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Project Management Quintessence
Learner’s Guide
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Mukund Toro

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 Project Management Quintessence
Project Management Basics.................................................................................................................... 5
Foundational Elements of Project....................................................................................................... 6
Organisation’s Influence on Project Management ............................................................................. 7
Project Management Processes ......................................................................................................... 8
Development Life Cycle ...................................................................................................................... 9
Project Management Process Table ................................................................................................. 10
Project Manager’s Many Hats........................................................................................................... 11
Project Manager’s Many Hats (Continued) ...................................................................................... 12
Project Scope Management .................................................................................................................. 13
Project Scope Management .............................................................................................................. 14
Collect Requirements ........................................................................................................................ 15
Techniques for Requirement Collection ........................................................................................... 16
Define Scope ..................................................................................................................................... 17
Create WBS ....................................................................................................................................... 18
Plan Scope Management .................................................................................................................. 19
Validate Scope................................................................................................................................... 20
Control Scope .................................................................................................................................... 21
Project Schedule Management ............................................................................................................. 22
Project Schedule Management ......................................................................................................... 23
Define Activities ................................................................................................................................ 24
Sequence Activities ........................................................................................................................... 25
Estimate Activity Durations............................................................................................................... 26
Develop Schedule.............................................................................................................................. 27
Plan Schedule Management ............................................................................................................. 34
Control Schedule ............................................................................................................................... 35
Project Cost Management .................................................................................................................... 36
Plan Cost Management ..................................................................................................................... 38
Estimate Costs ................................................................................................................................... 39
Determine Budget............................................................................................................................. 40
Control Costs – Variance Analysis ..................................................................................................... 41
Control Costs (Continued) – Forecasting .......................................................................................... 42
Project Quality Management ................................................................................................................ 44
Project Quality Management ............................................................................................................ 45

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 Project Management Quintessence
Plan Quality Management ................................................................................................................ 46
Plan Quality Management Tools and Techniques ............................................................................ 47
Manage Quality ................................................................................................................................. 48
Control Quality .................................................................................................................................. 49
Control Quality Tools and Techniques .............................................................................................. 50
Project Resource Management ............................................................................................................ 51
Project Resource Management ........................................................................................................ 52
Plan Resource Management ............................................................................................................. 53
Estimate Activity Resources .............................................................................................................. 54
Acquire Resources............................................................................................................................. 55
Develop Team ................................................................................................................................... 56
Tuckman Ladder................................................................................................................................ 57
Thomas Kilmann Conflict Mode Instrument ..................................................................................... 58
Manage Team ................................................................................................................................... 59
Control Resources ............................................................................................................................. 60
Project Communications Management ................................................................................................ 61
Project Communications Management ............................................................................................ 62
Plan Communications Management................................................................................................. 63
Manage Communications ................................................................................................................. 64
Monitor Communications ................................................................................................................. 65
Project Risk Management ..................................................................................................................... 66
Project Risk Management ................................................................................................................. 67
Plan Risk Management ..................................................................................................................... 68
Identify Risks ..................................................................................................................................... 69
Perform Qualitative Risk Analysis ..................................................................................................... 70
Perform Quantitative Risk Analysis................................................................................................... 71
Plan Risk Responses .......................................................................................................................... 72
Implement Risk Responses ............................................................................................................... 73
Monitor Risks .................................................................................................................................... 74
Project Procurement Management ...................................................................................................... 75
Project Procurement Management .................................................................................................. 76
Plan Procurement Management....................................................................................................... 77
Conduct Procurements ..................................................................................................................... 78

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 Project Management Quintessence
Control Procurements....................................................................................................................... 79
Project Stakeholder Management ........................................................................................................ 80
Project Stakeholder Management .................................................................................................... 81
Identify Stakeholders ........................................................................................................................ 82
Plan Stakeholder Engagement .......................................................................................................... 83
Manage Stakeholder Engagement .................................................................................................... 84
Monitor Stakeholder Engagement.................................................................................................... 85
Project Integration Management ......................................................................................................... 86
Project Integration Management ..................................................................................................... 87

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 Project Management Quintessence

Disclaimer: This document is recommended be read along with the course presentation of the author.

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 Project Management Quintessence

Project Management Basics

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 Project Management Quintessence

Foundational Elements of Project

Definition Project is a temporary endeavour which has a definite start and finish.
This may not mean that the finish date is cast in stone. But there would
always be a planned finish date.
Project outcomes last much longer than
the project.
The end of the project is reached when
project’s objectives are achieved.
However, sometime the project may be
terminated with some of its objectives not
being met. Because the project became
infeasible, irrelevant or ran into legal issues.
Outcome(s) Project creates, tangible or intangible, but unique outcome(s), although
the project may have repetitive operations.
Outcome Description
Product Tangible. Visible.
Example: Creating an office facility
Service Or creation of capability for a service. Not very
tangible. Example: New office facility design
Result Decision. Yes or a no? Go or no go? Pass or fail?
E.g. Poll
Combination A combination of the above.
Example: Feasibility test prototype. Creates both
product and result.
Project, Program is a collection of projects, subprojects and other work which are
Program, managed in a coordinated fashion to obtain benefits. These would be
Portfolio missed if the projects were done solo. Projects in a program are
correlated.
Portfolio is a collection of programs, projects and operations which are
managed as a group to meet strategic objectives of the business.
Projects and programs within a portfolio may not be related.
Project and Project contrasts with operations which are always on and not
Operations temporary. Operations create repetitive and not unique outcome.
Operations generally bring in revenue!
A project may be taken up to improve operations.
Project and Portfolios are carefully
Business Value created to meet the
organisation’s strategic goals.
The realisation of the goals
happens through projects and
programs. The benefits of a
program are folded into
operations. Observations in
operations feed back into the organisational strategy.

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 Project Management Quintessence

Organisation’s Influence on Project Management

General Organisational culture, hierarchy, communication lines impact how the
project would be initiated, executed and governed. And later, how the
project would be closed or terminated.
Example: It will be easier to do a project in an empowered organisation,
rather than a bureaucratic organisation.
Structure Organisation structure has a direct impact on how much power or
authority would the project manager have. There is always a trade-off
between the available and the needed structure.
Structure type Impact on Project Management
Organic No designated project manager or staff. Owner
controls budget
Functional Informal project manager. Functional manager
(Centralised) controls budget
Multi divisional Ditto
Matrix strong Full time designated PM who also controls budget
Matrix weak Part time, shared job for PM. Functional manager
controls budget
Matrix balanced Part time PM. Both functional and project
managers control budget
Projectised Full time designated PM role, includes budget
control
Virtual Full or part time PM with mixed budget
responsibility
PMO Full time designated PM role, includes budget
control
Governance Governance is the framework within which authority is exercised in the
organisation.
Examples: Providing oversight, Decision making, Escalation mechanisms
Management Management elements are the key functions of general management.
Elements Examples: Division of work, Authority, Responsibility
Enterprise These are conditions, not under the project manager’s or team’s control,
Environmental but influence, constrain or direct the project. Can be internal or external.
Factors Would be inputs for many processes and outputs in a few.
Example: Restrictions on travel due to changes in the visa regime.
Organisational These are processes, policies and procedures and organisational
Process Assets knowledge repository. Would be inputs to many processes and outputs
too, from many processes
Example: Template for the project charter

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 Project Management Quintessence

Project Management Processes

Process A preferred and controlled method of repetitively and reliably doing
something, generally involving sequential steps, techniques and tools1.
Product Specify and create the project’s product.
Oriented Example: Coding in Java for a software project
Project Help in managing the project, independent of the PLC.
Management Example: Developing project schedule
Phase, Gate Phase is a collection of logically related project activities, usually culminating in
the completion of a major deliverable. Phase takes inputs, adds value and gives
outputs.
The output of a phase is accepted only if it satisfies the gating criteria. Once
through the gate, the output gets into a repository for safe keeping.
Sometimes, at a gate, the rest of the project may get terminated.
Example: Coding phase gated by peer review
Project Life Project phases add up to make the project life cycle (PLC). The number and
Cycle and sequence of phases, inputs and outputs, process are determined by the
Process project’s product.
Tailoring An organisation is likely to provide to the project, standard set of PLCs to
choose from. Modifications to the standard specifically for the project are
referred to as tailoring.
PDCA and The project management process groups are derived from Plan, Do,
Process Groups Check and Act (PDCA) cycle enunciated by Deming and Shewhart.
Since project is a temporary endeavour, initiating and closing process
groups are also needed.
Process groups indicate what the project manager should do.
The five process groups are not project phases.
- Plan Do Check and Act -
Initiating Planning Executing Monitoring and Controlling Closing
Knowledge The project management framework can also be seen through the
Areas perspective of knowledge areas. Or, what the project manager should
know to be effective in her / his role.
Core Scope, Schedule, Cost, Quality
Supporting Resource, Communications, Risk,
Procurement, Stakeholder
Integration Integration
}
suffixed by

Management
PM Process “Belongs” to a Process Group and a Knowledge Area as well.
Example: Process “Identify Stakeholders” is an Initiating process and also
a part of Stakeholder management.
In all, there are forty-nine (49) processes.
PM Process At the risk of over-simplification, it can be stated that Project
Framework Management is the sum total of all the forty-nine project management
processes and their inter-connections.
1 - A Glossary of Project Management Terms Centre for Systems Management

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 Project Management Quintessence

Development Life Cycle

General Project phases, in project life cycle, may not always sequentially follow one
another. The project may use one of the following types of development life
cycles.
Predictive The entire project and each phase are planned completely in advance. Each
phase is expected to be traversed only once.
Example: Constructing a bridge over a river
Iterative Based on whatever is certain, the next immediate iteration is planned and
executed. Observations and decisions in the current iteration greatly impact the
next iteration. Project phases may repeat within iteration. The customer may
be interested only in the final deliverable and not each iteration.
Example: Manned moon mission
Incremental Project delivery is done in increments. Each increment gives value to the
customer.
Example: Packaged multi destination holiday tour
Adaptive Development and delivery both happen iteratively over a fixed short time box.
Customer is closely involved in the development and deliverable(s) of every
iteration. Example: Software development and delivery

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 Project Management Quintessence

Project Management Process Table

Process Group → Initiating Planning Executing Monitoring and Closing
Knowledge Area ↓ Controlling
Integration Develop Develop Project Direct and Monitor and Close
Management Project Management Manage Project Control Project Project
Charter Plan Work, Manage Work, Perform or
Project Integrated Phase
Knowledge Change Control
Scope Management Plan Scope Validate Scope,
Management, Control Scope
Collect
Requirements,
Define Scope,
Create WBS
Schedule Plan Schedule Control Schedule
Management Management,
Define Activities,
Sequence
Activities,
Estimate Activity
Durations,
Develop Schedule
Cost Management Plan Cost Control Costs
Management,
Estimate Costs,
Determine
Budget
Quality Plan Quality Manage Quality Control Quality
Management Management
Resource Plan Resource Acquire Control Resources
Management Management, Resources,
Estimate Activity Develop Team,
Resources Manage Team
Communications Plan Manage Monitor
Management Communications Communications Communications
Management
Risk Management Plan Risk Implement Risk Monitor Risks
Management, Responses
Identify Risks,
Perform
Qualitative Risk
Analysis, Perform
Quantitative Risk
Analysis, Plan Risk
Responses
Procurement Plan Procurement Conduct Control
Management Management Procurements Procurements
Stakeholder Identify Plan Stakeholder Manage Monitor
Management Stakeholders Engagement Stakeholder Stakeholder
Engagement Engagement
Source: PMBOK® Guide Sixth Edition

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 Project Management Quintessence

