PMP Exam Preparation

Course Book

th
Based on PMBOK 6 Edition

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Welcome and Introductions

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Agenda
 Logistics
– Morning Break
– Lunch Break
– Afternoon Break

 Introductions
– Participants
 Role / Job Function / Employer
 Project Management Experience
 Planning to take the PMP exam?

– Instructor
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 Table of Contents
Module 1. Introduction to PMI-PMP Certification Program Page 6 – 16

Module 2. Foundational Elements & Project Environment Page 17 – 50

Module 3. Role of the Project Manager Page 17 – 50

Module 4. Project Integration Management Page 72 – 109

Module 5. Project Scope Management Page 110 – 138

Module 6. Project Schedule Management Page 139 – 179

Module 7. Project Cost Management Page 180 – 206

Module 8. Project Quality Management Page 207 – 234

Module 9. Project Resource Management Page 235 – 261

Module 10. Project Communications Management Page 262 – 281

Module 11. Project Risk Management Page 282 – 309

Module 12. Project Procurement Management Page 310 – 331

Module 13. Project Stakeholder Management Page 332 – 350

Module 14. Professional and Social Responsibility Page 351 – 362

Module 15-19 Agile Practice Guide

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Introduction to PMI-PMP Certification
Program

Module - 1

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Agenda
 Understand PMI and PMBOK
 Certification Programs offered by PMI
 PMP Eligibility Requirements
 PMP Exam Application
 PMP Certification cycle
 PMP Exam Pattern
 PMP Exam Blueprint
 PMI Contact Information

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PMI and PMBOK
 PMI – Project Management Institute
 PMI Official Website – www.pmi.org
 PMI is world’s leading not-for-profit professional
organization for the project management profession
 PMI offers the course and examination on Project
Management Program (PMP)
 PMBOK Guide – Project Management Body of
Knowledge Guide
 PMBOK Guide is the reference for the PMP Exam and is
an approved American National Standard (ANSI)
 This material is based on the PMBOK 6th Edition

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Certification Programs by PMI
 Certified Associate in Project Management (CAPM)
 Project Management Professional (PMP)
 Program Management Professional (PgMP)
 PMI Agile Certified Practitioner (PMI-ACP)
 PMI Scheduling Management Professional (PMI-SM)
 PMI Risk Management Professional (PMI-RM)
 PMI Professional in Business Analysis (PMI-PBA)
 PMI Portfolio Management Professional (PfMP)

 In addition to above career development credentials, PMI

offers:
 Organizational Project Management Maturity Model (OPM3)
Professional Certification

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PMP Eligibility Requirements
 Training – 35 contact-hours program of project management
training, which gives 35 PDU. Example: This course is 35 PDU
 Project Experience:
– A secondary degree (high school diploma, associate
degree etc.) and at least 5 years of project management
experience with 7,500 hours leading and directing projects
– OR
– A four-year degree (bachelor degree or the global
equivalent) and at least 3 years of project management
experience with 4,500 hours leading and directing projects
 PDU
– Professional Development Unit
– 1 PDU corresponds to 1 hour of professional development
activity
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PMP Exam Application
 Application can be submitted via online or paper-based
– Online processing time is 5 business days
– Paper based processing takes longer
 Once the application is reviewed and approved, payment
for the exam can be made
 Once payment is made, PMI sends an electronic
notification indicating:
– Examination scheduling instructions – or –
– The application is selected for audit (90 days to send audit
material and eligibility period begins after successful
completion of the audit)
 Exam to be taken within 1 year of the date of registration
– Exams are conducted with the help of Prometric worldwide
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PMP Certification Cycle
 Once certified, the PMP certification is valid for 3 years
 60 PDUs to be accumulated within the 3 year cycle
 Minimum 35 education and maximum 25 giving back categories.
 Minimum 8 in each of:
– Technical project management
– Leadership
– Strategic and business management
 The credential can be renewed after 60 PDUs are earned and
reported in the CCR (Continuing Certification Program) system
 Certification suspension for 1 year period if 60 PDUs are not
accumulated within a 3 year cycle
 PMP Credential expiration occurs at the end of the suspension
period of 1 year if necessary PDUs not earned and renewal process
not followed

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PMP Exam Pattern
 PMP Exam has 200 multiple choice questions
 Allocated time is 4 hours
 There are no negative marking for wrong answers
– Attempt all questions
 200 questions consist of scored & un-scored questions
– Number of questions scored  175
– Number of questions not scored  25
 PMP Exam questions are:
– Developed, validated by a global group of PMP holders
– Developed in accordance with ISO/IEC 17024 standard
– Referenced in PMBOK guide
– Monitored through psychometric analysis

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PMP Examination Blueprint
 Questions are proportionately divided between each
process group of PMBOK guide, 6th Edition and Agile
practice guide.
– The percentage of questions determines the number

PMBOK Process Groups Percentage of Questions

Initiating 13
Planning 24
Executing 30
Monitoring and Controlling 25
Closing 8
Total 100

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PMI Contact Details
AMERICAS
Project Management Institute — Headquarters
14 Campus Boulevard
Newtown Square, PA 19073-3299 USA
E-mail: [email protected]
Toll number: +1-610-356-4600; Toll free number: 1-855-746-4849; Fax: +1-610-482-9971
Canada Toll Free Number: 1-855-746-4849; Mexico Toll Free Number: 1-800-563-0665

EMEA INDIA
PMI's EMEA Service Centre PMI India, PMI Organization Centre Private Limited
Lelystad, Netherlands Mumbai, India
E-mail: [email protected] E-mail: [email protected]; Website: www.pmi.org.in
Toll number: +31-320-239-539 (Middle East and Africa) Customer Care Details: Tel: +91-124-4517 140;
E-mail: [email protected]

ASIA PACIFIC CHINA

PMI's Asia Pacific Service Centre PMI China Headquarters
20, Bendemeer Road Room 1107, 11th Floor, Beijing Sun Palace Building
Cyberhub, #04-02 No. 12A, Taiyanggong Middle Road
Singapore 339914 Chaoyang District, Beijing 100028, China
Tel: +65 6496 5501; Fax: +65 6496 5599 Tel : +86-10-8429 9191; Fax: +86-10-8429 9292
E-mail: [email protected] E-mail: [email protected]; Website: www.china.pmi.org

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Foundational Elements
&
Project Environments

Module - 2

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Agenda
 Introduction to Project and Project Management
 Program, Portfolio Management & Organizational Strategy
 Operations Management
 Project Stakeholders
 Project Life Cycle vs. Product Life Cycle
 Project Life Cycle, Phases and Phase Gates
 Project Management Process Groups and Knowledge Areas
 Project Data, Information and Tailoring
 Business Documents and Success Measures
 Project Influences
 Various Organizational Structures
 Project Management Office (PMO)

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What is a Project
 A temporary endeavor undertaken to create a unique product,
service or result:
– Temporary endeavor
 not continuously ongoing, has a definite beginning and an end
– Unique project/service/result
 Unique output. No two projects are the same.
 A project can create or improve/enhance:
– A product – either a component an of an item or an item itself
– A service or capability to perform a service
– A result, such as an outcome or document
 Projects drive change & create business value
– Taking from current state to future state
– Benefits can be tangible and/or intangible

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Project Initiation Context
Four fundamental categories:

1. Meet regulatory, legal, or social requirements

2. Satisfy stakeholder requests or needs
3. Implement or change business or technological
strategies
4. Create, improve, or fix products, processes, or services

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What is Project Management
 Application of knowledge, skills, tools and techniques to
project activities to meet project requirements. e.g.
– Meet business objectives
– Increase chances of success
– Optimize use of organizational resources
– Resolve problems & issues, etc.
 Poor or absence of project management may result in:
– Missed deadlines
– Cost overruns
– Poor quality,
– Unsatisfied stakeholders, etc.

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Manage the Constraints
• Newly defined set of constraints

Time include, but not limited to, are

• Scope,

Scope Resources • Schedule,

• Cost,

• Quality,

• Resources, and

Risk Quality • Risk

• Constraints are competing

Cost with each other, interrelated and

changing over time

• th
From PMBOK 4 edition onwards, these new sets of

constraints are introduced

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Program Management
 A Program is a group of related projects, subprograms, and
program activities managed in a coordinated way to obtain
benefits and control not available by managing them
separately
– Program Management focuses on project interdependencies and
helps to determine the optimal approach to manage them
– Program Management includes coordinating & prioritizing
resources across projects, managing changes, resolving issues
and managing the overall cost/risks
 For a group of projects to be called program, it must add some
value when managed together
– If there is no added value, it cannot be called a Program
 A Project may or may not be part of a Program, but a Program
will always have projects under it

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Portfolio Management
 A Portfolio refers to projects, programs, sub-portfolios,
and operations that are managed as a group to achieve
strategic objectives
– Strategic objective example: “Maximizing ROI”
– Here the scope of management is organizational
 Project Portfolio Management (or PPM) is a term used to
describe methods for analyzing and collectively
managing Project Portfolio
 The Projects or Programs in a Portfolio may or may not
be interdependent or directly related
 Portfolio management focuses on resource prioritization
to serve the organization strategy and success is
measured by overall performance of the portfolio
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Organizational Strategy

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Image Credit – PMBOK 5 Edition

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 Comparative
View

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Image Credit – PMBOK 6 Edition

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Operations Management
 Operations are organizational functions performing the
ongoing execution of activities that produce the same
product or provide a repetitive service
– Examples include Product Operations, Accounting
Operations and Manufacturing Operations

 The key difference is that a project is a temporary

endeavor undertaken by a finite set of resources to
create a unique product, service or result

 Projects can intersect with Operations at various points

during the Product Life Cycle especially at project or
phase close.
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Project Stakeholders
Internal External
Sponsor Customers
Resource manager End users
Project management office Suppliers
Portfolio steering committee Shareholders
Program manager Regulatory bodies
Other project managers Competitors
Team members

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Organizational Project Management

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Key Components of Project

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Project vs. Product Life Cycle (1/2)
 The Project Life Cycle is a logical sequence of activities
required to accomplish the project’s goals or objectives.
– All projects follow a generic life cycle structure – (1)
Starting the project, (2) Organizing and preparing, (3)
Carrying out project work and (4) Closing the project
 The Product Life Cycle consists of 5 major steps:
– Product concept phase
– Product development phase
– Product delivery phase (Introduction)
– Product growth
– Product maturity, and finally
– Product decline (Retirement)

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Project vs. Product Life Cycle (2/2)
 Project Life Cycle has the following characteristics:
– Typically one project or phase does not last more than 6
months and phases may be repeated during the project
– Phase to phase relationship can be of 3 types, i.e.,
Sequential, Overlapping or Iterative
– For multi-phase projects more than one phase-to-phase
relationship could occur during the project life cycle
 Product Life Cycle has the following characteristics:
– Phases are non-overlapping
– Phases may last for several years
– Each phase occurs only once
– Phases are sequential in nature

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Project Life Cycle (1/3)
 There are five types of project life cycles:
– Predictive life cycle
– Iterative life cycle
– Incremental life cycle
– Adaptive life cycle
– Hybrid life cycle

 Predictive life cycle

– Scope is well understood
– Time and cost required to deliver is known early
– Used when the outcome to be delivered is well understood
– Typically follows sequential phases
– Also known as Fully Plan-driven
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Project Life Cycle (2/3)
 Iterative life cycle
– Scope established early in the project
– Time and cost keep changing with better understanding
– Each iteration incrementally builds the product and at the
end of the iteration one or more deliverable is completed
– Used when scope changes may occur to reduce complexity
or when very large scale deployment
 Incremental life cycle
– Deliverables are produced through a series of iterations
that add functionality within a determined time frame
– Deliverables are considered complete only after final
iteration

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Project Life Cycle (3/3)
 Adaptive life cycle
– An Iterative and Incremental approach but differs in that
iterations are very rapid – usually 2 to 4 weeks in duration
– Fixed in time and cost before the start of the iteration
– Also known as Change Driven or Agile methods
– Used in a rapidly changing environment where
requirements and scopes are difficult to define in advance
 Hybrid life cycle
– Combination of predictive and adaptive life cycle
– Elements of the project that are well known or have fixed
requirements follow a predictive life cycle
– Elements that are still evolving follow an adaptive life cycle

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Phases & Phase Gate
 Factors considered for establishing phases:
– Management needs
– Nature and needs of the project
– Organization, industry, or technology practices
– Decision points
 Phase Gate is held at the end of a phase to review and
make decisions:
– Continue to next phase
– Continue to next phase but with modification
– End the project
– Remain in the phase
– Repeat the phase or an element of it.
 Also called phase review, stage gate, kill point, phase entrance, or
phase exit
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Project Management Processes
 Project management processes are a series of project
management activities that take one or more input to
produce one or more output
 Three types of processes:
– Used once or at pre-defined point in the project.
o Examples: Develop Project Charter, Close Project or Phase

– Performed periodically as needed.

o Examples: Acquire Resources, Conduct Procurements

– Performed continuously throughout the project

o Examples: Control Schedule, Control Quality

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Project Management Process Groups
 Initiating
– define a new project or phase of a project
 Planning
– Write plans; establish scope, schedule and budget
 Executing
– Complete and measure the defined work
 Monitoring and Controlling
– Track, review, regulate and report on the progress and
performance of the project
 Closing
– Formally complete or close the project, phase, or contract

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Project Boundaries

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Project Management Knowledge Areas
 The PMBOK guide defines 10 “Knowledge Areas” [KA] or
Management Areas falling under 5 Process Groups
1) Project Integration Management
2) Project Scope Management
3) Project Schedule Management
4) Project Cost Management
5) Project Quality Management
6) Project Resource Management
7) Project Communications Management
8) Project Risk Management
9) Project Procurement Management
10) Project Stakeholder Management

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Process Groups and Knowledge Areas (1/2)

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Image Credit: PMBOK – 5 Edition

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Process Groups and Knowledge Areas (2/2)

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Image Credit: PMBOK – 6 Edition
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Project Data & Information
Project data is collected, analyzed, transformed and
distributed throughout the lifecycle
What is project data?
 Work Performance Data: measurements and
observations taken during project execution. e.g. start
and finish of activities, number of defects, etc.
 Work Performance Information: data from controlling
processes about project performance. e.g. deliverable
status, estimate to complete, etc.
 Work Performance Reports: presentation of work
performance information in documents and reports. e.g.
status reports, dashboard, memos, updates, etc.

