of people, funds, and
other resources.
1.2.4. Project Constraints
On any project, a number of constraints are competing for attention. They
are the following [6]:
 Cost is budget approved for the project including all necessary
expenses needed to deliver the project.
 Scope is what the project is trying to achieve, it entails all the work
involved in delivering the projects outcomes and the processes used
to produce them. It is the reason and the purpose of the project.

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 ITDB3111- Project Management, Third Edition

 Quality is the standards and criteria to which the project's products

must be delivered for them to perform effectively.
 Risk is defined by potential external events that will have a negative
impact on your project if they occur.
 Resources are required to carry out the project tasks. They can be
people, equipment, facilities, funding, or anything else capable of
definition (usually other than labor) required for the completion of
a project activity.
 Time is defined as the time to complete the project, often the most
frequent project oversight in developing projects.

1.2.5. Project Life Cycle

Project Life Cycle refers to the process used to build the deliverables
produced by the project. The Project Life Cycle is often formally divided
into phases that describe common activities as the project matures [9].
Deliverables are the results the project has to deliver in order for the customer
to say the project is complete. [10].
A Milestone, sometimes called an event, is a significant occurrence in the life
of a project [8].

Figure 1.2.5-The Four Phases of the Project Life Cycle

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 ITDB3111- Project Management, Third Edition

1.3. STAKEHOLDERS
Project stakeholders are individuals or organizations who are connected to the project
in one way or another and can influence the project’s outcome. The project manager
needs to work with different types of stakeholders in various ways. A stakeholder can
do the following [4]:
o Be actively involved in the work of the project.
o Exert influence over the project and its outcome (also known as managing
stakeholders).
o Have a vested interest in the outcome of a project.
The following are examples of Project Stakeholders [1]:
o Customers/users - The persons or organizations that will use the project’s
product or service or result. Customers/users may be internal and/or external to
the performing organization.
o Sponsor - A person or group that provides the financial resources, in cash or in
kind, for the project. The sponsor leads the project through the engagement or
selection process until formally authorized, and plays a significant role in the
development of the initial scope and charter.
o Portfolio managers/portfolio review board - Portfolio managers are
responsible for the high-level governance of a collection of projects or
programs, which may or may not be interdependent.
o Program managers - Program managers are responsible for managing related
projects in a coordinated way to obtain benefits and control not available from
managing them individually.
o Project management office - A project management office (PMO) is an
organizational body or entity assigned various responsibilities related to the
centralized and coordinated management of those projects under its domain.
o Project managers - Project managers are assigned by the performing
organization to achieve the project objectives. As the person responsible for
the success of the project, a project manager is in charge of all aspects of the
project including, but not limited to:

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 ITDB3111- Project Management, Third Edition

 Developing the project management plan and all related component

plans,
 Keeping the project on track in terms of schedule and budget,
 Identifying, monitoring, and responding to risk, and
 Providing accurate and timely reporting of project metrics.
o Project team - A project team is comprised of the project manager, project
management team, and other team members who carry out the work but who
are not necessarily involved with management of the project.
o Functional managers - Functional managers are key individuals who play a
management role within an administrative or functional area of the business,
such as human resources, finance, accounting, or procurement.
o Operations management - Operations managers are individuals who have a
management role in a core business area, such as research and development,
design, manufacturing, provisioning, testing, or maintenance.
o Sellers/business partners - Sellers, also called vendors, suppliers, or
contractors, are external companies that enter into a contractual agreement to
provide components or services necessary for the project.

Figure 1.3.1-The Relationship between Stakeholders and the Project [1]

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 ITDB3111- Project Management, Third Edition

1.4. THE PROJECT MANAGEMENT PROCESS

1.4.1 The Project Management Institute
The Project Management Institute or PMI, is an internationally recognized
organization that has developed standards for the domain of project
management including standards for portfolio management, program
management, project management, and Work Breakdown Structures [2]. The
most widely recognized reference of Project Management best practices is A
Guide to the Project Management Body of Knowledge (PMBOK), published
by the Project Management Institute (PMI). The fourth and most recent edition
of PMBOK (PMBOK 4) was published in 2008.
1.4.2 The Project Management Process Groups
The Project Management Body of Knowledge (PMBOK) Guide has established
five process groups to define the project management process. These processes
are as follows:

o Initiating Process Group - Defines and authorizes the project or a

project phase.
o Planning Process Group - Defines and refines objectives, and plans
the course of action required to attain the objectives and scope that the
project is to address.
o Executing Process Group - Integrates people and other resources to
carry out the project management plan.
o Monitoring and Controlling Process Group - Regularly measures and
monitors progress to identify variances from the project management
plan so that corrective action can be taken when necessary to meet
project objectives.
o Closing Process Group - Formalizes acceptance of the product,
service, or result and brings the project or a project phase to an orderly
end.

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 ITDB3111- Project Management, Third Edition

Figure 1.4.2.1-The Project Management Process Groups [3]

Figure 1.4.2.2-The Five Project Management Process Groups that

support the Project Life Cycle phases [8]

1.4.3. Knowledge Areas

The PMBOK identifies nine knowledge areas that a project manager should
consider throughout the entire life cycle of a project. Knowledge areas focus on
a specific aspect of the overall domain and identify the elements that need to be
considered to properly manage a project [2]:
o Project Integration Management - This knowledge area looks at the
processes and activities that are needed to identify, define, combine,
unify, and coordinate the different actions within a Project Management
Process Group.

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 ITDB3111- Project Management, Third Edition

o Project Scope Management - This knowledge area handles scope

planning, scope definition, creating a WBS (decomposition of the scope
into smaller components), scope verification, and scope control.
o Project Time Management - This knowledge area concerns five
different steps: activity definition, activity sequencing, activity resource
estimating, activity duration estimating, and schedule development.
o Project Cost Management - This knowledge area involves planning,
estimating, budgeting, and controlling costs so a project can be finished
within budget.
o Project Quality Management - This knowledge area determines
policies, objectives, and responsibilities to meet a project’s quality
standards.
o Project Human Resource Management - This knowledge area helps
organize and manage a project’s team, the people necessary for the
completion of the project.
o Project Communications Management - This knowledge area
involves the processes that ensure timely generation, collection,
distribution, storage, retrieval, and disposition of information.
o Project Risk Management - This knowledge area envelopes risk
management planning, identification, analysis, responses, monitoring,
and controlling of a project.
o Project Procurement Management - This knowledge area involves
the processes necessary to purchase products, services, or results from
outside the project team.

1.4.4. Processes Mapping to Groups and Knowledge Areas

The mapping of processes to process groups and knowledge areas is presented
in Table 1.5.4. Each process is presented in the phase (process group) where
most of its activity takes place.

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 ITDB3111- Project Management, Third Edition
Project Management Process Groups
Knowledge
Monitoring
Areas Initiating Planning Executing Closing
&Controlling
 Develop  Develop Project  Direct and  Monitor and  Close Project
Project Management Plan Manage Control Project or Phase
Project Charter Project Work
Integration Execution  Perform
Management Integrated
Change
Control
 Collect  Verify Scope
Project Scope Requirements  Control Scope
Management  Define Scope
 Create WBS
 Define Activities  Control
 Sequence Schedule
Activities
 Estimate Activity
Project Time
Resources
Management
 Estimate Activity
Durations
 Develop
Schedule
 Estimate Costs  Control Costs
Project Cost
 Determine
Management
Budget
 Plan Quality  Perform  Perform
Project Quality Quality Quality
Management Assurance Control

 Develop Human  Acquire

Project Human
Resource Plan Project Team
Resource
 Develop
Management
Project Team

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 ITDB3111- Project Management, Third Edition
Project Management Process Groups
Knowledge
Monitoring
Areas Initiating Planning Executing Closing
&Controlling
 Manage
Project Team
 Identify  Plan  Distribute  Report
Project Stakeholder Communications Information Performance
Communications  Manage
Management Stakeholder
Expectations
 Plan Risk  Monitor and
Management Control Risks
 Identify Risks
 Perform
Qualitative Risk
Project Risk
Analysis
Management
 Perform
Quantitative Risk
Analysis
 Plan Risk
Responses
Project  Plan  Conduct  Administer  Close
Procurement Procurements Procurement Procurement Procurements
Management s

Table 1.5.4-Mapping of the Project Management Processes to Process Groups and

Knowledge Areas [1]

1.5. CHAPTER SUMMARY

In this chapter, you learned the basic and essential concepts that are embodied in Project
Management, the influence of the organization’s structure in carrying out the different
project activities as well as the Project Management Process Groups and their
Processes. These introductory topics provide the foundation in carrying out the

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essential activities and achieving the required milestones and deliverables in the
different processes.
1.6. ASSIGNMENT
You are required to perform the following, either individually or in a group:
Assignment 1.6.1
1. Select a particular organization in which you or any members of the group have
sufficient knowledge.
2. Investigate on the selected organization’s structure and come up with a drawing
of its organizational chart.
3. Obtain information on an ongoing project in this organization and identify the
stakeholders of this project.
4. You or your members should reflect on the following:
 How the organization you have selected is structured in relation to the
products and/or services they offer.
 How the organization’s structure changes in relation to the project they are
currently undertaking.
 Why is the project being undertaken? What are its perceived contributions
to the organization’s overall goal?
5. Submit a report containing your findings to the Course Lecturer and present this
in the class.

1.7. CASE STUDY

The vendor provides a standard WBS work plan that outlines a 16-month
implementation plan. The new hardware has been ordered. They have assigned the
following resources:
 Project Manager: To manage vendor work and resources.
 Trainer: To provide training for project team and super users.
 Clinical Consultant: To facilitate workflow redesign.
 Configuration Consultant: To provide guidance and assistance for system
build and customization.

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 Technical Specialist: To provide guidance and assistance for the technical

configuration related to hardware and database.
 Technical Interface Specialist: To provide guidance and assistance for the
interface development.
Questions:
1. What types of requirements are needed for this project/program?
2. What types of line items would you expect to find on the budget?
3. Who would you expect to be stakeholders for this project/program?
4. What methods of communication might the project manager utilize for
this project/program?

1.8. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th
Edition, 2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 In Depth, 2011 by Quantum PM and Scott Daley, Que
3. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP,
MCT, Sybex
4. Microsoft® Project 2010 Inside Out, 2011 by Teresa S. Stover, Microsoft Press
5. Oracle Primavera P6 Version 8: Project and Portfolio Management, 2012 by
Daniel L. Williams, PhD and Elaine Britt Krazer, PMP, Packt Publishing
6. Project Management 101 by Linh Huong et. al. taken from
http://cnx.org/content/col11352/1.1/ Last edited by Linh Luong on Aug 19,
2011 3:48 pm GMT-5.
7. Project Management by Merrie Barron and Andrew R. Barron taken from
http://cnx.org:8888/content/col11120/1.6/ Last edited by Andrew R. Barron on
Apr 5, 2013 10:47 am GMT-5.
8. Project Management for Dummies 3rd Edition, 2010 by Stanley Portny, PMP,
Wiley Publishing
9. Project Management Getting It Done by Teresa Hill et. al. taken from
http://cnx.org/content/col11374/1.1/ Last edited by Teresa Hill on Nov 6, 2011
9:18 pm US/Central.

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10. Successful Project Management Applying Best Practices and Real-World

Techniques with Microsoft® Project, 2011 by Bonnie Biafore, Microsoft Press
11. The Project Manager’s Guide to Health Information Technology
Implementation

Chapter 2-INTRODUCTION TO PROJECT MANAGEMENT

SOFTWARE

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2.1. INTRODUCTION
One of the features of this course is the usage of a Project Management software tool
for managing key project activities. Microsoft Project and Primavera Project Planner
are examples of such software tool. Although these software tools are used in the hands-
on activities of this material, the software are only used to provide students with the
basic ideas on the usage of Project Management software on some key project
management activities. Furthermore, the students are encouraged to explore and use
other software with similar features or capabilities.
In this chapter, you’ll learn about the features, key settings and tools that are unique to
MS Project and Primavera Project Planner that help you get up and running fast—and
in the right way. Understanding some important option settings before you start
planning will go a long way toward helping you use Project Management software
more effectively.

2.1.1 Objectives
The objectives of this Chapter are:
 Identify the different deliverables or activity of the project plan.
 Identify the scheduling scheme of the project plan.
 Use a software tool in creating project plan.
 Determine the time frame, constraints, costs, and resources of the project
plan.

2.1.2. Outcomes
Upon completion of this chapter, the student will be able to:
 Explain the concepts of Project Management and Knowledge
Areas.
 Analyze a plan using methods and tools including Establish WBS,
time & effort estimates, resource allocation and scheduling.
 Use tool for project management.

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2.1.3. Terminologies
 Calendar - the settings that define the working days and time for
a project, resources, and tasks.

 Dependency - a link between a predecessor task and a successor

task. A dependency controls the start or finish of one task relative
to the start or finish of the other task.

 Duration - the span of working time that you expect it will take
to complete a task.

 Outline - a hierarchy of summary tasks and subtasks within a

project, usually corresponding to major phases of work.

 Predecessor - a task whose start or end date determines the start

or finish of another task or tasks, called successor tasks.

2.2. MAPPING THE PROJECT MANAGEMENT SOFTWARE USAGE

TO THE PROJECT MANAGEMENT PROCESS GROUPS
PMBOK defines the five project Management process groups [2]:

o Initiating
o Planning
o Executing
o Monitoring and controlling
o Closing
Organizations have varying degrees of maturity and depth with regard to project
management processes and a clear understanding of how a tool like Project can help in
each of the project management process groups is essential. The following tables show
the different project management process groups and the processes included in each
with relation to their usage level of Microsoft Project.

Project
Microsoft Project
Management Comments
Usage Level
Stage

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May help develop high-level order of magnitude estimates

Initiating Low
for schedule, scope, and cost.

Helps define, integrate, and communicate scope, time, cost,

Planning High
and resource plans. Some support for risk planning.

Helps direct who does what when, in terms of execution.

Executing Med-High Provides the roadmap and clear path to the final deliverable
or result.

Helps monitor and control change and measure the impact on

Monitoring & scope, time, cost, and resources. Allows for effective
High variance analysis and decision-making for taking corrective
Controlling
action.

Useful for final variance analysis, lessons learned,

Closing Low-Med developing future forecasting abilities, best practices, and
benchmarking.

Table 2.2.1 - Mapping out where Project 2010 will be the most help in managing
individual projects [2]

2.3. IMPORTANCE OF USING PROJECT MANAGEMENT

SOFTWARE
Project Management software can dramatically improve the productivity of any project
whether large or small. There are a variety of Project Management software options
available for use; all of which offer the following features:

2.3.1. Scheduling
Scheduling is one of the most critical tools required to manage a project to its
conclusion. By making use of this feature in ‘Microsoft Project’ you can schedule a
project from the information you input about the overall project, the individual tasks
required to see the project through to completion, and the resources (people, equipment,
materials) necessary to complete those tasks. If there are changes that occur to the tasks

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or resources after the schedule has been created, you can update these and MS Project
will update the schedule.

2.3.2 Resource assignments

By assigning resources you create the association between specific tasks and the
resources (one or more) required to complete them. These resources include the work
resources (people and equipment required to conclude a task) and material resources
(materials or supplies).

2.3.3. Quality management

Quality management is the set of activities planned at the beginning of the project that
help achieve quality in the project being executed, and which are defined on the basis
of the quality standards set by the project manager and the company delivering the
product.

2.3.4. Tracking progress

For the project to finish on schedule the path of series of tasks must be completed on
schedule. This critical path completion will dictate the project’s finish date. Microsoft
Project defines the critical path by determining the critical tasks and the tasks having
‘slack’, meaning which tasks will be finished early or late according to start date and
scheduled duration.

By knowing and tracking the critical path of the project, as well as resources assigned
to critical tasks, the finish date of the project can be determined. Keeping track of the
completion and status of critical tasks is essential to keeping the project on course to
being completed on time.