Project Manager’s Many Hats

Project  Leads the team to meet the project objectives and stakeholder
Manager expectations.
 Balances the competing and conflicting goals between scope,
schedule, cost, stakeholders etc.
 Communicates not just the information to stakeholders but also
paints a vision
 Builds relationships and thereby consensus by going beyond mere
transactions
Management  Works with peer project managers and organisation’s management
Team Member team
 Keeps eyes and ears open to happenings around and probable
impact on the project
 Advocates project management at organisational level. Supports
PMO.
 Gets to know internal political and strategic issues from the sponsor.
 May impart knowledge. Ensures knowledge gained in the project is
not lost
 Regularly reports even if not asked for by the reporting manager to
maintain alignment with portfolio, program and operations
 Interacts with subject matter experts, business analysts
Part of the  Stays in touch with the industry. Example, automobile industry
Industry  Keeps abreast in product and technology development
 Keeps informed about new and changing market niches
 Keeps abreast of changes to standards
Professional  Contributes to the profession
 Stays current on subject matter expertise
 Participates in Communities of Practice
 Teaches at universities or PMI chapters
 Contributes to specific industry associations

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 Project Management Quintessence

Project Manager’s Many Hats (Continued)

The PMI Talent Project Manager needs three key managerial skills to be effective
Triangle®  Technical project management
 Strategic and business management
 Leadership
Here are some examples, by no way, a complete and comprehensive list
Technical  Focus on critical success factors
Project  Tailor processes to specific situations
Management  Plan and relentlessly prioritise activities
Strategic and  Explain business aspects of the project
Business  Decide the project strategy by coordinating between sponsor, team
Management and subject matter experts
 Implement strategy to maximise business value
 Explain the benefit realisation from the project
Leadership  Show a compelling vision of the project
 Balance strategy and tact by relentless prioritisation
 Build effective teams
 Get things done despite politics and power play
Comparison Neither is inferior to the other. Project manager has to have both the types of
Management skills. Some examples, by no way, a complete and comprehensive list
and Leadership Manager Leader
Uses positional power Uses collaboration
Administers procedures Innovates novel changes
Focusses on near term goals Focusses on long term goals
Maintains status quo Welcomes change
Integrator Project manager integrates the project at different levels
 Process : Example, all planning processes need to be integrated into the
project management plan
 Cognitive: Example, the project team needs to be integrated with the
project
 Contextual: Example, the project needs to be integrated with the
program
Ethics and Value Explanation
Professional Responsibility Ownership of decisions taken and not taken, actions and
Conduct consequences
Respect High regard for ourselves, others and resources
Fairness Impartial and objective decisions and actions
No competing self-interest, prejudice, favouritism
Honesty Understanding of the truth
Act in truthful manner in communications and conduct
Talent Triangle is a registered mark of PMI, Inc.

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 Project Management Quintessence

Project Scope Management

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 Project Management Quintessence

Project Scope Management

Introduction Project scope baseline is one of three fundamental baselines for the
project; the other two being the schedule baseline and the budget
baseline.
Definition Project scope baseline describes the boundaries of the
project. It describes what will be done in the project
and what will not be.

Purpose In a project, there is a high likelihood that some things are missed out or
done but not needed. Or unexpected work crops up as the project
advances. The project management team should be able to manage such
changes. Ideally the project team should do all the work required and
only the work required. Note the word used is “work” and not
requirements or expectations.
Three Pillars Term Answers the question …
Requirements What are the customer’s wants and needs?
Example: The customer needs a place to live.
Product Scope What are the outcomes of the project which meet
customer’s wants and needs?
Example: A house with suitably detailed
specifications envisaged.
Project Scope What is the work to be done to create the project
outcomes?
Example: The house would need excavation,
masonry, plumbing and much more.
Project Process Description
Management Collect Determine, document and manage stakeholders’
Processes Requirements needs and requirements to meet the objectives
Define Scope Develop detailed description of the project and the
product
Create WBS Subdivide the project deliverables and project to
smaller, more manageable components
Plan Scope Scope management plan that documents how the
Management project and product scope will be defined, validated
and controlled
Validate Formalise the acceptance of the completed project
Scope deliverables
Control Scope Monitor the status of product and project deliverables
and manage changes to the scope baseline

Source: PMBOK® Guide Sixth Edition

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 Project Management Quintessence

Collect Requirements
Needs, Wants Satisfying needs would be essential, satisfying wants desirable. The
and project management team is likely to help the customer negotiate
Requirements between needs and wants and document the outcomes as requirements.
Requirement Conditions or capabilities that should be present in a product service or
result of the project.
Types of  Functional requirements. More obvious e.g. a new feature
Requirements  Non-functional requirements. Less obvious and therefore difficult
e.g. ease of use
 Quality requirements e.g. adherence to a specific standard
 Project management requirements, test requirements,
interoperability requirements etc.
Techniques to See below
Collect
Requirements
Key Deliverable Contents
Deliverables Requirements Describes how requirements meet the project
Documentation business goals. Ideal to have measurable, testable,
traceable and complete requirements.
Requirements Links product requirements from the origin all the
Traceability way to deliverables. Useful for change control.
Matrix

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 Project Management Quintessence

Techniques for Requirement Collection

Data Gathering Brainstorming Meet in a group to generate ideas. Judging ideas is
absolute no-no.
Interviews Meet the customer one-on-one. Use open ended and
close ended questions to get specific requirements.
Focus group Meet the customer as a group. Facilitate discussion.
Surveys Cannot meet a big group of end-customers at large,
use survey questionnaire. Give respondents specific
questions and pre-determined options.
Benchmarking Gather ideas about processes, products, practices
from comparable organisations.
Data Analysis Document Analyse available documents and gather information
analysis on requirements.
Decision- Voting The group takes a vote on the available options within
making requirements by majority, plurality or consensus.
Autocracy One individual takes the responsibility of the decision,
after hearing everyone out.
Multi-criteria Requirements are scored and prioritised on multiple
decision criteria; each of which may also have a weight.
analysis
Data Affinity diagrams Helps cluster ideas around self-evident common
representation attributes
Mind mapping Helps generation and recording of ideas.
Interpersonal Nominal group Brainstorm while ensuring that every meeting
and team skills technique participant gets a fair chance.
Observation Observe the use of the product non-intrusively.
Make note of the pain points for the user.
Facilitation Ensure that the discussions do not go astray and
remain focussed on the requirements
Prototyping If the customer is unable to articulate requirements, prototyping may
help. Effective but expensive. May include simulation, working or non-
working modelling.

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 Project Management Quintessence

Define Scope
Inclusions and Product scope starts with a description of what is included in the project
Exclusions outcomes and also what is excluded.
Visualise you were building a house.
Includes Excludes
House as per the attached layout Landscaping
Exterior painting blue waterproof, Electrical fittings – fans, air-
Interior yellow distemper conditioner, lampshades
Warranty against structural Bathroom fittings
defects for one year
Progressive The project outcomes get progressively elaborated.
Elaboration Visualise you were building a house, the colour of the tiles in the drawing
room may not be known when excavating the foundation! But once such
a detail is realised and agreed upon, it becomes a part of the scope
baseline.
Defined as “developing in steps and continuing by increments”.
Assumptions Things taken as given when planning a project. Need to be verified
repeatedly in the course of the project.
Constraints Things which limit the course of action or inaction.
Deliverables Products, services, and results the project would deliver.
Acceptance Customer’s criteria for accepting a deliverable.
Criteria
Techniques for Technique Description
Scope Alternative Compare and decide jointly with the customer on
Definition analysis alternative solutions to meet the requirements
Product analysis Break down the product into its components
Facilitated Discuss alternative solutions
discussions
Key Deliverable  Inclusions and Exclusions
Project Scope  Assumptions
Statement  Constraints
 Project life cycle
 Development life cycle
 Product and project deliverables
 Acceptance criteria

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 Project Management Quintessence

Create WBS
WBS WBS, abbreviation for Work Breakdown Structure, is deliverable
oriented hierarchical decomposition of work. Each level of breakdown
gives better clarity about the work to be done.
Progressive As assumptions, constraints, deliverables change over the project life
Elaboration cycle, work too gets progressively elaborated.
100% Rule 100% Rule Each and every work element helps in meeting the
objectives. No work element is redundant.
Conversely, all that needs to be done for the project is
in the WBS. No work is left out of the WBS.
Project WBS provides for product deliverable as well as
Management project management deliverables.
Deliverables
Level of Effort WBS takes care of work required from operations
support (not part of the project team). It can be
shown as proportional contribution.
Unique Each WBS element has a unique identifier which shows the level of the
Identifier WBS element in the hierarchy and its parent. A work element can have
only one parent.
Control These are points in the WBS where scope, schedule and cost are
Account integrated and controlled.
Work Package Decomposition of a WBS branch stops at a work package which can be
and Planning scheduled, estimated and verified reasonably well.
Package If decomposition were to be deferred due to non-availability of
information, such a work element is called planning package.
WBS First Level WBS can be started with the deliverables at the first level and broken
down further. Or it can be started with the project life cycle phases or
iterations at the first level and broken down further. Irrespective of the
technique sum total work would remain the same.
WBS Dictionary WBS may be complemented by WBS Dictionary which has detailed
description and technical documentation of the work elements.
Key Approved Scope Statement + WBS + WBS Dictionary
Deliverables - Scope Baseline is a part of the larger project management plan.
Scope Baseline

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 Project Management Quintessence

Plan Scope Management

Disclaimer The following examples are only indicative and not exhaustive. Scope
management plan and requirements management plan may differ
greatly between projects.
Key Deliverable Documents how the project scope will be defined, developed,
- Scope monitored, controlled and validated. It’s a part of the larger project
Management management plan.
Plan
Key Deliverable Documents how the project and product requirements will be defined,
- Requirements documented and managed. It’s a part of the larger project management
Management plan.
Plan
Indicative Processes for
Contents of  Preparing project scope statement
Scope  Enabling creation of WBS from the detailed project scope
Management statement
Plan  Establishing how the scope baseline will be approved and
maintained
 Specifying how the formal acceptance of completed project
deliverables will be obtained
Indicative Processes for
Contents of  Planning, tracking and reporting requirements activities
Requirements  Configuration management activities
Management  Requirements prioritisation process
Plan  Metrics and their rationale
 Traceability structure that reflects the requirements attributes
captured in the traceability matrix

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 Project Management Quintessence

Validate Scope
Inspection The project deliverables shall be checked against the respective
acceptance criteria.
Formal As a result of inspection, the deliverable may be formally accepted by
Acceptance the customer. Formal acceptance reduces the project risk.
Deliverables need not wait for the project to complete; they could be
validated as soon as they are completed.
Validate Scope Validating scope is about meeting the acceptance criteria formally.
vis-à-vis Controlling quality has got to do with correctness of the deliverable as
Control Quality per the standards set in the quality management plan.
Usually validate scope would follow control quality.
Accepted Once accepted formally, the deliverable becomes accepted deliverable.
Deliverable
Change If the deliverable is not accepted fully and formally, this situation may
Request call for a change request.
Work This is a measure of project progress such as which deliverables have
Performance been accepted and which have not and why.
Indicator

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 Project Management Quintessence

Control Scope
Control vis-à- If Validate Scope is about formally accepting a deliverable; Control Scope
vis Validate is about controlling the work that is needed to produce the deliverable.
Scope
Monitor, Monitor the status of both project and product. Detect variance. Act on
Detect, Change the variance as specified in the scope management plan.
Change to This process helps manage changes to the project scope. Any change to
Scope the project scope baseline should follow the change management
process.
Scope Creep This implies change to scope without due consideration to resulting
changes to the schedule or budget. Scope creep may start in a small
insignificant way and finally turn into something too huge to manage.
Change Analysis of the project performance may result into a change request to
Request the scope baseline or other baselines.
Work This is a measure of project progress against the baseline such as which
Performance work has been completed and which has not.
Indicator

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 Project Management Quintessence

Project Schedule Management

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 Project Management Quintessence