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Project Documents

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Tailoring the Methodology
 Project Management Methodology

A system of practices, techniques, procedures, and rules used by those working in the discipline

 Tailoring
–
Selecting the appropriate project management processes, inputs, tools, techniques, outputs, and life

cycle phases to manage the project.

–
An essential work because each project is unique so not every process can be applied on every

project.

–
Consider governance needs, internal/external customer, culture of the organization, etc.

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Project Management Business Documents
 Project Business Case
–
Establish validity of the benefits of a project

–
Often preceded by needs assessment to understand business goals, issues, and opportunities.

–
Situation analysis looks at Required, Desired, and Optional criteria to establish the business need to be

addressed by the project.

–
Recommendation is made at the end for a Go/No-Go decision

Three options considered to address the business need:

1. Do nothing

2. Do the minimum work possible to address the problem or opportunity

3. Do more than the minimum work possible to address the problem or opportunity

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Project Management Business Documents
 Project Benefits Management Plan

Describes how and when the benefits of the project will be delivered, what mechanisms should be in place

to measure.

–
Key elements of the plan.

o Target benefits

o Strategic alignment

o Timeframe for realizing benefits

o Benefits owner

o Metrics

o Assumptions

o Risks
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Project Management Business Documents
 Project Charter & PM Plan

 Project Success Measures

–
How to determine if the project is successful or not?

–
Which factors to measure? How to measure?

–
Traditional: Time, cost, scope, quality

–
Latest: More focus on achieving project objectives

–
Financial measures, may include:
o Net present value (NPV)

o Internal rate of return (IRR)

o Return on investment (ROI)

o Payback period (PBP), and

o Benefit-cost ratio (BCR).

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Present Value
 Present Value (PV) and Net Present Value (NPV) both are
based on “time value of money” concepts
– Money in hand today is worth more than money in hand
tomorrow
 In PV, the approach is to take time out of the equation and
evaluate how much a project is worth right now.
 Example:
– If a project is expected to give an annual return of $100,000
for the next 5 years then PV will be less than $500,000 today
– If $500,000 is taken as whole and put into a bank it will be
more at the end of 5 years due to gained interest
 Higher the PV the better
– Among projects, projects with higher PVs will be chosen
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Net Present Value
 In Net Present Value the approach is same as Present
Value except that you also factor in your costs
 Example:
– Consider a construction project with a PV of $500,000 but
costs worth $100,000
– NPV is $500,000 - $100,000 = $400,000
 Higher the NPV the better
– Among projects, a project with higher NPV will be chosen,
e.g. among three projects A, B and C with NPVs of
$300,000, $125,000 and $400,000 respectively, Project C
will be chosen over Project A and Project B

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Internal Rate of Return
 Internal Rate of Return (IRR) is a finance term used to
express the project’s return as an interest rate
– In other words, it informs if the project were an interest rate,
what would be the return
 Another way of estimating the potential benefit of the
project
 IRR is the rate of interest used in NPV calculation which
makes NPV equal to zero.
 Higher the IRR the better. Among projects, project with
higher IRR will be chosen
– E.g. between two projects X and Y with IRR of 12.5% and
10.5% respectively, Project X will be chosen over Project Y

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Return on Investment
 Return on Investment (ROI) shows what return will be
made by investing in a project
 ROI = (Benefit – Cost) / Cost
 Example:
– Project A will take $200,000 to complete and the benefits
from the project in 1st year will be $250,000.
– ROI = (Benefit – Cost) / Cost
= ($250,000 - $200,000) / $200,000
= 50,000 / 200,000 = 1/4
– ROI in percentage is 25%
 Higher the ROI, the better
– Among projects, the project with higher ROI will be chosen

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Payback Period
 The payback period is how long it will take to recoup an
investment in a project
 Example:
– If someone owed you $1,000 payback can happen with
$250 over 4 installments in each quarter or $1,000 in one
quarter
– The payback period is 1 year for the first one and 1 quarter
for the second one with 2nd option being preferable
 Lower the Payback period, the better
– Among projects, project will lowest payback period will be
selected.

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Benefit Cost Ratio
 Benefit Cost Ratio (BCR) provides comparison based on
the ratio of benefits to costs
 Example:
– Project A will take $100,000 to complete and is expected to
make $200,000. Project B will take $150,000 for completion
and will make $200,000
– For Project A, BCR = 200,000 / 100,000 = 2
– For Project B, BCR = 200,000 / 150,000 = 1.33
– For project A BCR says that $2 benefit will be there for
every $1 of cost and for project B, it will be $ 1.33 benefit
for $1 of cost
– Higher BCR is better, therefore, Project A will be selected

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Opportunity Cost
 Opportunity Cost (OC) is based on the theory that a
certain amount of money can only be invested in one
place at a time by an organization
– It asks - “What is the cost of another opportunity that is
missed by investing money in this project?”
 Example:
– Project A will have a benefit of $200,000 and Project B will
have a benefit of $250,000.
– If a company invests on Project B, the opportunity cost will
be $200,000, as Project A will be left out
 Lower the OC, the better
– Among projects, project with lowest OC is selected

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Project Influences

 Enterprise Environmental Factors (EEF)

 Internal Organizational Process Assets (OPA)

th
Image Credit: PMBOK – 6 Edition

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Enterprise Environmental Factors
 Internal and external factors that impact or influence a
project’s success
– Refers to conditions not under the control of the project
team that influence the project
 Internal Factors:
– Culture, structure, governance
– Infrastructure, IT software
– Resource availability & employee capability
 External Factors:
– Marketplace conditions
– Social, cultural influences and legal restrictions
– Physical environment
– Standards, currency exchange rates, etc.

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Organizational Process Assets
 Include any or all process related assets from any or all
of the organizations involved in the project that can
influence the project’s success
 Organizational Process Assets can be grouped into two
categories:
– Processes and Procedures  Organizational standards
such as policies, guidelines, templates, financial control
procedures, risk control procedures, change control
procedures etc.
– Corporate Knowledge Base  Configuration management
knowledge base, financial database, historical information,
lessons learned, project files from previous projects etc.

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Cost & Staffing in Project Life Cycle

Image Credit – PMBOK 5th Edition

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Variable Impact vs. Project Time

Image Credit – PMBOK 5th Edition

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Organizational Structures

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Image Credit – PMBOK 5 Edition
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Organizational Structures

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Image Credit – PMBOK 5 Edition
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Organizational Structures

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Image Credit – PMBOK 5 Edition
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Organization’s Comparison

Functional
Weak Matrix

Strong Matrix Project-Oriented

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Image Credit – PMBOK 5 Edition
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Project Management Office (PMO)
 A PMO is an organized body or management structure
that standardizes the project related governance
processes and facilitates the sharing of resources,
methodologies, tools and techniques
 Projects supported or administered by PMO may or may
not be related but may be managed together depending
on the structure of the organization
 Various Types of PMO structures are:
– Supportive, Controlling and Directive
 PMOs create value through Standardization (e.g.,
process, systems), Knowledge (e.g., retention, training)
and Consulting (e.g., project, outcome)

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QUIZ QUESTIONS
(Module – 2)

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 Module – 2 (Project Management Framework)

Q – 1 – Which of the following is not a characteristic of a project?

A) Unique

B) Temporary

C) Creates value

D) Repetitive

Q – 2 – Which one of the following statement is not true?

A) A Program can have projects, but a project may not be part of a program

B) Projects and Programs in a Portfolio may not be interdependent or directly related

C) A Program can contain work outside the discrete projects under that Program

D) A Project must belong to one of the Portfolios in an Organization

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Q – 4 – PMBOK defines the project process capabilities in an organization using which of the following

standards?

A) CMM

B) CMMI

C) ISO

D) OPM3

Q – 5 – In which of the following is the Project manager’s role not full time?

A) Weak Matrix

B) Balanced Matrix

C) Strong Matrix

D) None of the above

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Q – 6 – Which of the following is©not
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a type All rights reserved.
of project management office?
Q – 7 – A 100 days long project is going through executing processes. The sponsor reviewed yesterday’s report

and objected that the day expense is very high and that at this rate the project will be over-budget when

finished. However, you are not worried. Why?

A) Project expense rate is not a good measure of project success

B) Project expense rate is same throughout the project

C) Project expense rate is lowest during executing

D) Project expense rate is highest during executing

Q – 8 – Which one of the following phase relationships defines the Agile methodology in

PMBOK?

A) Sequential phase relationship

B) Overlapping phase relationship

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Role of a Project Manager

Module - 3

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Agenda
 Definition of a Project Manager
 Influence of Project Manager
 Project Manager Competencies
 Project Manager Powers
 Leadership vs. Management
 Leadership Styles
 Project Manager – Personality Traits

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Definition of a Project Manager
 Project manager is the person assigned by the
performing organization to lead the team that is
responsible for achieving the project objectives
 Functional manager focuses on providing management
oversight for a functional or business unit
 Operations manager is responsible for ensuring that
business operations are efficient
 Project Manager can integrate at:
– Process level
– Cognitive level
– Context level, and
– Can navigate complexity from system and human behavior.

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 Influence of Project Manager
 The Project: Planning, executing, monitoring, controlling,
communicating, engaging stakeholders, etc.
 The Organization: Funding priorities, resource demands,
deliverable hand overs, aligning with strategic goals, etc.
 The Industry: Current industry trends, standards, technical
tools, economic forces, process improvement, etc.
 Professional Discipline: Training, continuing education,
development, CoP, etc.
 Across Disciplines: Educate other disciplines as to the
benefits of project management

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Project Manager Competencies
The PMI Talent Triangle
 Technical project management. The knowledge, skills, and
behaviors related to specific domains of project, program, and
portfolio management. The technical aspects of performing one’s
rose.

 Leadership. The knowledge, skills, and behaviors needed to guide,

motivate, and direct a team, to help an organization achieve its
business goals.

 Strategic and business management. The knowledge of and

expertise in the industry and organization that enhanced performance
and better delivers business outcomes.

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Project Manager Powers
• Positional – Formal, authoritative, legitimate
• Informational – control of gathering and distribution
• Referent – respect or admiration others hold
• Situational – gained in a unique situation, e.g. crisis
• Personal – charm, attraction
• Relational – networking, connections, alliances
• Expert – skill, experience, education
• Reward – ability to give praise, monetary or other
• Coercive – invoke discipline or punish
• Ingratiating – flattery, common ground to win favor
• Pressure-based – limit freedom of choice or movement
• Guilt-based – imposing sense of duty or obligation
• Persuasive – arguing to move people to desired outcome
• Avoiding – refusing to participate

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Leadership vs. Management

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 Leadership Styles
• Laissez-faire (hands-off)
• Allowing the team to make their own decisions and set their own goals
• Transactional (management by exception)
• Focus on goals, feedback, and accomplishment to determine rewards
• Servant leader
• Focus on team member’s growth, learning, autonomy, and well-being.
Community and collaboration comes before leadership
• Transformational
• Idealizing behaviors, Inspirational motivation, encouraging to be creative
and innovate
• Charismatic
• High-energy, enthusiastic, self-confident, able to inspire
• Interactional
• Combined transactional, transformational, and charismatic

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Project Manager – Personality Traits
 It is the thinking, feeling and behaving patterns.
– Authentic: Show open concern. Accept others as is.
– Courteous: Apply appropriate behavior and etiquette
– Creative: innovative, think differently, abstractly
– Cultural: sensitive to other cultures’ values, norms, beliefs
– Emotional: Can perceive emotions and manage them
– Intellectual: intelligent and smart
– Managerial: practice and potential in managing
– Political: able to make things happen
– Service-oriented: willing to serve others
– Social: understand and manage people
– Systemic: understand and build systems

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QUIZ QUESTIONS
(Module – 3)

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Module – 3 (Role of a project manager)

Question – 1: Richard is managing a software development project. Two of the team

members come forward with a problem on the timing of one of the deliverables. One team member thinks that the

deliverable should be done immediately and another thinks that it should be done at the end of the project. Richard

says it is to be done at some other time. What kind of power is used by Richard here?
A) Pressure-based

B) Relational

C) Positional

D) Informational

Q – 2: A project manager decided to allow the team to make the decisions and set their own goals? Which

leadership style is the project manager using?

A) Servant leader

B) Laissez-faire

C) Carte Blanche
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Q – 4: Which is the best opportunity to invest?

