Project management mod 3

abilities needed when resourcing projects

1. Technical Skills Needed by Project Managers:

These are related to project planning, resource allocation, and scheduling.

• Estimating resource demands: Using techniques to predict how many people or resources are needed for
each task.

• Creating a staffing management plan: Planning how many people are needed, their roles, and when they
are required.

• Assigning people to tasks: Allocating the right number of team members to each activity.

• Identifying over-allocation: Spotting when someone has too much work at the same time.

• Scheduling with limited key resources: Creating a timeline even when few skilled people are available.

• Compressing the project schedule: Using techniques to speed up the project without reducing its quality.

2. Behavioral Skills Needed by Project Managers:

These are related to people management and team dynamics.

• Selecting the right people: Choosing team members with suitable skills and attitudes.

• Clarifying individual responsibilities: Clearly defining what each person needs to do.

• Ensuring capability or training: Making sure team members have the needed skills or providing training if
not.

• Managing difficult schedules: Handling team members' personal or work timing challenges.

• Handling conflicts & overtime: Encouraging team members to work extra hours during tight deadlines or
clashes.

• Making honest estimates: Giving realistic and open work estimates for each activity.

• Building an effective team: Creating a group that works well together.

• Managing diversity: Working well with people from different cultures, backgrounds, or working styles.

• Deciding work locations: Choosing whether people will work from office, home, or other places.

• Managing virtual teams: Helping team members in different locations work together effectively online.

Key Considerations in Project Resourcing

1. Skill Development for Team Members

 o If key team members lack certain skills, project managers should assist in developing those skills
through training or mentoring.

2. Understanding and Managing Trade-offs

o Projects involve balancing between:

▪ Time

▪ Human resources

▪ Cost

▪ Scope

o It’s important to decide which factor takes priority for the specific project (e.g., is finishing on time
more important than staying within budget?).

3. Recognizing Resource Limitations

o Project managers must be aware of limited availability of people and tools.

o This prevents over-promising deadlines or deliverables that can’t be realistically met.

4. Checking Schedule Realism

o A project may seem achievable based on the task list and estimated durations.

o But if enough resources (people, equipment, etc.) aren’t available when needed, the schedule
becomes unrealistic.

5. People as a Major Cost Factor

o Human resources are often the largest part of the project cost.

o Especially true when the project needs people with specialized skills or expertise.

Estimating Resource Needs – A Key Step in Project Resourcing

1. Start with Resource Estimation

o Begin by estimating how many resources are needed.

o Identify the type, skill, or knowledge level required for each resource.

2. Definition from PMBOK (Project Management Body of Knowledge)

o Estimating activity resources means identifying:

▪ Types and quantities of material

▪ Human resources

▪ Equipment

▪ Supplies
 o These are required to perform each activity in the project.

3. Two Approaches to Estimating Resources

a. Detailed Level Estimation

o If individual project activities are clearly listed, then:

▪ Ask: What type of person (skill/knowledge) is needed for each activity?

▪ Result: Specific and accurate resourcing needs.

b. Overview Level Estimation

o If individual activities are not listed, then:

▪ Determine how many total resources are needed.

▪ Identify the general skills and knowledge areas required to complete the whole project.

4. Purpose of Resource Estimation

o Helps in planning, budgeting, and scheduling.

o Ensures that the right people, materials, and tools are available at the right time.

Important Considerations When Estimating Resource Needs

1. Include Support Needs

o Consider not just main project resources, but also support systems such as:

▪ Information systems (IT tools, software, etc.)

▪ Human resources (HR support, onboarding, contracts, etc.)

2. Account for Worker Constraints

o Some types of workers have special rules or limitations, such as:

▪ Hiring procedures (e.g., background checks, contracts)

▪ Scheduling restrictions (e.g., fixed working hours, availability)

▪ Release policies (e.g., contract end, notice periods)

3. Special Planning for Certain Teams

o Co-located teams (working physically together) and highly skilled individuals often need:

▪ More detailed planning

▪ Clarity in scheduling, collaboration, and responsibilities

4. Challenges in Securing Specialized Skills

o It can be difficult to find or hire people with rare or specific knowledge.

 o Planning must include time and effort to locate and onboard such individuals.