Project Schedule Management

Introduction Project schedule baseline is one of the three fundamental baselines of
the project, the other two being project scope baseline and project cost
baseline.
Purpose At the risk of oversimplification, project scheduling is about
 Splitting the work packages into smaller doable activities
 Sequencing the activities based on dependencies between them
 Assigning resources to activities
 Scheduling each activity at the right time so that all of the work
finally gets done and gets integrated
Project Process Description
Management Define Identify and document the specific actions to be
Processes Activities performed to produce the project deliverables
Sequence Identify and document relationships among the
Activities project activities
Estimate Estimate the number of work periods needed to
Activity complete individual activities with the estimated
Durations resources
Develop Analyse activity sequences duration, resource
Schedule requirements and schedule constraints to create the
project schedule model for project execution and
monitoring and controlling
Plan Schedule Establish the policies, procedures, and
Management documentation for planning, developing, managing,
executing and controlling the project schedule
Control Monitor the status of the project to update the
Schedule project schedule and manage changes to the
schedule baseline
Source: PMBOK® Guide Sixth Edition

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 Project Management Quintessence

Define Activities
Activity Activity is something that the project resource would do. An activity also
needs finite time to be done.
Work Package Work package gets broken down into activities. The former would be a
and Activity deliverable, the later represents all the effort required to create the
deliverable. Each activity may or may not result into a deliverable.
Example: If “Wall” is the work package, “Lay blocks”, “Plaster with
cement” and “Splash water to cure” would be the activities.
Thumb Rule 1 Work package is recommended to be noun and activity, a verb.
Milestone Milestone is a significant specific event in the schedule. Unlike an
activity, milestone has zero duration.
Example: “Wall completed”
Some milestones could be mandated by the organisation and some
project specific.
Activity Constraints get recorded in activity attributes to be considered during
Attributes developing the schedule.
Example: Wall cannot be raised in July due to heavy rains.
Assumptions show up as external dependencies to be considered during
developing the schedule.
Example: “Delivery of cement” is an external dependency.
Key Activities, Milestones, Activity attributes
Deliverables

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 Project Management Quintessence

Sequence Activities
Dependency Most of the activities in a project are not stand-alone. An activity is likely
to depend upon another activity. These are called dependencies or
logical relationships.
Predecessor, The activity which drives is called the predecessor; the one that is driven
Successor is the successor.
Hard, Soft Hard dependencies are inflexible. It will be extremely risky to alter them.
Dependency Example: Wall can be painted only after plastering.
Soft dependencies are flexible. It may not be very risky to alter them.
Example: Wardrobes to be done before painting.
Internal, The dependency could be outside the control of the project organisation.
External Example: Clearance from a government agency.
Dependency The dependency could be internal, when the predecessor and the
successor are both being done by team members from the same project
team.
Types of Finish to Start Finish to Finish Start to Start Start to Finish
Dependency (FS) (FF) (SS) (SF)

Lead and Lag

(assuming
Finish to Start
dependency)

Schedule It is created out of all the activities and milestones and the dependencies
Network between them. Leads and lags are also entered in the schedule network
Diagram diagram.
Thumb Rule 2 It is a good practice to have single entry and a single exit for the schedule
network diagram. In other words, all the activities except the start
activity / milestone should have at least one predecessor. Conversely all
the activities except the finish activity / milestone should have at least
one successor.
Key Deliverable Schedule Network Diagram

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 Project Management Quintessence

Estimate Activity Durations

Activity An activity can have a fixed duration independent of the number of
Duration and resources assigned.
Resources An activity can have fixed effort with the duration inversely proportional
to the number of resources assigned
An activity can have variable effort based on the number of resources
assigned and the duration.
Techniques Technique Description
Analogous Based on similar activity from a past project. Quick, not
estimating accurate. Also called top down estimating
Parametric One or more parameters are extrapolated to get the
estimating estimate
Example: Dimensions of the wall can be extrapolated to
get the duration estimate for painting the wall
Three-point Three estimates - optimistic, most likely and
estimating pessimistic- are made. Weighted average of these is
taken as the estimated duration using the following
formula
µ = (Optimistic + 4*Most Likely + Pessimistic)/6
The three-point estimates also can be useful to get the
standard deviation using the following formula.
σ = (Optimistic – Pessimistic/6)
Group Experts meet and thrash out the estimates. The
decision meeting may be facilitated. It can use brainstorming or
making nominal group techniques
Thumb Rule 3 The estimated duration of any activity should not exceed an upper limit.
(8/80 Rule) It should be less than two reporting periods. Assuming weekly reporting
frequency, no activity in the project should have duration of more than
80 hours. If estimated duration of any activity exceeds the upper limit, it
should be split.
The duration of any activity should not fall below a lower limit, too. That
would lead to micro managing overheads. For example, duration of no
activity should be less than 8 hours.
Key Duration estimates for all project activities
Deliverables

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 Project Management Quintessence

Develop Schedule
Inputs to the  Activities, Milestones, Activity attributes
Schedule  Schedule network diagram
 Activity duration estimates
 Project calendar, Resource calendars
Critical Path The project schedule may have multiple paths. Each path may not have
Method (CPM) the same duration. The longest of these paths decides the duration of
the project. This path is called the critical path. All the activities on the
critical path become critical activities.
Critical activities have to be monitored and controlled carefully by the
project manager. Delay in any critical activity would delay the project.
See Worked-out Example for Critical Path Method.
Total Slack or For a specific activity, the period of time by which an activity can be
Float delayed without impacting the project duration.
It can be positive number. If it is zero, the corresponding activity is a
critical activity. This number can be negative too if the activity has
constraints.
Free Slack or For a specific activity, the period of time by which an activity can be
Float delayed without impacting the start of the next immediate activity. It can
be positive number or zero. This number can be negative too if the
activity has constraints.
Resource This technique matches the resource supply and resources needs of the
Levelling schedule. Resources may be available at specific times or in specific
quantities. A resource may get assigned to more than one activity too.
This technique tries to exploit the slack to optimise resource allocation.
But sometimes when the slack does not suffice, the critical path and
project duration may change.
Resource This technique ensures that requirements for a certain resource in the
Smoothing schedule do not exceed a specified limit. Unlike in resource levelling, the
critical path and project duration are not expected to change.
Schedule If the project duration is more than desired, the project manager may
Compression need to compress the schedule.
Technique Description
Fast Tracking Re-examine the dependencies. Try making sequential
activities as parallel activities.
 Remove soft dependencies
 Increase leads, reduce lags
 Replace FS dependency by SS or FF
Caution: Increases the project risk.
Crashing Add resources iteratively in such a way to get
maximum gain in the schedule with minimal increase
in effort / cost.
Caution: Increases the project cost.
Key Deliverable Project schedule baseline consisting of activities / milestones and their
respective start and finish dates

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 Project Management Quintessence
Worked-out Example for Critical Path Method
The bulleted list below describes the activities in a project.

1. Task1 can start immediately and estimated duration is 5 days

2. Task2 can start after completing Task1 and estimated duration is 5 days

3. Task3 can start after completing Task1 and estimated duration is 10 days

4. Task4 can start with a lag of 3 days after completing Task2 and estimated duration is
4 days

5. Task5 can start after completing Task 4 and estimated duration is 8 days

6. Task6 can start with a lag of 3 days after competing Task3 and estimated duration is
5 days

7. Task7 can start after completing Task 4 & Task6 and estimated duration is 6 days

8. Task8 can start after completing Task5 & Task7 and estimated duration is 2 days

With the above information

1) Create the schedule network diagram

2) Find out the critical path and its duration

3) Find out the slack for each activity

Solution

Schedule Network Diagram

Create the schedule network diagram using the dependencies between tasks and leads and lags.

T2 T4 T5

+3
T1 T8

+3

Figure 1 T3 T6 T7

Please note the lag indicated as +3 on two logical relationships above.

There are three parallel paths labelled A, B and C, in this schedule.

Path A: T1→T2→(+3)→T4→T5→T8

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 Project Management Quintessence
Path B: T1→T2→ (+3) →T4→T7→T8

Path C: T1→T3→ (+3) →T6→T7→T8

Critical Path
Enter the activity durations as given in the problem description.

Figure 2

Add up the total length of each path. Do not overlook the lag in two places.

Path A: 5+5+3+4+8+2 = 27

Path B: 5+5+3+4+6+2 = 25

Path C: 5+10+3+5+6+2=31

Path C is the longest (31 units) compared to the path A (27 units) and path B (25 units). Therefore it
is the critical path.

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 Project Management Quintessence

Figure 3

Total Slack or Float

Total slack is defined as “the amount of time the task can slip without affecting the project’s finish
date”. (http://www.maxwideman.com)

Take the difference between the critical path and length of the path under consideration, starting
with the longest path. The difference would be the total slack available to the path and thereby the
activities on the path. If an activity is on multiple paths, the total slack would be least of the values.

The total slack available to activities path C would be 0 units (31-31). So the total slack for tasks T1,
T3, T6, T7 and T8 would be zero.

Figure 4

The total slack available to activities on path A would be 4 units (31-27).

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 Project Management Quintessence

TS not overwritten,
although T1 is also on
path A. Takes lesser
between 0 and 4. Ditto
T8.

Figure 5

The total slack available to activities on path B would be 6 units (31-25). But anyway, all the activities
have total slack marked against them in this example. So this information is of no further use, in this
example.

Early Start, Early Finish

Early start (abbreviated ES) is “the earliest time at which an activity can be started”. Early finish
(abbreviated EF) is “the calculated time at which an activity can end”.
(http://www.maxwideman.com)

EF = ES + Duration

Late start (abbreviated LS) is “the latest time by which an activity can be started without impacting
the total project duration”. Late finish (abbreviated LF) is “the latest time at which an activity can be
finished”. (http://www.maxwideman.com)

LS = LF – Duration

We need to do a forward pass, starting with T1 and ending with T8, and get the early start and early
finish for each activity.

The following legend is used for the rest of the figures.

ES EF
Task
Duration
LS LF
Figure 6

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 Project Management Quintessence

T7 has two predecessors. The

Note lag added to ES for T4. higher of the two EF values
Ditto T6 (17, 23) taken as ES. Ditto T8.

Figure 7

Late Start, Late Finish

Do a backward pass, starting with T8 and ending with T1, and calculate the late start and late finish
for each activity.

Note lag subtracted

Figure 8 T4 has two successors. Smaller of

the two LS values (21,23) taken for
LF. Ditto T1
Free Slack or Float
Free slack is defined as” the amount of time an activity can be delayed without delaying the early
start of any immediately following activities.” (http://www.maxwideman.com)

In the above diagram, except for T5, for every activity the free slack is zero. For T5, it is 4 units.