A) Costs: 400,000 Benefits:500,000

B) Costs: 200,000 Benefits:250,000

C) Costs: 500,000 Benefits:750,000

D) Costs: 700,000 Benefits:900,000

Q – 5: There are many personality traits of a project manager. The ability to make things happen is called

________ trait.

A) Intellectual

B) Social

C) Political

D) Systemic

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Q – 6: Which of the following is an©attribute
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of a leader? All rights reserved.
Q – 7: Some of your team members are recommending that an external 3rd party software product is suitable for the

project. You disagree with the recommendation as you do not find it will benefit the customer in the long run. What

type of leadership style you are using?

A) Transactional

B) Transformational

C) Interactional

D) Informational

Q – 8: Which of the following statement is true?

A) Ingratiating power is to impose sense of duty or obligation

B) Pressure-based power is to argue to move people to desired outcome

C) Relational power is to use alliances for a desired outcome

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Project Integration Management

Module - 4

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Agenda
 Key concepts for Project Integration Management
 Trends and Emerging Practices
 Tailoring and Agile Considerations
 Project Integration Management Process Areas
– Develop Project Charter
– Develop Project Management Plan
– Direct and Manage Project Work
– Manage Project Knowledge
– Monitor and Control Project Work
– Perform Integrated Change Control
– Close Project or Phase

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Key Concepts
 Specific to only project manager while specialists may
handle others knowledge areas
 It includes:
– Ensure due dates of deliverables, project life cycle, and
benefits management plan are aligned
– Provide overarching project management plan
– Ensure appropriate knowledge is created
– Make integrated decisions
– Collect data on the results, write performance report
– Complete all work for project or phase closure, etc.

The more complex the project, more complex integration

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Trends and Emerging Practices
 Use of automated tools
– Automated tools to collect and analyze data
 Use of visual management tools
– Dashboards, real-time overview of project status
 Project knowledge management
– Knowledge transfer using more sophisticated tools
 Expanding the project manager’s responsibilities
– Writing business cases, managing interfaces with functional and
operational departments
 Hybrid methodologies
– Agile and iterative practices, new business analysis techniques,
change management methods

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Tailoring & Agile Considerations
 Consider tailoring the following if suitable:
– Project and development life cycles
– Management approaches
– Knowledge management
– Changes
– Governance
– Lesson learned
– Benefits
For agile environments,
– Promote engagement of team members as local domain experts
in integration
– Focus on building a collaborative decision making environment

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Develop Project Charter (1/2)
 Develop Project Charter is the process of development of a
document that formally authorizes a project or a phase
 Project Charter formally authorizes a Project Manager to apply
organizational resources to project activities

Inputs Tools and Techniques Outputs

1. Business documents 1.Expert Judgment 1. Project

• Business case 2.Data gathering Charter
• Benefits management • Brainstorming 2. Assumption

plan • Focus groups log

2. Agreements • Interviews
3. Enterprise Environmental 3.Interpersonal & team skills
factors • Conflict management
4. Organizational Process • Facilitation
Assets • Meeting management
4. Meetings

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Develop Project Charter (2/2)
 Project Charter establishes partnership between performing
and requesting organizations
 Important inputs are:
– “Business Case” justifies the investment against the
benefits to be achieved.
– “Agreements” conveys the initial intentions of the project.
Can take the form of Contract (typically for external
customers), Memorandum of understanding (MoU), Service
Level Agreement (SLA), letter of intent, verbal agreements,
email, or other written agreements

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Reasons for Creating Business Case
– Market demand, e.g. a car company to build electric cars in
response to oil shortages
– Organizational need, e.g., reduce high overheads, build new
skill and capability in the organization
– Customer request, e.g., Add new feature to an existing product
– Technological advance, e.g., build electronic ticketing system
– Legal Requirement, e.g., compliance with Govt. rules and
regulations
– Ecological impacts, e.g., reduce pollution in a river
– Social need, e.g., provide potable water system in a developing
country

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Data Flow: Develop Project Charter

th
Source: PMBOK 6 Edition

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Expert Judgment
 It refers to making a decision by relying on expert advice
from one or more of the following sources:
– Other units within the organization
– Project Stakeholders, including customers and sponsors
– Consultants, professional/technical associations, industry groups
– Subject matter experts (SME) from within or outside of the
performing organization
– Project Management Office (PMO)
 Areas of expertise may include:
– Organizational strategy
– Benefits management
– Technical knowledge
– Duration and budget estimation
– Risk identification

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Project Charter
 Project Charter, the output from “Develop Project
Charter” Process, contains:
– Justification or purpose of the project
– Measurable project objectives & success criteria
– Assigned Project Manager, responsibility and authority
level and Projects Sponsor name and authority
– High level requirements
– High level project description, boundaries, key deliverables
– High level project level risks
– Summary milestone schedule
– Preapproved financial resources
– Key stakeholder list

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Develop Project Management Plan
 The process of defining, preparing, and coordinating all
plan components and consolidating them into an
integrated Project Management Plan
Inputs Tools and Techniques Outputs
1. Project Charter 1. Expert Judgment 1. Project
2. Outputs from other 2. Data gathering Management Plan
Processes • Brainstorming
3. Enterprise Environmental • Checklists
factors • Focus groups
4. Organizational Process • Interviews
Assets 3. Interpersonal and team
skills
• Conflict management
• Facilitation
• Meeting management
4. Meetings

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Data Flow: Develop Project Management Plan

th
Source: PMBOK 6 Edition

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Project Management Plan
 The Project Management Plan components include:
– Scope management plan and Requirements management plan
– Schedule, Cost, and Quality management plan
– Resource, Communications, and Risk management plan
– Procurement management and Stakeholder management plans

– Baselines – Schedule, Scope and Cost

– Change and Configuration management plans

– Performance measurement baseline
– Project life cycle
– Development approach
– Management reviews

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Direct & Manage Project Work (1/2)
 It is the process of leading and performing the work defined in the
Project Management Plan and implementing approved changes to
achieve project’s objectives.
Inputs Tools and Outputs
Techniques
1. Project Management Plan 1. Expert 1. Deliverables
2. Project documents Judgment 2. Work Performance Data
1. Change log 2. Project 3. Issue log
2. Lessons learned register Management 4. Change Requests
3. Milestone list Information 5. PM Plan Updates
4. Project communications System 6. Project Document Updates
5. Project schedule • Activity list
3. Meetings
6. Requirements traceability matrix • Assumption log
7. Risk register • Lessons learned register
8. Risk report • Requirements doc.
• Risk register
3. Approved Change Requests
• Stakeholder register
4. Enterprise Environmental factors
7. Organizational process
5. Organizational Process Assets assets updates

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Direct & Manage Project Work (2/2)
 Deliverables:
– A unique and verifiable product, result, or capability to perform a service
 Work Performance Data:
– Raw observations and measurements identified during activities being
performed to carry out the project work
 Issue log:
– Data may include, issue type, who raised it and when, description, priority,
who is assigned, target resolution date, status, and final solution.
 Change Requests:
– Corrective action: Intentional activity to realign the performance of project
work with the project management plan
– Preventive action: Intentional activity to ensure the future performance of
the project work is aligned with the plan
– Defect repair: Intentional activity to modify a nonconforming product
– Updates: Changes to formally controlled project documents

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Data Flow: Direct
and Manage Project
Work

th
Source: PMBOK 6 Edition
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Manage Project Knowledge
The process of using existing knowledge and creating new knowledge to
achieve the project’s objectives and contribute to organizational learning.

Inputs Tools and Techniques Outputs

1. Project Management Plan 1. Expert Judgment 1. Lessons learned
2. Project documents 2. Knowledge register
• Lessons learned register management 2. Project
• Project team assignments 3. Information Management Plan
• Resource breakdown management Updates
structure 4. Interpersonal and team 3. Organizational
• Source selection criteria skills process assets
• Stakeholder register • Active listening updates
3. Deliverables • Facilitation
4. Enterprise Environmental • Leadership
factors • Networking
5. Organizational Process • Political awareness
Assets

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Manage Project Knowledge
 Explicit knowledge
– Knowledge that can be readily codified using words, pictures, and numbers
 Tacit knowledge
– Knowledge that is personal and difficult to express, such as, beliefs,
insights, experience, and ‘know-how’

 Knowledge management is creating an atmosphere of trust so that

people are motivated to share their knowledge
 Tools and techniques will connect people to share tacit knowledge.
Some tools and techniques are,
– Networking, informal social and online interactions
– Meetings including virtual meetings, training, and workshops
– Communities of practice (CoP)
– Work shadowing and reverse shadowing
– Discussion forums, seminars, conferences, storytelling, etc.

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Data Flow: Manage Project Knowledge

th
Source: PMBOK 6 Edition

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Monitor and Control Project Work
 The process of tracking, reviewing and reporting the
progress to meet the performance objectives defined in
the Project Management Plan
Inputs Tools and Techniques Outputs
1. Project Management Plan 1. Expert Judgment 1. Work performance
2. Project documents 2. Data analysis reports
• Assumption & Issue log 1. Alternatives analysis 2. Change Requests
• Basis of estimates 2. Cost-benefit analysis 3. Project management
• Lessons learned register 3. Earned value analysis plan updates
• Milestone list 4. Root cause analysis 4. Project documents
• Quality reports 5. Trend analysis updates
• Risk register & report 6. Variance analysis • Cost forecasts
• Schedule forecasts 3. Decision making • Issue log
3. Work performance info. 4. Meetings • Lessons learned
4. Agreements register
5. Enterprise Env. factors • Risk register
6. Org. Process Assets • Schedule forecasts

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 Data Flow:
Monitor and
Control Project
Work

th
Source: PMBOK 6 Edition
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Monitor and Control Project Work
 Data analysis techniques may include:
– Alternatives analysis
– Cost-benefit analysis
– Earned value analysis
– Root cause analysis
– Trend analysis
– Variance analysis
 Work Performance Reports
– The physical or electronic representation of work performance
information intended to generate decisions, actions, or awareness.
– Circulated to project stakeholders as dashboards, heat reports, stop
light charts, etc.
– Contains earned value info, trend lines, forecasts, reserve burndown
charts, defect histograms, contract performance info, risk summaries,
etc.

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Perform Integrated Change Control
The process of reviewing all change requests, approving changes and
managing changes to the deliverables, project documents and Project
Management Plan, and communicating the decisions.
Inputs Tools and Techniques Outputs
1. Project Management Plan 1. Expert Judgment 1. Approved change
• Change mgmt. plan 2. Change control tools requests
• Configuration mgmt. plan 3. Data analysis 2. Project management
• Scope, schedule & cost 1. Alternatives analysis plan updates
baselines 2. Cost-benefit analysis 3. Project documents
2. Project documents 4. Decision making updates
• Basis of estimates • Voting • Change log
• Requirements traceability • Autocratic decision
matrix making
• Risk report • Multicriteria decision
3. Work performance reports analysis
4. Change requests 5. Meetings
5. Enterprise Env. factors
6. Org. Process Assets

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 Data Flow:
Perform
Integrated
Change
Control

th
Source: PMBOK 5 Edition 105
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Perform Integrated Change Control
Tools supporting configuration management work:
– Identify configuration item
– Record and report configuration item status
– Perform configuration item verification and audit

Tools supporting change management work:

– Identify changes
– Document changes
– Decide on changes
– Track changes

 Change Control Board (CCB) / Change Advisory Board (CAB)

– Authorized to approve or reject a change request

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 Close Project or Phase
 The process of finalizing all activities for the project, phase,
or contract
Inputs Tools and Techniques Outputs
1. Project charter 1. Expert Judgment 1. Final product,
2. Project Management Plan 2. Data analysis service, or result
3. Project documents 1. Document analysis transition
• Assumption/change/issue logs 2. Regression 2. Final report
• Basis of estimates analysis 3. Project documents
• Lessons learned register 3. Trend analysis updates
• Milestone list 4. Variance analysis • Lessons learned
• Project communications 3. Meetings register
• QC measurements & reports 4. Organizational
• Requirements docs. process assets
• Risk register and report updates
4. Accepted deliverables
5. Business documents
• Business case
• Benefits mgmt. plan
6. Agreements
7. Procurement documentation
8. Org. Process Assets

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 Data Flow:
Close
Project or
Phase

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Close Project or Phase
Required work to exit a phase or satisfy completion:
– All docs. & deliverables up-to-date and all issues resolved
– Deliverables delivered and formally accepted by customer
– All costs charged, project accounts closed, resources
reassigned or reallocated.
– Final project report done as per requirement
Work needed for completion of contractual agreements:
–Confirm formal acceptance of seller’s work,
– Finalize open claims
– Archive information for future use, etc.
 Work needed to:
– Collect phase or project records
– Audit project, identify lessons learned, Archive information
– Measure stakeholder satisfaction, etc.

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QUIZ QUESTIONS
(Module – 4)

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 Module – 4 (Project Integration Management)

Q – 1 – Which of the following BEST describes the main purpose of the project charter?

A) It identifies the sponsor and describes his or her role on the project

B) It identified the list of important stakeholders in the project

C) It describes the initial scope of the work

D) It authorizes the project manager to work on the project

Q – 2 – You have recently joined a company as a Project Manager. You realized that project charter has

already been approved but no other work has yet started. What is your course of action?

A) You should use the approved charter as your guideline and start developing the project management plan
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B
Q – 3 – Tim joined a company midway into a project as a PM. He realized the project is in

trouble and needs to talk to certain important stakeholders. Which project document,

from which knowledge area will help him the most on this?

A) Project Charter in Integration Management

B) Project Communication Plan in Communications Management

C) Stakeholder Register in Stakeholder Management

D) Contract documents in Procurement Management

Q – 4 –Which process area is not part of Project Integration Management?