2.3.5. Report generation

It is important to generate timely reports about ‘completion of work, use of resources,

cost expended, quality of work and the forecasts. It gives better picture to project

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stakeholders about the status and progress of the project. Various types of reports in
variety of forms can be generated by using project management software such as
“Status report, progress report, variance report, trend report, Forecasting reports, etc.”
These reports also help stakeholders to take proactive decisions to enhance
opportunities and decrease threats about the project deliverables.

2.4. GETTING STARTED WITH MICROSOFT PROJECT

If you are using Microsoft Project for this course, see the Microsoft Project
Laboratory Manual on Getting Started with Microsoft Project. You may remove
section 2.5.
2.5. GETTING STARTED WITH PRIMAVERA PROJECT PLANNER
VERSION 3.0
If you are using Primavera Project Planner for this course, see the Primavera Project
Planner Laboratory Manual on Getting Started with Primavera Project Planner . You
may remove section 2.4.
2.6. CHAPTER SUMMARY
This chapter introduces Microsoft Project and Primavera Project Planner 2010. It
provides an overview on how to use some key tools to help get things started,
standardize your project-management approach and make new project setup more
efficient. You learned the importance of setting up projects, understanding some
important option settings, such as how the default task type drives scheduling to reflect
the way you and your organization operate.
2.7. HANDS-ON
You are required to perform the following, either individually or in a group:
If you are using Microsoft Project, see the Microsoft Project Laboratory Manual and
perform the following:
2.7.1. Laboratory Work: Setting Up-Initializing a New Project
3. 2.7.2. Laboratory Work: Change the Working Time-Working With Calendars
If you are using Primavera Project Planner, see the Primavera Project Planner
Laboratory Manual and perform the following:

1.1 Laboratory Work: Setting Up-Initializing a New Project

1.6 Laboratory Work: Change the Working Time-Working With Calendars

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2.8. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th Edition,

2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP,
MCT, Sybex
3. Project Management Getting It Done by Teresa Hill et. al. taken from
http://cnx.org/content/col11374/1.1/ Last edited by Teresa Hill on Nov 6, 2011 9:18
pm US/Central.
4. Step by Step Guide to Project Management by PM@UTS taken from
http://www.merlot.org/merlot/viewMaterial.htm?id=562845Date Modified in
MERLOT: June 28, 20115.
5. PMP Training, Project Management taken from http://vinsys.in/importance-of-using-
project -management-software/
6. Primavera Lab Manual, Higher College of Technology, Muscat

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Chapter 3-PROJECT INITIATION

3.1. INTRODUCTION
This chapter introduces the processes performed to define a new project or a new phase
of an existing project by obtaining authorization to start the project or phase. It shows
how initial scope is defined, financial resources are committed and internal and external
stakeholders and those who will interact and influence the overall outcome of the
project are identified. All this information is captured in the project charter.
3.1.1. Objectives
The objectives of this Chapter are:
 Identify feasible project.
 Develop and explain project charter.
 Identify the roles and responsibility of a project team.
 Describe the structure of a project team.

3.1.2. Outcomes
Upon completion of this chapter, the student will be able to:

 Explain the concepts of Project Management and Knowledge Areas.

 Analyze organization structures.
 Analyze a plan using methods and tools including Establish WBS, time &
effort estimates, resource allocation and scheduling.
 Use case studies for project management.

3.1.3. Terminologies
 Project Stakeholders-individuals or organizations who are
connected to the project in one way or another and can influence the
project’s outcome.
 Project Statement of Work- a narrative description of products or
services to be delivered by the project.

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 Business Case-provides the necessary information from a business

standpoint to determine whether or not the project is worth the
required investment.
 Contract-an input if the project is being done for an external
customer.

3.2. PROJECT INITIATION

The Initiating process is what gets a project off the ground. The goal is to get approval
from the customer, management, and other stakeholders to begin planning. The project
charter formalizes the request from a sponsor for responding to a business need. The
project charter is usually a short document that refers to other more-detailed documents
such as a new offering request, a request for proposal, or any other perceived business
need or client request.

3.3. THE DEVELOP PROJECT CHARTER PROCESS

The project charter formalizes the request from a sponsor for responding to a business
need. The project charter is usually a short document that refers to other more-detailed
documents such as a new offering request, a request for proposal, or any other
perceived business need or client request. Figure 3.3.1 shows the inputs, tools and
techniques, and outputs for the Develop Project Charter process [1].

Figure 3.3.1 – The Develop Project Charter Process [1]

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 ITDB3111- Project Management, Third Edition

3.3.1. DEVELOP PROJECT CHARTER: INPUTS

3.3.1.1. Project Statement of Work
The Statement of Work (SOW) is a narrative description of
products or services to be delivered by the project. The SOW
typically references:
 Business need - An organization’s business need may be
based on a market demand, technological advance, legal
requirement, or government regulation.
 Product scope description - This documents the
characteristics of the product that the project will be
undertaken to create.
 Strategic plan - The strategic plan documents the
organization’s strategic goals, therefore, aligning all
projects the strategic plan.
3.3.1.2. Business Case
The business case provides the necessary information from a
business standpoint to determine whether or not the project is
worth the required investment. The business case is created as a
result of one or more of the following:
 Market demand (e.g., a car company authorizing a project
to build more fuel-efficient cars in response to gasoline
shortages),
 Organizational need (e.g., a training company authorizing
a project to create a new course to increase its revenues),
 Customer request (e.g., an electric utility authorizing a
project to build a new substation to serve new industrial
park),
 Technological advance (e.g., an electronics firm
authorizing a new project to develop a faster, cheaper, and
smaller laptop after advances in computer memory and
electronics technology),

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 Legal requirement (e.g., a paint manufacturer authorizing

a project to establish guidelines for handling toxic
materials),
 Ecological impacts (e.g., a company undertakes a project to
lessen its environmental impact), or
 Social need (e.g., a non-governmental organization in a
developing country authorizing a project to provide potable
water systems, latrines, and sanitation education to
communities suffering from high rates of cholera).

3.3.1.2.1 Feasibility Study

Feasibility studies, aim to objectively and rationally uncover
the strengths and weaknesses of an existing business or
proposed venture, opportunities and threats present in
the environment, the resources required to carry through, and
ultimately the prospects for success. In its simplest terms, the
two criteria to judge feasibility are cost required and value to
be attained.

A well-designed feasibility study should provide a historical

background of the business or project, a description of
the product or service, accounting statements, details of the
operations and management marketing research and
policies, financial data, legal requirements and tax
obligations. Generally, feasibility studies precede technical
development and project implementation.

A feasibility study evaluates the project's potential for

success; therefore, perceived objectivity is an important
factor in the credibility of the study for potential investors
and lending institutions. It must therefore be conducted with

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an objective, unbiased approach to provide information upon

which decisions can be based.

3.3.1.2.2 Common factors

The acronym TELOS refers to the five areas of feasibility -

Technical, Economic, Legal, Operational, and Scheduling.

 Technology and system feasibility

The assessment is based on an outline design of system

requirements, to determine whether the company has the
technical expertise to handle completion of the project.
When writing a feasibility report, the following should be
taken to consideration:

o A brief description of the business to assess more

possible factors which could affect the study
o The part of the business being examined
o The human and economic factor
o The possible solutions to the problem

At this level, the concern is whether the proposal is both

technically and legally feasible (assuming moderate cost).

 Legal Feasibility

Determines whether the proposed system conflicts with legal

requirements, e.g. a data processing system must comply
with the local Data Protection Acts.

 Operational Feasibility

Operational feasibility is a measure of how well a proposed

system solves the problems, and takes advantage of the
opportunities identified during scope definition and how it

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satisfies the requirements identified in the requirements

analysis phase of system development.

The operational feasibility assessment focuses on the degree

to which the proposed development projects fits in with the
existing business environment and objectives with regard to
development schedule, delivery date, corporate culture, and
existing business processes.

To ensure success, desired operational outcomes must be

imparted during design and development. These include
such design-dependent parameters such as reliability,
maintainability, supportability, usability, productability,
disposability, sustainability, affordability and others. These
parameters are required to be considered at the early stages
of design if desired operational behaviors are to be realized.
A system design and development requires appropriate and
timely application of engineering and management efforts to
meet the previously mentioned parameters. A system may
serve its intended purpose most effectively when its
technical and operating characteristics are engineered into
the design. Therefore operational feasibility is a critical
aspect of systems engineering that needs to be an integral
part of the early design phases.

 Economic Feasibility

The purpose of the economic feasibility assessment is to

determine the positive economic benefits to the organization
that the proposed system will provide. It includes
quantification and identification of all the benefits expected.
This assessment typically involves a cost/ benefits analysis.

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 Technical Feasibility

The technical feasibility assessment is focused on gaining an

understanding of the present technical resources of the
organization and their applicability to the expected needs of
the proposed system. It is an evaluation of the hardware and
software and how it meets the need of the proposed system

 Schedule Feasibility

A project will fail if it takes too long to be completed before

it is useful. Typically this means estimating how long the
system will take to develop, and if it can be completed in a
given time period using some methods like payback period.
Schedule feasibility is a measure of how reasonable the
project timetable is. Given our technical expertise, are the
project deadlines reasonable? Some projects are initiated
with specific deadlines. It is necessary to determine whether
the deadlines are mandatory or desirable.

3.3.1.3. Contract
A contract is an input if the project is being done for an external
customer.

3.3.1.4. Enterprise Environmental Factors

The enterprise environmental factors that can influence the
Develop Project Charter process include, but are not limited to:
 Governmental or industry standards,
 Organization infrastructure, and
 Marketplace conditions.
3.3.1.5. Organizational Process Assets

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The organizational process assets that can influence the Develop

Project Charter process include, but are not limited to:
 Organizational standard processes, policies, and
standardized process definitions for use in the organization;
 Templates (e.g., project charter template); and
 Historical information and lessons learned knowledge base.

3.3.2. DEVELOP PROJECT CHARTER: TOOLS & TECHNIQUES

3.3.2.1. Expert judgment
This is often used to assess the inputs used to develop the Project
Charter. Such judgment and expertise is applied to any technical
and management details during this process. Such expertise is
provided by any group or individual with specialized knowledge
or training, and is available from many sources, including:
 Other units within the organization,
 Consultants,
 Stakeholders, including customers or sponsors,
 Professional and technical associations,
 Industry groups,
 Subject matter experts, and
 Project management office (PMO)

3.3.3. DEVELOP PROJECT CHARTER: OUTPUT

3.3.3.1 Project Charter
The Project Charter documents the business needs, current
understanding of the customer’s needs, and the new product,
service, or result that it is intended to satisfy, such as:
o Project purpose or justification,
o Measurable project objectives and related success
criteria,

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o High-level requirements,
o High-level project description,
o High-level risks,
o Summary milestone schedule,
o Summary budget,
o Project approval requirements (what constitutes project
success, who decides the project is successful, and who
signs off on the project),
o Assigned project manager, responsibility, and authority
level, and
o Name and authority of the sponsor or other person(s)
authorizing the project charter.

3.3.4. PROJECT INITIATION TEMPLATES

This section contains sample templates which support the project initiating
process. During the initiating process you are creating the documents which are
needed to define a new project, or a new phase of an existing project. Many
times a feasibility study is performed or a business case created. These are
considered to be a part of the project initiating process group since they are
created prior to the start of a project. The most critical part of the initiation
process is the project charter. The project charter formally authorizes a project,
and once it's signed the project can then progress to the planning process.
3.3.4.1. Business Case
A Business Case helps to determine whether or not a project
justifies an organizations investment into a project. The Business
Case defines the problem and its impact and performs a Cost
Benefit Analysis for the proposed solution. It also looks at possible
alternative solutions. Often overlooked, the Business Case also
checks to see that the project aligns with the organizations strategic
plans.

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See sample business case template:

http://www.projectmanagementdocs.com/project-initiation-
templates/business-case.html

3.3.4.2. Feasibility Study

A good Feasibility Study helps to objectively decide whether to
proceed with a proposed project. A Feasibility Study should have
broad considerations when considering whether to undertake a new
project. It should consider things such as technological limitations,
the marketplace, your marketing strategy, staffing requirements,
schedule and financial projections.

See sample feasibility study template:

http://www.projectmanagementdocs.com/project-initiation-
templates/feasibility-study.html

3.3.4.3. Project Statement of Work

A Project Statement of Work should identify the Business Need,
document the Product Scope and show that the project is aligned
with the organization's Strategic Plan. The PMBOK identifies the
Statement of Work as a narrative description of the products or
services to be delivered by a project. The Project Statement of
Work references the Business Need, Product Scope Definition and
Strategic Plan and is used as an input to the Project Charter.

See sample project statement of work template:

http://www.projectmanagementdocs.com/project-initiation-
templates/project-statement-of-work.html

3.3.4.4. Stakeholder Management Strategy

The stakeholder management strategy identifies and documents the
approach to take in order to increase support and decrease negative

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impacts of stakeholders throughout the life of the project. It should

identify the key stakeholders along with the level of power and
influence they have on the project. Then the Stakeholder
Management Strategy should document the strategies which will
be used to manage the stakeholders according to their power and
interest in the project.

See sample stakeholder management strategy template:

http://www.projectmanagementdocs.com/project-initiation-
templates/stakeholder-management-strategy.html

3.3.4.5. Project Charter

The Project Charter formally authorize a project, it states the scope
of the project, gives the Project Manager authority over the project,
provides summary milestones, states the project budget and
identifies funding sources.

See sample project charter template:

Single page version:

o http://www.projectmanagementdocs.com/project-initiation-
templates/project-charter.html
o http://www.cvr-
it.com/Samples/XProject_Charter_Form_Template.pdf
o http://innovativeprojectguide.com/sample-project-plans/14-
sample-plans/160-sample-project-charter.html
o http://www.pmi.org/pmief/learningzone/KCMA_Curricula_Doc
uments/Project_Charter_for_School_Store.pdf
o http://www.brighthubpm.com/project-planning/5159-project-
charter-example-for-every-project-manager/

Some organizations prefer a detailed project charter. Multi page version:

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o http://www.projectmanagementdocs.com/initiating-process-
group/project-charter-long.html

3.4. THE ORGANIZATION AND ORGANIZATIONAL STRATEGY

The organizational culture, style, and structure influence how projects are performed.
An organization’s degree of project management maturity and its project management
systems can also influence the project [1].

3.4.1. Organizational Cultures and Styles

Cultures and styles may have a strong influence on a project's ability to meet
its objectives and are typically known as "cultural norms". Most organizations
have developed unique cultures that manifest in numerous ways including, but
not limited to [1]:
 Shared visions, values, norms, beliefs, and expectations
 Policies, methods, and procedures
 View of authority relationships
 Work ethic and work hours

3.4.2. Organizational Structure

Organizational structure is an enterprise environmental factor which can
affect the availability of resources and influence how projects are conducted.
Organizational structures range from functional to projectized, with a variety
of matrix structures between them. Table 3.4.2 shows key project-related
characteristics of the major types of organizational structures [1].

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Table 3.4.2-Organizational Influences on Projects [1]

The structures are as follows [10]:

3.4.2.1. The Functional Structure
The functional organization structure (Figure 3.4.2.1) brings together people
who perform similar tasks or who use the same kinds of skills and knowledge
in functional groups. In this structure, people are managed through clear lines
of authority that extend through each group to the head of the group and,
ultimately, to a single person at the top.

Figure 3.4.2.1 – A Functional Structure for Projects [10]

The functional structure has the following advantages:

 Functional groups are reservoirs of skills and knowledge in their
areas of expertise.

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 Functional groups’ well-established communication processes

and decision-making procedures provide timely and consistent
support for the group’s projects.
 Functional groups provide people with a focused and supportive
job environment.
The functional structure has the following drawbacks:
 The functional structure hampers effective collaboration between
different functional groups.
 The functional group members’ main interest is to perform the
tasks in their group’s specialty area effectively, rather than to
achieve goals and results that may involve and affect other groups
in the organization.
 A functional group may have difficulty getting buy in and support
for its project from other functional groups that must support or
will be affected by the project.
3.4.2.2. The Projectized Structure
The projectized organization structure (Figure 3.4.2.2) groups together all
personnel working on a particular project and are often under the direct
authority of the project manager for the duration of the project.