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 Project Management Quintessence

Figure 9

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 Project Management Quintessence

Plan Schedule Management

Disclaimer The following examples are only indicative and not exhaustive. Schedule
management plan may differ greatly between projects.
Schedule Document that details the processes of defining, developing, monitoring
Management and controlling the project schedule. It’s a part of the larger project
Plan management plan.
Indicative  Method to create and maintain the baseline e.g. CPM
Contents of  Tool to be used to create and maintain the baseline e.g.
Schedule Microsoft® Project
Management  Baseline approval process
Plan  Frequency of updates to the schedule
 Thresholds for delays

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 Project Management Quintessence

Control Schedule
Purpose Compare work performance data against the baseline and recommend
change request, based on the variance analysis. Work performance data
could be the activity completion status, actual activity duration, available
activity slack etc.
Techniques If the project is delayed, to bring it closer to the baseline the following
techniques are used
 Fast tracking
 Crashing
Resource levelling may also be carried out based on the changes to the
schedule due to fast-tracking or crashing.
Change In case the schedule cannot be recovered by schedule compression
Request techniques, change request is raised. The request could be for modifying
the scope or cost of the project.
Work This shows the progress of the project against the baseline. For
Performance examples, number of activities delayed as compared to the baseline.
Information
Forecast Based on the current performance, forecast about the future schedule
performance are made.
Key Updated Schedule, Work Performance Information, Forecast, Change
Deliverables Request

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 Project Management Quintessence

Project Cost Management

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 Project Management Quintessence

Project Cost Management

Introduction Project cost baseline is one of the three fundamental baselines of the
project, the other two being project scope baseline and project schedule
baseline. The participation of the project manager in cost management would
vary from project to project.
Purpose Cost management included planning, estimating, budgeting, funding,
managing and controlling costs so that the project can be completed
without cost overrun.
Project Process Description
Management Plan cost Define how project costs will be estimated,
Processes management budgeted, managed, monitored and controlled
Estimate costs Develop and approximate of the monetary
resources needed to complete the project
Determine budget Aggregate the estimated costs of individual
activities or work packages to establish an
authorised baseline
Control costs Monitor the status of the project to update the
project costs and manage changes to cost baseline
Source: PMBOK® Guide Sixth Edition

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 Project Management Quintessence

Plan Cost Management

Introduction Cost management presents some interesting challenges.
 Cost inclusions and exclusions. For example, salary may be a cost
to the project. But interest on borrowings may not be.
 Cost accrual norms. For example, if equipment is a cost to the
project, when will it be accrued? When the purchase request is
placed or when the equipment lands?
 Or what is the precision level required for costs? $29.95 or
$30.00?
These questions and many similar questions are considered and
documented while planning project costs.
Purpose The project follows the norms and policies of the organisation. There are
fewer differences between the finance team and the project
management team.
Life cycle The project manager and other stakeholders would want to keep the
Costing project costs low. But they should not prune the cost so much, that the
outcomes of the project suffer. The subsequent costs become a
recurring problem for the requesting organisation.
Example: In a software project, open source software is used to keep the
costs low. But this decision subsequently leads to intellectual property
issues.
Sample  Project Manager’s role and authority
Contents of  Other roles and responsibilities
Project Cost  Accrual rules
Management  Project and non – project costs
Plan  Project Direct and Indirect costs
 Budget norms and policies
 Units of measure
 Desired precision
 Monitoring mechanisms
 Monitoring frequency

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 Project Management Quintessence

Estimate Costs
Introduction Cost estimation is essential to arrive at the project budget.
Purpose This process determines the monetary resources required for the
project. It may involve looking at alternative ways of implementing the
project and trading of one parameter for the other.
Estimation Technique Description
Techniques Analogous Based on similar activity from a past project. Quick, not
estimating accurate. Also called top down estimating
Parametric One or more parameters are extrapolated to get the
estimating estimate
Example: Dimensions of the wall can be extrapolated to
get the cost estimate for painting the wall
Three-point Three estimates - optimistic, most likely and
estimating pessimistic- are made. Weighted average of these is
taken as the estimated cost (µ pronounced mu) using
the following formula
µ = (Optimistic + 4*Most Likely + Pessimistic)/6
The three estimates also can be useful to get the
standard deviation (σ pronounced sigma) using the
following formula.
σ = (Optimistic – Pessimistic/6)
Group Experts meet and thrash out the estimate. The meeting
decision may be facilitated. It can use brainstorming or nominal
making group techniques
Estimation The accuracy of cost estimate would improve with progressive
Accuracy elaboration. A corollary to this would be that estimates would need to
be revisited.
Further, basis for estimates need to be documented so that they can be
validated during the next iteration of estimation. It has been observed
that estimation accuracy is better if the bases for estimates are
documented.

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 Project Management Quintessence

Determine Budget
Introduction Budget is the approved estimate for a project or part of the project over
a fiscal period. Therefore, in addition to the cost estimates, project
schedule is a necessary input to determine the budget. It is important to
know when the cost is to be expended.
Purpose This process determines the cost baseline against which the project
performance would get measured.
Comparison of  Same units (dollar, for example)
Cost Estimate  Estimate has range of values; budget has single value
and Budget  Budget qualified by fiscal period; estimates not
Components

Source: PMBOK® Guide Sixth Edition

Control These are the focal points in the WBS at which scope, schedule and cost
Accounts get integrated.
Cost Baseline

Source: PMBOK® Guide Sixth Edition

Salient Points  S-shaped curve because Y-axis shows cumulative numbers
of Cost Baseline  Expenditure and baseline gap, that represents contingency
reserves, closes as the project nears completion
 Baseline reaches Budget at Completion (BAC) on project
completion
 Management reserve not a part of the baseline
 Funding happens in chunks at specific times
Reconciliation The project may need reconciliation of scope, schedule with the budget.
This process would be iterated till an optimal balance is realised.

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 Project Management Quintessence

Control Costs – Variance Analysis

Introduction Monitoring costs against the budget may not be sufficient. It has to be
ensured that the funds used accomplish the authorised project work.
Purpose This process ensures that cost baseline is maintained throughout the
project.
Earned Value This method integrates monitoring of scope, schedule and cost. It
Analysis (EVA) compares the performance of the project against the three baselines and
also helps in forecasting.
Key Dimensions
of EVA Dimension Significance A.k.a.
Planned Budgeted value of work that BCWS – Budgeted
Value (PV) should have been accomplished Cost of Work
at a given point in time, in Scheduled
terms of baselined cost.
Earned Budgeted value of the BCWP - Budgeted
Value (EV) authorised work that has been Cost of Work
completed, fully or partially. Performed
Actual Total cost incurred on the work ACWP – Actual Cost
Cost (AC) that the EV measured of Work Performed
Variance Variance Equation Significance
Analysis Schedule EV - PV Measure of schedule performance. If …
Variance  Positive, project ahead of
(SV) schedule
 Negative, project behind schedule
 Zero, project on schedule
When project gets completed SV will be
zero (0)
Cost EV - AC Measure of cost performance. If …
Variance  Positive, project under budget
(CV)  Negative, project over budget
 Zero, project on budget
Schedule EV / PV Measure of schedule efficiency. If …
Performance  More than 1, project ahead of
Index (SPI) schedule
 Less than 1, project behind
schedule
 Equal to 1, project on schedule
When project gets completed SPI will be
one (1)
Cost EV / AC Measure of cost efficiency. If …
Performance  More than 1, project under
Index (CPI) budget
 Less than 1, project over budget
 Equal to 1, project on budget

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 Project Management Quintessence

Control Costs (Continued) – Forecasting

Introduction EVA can also be used for forecasting estimate at completion and not only
variance analysis.
Definitions BAC Budget at Completion The sum of all the budgeted costs for
the work to be performed
ETC Estimate to Complete The expected cost to finish all the
remaining work
EAC Estimate at Completion The expected total cost of performing
all the work. Includes costs incurred to
date (AC) and estimate to complete
(ETC)
VAC Variance at Completion The projection of amount of deficit or
surplus in the budget.
VAC = BAC - EAC
TCPI To Complete The ratio of the remaining work and
Performance Index remaining funds
Estimate at Assumption Equation
Completion Trends till date are atypical and EAC = AC + (BAC - EV)
(EAC) won’t impact ETC
Equations Trends till date are typical and EAC = BAC / CPI
only CPI impacts ETC
Trends till date are typical and EAC = AC + (BAC - EV) / (CPI * SPI)
both CPI and SPI impact ETC
To Complete Purpose Equation
Performance Efficiency that must be maintained to TCPI = (BAC – EV) / (BAC – AC)
Index (TCPI) meet the plan
Equations Efficiency that must be maintained to TCPI = (BAC – EV) / (EAC – AC)
complete within the present EAC
If TCPI,
 Less than 1, easier to complete
 More than 1, harder to complete
 Equal to 1, Remaining work and funds match
Graphical
Representation
Forecasting

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 Project Management Quintessence
Worked-out Example of Earned Value Analysis
Problem Scope: Construction of highway with a total length of 50 km
Statement Schedule: To finish 10 km each month. Project baseline duration of 5 months
Cost: $20,000 per kilometre. Assume uniform costs over the project. Total
budget $1,000,000
Budget Time Time Month 1 Month 2 Month 3 Month 4 Month 5
Phased View Work1 10 km 20 km 30 km 40 km 50 km
1
PV $200,000 $400,000 $600,000 $800,000 $1,000,000
1 - Cumulative value
Budget at Completion (BAC) = $1,000,000
At the End of Expected Work to be completed 20 km
Month 2 – PV, Actual Work completed 18 km
EV, AC Planned Value (PV) $400,000
Earned Value (EV) $360,000
18
= ( ) ∗ $400,000
20
= $360,000
Actual Cost (AC) $425,000
At the end of Schedule Variance (SV) Cost Variance (CV)
Month 2 – = 𝐸𝑉 − 𝑃𝑉 = 𝐸𝑉 − 𝐴𝐶
Variance = =
Analysis $360,000 − $400,000 $360,000 − $425,000
= −$𝟒𝟎, 𝟎𝟎𝟎 = −$𝟔𝟓, 𝟎𝟎𝟎
Negative SV; project behind schedule Negative CV; project over budget
Schedule Performance Index (SPI) Cost Performance Index (CPI)
𝐸𝑉 𝐸𝑉
= =
𝑃𝑉 𝐴𝐶
$360,000 $360,000
= =
$400,000 $425,000
= 𝟎. 𝟗 = 𝟎. 𝟖𝟒𝟕
SPI < 1; project behind schedule CPI < 1; project over budget
At the end of Assuming trends till Assuming trends till Assuming trends till date
Month 2 – date are atypical and date are typical and are typical and both CPI
Estimate at won’t impact later only CPI impacts and SPI impact
= 𝐴𝐶 𝐵𝐴𝐶 𝐵𝐴𝐶 − 𝐸𝑉
Completion = = 𝐴𝐶 +
+ (𝐵𝐴𝐶 − 𝐸𝑉) 𝐶𝑃𝐼 𝐶𝑃𝐼 ∗ 𝑆𝑃𝐼
(EAC) Forecast $1,000,000
= $425,000 = $425,000
= $1,000,000 − $360,000
+ ($1,000,000 0.847
= $𝟏, 𝟏𝟖𝟎, 𝟔𝟑𝟖 +
− $360,000) (0.847 ∗ 0.9)
= $𝟏, 𝟎𝟔𝟓, 𝟎𝟎𝟎 = $𝟏, 𝟐𝟔𝟒, 𝟓𝟔𝟒
At the end of As planned As per current EAC
Month 2 – To 𝐵𝐴𝐶 − 𝐸𝑉 𝐵𝐴𝐶 − 𝐸𝑉
= =
Complete 𝐵𝐴𝐶 − 𝐴𝐶 𝐸𝐴𝐶 − 𝐴𝐶
$1,000,000 − $360,000 $1,000,000 − $360,000
Performance = =
$1,000,000 − $425,000 $1,180,638 − $425,000
Index (TCPI)
= 𝟏. 𝟏𝟏𝟑 = 𝟎. 𝟖𝟒𝟕
Forecast TCPI > 1; project harder to TCPI < 1; project easier to
complete complete

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 Project Management Quintessence

Project Quality Management

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 Project Management Quintessence

Project Quality Management

Introduction Quality guru Philip Crosby (1926-2001) defined quality as ‘conformance to
requirements’. Crosby, the author of “Quality is Free”, further said
 The definition of quality is conformance to requirements
 The system of quality is prevention
 The performance standard is zero defects
 The measurement of quality is the price of non-conformance
(Source: Wikipedia.org)
Five Levels of 1 Do nothing Customers find the defects From external
Quality stakeholder
Management (1 2 Control Project team detects defects and Inspection
being the Quality corrects them
lowest and the 3 Perform Project team examines and may Prevention
Quality change a process
easiest)
Assurance
4 Plan Quality Project team plans and designs Quality
quality into the product and the planning
project
5 Nurture Organisational culture that is aware Institutionalised
Quality of and committed to quality quality
Culture
Trade-off Definition Example
between Grade Grade is based on features that the Different car models have the same
and Quality product provides over and above the common functionality but differ in
underlying basic features. Fewer size, acceleration or interiors. Each
features mean lower grade and model signifies different grade.
more features, higher.
Quality is defined as the product A car meeting performance
features working as required. requirements consistently makes it a
high quality product.
Low grade product can be of high quality and vice versa.
Trade-off Attribute sampling. Result Measure of a sample can take only
between conforming or not to the binary values. Yes or No, Go or No
Attribute and specification. Go, Pass or Fail.
Variable Variable sampling. Measuring the Measure of a sample can take
Sampling result on a continuous scale to get continuous values. Showstopper,
the degree of conformity. Minor variance, Major variance,
Enhancement
Project Plan Quality Identify quality requirements and/or standards for the
Management Management project and its deliverables, and document how the project
Processes will demonstrate compliance.
Source: Manage Translate the quality management plan into executable
PMBOK® Guide Quality quality activities that incorporate the organisation’s quality
policies into the project.
Sixth Edition
Control Monitor and record the results of executing the quality
Quality management activities to assess performance and ensure
the project outcomes are complete, correct, and meet
customer expectations.