A) Direct and Manage Project Work

B) Manage Quality
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Q – 5 – The program manager in your project is asking why your project is taking 16

months. He feels it should take much less. He also claims that previous similar kind of projects were completed in 12

months. What will be the BEST thing to do?

A) Refer the program manager to the project plan and justify it

B) Explain the program manager that estimates should always err on the side of being too large

C) Look for historical information on the previous projects to understand them better

D) Call for meeting with all important stakeholders to discuss on the timeline

Q – 6 – The first version of project cost management plan is prepared in which process area

of which knowledge area?

A) Determine Budget in Cost Management

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B) Develop Project Management Plan in 2019 KnowledgePride.
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Q – 7– Change Requests can act as an input and an output respectively to which of the following process area

pairs?

A) Develop Project Management Plan &Monitor and Control Project work

B) Perform Integrated Change Control & Direct and Manage Project work

C) Monitor and Control Project work & Close Project or Phase

D) Develop Project Management Plan & Develop Project Charter

Q – 8 – As a project manager of your project you have been asked to select between two

projects. Project A will give you a return of $300,000 whereas Project B will give you a

return of $325, 000. What is the opportunity cost if Project B is selected?

A) $300,000
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Project Scope Management

Module - 5

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Agenda
 Concepts behind Project Scope Management
 Difference between Project Scope and Product Scope
 Project Scope Management Process Areas
– Plan Scope Management
– Collect Requirements
– Define Scope
– Create WBS
– Validate Scope
– Control Scope

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Project Scope Management
Scope Management includes the processes required to ensure
that project includes all the work required, and only the work
required, to complete the project successfully.

 Gold Plating:
– Performing work in a project that is not defined as part of the
project scope
 Scope Creep:
– Uncontrolled expansion to product or project scope. Typically
asked by end customers or other stakeholders
– As per PMI, every scope creep is to be treated as Change
Request and when approved to be part of the revised plan

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Project Scope Vs Product Scope
 Scope can refer to Project Scope or Product Scope
 Product Scope
– Features or functions that characterize a product, service
or result
 Project Scope
– Work that needs to be performed to deliver a product,
service or result
Example: A new mobile phone
 Product scope will include email and texting capability
 Project Scope will include all development, testing,
configuration and review work needed to create those
capabilities

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 Plan Scope Management
The process of creating a scope management plan that documents
how the project scope is defined, validated and controlled

Inputs Tools and Techniques Outputs

1. Project Charter 1. Expert judgment 1. Scope Management Plan

2. Project Mgmt. Plan 2. Data analysis 2. Requirements
• Quality mgmt. plan • Alternatives management plan
• Project life cycle analysis
description 3. Meetings
• Development
approach
3. Enterprise Env.
Factors
4. Org. Process Assets

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 Data Flow:
Plan Scope
Management

th
Source: PMBOK 6 Edition

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Scope & Requirement Mgmt. Plan
 Components of Scope Management Plan may include:
– Process for preparing the project scope statement
– Process to create, approve, and maintain WBS
– Process of how scope baseline will be approved & maintained
– Process of how to obtain formal acceptance of the project
deliverables and how to control change requests

 Components of Requirement Management Plan can include:

– Planning, tracking and reporting of requirement activities
– Configuration management activities including change
management
– Requirement prioritization process and metrics
– Traceability structure

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Collect Requirements (1/3)
The process of finding, documenting and managing stakeholder
needs to meet project objectives
Inputs Tools & Techniques Outputs
1. Project Charter 1. Expert judgment 1. Requirements
2. Project Mgmt. Plan 2. Data gathering documentation
• Scope mgmt. plan • Brainstorming, Benchmarking 2. Requirements
• Requirements mgmt. • Interviews, Focus groups traceability matrix
plan • Questionnaire and surveys
• Stakeholder mgmt. plan 3. Data analysis
3. Project documents • Document analysis
• Assumption log 4. Decision making. Voting
• Lessons learned register • Multicriteria decision analysis
• Stakeholder register 5. Data representation
4. Business documents • Affinity diagrams, Mind mapping
• Business case 6. Interpersonal and team skills
5. Enterprise Env. Factors • Nominal group technique
6. Org. Process Assets • Observation/conversation
• Facilitation
7. Context diagram
8. Prototypes

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 Collect Requirements (2/3)
Requirements can be categorized as:
– Business Requirements: Higher level needs of the organization as
a whole and why a project is undertaken
– Stakeholder Requirements: Needs of stakeholders
– Solution Requirements: Features, functions, and characteristics of
the product, service or result to meet business and stakeholder
requirements. It is categorized into Functional Requirements and
Nonfunctional Requirements
– Transition/Readiness Requirements: Temporary capabilities
– Project Requirements: Actions, processes, or other conditions the
project needs to meet
– Quality Requirements: Any condition or criteria needed to validate
the successful completion of project deliverables or fulfillment of
other project requirements

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Collect Requirements (3/3)
 Requirement Documentation:
– Includes various types of requirements and acceptance
criteria, assumptions, dependencies and constraints
 Requirement Traceability Matrix:
– A table that links requirements to their origin and traces
them through the project life cycle
 Decision Making Techniques:
– Unanimity, Majority, Plurality, Autocratic, Multicriteria
 Facilitation Techniques:
– Joint application development (JAD), Quality function
deployment (QFD), User stories

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Collect Requirements - RTM

th
Source: PMBOK 6 Edition

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 Data Flow:
Collect
Requirements

th
Source: PMBOK 6 Edition

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Define Scope
The process of developing a detailed description of the project
and product

Inputs Tools & Techniques Outputs

1. Project Charter 1. Expert judgment 1. Project scope
2. Project Mgmt. Plan 2. Data analysis statement
• Scope mgmt. plan • Alternatives analysis 2. Project documents
3. Project documents 3. Decision making updates
• Assumption log • Multicriteria decision • Assumption log
• Requirements analysis • Requirements
documentation 4. Interpersonal and team skills documentation
• Risk register • Facilitation • Requirement
4. Enterprise Env. Factors 5. Product analysis traceability matrix
5. Org. Process Assets • Stakeholder register

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Define Scope
Product Analysis: It is used to define products or services. Some of
the techniques used are:
– Product breakdown
– Requirements analysis
– Systems analysis
– Systems engineering
– Value analysis
– Value engineering

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Define Scope
Project Scope Statement: Describes in detail the project’s
deliverables and the work required to create those deliverables. It
includes:
– Product scope description: Characteristics of the product,
service or result as defined in the project charter or required
documentation
– Project deliverables: Includes both the product, service or result
as well as the ancillary ones such as reports and documentation
– Product acceptance criteria: A set of conditions required to be
met before deliverables are accepted
– Project exclusions: Items excluded from the project
– Project constraints: Constraints that limit project’s options
– Project assumptions: assumptions related to project scope and
their potential impact if proven to be false

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Data Flow: Define Scope

th
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Create WBS
Process of subdividing deliverables and project work into
smaller, more manageable components
– Manageable components are part of Work Breakdown
Structure (WBS)
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Expert judgment 1.Scope baseline
• Scope mgmt. plan 2. Decomposition 2.Project documents
2. Project documents updates
• Project scope statement • Assumption log
• Requirements • Requirements
documentation documentation
3. Enterprise Env. Factors
4. Org. Process Assets

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 A Sample WBS

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Source: PMBOK Guide 6 Edition

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Create WBS
 Work Breakdown Structure:
– Work Breakdown Structure as the name suggests is a
hierarchical decomposition of the work to be performed
– A technique used to create WBS – Decomposition
– Rolling wave planning used when decomposition not possible
– More detailed down the level and represents 100% rule
– At the lowest level of WBS – Work Package
– At the highest level (or L1), the project is mentioned
– Control accounts are assigned in WBS as a management control
point where scope, cost and schedule are integrated
– A control account may have one or more work packages
– A work package always belongs to one control account

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 Create WBS
 WBS Dictionary: Gives more detailed information about the
components of a WBS
 Code of account identifier (WBS ID)
 Description of work
 Schedule milestones, Estimated costs
 Responsible organization
 Resources needed
 Technical references
 Quality requirements, Acceptance criteria
 Scope Baseline:
– Scope baseline is a combination of three items:
 Project Scope Statement
 WBS including work packages and planning packages (below
control accounts)
 WBS Dictionary

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Data Flow: Create WBS

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Source: PMBOK 6 Edition

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 Validate Scope
Process of formalizing acceptance of the completed
deliverables
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Inspection 1. Accepted deliverables
• Scope mgmt. plan 2. Decision making 2. Work performance
• Requirements mgmt. • Voting information
plan 3. Change requests
• Scope baseline 4. Project documents
2. Project documents updates
• Lessons learned register • Lessons learned
• Quality reports register
• Requirements • Requirements
documentation documentation
• Requirements • Requirements
traceability matrix traceability matrix
3. Verified deliverables
4. Work performance data

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Validate Scope
 Validate Scope vs. Quality Control:
– Validate scope is concerned with the acceptance of the
deliverables where as Quality control is concerned with the
correctness of the deliverables
– Validate scope happens after Quality control, though both
can be performed in parallel
– Output from Quality control (Control Quality PA in Quality
Management KA) is “Verified Deliverables” which is an
input to the Validate Scope PA
– Output from Validate scope is “Accepted Deliverables”
which is fed into “Close Project or Phase” PA of Integration
Management KA for handing over to the customer

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Data Flow: Validate Scope

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Source: PMBOK 6 Edition

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Control Scope
The process of monitoring the status of the project and product
scope and managing changes to the Scope baseline, which is a
combination of Scope Statement, WBS and WBS dictionary
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Data analysis 1. Work performance info.
• Scope mgmt. plan • Variance analysis 2. Change requests
• Requirements mgmt. plan • Trend analysis 3. PM plan updates
• Change mgmt. plan 4. Scope mgmt. plan
• Configuration mgmt. plan 5. Scope, schedule, and
• Scope baseline cost baselines
• Performance measurement 6. Performance
baseline measurement baseline
2. Project documents 7. Project docs. updates
• Lessons learned register • Lessons learned
• Requirements documentation register
• Requirements traceability • Requirements docs.
matrix • Requirements
3. Work performance data traceability matrix
4. Org. process assets

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 Data
Flow:
Control
Scope

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Source: PMBOK 6 Edition

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QUIZ QUESTIONS
(Module – 5)

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 Module – 5 (Project Scope Management)

Q – 1 – Which of the following BEST describes the Scope Baseline?

A) WBS, WBS Dictionary and Project Management Plan

B) WBS Dictionary, WBS and Requirement Management Plan

C) WBS, WBS Dictionary and Scope Statement

D) WBS, WBS Dictionary and Requirement Documents

Q -2 – Your project team is executing the work packages for your project when a serious

disagreement regarding the interpretation of the scope is brought to your attention by two of your trusted team

members. What is the best way for this dispute to be resolved?

A) Project team should decide on the resolution

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B) Dispute should be resolved in favor ©
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the customer
Q -3 – You recently joined as a Project Manager for a construction project. The construction has started, but you

found out that there was no WBS created for this project. What best choice do you have in such a case?

A) Stop construction on the project until the WBS is created

B) Refuse to manage the project

C) Consult the senior management team and provide added oversight on the construction phase

D) Check on the historical information for this project

Q – 4 – The most important part of validating project scope is:

A) Gaining formal acceptance of the project deliverables from the customer

B) Checking the scope of the project against stakeholder expectations

C) Verifying that the project came in on time and on budget

D) Verifying that the project met quality specifications

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Q – 6 – The difference between gold plating and scope creep is (choose the most suitable one):

A) In gold plating the customers asks for more work, where as in scope creep the team does more work

B) In gold plating the team does more than needed, where as in scope creep the customer adds more

scope without an approved change request (not in approved baseline)

C) In scope creep, the requirements are not clear and changed whereas in gold plating the

requirements are clear

D) In scope creep, the buyer pays the price for additional work, whereas in gold plating the seller pays

for additional work

Q - 7 – Which one of the following is not a group decision making technique?

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A) Unanimity © 2019 KnowledgePride. All rights reserved.
Q - 8 – You as a project manager have called for a facilitated workshop with your team and the product manager of

the product. The team is trying to understand the requirements and break them down into various set of tasks to

be performed under a release schedule. Which work is being performed by the team?