Figure 3.4.2.2 – The Projectized Structure [10]

The projectized structure has the following advantages:

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 All members of a project team report directly to the project manager.

This clarified and simplified reporting structure reduces the
potential
 Project team members can more easily develop a shared sense of
identity, resulting in a stronger commitment to one another and to
the success of the project.
 Everyone on the team shares the processes for performing project
work, communication, conflict resolution, and decision making.
The projectized structure has the following disadvantages:
 Higher personnel costs
 Reduced technical interchange between projects
 Reduced career continuity, opportunities, and sense of job security

3.4.2.3. The Matrix Structure

The matrix organization structure (Figure 3.4.2.3) combines elements of both
the functional and projectized structures to facilitate the responsive and
effective participation of people from different parts of the organization on
projects that need their specialized expertise.

Figure 3.4.2.3 – The Matrix Structure [10]

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A matrix environment is classified as weak, strong, or balanced, depending

on the amount of authority the project managers have over their teams.
 Weak matrix: Project team members receive most of their direction
from their functional managers. Project managers have little, if any,
direct authority over team members and actually function more like
project coordinators than managers.
 Strong matrix: Companies with strong matrix structures choose
project managers for new projects from a pool of people whose only
job is to manage projects.
 Balanced matrix: This type of matrix environment is a blend of the
weak and strong environments. People are assigned to lead projects
or serves team members based on the projects’ needs rather than on
their job descriptions.
Matrix environment introduces the following challenges, which the project
manager must successfully address:
 Team members working on multiple projects respond to two or more
managers.
 Team members may not be familiar with one another’s styles and
knowledge.
 Team members may focus more on their individual assignments
endless on the project and its goals.
3.4.3. Portfolio Management
PMI defines a portfolio as “a collection of projects or programs and other work
that are grouped together to facilitate effective management of that work to
meet strategic business objectives.” Strategy drives portfolios, and portfolios
drive projects [3].
Portfolio management refers to the centralized management of one or more
portfolios, focusing on ensuring that projects and programs are reviewed to
prioritize resource allocation, and that the management of the portfolio is
consistent with and aligned to organizational strategies [1].
3.4.4. Organizational Process Assets

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Organizational process assets include any or all process related assets, such
as formal and informal plans, policies, procedures, and guidelines as well as the
organization’s knowledge bases such as lessons learned and historical
information.

3.5. DEFINING ROLES AND RESPONSIBILITIES

A typical project entails performing specific pieces of work, making decisions, and
coordinating the activities of others. To accomplish the project with a minimum of time
and resources, each piece of work must be done in the correct order, and each person
must work at peak efficiency, being sure not to repeat.
3.5.1. Characterizing Authority, Responsibility, and
Accountability
The following concepts can help you define and clarify how team members
should relate to each other and to their assigned tasks:
 Authority: The ability to make binding decisions about your
project’s products, schedule, resources, and activities. Examples
include your ability to sign purchase orders that don’t exceed $3,000
and your ability to change a scheduled date by no more than two
weeks.
 Responsibility: The commitment to achieve specific results. An
example is your promise to have a draft report ready by March 1.
 Accountability: Bringing consequences to bear in response to
people’s performance, such as your boss noting in your annual
performance appraisal that you solved a tough manufacturing
problem.
3.5.2. Delegating Assignments the Right Way
Delegating is giving away something you have. It helps to decide what to
delegate and understand different degrees of delegation and also how to support
delegations and achieve the best results possible.
 Deciding what to delegate
Authorities are delegated for four reasons:

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 To free yourself up to do other tasks

 To have the most qualified person make decisions
 To get another qualified person’s perspective on an issue
 To develop another person’s ability to handle additional
assignments prudently and successfully
 Understanding degrees of delegation
Consider the following six degrees of delegation, each of which
builds on and extends the ones that come before it:
 Get in the know. Get the facts and bring them to me for
further action.
 Show me the way to go. Develop alternative actions to take
based on the facts you’ve found.
 Go when I say so. Be prepared to take one or more of the
actions you’ve proposed, but don’t do anything until I say
so.
 Go unless I say no. Tell me what you propose to do and
when, and take your recommended actions unless I tell you
otherwise.
 How’d it go? Analyze the situation, develop a course of
action, take action, and let me know the results.
 Just go! Here’s a situation; deal with it.
 Delegating to achieve results
Steps to improve the person’s chances for successful
performance:
1. Clarify what you want to delegate.
2. Choose the right person.
3. Make the delegation correctly.
4. Be available to answer questions.
5. Monitor performance.
6. Promptly address problems that arise.
3.5.3. Developing a Responsibility Assignment Matrix (RAM)

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Defining and sharing team roles and responsibilities upfront can help improve
performance and identify and head off potential difficulties during a project.
One way to display team roles and responsibilities is in a Responsibility
Assignment Matrix (RAM). The RAM is a table that depicts each project
members’ role in the performance of different project activities. The elements
and format of a RAM (Figure 3.5.3) is as follows:
 Project deliverables are in the left-hand column.
 Project audiences are in the top row.
 The role each audience will play in performing the work to produce
each deliverable is in the intersections of the rows and columns.

Table 3.5.3 – A Responsibility Assignment Matrix [10]

The RAM in Table 3.5.3 indicates which of the following three roles people can
have in a project’s activities:
 Primary responsibility (P): You’ll ensure the results are achieved.
 Secondary responsibility (S): You’ll ensure some portion of the
results is achieved.
 Approval (A): You’re not actually working on the deliverable, but
you approve the results produced by others who are.
The RAM is just a format; for each project, roles are defined and assigned if
deemed appropriate. The following roles, for example, may be use in addition
to the three already defined:

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 Review (R): You review and comment on the results of an activity,

but your formal approval isn’t required.
 Output (O): You receive products from the activity.
 Input (I): You provide input for the activity work.

Additionally, roles and assignments are identified by using a coding structure

such as RACI or PARIS:

Use the WBS to Identify Office, Role, or

identify deliverables Person i.e. Utilities Office,
and activities. Utilities Coordinator, or
persons name

Deliverable: Office, Role Office, Role Office, Role

or person or person or person
Enviro. Permits 
Traffic Report 
Utility Locates 
Intersection Design  

Table 3.5.4 – How to construct RAM

RACI:
 Responsible - owner, the person who owns the work. Each
deliverable/activity must have an owner.
 Approval - the person who approves the deliverable or activity. There
should only be one approver.
 Consulted - this person delivers information required to do the work.
 Informed - a person that needs to be informed of the progress of the
work.

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Project Utilities or
Environmental Traffic Office
Deliverable: Manager Cindy
Coordinator Tammi Bailey
Mark Cross Santos

Enviro. Permits A R
Traffic Report A R
Utility Locates I I R
Intersection
A C R C
Design

RACI – Responsible, Approval, Consulted, Informed

Table 3.5.5 – Sample RAM using RACI

PARIS
 Participant - involved but not at a critical level
 Accountable - must answer to management for the project task status
 Review needed or required
 Input needed or required
 Sign Off Required

Team Leader Environmental Traffic Design

Deliverable: Utilities
Marcia Weeks Office Frank Morelli

Enviro. Permits A S
Traffic Report A R A R
Utility Locates I R R A
Intersection
A R S R
Design

PARIS – Participant, Accountable, Review, Input, Sign off

Table 3.5.6 – Sample RAM using PARIS

There are many possible variations to this coding structure; the project team may
create unique codes that are more meaningful to the project such as:
 Verifies - the person who ensures the work meets quality standards.
 Final Authority - the person who puts the final stamp on the completed
work.

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3.6. CHAPTER SUMMARY

This chapter focused on the essential prerequisites that justify the need to undertake a
project as well as how to setup and manage a Project Team. The Initiating Process
Group provides the justification for the project through the preparation of documents
such as the Project Charter. The initial project scope is identified and the project team’s
members are sourced out.

3.7. ASSIGNMENT
You are required to perform the following, either individually or in a group:
Assignment 3.7.1
An organization that specializes in providing telecommunication services is
contemplating on a project involving network security services in anticipation for the
implementation of 4G LTE network connectivity. Based on the knowledge you have
gained from the assignments in Chapter 1, this chapter’s contents and using the
provided templates and samples accomplish the following requirements:
1. Download the sample Project Charter from http://www.cvr-
it.com/Samples/XProject_Charter_Form_Template.pdf
2. Fill-up the Sections 1, 2, 4 & 5.
3. Identify your team members and their roles and responsibilities, and then create
an initial Responsibility Assignment Matrix.
4. Submit a report containing your findings to the Course Lecturer and present this
in the class.

3.8. CASE STUDY

Higher College of Technology (HCT) is in the process of developing an Online
Application of Appeal System. Ministry of Manpower will sponsor and finance the
project. The project will start on January 2015 and should finish at the end of April
2015. Team members will only be hired for this project. All members of the project
team will report directly to the Project Manager.
You will be the assigned Project Manager and should always be present during the
duration of the project. You will receive a monthly salary of 1250RO.

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Team members will consist of the following: Ms. Manal will be the assigned Tester.
Her monthly salary is 625Ro and she will do the work for March and April only. Mr.
Talib will be the Software Engineer with monthly salary of 890RO, who will worked
together with the project manager.
Ms. Mariam with a monthly salary of 875RO will be the Database Administrator who
will work during January, February and April only, Mr. Issa will be the Network
Engineer who will receive a monthly salary of 1050RO. He will work during February,
March and April only together with Mr. John with 980RO monthly salary who will be
in charge on the security of the system. Mr. Ruel with a monthly salary of 1000RO will
manage the information system of the project from January to April.
There are just a few major deliverables: User registration module, modules for
application for appeal for resit and make-up exams, and appeal against exam result,
data warehouse for the system, 24-hour network connectivity, secured information, and
secured database with back up facility, test results, and posting of approved results.
Prepare a Budget (Cost) Plan for manpower services.

3.9. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th
Edition, 2008 Edition by PMI, Project Management Institute
2. Business plan as a decision making tool for projects, Visitask,
http://www.visitask.com/Business-plan-decison-making-tool.asp
3. Business Plan Guidelines, Merlot,
http://www.merlot.org/merlot/viewMaterial.htm?id=301883
4. Business Project - IT ADVISERS BUSINESS PLAN SAMPLE, iPlanner,
http://www.iplanner.net/business-
financial/bizplan/bizplan.aspx?eq=_Kv8WPlpGI9X5pqTzaYF-Q
5. Examples of a Business Case, Bright Hub PM,
http://www.brighthubpm.com/project-planning/103223-examples-of-a-
business-case/?cid=parsely_rec
6. Feasibility Study Template, Bright Hub PM,
http://images.brighthub.com/media/6C54CD_feasibility-study-template-from-
kibs.doc

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7. Guide to the Project Initiation Process Group, Bright Hub

PM,http://www.brighthubpm.com/project-planning/124432-guide-to-the-
project-initiation-process-group/?cid=parsely_rec
8. How to write an effective business plan, ABC Consulting,
http://www.businessconsultingabc.com/Writing_An_Effective_Business_Plan
.html
9. http://www.cvr-it.com/Samples/XProject_Charter_Form_Template.pdf
10. Project Management for Dummies 3rd Edition, 2010 by Stanley Portny, PMP,
Wiley Publishing
11. Sample Feasibility Study, Bright Hub PM,
http://images.brighthub.com/media/3D2FF6_feasibility-study-sample.doc
12. What is a Terms of Reference?, Project Management Tips,
http://pmtips.net/terms-reference/
13. Feasibility Study; https://en.wikipedia.org/wiki/Feasibility_study
14. Project Initiation Templates taken from:
http://www.projectmanagementdocs.com/project-initiation-templates.html

Chapter 4-PROJECT PLANNING

4.1. INTRODUCTION

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This chapter deals with the processes needed to create the Project Plan. The Planning
Process Group consists of those processes performed to establish the total scope of the
effort, define and refine the objectives, and develop the course of action required to
attain those objectives. The planning processes develop the project management plan
and the project documents that will be used to carry out the project. The usage of
Microsoft Project will be introduced particularly in the creation of the project’s
schedule.
4.1.1. Objectives
The objectives of this Chapter are:
 Determine the project deliverables and its characteristics.
 Construct work breakdown structure of the project.
 Identify the schedule, costs and resources of the project.
 Describe different kind of management plan.

4.1.2. Outcomes
Upon completion of this chapter, the student will be able to:

 Explain the concepts of Project Management and Knowledge Areas.

 Analyze a plan using methods and tools including Establish WBS, time &
effort estimates, resource allocation and scheduling.

 Analyze concepts of Quality Management, Assurance and Control.

 Analyze risks and manage them.

 Evaluate set-targets, deliverables and conflict resolution documents.

 Use case studies for project management.

4.1.3. Terminologies
 Deliverables - the products we hope to achieve when the project is
completed.
 Work Breakdown Structure (WBS) - a deliverable-oriented
hierarchical decomposition of the work to be executed by the project
team to accomplish the project objectives and create the required

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deliverables, with each descending level of the WBS representing an

increasingly detailed definition of the project work.
 PERT (Program Evaluation and Review Technique) - a duration-
based estimating technique that uses three points (pessimistic, most
likely, and optimistic) to determine the best estimate of duration on a
task-by-task basis.
 Quality of a project - measured by whether the project meets or
exceeds customer expectations.
 Change Request - a request to change some aspect of the project after
it has been approved and committed.

4.2. ESTABLISH PROJECT DELIVERABLES

The deliverables of a project are the products we hope to achieve when the project is
completed. Deliverables typically include physical properties, content properties
(documents or other written artifacts), technical properties, and acceptance criteria. A
deliverable is not considered complete until the tasks associated with that deliverable
are accepted by predetermined and measurable results.
4.2.1. Steps in establishing project deliverables
Establishing project deliverables consists of the following steps:
1. Document each deliverable from the client’s point of view.
2. Review project objectives, key assumptions, and scope with the client
relative to the deliverables we are identifying and defining.
There are other questions you can ask regarding assumptions, such as
the following:
o Are they still the same?
o Is the content the same?
o Has your audience changed?
o Are the resources still going to be available to you?
3. Review with the client the overall project approach to ensure that the
deliverables can and will be achieved.

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4. Define the product acceptance criteria for each deliverable and

Establish metrics for each of the acceptance criteria.
Product acceptance criteria may include, but are not limited to, the
following:
o Quality expectations
o Schedule dates
o Functionality—does the product work as it should?
o Appearance
o Performance levels
o Practicality—is the product suitable for the majority of users?
o Clarity—is the product easy to use and understand?
o Capacity—does the product fulfill the intended use of the
product?
o Accuracy
o Availability—is the product readily available to the consumer?
o Maintainability—does the product have the capability to be
repaired within a reasonable amount of time?
o Reliability—will the product have the same result each time it
is used?
o Flexibility—when external changes occur, can the product
easily be conformed to new situations?

4.3. CREATING THE WBS

4.3.1. What is a WBS?
The Work Breakdown Structure (WBS) is a deliverable-oriented
hierarchical decomposition of the work to be executed by the project team to
accomplish the project objectives and create the required deliverables, with
each descending level of the WBS representing an increasingly detailed
definition of the project work. The WBS organizes and defines the total scope
of the project, and represents the work specified in the current approved
project scope statement [1].