5. Include Communication Time

o Don’t just plan time for doing tasks.

o Also include time to communicate between activities, especially:

▪ During meetings

▪ While explaining work

▪ When resolving issues

6. Plan for Handoffs

o “Handoffs” occur when work moves from one person/team to another.

o Include time for:

▪ Clear documentation

▪ Discussions between teams

▪ Adjustments or clarifications after transfer

This ensures the estimation is realistic, avoids delays, and improves team coordination.

✅ Creating a Staffing Management Plan

A Staffing Management Plan is a part of the Human Resource Plan. It outlines when, how, and for how long project
team members will be involved.

Key Components of a Staffing Management Plan:

1. Resource Acquisition

o Decide how project team members will be acquired:

▪ From internal sources (within the organization)

▪ Or external sources (contractors, consultants, freelancers)

2. Availability Check

o Check the availability of each potential team member:

▪ Are they free during the required timeline?

▪ Do they have other commitments?

3. Team Building Timeline

 o Plan when to bring in team members:

▪ Staggered onboarding based on project phases

▪ Avoid overstaffing or understaffing at any point

4. Team Development

o Include plans for training or skill development if gaps are identified.

o Promote team bonding activities for better collaboration.

5. Reward and Recognition

o Decide how to motivate and retain team members:

▪ Appreciation, incentives, or public recognition for good work.

6. Team Release Strategy

o Determine when and how team members will be released:

▪ Gradually, as their tasks are completed

▪ Or all at once after the project ends

7. Timing Issues Handling

o Address possible conflicts or delays in:

▪ Hiring

▪ Training

▪ Task assignments

Purpose:

To ensure the right people are available at the right time, stay engaged throughout the project, and leave the project
in a structured manner when their work is done.

A Staffing Management plan includes:

Staffing Management Plan – Identifying Potential Resources

Identifying the right people for a project is a critical step and varies across different organizations.

Organizational Context:

1. Small Organizations:

o Fewer people available.

o Often, one specific person is the natural choice for a certain type of task.
 2. Large Organizations or External Hiring:

o More choices, but also more complexity in finding and assigning the right people.

o Project managers need to evaluate multiple factors.

Key Factors to Consider While Resourcing:

1. Work Functions

o Look at job titles and the range of responsibilities a person can handle.

o Helps match people to project roles efficiently.

2. Professional Discipline

o Consider educational qualifications (degrees).

o Include professional certifications relevant to the task (e.g., PMP, Six Sigma, etc.).

3. Skill Level

o Assess experience, expertise, and past performance ratings.

o Ensures that skilled and capable people are assigned.

4. Physical Location

o Identify where the person is currently based.

o Consider willingness to relocate or travel if required by the project.

5. Organizational/Administrative Unit

o Review cost factors associated with different departments or teams.

o Be aware of any contractual rules or administrative procedures involved in assigning that person.

Purpose:

To ensure that the most suitable people are identified and prepared for their roles in the project—based on skills,
availability, cost, and logistics.

2.Determine Resource Availability

After identifying potential resources and estimating resource needs, the next step is to check their availability and
secure commitment.

Key Steps and Considerations:

1. Compare Identified Resources to Project Needs

 o Match who is available with what the project requires.

o Identify any gaps where required skills or time are missing.

2. Secure Resource Commitment

o Confirm that the selected individuals are willing and able to join the project.

o This step is essential even for internal projects, where people may be shared across multiple teams.

3. Recognize Shared Resource Pools

o In many organizations, team members are part of a common resource pool.

o They may be in demand by other ongoing projects, so availability must be confirmed before
finalizing the schedule.

4. Preliminary Nature of the Project Schedule

o A project schedule is not final until the required resources are officially committed.

o If the team is not available as planned, the timeline may need adjustments.

5. Types of Available Resources

o Resources can include:

▪ Full-time employees

▪ Part-time contributors

▪ Internal team members

▪ External contractors or consultants

6. Project Prioritization Impact

o If the new project is a higher priority than existing projects:

▪ It is possible to reallocate previously committed resources.

▪ This requires coordination with other project managers or departments.

Purpose:

To ensure the right people are available at the right time so that the project schedule is reliable and achievable.

Let me know if you want a visual resource availability tracker or checklist!

3 Deciding Timing Issues When Resourcing Projects

Projects differ from regular operations in terms of timing, because they are temporary and aim to produce unique
outcomes. This creates special challenges when planning when to bring resources on board.
 Key Timing Issues and Solutions:

1. When to Bring People On Board

o If you bring people too early, it increases costs unnecessarily.

o If you delay onboarding, you risk missing key deadlines if the right person isn't available.