A) Rolling wave planning

B) Decomposition

C) Alternative identification

D) Brainstorming

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Project Schedule Management

Module - 6

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Agenda
 Concepts for Project Schedule Management
 Project Schedule Management Process Areas
– Plan Schedule Management
– Define Activities
– Sequence Activities
– Estimate Activity Durations
– Develop Schedule
– Control Schedule

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Project Schedule Management
 Develops a detailed plan of how and when project deliverables
will be created
 For smaller projects, all the processes are done in a way as if
it is just one process
 The detailed schedule should be generally flexible since more
knowledge and understanding may result in modifying the plan

Trends & Emerging Practices

 Iterative scheduling with a backlog
 On-demand scheduling (also known as kanban system based
on Theory of constraint)

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 Plan Schedule Management
The process of establishing the policies, procedures, and
documentation for planning, developing, managing, executing,
and controlling the project schedule

Inputs Tools & Techniques Outputs

1. Project charter 1. Expert judgment 1. Schedule
2. Project Management Plan 2. Data analysis management plan
• Scope management plan 3. Meetings
• Development approach
3. Enterprise Environmental
factors
4. Organizational process
assets

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Data Flow: Plan Schedule Management

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Source: PMBOK 6 Edition

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Schedule Management Plan
 Establishes the criteria and the activities for developing,
monitoring, and controlling the schedule
 A component of the Project Management Plan
 Establishes the following:
– Project schedule model development
– Release and iteration length
– Level of accuracy and Units of measure
– Organizational procedures link
– Project schedule model maintenance
– Control thresholds
– Rules of performance measurement
– Reporting formats

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Define Activities
The process of identifying and documenting specific actions to be
performed to produce the project deliverables

Inputs Tools & Techniques Outputs

1. Project Management Plan 1. Expert judgment 1. Activity list
• Schedule management 2. Decomposition 2. Activity attributes
plan 3. Rolling wave 3. Milestone list
• Scope baseline planning 4. Project management
2. Enterprise environmental 4. Meetings plan updates
factors • Schedule baseline
3. Organizational process • Cost baseline
assets

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Define Activities
 Activity List: may be regularly updated on agile projects
 Activity Attributes include:
– Activity identifier ID
– WBS ID
– Activity Label/Name

When completed, it may include,

– Duration and Start / End Date
– Resource Assigned
– Predecessor / Successor activities
– Logical Relationships, leads/lags

 Milestone List: Can be mandatory and/or optional

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Define Activities
 Decomposition:
– The act of breaking down the work packages (smallest
deliverables) further to activity level to provide effort
needed for completion of work

 Rolling Wave Planning:

– A form of an iterative planning technique where work to be
accomplished in the near term is planned in detail whereas
future work is planned as more details become available
later

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Data Flow: Define Activities

th
Source: PMBOK 6 Edition

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Sequence Activities
 Process of identifying and documenting relationships
among project activities
– Activity sequencing is done with logical relationships

Inputs Tools & Techniques Outputs

1. Project Management Plan 1. Precedence 1. Project schedule
• Schedule management plan diagramming network diagram
• Scope baseline method 2. Project documents
2. Project documents 2. Dependency updates
• Activity attributes determination and • Activity attributes
• Activity list integration • Activity list
• Assumption log 3. Leads and lags • Assumption log
• Milestone list 4. Project • Milestone list
3. Enterprise environmental management
factors information system
4. Organizational process assets

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Data Flow: Sequence Activities

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Source: PMBOK 6 Edition

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Gantt Chart
 Provides a graphical illustration of a schedule that helps to
plan, coordinate, and track specific tasks in a project
 Contains the start & finish dates of the elements of a project
 Constructed with a horizontal axis representing the total time
span of the project that is broken down with each activity
duration span

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Precedence Diagramming Method
 Technique used for constructing a schedule model
– Activities are the nodes
– Also known as Activity on Node (AON)
– All kinds of dependencies are applicable, i.e.

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Activity Dependencies
 Four types of dependencies:
– Mandatory Dependencies:
 Also called hard dependencies or hard logic
 Often involves physical limitation, e.g. painting a room after
building the walls
– Discretionary Dependencies:
 Also known as Preferred / Preferential logic or Soft logic
 Useful while compressing the schedule, e.g., testing after
complete development (it can be sequential or parallel)
– External Dependencies:
 Involves relationships between project and non-project
activities that are outside the project team’s control
– Internal Dependencies:
 Involve the precedence relationship between project activities
that are within the team’s control

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Lead and Lag
 Lead
– By what time a successor activity is leading the
predecessor activity
– Informed in negative integers when defined in the
predecessor field of the successor activity
 Lag
– By what time a successor activity is lagging the
predecessor activity
– Entered in positive integers when defined in the
predecessor field of the successor activity
 Example: Two activities P and Q, with Q being successor
and a lag of 2 days and FS dependency with P, will have
FS + 2 in its predecessor field of activity P

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 Estimate Activity Durations
The process of estimating the number of work periods needed
to complete individual activities with estimated resources
Inputs Tools & Techniques Outputs
1. Project Management Plan 1. Expert judgment 1.Duration estimate
• Schedule management plan 2. Analogous estimating 2.Basis of estimates
• Scope baseline 3. Parametric estimating 3.Project documents
2. Project documents 4. Three-point estimating updates
• Activity attributes 5. Bottom-up estimating • Activity attributes
• Activity list 6. Data analysis • Assumption log
• Assumption log • Alternative analysis • Lessons learned
• Lessons learned register • Reserve analysis register
• Milestone list 7. Decision making
• Project team assignments 8. Meetings
• Resource breakdown structure
• Resource calendars
• Resource requirements
• Risk register
3. Enterprise Env. factors
4. Organizational process assets

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Data Flow: Estimate Activity Durations

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Source: PMBOK 6 Edition

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Estimation Techniques
 The estimate is a quantitative assessment of the likely amount
or outcome. Various types of estimation techniques include:
– Rough Order of Magnitude: -25% to +75%
– Analogous Estimate: An estimate done using the values of
parameters from previous experiences with similar activities or
project. Less costly, less time consuming, less accurate
– Parametric Estimate: Uses a statistical relationship between
historical data and other variables to calculate an estimate for
activity parameters e.g. multiplying the planned work to be
performed by the historical cost per work unit to obtain an
estimated cost value.
– Bottom-up Estimate: Estimating based on individual work
packages of the WBS and rolled-up to get the total estimate for
the project (100% rule). This estimate is normally the most
accurate but time taking and expensive method.

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Estimation Techniques
 Three-point estimates: A technique with a simple or weighted
average of optimistic, pessimistic and most likely estimates.
Formulae are:
– E = (O + 4M + P)/6 for Beta Distribution
– E = (O + M + P)/3 for Triangular Distribution
E = PERT estimate (time or cost) called Expected Value
O = Optimistic M = Most Likely P = Pessimistic
 Beta distribution is PERT (Program Evaluation and Review
Technique)
 Example:
– PERT Estimate for an activity that would at best be completed
within 5 days, at worst within 15 days, but most likely within 7
days, will be 8 days (Beta distribution)

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PERT Analysis Steps
 Calculate the estimated duration for each activity using:
– Beta distribution formula = (O + 4M + P)/6
– Standard deviation (σ) = (P – O)/6

 Draw the project schedule network diagram and analyze

the paths in the network
 Determine the length of critical path based on Beta
distribution based duration estimates
 Calculate the standard deviation of the critical path as:

√(σ Task 1)² + (σ Task 2)² + (σ Task 3)² + . . .

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 PERT Example
Activity O M P PERT SD (σ) (σ)² Estimate Range
Duration
A 16 26 54 29 6.33 40.11 29 ± 6.33
B 40 59 84 60 7.33 53.78 60 ± 7.33
C 40 45 56 46 2.67 7.11 46 ± 2.67
D 30 38 40 37 1.67 2.78 37 ± 1.67
Path 172 10.19 103.78

 Question – If A, B, C and D are the only activities in a project and all

are on the critical path, what is the project duration?
– Answer – Duration is 172 with an SD of 10.19
 Notes:
– The probability of completing the project between:
– 161.81 and 182.19 days is 68.27% (one sigma or 1σ)
– 141.44 and 202.56 days is 99.73% (three sigma or 3σ)
– 110.86 and 233.14 days is 99.999966% (six sigma or 6σ)

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Data Analysis
 Alternative analysis: Used to compare resource capability and
skill levels; make rent or buy decisions; tool selection; and
scheduling compression techniques, etc.
 Reserve Analysis: An analytical technique to determine the
essential features and relationships of components in the project
management plan to establish a reserve for the schedule duration or
budget for a project.
– Contingency reserve: Estimated duration to manage
identified risks. Can be percentage or effort days. More
information may result in using, reducing, or eliminating the
contingency reserve.
– Management reserve: Held to address unknowns-unknowns
(unforeseen) risks. It is not part of baselines
 Decision Making: A voting method called Fist-of-Five method can
be used
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 Develop Schedule
The process of analyzing activity sequences, durations, resource
requirements & schedule constraints to create project schedules
Inputs Tools & Techniques Outputs
1. Project Management Plan Schedule network
1. 1. Schedule baseline
• Schedule management plan analysis 2. Project schedule
• Scope baseline 2. Critical path method 3. Schedule data
2. Project documents 3. Resource 4. Project calendars
• Activity attributes and activity list optimization 5. Change requests
• Assumption log & Risk register 4. Data analysis 6. PM plan updates
• Duration estimates. Milestone list • What-if scenario • Sched. Mgmt. plan
• Basis of estimates analysis • Cost baseline
• Lessons learned register • Simulation 7. Project docs updates
• Schedule network diagrams 5. Leads and lags • Activity attributes
• Project team assignments 6. Schedule • Assumption log
• Resource calendars requirements compression • Duration estimates
3. Agreements 7. Project management • Lessons learned
4. Enterprise Env. factors information system register
5. Organizational process assets 8. Agile release • Resource reqs.
planning • Risk register

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 Data Flow:
Develop
Schedule

th
Source: PMBOK 6 Edition

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 Data Analysis
Schedule data analysis techniques may include:
 What-if scenario analysis
– Process of evaluating scenarios in order to understand their
impact which can be positive or negative on project.
– Investigating questions asked, such as “what if a particular
aspect is changed on the project?”
– The aim is to produce a more realistic schedule
 Simulation
– Simulation models the combined effect of uncertainties to
evaluate the potential impact
– Monte Carlo analysis is a computer based technique for what-if
analysis to predict overall project outcome
– It uses probability of success in meeting target dates, which can
be taken through random numbers or considering various,
assumptions, constraints, risks, and issues.
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Resource Optimization
 Resource Levelling:
Produces a resource Source: PMBOK 6
th
Edition
limited schedule
where no resource is
assigned more than
100%
 Resource
Smoothing:
Resource requirements
within predefined
resource limits and
also the Critical path
remains unchanged.
Unlike resource
leveling activities
may/may not be
adjusted.
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 Schedule Compression
 Crashing:
– Reduce duration for the least incremental cost by adding resources
– Other methods include: overtime work, weekend work, pay to
expedite delivery, etc.
– Always first applied to activities on the critical path
– Beyond a point it does not help, e.g., adding two drivers to run a car
does not make the car run faster!
 Fast tracking:
– Activities are made to work in parallel
– Discretionary dependencies may not be respected
– Mandatory dependencies cannot be modified
– Increases the risk of the project and rework may happen
– Sometime may result in cost increase or decrease in quality

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 Agile Release Planning
 It provides a high-level summary timeline of the release schedule
based on the product roadmap and the product vision
 Number of iterations/sprints in the release is also determined

th
Source: PMBOK 6 Edition
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 Critical Path Method
 Critical Path: It is the minimum project duration
– The longest duration through a network of tasks (activities)
– Critical tasks are tasks on the critical path
– Tasks on Critical path have a float value of zero
 Float:
– The amount of time a task can slip before it delays the project
– There are two common types of floats
 Free Float: Time a single task can be delayed without
delaying the early start of the successor task
 Total float: Time a single task can be delayed without
delaying project completion. Can be zero, positive, or
negative
L
 E
ES EF
Float is also equal to LS – ES or LF – EF
T 2d
 G
Duration is equal to EF-ES (forward pass calculation) or LF – LS (backward pass
LS LF
E
calculation)
N
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Critical Path Method
Activity Days Predecessors
A 2 Start A 2d B 3d

B 3 A C 4d

D 5d E 3d
C 4 B,E
S K 2d F
D 5 Start
F 1d G 2d
E 3 D
F 1 D H 2d I 3d J 5d

G 2 F
H 2 Start
The critical path is determined by:
I 3 H
1. Performing forward pass and calculate (ES and EF)
J 5 I
2. Performing backward pass and calculate LS and LF
K 2 C,G,J
3. Calculating float
4. Determining the critical path

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Critical Path Method

Critical path: Start – D – E – C – K – Finish (longest duration)

All tasks on the critical path have float zero

Important Exercise: Calculate ES,LS,EF and LF for tasks in the network diagram

L
ES EF
E

G T 2w
A 2d B 3d
8 12 E LS LF

C 4d N

D
0 5 5 8 8 12
12 14
S D 5d E 3d
0 5 5 8 K 2d F
12 14
F 1d G 2d

H 2d I 3d J 5d

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 Control Schedule
Process of monitoring schedule performance and controlling
changes to the schedule baseline
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Critical path method 1. Work performance info.
• Schedule mgmt. plan 2. Project management 2. Schedule forecasts
• Schedule baseline information system 3. Change requests
• Scope baseline 3. Resource optimization 4. PM plan updates
• Performance measurement 4. Leads and lags • Schedule mgmt. plan
baseline 5. Schedule compression • Schedule baseline
2. Project documents 6. Data analysis • Performance
• Lessons learned register • Earned value analysis measurement baseline
• Project calendars • Iteration burndown chart 5. Project docs. updates
• Project schedule • Performance reviews • Assumption log
• Resource calendars • Trend analysis • Basis of estimates
• Schedule data • Variance analysis • Lessons learned
3. Work performance data • What-if scenario analysis register
4. Org. process assets • Project schedule
• Resource calendars
• Risk register
• Schedule data

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Data Flow: Control Schedule

th
Source: PMBOK 6 Edition

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Iteration Burndown Chart

th
Source: PMBOK 6 Edition

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QUIZ QUESTIONS
(Module – 6)

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 Module – 6 (Project Time Management)

Q – 1 – What is the critical path of the project?

A) A-B-E-H-P

B) A-C-F-J-P

C) A-D-G-K-P

D) Cannot be determined from the

information given

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Q – 3 – You are doing PERT planning for a task of your project. The task has a pessimistic

estimate of 7 days, an optimistic estimate of 3 days and a most likely estimate of 5 days. What

will be the final estimate using PERT with beta distribution?