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4.3.2. Creating a WBS

To create a partial WBS:
1. Create the list of work that results in producing your previously
identified deliverables.
When you are meeting with your team for creating a WBS, describe
the scope of work and what is to be delivered so the team won’t get
off track.
2. Organize the work.
Create logical groupings. You can do this by phase, by geography, by
organization, by key work products, chronologically, or any other way
that your team feels will accomplish this task.
3. Deconstruct each task and review with the team.
Make sure that each task is deconstructed to a level where resources
can be assigned and cost estimates given. Because your team helped
to create the WBS, you will want to review it and make adjustments
as needed. Your review should include the following:
 Show the team what has been done so far.
 Go through the WBS and fix and/or confirm groupings.
 Adjust task and activity names, if necessary.
 Change wording, if necessary, to make it clearer but do not
adjust intent.
4. Verify that the WBS is correct and complete
The best way to verify completeness and correctness is to ask this
question at the lowest level: “Will these tasks fully complete the
required deliverable?”
 Common Obstacles
Even though you are acting as a peer on this process, your
facilitation skills will be needed if you encounter any of these
obstacles:
o Discussing or adding new requirements
o Talking about the solution rather than the work

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o Wanting to establish dependencies too early

o Wanting to assign resources too early
o Being so overly detailed that you spend more time
creating the WBS than managing it
o Concern over levels of a WBS:
 Commonly a WBS has between five and seven
levels.
 It may take only three or four levels to create a
budget-level deliverable.
 If you have seven or more levels, typically this
would then become a subproject or a program
with multiple subprojects.

4.4. DEVELOPING A BUDGET PLAN

After resource and staffing planning has taken place, the project manager can develop
an estimate of resource costs. A finance plan (or as it is sometimes called, a cost plan)
should be credible enough that there will be sufficient budget in place before work
begins, particularly when you are dealing with projects that require several
subcontractors, vendors, and so on. Be actively involved in the work of the project.
To create a Budget Plan, the following task must be done:

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Table 4.4 Budget Planning

4.4.1. Cost estimating
Estimating types:
 Parametric Modeling - This type is considered “top-down.” It uses
project characteristics (parameters) in a mathematical model to predict
project costs. The difference in accuracy can be anywhere from –25%
to +75%.
 Analogy Estimating - This is another top-down estimating method. The
difference in accuracy may be –10% to +25% when the current project
is very similar to the analogous project.
 Definitive Estimating - This type often has a –5% to +10% level of
accuracy. You estimate the cost of individual work items so that when
you summarize, or roll up, the individual estimates you can get a project
total. This type of estimating is considered bottom-up.

4.4.2. Cost budgeting

The total effort required to perform the project is determined in the estimating
and scheduling process. Until the final schedule has been agreed upon,
estimating isn’t complete because as you schedule you may reassign resources,
which may change effort estimates for individual tasks.
The estimated resource budget (in this abbreviated example) plus non-labor
costs (excluding contingency and management reserves) becomes your baseline
cost budget (Table 4.4.2).

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Table 4.4.2 Budget Plan

4.4.3. Cost control
Cost control entails monitoring actual cost performance to identify and act on
cost variances. It also includes vigorous control of changes to the project
scope to prevent unnecessary cost increases. The following is a cost
management plan template that may be useful when you create your cost plan:
 Section 1: Estimates
 Describe how you derived your estimates.
 Describe the estimates derived from labor resources.
 Describe estimates required for non-labor resources.
 Describe estimates from contingency funds associated with
known risk events.
 Describe the estimate of the management reserve that may be
needed for unknown risks that may arise.
 Section 2: Cost Budgeting
 Allocate costs per work package.
 Allocate costs to time elements such as months, quarters, or
years
 Define spending plans to answer, “Will the project partially fund
itself?”
 Section 3: Cost Control
 Document procedures for retrieving cost information.
 Use earned value to determine whether funds are adequate
within predetermined ranges.
 Compare planned costs to actual costs.
 Establish cost-control procedures.
 Section 4: Establish a Cost History
 Build a WBS with actual costs of activities so as to establish cost
history for similar projects.
 Utilize or create a historical database to capture cost
information.

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 Audit existing finance controls to see if they worked properly.

4.5. DEVELOPING THE PROJECT SCHEDULE

Develop Schedule is the process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule. Entering the
activities, durations, and resources into the scheduling tool generates a schedule with
planned dates for completing project activities. Developing an acceptable project
schedule is often an iterative process.
4.5.1. How to Create a Project Schedule?
The following represents the steps necessary to create and understand a
project schedule:
1. Define scheduling activities.
The WBS we described earlier shows only the major tasks within logical
groupings. What you want to do now is further define those tasks into
subtasks (if appropriate) and activities that can be scheduled and are
associated with deliverables.
Name the tasks and subtasks. At this point you will want to have some
sort of numbering convention, such as in Figure 4.5.1.1. Finally, name
the activities that create a work package. These activities are also called
schedule activities because you can assign a resource to the activity as
well as an estimated duration for that activity.

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Figure 4.5.1.1 - Shows a partial WBS with Tasks,

Subtasks, and Activities [3]
2. Determine activity sequencing.
Activity sequencing establishes logical relationships (dependencies)
between the project activities. Project teams work together to identify
the dependencies between tasks. You have to know the types of
dependencies first. There are three types of dependencies:
 Mandatory dependencies use hard logic (that is, task A must be
completed before task B).
 Discretionary dependencies use soft logic or preferred logic.
For example, using soft or preferred logic, you typically would
paint the walls before you would lay carpet; however, if the
painter is running late on another project, you can, at your
discretion, choose to install the carpeting first (with plastic to
cover it) and have the painting done later.
 External dependencies determine when some activities can be
scheduled.
The result of sequencing tasks is a network diagram. Two types of
diagramming techniques can be used. One is the Arrow Diagramming
Method (ADM), shown in Figure 4.5.1.2.1, and the other is the
Precedence Diagramming Method (PDM), shown in Figure 4.5.1.2.2.
 Arrow Diagramming Method (ADM)
 Activity identified on the arrow (AOA).
 Circles represent the start or finish of an activity.
 Uses only finish-to-start relationships.
 Can use multiple time estimates to determine durations.
 May need dummy activities to complete the logic (dashed
line) that are used to show only complex precedence
activities such as finish to start.

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Figure 4.5.1.2.1 - The Arrow Diagramming Method [3]

Figure 4.5.1.2.2 - The Precedence Diagramming Method [3]

 Precedence Diagramming Method (PDM)

 Activity identified on the node (AON).
 Can use four precedence relationships:
 Finish to start
 Start to finish
 Finish to finish
 Start to start
 Uses only one duration
 Other project information can be displayed on the node.
Precedence relationships simply show how tasks relate to each other
based on how the network diagram was built, specifically the
dependencies between tasks. In most cases, one activity cannot start
until another activity has finished. This is referred to as a finish-to-start
relationship, and it is the most common form. However, there are four
ways, listed in Table 4.5.1.2.3, that one or more activities can be related
to each other.

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Table 4.5.1.2.3 - Activity Relationships [3]

3. Estimate resources.
Your resource plan helped you determine the resources you need, but
now you have to estimate what these resources will cost. The project
manager works with the resources assigned to do the work to first
estimate the time needed for activities. Table 4.5.1.3.1 lists factors that
help bring reality to the estimate.

Table 4.5.1.3.1 Factors that bring reality to estimates [3]

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4. Determine activity durations.

You now know the scope of each activity. The Associated General
Contractors of America uses productivity rates to determine activity
durations.
Activity duration = work quantity / production rate
5. Develop the schedule.
You now understand the concept of dependencies as well as lead and
lag time. Next, we will cover other essentials that will help you develop
a schedule:
 Critical path
 Float and slack
 Forward and backward pass logic
Critical Path Method (CPM) calculates a single, deterministic early
and late start and a finish date for each activity based on specified,
sequential network logic and a single duration estimated. The focus of
CPM is calculating float to determine which activities have the least
scheduling flexibility.
 A forward pass is performed, calculated from the early start and
early finish dates of all network activities.
 Then a backward pass is performed, calculated from the latest
start and latest finish dates of all network activities. Any task
that has no float is considered critical.
Critical path tasks have no float or slack in them. That’s why they are
critical. Without float, if a task on the critical path takes longer than
expected, it will delay the end of the project.
 Free float or free slack is the amount of time an activity can be
delayed without delaying the early start of any immediately
following activities.
 Total float or total slack is the amount of time an activity may
be delayed from its early start without delaying the planned
project finish date.

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 The word float is used interchangeably with the word slack. It

is a mathematical calculation and can change as the project
progresses and changes are made to the project plan.
Late start – early start = slack
Figure 4.5.1.5.1 shows an example of determining the dependencies
between tasks. Figure 4.5.1.5.2 performs the forward pass. Tasks that
have no predecessor begin the early start with the 0 (see A7, C6, D8,
and F6). The forward pass is noted on the top of the box or node. Starting
with 0 as the early start of the first task, add the duration; this becomes
the early finish date. The early finish date follows the arrow(s) to the
next node(s) and becomes that node’s early start.

Figure 4.5.1.5.1 - Determine Dependencies [3]

Figure 4.5.1.5.2 - Perform a Forward Pass

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Figure 4.5.1.5.3 - Perform a Backward Pass

Figure 4.5.1.5.4 shows how to determine float and the critical path. Float
is determined by simply subtracting the early start from the late start, or
the early finish from the late finish. Now you know this:
 The critical path is D8, E5, H7, M8, and N3 because these tasks
have no float.
 Total float for path A, B, G, L, N = 14. Tasks A and B have a
free float of 3 that can be shared between the two tasks without
impacting the rest of the path, which is 11.
 Total float for path C, G, L, N = 18. Task C has a free float of 7
before impacting the rest of the path, which has 11.
 Total float for path D, E, G, L, N = 11. There is no free float for
an individual task—they must share 11.
 Total float for path D, E, H, I, N = 5. Only task 1 can use this
float because the remainders of those tasks are on the critical
path.
 Total float for path D, J, M, N = 4. Only task 1 can use this float
because the remainders of those tasks are on the critical path.

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 Total float for path F, K, J, M, N = 4. The float is shared so

there is no free float.
Figure 4.5.1.5.4 - Determining Float and Critical Path

Figure 4.5.1.5.5 – ADM- Float and Critical Path

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Figure 4.5.1.5.6 - Perform a Forward Pass

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Figure 4.5.1.5.7 - Perform a Backward Pass

Figure 4.5.1.5.7 Floats and critical paths are:
 Critical path: 5, 10, 20, 30, 35, 45 and 5, 20, 30, 35, 45 because
these tasks have no float.
 Total float for path 5, 10, 25, 45 = 3.
 Total float for path 5, 10, 25, 35, 45 = 3.
 Total float for path 5, 10, 20, 25, 45 = 3.
 Total float for path 5, 10, 20, 25, 35, 45 = 3.
 Total float for path 5, 20, 25, 45 = 3.
 Total float for path 5, 20, 25, 35, 45 = 3.
 Total float for path 5, 20, 30, 40, 45 = 5
 Total float for path 5, 15, 30, 40, 45 = 7

4.6. DEVELOPING THE HUMAN RESOURCE PLAN

The project manager must determine the resources needed to complete the full scope
of the project. You already have a team put together, but they are not the only resources
that will be used on the project. You must also work with functional managers and
possibly your Human Resources (HR) department to gain commitment of needed
resources.
Steps needed to create a human resource plan include the following:
1. Determine human and non-labor resources.
2. Determine resource skill sets.

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Most of the time, a project manager doesn’t get to choose their team members.
You use those people who are assigned by others. You will want to know if the
resources are:
 Expert
 Highly competent
 Competent
 Novice
3. Create a resource calendar. A resource calendar lets you know how many
resources you need as well as when you need them.
4. Determine resource assumptions.
5. Determine resource risks and mitigation strategies.

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Table 4.6.1-Human Resource Plan Template

The following is a template that includes the elements of a resource and staffing
management plan:
 Section 1: Human Resources
 Quantity
 Cost assumptions
 Dates needed
 Date released
 Special needs
 Special skills
 Training needs
 Office and material requirements

 Section 2: Non-labor Resources

 You will want to list the type of resource, the source of the resource, the
quantity, and the cost of each resource:
 Training
 Facilities, such as floor space furniture and moving costs
 Dates needed
 IT hardware such as computers, printers, and the like
 IT software for administrators, end users, and technical support
 Publishing items such as binders, reproduction expenses, and office
supplies
 Environmental needs such as asbestos, soil preparation, site work, and
so on
 Construction material and equipment
 Section 3: Resource Knowledge, Skills, and Abilities
 Task name

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 Type of resource
 Quantity of resources needed for tasks
 Skills
 Experience level:
 Expert
 Highly competent
 Competent
 Novice
 Section 4: Resource Calendar
 Insert your resource calendar in this section.
 Section 5: Resource Assumptions
 Insert your documented assumptions in this section.
 Section 6: Resource and Staffing Risks
 Resource
 Risk
 Mitigation strategy
4.7. DEVELOPING THE COMMUNICATIONS PLAN
4.7.1. Why create a communications plan?
When there is an extensive undertaking, communication of information and
coordination of efforts across teams are critical success factors. The objective
is to ensure accurate, consistent, and timely communication of information to
the business teams, project teams, and management.
The project manager will be engaged in many types of project communications
modalities including, but not limited to, the following:
 Project plans (such as schedules, budgets, risk and resource plans)
 Project meetings
 Status reporting
 Organizational charts
 Requirements
 Contracts
 Presentations

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 Decision memoranda
 Policies and procedures
 Historical records
To be able to do all of this effectively, you must create a communications plan.
The project manager should be the focal point for the flow of communications
in a project environment. Let’s take a look at three common scenarios:
 Between the Project Manager and the Customer – The project
manager receives the project goals from the customer.
 Between the Project Manager and the Sponsor – The project
manager receives the project priority from the sponsor. The project
manager sends performance information such as budget and schedule
results to the sponsor.
 Between the Project Manager and the Project Team – The project
manager provides the project standards to the project team and receives
performance results from the project team.
To be successful with these communications, you need to determine the
communication needs of stakeholders.

Table 4.7.1.Sample Communication Plan

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4.7.2. Determine the Needs of Stakeholders

You interviewed your stakeholders in Phase 1 to determine their issues and
concerns, and whether they supported the project. Now you want to establish
communication objectives for each of the stakeholders. For example:
 A communication objective for the project sponsor is to keep the project
manager in the loop regarding strategic changes to the business.
 A communication objective of the project manager is to keep the team
informed of what is going on and to provide credit and recognition when
it is due.
 You must include the project team, sponsor, suppliers, and the delivery
and performing organizations’ management and others who may need
information regarding the project.

Table 4.7.2.1 identifies some of the key stakeholders and the type of
information they may require.

Table - 4.7.2.1 - Key Stakeholders [3]

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4.7.3. What Should You Communicate?

Communication that is designed to support the information needs of each
stakeholder and to support the flow of information between stakeholders is
critical for project success. Here are several elements that should be
communicated to stakeholders, based on their needs:
 Progress Reports - Highlight progress from the previous report.
 Status Reports - Provide project details for management review.
 Forecast Reports - Forecast project outcomes.
 Report Cards - Provide a management summary of each project. The
report cards can also be consolidated and submitted to the quality
assurance office for review.
 Project Issues - Highlight critical items affecting projects. The issues
and action items should be maintained in a data repository; the results
are consolidated and reports provided to the project manager.
 Budget/Actual - Provide the project budget and actual expense
information.
 Project Changes - Highlight changes affecting project scope, vendor
agreements, overall project plans, or deviations from the project.
 Vendor Information - Identifies and tracks those vendors supporting
projects. Updates to the vendor information will be presented to the
project manager as changes occur.
 Consolidated Work Plans - Consolidate all project plans to produce an
extract of significant project deliverables. The deliverables list is
reviewed on a biweekly basis with those who have a need to know.

4.7.4. When Should You Communicate?

Each stakeholder group may have different needs for receiving information. It
is useful then to create a communications matrix. Table 4.7.4 shows an example
of a communications matrix.

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Table 4.7.4 - A Communications Matrix [3]

4.7.5. Communications Deliverable Template
A table similar to Table 4.7.5 can be used to identify and control the
development and delivery of each communications deliverable.