2. Handling Risk of Resource Unavailability

o If a critical resource is not confirmed in time, the project schedule may suffer delays.

o The best practice is to:

▪ Secure key team members early in the project.

▪ This ensures smoother planning and kickoff.

3. Benefits of Early Assignment of Key Players

o Encourages better planning and decision-making.

o Helps build a strong project culture and sense of ownership.

o Allows for faster early progress, reducing risk of delays later.

Role of the Staffing Management Plan:

The staffing management plan specifically handles three main issues related to resourcing and timing:

1. Identification of Potential People

o Who might be suitable for the project based on skills, experience, availability, etc.

2. Checking and Securing Availability

o Determine who is actually available and how to secure their commitment.

3. Timing of Workforce Build-up and Release

o Decide:

▪ When to bring people in.

▪ When and how to gradually release them as tasks are completed.

Purpose:

To balance cost and timing, ensuring resources are available just in time — not too early to waste resources, and not
too late to delay the project.

Let me know if you’d like a sample timeline showing typical onboarding/releasing phases in a project!
 Project Team Composition Issues

Project teams are often made up of members from multiple sources, both internal and external. Planning who should
be on the team and where they are located is essential during the early stages of team selection.

Key Issues in Project Team Composition:

1. Multiple Sources of Team Members

o Team members can come from:

▪ Within the parent company (various departments)

▪ External sources like contractors, vendors, or consultants

o This adds complexity in coordination, communication, and management.

2. Physical Location of Team Members

o Team members may be:

▪ Co-located (working in the same location)

▪ Or geographically dispersed

o This affects how they collaborate, especially in virtual settings.

Cross-Functional Teams – A Common Requirement

1. Need for Cross-Functional Teams

o Projects usually need input from multiple disciplines such as:

▪ Engineering, Finance, Marketing, Operations, etc.

o These diverse perspectives help in better decision-making and innovation.

2. Challenges in Cross-Functional Teams

o People from different fields may see the same problem differently:

▪ An engineer may prioritize technical efficiency.

▪ An accountant may focus on cost control.

o Differences may arise due to:

▪ Educational background

▪ Professional experience

▪ Personality traits
 3. Potential for Misunderstandings

o Miscommunication and conflicts may occur if not managed well.

o It is important to foster mutual respect, clarity, and open communication.

Project Team Structure: Co-Located vs Virtual Teams

When forming a project team, one of the key decisions is where team members will physically work. This affects
communication, decision-making, and team dynamics.

1. Co-Located Teams

Definition:
Team members are assigned workspaces near each other, working in the same physical location.

Key Features & Benefits:

• Promotes daily informal communication.

• Encourages quick decision-making and teamwork.

• Useful for handling minor day-to-day decisions efficiently.

• Enhances team bonding and understanding.

• In some cases, supplier and customer representatives may also have workstations in the same area to
improve coordination.

Challenges:

• May not be feasible for large or international projects.

• Higher cost if team members need to relocate.

2. Virtual Teams

Definition:
Team members are geographically dispersed and primarily communicate through digital means (e.g., video calls,
emails, project management tools).

Key Features & Benefits:

• Allows access to specialized expertise from different locations.

• Reduces costs related to travel, relocation, and office space.

• Ideal for global or large-scale projects.

Challenges:
 • Less face-to-face interaction, which may hinder bonding.

• Requires strong communication tools and discipline.

• People tend to connect better if they’ve met in person at least once.

Outsourcing: Many project managers are faced with the prospect of not finding the necessary talent within their
organization. When that is the case, project managers often need to hire expertise from one or more other
organizations.

Budgeting Projects – Plan Cost Management

Definition:
Plan Cost Management is the process of setting up the rules, methods, and documentation for how a project's costs
will be planned, managed, spent, and controlled.

Purpose of Cost Management Planning:

1. To estimate and control how much the project will cost

2. To ensure the project is financially viable and stays within budget

3. To provide a framework for monitoring and reporting project expenses

Cost Management Plan Includes:

1. How costs will be planned

o Break down work into cost components

o Estimate costs for resources, labor, equipment, etc.