A) 4

B) 7

C) 5

D) 3

Q – 4 – Jon has been assigned the project manager and he finds issues in the planned schedule completion. There

are over hundred work packages in his plan and he has a very low confidence in the estimates for many of those

work packages. Which estimation technique will be the most suitable in such a situation?

A) Bottom-up estimation

B) Reserve estimation

C) Three point estimation

D) Analogous estimation 183

© 2019 KnowledgePride. All rights reserved.
Q – 6 – Sarah analyzed a project plan and found out that there are 4 critical paths for the project.

What is true about this project? (Choose all that apply)

A) Something went wrong in the analysis, as there cannot be more than 2 critical paths

B) The project is highly risky

C) Dependencies of the project are only of external type

D) There are a number of tasks in the project with a float of 0 days

Q – 7 – Which of the following is true for Crashing and Fast Tracking? (Choose all that apply)

A) Crashing results in increasing risk where as Fast tracking increases cost

B) Crashing results in increasing cost where as Fast tracking increases risk

C) Hard dependencies cannot be changed when crashing a schedule

D) In-place of crashing and fast tracking, CPM is a better way for schedule compression

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Project Cost Management

Module - 7

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Agenda
 Concepts behind Project Cost Management
 Project Cost Management Process Areas
– Plan Cost Management
– Estimates Costs
– Determine Budget
– Control Costs
 Earned Value Management (EVM)
– EVM Terms
– EVM Calculations
– EVM Example

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Project Cost Management
 Project Cost Management includes the processes involved in
planning, estimating, budgeting, funding and controlling costs
so that the project can be completed within the approved
budget
 It should also consider the effect of project decisions on the
recurring costs, as well as maintaining and supporting the
product, service, or result.

Trends & Emerging Practices

 Earned Schedule (ES): Replaces the earned value in the
schedule variance measure along with Actual Time (AT).

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Plan Cost Management
Process that establishes the policies, procedures and
documentation for estimating, budgeting, managing,
monitoring and controlling project costs
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Cost management
2. Project Management Plan 2. Data analysis plan
• Schedule management 3. Meetings
plan
• Risk management plan
3. Enterprise Environmental
factors
4. Organizational process
assets

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Data Flow: Plan Cost Management

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Cost Management Plan
 The cost management plan establishes the following:
– Units of measure
– Level of precision and level of accuracy
– Organizational procedure links (with the help of WBS)
– Control thresholds e.g. variance thresholds
– Rules of performance measurements e.g. with EVM
– Reporting formats and frequency
– Description of the processes that are to be documented
– Strategic funding choices: self, equity, or debt funding.
– Procedure for cost recording
– How to account for currency fluctuations

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Estimate Costs
The process of developing an approximation of cost of
resources needed to complete project activities
Inputs Tools & Techniques Outputs
1. Project Management Plan 1. Expert judgment 1. Cost estimates
• Cost management plan 2. Analogous estimating 2. Basis of estimates
• Quality management plan 3. Parametric estimating 3. Project documents
• Scope baseline 4. Bottom-up estimating updates
2. Project documents 5. Three-point estimating • Assumption log
• Lessons learned register 6. Data analysis • Lessons learned
• Project schedule • Alternatives analysis register
• Resources requirements • Reserve analysis • Risk register
• Risk register • Cost of quality
3. Enterprise Environmental 7. Projectmanagement
factors information system
4. Organizational process 8. Decision making
assets • Voting

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Data Flow: Estimate Costs

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 Determine Budget
The process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline
Inputs Tools & Techniques Outputs
1. Project Management Plan 1. Expert judgment 1. Cost baseline
• Cost management plan 2. Cost aggregation 2. Project funding
• Resource mgmt. plan 3. Data analysis requirements
• Scope baseline • Reserve analysis 3. Project documents
2. Project documents 4. Historical information updates
• Basis of estimates review • Cost estimates
• Cost estimates 5. Funding limit • Project schedule
• Project schedule reconciliation • Risk register
• Risk register 6. Financing
3. Business documents
• Business case
• Benefits mgmt. plan
4. Enterprise Env. factors
5. Org. process assets

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 Data Flow:
Determine
Budget

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Project Budget Component
Management reserve and Contingency reserve are used for
“unknown-unknowns” and “known-unknowns”, respectively

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Project Funding Requirements

The S-Curve

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Control Costs
The process of monitoring the status of the project to update
the project budget and managing changes to the cost baseline
Inputs Tools & Techniques Outputs
1. Project Management Plan 1. Expert judgment 1. Work performance
• Cost management plan 2. Data analysis information
• Cost baseline • Earned value 2. Cost forecasts
• Performance measurement analysis 3. Change requests
baseline • Variance analysis 4. Project management plan
2. Project documents • Trend analysis updates
• Lessons learned register • Reserve analysis • Cost management plan
3. Project funding requirements 3. To-complete • Cost baseline
4. Work performance data performance index • Performance
5. Organizational process 4. Project management measurement baseline
assets information system 5. Project docs. Updates
• Assumption log
• Basis of estimates
• Cost estimates
• Lessons learned register
• Risk register

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 Data
Flow:
Control
Cost

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Earned Value Management
 Earned value management (EVM) is a commonly used
technique to measure performance of a project
– Integrates scope, cost and schedule measures to help
management teams assess and measure project
performance
– Used to find variances in projects by comparing worked
performed against work planned
– A program management technique that uses “work in
progress” to predict what will happen to work in the future
– Results from an earned value analysis indicate deviation
from cost and schedule baselines on the project.
– It interprets monetary measures to determine both
schedule and cost variances.

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EVM Terms (1/2)
Term Abbreviation Description
Earned Value EV How much work was actually
completed till the status date?
(value of completed work)
Planned Value PV How much work should have been
completed till the status date?
Actual Cost AC How much total money has been
spent till status date?
Budget At Completion BAC How much was originally planned for
this project?
Estimate At Completion EAC What is the current total estimate to
complete the project?
Estimate To Complete ETC What is the current estimate to
complete the remaining work?
Variance At Completion VAC How much over or under budget do
we expect the project to be?

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 EVM Terms (2/2)
Term Abbreviation Description
Schedule Variance SV Difference between where we planned
to be in the schedule and where we are
now in the schedule
Cost Variance CV Difference between what we expected
to spend and what was actually spent
Schedule SPI Rate at which project performance index
Performance Index is meeting schedule expectations up to
status date
Cost Performance CPI Rate at which project performance index
Index is meeting cost expectations up to
status date
Cumulative Cost CPI© Combined CPI for all activities
Performance Index concerned

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 EVM Calculations (1/2)
Name Formula Interpretation
Budget At BAC is typically derived The project cost baseline
Completion from bottom-up estimate of
(BAC) the project

Planned Value PV = Planned % Complete Planned % complete is

(PV) * BAC derived by dividing planned
work by total work
Earned Value EV = Actual % Complete Earned % complete is
(EV) * BAC derived by dividing actual
work by total work
Actual Cost Sum of costs till the status
(AC) date
Schedule Variance SV = EV – PV Negative is behind schedule
(SV) Positive is ahead of schedule

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 EVM Calculations (2/2)
Name Formula Interpretation
Cost Variance (CV) CV = EV – AC Negative is over budget.
Positive is under budget.
Schedule (SPI) SPI = EV / PV Less than 1, behind schedule
Performance Index Greater than 1, ahead of schedule
Cost Performance CPI = EV / AC Less than 1, over-budget
Index (CPI) Greater than 1, under-budget
Estimate At EAC = AC + ETC What has been spent till status date
Completion (EAC) and what will be spent in future

Estimate To ETC = BAC – EV Other forecast methods:

Complete (ETC) ETC = (BAC-EV)/CPI
ETC = (BAC-EV)/(CPI*SPI)
ETC = New Bottom-Up Estimate

Variance At VAC = BAC – EAC Negative  will need more money

Completion (VAC) Positive  will have money left.

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EVM Example (1/4)
 A house is being built with 4 walls. Each wall will cost $2000
and will take 2 days to build. The cost to build walls consists of
material, human and other resources. At the end of 6 days, it is
found that 2 walls are complete and cost incurred is $5000.
Perform EVM and interpret the data.
 Budget At Completion (BAC):
– Total cost to build 4 walls BAC = $2000 * 4 = $8000
 Actual Cost (AC):
– Cost incurred so far, AC = $5000
 Planned Value (PV):
– After 6 days, 3 walls should have been complete
– PV = Planned % Complete * BAC = (3/4) * $8000 = $6000
- OR -

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EVM Example (2/4)
– PV = 3 walls should be complete = 3 * $2000 = $6000
 Earned Value (EV):
– After 6 days, 2 walls are actually complete
– EV = Actual % Complete * BAC = (2/4) * $8000 = $4000 – OR –
– EV = 2 walls complete = 2 * $2000 = $4000
 Schedule Variance (SV):
– SV = EV – PV = $4000 - $6000 = - $2000
– Negative value means that we are losing time on this project and
behind schedule on this project
 Cost Variance (CV):
– CV = EV – AC = $4000 - $5000 = - $1000
– Negative value means that we are losing money on this project
and are over budget on this project

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EVM Example (3/4)
 Schedule Performance Index (SPI)
– SPI = EV / PV = $4000 / $6000 = 0.67
– Less than 1 means we are losing time on this project
– For every 1 day of effort, 0.67 days of effort is actually productive
 Cost Performance Index
– CPI = EV / AC = $4000 / $5000 = 0.80
– Less than 1 means we losing money on this project
– For every $1 spent, 80 cents of planned work is being done
 Estimate At Completion (EAC)
– EAC = BAC/CPI = $8000 / (0.80) = $10,000
– Estimated cost at completion of the project will be $10,000
instead of original planned budget of $8000

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EVM Example (4/4)
 Variance At Completion (VAC)
– VAC = BAC – EAC = $8000 - $10,000 = - $2000
– At current rate, the project will be $2000 over-budget at completion
 Estimate To Complete (ETC)
– ETC = EAC – AC = $10,000 - $5000 = $5000
– At the current rate of progress the project will need an extra $5000
to complete
 To Complete Performance Index (TCPI)
– Cost performance that is to be achieved on remaining work to meet
a specified management goal, such as the BAC or the EAC
– TCPI Formula based on the BAC = (BAC-EV) / (BAC – AC)
– $8000-$4000/$8000-$5000 = 1.33
– Greater than 1 means that the project will be harder to complete

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EVM Exercise
 A task is being executed. The task was baselined at 6
hours but 9 hours were spent to complete the task. The
budgeted spend rate was $100 per hour. Calculate the
CPI and the SPI.
 Answer:
BAC = $600, PV = $600, AC = $900, EV = $600

EAC = $900 so VAC = BAC – EAC = - $300

SV = EV – PV = 0, CV = EV – AC = - $300

SPI = EV / PV = 1.00 CPI = EV / AC = 0.67

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QUIZ QUESTIONS
(Module – 7)

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 Module – 7 (Project Cost Management)

Q – 1 – Which of the following is true for reserve analysis? (Choose all that apply)

A) Management reserves are included in the cost baseline

B) Management reserves are part of the overall project budget

C) Contingency reserves address “unknown-unknowns”

D) None of the above

Q – 2 – In a project SPI is found out to be 0.8. It means which of the following?

(Choose all that apply)

A) For every dollar spent, 80 cents is received back

B) For every 1 day of effort, 0.8 day of productive work is performed

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Q – 4 – You have analyzed 4 projects and found out the Benefit Cost Ratio (BCR) for them. Which of the following is

the best one to pursue?

A) BCR = 2

B) BCR = 1.5

C) BCR = 0

D) BCR = 1

Q – 5 – Estimate to complete indicates:

A) The total project amount that will be spent based on past performance

B) The projected remaining amount that will be spent based on past performance

C) The difference between what was budgeted and what is expected to be spent

D) The original planned completion cost minus the costs incurred to date
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Q – 7 – You are the project manager of a project that has a budget of $1,000,000 and is expected to last for 3 years. At

the end of year one , the project should have been 30% complete but it is only 20 percent complete. Cost incurred to

date is $400,000. What is the Budget at Completion?