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 Project Management Quintessence

Plan Quality Management

Introduction The key benefit of this process is that it provides guidance and direction on how
quality will be managed and verified throughput the project.
Quality relies on standardisation at project, organisation and industry levels.
Industry E.g. IATF (International Automotive Task Force) standards for the automotive
Standards industry.
Organisational The organisation may adapt industry standards or parts of it.
Standards It may set quality objectives. E.g. halve the response time for an online banking
application.
Project Specific Verification of deliverables against project objectives and requirements.
Test and Specific deliverables and processes are subjected to quality reviews.
Inspection Procedures for non-conformance, corrective actions and continuous
Planning improvement get defined. These methods depend greatly on the application
area.
Metrics “You can't control what you can't measure” Tom DeMarco, Software
Engineering pioneer (1940 - )
 Determined by project objectives and process improvement targets
 Project metrics e.g. Cost Performance Index, Schedule Variance,
Customer Satisfaction Score
 Product metrics e.g. Number of defects, Response time improvement,
Downtime
Key  Project Quality Management Plan
Deliverables  Quality Metrics
 Process Improvement Plan

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 Project Management Quintessence

Plan Quality Management Tools and Techniques

Data Gathering Benchmarking Learning from and applying proven practices followed by
the industry leaders
Brainstorming Meeting in a group to create ideas without being
evaluative.
Interviews Meeting stakeholders one-on-one to firm up requirements
by open ended and close ended questions.
Data Analysis Cost Benefit Ensuring that the costs incurred for quality are justified by
Analysis a benefit. E.g. improvement in productivity.
Cost of External Failure (Failures found by the

Conform
Quality customer) E.g. Warranty

Cost of
Non-

ance
Internal Failure (Failures found by the
project team) E.g. Rework
Conform Appraisal (Assess the quality) E.g.
Testing
Cost of

ance
Prevention (Build quality product) E.g.
Training
Data Flowcharts Sequencing the steps and possible branching all the way
Representation from inputs to outputs of a process
Logical Data Visually representation of organisation’s data described in
Model business language. Maintain data integrity
Matrix Representation of strength of relationship between
Diagrams different factors, causes and objectives
Mind Diagrammatic representation of various perspectives of a
Mapping problem or solution without the constraints of fitting into
the usual structures of paragraphs, sentences, bullet points
etc.
Decision Multi-criteria Selection of the best from multiple alternatives. Specific
Making Decision criteria with weightages may be used to compare and rank
Analysis alternatives

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 Project Management Quintessence

Manage Quality
Introduction The purpose of this process is to give the stakeholders confidence in the
project quality by
 Ensuring compliance to the quality management plan
 Finding ineffective processes and causes of poor quality
 Ensuring that design guidelines are followed to make optimal and
mature product
Everyone including the project manager, team, sponsor and customers,
work towards managing quality.
Tools and Checklist Documented set of required steps to be performed or
Techniques requirements to be fulfilled. Useful for frequently
performed tasks.
E.g. verification of acceptance criteria before releasing a
product.
Data Analysis May include analysis of alternatives, documents, process,
and root cause.
Multi-criteria Selecting the best from multiple alternatives. Specific
Decision evaluation criteria with weightages may be used to
Analysis compare and rank. Applies to product and project.
Data Affinity Diagrams: Organisation of potential causes of
Representation defects, for example, into self-evident clusters for easier
analysis.
Cause and Effect / Fishbone Diagrams: Breakdown of
causes into distinct branches for a given problem
statement. Ultimately would lead to the root cause.
Flowcharts: Sequence of steps from inputs to outputs of a
process. Uses specific symbols. E.g. Diamond for a
decision point. May lead to finding a defect.
Histogram: Vertical bars representing numerical data. E.g.
number of defects in each deliverable.
Matrix Diagram: Represents the strength of relationship
between different factors, causes and objectives.
Scatter Diagram: Verifies if there is a correlation between
the given two or more parameters.
E.g. Verify if there is correlation between times spent in
reviews against the number of defects found.
Audits Structured process that looks for compliance of actual
activities (and not the results) with the planned quality
processes. Done by an external team.
E.g. Actual metrics complying with the planned metrics
Key Outputs  Quality Report
 Test and Evaluation Documents
 Change Request

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 Project Management Quintessence

Control Quality
Introduction The basic purpose of this process is to measure and record the results of
quality activities and ensure that the project outputs are complete and
correct.
Key Outputs  Quality Control Measurements
 Verified Deliverables
 Validated Change Requests
 Work Performance Information
 Change Requests

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 Project Management Quintessence

Control Quality Tools and Techniques

Data Gathering Tool Description
Checklist Documented set of required steps to be performed or
requirements to be fulfilled. Useful for frequently
performed tasks. E.g. verification of acceptance criteria
before releasing a product.
Check Sheet Templates or forms for collecting data. Ensures that
nothing essential is missed. E.g. defect log
Statistical Samples to measure control and verify quality from a
sampling large population. Sample size and frequency decided
during planning
Questionnaires Data on customer satisfaction gathered after the release
and Surveys of the product
Data Analysis Performance Actual metrics measured, compared and analysed against
Reviews the threshold values as stated in the plan
Root Cause Basic underlying reason for a defect or variance. May
Analysis involve multiple iterations till all actionable causes are
identified
Inspection Inspection Deliverables examined to check if they conform to
acceptance criteria and other relevant standards.
Testing / Testing / Tests to find errors, defects and non-conformance in
Product Product general. Test is successful if it finds errors.
Evaluations Evaluations
Data Cause and Breakdown of causes for a given problem statement into
Representation Effect / distinct branches. Multiple iterations lead to the root
Fishbone cause.
Diagram
Control Chart Used to check if the performance of a process is stable
within a finite range between upper and lower control
limits. Corrective and preventive action may be needed if
a control limit is exceeded.
E.g. Tracking schedule variance every week within control
limits of ±0.5 days.
Histogram Vertical bars representing numerical data. Used for
comparison E.g. number of defects in each deliverable.
Scatter Verifies if there is a correlation between the two or more
Diagram parameters.
E.g. Verify if there is correlation between times spent in
reviews against defects found.

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 Project Management Quintessence

Project Resource Management

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 Project Management Quintessence

Project Resource Management

Introduction Resource management ensures the availability of right resources at the right
time and place to the project manager and the team.
Resources are seldom owned by the project manager. They are generally
owned by a functional manager. They are “lent” to the project manager.
Types of Type Resources Nuances to manage
Resources Team Human resources  Varied skill sets
 Part or full time
 Motivation levels
Physical Equipment, materials,  Numbers
facilities and  Quantities
infrastructure  Incoming quality
 Optimised levels of inventory
Team This would involve acquiring the people, managing them, motivating them to
Management create an empowered team.
It is recommended that the team be Involved in planning to get their
commitment. This would also help develop expertise.
Leadership The project manager should be able to create a highly satisfied, motivated and
ethically committed team notwithstanding
 Organisational environment
 Geographical location
 Internal and external politics
 Cultural nuances
Physical The project manager should ensure that resources are
Resources  Allocated in time
 Used and not wasted
 Optimised for levels of inventory, neither too much nor too less
Project Plan Define how to estimate, acquire, manage, and utilise
Management Resource physical and team resources.
Processes Management
Source: Estimate Estimate team resources and the type and quantities of
PMBOK® Guide Activity material, equipment, and supplies necessary to perform
Sixth Edition Resources project work.
Acquire Obtain team members, facilities, equipment, materials,
Resources supplies, and other resource necessary to complete project
work.
Develop Improve competencies, team member interaction, and the
Team overall team environment to enhance project performance.
Manage Track team member performance, providing feedback,
Team resolving issues, and managing team changes to optimise
project performance.
Control Ensure that the physical resources assigned and allocated
Resources to the project are available as planned, as well as
monitoring the planned versus actual use of resources, and
performing corrective action as necessary.

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 Project Management Quintessence

Plan Resource Management

Introduction This process helps in deciding the approach (for example, internal or
external resources) and the management effort (for example, scarce
resources needing more management involvement) required for
managing the team and physical resources.
Resources could be available from within or outside the organisation.
Other projects in the organisation may be vying for the same scarce
resources.
Planning for resources is important because unavailability of resources
would impact schedule, cost, quality and other project areas.
This process applies to team and physical resources.
Data Work Work packages in a WBS can show high level
Representation Breakdown responsibility and the resources assigned.
Techniques Structure
Organisational Hierarchy of resources in the organisation with
Breakdown reporting relationships. Work packages or activities
Structure can be shown under the relevant part of the
organisation.
Resource Hierarchy of team and physical resources based on
Breakdown the type and category. The lowermost elements in
Structure conjunction with the WBS can be used for planning,
monitoring and control.
Assignment Shows work packages or activities assigned to
Matrix resources. Conversely responsibilities of each
resource to work packages or activities.
RACI (Responsible, Accountable, Consult, Inform) is
an example of Assignment Matrix. For each work
package shows which resources would be
Responsible, Accountable, (To be) Consult(ed) and
(To be) Inform(ed). Conversely for each resource,
shows specific work packages and the role - R, A, C
or I.
Text Description of Responsibilities, Authority, Skills, Job
Description Description. Sometimes called position description.
Organisation May help in making decisions, about the span of control, number of
Theory levels, co-location of team members etc.
Key Deliverable Resource Management Plan may contain
Method for identifying resources Project organisation chart
Method for quantifying resources Training
Guidance on acquiring resources Team development
Roles and responsibilities Resource control
Recognition plan
Key Deliverable Reduces friction between team members. By agreeing on acceptable
– Team Charter behaviours e.g. on meeting rules, mail communication or code of
conduct.