2. How costs will be structured

o Use tools like Work Breakdown Structure (WBS) to assign cost values to each task or phase

3. How costs will be controlled

o Set up reporting systems, approval processes, and budget reviews

For Small Projects:

• May only need:

o Accurate cost estimates

o Secured funding
 o Basic cost tracking procedures

For Large Projects:

• Requires more detailed steps:

o Complex budgeting techniques

o Accurate cash flow forecasting

o Ongoing monitoring and adjustments

o Regular financial reports to stakeholders

Conclusion:

A well-defined Cost Management Plan ensures that a project:

• Stays within budget

• Uses resources wisely

• Meets financial expectations of stakeholders

What the Plan Includes:

1. Costs Included

o Internal costs (in-house labor, internal resources)

o External costs (contractors, vendors, outsourcing)

o Contingency costs (reserves for risks or uncertainties)

2. Activity Resource Estimating

o Estimating the resources (people, materials, equipment) needed for each task

3. Cost Estimating

o Predicting the monetary cost of each resource and activity

4. Budget Determination

o Setting the total approved cost (budget) for the project

o Allocating budgets to each phase or component

5. Cost Control

o Using metrics to measure performance

o Creating reporting procedures to track actual vs. estimated costs

 o Setting change approval processes for budget adjustments

Organizational Consistency:

• The cost management plan must align with the parent organization’s policies and standards.

• Many organizations provide templates or guidance to help project managers structure their cost plans
effectively.

Purpose of the Cost Management Plan:

• To guide the project manager and stakeholders in managing financial aspects

• To ensure transparency, control, and accountability

• To track financial performance throughout the project life cycle

• To support decision-making when changes or issues arise

Purposes of the Project Cost Management Plan

The plan serves multiple key purposes for the project manager, sponsor, and stakeholders:

1. Guidance for Smart and Ethical Decision-Making

• Shows how to develop, share, and use cost-related information.

• Ensures information is relevant, accurate, and timely.

• Helps all parties make intelligent and ethical decisions during the project.

2. Provides Feedback on Business Objectives

• Connects project performance with the business goals it supports.

• Helps evaluate if the project is delivering value as expected.

3. Delivers Appropriate Information to Different Stakeholders

• Gives detailed information for those directly managing tasks (e.g., engineers, team leads).

• Provides summary-level data for sponsors and executives who need big-picture insights.

4. Focus on Cost, Schedule, and Performance

 • Encourages attention on not just cost, but also on timely delivery and project quality/performance.

• Promotes a balanced view of the project’s progress.

Estimate Cost

This means figuring out how much money is needed to complete all parts of the project.

Cost estimating is closely connected to:

• Scope – What the project includes.

• Schedule – When the work needs to be done.

• Resources – What people and materials are needed.

To estimate cost properly, a project manager must understand:

• What work needs to be done,

• The deadlines or time limits,

• And which people and tools will be used.

Types of Costs

Fixed Costs

• These costs stay the same, no matter how much work is done.

• Example: If you buy a computer for the project, the cost is fixed—it doesn’t change based on how often you
use it.

Variable Costs

• These costs change based on the amount of work or usage.

• Example: If you're building a cement wall, the cost of cement goes up as the size of the wall increases.

Types of Costs

Direct Costs

• These costs only happen because of the project.

• Two main types:

o Direct Labour – Workers hired just for the project and will leave or move to another project once it's
done.

o Other Direct Costs – Includes materials, travel, consultants, subcontracts, purchased parts, and
computer time.

Indirect Costs

• These costs are needed to run the organization but are not linked to one specific project.

• Examples: Salaries of executives, office buildings, utilities, insurance, and clerical staff.
Types of Costs

Recurring Costs

• These costs happen repeatedly as the project continues.

• Example: Writing code or laying bricks during construction.

• Mostly occur during project execution.

Nonrecurring Costs

• These costs happen only once during the project.

• Example: Creating a design that will be used for the whole project.

• Mostly occur during project planning and closing.

Regular Costs

• These are normal costs that happen during regular work hours and with standard purchasing.

• These are the preferred costs.

Expedited Costs

• These happen when the project needs to be done faster than normal.

• Includes overtime pay and extra charges for quick delivery from suppliers.

Methods of Project Cost Estimating

Analogous Estimating

• This method uses historical data from a similar past project to estimate the cost or duration of a new project.

• Example: Estimating based on cost per lane mile, cost per square foot, or cost per intersection.