A) $400,000

B) $600,000

C) $1,000,000

D) $1,100,000

Q – 8 – The value of all work that has been completed so far is:

A) Earned Value

B) Actual Cost

C) Planned Value 212

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Project Quality Management

Module - 8

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Agenda
 Concepts & Trends in Project Quality Management
 Quality Management Terms
 Project Quality Management Process Areas
– Plan Quality Management
– Manage Quality
– Control Quality

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Project Quality Management
 Project Quality Management includes the processes and
activities of the performing organization that determine
quality policies, objectives and responsibilities to plan,
manage, and control project and product quality.
 Quality Vs Grade:
– Quality  Degree to which a set of inherent characteristics
fulfills the requirements
– Grade  Category assigned to products or services having
same functional use but different technical characteristics
– Low quality is always a problem, low grade is not
– Example: A software product can be of high quality (not
many defects), but of low grade (least number of features)

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Trends & Emerging Practices (1/2)
 Understand difference between:
– Prevention (keeping errors out of the process) vs. Inspection
(keeping errors out of the hands of the customer)
– Attribute Sampling (result either confirms or does not confirm)
vs. Variable Sampling (result is rated on a continuous scale that
measures the degree of conformity)
– Tolerances (specified range of accepted results) vs. Control
Limits (thresholds, which can indicate whether the process is out
of control)
 Modern Quality Management focus is that:
– Customer satisfaction determines quality
– Continuous improvement is always followed
– Management is primarily responsible for quality
– Mutually beneficial partnership with suppliers

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Trends & Emerging Practices (2/2)
 Total Quality Management (TQM):
– States that everyone in the organization is responsible for
quality and has to contribute to the quality of the product
 Continuous Improvement (Kaizen):
– Constant process improvements and for small changes in
process of building products or services
 Six Sigma / Lean Six Sigma / P-D-C-A
 Just-in-Time (JIT):
– A manufacturing/supply chain approach
that brings inventory down to zero Also used in

– Total Productive Maintenance (TPM) Resource Management

 Theory of Constraints (TOC)

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Quality Management Terms (1/3)
 ISO 9000:
– Part of International Standard Organization to ensure that
companies document what they do and do what they document
 Statistical Independence:
– One outcome of the two processes is not linked together or
dependent on each other
– Rolling a die and getting a six 1st time or 2nd time are statistically
independent events
 Mutually Exclusive:
– States that one choice excludes all others
– Painting a house in green or blue are mutually exclusive events

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Quality Management Terms (2/3)
 Standard Deviation:
– Measure the variation in data
– Standard Deviation notation  σ
– 1 σ = 1 Standard Deviation from the Mean
 Six Sigma:
– Stands for 3.4 defects per 1 million opportunities
(or 1 million data points)
– 1σ=68.25% of data points will fall within 1 σ from the mean
– 2σ=95.46% of data points will fall within 2 σ from the mean
– 3σ=99.73% of data points will fall within 3 σ from the mean
– 6σ= 99.999966% of data points will fall within 6 σ from the
mean

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Quality Management Terms (3/3)
 Design of Experiment (DoE):
– A statistical method for identifying which factors may
influence specific variables or processes
– Used in Plan Quality to determine the number and types of
tests and their impact on the Cost of Quality (CoQ)
 Statistical Sampling:
– Involves part of the output for inspection in place of the whole
– For example choosing 50 test cases to execute out of 500
test cases available
 Benchmarking:
– Involves comparing actual practices to those of comparable
projects to identify best practices and provide a basis for
measuring performance

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Data Flow: Quality Management

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Plan Quality Management
The process of identifying quality requirements/standards for the
project & its deliverables and documenting how the project will
demonstrate compliance with relevant quality requirements
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Quality mgmt. plan
2. Project Management Plan 2. Data gathering 2. Quality metrics
• Requirements mgmt. plan • Benchmarking 3. Project management
• Risk management plan • Brainstorming, Interviews plan updates
• Stakeholder engage. plan 3. Data analysis • Risk mgmt. plan
• Scope baseline • Cost-benefit analysis • Scope baseline
3. Project documents • Cost of quality 4. Project documents
• Assumption log 4. Decision making updates
• Requirements docs. • Multicriteria decision analysis • Lessons learned
• Requirements traceability 5. Data representation register
matrix • Flow charts, Mind mapping • Requirements
• Risk register • Logical data models traceability matrix
• Stakeholder register • Matrix diagrams • Risk register
4. Enterprise Env. factors 6. Test and inspection planning • Stakeholder register
5. Org. process assets 7. Meetings

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Data Flow: Plan Quality Management

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Cost of Quality

th
Source: PMBOK Guide 5 Edition

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Flowchart
 Flowchart is a graphical representation of a process
showing relationships among process steps
– All flowcharts show activities, decision points and order of
processing
– During quality planning flowcharts can help a project
anticipate quality problems that might occur
– During quality control it can help by finding flaws,
bottlenecks and other less obvious features which cause
problems

START DO DECISION DO
DATA END

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Quality Management Plan
The quality management plan may include:
– Quality standards that will be used by the project
– Quality objectives of the project
– Quality roles and responsibilities
– Project deliverables and processes subjected to quality
review
– Planned activities for quality control and management
– Quality tools to be used
– Other aspects:
o Dealing with nonconformance procedures
o Corrective actions procedures
o Continuous improvement procedures

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 Manage Quality
Process of translating the quality management plan into
executable quality activities that incorporate the
organization’s quality policies into the project.
Inputs Tools & Techniques Outputs
1. Project 1. Data gathering (Checklists) 1. Quality reports
Management Plan 2. Data analysis 2. Test & evaluation docs.
• Quality • Alternatives analysis 3. Change requests
management plan • Document / process analysis 4. Project management plan
2. Project documents • Root cause analysis updates
• Lessons learned 3. Decision making • Quality mgmt. plan
register • Multicriteria decision analysis • Scope baseline
• Quality control 4. Data representation • Schedule baseline
measurements • Affinity / cause-effect diagrams • Cost baseline
• Quality metrics • Flow charts, Histograms 5. Project documents
• Risk report • Matrix / Scatter diagrams updates
3. Org. process 5. Audits / Problem solving • Issue log
assets 6. Design for X • Lessons learned
7. Quality improvement methods • Risk register

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Data Flow: Manage Quality

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Cause and Effect Diagram
 Also known as Ishikawa / Fishbone / Why-Why diagram
– A graphical tool that helps identify possible causes of a
problem leading to the final effect and determine the root cause

th
Source: PMBOK Guide 6 Edition

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Manage Quality: Tools & Techniques
Quality Audits: Objectives may include,
– Identify best practices being implemented
– Identify nonconformity, gaps, and shortcomings
– Share good practices from other
projects/organization/industry
– Proactively improve implementation of processes to help raise
team productivity
– Highlight contribution of audit in lesson learned repository of
the organization
Design for X:
– Set of technical guidelines that may be applied during the
design of a product for the optimization of a specific aspect of
the design. DfX can control and improve the product’s final
characteristics. Can be applied to reliability, deployment,
assembly, manufacturing, cost, service, usability, safety, and
quality.
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 Control Quality
Process of monitoring and recording the results of executing the quality
activities to assess performance and recommend necessary changes

Inputs Tools & Techniques Outputs

1. Project Mgmt. Plan 1. Data gathering 1. Quality control
• Quality Mgmt. plan • Checklists measurements
2. Project documents • Check sheets 2. Verified deliverables
• Lessons learned • Statistical sampling 3. Work performance
register • Questionnaires and information
• Quality metrics surveys 4. Change requests
• Test & Evaluation 2. Data analysis 5. Project management plan
documents • Performance reviews updates
3. Approved change • Root cause analysis • Quality mgmt. plan
requests 3. Inspection 6. Project documents
4. Deliverables 4. Testing/product evaluation updates
5. Work performance data 5. Data representation • Issue log
6. Enterprise Env. factors • Cause-and-effect diagrams • Lessons learned register
7. Org. process assets • Control charts / Histogram • Risk register
• Scatter diagrams • Test and evaluation
6. Meetings documents

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Data Flow: Control Quality

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 Histogram
 A histogram is a vertical bar chart showing how often a
particular variable state occurred
– Each column represents an attribute of the problem
– The height of each column represents the frequency of the
problem
– The most common causes of problems are identified by a
number and relative heights of the bars
100
90
80 Issue 1
70
60
50 Issue 2
40
30
20 Issue 3
10
0
Round 1 Round 2 Round 3

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 Control Chart
 Control charts are used to determine whether the process is
stable or has predictable performance
– UCL and LCL : Set at +3σ and -3σ from the Mean
– The process is considered to be out of control when a data point
exceeds a control limit or 7 consecutive points above/below mean

Upper Control Limit

(UCL)

Mean
Observed

Data

Lower Control Limit

Rule of Seven (LCL)

Process

Out of Control
Observation Sequence

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Check Sheet
 Also known as Tally sheets and can be used as a
checklist while gathering data. Facts are organized in a
manner that will facilitate the effective collection of
useful data about a potential quality problem.
– It is especially useful for gathering attribute data while
performing inspections to identify defects. This can be
later analyzed using a Pareto Diagram.

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Scatter Diagram
 Graphical pairs of numerical data, with one variable on
each axis, to look for a relationship. If the variables are
correlated, the points will fall along a line or curve.
– The better the correlation, the tighter the points will hug
the line.

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QUIZ QUESTIONS
(Module – 8)

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 Module – 8 (Project Quality Management)

Q – 1 – The auditor for project quality checked on the chart and found out that 7 points

are not properly placed and concluded there was a quality problem. Which chart can be used for

this purpose?

A) Control Chart

B) Pareto Chart

C) Flowchart

D) Scatter Diagram

Q – 2 – You are a project manager and have been called by the senior management team to

find out what standards and practices are being followed in your project. In such case what

is actually being performed?

A) Total Quality Management

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Q – 4 – Total Quality Management or TQM is one of major quality terms used in Quality

Management. Which of the following is most representative of the Total Quality Management

philosophy in an organization?

A) Decreasing inventory to zero or near zero level

B) Everyone should contribute to quality

C) Zero defects

D) Continues improvement is preferred over disruptive changes

Q – 5 – In the control chart, the upper and lower control limits are set typically at how many

standard deviations from the mean?

A) One standard deviation

B) Two standard deviations

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Q – 7 – Quality reports is an output of which process?

A) Plan Quality Management

B) Develop Schedule

C) Manage Quality

D) Control Quality

Q – 8 – All of the below tools and techniques are applicable to Control Quality other than:

A) Benchmarking

B) Control Chart

C) Scatter Diagram

D) Histogram
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Project Resource Management

Module - 9

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Agenda
 Concepts & Trends in Project Resource Management

 Project Resource Management Process Areas

– Plan Resource Management
– Estimate Activity Resources
– Acquire Resources
– Develop Team
– Manage Team
– Control Resources

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Project Resource Management
 Project Resource Management includes the processes to
identify, acquire, and manage the resources needed for the
successful completion of the project.
 Physical Resources: Equipment, material, facilities, and
infrastructure.
 Team Resources: Refers to human resources.
 Project manager is leader and manager of the team.
 Factors influencing project team:
– Team environment
– Geographical locations of team members
– Communications among stakeholders
– Organizational change management
– Internal and external politics
– Cultural issues and organizational uniqueness, etc.

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Trends & Emerging Practices
 Resource Management Methods: Resources generally are in
short supply. In order to efficiently manage them, Just-in-Time,
Kaizen, Total Productive Maintenance, Theory of Constraints and
other methods have become popular.
 Emotional Intelligence: There is more emphasis on Emotional
Intelligence (EI) that can be inbound (self management and self
awareness) and outbound (relationship management) competencies.
 Self-Organizing Teams: With the increase in agile adoption, the
concept of self-organizing team is also becoming popular. Such
teams are built with generalized specialists instead of subject matter
experts.
 Virtual/Distributed Teams: Newer technology like email, social
media, audio/video conferencing, web-based meetings, has made it
easier to adopt virtual teams.

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Plan Human Resource Management
The process of defining how to estimate, acquire,
manage, and use team and physical resources.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Resource management
2. Project Management 2. Data representation plan
Plan • Hierarchical charts 2. Team charter
• Quality management • Responsibility 3. Project documents
plan assignment matrix updates
• Scope baseline • Text-oriented • Assumption log
3. Project documents formats • Risk register
• Project schedule 3. Organization theory
• Requirements docs. 4. Meetings
• Risk register
• Stakeholder register
4. Enterprise Env. factors
5. Org. process assets

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Data Flow: Plan Resource Management

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Data Representation
 Hierarchical Charts:
– Work Breakdown Structure: Project deliverables broken down
into work packages showing high-level areas of responsibility.
– Organizational Breakdown Structure: Based on current
organizational structure showing departments, units, and teams.
– Resource Breakdown Structure: Hierarchical list of team and
physical resources by category and resource type. Can be used
for planning, managing, and controlling project.
 Assignment Matrix:
– Responsibility Assignment Matrix (RAM) shows project resources
assigned to each work package. A special type of RAM is RACI.
 Text-Oriented Formats:
– Detailed description of responsibilities in text format. May provide
responsibilities, authority, competencies, and qualifications.

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RACI Chart
 RACI Chart:
– A kind of RAM chart
– RACI – Responsible, Accountable, Consult and Inform

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Resource Management Plan
 Resource Management Plan may include:
– Identification of resources
– Acquiring resources
– Roles and responsibilities: Will have roles, authorities,
responsibility and competencies of the resources
– Project organization charts: Hierarchical, Matrix or Text
– Project team resource management: How project team
members will be defined, staffed, managed and released.
– Training: Developing competencies of the team members
– Team development: Method to develop team.
– Resource control: Methods to ensure enough physical
resources are available as needed. Includes inventory,
equipment, etc.
– Recognition planning: How, who, and when will team member
be recognized and rewarded.
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Estimate Activity Resources
The process of estimating team resources and the type
and quantities of materials, equipment, and supplies
necessary to perform project work.
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Expert judgment 1. Resource requirements
• Resource Mgmt. plan 2. Bottom-up estimating 2. Basis of estimates
• Scope baseline 3. Analogous estimating 3. Resource breakdown
2. Project documents 4. Parametric estimating structure
• Activity attributes 5. Data analysis 4. Project documents
• Activity list • Alternatives analysis updates
• Assumption log 6. Projectmanagement • Activity attributes
• Cost estimates information system • Assumption log
• Resource calendars 7. Meetings • Lessons learned
• Risk register register
3. Enterprise Env. factors
4. Org. process assets

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Data Flow: Estimate Activity Resources

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Resource Breakdown Structure

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Acquire Resources
The process of obtaining team members, facilities,
equipment, materials, supplies, and other resources.
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Decision making 1. Physical resource
• Resource Mgmt. plan • Multicriteria assignments
• Procurement Mgmt. 2. Project team assignments
decision analysis
3. Resource calendars
Plan 2. Interpersonal and
4. Change requests
• Cost baseline team skills 5. Project Mgmt plan updates
2. Project documents • Negotiation • Resource Mgmt. plan
• Project schedule 3. Pre-assignment • Cost baseline
• Resource calendars 4. Virtual teams 6. Project documents updates
• Resource • Lessons learned register
• Project schedule
requirements
• Resource breakdown Str.
• Stakeholder register
• Resource requirements
3. Enterprise Env. factors • Risk register
4. Org. process assets • Stakeholder register
7. Ent. Env. Factors updates
8. Org. Process Assets updates

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Data Flow: Acquire Resources

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Acquire Resources
 Internal: from functional and resource managers
 External: through procurement processes
 Multi-criteria Decision Analysis:
– Consists of Availability, Cost, Ability, Experience, Knowledge, Skills,
Attitude and International Factors
 Pre-Assignment:
– Physical and team resources identified in advance.
– Can occur if promised as part of competitive proposal, etc.
 Virtual Teams:
– Teams who fulfill their roles with little or no face-to-face communication.
– Email, audio/video conferencing, social media, etc. can be used.
– Makes it possible to include: geographically distributed, working from
home office, working different shifts/days, mobility limitations, travel
restrictions, etc. members to the team.