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Table 4.7.5 - A Communications Deliverable Template [3]

 The audience could be team members, customers, business partners,

managers, executives, and/or professionals who need to understand
what deliverables are being developed and when they will be available.
 The messages column is defined by the specific communication this
audience needs to be informed of at the appropriate time (prior to the
completion of development or after delivery of the product).
 The media column indicates the type of communication (web, one-on-
one, one-on-group, presentation, phone, email, and so on) that would go
out to the specific audience.

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 The responsible party column identifies the person or organization that

will develop the deliverable. If it is a group, the individual leader of the
group should be identified by name.
 The date column defines the timing of each communication. Delivery
of these messages on a timely basis is necessary for the success of the
project.
 The owner column identifies the person who will provide direction and
approve the finished product. This person will sign off on the
communications plan before distribution. This individual approves draft
communications before they are released.

4.8. DEVELOPING THE PROCUREMENT PLAN

The procurement management process consists of six separate processes and related
activities involved in procuring goods and services needed for the project from external
sources:
4.8.1. Deciding whether to make the product or buy it
The reason for “making” a product in-house must be substantiated by facts and
figures. The facts should substantiate:
 Cost issues—have you covered everything?
 Intellectual property—how will you protect it?
 Proprietary and confidential processes—are they in place? Do you have
to obtain nondisclosure agreements?
 Complete control over the product—do you really have it? Or do you
really need it?
 Supplier unreliability or incompetence—how do you know? Have you
checked references and feedback from previous times this vendor has
been used?
 Volumes too small to attract a supplier—which suppliers have you
checked?
 Quality control—can you measure it against existing criteria for quality
or do you need to create a new quality control measurement?

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 Do you want to maintain a backup source?

 Do politics or the environment impact your decision?
Whenever you are outsourcing, you have decided to buy. The following
represents some reasons why organizations would choose to buy:
 You lack the required technical experience.
 The supplier is the leader in their field.
 The supplier can provide discounts.
 Strategic partnerships are possible.
 It costs less to buy than to make.
 You prefer one brand over another.

4.8.2. Conducting procurement solicitation process

Solicitation planning entails the writing of the various procurement documents
needed to support issuance of solicitations and developing evaluation criteria
that will be used to select the best value suppliers.
Knowing the estimated dollar value of the procurement will help you determine
what procurement solicitation process you will choose. The dollar values are
determined within your organization. Let’s look at the differences among
several types of proposals:
 Preferred Vendors or General
 Requests for Quotes
 Requests for Information
 Requests for Proposals

4.8.3. Acquiring vendors and subcontractors

A vendor is an external organization or individual providing products or
services under contract to the client or to the project performance group.
Vendors are also referred to as outside contractors or subcontractors.
A subcontractor is a group or individual providing products or services to the
project. Commonly, subcontractors are considered vendors.
4.8.4. Developing contractual statements of work

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Once it has been determined that you will outsource your work item(s), it is
time to prepare the statements(s) of work to enable the procurement process to
begin. A good CSOW helps you do that. The elements of a CSOW include but
are not limited to the following:
 Clear roles and responsibilities
 Location of work
 Security issues if necessary, such as access to proprietary information,
key codes, building access codes
 Milestones and deliverables with acceptance criteria
 Clear description of quantities, technical specifications, and quality
expectations
 Progress reports
 Payments
 Change control
4.8.5. Procurement Plan Template
The following represents a template that can be used to create your project
procurement plan:
 Section 1: Specifications
 Design specifications
 Performance specifications
 Functional specifications
 Section 2: Source Selection Package
 Bid documents (usually standardized)
 List of qualified vendors (expected to bid)
 Proposal evaluation criteria
 Bidder conferences and schedules
 How change requests will be managed
 Supplier payment plan
 Section 3: Procurement Actions
 What procurement actions the project team is authorized to execute
on its own without reference to the procurement department

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 What status reports the project team will require from the
procurement department on outsourced items
 How multiple providers will be managed
 How procurement will be coordinated with other aspects of the
project
 Purchasing decisions (including authority to commit)
 Make-or-buy decisions with supporting data
 Section 4: Procurement Documents
 Requests for quotes
 Requests for information (RFIs)
 Requests for proposals (RFPs)
 Section 5: Types of Contracts
 Firm fixed price (FFP)
 Fixed-price incentive (FPI)
 Cost plus fixed fee (CPFF)
 Cost plus incentive fee (CPIF)
 Cost plus percentage of cost (CPPC)
 Cost plus award fee (CPAF)
 Time and materials (T&M)
 Section 6: Contract Administration
 Change management
 Specification interpretation
 Adherence to quality
 Warranties
 Subcontractor management
 Production surveillance
 Waivers
 Contract breach

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Table - 4.8.1–Procurement Plan Template

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4.9. DEVELOPING THE QUALITY MANAGEMENT PLAN

Quality of a project is measured by whether the project meets or exceeds customer
expectations. The expectations, of course, are the product (deliverables), service, or
result the customer will receive throughout the project.
A project quality plan is simply a set of actions defined at the onset of the project that
will produce quality results during the execution of the project.
4.9.1. Quality Planning
There is a difference between planning for quality and creating the quality plan.
Planning for quality is the prerequisite to the quality plan.
There are nine basic steps in the quality planning process:
1. Review the documents for quality language.
2. Identify a quality team and leader.
3. Identify plan components and owners.
4. Negotiate specific quality assurance (QA) requirements.
5. Plan the QA and quality control (QC) steps for the project.
6. Educate the project team on QA/QC guidelines.
7. Incorporate QA/QC tasks into the project plan.
8. Get client sign-off.
9. Collect and report QA/QC data and re-plan if necessary.
4.9.2. Collect the Right Data
The development of the quality plan document begins with the collection of all
the information needed for the project. The data to collect will depend on what
product, service, or result is being delivered, and might include the following:
 Customer quality characteristics or product description Attribute
description
 Technical specifications with tolerance ranges
 Blueprint drawings
 Configuration diagrams
 Legal or regulatory guidance documents
 Standards documents
 Calendar

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 Measurement devices
 Any other relevant information from the scope statement or other
project documents to get started
4.9.3. Establish Valid Requirements
Indicators help you determine whether your processes are capable of meeting
your customer’s needs. An indicator is defined as a measure of meeting valid
requirements. Indicators are used to monitor both the effectiveness or condition
of a part of the work process (process indicators) and the quality of the output
or outcome of the process (quality indicators).
No matter what type, all indicators should have the following characteristics:
 Measurable - They can be expressed quantitatively (in time,
dollars, customer specifications, and so forth).
 Verifiable - Multiple, independent observers of the process should
be able to agree on the results obtained from measuring the process.
Accurate records should be kept so the measurements can be tracked
over time.
 Cost-effective - Indicators must be chosen with economy of time
and cost in mind. Ideally, data for indicators will be available from
existing sources and/or management information systems.
4.9.4. The Quality Management Plan
The quality management plan describes how the project management team will
execute the project while complying with policies, standards, or legal
requirements. The following represents a quality plan template that you may
find useful:
 Section 1: Quality Control Activities - Describe the planned
approach for verifying that the required quality has been obtained.
 Section 2: Project Management Quality Activities - Describe
activities such as compliance reviews, templates, and checklists.
 Section 3: Quality Assurance Checkpoints - Describe points in the
project when checks will be made to verify that the quality control

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activities and project procedures have been implemented

effectively.
 Section 4: Quality Roles and Responsibilities - Define the quality
roles of all participating in the project—for example, the functional
manager delivers the work product as described in the acceptance
criteria pertaining to that work product.
 Section 5: Work Products and Quality Characteristics - Describe
the work products for each deliverable and the set of attributes
assigned to them.
 Section 6: Quality Criteria - Describe the measurable properties of
work products that must be implemented to ensure that the level of
quality for a particular quality characteristic will be met.
 Section 7: Quality Contributors - Include project elements such as
skills, standards, tools, methods, and procedures that when applied
will contribute to achieving specified quality criteria and customer
satisfaction.
 Section 8: Quality Standards - When appropriate, include a
mapping of quality contributors and project procedures to required
quality standards such as the International Organization for
Standardization (ISO) or the American National Standards Institute
(ANSI).
 Section 9: Technical Specifications - These may be separate
documents, but include them in the quality plan.
 Section 10: Project Schedule - Attach a Gantt chart that shows the
activities and time scales necessary to implement quality tasks.
 Section 11: Assumptions - Define important assumptions on which
the quality plan is based.
 Section 12: Dependencies - Describe any external dependencies on
which the plan depends.
 Section 13: Risks - Describe the risks that will affect quality.

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 Section 14: Costs - Define the costs associated with implementing

this project quality plan, not including costs accounted for elsewhere
in the project management master plan.
 Section 15: Corrective Actions - Describe the procedures for
taking corrective actions for the problems encountered during
project execution.

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Table - 4.9.1– Quality Management Plan Template

4.10. DEVELOPING A CHANGE MANAGEMENT PLAN

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Change is inevitable. Just when you think the project plan is cast in stone, a change
pops up. You want to be able to do the following:
 Manage each request for change, in order to ensure that any new scope, cost,
and/or schedule of the project remains under control and has full traceability
 Make sure each request for change is assessed by all affected functional areas
 Make sure each assessed change request has a decision made (accepted,
rejected, or deferred) by the appropriate authority
The project manager drives the decision-making process and ensures that all the
stakeholders who might be impacted by the change are fully involved.
The change management process includes sub-processes to:
 Briefly assess each proposed change
 Analyze the potential impact of the proposed change on the project as a whole
 Decide how to proceed with a change request (CR) after its impact has been
analyzed
 Monitor the progress of approved changes until they are complete
Additionally, a change review board (CRB) or change control board (CCB) should be
engaged if the changes affect the project scope, the original schedule, and/or costs
beyond the authority level delegated to the project manager.

4.10.1. What is a Change Request?

A change request is a request to change some aspect of the project after it has
been approved and committed. Change requests may affect one or several of
the following:
 Work to be done or work in progress, with regard to schedule, solution
definition, deliverables, and so on
 Business plans or procedures, including project costs or acceptable risk
levels
 Obligations within a statement of work, or other formal agreements with
customers or vendors

4.10.2. The Change Request Process

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The change request procedure is launched when a change is requested after

specific deliverables are approved, and anytime after exiting the planning phase
if the change would affect the project’s schedule, scope, or costs. The end result
of the procedure is one of the following:
 The change is accepted and will be implemented.
 The change is rejected.
 The change is deferred.
Step 1: Submit, Receive, and Review the Change Request
In this step a change request is submitted and assigned a number.
The change request documents the need and rationale for the
proposed change.
Step 2: Conduct an Impact Analysis
The purpose of this sub-process is to provide the approving body
with the detailed information it needs to decide whether to
implement a proposed change.
Step 3: Make a Decision on the Change Request
The purpose of this step is to describe how to proceed with a CR
after impact analysis has been completed.
Step 4: Follow Escalation Procedures
The purpose of this sub-process is to describe what steps are
required when a change request accepted by a project team is outside
of the authority level for that team and project manager.
Step 5: Manage Change Orders
The purpose of this step is to manage the implementation of the
change requests by revising the project management plans and
procedures to reflect the approved change and periodically checking
the status of the associated CR.

4.11. DEVELOPING THE RISK MANAGEMENT PLAN

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Risk is often thought of as something negative, something that should be avoided.

Depending on whether one is a risk seeker or opposed to risk, opinions will often lead
to very different results.
4.11.1. Risk Identification
Identifying risk events is a major part of the up-front planning process. It
should be incorporated into the planning process before implementation
occurs.
Risk identification must occur as early in the project as possible, but is
typically the last of the subsidiary plans to be created before the overall
project plan is finalized.
These tools can be used for risk identification:
 Documentation reviews
 Information-gathering techniques:
 Brainstorming
 Delphi technique—another way of obtaining group input for ideas
and problem-solving. A question is posed and sent out for
answers. When the answers are returned, the results get distributed
to all who participated by a facilitator who sent out the original
questions. There may be voting involved, but in any case,
anonymity is the key with this process.
 Interviewing
 Root cause analysis
 Checklists analysis
 Assumptions analysis
 Diagramming techniques, such as cause and effect or flow
charting
 SWOT (strengths, weaknesses, opportunities, and threats)
analysis

4.11.2. Risk Categories

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o Organizational risks include cost, time, and scope objectives that are
internally inconsistent, lack of prioritization of projects, insecure funding,
and resource competition.
o External risks could include a shifting legal or regulatory environment;
labor issues; country risk; weather; unavailability of raw materials;
permitting difficulties; postulated events such as vandalism, terrorism, or
sabotage; or social and environmental issues.
o Other risks include the following:
 Personnel
 Human resource management
 Financial
 Operational
 Natural and man-made disasters
 Political
 Economic cycle/marketing
 Contractual/legal
 Requirements changes
 Design changes
 Task omissions
 Estimating and scheduling errors
 Technical errors
 Staff turnover, illness or death, unplanned vacations and leaves of
absence
 Late delivery of external deliverables
 Priority changes that result in loss of resources, including support
work
 Late approvals and acceptances
 Extended learning curves
 Unavailable or unreliable tools and methods
 Assumptions that turn out not to be true
4.11.3. Perform Qualitative Risk Assessment

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After you have identified the risks, the next process for risk management is
qualitative analysis. In this process, you want to determine the likelihood of
occurrence and the impact of the risk if it does occur.
 Sizing the Probabilities of Risk Likelihood
Project stakeholders must agree on the break points between
severity descriptors and percentages associated with them in order
to be consistent in their assessment regarding the likelihood that a
risk event will occur:
 Very low may indicate a 5% likelihood of occurrence or that
the risk event hasn’t happened within the past five years.
 Low may indicate a 20% likelihood of occurrence or that the
risk event has happened within the past five years.
 Medium may indicate a 40% likelihood of occurrence or that
the risk event has happened once or twice within the past 24
months.
 High may indicate a 60% likelihood of occurrence or that the
risk event has happened once within the past 12 months.
 Very high may indicate an 80% likelihood of occurrence or
that the risk event has happened on a regular basis over the
past 24 months.
 Sizing the Impact of Risk Events or the Amount at Stake
Impacts, or consequences associated with risk, are examined to
assess the consequences to project objectives. The following are
examples of using severity descriptors:
 Very low may mean having insignificant impact on the
project objectives (for example, 5–10% slippage on the
schedule and/or budget).
 Low may mean having minor outcomes that are unlikely to
have a permanent or significant effect on the project
objectives (for example, a 20% chance that materials won’t
arrive when planned).

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 Medium may mean having a potentially serious impact that

can be managed without major impact to the project
objectives (for example, a 40% chance that training will be
delayed by one month).

4.11.4. Plan Risk Responses

Risk-response planning is the process of developing responses to the risks
identified and analyzed in the previous steps. Possible responses to any risk
include avoidance, transference, mitigation (reducing the probability and/or
impact), and acceptance. After responses are developed, they should be
recorded on the risk register.

4.11.5. Create the Risk Management Plan

The following presents a Risk Management Plan Template:
 Section 1: Management Strategy
 Describe the risk methodology you used for the following:
 Risk identification
 Risk categories
 Risk probability and impact
 Risk priorities
 Risk assumptions
 Section 2: Risk-Response Plan
 Describe your response strategies (mitigation, sharing,
transference, and so forth) for each risk.
 Document the detailed response for each risk and whether it is
cost/schedule-effective.
 Describe what will happen if the risk event occurs.
 Describe triggers, including timeframes.
 Assign a responsible person for each risk response.
 Section 3: Risk Monitoring
 Describe what dates and actions were taken to mitigate risk.