For this method to work well:

1. The organization must have past experience with similar projects and know their actual costs (not just
estimates).

2. The estimator must understand how the new project is different from the old one.

3. The estimator must have experience with the methods that will be used in the new project.

Parametric Estimating

• Parametric estimating is “an estimating technique in which an algorithm is used to calculate cost or duration
based on historical data and project parameters.”

• A bit more information is needed to complete a parametric cost estimate.

• Example: For estimating the cost of elevator installation projects, parametric estimates might require more
details about the project.

• For instance, you might need to know:

 o How tall the elevator is

o How fast it needs to travel

o How large the platform is

o The trim level

o The complexity of the controls

• Each of these factors will impact the installation cost.

• Example of calculation:

o Cost per foot traveled might be calculated (this would include the cost of guide rails, wiring, etc.).

o Another cost might be based on speed, since faster elevators need:

▪ Bigger motors

▪ More stability

▪ Stronger brakes, and so on.

Bottom-Up Estimating

• In this approach, a larger project is broken down into a number of smaller components.

• The project manager estimates costs for each of these smaller work packages individually.

• Example: If a project includes work done by multiple departments, the costs might be split by department.

• Once all the individual costs are estimated, they are added up to get one total cost estimate for the entire
project.

• Because bottom-up estimating lets the manager look at tasks in more detail, it allows for a very accurate cost
estimation process.

Three-Point Estimating

• In this method, the project manager identifies three separate estimates for the project’s cost.

1. Optimistic Estimate
– Assumes the work is done and money is spent most efficiently.

2. Pessimistic Estimate
– Assumes the work is done and money is spent in the least efficient way.

3. Most Likely Estimate

– Represents the most realistic scenario, usually falling between the optimistic and pessimistic estimates.

Control Cost

• Control cost is “the process of monitoring the status of the project to update project costs and manage
changes to the cost baseline.”
 • The approved project budget (including contingency reserves and any approved management reserve) is used
as the baseline for cost control.

• The budget shows:

o How much progress is expected

o How much funding is required at each point in time

➤ These are used to establish control over project costs.

• A common way to measure cost control is through milestones.

• Major milestones are usually listed in the milestone schedule found in the project charter.

• Additional milestones may also be added when creating the full project schedule.

Issues in project cost estimating: (factors impacting cost estimation): • Supporting details like the scope, method used
to create the estimate, assumptions, constraints, and range of possible outcomes.

• Activity based testing.

• Causes of variation.

• Life cycle costing.

• Vendor Bid analysis.

• Value engineering.

• Time value of Money.

• International currency fluctuations.

Cost Budgeting
• Cost budgeting is “the process of adding up the estimated costs of individual activities or work packages to
create an authorized cost baseline.”

Steps involved:

1. The project manager adds up all the different estimated costs.

2. Then, they determine how much money is needed for reserve funds.

3. Lastly, the project manager must understand cash flow, which means:

o When and how much funding is available

o When and how much money will be needed for project costs

Establishing Cost Control

• The approved project budget (including contingency reserves and any approved management reserve) acts as
the baseline for cost control.

• The budget shows:

 o How much progress is expected at different points

o How much funding is needed at each stage

• Control cost is “the process of monitoring the project’s status, updating costs, and managing changes to the
cost baseline.”

• A milestone is commonly used as a measuring point for cost control.

• Major milestones are listed in the milestone schedule in the project charter.

• Additional milestones may be added while creating the full project schedule.

• Project managers use cash flow projections to estimate how much funding is needed to reach each milestone.

• This helps in checking how well the project is progressing compared to the plan.

• The sponsor and project manager usually decide together how many milestones to include.

o There should be enough to track progress clearly.

o But not so many that it becomes too much paperwork or an administrative burden.

• Tools like Microsoft Project and other software can be used to automate cost reporting

Risk

• Risk is a measure of the probability (likelihood) and consequence (impact) of not achieving a defined project
goal.

• Risk always involves uncertainty—we don’t know for sure if something will succeed or fail.

• Examples:

o Can the aircraft reach the required range?

o Can the computer be built within the planned budget?

Risk Management

• Risk management is the act or practice of dealing with risk.

• It includes:

o Planning for risk

o Identifying risks

o Analyzing risks

o Developing response strategies

o Monitoring and controlling risks to see how they change over time

• Risk management is not a separate activity done only by a risk department.

• It is an important part of good project management.