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 Project Management Quintessence

Estimate Activity Resources

Introduction This process estimates the team resources and the quantities of
material, equipment and supplies needed to successfully run the project.
This process applies to team and physical resources.
Methods Technique Description
Alternative For example, manual work versus automated
Analysis work.
Published For example, productivity data from an industry
Industry Data body
Bottom-up Breaking down of the activity to its lowermost
estimating components to get accurate estimates. Requires
information and time.
Analogous Based on similar activity from a past project.
estimating Quick but not accurate.
Parametric One or more parameters are extrapolated using
estimating statistics to get the estimate
For example, estimated size of the code can be
extrapolated to the number of resources.
Resource Contains the following, which could influence estimates
Calendar  Resource skills
 Resource availability or non-availability at specific times due to
holidays or specific shifts
 Resource location
Deliverables  Resource Requirements for each work package or activity
 Resource Breakdown Structure
 Basis of estimates

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 Project Management Quintessence

Acquire Resources
Introduction This process helps obtain physical and human resources required for the
project. This process helps in selecting and assigning resources to work
package or activities.
This process applies to team and physical resources.
Methods / Internal Resources are controlled by the functional or resource
Techniques of resources managers and are assigned to the project for specific
Sourcing work.
External Resources can be obtained from outside the
resources organisation. There may be policies and regulations for
external procurement
Pre- Resources assigned to the project leaving less choice
assignment for the project manager. For example, a customer may
ask for a specific resource.
Virtual team Resources with right skills and experience may not be
available within the budget at the project location. This
situation may necessitate forming a virtual team
Members of such a team would be spread across
geographies, locations, time zones and work shifts.
Decision Team selection involves making decisions. A project
making manager may consider factors like experience (for team
resources), availability and cost (for team and physical
resources).
Interpersonal The project manager may have to negotiate with and influence
and Teaming functional managers, other managers and external suppliers for
Skills resources. He / she cannot also wish away organisational politics and
may have to navigate his / her way through.
Key  Physical Resource Assignments
Deliverables  Team Resource Assignments
 Resource Calendars

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 Project Management Quintessence

Develop Team
Introduction This process involves improving competencies, team interactions and
overall team environment to enhance project performance. This process
does not apply to physical resources.
Teamwork is a critical factor for the project to succeed.
This process applies to team resources.
Development Co-location The team or part of it works out of the same
Techniques physical location, for the entire project or its part.
May extend into meeting rooms, wall charts, etc.
Virtual team This helps to get better talent and reduce costs
especially travel. Some team members could also be
placed close to customers or suppliers.
Communication Helps in harmonious working of the team. Examples
technology include shared portal, audio conferencing, video
conferencing, e-mail / chat
Interpersonal Conflict Conflicts in a project are
and Team skills management inevitable. Need to resolve them
in a timely and just manner.
Influencing Project team members often do
not report to the project manager.
He / she has to influence the
stakeholders for human resources.
Motivation The project team should be
effectively engaged with the
project. This would happen if the
team is empowered to take
decisions and encouraged to work
independently.
Negotiation The project manager and team
may negotiate to arrive at
consensus on project matters. This
leads to trust and harmony in the
team.
Team These activities need to be
building consciously planned. Could be a
simple team lunch or highly
involved outdoor activities
facilitated by an expert.
Recognition Should be given to set example of desirable
and rewards behaviours and practices. Cultural nuances should
be considered. Should be given in the right time.
Non-monetary awards can also be effective.
Key Deliverable Team Performance Assessments. Done formally and informally at
regular check points to assess the team’s competencies, motivation
levels and any impediments to project work.

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 Project Management Quintessence

Tuckman Ladder
Introduction This model comes in handy to understand development of a team. It
shows team development as a five-stage process, with the stages
happening one after the other. The approach to manage the team would
be based on its current stage.
Tuckman Stage Team behaviour
Ladder Forming Team members understand the project, roles and
responsibilities. Formal non-committal interactions.
Project manager gives a push to overcome inertia.
Storming Team members address work, take up responsibilities,
and make decisions. This may induce conflicts. Project
manager watches out for conflicts turning dysfunctional.
Norming The team members work together, adjust their work
habits and behaviours and respect differences. The
project manager ensures that issues are not overlooked.
Performing The team is now an interdependent and cohesive. Group
norms are practised. Dissent is welcome. The project
manager does not intervenes much.
Adjourning The project or phase is complete and the team is
disbanded. The project manager ensures smooth and
sensitive closure.
Exceptions Team may get stuck at a stage and may need a nudge to move on.
When there is a change in the team, it may regress to an earlier stage.
Team which has worked together earlier can skip a stage.

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 Project Management Quintessence

Thomas Kilmann Conflict Mode Instrument

Introduction Conflicts are inevitable in a project team. Project manager needs to
resolve the conflicts in a timely and just manner. A team without any
conflict at all, is too good to be true. It indicates lack of initiative and
creativity.
Reasons for  Competition for shared resources
conflict  Scheduling priorities
 Personal work style
Conflicts can be reduced by having ground rules, group norms and solid
project management practices like role definition and communications.
Resolution The project manager should empower team members to resolve
conflicts within themselves. However if a conflict is not resolved soon,
the project manager should facilitate the resolution. Conflicts should
usually be resolved in private using a direct collaborative approach.
Sometimes the project manager may have to take disciplinary action to
resolve a conflict.
Five General Withdraw/avoid Get away from interactions which lead to
Techniques of conflict. Do nothing. Appropriate when you
conflict want to buy time.
resolution Smooth/accommodate Concede your position to maintain harmony
and relationships. Appropriate when you
want to create a relationship.
Compromise/reconcile Let go something to get something. The
other party does the same. Appropriate
when you want to make some headway in
the conflict.
Force/direct Push your viewpoint at the expense of
others. Appropriate when it is a crisis and
you are convinced about your position.
Collaborate/problem Resolve the problem through consensus and
solve commitment. Appropriate when the two
parties trust each other deeply.

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 Project Management Quintessence

Manage Team
Introduction This process helps in tracking the performance of the project team. It
ensures that the team performance translates to project performance.
Corrective actions like giving feedback to team members, resolving
issues, managing team changes, all take place here.
This process applies to team resources.
Interpersonal Conflict Conflicts in a project are inevitable. Need to resolve
and Team skills management them in a timely and just manner.
Emotional Emotion and work cannot be separated. The project
intelligence manager should be aware of his / her emotion. Only
then he / she would be able to understand a team
member’s emotion and empathise with him or her.
Team with emotionally intelligent members
performs better.
Influencing Project team members often do not report to the
project manager. He / she has to influence the
stakeholders for getting people in the project team.
Leadership Project managers need to have strong leadership
skills to lead and inspire teams. There are many
leadership theories to apply in different situations.
The project manager should be able to communicate
vision for the project and inspire the team to achieve
high performance.
Key Deliverable Change request, to make changes to staffing, for example.

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 Project Management Quintessence

Control Resources
Introduction This process ensures that resources planned for the project are assigned
at the right time and place. Once assigned, the resources are utilised
optimally, including releasing the resources when not needed. In case of
any deviation, corrective action is initiated.
This process applies to physical resources.
Data Analysis Alternatives analysis To correct a deviation various alternatives
may be available for comparison.
Cost-benefit analysis Cost versus benefit for various alternatives
can be looked at.
Performance reviews Planned versus actual resource availability
and utilisation can be compared. Ditto scope,
schedule and cost, which would link to
resources.
Trend analysis Actual resource availability and utilisation can
help in forecasting future excess resources or
shortfall.
Interpersonal Negotiation The project manager and team may
and Team Skills negotiate for physical resources. This would
lead to trust and harmony with the
stakeholders.
Influencing Project resources often do not belong to the
project manager. He / she has to influence
the stakeholders for getting physical
resources.
Key  Change Requests: To correct or prevent variances.
Deliverables  Work Performance Information: To inform about planned
against actual performance in terms of metrics.

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 Project Management Quintessence

Project Communications Management

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 Project Management Quintessence

Project Communications Management

Introduction Project stakeholders need information about the project regularly. It is the
project manager’s responsibility to ensure that the right stakeholder gets the
needed information at the right time. The project manager also ensures that a
stakeholder understands the information correctly. The PM cannot send the
information and sit back.
Communications have to be effective – understood as intended, and efficient
– not involving undue effort.
Basics Project generates lots of information e.g. Work Performance
Information from monitoring and controlling processes. Stakeholders
expect information relevant to them be communicated. It is about
bridging the stakeholders with the information
Balancing Dimension Counterpart
Dimensions of Verbal: Using words to Non-verbal: Not using words to
Communication communicate. E.g. saying “safe communicate. E.g. showing thumbs
flight” to an air traveller. up sign to an air traveller conveying
“safe flight”.
Oral: Speak e.g. using a phone. Written: Write e.g. using email.
Horizontal: At peer level. Vertical: Top down or bottom up
along the hierarchy.
Formal: e.g. Contract Informal: e.g. conversation over
phone
The above dimensions need to be balanced with its counterpart. E.g. oral
communication needs to be followed by written communication for keeping
records.
5 C’s for  Correct grammar and spelling
Traditional  Concise expression and elimination of excess words
(Non-social  Clear purpose and expression directed towards the needs of the
media) Written reader
Communications  Coherent logical flow of ideas
 Controlling flow of ideas
Project Plan Developing an appropriate approach and plan for
Management Communications project communication activities based on the
Processes Management information needs of each stakeholder or group,
Source: PMBOK® available organisational assets, and the needs of the
Guide Sixth project.
Edition Manage Ensuring timely and appropriate collection,
Communications creation, distribution, storage, retrieval,
management, monitoring and the ultimate
disposition of project information.
Monitor Ensuring that the information needs of the
Communications stakeholder are met.

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 Project Management Quintessence

Plan Communications Management

Introduction The key benefit of this process is having a documented approach to effectively
and efficiently engage stakeholders by presenting relevant information in a
timely manner.
Shannon-
Weaver Model

Communication models help in planning communications.

Here, the sender encodes the message with specific symbols. The receiver
decodes the message. The sender’s encoder and receiver’s decoder may not
match. To make it worse, the medium may also add noise.
Therefore the receiver sends a feedback message. This process iterates, till
the receiver understands the message as the sender had intended.
Communication Method Examples Description
Method Pull Notice board, Web page, The receiver has the choice to take
Television in public place the message or overlook.
Push Letter, Memo, Email Addressed to specific receiver.
Sender needs less effort to
encode.
Interactive Meeting, Phone call, In real time, hence effective.
Video conference Needs more coordination effort.
Communication Various inputs like stakeholder information and communication
Requirements requirements, communication channels available and project organisation,
Analysis are analysed to determine optimised stakeholder communication needs in
terms of type, format and value delivered.
Communication Consideration Description
Technology Urgency of the More urgent the need, the technology has to be
Choice information needs faster and reliable.
Ease of use Intuitive and easy to learn and comprehend
Reliability Works every time the same way. Does not fail.
Security Protects from tapping, snooping, pilferage
Key Deliverable Communications Management Plan
 Sender  Format / Structure
 Information  Timing and frequency
 Approver  Escalation
 Receiver  Agreement on the plan
 Medium

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 Project Management Quintessence

Manage Communications
Introduction This process helps in ensuring that communications take place as planned. It
makes sure that the information goes through these stges – Collection,
Creation, Distribution, Storage, Retrieval, Management, Monitoring, and
Disposition - in appropriate and timely manner.
Communications Communications does not happen only through structured language. Voice
- Intended and intonation and body language play much more significant part, most of the
Unintended times without conscious control. In case of mismatch between the word and
intonation or body language, the former gets overlooked.
Therefore the project manager needs to ensure that communications are
effective. The message understood is no different from message sent.
Inputs Apart from executing the communication management plan, and the
stakeholder engagement plan
 Issue log
 Change log
 Lessons learnt;
have also to be communicated appropriately at the right time
Communication The technology and method chosen should be appropriate to the need.
Technology and
Methods
Communication Skill Description / Example
Skills Communication For example, clarity of purpose in the message, use of
competence right words, use of right context
Feedback Message based on facts, deliverable or situation
Non-verbal Awareness and control of voice intonation, body
language
Presentations Right balance between slide content and the speaker’s
narration
Project Stakeholders need information about the project periodically in a format and
Reporting frequency of their convenience. Work Performance Report, is an output of
Monitor and Control Work process. This process takes care of ad hoc reports,
presentations, blogs and the like beyond the Work Performance Report.
Interpersonal Skill Description / Example
and Team Skills Active listening It is listening to the other person with intent to
understand. Not to make him / her understand you.
Conflict Conflict in a project is inevitable and needs to be
management managed.
Cultural There is tremendous diversity of cultures across peoples.
awareness Communication should not overlook cultural sensitivities.
Meeting Project teams spend substantial time in meetings. By the
management end of the meeting, agenda should get covered. Every
participant should find the meeting relevant.
Networking It is sharing information and developing contacts. Likely
to lead to getting opportunities and support, in general.
Political It is the recognition of power both formal and informal
awareness and managing one’s way around it.
Key Deliverables Project Communications: The message that gets delivered to the stakeholder.
Organisational Process Asset updates: For example, meeting minutes.