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 Document whether those mitigation strategies were

successful. (Was there a contingency plan and was it sufficient
as planned?)
 Describe successive actions needed to overcome or reduce the
risk.
 Establish a review schedule.
 Validate assumptions.
 Review the risks
 Section 4: Risk Control
 Confirm that risk strategies are still valid.
 Take corrective action when risk events occur that are outlined
in the risk-response plan.
 Assess actual impacts in terms of time, cost, and quality.
 Ensure that the master project management and risk plan is
being followed.
 Ensure that the change control plan is being followed.
 Make revisions as needed

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Table - 4.11.–Risk Management Plan Template

4.12. CHAPTER SUMMARY

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This chapter presented the essential processes within the Planning Processes Group
which focuses on the development of the overall Project Management Plan. The usage
of Project Management software, in this case Microsoft Project was also given
particularly in the development of the WBS and the project’s schedule.
Planning a project can be as simple or elaborate as you make it but no matter what,
proper planning will decide the fate of a project.

4.13. ASSIGNMENT
You are required to perform the following, either individually or in a group:

Assignment 4.13.1
You have just determined the following major activities required for the
implementation of a new telephone system:
A: Conduct station reviews (3): Predecessor none
B: Obtain network requirements (2): Predecessor none
C: Create station designs (2): Predecessor A
D: Create network cable design (4): Predecessor B
E: Build out switch room (8): Predecessor B
F: Install patch panel in switch room (2): Predecessor E
G: Install hardware (3): Predecessor E
H: Install cable (2): Predecessors D, E
I: Tie down cable to patch panel (3): Predecessors F, H
J: Install, program, and test stations (2): Predecessors C, G, I
K: Conduct continuity tests (4): Predecessor J
L: Test software (1): Predecessor K
1. Using the precedence diagramming technique, draw the network diagram for
this project and calculate the ES, EF, LS, and LF of each of its activities.
2. Determine the critical path.
3. Show all float

Assignment 4.13.2

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Answer the given questions based on the given table below. Conduct further research
for your solutions in the PERT exercise.

1. Create the network diagram.

2. Determine the critical path.
3. Determine the variation for each task on the critical path
4. What is the total variation for the project?
5. What is the standard deviation of this project?
4.14. CASE STUDY
Toys with Us Ltd. would like to create a new toy for 5 to 9 year olds. They hire you to
be the Project Manager. You will prepare the first version of the project schedule for
the project named “TOYS.” The title of the Project should be “Toys for 5 to 9 year
olds.”
When preparing the schedule, you will use day as the planning unit with 4 workdays
per week that should start every Saturday. The Project must start on 1st of September
2015. To prepare the TOYS calendar, you must consider the schedule of the holidays
from 12th to 16th of September 2015. The project will have the following activities
(using activity ID M1 with increment of 2) and details:
M1. The first task should be Market Research with 10 days duration (5 days
for Surveys and 5 days for Research and Analysis). It should be done by the
System Analyst (SA) using laptop and printer.
M3. Product Design should start at the same time with Market Research with
duration of 15 days. Part of this task is Design, Concept Modules and

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Design Selection with 5 days for each task. The Designer (D) is the one in
charge of this task together with the System Analyst using laptops and
printer.
M5. After Market Research is Product Development that will be done by the
Product Developer (PD) together with the Designer within 20 days. Part of
this task is Prototyping. They will use desktop, scanner, printer and plotter.
M7. After Market Research, Product Design and Product Development, next is
Production Planning that should be done by you together with the
Designer and System Analyst. It will take 25 days for this task. Part of the
this task is Production Design that will take for 15 days and Production
testing that will take for 10 days. They need laptop, projector, printer and
scanner.
M9. After Product Development and Production Planning, the next is
Marketing will take 15 days to be done by the Account Executive (AE). In
this task includes Marketing strategy (3 days), Marketing Plan (5 days) and
Marketing Collateral (7 days doing brochures, advertising and
commercials)
M11. Project Management is next after Product Development, Production
Planning and Marketing and it should be your main task and will take 30
days using laptop, printer and scanner.
A. Defining the Project schedule.
B. Creating the calendar, setting workdays and holidays.
C. Assign Finish to start relationship between activities in the PERT View.
D. Creating e a resource table and assigning the resources to the Project activities.
E. Organize the Work Break Structure.
F. Draw the PERT diagram indicating start to end activities.
G. Identify the critical path from the PERT diagram.
H. Compute the total float/slack for each activity.
I. Compute for the total project float.
4.15. HANDS-ON
You are required to perform the following, either individually or in a group:

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If you are using Microsoft Project, see the Microsoft Project Laboratory Manual and
perform the following:
4.14.1 Laboratory Work : Outlining (Creating the WBS)
4.14.2 Laboratory Work : Estimating Duration
4.14.3 Laboratory Work: Using WBS Codes
If you are using Primavera Project Planner, see the Primavera Project Planner
Laboratory Manual and perform the following:
1.2 Laboratory Work: Estimating Duration
1.7 Laboratory Work: Entering the WBS and Using WBS Codes

4.16. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th
Edition, 2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP,
MCT, Sybex
3. Project Manager Street Smarts, 2011 by Linda Kretz Zaval, PMP and Terri
Wagner, PMP, Wiley & Sons.
4. http://nptel.ac.in/courses/112107142/30
5. Primavera Laboratory Manual, Higher College of Technology, Muscat
6. http://www.projectmanagementdocs.com/project-planning-templates/human-
resource-plan.html
7. http://communicationplanstoday.blogspot.com/2011/06/no-communication-
plan.html
8. http://www.pcj.com/dnn/Portals/0/Documents/Procurement%20Plan%202013
-2014%20Upload.pdf
9. http://webcache.googleusercontent.com/search?q=cache:ejpiOD8pAi0J:www.
egovernment.tas.gov.au/project_management/supporting_resources/templates/
medium_to_large_projects/Quality_management_plan_template_and_guide_f
or_medium_projects.dot+&cd=4&hl=en&ct=clnk

Chapter 5-PROJECT EXECUTION

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5.1. INTRODUCTION
This chapter deals with the processes needed to create the Project Plan. The Executing
Process Group consists of those processes performed to complete the work defined in
the project management plan to satisfy the project specifications. This Process Group
involves coordinating people and resources, as well as integrating and performing the
activities of the project in accordance with the project management plan
5.1.1. Objectives
The objectives of this Chapter are:
 Describe how to manage and directing project plan.
 Apply quality management plan and assessment to the project.
 Determine and perform managerial process and skills in holding
project team.

5.1.2. Outcomes
Upon completion of this chapter, the student will be able to:
 Explain the concepts of Project Management and Knowledge Areas.
 Analyze organization structures.
 Analyze concepts of Quality Management, Assurance and Control.
 Analyze risks and manage them.
 Analyze project execution and manage it.
 Evaluate set-targets, deliverables and conflict resolution documents.
 Analyze team management.

5.1.3. Terminologies
 Seller - A provider or supplier of products, services, or results to an
organization.
 Risk - An uncertain event or condition that, if it occurs, has a positive
or negative effect on a project’s objectives.

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 Resource - Skilled human resources (specific disciplines either

individually or in crews or teams), equipment, services, supplies,
commodities, material, budgets, or funds.
 Quality - The degree to which a set of inherent characteristics fulfills
requirements.
 Contract - a mutually binding agreement that obligates the seller to
provide the specified product or service or result and obligates the
buyer to pay for it.
5.2. OBTAINING AND MANAGING PROJECT RESOURCES
Project resources are the most valuable commodity on your project. Obtaining and
managing resources includes the following tasks:
 Acquire resources
 Activate resources
 Orient and assimilate your team
5.2.1. Acquire Resources
There are nine steps to this process:
1. Review corporate guidelines for recruiting and staffing procedures,
particularly regarding Equal Employment Opportunities (EEO)
guidelines.
2. Review candidate résumés and compare to the staffing plan to see
whether an interview should be conducted.
3. Conduct the interview.
4. Complete an interview assessment.
5. Review assessments and determine whether the candidate meets your
requirements.
6. Contact the sourcing organization and provide feedback.
7. Plan for new staff training, if needed.
8. Update the resource and staffing plan.
9. Update the organizational chart.
5.2.2. Activate Resources

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As the project progresses, staffing continues in order to extend existing

resource commitments or to acquire replacement staff, and is dependent on
the recruiting and procedures of the delivery organization. This process has
six steps:
1. Review the existing resources and future staffing requirements.
2. Review constraints such as budget, specific staff providers only,
citizenship requirements, availability for travel, and so on.
3. If external resources are needed, check the current labor pool.
4. Develop a staff requisition document in compliance with corporate
standards and include special skill requirements if needed.
5. Evaluate trade-offs between numbers of personnel available and needed
skills.
6. Agree on a timetable for completion of recruitment processes

5.2.3. Orient and Assimilate the Team

The purpose of this process is to provide all new members of the project team
with a clear understanding of the project, their roles within the project, and
the facilities they will need to perform their duties on the project. This process
is done in six steps:
1. Review the goals and objectives of the project, including information
about the client, the project management system, technical approach,
deliverables, and so on with the new team member.
2. Review the detailed project plans that they are part of.
3. Ensure that appropriate facilities or office space and tools needed are
supplied (either by the functional manager or the project office).
4. Assign and review the work package with the new member.
5. Confirm work assumptions and gain commitment from the new
member.
6. Review the team rules that have been established.

5.3. STEPS IN PROJECT EXECUTION

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5.3.1. Build Deliverables

The first and most important step in the execution phase is the construction of
each of the project deliverables specified within the project specified within the
project charter. During this activity, a detailed design of each deliverable is
created and the deliverables are physically constructed and tested. The
deliverables are then reviewed by the Quality manager and the customer to
determine whether they meet the quality criteria and the acceptance criteria. If
all of the criteria have been met, the deliverables are signed off on by the
customer, ready be handed over to the customer environment. After all the
deliverables have been produced and signed off by the customer, the project is
ready for closure.
5.3.2. Monitor and Control
Alongside the build deliverables activity, the project manager performs a suite
of management processes to monitor the control the time, cost, and quality of
each deliverable being produced as follows:
5.3.2.1. Perform Time Management
This is the process of monitoring and controlling the time spent by
staff on the project. Timesheets may be used to track and record time
spent.
5.3.2.2. Perform Cost Management
Ensuring the delivery of projects within budget is always a difficult
task. To monitor and control cost effectively, a cost management
process is put in place to identify project costs and to record the rate
of consumptions of the project budget.
5.3.2.3. Perform Quality Management
To ensure that the project produces deliverables that meet customer
requirements, it is necessary to use a formal quality management
process. This process involves quality assurance and control

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activities as specified in the quality plan to manage a project’s level

of quality.
5.3.2.4. Perform Risk Management
While managing time, cost and quality can be full time job, another
key process within project management is the mitigation of project
risks. To perform risk management on a project, you need to monitor
and control project risks by taking the steps necessary to prevent risks
and also minimize the impact on the project should those risks occur.
5.3.2.5. Perform Issue Management
Unforeseen issues often arise that impact the ability of the project to
meet its stated objectives. The key to success is having a process in
place to review and resolve issues before they severely impact on the
project.
5.3.2.6. Perform Procurement Management
Project often require goods and services from external suppliers to
help them meet the objectives sets. In these situations, a procurement
management process is put in place to monitor and control the
performance of project suppliers.
5.3.2.7. Perform Acceptance Management
You may deliver a suite of top class deliverables, but unless the
customer accepts that your deliverables meet their requirements then
the success of the project will be compromised. To gain the
customers approval of each deliverables, acceptance reviews should
be undertaken as part of an acceptance management process.
5.3.2.8. Perform Communications Management
Everyone on the team needs to be kept regularly informed of the
progress of the project. By completing the communications activities
listed in the communications plan, you will ensure that every
stakeholder within the project receives the right information at the
right time.

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5.3.3. Perform Phase Review

With all your deliverables signed off on by the customer, you are
almost ready to close the project. But first, a phase review is
undertaken to ensure that all of the required activities in the execution
phase have been completed and the project is ready to proceed to the
closure phase.
5.4. DIRECTING AND MANAGING PROJECT EXECUTION
Efficient execution of the project relies on the direction and leadership of the project
manager, the support of senior management, resource managers, and the commitment
of team members, but mostly relies on the project manager.
Directing and managing project execution includes the following tasks:
 Use your expert judgment
 Use the project management information system to execute the tasks on your
project
 Execute the communications plan
5.4.1. Use your expert judgment
You were chosen to be a project manager because you have proven that you
have the leadership and managerial expertise to bring the project to fruition.
This, along with your team members and the technical expertise they provide,
is a great start in managing project tasks. Other avenues of expertise are also
available to you and your team, including your in-house experts, outside
consultants, and your stakeholders, as well as professional and technical
associations. Use other experts when you need them, and your expertise will
improve exponentially.

5.4.2. Use the Project Management Information System (PMIS) to

execute the tasks on your project
A PMIS provides you with an information collection and distribution process
for all of your project management documents, access to intranet or Internet

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sites, scheduling software, and configuration management databases, and so

forth.
In the absence of an active PMIS, you’ll have to create your own project
control book to manage the project. Let’s take a look at some tools that may
be useful to you as you create your project control book and manage the
project:
o Work Authorization Form
Most of your resources are internal, but for those who are external to
the project, you must provide a notice to proceed. Figure 5.4.2.1
represents a work authorization form.

Figure 5.4.2.1 - Work Authorization Form [3]

o Extra Work Authorization Form
You want to be sure that suppliers and vendors understand that work
not approved is work not paid. Figure 5.4.2.2 represents a form for
extra work authorization

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Figure 5.4.2.2 - Extra Work Authorization Form [3]

5.4.3. Execute the Communications Plan
The following things are to be done in the execution of the Communications
Plan:
 Information Distribution
A considerable amount of information must be distributed during a
project. You’ll create project reports that describe the status of the
project, the status of issues, approved changes, and lessons learned
during the time cycle for the reports.
 Performance Reporting
Performance reporting includes the processes of collecting and
disseminating performance information. This includes status
reporting, progress measurement, and forecasting.
o Status Reporting
Status reporting describes where the project now stands
since the last status report. The elements of a comprehensive
status report should include these elements:
 Status summary of the health of the project.
 Accomplishments for the report period, including the
following:

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 Milestones achieved
 Milestones planned but not achieved
 Deliverables completed
 Work packages planned but not completed
 Accomplishments planned for the next period
 Milestones to be achieved
 Deliverables to be completed
 Summary of issues
 Risks
 Changes
 Action items

o Progress Reporting
Progress reporting describes what the project team has
accomplished since the project began. These are elements of
a progress report:
 Progress of deliverables identified in the work
statement
 Comparisons of expenses to the expected budget to
date
 Effectiveness of the project to date
 Current challenges in completing the project
 Quality assessment
 Risks

 Communicating with your Sponsor

Other than friendly chatter, there are typically three other types of
communications you will have with your sponsor:
o Incident communications-Occurs if there is a complaint
from a client or a problem that needs solving with the
sponsor’s assistance.

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o Informal communications-You will want to meet with the

sponsor on a regular basis to informally discuss the project
(such items as overall state of the project, progress, and
performance, as well as successes).

o Formal communications-This is typically done in report

form and includes the following:
 Summary of accomplishments for the current period
and planned accomplishments at the next reporting
period at the milestone and deliverable level
 Summary of cost and schedule information
 Review of change orders, issues, and risks
 Issues or risks that impact the sponsor and require
the sponsor’s involvement or support
 Discussion of sponsor concerns
 Identification of opportunities and threats related to
actions requested by the sponsor

 Communicating with the Project Team

The three types of communications you have with your sponsor will
be the same for your project team. During incident
communications, again you will assess the degree of urgency
associated with the incident.
The second type is informal communications. You will meet with
the project team (face to face or electronically) on a regular basis
(daily, weekly, monthly, as appropriate) to informally discuss the
project.
Formal communications are the third type of communication. You
should create pre-agreed-upon status reports.

5.5. IMPLEMENTING THE QUALITY MANAGEMENT PLAN

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Implementing the quality plan begins with quality assurance, which is a proactive
process that helps execute the project and delights the customer. Quality assurance
begins when you begin the work on the project. The Quality Assurance Plan should be
multifunctional (so the plan can be repeated elsewhere in the organization) and
prevention oriented.