• It should be closely linked with other key project areas, such as:
 o Overall project management

o Systems engineering

o Configuration management

o Cost

o Design/engineering

o Earned value

o Manufacturing

o Quality

o Schedule

o Scope

o Testing

• Risk management involves these key actions:

1. Risk planning

2. Risk identification

3. Risk analysis

4. Risk response (handling)

5. Risk monitoring and control

Steps in Risk Management

1. Plan Risk Management

• This is the process of developing and documenting a clear, organized, and interactive strategy.

• It includes methods for:

o Identifying risks

o Analyzing risks

o Creating risk response plans

o Monitoring and controlling changes in risks

2. Identify Risks

• This involves examining all program areas and each critical technical process.

• The goal is to find and document all possible risks related to the project.
 3. Perform Risk Analysis

• This step looks at each identified risk to:

o Estimate the probability (likelihood) of it happening

o Estimate the impact it would have on the project

• It includes two types of analysis:

o Qualitative Risk Analysis (descriptive, using categories or ratings)

o Quantitative Risk Analysis (numerical, using data and models)

Plan Risk Response

• This is the process of identifying, evaluating, selecting, and implementing one or more strategies to reduce
risks to an acceptable level, considering project constraints and goals.

• The plan should include:

o What actions will be taken

o When they will be done

o Who is responsible

o The cost and schedule impact

Response Strategies

A response strategy includes both an option and an implementation approach.

For Risks, response options include:

• Acceptance – Do nothing, accept the risk

• Avoidance – Change plans to eliminate the risk

• Mitigation (Control) – Take steps to reduce the likelihood or impact

• Transfer – Shift the risk to a third party (e.g., insurance, contracts)

For Opportunities, response options include:

• Acceptance – Do nothing, accept the opportunity

• Enhance – Increase the chance or impact of the opportunity

• Exploit – Take actions to make sure the opportunity happens

• Share – Involve a partner who can help realize the opportunity

 • The best response option is selected.

• A specific implementation plan is created for that option.

• Then, resources (like budget, people, equipment, and facilities) are assigned to the plan.

• Finally, the response plan is carried out.

Monitor and Control Risks

• This is the process of systematically tracking and evaluating how well the risk response actions are working.

• It involves checking the performance of these actions against set metrics (standards or measurements).

• This is done throughout the project, especially during the acquisition process.

• Based on the results, the project team provides feedback and updates the risk response strategies if needed.

✅ Risk Response Options:

• For risks, the options include acceptance, avoidance, mitigation (control), and transfer.

• For opportunities, the options include acceptance, enhance, exploit, and share.

• Contingent responses are possible for both risks and opportunities.

Brief Discussion of Four Response Options for Risks:

• Acceptance (Retention): The project manager acknowledges the risk, is aware of the possible consequences,
and is willing to wait and see what happens while allocating sufficient budget, schedule, and resources to deal
with it.

• Avoidance: The project manager decides not to accept the design or requirements that could lead to
unfavorable results and will change them to preclude the risk.

• Control (Mitigation): The project manager takes necessary measures to actively mitigate the risk and does what
is expected to reduce its impact.

• Transfer: The project manager shares or transfers the risk to others through methods such as insurance,
warranties, partitioning hardware/software interfaces, or other risk-sharing approaches.

Brief Discussion of Four Response Options for Opportunities:

• Acceptance (Retention): The project manager knows there is an opportunity, understands the possible
benefits, and chooses to wait and see if it happens, ready to accept it when it comes.

• Enhance: The project manager looks for ways to increase the chance of the opportunity happening, like using
stronger advertising to attract more customers.

• Exploit: The project manager tries to make the most of the opportunity, for example by assigning the best team
members to complete work faster and reach the market sooner.
 • Share: The project manager realizes they cannot fully use the opportunity alone, so they plan to partner with
others to get the best benefits.

Risk Monitoring and Control:

• Identify new risks and make plans to handle them.

• Track existing risks to check if they are still relevant.

• Reassess risks regularly to see if any changes are needed.

• Check if any risk conditions (warning signs) have been triggered.

• Monitor risks that could become more serious over time.

• Handle long-term risks by following proper risk action plans.

• Reclassify risks based on how serious they are now.

• Ensure critical risks become less critical over time by using effective action plans.

o If not, the action plan must be reviewed and improved.

• Risk Reporting:

o The risk register is updated continuously throughout the project.

o It is the main tool for reporting risks and is stored in the central project server.

o All stakeholders can access this register.