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 Project Management Quintessence

Monitor Communications
Introduction This process monitors communications to ensure that the needs of the
stakeholders and project are met.
Inputs This process monitors the following and compares what is communicated
against the actual and issues thereof.
Issue log / Change Contains the details of issues / change requests
log raised by the stakeholders. For example, description,
dates, status of issues. Indicative of effectiveness of
communications.
Project The messages, mails, reports etc. which the
communications stakeholders get from the project.
Work performance Indicative of the performance of the project.
report
Stakeholder This matrix shows the current and desired level of engagement with the
Engagement stakeholders. This is a good indicator of communication being effective
Matrix
Observation and Informal but structured observations and conversations can help expose the
Conversation reality of the project situation. Formal meetings may not be able to expose the
reality completely.
Key Deliverables Change request based on observed deviations. E.g. change in the format of a
report.
Work performance information: Indicative metric of communication being
effective. E.g. average age of open issues.

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 Project Management Quintessence

Project Risk Management

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 Project Management Quintessence

Project Risk Management

Introduction Project manager and the team diligently plan for the project to succeed. But
project by definition being unique, the plan can never be fool proof. There
would be uncertainties, favourable and not favourable. As a project is also time-
bound, one cannot wait for every uncertainty to be resolved.
All projects are risky.
Project risk management is about meeting project objectives in spite of
uncertainties.
Success Factors  Recognise the value
 Individual commitment / responsibility
 Open and honest communication
 Organisational commitment
 Scale risk effort to project
 Integration with project management
Definition Risk, an uncertain event or an uncertain condition, if it were to occur there
would be positive or negative impact on project objective(s). Risk can be at
individual risk level or at the entire project level.
Risk Threshold Stakeholders have risk appetite which reflects in risk thresholds. Stakeholders
can state the maximum deviation from objectives that they could accept. Risk
threshold impact the risk response plans. It is advisable that the risk threshold
be documented.
Project Plan risk Defining how to conduct risk management activities
Management management
Processes Identify risks Identifying individual project risks as well as sources
Source: and documenting
PMBOK® Guide Perform Prioritising individual risks for further analysis or
Sixth Edition qualitative action by assessing their probability of occurrence and
risk analysis impact as well as other characteristics
Perform Numerically analysing the combined effect of
quantitative individual risks and other sources of uncertainty
risk analysis
Plan risk Developing options and agreeing on actions to
responses address overall project risk exposure, as well as to
treat individual risks
Implement Implementing agreed upon risk response plans
risk responses
Monitor risks Monitoring the implementation of agreed upon
response plans, tracking identified risks, identifying
and analysis new risks, and evaluating risk process
effectiveness throughout

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 Project Management Quintessence

Plan Risk Management

Introduction This process describes how risk management activities would be conducted.
Key Deliverable Risk management plan containing, but not limited to
 sources from which risk information would be taken
 definition of probability and impact
 risk threshold
 budget available for risk management
 frequency at which risks would be reviewed

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 Project Management Quintessence

Identify Risks
Introduction This process identifies and documents all the risks without any judgement. It is
essential that no risk be ignored. As a result of this process, individual risks and
sources of overall project risks get documented together.
Risk Information Source Examples
Sources Organisational Lessons learned
process assets Checklist / Prompt list
Risk breakdown structure
Project baselines and Assumptions in the scope baseline
documents Work elements requiring new technology in the
WBS
Optimistic cost estimates in the budget
Optimistic resource assignment in the staffing plan
Stakeholders Operational perspective from the project manager
Political perspective from the sponsor
Market perspective from the customer
Technology perspective from the team
Articulation Articulation of a risk in a structured construct helps in risks management.
Sample Construct 1: IF <EVENT> THEN <IMPACT>
Sample Construct 2: IF <CAUSE> THEN <EVENT> THEN <IMPACT>
Key Deliverables Risk Register: Likely to contain the risk description, risk identifier, potential
owner and potential response. Developed progressively.
Risk Report: Likely to contain sources of overall project risks, summary
information about individual risks. Developed progressively.

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 Project Management Quintessence

Perform Qualitative Risk Analysis

Introduction This process helps in prioritising risks.
Qualitative The process of prioritisation can become subjective. Risks that have been
Nature of Risks identified may not be based not on hard facts but imaginary fears. Stakeholders
too have risk attitudes. Some stakeholders could be risk takers and some risk
averse.
One purpose of this process is to remove subjectivity out of risks.
Basic Risks are prioritised using probability and impact.
Parameter Probability is the likelihood of the occurrence of the risk. It is a number between
Probability 0 and 1 (or 0% and 100%) excluding 0 and 1.
Basic Impact is based on the potential effect of the risk on objectives like schedule,
Parameter cost, performance etc., if the risk were to happen. The organisation would have
Impact internal norms to decide on the impact scale. For example it could be between
0 and 5, 0 and 10 or 0 and 100.
For a threat the value of impact is negative, for an opportunity positive.
Other Urgency indicative of time on Controllability indicative of level of
Parameters hand if the risk occurs control available in case a risk occurs
Dormancy indicative of time it Detectability indicative of the visibility of
takes to discover a risk occurred risk symptoms
Proximity indicative of how soon Connectivity indicative of relatedness of
the risk would occur a risk to another
Manageability indicative of the Strategic impact indicative of risk impact
ease with which a risk on organisation’s strategy
occurrence would be managed Propinquity indicative of stakeholders’
agreement on a risk
Prioritisation Based on the multiplication product of Probability and Impact. Other
parameters may also be considered
Key Risk Register: Updated based on the priority, ownership
Deliverables Risk Report: Updated based on priority, ownership

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 Project Management Quintessence

Perform Quantitative Risk Analysis

Introduction This process provides tools for assessing project level risk in terms of clear
numbers, as a cumulative effect of individual risks and taking project level
decisions from risk perspective.
Three tools are described here as examples.
Simulation or This method models the combined
Monte Carlo effects of multiple individual risks. For
Analysis example, duration estimates. The output
would show cumulative probability
distribution (S-Curve). One can find the
probability of the project completing in
certain duration or at certain cost. Decisions regarding the quantum of
duration buffer or contingency reserve can be taken based on the S curve.
More the number of simulations better would be the accuracy of this model.
Sensitivity Thousands
This method helps find
-$20 -$10 $0 $10 $20 $30 $40 $50
Analysis or amongst many risks which one
Tornado Average Ticket Price (in $)
Low
would have the maximum
Diagram Base impact on the project
Tickets sold High
outcomes. It correlates the
Cost / game
variation in the output to the
variation in the inputs.

Decision Tree In a project there are situations where one

S has to choose between available options
B (site A, site B or site C for factory location?
B W For example.) This method helps in coming
u S to a decision from the many available
U options, backed by conclusive numbers.
Key Deliverables W
Risk Register: Updated based on Sensitivity Analysis for example
Risk Report: Updated based on overall exposure, contingency reserves

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 Project Management Quintessence

Plan Risk Responses

Introduction This process helps in being prepared before-hand with the responses to risks
based on the risk exposure.
Strategies for Strategy Description
Threats Mitigate Reduce the probability and / or the impact to an acceptable
level. The threat still exists.
Avoid Do not exercise the options where there is a threat
Accept With contingency (active acceptance) or without (passive
acceptance)
Transfer Shift the ownership to a third party who would bear the impact.
This may have costs. The threat still remains
Escalate Escalate to next level of management
The same response strategies work at individual risk level as well as project
risk level.
Strategies for Strategy Description
Opportunities Enhance Increase the probability and / or the impact to an acceptable
level. The opportunity is still not realised
Exploit Do not miss the option where there is an opportunity
Accept With contingency (active acceptance) or without (passive
acceptance)
Share Shift the ownership to a third party who would realise the
opportunity. May share part of the benefit. The opportunity is
still not realised.
Escalate Escalate to next level of management
The same response strategies work at individual risk level as well as project
risk level.
Contingency A project may keep aside contingency reserves which would be brought into
Reserves use based on certain indicators of risk.
Aleatory and Aleatory: One cannot get more information. Handled by modelling,
Epistemic Risk contingency reserves, buffers, prioritised requirements.
Epistemic: One does not know enough. Handled by acquiring knowledge,
testing, high quality inputs.
Key Deliverables Risk Register: Updated based on agreed to response strategy and plan,
symptoms
Risk Report: Updated based on agreed to response strategy and plan

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Implement Risk Responses

Introduction This process implements risk response plans. It is likely that after meticulous
planning, risk response plans may fall by the side, till a risk is realised. The risk
owners should ensure that adequate time and cost are assigned for
implementing risk response plans.
Key Deliverables Risk Register: Updated based on implemented response plans
Risk Report: Updated based on changes to risk exposure

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 Project Management Quintessence

Monitor Risks
Introduction This process monitors the implementation and effectiveness of risk response
plans. It ensures that the project level risks are within control.
Risk Checks that the risk response plans are effective by keeping a tab on
Reassessment probability, impact and any other parameters going above the threshold.
Checks for new risks.
Secondary Risks Risk response plan for one risk may create another risk, called secondary risk.
It has to be ensured that the probability and / or impact of the secondary risk
is less than the primary’s, for a threat. And more for an opportunity.
Residual Risks Risks may not get completely retired but may remain at changed levels of
probability and impact and other parameters. Called residual risks, these risks
should not be overlooked while monitoring.
Reserve Analysis Contingency reserves are kept aside to take care of risks if they occur. Ideally
reserves should decrease as the project progresses. Reserve levels need to be
monitored for any unexplained dip or rise.
Technical Risk monitoring would also include looking for product not meeting its
Performance planned performance target or capacity.
Analysis
Audit It is not unlikely that as the project gets into implementation phase, risk
management may get relegated to lower priority, resulting into some risk
occurring. In order to avoid such a situation, risk process audits would be
needed.
Work-around Sometimes, risks which were not identified may occur. In such a situation, a
work around for the time being has to be applied urgently. Root cause analysis
etc. for the unidentified risk can wait.
Key Deliverables Risk Register: Updated based on risk reassessment
Risk Report: Updated based on risk reassessment
Work Performance Information: Metric indicating risk level. For example,
exposure.
Change Request: To correct a variance that was detected. For example,
change request for additional funding to take care of an unidentified risks

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 Project Management Quintessence

Project Procurement Management

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 Project Management Quintessence

Project Procurement Management

Introduction It is not unlikely that all of what is needed for the project is not available in-
house. It could be due to lack of competence, lack of technology or not being
cost competitive.
Scope One could procure projects, services, equipment, hired equipment, raw material
etc.
Project Procurements can have significant legal obligations and penalties. A project
Manager’s manager may not have enough expertise in legal and financial matters. Besides
Limited Role contracts may use standard legal terminology. Therefore procurement authority
is generally with the legal / financial functions. The project manager may not
have signing authority on contracts but would play an advisory role.
Contract This involves agreement that describes the relationship between two parties –
between Two buyer and seller. It obligates the seller to sell goods and services in exchange
Parties for a consideration from the buyer.
Legally enforceable agreement becomes a contract. Anything that is not in the
contract cannot be legally enforced.
Contract is mutually binding. It can be changed only by mutual consent.
Law of the Contract cannot violate the law of the land. At the same time, sometimes
Land informal local customs, norms and politics may override the law. Applicable
laws could be at various levels – municipal, national and international.
Formal Agreements can be simple (purchase order, for example) or complex (multi-year
Agreements international contract with penalties).
Project Plan Documenting project procurement decisions, specifying
Management procurement the approach, and identifying potential sellers
Processes management
Source: Conduct Obtaining seller responses, and awarding a contract
PMBOK® Guide procurements
Control Managing procurement relationships, monitoring contract
Sixth Edition
procurements performance, making changes and corrections as
appropriate, and closing out contracts

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 Project Management Quintessence