5.5.1. Details
Quality assurance is preplanned. It is an integral part of your Project Quality
Management Plan; with predetermined check steps that you have placed within
your project to ensure that the project fulfills its goals.

5.5.2. Data Quality Definitions

Whenever you are collecting data about anything, be sure that they conform to
the following:
 Accuracy is the most important element when it comes to data. With
accurate data, you can validate your requirements.
 Reliability is ensuring that the data is consistent every time. You have
tested the data using the same processes and come up with the same results
each time.
 Completeness is defined as being satisfied with the end result and knowing
that there is nothing more you need to do.
 Precision is having a degree of exactness based on certain predetermined
measurements.
 Data are considered timely when they are up-to-date and when the
information is available on time. Timeliness can be affected by the rate at
which an item is updated, the rate of change, and when the information is
actually used or required.
 Integrity is when data are protected from deliberate bias or manipulation
for political or personal reasons.

5.5.3. Cost of Quality

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Cost of quality refers to the total cost of all efforts to achieve product or service
quality, such as reworking.
5.5.4. Cost of Conformance
Prevention and appraisal activities are considered a cost of conformance to
quality. Design reviews, training, and quality planning are also associated with
the costs of prevention activities.
5.5.5. Cost of Nonconformance
Joseph Juran, a noted quality expert, spoke often of the cost of not conforming
to quality, referring to the impacts of internal and external failure. Internal
failures are those that occur before leaving the organization and include
scrapping, reworking, repairing, and evaluating defects.
5.5.6. Quality Audits
One of the quality assurance tools is a project audit. A project audit can be
performed randomly or at specified times within each phase of the project. The
intended outcome of the audit is to confirm the following:
 The planned project quality requirements are met.
 The products are safe and fit for the customers’ use.
 All laws and regulations have been followed.
 Data systems to track, measure, and report quality attributes and quality
characteristics are accurate and adequate.
 Any variances identified during quality checks are addressed by
appropriate corrective action.
 Any opportunities for continuous improvement are noted for future
action.

5.6. PERFORMING QUANTITATIVE RISK ASSESSMENT

The risk management plan is a living document throughout the project life cycle. Some
risks will not happen; others happen that you did not plan for. Use your risk register to
document new risks and what you’ll do with identified ones.
5.6.1. Perform Quantitative Risk Analysis

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The results of your qualitative analysis determined which risks you’ll use in this
process. Normally you would work on risks that were qualified as high impact
and high probability of occurrence. Any risk that is high probability and high
impact should be treated with a sense of urgency.
5.6.2. Interviewing
Follow these steps to conduct a successful data collection interview:
1. Interview project stakeholders and subject matter experts in order to
quantify the probability and consequences of risk on the project
objectives.
2. The project manager must then define the benefits and boundaries
of the project and document the rationale of the risk ranges
discovered during the risk qualification process.
3. The project manager must prepare for the risk interview by
performing triage on key risk elements in order to establish risk
ranking.
4. Set up a meeting with the subject matter experts and those who
planned and who will manage the work.
5. Conduct the interview. Everyone’s views are valuable but do
challenge the ranges they may give you.
6. If the relationship between risk and probability is uncertain, then
you as the project manager may choose to perform three-point
estimating as you did while using the Program Evaluation and
Review Technique (PERT) in Phase 2 for project tasks.
5.6.3. Sensitivity Analysis
Sensitivity analysis is a simple tool that investigates how estimated
performance varies with changes in the pre-identified key assumptions that are
based on the project objectives. Generally, five steps are involved in creating a
sensitivity analysis:
1. Design the experiment.
2. Assign ranges of variation to input factors.
3. Generate the input vectors through the design.

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4. Create the corresponding output distribution.

5. Assess the relative importance of inputs.

5.7. CONDUCTING PROCUREMENT

Procurement procedures will impact how many suppliers will be approached in a given
procurement event, in what manner the agency will go to the market, and the type of
contract that is intended to be established. These factors must be considered before you
can actually choose a vendor or contractor.
5.7.1. Obtain Seller Responses
In this phase, the process of obtaining seller responses involves announcing the
opportunity to respond to a buyer’s request (advertising, Internet, and so forth),
as well as holding bidder conferences where questions are asked and responded
to by an audience of all potential bidders.
 Bidder Conferences
Bidder conferences are held before potential sellers submit their
proposals.

 Advertising
Advertising or publishing a request for information (RFI) in trade
journals, newspapers, or other industry publications expands exposure
to potential bidders.
 Internet Search
Many commodities can be obtained over the Internet for a firm fixed
price. However, if the commodities are highly complex or are associated
with high risk, you should not use the Internet because of the costs
involved.
5.7.2. Select the Seller
The process of selecting the seller involves determining the best-value
contractors by considering price, schedule, technical issues, and other factors.
The project manager works closely with the procurement officer (buyer) to

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evaluate proposals, review independent estimates, and score proposals against

evaluation criteria.
 Proposal Evaluation Techniques
There are several ways to evaluate a proposal. A weighting system is
one method for quantifying qualitative data to minimize the effect of
personal prejudice on source selection. There are four steps to this
process:
1. Assign a numerical weight to each of the evaluation criteria.
2. Rate the prospective sellers in each criterion with a raw
score.
3. Multiply the rate score by the weight given that proposal
element.
4. Total the resultant products to compare an overall score.
Table 5.7.2 looks at weighted scores of vendors based on predetermined
selection criteria.

Table 5.7.2 - Choosing Vendors via Scoring Model [3]

5.7.3. Award Contract

Procurement negotiations are used to clarify and gain mutual agreement on
the elements and requirements of the contract prior to signing the contract. Final
contract language should include all terms and agreements that were negotiated.
Planning for negotiations requires several steps:

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1. Develop objectives. If you are the buyer, what is the maximum you are
willing to pay? If you are the seller, what is the minimum you are willing
to accept?
2. Assess your opponent to see what motivates them. Is your opponent
interested in profitability, keeping people employed, developing a new
technology, or wanting to use your name for future reference?
3. Describe your strategy and tactics. Know before you begin what
techniques you’ll use to swing your opponent to your point of view.
4. Assemble your facts. Do your financial and other homework! Your
opponents are doing their homework about you and your business, and
will use these facts to their favor.
5. Conduct a complete price/cost analysis. That way, you know what
the contract items should cost before committing to a fee or type of
contract.
6. Arrange the details of the negotiations. Specify where the
negotiations will occur, the type of table to be used (round or square),
who will face the windows, and so on.

There are typically five stages of negotiation for project management:

 Orientation - Introductions are made.
 Exploring - Issues are searched and identified.
 Bargaining and Decision Making - This is where bargaining occurs
and concessions are made.
 Resolution - The two positions are summed up, and final concessions
are made and documented.
 Closing - The ultimate goal; this ensures that both parties have identical
agreement and marks the end of negotiations.

5.8. MANAGING THE PROJECT TEAM

You want to improve team performance by improving individual competencies and
team interactions that enhance the culture of the team.

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5.8.1. Team Management and Development Tools

There are a variety of tools that will assist you in developing and managing your
team such as:
 Ground rules
 Team building
 Training
 Coaching
 Abraham Maslow’s hierarchy of needs
 Frederick Herzberg’s hygiene theory
 Theory X and theory Y
 Expectancy theory
 Achievement theory
 Types of power
 Performance problems
 Rewards and recognition
 Conflict resolutions

5.8.2. Team Building

It takes a while for a team to start working as a team—even if individually, team
members are superior workers. A high level of conflict exists at the beginning
of a project’s life cycle. In 1965, psychologist Bruce Tuckman theorized that
teams have to go through five stages before they truly become a team: forming,
storming, norming, performing, and adjourning.
Let’s take a closer look at these stages:
 Forming - People are usually guarded, polite, reserved, and impersonal.
 Storming - People exhibit infighting, chaos, conflict, opting out, turf
battles, cliques, and power plays.
 Norming - People are organized, developing skills, solving problems,
and resolving conflicts.

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 Performing - People are cooperative, productive, resourceful, and

capable.
 Adjourning - People exhibit a sense of loss and anxiety at having to
break up.
As the project manager, you must allow time for these stages to occur. Forming
and storming do not take as long as you might think, and soon you’ll see
norming and performing. Table 5.8.2 represents a team-building plan.

Table 5.8.2 - Sample Team Building Plan [3]

5.8.3. Rewards and Recognition
There are differing schools of thought about rewards and recognition systems.
Here are a few suggestions for consideration:
 Rewards must be flexible enough to enable the teams to decide how
their team members will be rewarded
 It can be demoralizing to promote teamwork and continue to reward
individuals.
 Define goals that can be achieved through collaboration as a team as
opposed to a group of people acting as individuals in a cooperative
manner.
 Team behaviors that are expected must be explicitly communicated to
all those affected and an explanation given as to what defines success
and how those behaviors will be recognized and rewarded.

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 Be sure that team members perceive that the recognition and rewards
are fair.
 Some of the most career-enhancing rewards are nonfinancial in nature.
 Whatever choice is made, recognize and reward good performance.
5.8.4. Conflict Resolution
Conflict is a natural occurrence in the project management experience.
Resolving conflicts doesn’t come naturally to most people. You’ll perform
conflict resolution many times in your project, and there are several approaches
to conflict:
 Forcing or dictating a solution pushes one viewpoint at the expense of
others and offers only win/lose solutions. Hard feelings may come back
in other ways.
 When you avoid conflict, you withdraw or retreat from the actual or
potential conflict situation. It does not solve the problem.
 When you accommodate conflict, you attempt to smooth over the
situation. You emphasize areas of agreement rather than areas of
difference, but this provides only short-term solutions.
 When you compromise your position, you are looking for bargains for
solutions that bring a degree of satisfaction to all parties. This provides
a definitive resolution.
 You can collaborate and reach consensus by incorporating multiple
viewpoints and insights. This leads to consensus and commitment and
provides long-term resolution.
 Confronting the situation treats conflict as a problem to be solved by
examining alternatives and requires give-and-take and open dialogue.
Confrontation provides the ultimate resolution.
5.9. CHAPTER SUMMARY
This chapter has covered the important processes that make up the Executing Process
Group. The execution of project activities to achieve the deliverables must be
performed based on the plans outlined in the planning stage in accordance with the

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guidelines presented in this chapter. As execution of the project goes on, certain
changes and adjustments are made and quality, risks and team harmony must be taken
into account.
5.10. ASSIGNMENT
You are required to perform the following, either individually or in a group and present
your findings in a report to be submitted to the Course Lecturer:
Answer the following questions:
 What are the challenges associated with acquiring resources?
 What could happen if a new team member is not oriented to the project
 As a project manager, what should you do when you are assigned to a project but
feel you don’t have the expertise to do the work?
 What should a team member do when it is clear the assigned project manager
simply doesn’t have the skills needed to manage the project (for example, the
project is behind schedule, meetings have become finger-pointing sessions, or the
project manager doesn’t return calls and sits in the office all day with the door
shut)?
 List at least five expectations a project sponsor may have of you (the project
manager) and five commitments a sponsor will make to you (the project manager).
 Describe items that are considered a cost of quality and items that are considered a
cost of nonconformance.
 What is the purpose of a quality audit?
 Why is a bidder’s conference important?
 When should a bidder’s conference take place?
 Who should conduct the bidder’s conference and why?
5.11. CASE STUDY
Higher College of Technology would launch the IT Open Day on 6th of March 2015.
They assigned you as the Project Manager of this event. The project charter and
contract had been signed. The following are the activities to be undertaken in
preparation for the launching of IT Open Day:

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a. The first task is collecting inputs for Project charter (5 days). Part of this task is
Project Statement of Work. You are the person responsible for this task.
b. Identify the stakeholders will start at the same time with collecting inputs for
Project charter that will take 10 days and should be done by Portfolio Manager.
c. After collecting inputs for project charter and identifying the stakeholders, the
next task is assessing the tools and techniques. This task should be done by
Project Sponsor and Project Manager. It will take 10 days to finish the task. Part
of this task is to provide expert judgment.
d. After assessing tools and techniques, the next tasks are: creating charter
template (5 days), at the same time with creating charter template is project
justification (3 days) and also project approval requirements (5 days). The
person responsible is the Project Manager, Project Sponsor and the customer.
e. After creating charter template, project justification and project approval, the
next task is setting up the project management office. Part of this task is to
locate for venue which will take 15 days and should be done by the portfolio
manager.
f. Defining roles and responsibilities should be the next task after identifying the
stakeholders, and setting up the project management office. It should be done
within 20 days and the person in charge is the Project Manager and Project
Sponsor.
In one of your team meetings, it has been reported that there’s a lot of issues and it is
found that many of the issues could have been prevented had a simple review checklist
been used. You prepare a code review checklist and ensure the code is reviewed as per
the checklist. With the project done you decide to communicate the completion details
and closure of contracts.
1. What type of communication (Incident, Formal or informal) are you going to use
to communicate the completion details and closure of contracts?
2. Analyze the above scenario and categorize if your action is preventive or
corrective. Justify your answer.

5.12. HANDS-ON

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You are required to perform the following, either individually or in a group:

If you are using Microsoft Project, see the Microsoft Project Laboratory Manual and
perform the following:
5.10.1 Laboratory Work: Assigning Resources
If you are using Primavera Project Planner, see the Primavera Project Planner
Laboratory Manual and perform the following:
1.5 Laboratory Work: Assigning Resources

5.13. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th
Edition, 2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP,
MCT, Sybex
3. Project Manager Street Smarts, 2011 by Linda Kretz Zaval, PMP and Terri
Wagner, PMP, Wiley & Sons.
4. Method 123 Project Management Methodology-Professional (MPMM)
5. Primavera Lab Manual, Higher College of Technology, Muscat

Chapter 6-PROJECT MONITORING AND CONTROLLING

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6.1. INTRODUCTION
The Monitoring and Controlling process group involves taking measurements and
performing inspections to find out whether there are variances in the plan. If you
discover variances, you need to take corrective action to get the project back on track
and repeat the affected project Planning processes to make adjustments to the plan as a
result of resolving the variances.
6.1.1. Objectives
The objectives of this Chapter are:
 Explain how to manage and control the project.
 Determine and identify the suitable management direction at the project
execution.
 Determine how to control possible risk during the execution of the
project.
6.1.2. Outcomes
Upon completion of this chapter, the student will be able to:
 Explain the concepts of Project Management and Knowledge Areas.
 Analyze a plan using methods and tools including Establish WBS, time &
effort estimates, resource allocation and scheduling.
 Analyze concepts of Quality Management, Assurance and Control.
 Analyze risks and manage them.
 Analyze project execution and manage it.
 Evaluate set-targets, deliverables and conflict resolution documents.
 Use case studies for project management.
6.1.3. Terminologies
 Acceptance Criteria. Those criteria, including performance
requirements and essential conditions, which must be met before
project deliverables are accepted.
 Control. Comparing actual performance with planned performance,
analyzing variances, assessing trends to effect process improvements,

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evaluating possible alternatives, and recommending appropriate

corrective action as needed.
 Identify Risks [Process]. The process of determining which risks may
affect the project and documenting their characteristics.
 Corrective Action. Documented direction for executing the project
work to bring expected future performance of the project work in line
with the project management plan.
 Preventive Action. A documented direction to perform an activity
that can reduce the probability of negative consequences associated
with project risks.

6.2. MONITORING AND CONTROLLING PROJECT WORK

During the work of monitoring and controlling you can see the progress of a project,
which is determined by comparing the actual work results against the project plan. In
this task you will monitor and control changes, verify that deliverables have been
completed and accepted, and monitor and control scope, schedule, cost, and quality.

6.2.1. Integrated Change Control

Integrated change control is the process of managing changes to the project
plan, project documents, and organizational process assets, as well as
monitoring changes and seeing that the approval process is followed. To
minimize the number of changes, make sure the questions in Table 6.2.1 are
asked and answered by a responsible party before asking for a formal change
request.