✅ Baseline and Communicate Project Management Plan:

1. Baselining the Project Plan

o Once the project plan is complete and accepted by stakeholders, it is baselined.

o A baseline means the plan is officially approved.

2. Draft Stage before Baselining

o The project plan remains in draft form until:

▪ Enough information is available.

▪ Key stakeholders are ready to commit to the full details.

3. Importance of Baselining

o After baselining, the plan becomes official.

o Any future changes must be formally approved and documented.

4. Transition Phase
 o Baselining marks the transition from planning phase to execution phase.

o This is considered a moment of great joy for the project team.

5. Early Start of Some Activities

o On many projects, critical path or near-critical path activities may start before the official kick-off.

6. Continued Planning (Replanning)

o Even after the baseline, replanning may occur:

▪ To adjust for new information or changing circumstances.

7. Shift of Focus

o After baselining:

▪ Majority of planning is completed.

▪ Majority of executing is beginning.

8. Communication of the Plan

o The project management plan must be communicated properly as per the communications plan.

9. Kick-off Meeting

o Ideally, many key stakeholders should attend the kick-off meeting.

o Even if some stakeholders are absent, proper communication must be sent to all stakeholders.

✅ Project Quality Tools:

1. Purpose of Quality Tools

o Hundreds of tools exist to help organizations manage the quality of their processes.

2. Variety of Tools

o Many quality tools are actually variations of each other.

o They often have multiple names but serve similar purposes.

3. Application in Projects

o These tools can be specifically applied to manage project quality effectively.

Flow Chart:

• A flow chart is a tool that project managers use when they begin to control quality.

• Flow charts can represent either the overall flow of an entire project or very specific details of a critical process.

• They clearly show where a process starts and where it ends.

• Each step in the process is represented by a box.

• Arrows are used to indicate the direction in which information, money, or physical items flow.

Check Sheet:

• A check sheet is customized specifically for each application.

• It is important to decide exactly what data will be useful for understanding, controlling, and improving a
process.

• A form is created to collect this specific information.

• It is helpful to also record the date or time when each event occurred, along with notes about the impact or
any special circumstances.

• When creating categories on a check sheet, it is wise to include a category called "other" to capture unexpected
problems.

o Pareto Chart:
• After using a check sheet, the collected data can be displayed using an analysis tool like a Pareto chart.
• The purpose of a Pareto chart is to quickly identify the main sources of a problem by applying the 80/20 rule.
• According to the 80/20 rule, 80 percent of defects usually come from about 20 percent of all sources.
• In the given example, the error of using an incorrect scope shows the highest cost impact.
• Therefore, the project team should first focus on improving the area with the highest impact.

Cause and Effect Diagram:

• The cause and effect diagram is also called the fishbone diagram (because it looks like a fish skeleton) or the
Ishikawa diagram (named after its developer).

• In the diagram, each "big bone" represents a category of possible causes.

• For example, one category could be "deliverable design," meaning that problems in the design might lead to
issues like using incorrect scope to estimate labor costs.

• After identifying the main categories, the project team brainstorms ideas to list as many potential causes as
possible.

• Once no more new causes can be thought of, the team selects one or more causes to test.

• Testing can be done by gathering more data from the current project operations or by trying a new method and
then collecting data on it.

Histogram:

• Once the additional data are gathered, they can be analyzed using a histogram, run chart, and/or control chart.

• For example, if one of the potential causes of using incorrect scope is that the client demands the cost estimate
within four days of job notification.
Run Chart:

• Perhaps the project team wants to see how one specific aspect of the work process may change over time.

• If they collect data for two weeks on a daily basis and show them on a run chart, they could determine trends
in how the process is changing over time.

• The team could look for three types of variation.

• First, they check if there is a trend either up or down, and in this example, there is an upward trend.

• Second, they check for a repeating pattern, such as a low every Monday or a high every Wednesday; in this
case, it is too early to tell.

• Both Tuesdays are up from Mondays, and both Thursdays are low, but the day of the week does not seem like
the major source of variation.

• The third type of variation is abrupt changes, such as a single point far higher or lower than the others, or all
points suddenly being much higher or lower than previous points.

• The question teams ask when trying to find this variation is: “How big of a change is big enough to count?”

Control Chart:

• Quality control charts are helpful in answering this question.

• The diagram displays the same data on a control chart with a process average and control limits shown.