Plan Procurement Management

Introduction This process helps make decisions on make or buy and documents the same. It
also outlines the approach for procurement - what, how, when to procure.
Make or Buy One may choose to buy instead of make because of the following factors
Decision  Scope, time and cost constraints
 Transfer of risk
 Shortage of resources
 Inter-company agreement
The buy option may have hidden costs which get overlooked. For example,
cost of communication.
Contract Type Less risk for the seller, more risk for the buyer. Works best when
Cost requirements are fluid.
Reimbursable Cost Plus Fixed Fee Seller gets a fixed fee in addition to the
(CPFF) reimbursement
Cost Plus Incentive Buyer shares part of cost savings with the seller.
Fee (CPIF) Negative incentive if the seller exceeds cost.
Cost Plus Award Fee Buyer gives substantial benefit to the seller based
(CPAF) on buyer’s subjective criteria.
Contract Type Less risk for the buyer, more for the seller. Works best when requirements
Fixed Price are certain.
Firm Fixed Fee (FFP) Price fixed at the outset, won’t change.
Fixed Price Incentive Incentive based on cost, schedule or scope
Fee (FPIF) performance. Ceiling price fixed beyond which
seller bears the cost
Fixed Price with Price tied to economic indicators so that the buyer
Economic Price and seller do not bear the brunt of economic
Adjustments (FPEPA) fluctuations.
Contract Type Medium risk for both the buyer and the seller.
Time and Price per unit is fixed (person hour, for example) but the number of units
Material (person hours, for example) charged to the buyer is based on the actual units.
Procurement Request for RFI: Plain more information sought
Document Information (RFI) / RFQ: Largely detail and cost-centric
Package Quotation (RFQ) / RFP: Solution for a specific problem needed
Proposal (RFP)
Procurement Portion of project scope relevant for the related
Statement of Work contract
Source Selection Criteria for evaluating proposals. May have
criteria weightages for different criteria
Procurement Any other document required to inform the bidders
documents
Source Selection For example, Capability, Price, Solvency, References, Delivery dates
Criteria
Independent By internal or external experts to get an unbiased opinion. Also helps avoid
Cost Estimates cartelisation by the bidders
Key Deliverables Project Procurement Management Plan detailing Scope, Schedule, Cost,
Strategy etc. for procurement

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 Project Management Quintessence

Conduct Procurements
Introduction This process executes the procurement management plan. Helps in inviting
sellers, selecting them and signing up contracts with the selected sellers. The
purpose of this process is to bring alignment between the buyer and the seller.
Seller Responses Responses from the potential sellers would be invited. One could go with a
qualified seller list or invite responses in general by advertising.
Sometimes separate bids, for example, one price proposal and one for
technical proposal, could be invited.
Bidder One could call for a bidder conference where information is shared with all the
Conference bidders without any discrimination or bias. A bidder may seek clarifications but
once again with the rest of the bidders listening in.
The overriding purpose is to be fair to all the bidders.
Proposal Proposals are evaluated against the selection criteria. They are also evaluated
Evaluation for completeness against the statement of work.
Negotiation The buyer organisation would negotiate with the selected bidders for work,
price, schedule etc. The purpose of negotiation is not to get what you want
and make the other party a loser. Negotiation should lead to a win-win for
both.
Contract Award Contract is awarded to sellers with whom negotiations have been successful.
Key Deliverables Selected sellers, Agreements

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 Project Management Quintessence

Control Procurements
Introduction This process ensures that the contractual obligations are met by both the
buyer and the seller. Work gets done and completed as per the agreement. In
case of a deviation, corrections are suggested. This process includes closure of
the contract as well.
Maintaining The two contracting parties need to ensure that they fulfil the obligations as
Relationships per the contract. At the same time they have to ensure that other party’s legal
rights are protected.
Monitor and Techniques which are used for managing an in-house project, Earned Value
Control Analysis, Trend Analysis, Inspections and Audits would also be valid here.
Performance Work Performance Data is monitored to get to know the project status.
Work Related There is close relationship between payments made and work accomplished.
Payments Financial compensation is linked to the seller’s progress. The project manager
may advice on the completion of work to the finance function.
Claims In a project there may be contested changes, with the buyer and seller not
Administration coming to agreement. Buyer may not agree that a change has occurred. Seller
may want compensation for the change.
These are called as claims. However, work does not stop because of claims.
Claims may get processed in parallel to work being done.
Claims not settled turn into disputes. These may be appealed to a mutually
agreed Alternative Dispute Resolution (ADR) mechanism. Finally if this too
does not work there is legal recourse. Ideally disputes should be resolved by
negotiations.
Key Deliverables Change request, Closed procurements, Work performance information

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 Project Management Quintessence

Project Stakeholder Management

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 Project Management Quintessence

Project Stakeholder Management

Introduction Project is likely to have many and varied stakeholders. Project gets created with
the informed consent of the stakeholders.
Definition of Individual, group or organisation which impacts, gets impacted by or perceives
Stakeholder to be impacted by the project activities, decisions or outcomes.
Typical Project Sponsor, Customer, End customer, Client, Vendors, Project team, Project
Stakeholders management team, PMO
Engagement One has to ensure that stakeholders are appropriately engaged and not
acquiesced to. Some indicators of engagement would be
 Understanding
 Communicating
 Addressing issues
 Managing conflicting interests
 Participation in execution
• Participation in decision making
Importance of Stakeholders have significant or limited, positive or negative influence on the
Stakeholders project. Rather than a knee jerk reaction to stakeholder’s expectations, project
manager needs to have a structured approach. Engagement of a stakeholder
can differentiate between success and failure of the project.
Project Identify Identifying project stakeholders regularly and analysing
Management stakeholders and documenting relevant information regarding their
Processes interests, involvement, interdependencies, influence and
Source: potential impact on project success
PMBOK® Guide Plan Developing approaches to involve project stakeholders to
stakeholder meet their needs and expectation, interests, and potential
Sixth Edition
engagement impact on the project.
Manage Communicating and working with stakeholders to meet
stakeholder their needs and expectations, address issues, and foster
engagement appropriate stakeholder engagement involvement
Monitor Monitoring project stakeholder relationships and tailoring
stakeholder strategies for engaging stakeholders through the
engagement modification of engagement strategies and plans

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 Project Management Quintessence

Identify Stakeholders
Introduction This process helps identify stakeholders and their interest, involvement
influence etc. This process gives appropriate focus for engaging the
stakeholders. Engaging with the stakeholder without focus may lead to missing
on important stakeholders.
This process should be deployed early on and frequently.
Stakes in the Stakeholders may have varied stakes in the project. For example
Project Interest (in the outcome): a doctor looking forward to the cure for a disease
Rights (legal and moral): an affected community which is empowered to veto
a project
Ownership: an investor in the project who expects returns
Knowledge: an expert consultant who can help the project to succeed
Contribution: a team member who wants to learn
Questionnaires These can be used to elicit expectations from the stakeholders. Specific
and Surveys information can be sought from the stakeholders by relevant design of
questions.
Brainstorming This is an idea generation technique. Team members and subject matter
experts meet with the project manager facilitating. Ideas generated can be
around identifying stakeholders and their possible influence on the project.
Power Interest This is a technique used in stakeholder analysis using power (level of authority)
Grid and interest (level of concern for the project outcome) as the coordinates.
Groups the stakeholders under four groups. This can be a broad based input
for planning stakeholder engagement.
Power Interest Group
High High Key players
High Low Keep satisfied
Low High Show consideration
Low Low Least important
Salience Model Another technique for stakeholder analysis. Interest is replaced by urgency
(need for immediate attention). New parameter legitimacy (appropriate
involvement) gets added.
Power Legitimacy Urgency Categorisation
1  Dormant
2  Discretionary
3  Demanding
4   Dominant
5   Dangerous
6   Dependent
7    Definitive
8 Non stakeholders
Prioritisation If the number of stakeholders turns out to be large, the project manager may
have to prioritise the stakeholders and maintain the correct focus.
Key Deliverables Stakeholder Register containing Identification Information (e.g. Name),
Assessment Information(e.g. Expectations), Stakeholder Information (e.g.
Customer)
Change Request

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 Project Management Quintessence

Plan Stakeholder Engagement

Introduction This process helps in developing a specific approach and plan for engaging
with the stakeholders based on the inputs gathered in identifying
stakeholders. This process gives an actionable plan to work with the
stakeholders.
Stakeholder A stakeholder may be engaged with the project at one of the following levels.
Engagement Engagement Level Description
Levels Unaware Does not know about the project
Resistant Knows about and opposed to the project
Neutral Aware of the project but neither supports nor opposes
Supporting Aware of the project. Supports when needed
Leading Aware of the project. Leads it, gives directions
Stakeholder Unaware Neutral Resistant Supporting Leading
Engagement Stakeholder 1 Current Desired
Matrix Stakeholder 2 Current Desired
Stakeholder 3 Current Desired
The stakeholder engagement plan shall detail the approaches to effect change
from the current level to the desired level.
Key Deliverables Stakeholder Engagement Plan containing
1.Desired and current engagement levels
2. Engagement approach
3. Identified relationships and potential overlap
4. Stakeholder communication requirement
5. Information to be distributed

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 Project Management Quintessence

Manage Stakeholder Engagement

Introduction This process attempts to increase support, minimize resistance and thereby
increase project’s chances of success. Influence of the stakeholders should
reduce as the project progresses.
This process helps in fostering appropriate level of involvement from the
stakeholders.
The project manager needs be competent at interpersonal and team skills.
Observations / Informal but not overtly structured meetings in the corridor, cafeteria etc. Can
Conversations help engaging stakeholders. The conversations need to be light. Observations
should be subtle.
Negotiation The project manager and stakeholders may negotiate to arrive at consensus
on project matters. This leads to trust and harmony with the stakeholders.
Active Listening It is listening to the other person with intent to understand. Not to make him /
her understand you. If practiced well this can be an effective technique.
Ground Rules Honouring ground rules e.g. response time to mails between project
stakeholders will help in reducing friction and improve engagement
Political Politics are bound to be there in an organisation. One has to recognise power
Awareness politics both formal and informal and managing one’s way around it.
Communication The following skills too will help
Skills  Presentation
 Effective Meeting management
 Progress reporting
 Conflict Management
Issue Log and To track issues and change requests to closure, issue logs and change logs
Change Log need to be maintained
Key Deliverables Issue Log, Change Log

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 Project Management Quintessence

Monitor Stakeholder Engagement

Introduction This process helps monitoring the project stakeholders’ relationships. It
maintains or increases the effectiveness and efficiency of engagement
activities.
Issue Log and Apart from the other inputs, this process looks at the issue log and work
Work performance data. The earlier is a good indicator of stakeholder engagement
Performance and the later an indicator of project status.
Data
Alternative In case the engagement is not satisfactory, alternatives can be decided jointly
Analysis with the stakeholders
Root Cause This technique can help to get to the cause of any conflict with the
Analysis stakeholders.
Stakeholder These techniques can help get to the right understanding of where the
Analysis stakeholder is coming from.
Decision making Multi criteria decision making or voting can be used to decide on an approach
for better stakeholder engagement.
Communication In addition to good presentation skills, the project manager may have to give
Skills feedback to stakeholders. Feedback should be based on facts. It should
critique a process and not a person. It should be timely.
Interpersonal In addition to active listening, leadership, networking and political awareness,
and Team Skills the project managers should also appreciate cultural nuances. He / she should
have sensitivity to local norms and respect them.
Issue Log and To track issues and change requests to closure conclusively, issue logs and
Change Log change logs need to be maintained
Key Deliverables Issue Log, Change Request, Work Performance Indicator

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 Project Management Quintessence

Project Integration Management

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 Project Management Quintessence

Project Integration Management

Introduction This knowledge area contains processes which integrate project management
processes across other knowledge areas and presents a consolidated
perspective of the five process groups.
Develop Project Authorises the project or phase
Charter
Develop Project Develops a combined management plan for the entire project. Combines all
Management baselines and management plans. May also include independent management
Plan plans, for example, configuration management plan
Direct and Executes the project management plan to create project deliverables for the
Manage Project customer. Executes approved change requests. In addition to project
Work deliverables, also creates work performance data
Manage Project Ensures that project utilises existing knowledge available within the
Knowledge organisation. Also disseminate knowledge to the organisation. Both explicit
and tacit
Monitor and Checks the overall project status against the baselines and raises change
Control Project requests as stated in the project management plans. Reports project
Work performance.
Perform Ensures that change requests are implemented only after due diligence
Integrated
Change
Management
Close Project / Formally closes the project or phase
Phase

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