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Table 6.2.1 Change Control Responsibilities [27]

6.2.2. Scope Control

Scope control requires adjustments to cost, schedule, or other project
objectives. A baseline change usually requires approval from the change
control board. Work that affects the scope and is not approved falls under the
term scope creep. Scope creep is deadly to the project. Failure to manage scope
creep will cause unauthorized schedule delays and budget overruns.
6.2.3. Schedule Control
Schedule control is all about managing the schedule baseline. In the Planning
Phase, you learned about fast-tracking and crashing a project to stay within the
schedule baseline, but if schedule changes are approved, the schedule baseline
changes. At every status meeting you should emphasize that the project needs
to stay on schedule.
6.2.4. Cost Control
Keeping the budget under control can happen only if you know exactly where
you stand on the budget. Elements affected by cost include the following:
 Controlling changes to the project budget
 Cost estimating
 Project cash flow

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 Company cash flow

 Direct labor costing
 Overhead rate costing
 Others, such as incentives, penalties, profit-sharing, and the like

6.2.5. Ensuring Project Deliverables Conform to Quality Standards

To make sure that the quality process is being followed, the acceptance criteria
of a deliverable should include the following:
 Content properties (documents, software, and so on)
 Physical properties
 Ownership properties (trademarks, patents, and the like)
All team members are responsible for taking whatever action is necessary to
keep the variances within acceptable limits.

o Requirements Verification and Validation

The difference between verification and validation is simple:
 When you verify a requirement you ask the question “Are you
building the product right?” Verification looks at quality
checkpoints along the way to see that standards are correct for the
level of quality needed.
 When you validate a requirement you ask the question “Are you
building the right product?” Validation means that the goal has been
met and the customer is delighted.

o Requirements Traceability Matrix

A requirements traceability matrix (RTM) is used to make sure that all
stated requirements can map back to system components or deliverables to
fulfill those requirements. Table 6.2.5 illustrates a high-level traceability
matrix. In this example, the “U” represents the user and the “S” represents
the system.

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Table 6.2.5 - Requirements Traceability Matrix [27]

o Collecting Metrics
One of the outputs of the plan quality process is quality metrics. You define
what you want to measure to analyze performance. The following is a list
of metrics that could be collected on your project. This list is not exhaustive
but may help provide additional ideas for your project:
 Cost
 Schedule
 Productivity
 Quality of deliverables
 Quality of project

o Quality Control
Quality control in project management requires that the project manager use
appropriate tools at predetermined intervals in order to meet project goals.
These tools include the following:
 Cost/benefit analysis
 Control charts
 Benchmarking
 Design of experiments
 Statistical sampling
 Flowcharting
 Cause and effect diagrams

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 Histograms
 Pareto charts
 Run charts
 Scatter diagrams
 Inspections

6.3. MANAGING RISKS

Managing risks is something you’ll do throughout the life of the project. You need to
manage them as soon as they occur—with help from your team, of course. The first
thing you have to do is document the risk event. Table 6.3.1 shows a sample of a risk
event worksheet that can be used to manage the risk event. This table is using a
qualitative approach to determine probability and impact.

6.3.1. Preventive and Corrective Action

Risks do occur during the execution phase and have to be controlled. When you
are managing a risk event that was not previously identified, you may think of
ways the risk could have been avoided.
 Preventive action should be documented as part of your lessons
learned.
 Corrective action is simply correcting the situation after it has been
identified and updating your risk register to include the risk and what
you did, to prevent it from happening again.

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Table 6.3.1 - Risk Event Worksheet

6.4. CHAPTER SUMMARY

This chapter presented focused on the Monitoring and Controlling Process Group.
Monitoring and controlling project work and risk are two critical processes that ensure
that the project is right on track. Integrated control, quality and risk management
techniques were discussed which provides basic foundational knowledge for this
project management stage.

6.5. ASSIGNMENT
You are required to perform the following, either individually or in a group and submit
your answers to the Course Lecturer:
Assignment 6.5
You can answer the following questions through the use of the Internet or other Project
Management books. Present a scenario or use diagrams to support your answers.
1. What information can a fishbone diagram give you?

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2. A histogram is used for what purpose?

3. What is a Pareto chart?
4. What quality control tool is used when data are displayed on a graph that shows
observed data in a time sequence in order to see the output or performance of a
manufacturing or other business process?
5. When should a scatter diagram be used?
6. Describe the Taguchi method (design of experiments). Is this a good tool to use
in a society where change is constant? Why or why not?
7. List two metrics that can be taken during a project in each of the following
categories:
a) Cost
b) Schedule
c) Productivity
d) Quality of deliverables
e) Quality of the project

6.6. CASE STUDY

SamPhone Company, a leading manufacturer of handheld computers, is currently in the
process of developing its next generation device, the model SP175x. A key feature of the
SP175x is its color display. According to the original project schedule, the SP175x is to
be released 1 month from now. Because the amount of time required to convert the
existing software to capitalize on the color display was significantly underestimated, the
project has fallen behind schedule. The project manager estimates that without additional
resources, the development project will be 3 months late. He has also estimated that
increasing the project’s budget of 3 million RO by 30 percent would permit the project
to be completed on schedule. The added budget would be used primarily to staff the
project with additional software engineers. If released on schedule, first quarter demand
for the SP175x is forecast to be 200,000 units at an initial price of 450RO. Demand data
for similar products suggest that unit sales will increase 5 percent per quarter over the
product’s 3-year life. Despite pricing pressures in the market, accounting SGV data
indicate that SamPhone is able to maintain a 20 percent contribution margin to profit and

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overhead through continuous process improvements and efficiencies accruing from

producing in larger volumes. Answer the following:
1. What has a larger impact on SamPhone’s profits, delaying the SP175x’s introduction
by 3 months or increasing the project’s budget by 30 percent?
2. Are there other factors you would consider in addition to profit?

6.7. HANDS-ON
You are required to perform the following, either individually or in a group:
If you are using Microsoft Project, see the Microsoft Project Laboratory Manual and
perform the following:
6.6.1. Laboratory Work: Setting Baseline in Tracking Gantt View
6.6.2. Laboratory Work: Resetting the Baseline
If you are using Primavera Project Planner, see the Primavera Project Planner
Laboratory Manual and perform the following:
5.1 Laboratory Work: Setting Baselines in Tracking Gantt View
5.2 Laboratory Work: Resetting the Baseline

6.8. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th Edition,
2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP, MCT,
Sybex
3. Project Manager Street Smarts, 2011 by Linda Kretz Zaval, PMP and Terri Wagner,
PMP, Wiley & Sons.
4. Primavera Lab Manual, Higher College of Technology, Muscat
5. Universitas Gadjah Mada, for case scenario

Chapter 7-PROJECT CLOSURE

7.1. INTRODUCTION

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This chapter deals with the basic tasks needed to perform project closure. It provides
learners with the proper methods on how to perform formal acceptance of project
deliverables, how to transfer the deliverables into operation, process information from
lessons learned in project activities and how to assess the performance of the project
team.
7.1.1. Objectives
The objectives of this Chapter are:
 Determine the process in accepting or rejecting projects.
 Identify the necessary measures and documents in finalizing the
project.

7.1.2. Outcomes
Upon completion of this chapter, the student will be able to:
 Explain the concepts of Project Management and Knowledge Areas.
 Analyze organization structures.
 Analyze a plan using methods and tools including Establish WBS, time &
effort estimates, resource allocation and scheduling.
 Analyze concepts of Quality Management, Assurance and Control.
 Evaluate set-targets, deliverables and conflict resolution documents.
 Use case studies for project management.

7.1.3. Terminologies
 Close Procurements - The process of completing each project’s
procurement.
 Close Project or Phase - The process of finalizing all activities across
all of the Project Management Process Groups to formally complete the
project or phase.
 Contract - a mutually binding agreement that obligates the seller to
provide the specified product or service or result and obligates the buyer
to pay for it.

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 Report Performance - The process of collecting and distributing

performance information, including status reports, progress
measurements, and forecasts.
7.2. FORMALIZING PROJECT ACCEPTANCE
When it is time to obtain signed acceptance from the customer, a formal acceptance
document should be created that (see Figure 7.2.1) officially records the results of
reviews, inspections, and tests conducted throughout the project to validate that
deliverables meet acceptance criteria. The product as a whole receives final acceptance
upon project completion. This final acceptance comes from the customer and the
organizations that will use and support the product.

Figure 7.2.1 - Deliverable Acceptance Document [3]

7.2.1. Acknowledgement That Objectives Are Met
When the objectives have been met, you need to get acknowledgement from the
customer and others to officially end the project. This acknowledgement may

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be formal acceptance, usually the signing of an acceptance document (sign-off),

or it may come in a more informal way, such as when the customer pays for the
product and uses it over a period of time.

7.2.2. Product Acceptance

Acceptance should be based on an evaluation of the product using acceptance
criteria set during the early phases of the project. You set requirements when
the project began, and those have to be met for the product to be accepted.
Testing the product against the acceptance criteria validates it.

7.2.3. Non-acceptance of the Product

At this stage of the project, you shouldn’t have any deliverables that are not
acceptable. If you find that the deliverables are incomplete or not correct,
penalties may be assessed for non-completion (if spelled out in the contract)
and final payment to the contractor may be withheld.

7.2.4. Operations Turnover

Turning the product over requires that training, documentation, and initial
support activities be part of the project deliverables. It is important to plan for
the turnover. Be sure that the people with the right skills are available and that
those who will take responsibility for the product are in attendance.

7.3. TRANSFERING OWNERSHIP OF DELIVERABLES

A formal document should be signed by the operations manager and the project
manager acknowledging transfer and control. Figure 7.3 is a sample of a formal transfer
document.

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Figure 7.3 - Formal Product Transfer to Operations [3]

7.4. OBTAINING LEGAL AND ADMINISTRATIVE CLOSURE
Most of the time a procurement officer and someone in the legal department actually
close out the project, but they need information from you as the project manager.
Procurement personnel want to know that all contract line items are fulfilled so that
final payments can be made, and that a contractor closeout letter has been sent to the
contractor.

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7.4.1. Contract Closeout Template

It’s difficult to remember everything that has to be done during this phase, so
using a template will guide you through the process of closing out a contract.
Figure 7.4.1.1 is a sample of a contract closeout template you may wish to use.
This table contains some elements of the government process for closing out a
contract.

Figure 7.4.1 - Contract Closeout Template [3]

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7.4.2. Contract Closeout Letter to Contractor

Figure 7.4 represents a memorandum that can be used to formally acknowledge
that the contract has been closed. This memo should be sent to each vendor,
contractor, or seller that has a negotiated contract.

Figure 7.4.2 - Sample Project Closeout Letter [3]

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7.5. COLLATING LESSONS LEARNED

Lessons learned during the life cycle of the project help the project manager use what
was learned throughout the remainder of the project. They are documented by the
project manager. After questions have been answered, you will want to document the
answers in a lessons learned by phase template, such as the one in Figure 7.5. Notice
that this template doesn’t include a box for what went wrong.

Figure 7.5 - Lessons Learned by Phase Template [3]

7.5.1. Independent Evaluators
When a very large project is complete, we recommend that a third party or
parties not connected with the project conduct the evaluation. The evaluators
should have access to people with the technical and business expertise needed
to evaluate the various aspects of the project and the product.

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7.5.2. Project Team Reviews

If an external review is not conducted, the project team itself can perform the
review because they most likely have all project records available to them and
will have been intimately involved throughout the project. It is important to
remember to invite team members who have left the project, not just those who
remain at the end.
7.5.3. Planning for the Review
A post-project review requires some planning; unless the project is quite small,
you may not be able to conduct it in one meeting. The following represents what
needs to be done to prepare for the final evaluation:
 Review the project files.
 Conduct interviews.
 Gather and analyze data.
 Review client/user acceptance.
 Evaluate realized costs, benefits, operational efficiency, and product
performance—this may not be known until a product has been in the
marketplace for a while and can produce measurable results.
 Measure operating efficiency and product performance.
 Evaluate the technical approach.
 Evaluate training and documentation provided to external customers
and internal clients.
 Evaluate relationships and communications.
 Evaluate vendors and vendor-provided products.
 Verify attainment of project goals.
 Measure the success of quality improvement.
 Evaluate work efforts.
 Recommend changes to standards and procedures.

7.5.4. Project Evaluation Review Questions

The purpose of a post-project assessment is to assess product, project, and
contract acceptance. The assessment can be conducted by independent

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evaluators or by the project team. Figure 7.5.4.contains project evaluation

review questions to assist you in preparing your lessons learned.

Figure 7.5.4. Project Evaluation Review Questions [3]

7.6. MEASURING PROJECT TEAM PERFORMANCE

Most of the team members have left the project, and you are ready to provide feedback
to their managers about their performance on your project. This will be easy because
the hard work is already done.

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7.6.1. Provide Feedback on the Team’s Performance

Figure 7.6.1 represents a sample of feedback from the project manager to a team
member. Because many of the questions are subjective, you must be specific
with the feedback if the score was below or above a C.

Figure 7.6.1 - Team Member Performance Report [3]

7.6.2. Provide Feedback on the Project Manager’s Performance

One of the most useful tools you will use is feedback on yourself as the project
manager. Figure 7.6.2 is a sample of a project manager’s performance review.

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Figure 7.6.2 - Project Manager Performance Review [3]

7.7. CHAPTER SUMMARY

This chapter covered the basic processes performed to finalize all activities across all
Process Groups to formally close the project. The delivery and transfer of the project
deliverables, achieving administrative closure, processing and feedback of lessons
learned from the project and project team performance measurement have been given
focus.
7.8. ASSIGNMENT
You are required to perform the following, either individually or in a group:
Assignment 7.8
Answer the following questions. You may use the Internet or other Project
Management textbooks for further readings.

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1. What should the project manager do if the final outcome of the project is not
accepted?
2. Does formal project acceptance release you, the project manager, from further
obligations?
3. What do you do if the customer says he will sign the document but wants
additional concessions from you?
4. Why should the project manager write a performance review of team members
when feedback has been provided to the team members since the project
began?
5. What should you do if you are uncomfortable providing less-than-satisfactory
feedback?
6. Is it appropriate to ask your team members to write their own performance
reports?

7.9. CASE STUDY

Your company has won a number of government contracts dealing with construction.
This includes setting up roads and bridges. This is a very big prestigious project so your
company would like to ensure everything is planned well in advance. You will manage
the project that has teams located in different parts of the world. The team structure or
locations cannot be changed and you need proper communication channel. One of the
subject matter experts indicates that during the months of December and January the
construction work of the bridge across the Wadi would need to stop on account of past
history of flooding of the Wadi. The customer has requested you for additional work.
This work will affect the budget, but not the schedule of the project. You and the site
engineer have analyzed the impact of this change to cost, and have written up a change
request and requested approval from change control board. When you successfully
delivered all project deliverables within the specified schedule, your Project Sponsor
wants you to transfer ownership of deliverables.
If you are the change control board, are you going to approved it? Yes or No? Justify
your answer.
7.10. HANDS-ON

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You are required to perform the following, either individually or in a group:

If you are using Microsoft Project, see the Microsoft Project Laboratory Manual and
perform the following:
7.9.1 Laboratory Work: Entering Percent Complete and Actuals
If you are using Primavera Project Planner, see the Primavera Project Planner
Laboratory Manual and perform the following:
4.2 Laboratory Work: Entering Percent Complete and Actuals

7.11. REFERENCES USED

1. A Guide to Project Management Body of Knowledge (PMBOK Guide) 4th
Edition, 2008 Edition by PMI, Project Management Institute
2. Microsoft Project 2010 Project Management, 2010 by Robert Happy, PMP,
MCT, Sybex
3. Project Manager Street Smarts, 2011 by Linda Kretz Zaval, PMP and Terri
Wagner, PMP, Wiley & Sons.
4. Oracle Primavera P6 Version 8: Project and Portfolio Management, 2012 by
Daniel L. Williams, PhD and Elaine Britt Krazer, PMP, Packt Publishing
5. Primavera Lab Manual, Higher College of Technology, Muscat

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