• This chart shows the final point above the upper control limit.

• This means the variation is enough that it is not likely to have happened purely by chance.
 • Something is causing the variation—some sort of special cause.

✅ Development of Contemporary Quality Concepts:

• Much of the work of these pioneers has been incorporated into three popular frameworks: Total Quality
Management (TQM), the International Organization for Standardization (ISO), and Six Sigma.

Total Quality Management / Malcolm Baldrige:

• TQM (Total Quality Management) came into vogue during the late 1980s when it became more apparent that
the old way of catching quality problems by inspection was not adequate.

• Many early advocates of TQM used slightly different ways of describing it.

• What they all had in common was implied by the first word in the name: "total."

• Most serious practitioners included several components in their TQM system.

• In the United States, government, business, consulting, and academic specialists in quality worked together to
develop a common means of describing TQM.

ISO 9001:2008:
• ISO represents a framework developed in Europe.

• The International Organization for Standardization has developed many technical standards since 1947.

• ISO 9001 is the quality management standard, and the 2008 designation is the latest revision of the standard.

• When the standards first appeared, they focused largely on documenting work processes.

Lean Six Sigma:

• Lean evolved from lean manufacturing ideas focused on eliminating as much waste as possible from work
processes.

• Sigma stands for standard deviation, which is a statistical term for the amount of variation in data.

• Six Sigma quality literally means quality problems are measured in parts per million opportunities.

• Many projects have few routine activities and many unusual activities, so the rigor of the statistics in Six Sigma
is not always applicable.

• However, the ideas behind Six Sigma provide a meaningful framework for project quality.

• Six Sigma uses a disciplined process called the Define, Measure, Analyze, Improve, and Control (DMAIC) process
to plan and manage improvement projects.

• The DMAIC methodology is a 15-step process broken up into five project phases: define, measure, analyze,
improve, and control.

• The DMAIC process is illustrated to show objectives within each of the five key stages.

• It is shown as a continuous, circular flow because DMAIC is typically used as a method of implementing
continuous improvement, which can be practiced repeatedly.

• Lean Six Sigma uses DMAIC and waste elimination together to improve performance.
DMAIC Process for Achieving Quality Improvement:

• DEFINE the problem and scope the work effort of the project team.

• The description of the problem should include the pain felt by the customer and/or business and how long the
issue has existed.

• Identify the customer(s), the project goals, and the timeframe for completion.

• The appropriate types of problems have unlimited scope and scale, from employee problems to issues with the
production process or advertising.

• Regardless of the type of problem, it should be systemic — part of an existing, steady-state process, not a one-
time event.

• MEASURE the current process or performance.

• Identify what data is available and from what source.

• Develop a plan to gather the data, gather it, and summarize it, telling a story to describe the problem.

• This usually involves the use of graphical tools.

• ANALYZE the current performance to isolate the problem.

• Through statistical and qualitative analysis, begin to formulate and test hypotheses about the root cause of the
problem.

• IMPROVE the problem by selecting a solution.

• Based on the identified root cause(s), directly address the cause with an improvement.

• Brainstorm potential solutions, prioritize them based on customer requirements, make a selection, and test to
see if the solution resolves the problem.

• CONTROL the improved process or product performance to ensure the targets are met.
• Once the solution has resolved the problem, standardize and sustain the improvements over time.

• Revise standard-operating-procedures if needed, and put a control plan in place to monitor ongoing
performance.

• The project team transitions the standardized improvements and sustaining control plan to the process players
and closes out the project.

Project Kick-off:

• Meetings are conducted for many reasons during project kick-off.

• Everyone should express their legitimate needs and desires and strive to understand the desires of other
stakeholders.

• If the project leader does not have full authority to direct all project work activities, she must use influence to
get everyone excited about the project.

• Team members should feel pride in their participation and share in the risks and rewards the project offers.

• Team members should be motivated to self-manage as much as possible.

• Many people who helped with parts of the project planning can now see how all the parts fit together.

• Since many projects fail due to "touch points" where one worker hands off work to another, it is critical for all
parties to understand these trouble spots.

• Kick-off meetings help convince stakeholders that project leaders (sponsor, project manager, and core team)
will be good stewards of customer and organizational assets.

• Answering remaining questions and overcoming concerns helps build trust.

• Finally, all interested parties (outside customers, top management, functional managers, frontline workers, and
others) should commit eagerly and begin the project work.