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Develop Team
The process of improving the competencies, team interaction
and overall team environment to enhance project performance.
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Colocation 1. Team performance
• Resource Mgmt. plan 2. Virtual teams assessments
2. Project documents 3. Communication 2. Change requests
• Lessons learned technology 3. Project Mgmt. plan updates
register 4. Interpersonal and team • Resource Mgmt. plan
• Project schedule skills 4. Project documents updates
• Project team • Conflict mgmt. • Lessons learned register
assignments • Influencing • Project schedule
• Resource calendars • Motivation • Project team assignments
• Team charter • Negotiation • Resource calendars
3. Enterprise Env. factors • Team building • Team charter
4. Org. process assets 5. Recognition and rewards 5. Enterprise Environmental
6. Training Factors updates
7. Individual and team 6. Organizational Process
assessments Assets updates
8. Meetings

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Data Flow: Develop Team

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Develop Team: Tuckman Ladder
 Forming: Team meets and learns about the project. Team
members are independent and not open.
 Storming: Team begins to address the project work. There will
be conflicting situation and it is the role of project manager to
see that it does not become destructive.
 Norming: Team members begin to work together and adjust
work habits. Team members begin to trust each other.
 Performing: Team is performing as a well organized unit.
They are interdependent and work through issues smoothly.
 Adjourning: Team completes the work and moves on from the
project.

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Develop Team: Tools & Techniques
 Ground Rules:
– Rules that establish clear expectations within team members for
acceptable behavior, e.g., switching off phones during team
meetings, etc.
 Co-location:
– Involves placing many or all of the most active team members in
the same physical location for enhanced team performance
– The ‘war room’ is a form of co-location
 Training:
– Can be formal or informal. Classroom, online, computer-based,
on-the-job, mentoring, and coaching are examples.
 Individual and team assessment:
– Get insight into strengths and weaknesses.
– Surveys, structured interviews, ability tests, focus groups, etc.

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Manage Team
The process of tracking team member performance, providing
feedback, resolving issues and managing changes to optimize
project performances
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Interpersonal and 1. Change requests
• Resource Mgmt. plan team skills 2. Project Mgmt. plan updates
2. Project documents • Conflict • Resource Mgmt. plan
• Issue log management • Schedule baseline
• Lessons learned register • Decision making • Cost baseline
• Project team assignments • Emotional 3. Project documents updates
• Team charter intelligence • Issue log
3. Work performance reports • Influencing • Lessons learned register
4. Team performance • Leadership • Project team assignments
assessments 2. Project management 4. Enterprise Environmental
5. Enterprise Env. factors information system Factors updates
6. Org. process assets

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 Data
Flow:
Manage
Team

th
Source: PMBOK 6 Edition

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Conflict Management
 Conflict is inevitable in project environment
 Sources of conflicts include scarce resource, scheduling priorities,
personal work styles.
 Conflict is a team issue
 Focus on issues, not personalities
 Focus on the present, not the past
 Factors that affect conflict resolution methods:
– Importance and intensity of conflict

– Time pressure for resolving the conflict

– Relative power of the people involved in the conflict

– Importance of maintaining a good relationship
– Motivation to resolve conflict on a long-term or short-term basis

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Conflict Management Techniques
1. Problem solve/Collaborate: resolving the root cause of issue.
Win-Win strategy and best solution
2. Force/Direct: pushing one’s viewpoint at the expense of
others; offers only win-lose solutions (Do it my way)
3. Compromise/Reconcile: searching for solutions that bring
some degree of satisfaction to all the parties. Lose-lose
condition. (Lets implement some part of your demands and
some of mine)
4. Smooth/Accommodate: emphasizing areas of agreement
rather than areas of difference (Your disagreement may cause
delay and lets get in to an agreement)
5. Withdraw/Avoid: retreating from an actual or potential conflict
situation (Lets deal with this later or not al all)

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 Control Resources
The process of ensuring that the physical resources assigned and
allocated to the project are available as planned, and monitoring the
planned vs. actual utilization and taking corrective actions as necessary.
Inputs Tools & Techniques Outputs
1. Project Mgmt. Plan 1. Data analysis 1. Work performance
• Resource Mgmt. plan • Alternatives analysis information
2. Project documents • Cost-benefit analysis 2. Change requests
• Issue log • Performance 3. Project Mgmt. plan updates
• Lessons learned register reviews • Resource Mgmt. plan
• Physical resource • Trend analysis • Schedule baseline
assignments 2. Problem solving • Cost baseline
• Project schedule 3. Interpersonal and 4. Project documents updates
• Resource breakdown team skills • Assumption log
structure • Negotiation • Issue log
• Resource requirements • Influencing • Lessons learned register
• Risk register 4. Project management • Physical resource
3. Work performance data information system assignments
4. Agreements • Resource breakdown
5. Org. process assets structure
• Risk register

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 Data Flow:
Control
Resources

th
Source: PMBOK 6 Edition

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Theories of Motivation
 Theories of motivation for Recognition & rewards
 Maslow Hierarchy of Needs:
– Abraham Maslow grouped human behavior into five basic
categories, which state that needs at the bottom must be
satisfied before the upper needs will be present

Self-Actualization
(Living and Working at
Higher Needs
Full Potential)
Esteem
(Promotion, Recognition, Feeling

Importance, Contribution)
Acceptance

(Being Part of the team)

Security
Lower Needs
(Freedom from fear, security, safety)
Psychological

(Basic biological needs such as food, clothing, sleep)

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 Theories of Motivation
 McGregor’s Theory X and Y:
– Theory X presumes that people are only interested in their selfish
goals. They are unmotivated, dislike work and must be forced to do
productive work. Theory X managers believe that constant
supervision is required for employees to achieve desired results.
– Theory Y assumes that people are naturally motivated to do good
work. Theory Y managers believe that their team members need
little external motivation and trust the team to do the desired work.
 Contingency Theory:
– Based on two sets of factors: 1st set of factors measure whether
the leader is task oriented or relationship oriented.
– 2nd Set of factors evaluates situational factors in the workplace
– Finally it is believed that in stressful times task-oriented managers
will be more effective and during calm times a relationship oriented
manager will be more effective

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Theories of Motivation
 Herzberg’s Motivation-Hygiene Theory:
– Both motivation and hygiene factors must be present
– Hygiene factors such as working conditions, paycheck,
work life balance etc. do not motivate in themselves.
– Motivation factors such as promotion and recognition will
not work without hygiene factors being already in place.
 Expectancy Theory:
– Anticipation of a reward for achieving desired outcomes is
a motivation.
 Achievement Theory:
– States that people need three things i.e. achievement,
power and affiliation for better performance

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QUIZ QUESTIONS
(Module – 9)

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 Module – 9 (Project Human Resource Management)

Question – 1: Richard is managing a software development project. Two of the team

members come forward with a problem on the timing of one of the deliverables. One team member thinks that the

deliverable should be done immediately and another thinks that it should be done at the end of the project. Richard

works out a solution so that it is done in some other time. Though both of the team members accepted the solution,

they were not happy with it. What kind of conflict resolution technique is used by Richard here?

A) Compromise

B) Force

C) Problem Solve

D) Withdraw

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Q – 2 –RACI chart is used to identify KnowledgePride.
which resources areAllworking
rights reserved.
with what kind of responsibilities. What does
Question – 3: Due to tough economic environment, there have been several rounds of layoffs at an organization.

Now the project teams involved are worried about their job security and their performance has decreased

significantly due to it. Which theory BEST supports this behavior?

A) Achievement Theory

B) Motivation-Hygiene Theory

C) X-Y Theory

D) Maslow’s Theory

Q – 4 – Resource Breakdown Structure is prepared in which process of resource management?

A) Plan Resource Management

B) Estimate Activity Resources

C) Acquire Resources

D) Develop Team

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Q – 6 – What is the correct sequence of steps during developing a project team?

A) Storming, Forming, Norming, Performing, Adjourning

B) Forming, Storming, Norming, Performing, Adjourning

C) Forming, Storming, Norming, Performing, Relieving

D) Forming, Storming, Performing, Achieving, Adjourning

Q – 7 – What is the best form of power given to the project Manager?

A) Reward

B) Expert

C) Referral

D) Formal

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Project Communications
Management

Module - 10

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Agenda
 Concepts & Trends in Project Communications
Management
 Project Communications Management Process Areas
– Plan Communications Management
– Manage Communications
– Monitor Communications

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Project Communications Management
 Includes the processes necessary to ensure that the
information needs of the project and its stakeholders are
met through development of artifacts and implementation
of activities designed to achieve affective information
exchange. It has two parts:
1. Develop strategy to ensure effective communication
2. Carry out activities to implement the strategy

 Communications skills refer to:

– Listening actively
– Awareness of cultural and personal differences
– Identifying, setting, and managing stakeholder expectations
– Enhancement of skills: persuading, motivating, coaching,
negotiating, and resolving conflict.
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Key Communications Concepts
 Various dimensions of communication:
– Written(physical, electronic) or Oral(Face-to-face, remote)
– Formal (reports, memos) or Informal (e.g. face-to-face)
– Internal (within project) or External (customer, media)
– Vertical (up & down the org) or Horizontal (with peers)
– Official (annual report) and Unofficial (off the record)
– Verbal (spoken words) & nonverbal (body language)
 5Cs of written communication for non-social media:
– Correct grammar and spelling
– Concise expression and elimination of excess words
– Clear purpose/expression directed to needs of the reader
– Coherent logical flow of ideas
– Controlling flow of words and ideas

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 Plan Communications Management
The process of developing an appropriate approach and plan for
project communications based on stakeholder information needs and
available organizational assets, and needs of the project.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Communications
2. Project Mgmt. plan 2. Communication requirements management plan
• Resource analysis 2. Project Mgmt. plan
management plan 3. Communication technology updates
• Stakeholder 4. Communication models • Stakeholder
engagement plan 5. Communication methods engagement plan
3. Project documents 6. Interpersonal & team skills 3. Project documents
• Requirements • Communication styles updates
documentation assessment • Project schedule
• Stakeholder register • Political awareness • Stakeholder register
4. Enterprise • Cultural awareness
environmental factors 7. Data representation
5. Organizational 8. Stakeholder engagement
process assets assessment matrix
9. Meetings

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Data Flow: Plan Communications Management

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Communication Requirements Analysis
 Communication channel:
– Paths of communication between parties participating in the
communication process, e.g., between 2 parties there can be 1
communication channel
– n = Number of people in the communication
n(n–1)

2
Number of People Communication Channels
4 6
6 15
10 45
20 190
50 1,225

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Communication Technology
 Communication technology plays an important role as
methods used to transfer communication may vary
significantly.
 Factors influencing choice of Communication Technology
include:
– Format, frequency and urgency of the need for
communication
– Availability of technology throughout the project
– Ease of use for the project participants
– Project environment, i.e., face to face or virtual teams
– Sensitivity and confidentiality of the information

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Communication Model
 Communication Model has two kind of participants:
– Sender  Encodes and sends the message
– Receiver  Receives & decodes the message then sends feedback

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Communication Methods
 Methods of Communication can be of 3 types:
– Interactive Communication  All stakeholders
communicate in real time and involves meetings,
audio/video conferencing and phone calls
 Most efficient among all three methods
– Push Communication  Information is distributed without
any feedback from the recipients. It is helpful for teams
separated geographically with different time zones.
Examples include email, voice mail, faxes, reports and
press releases
– Pull Communication  Used for very large information or
for very large audiences. Examples include intranet sites,
learning portals and online forums

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Communication Artifacts & Methods
 Notice boards
 Newsletters/e-Newsletters
 Letters to staff/volunteers
 Press releases
 Annual reports
 Emails and intranets
 Web portals and other repositories
 Phone conversations
 Presentations
 Team briefings/group meetings/Face-to-Face meetings
 Focus groups
 Social media and technology, etc.

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Communication Management Plan
 The Communication Management Plan is the subsidiary of the
Project Management Plan and usually provides:
– Stakeholder communication requirements
– Information to be communicated with language, format,
content, level of detail, etc.
– Timeframe and frequency of distribution of information
– The person responsible for communicating the information
– The person or group who will receive the information
– Methods and technologies used in communication
– Method of updating and revising the plan
– Information flow charts, workflows, etc.
– Escalation mechanism
– Communication constraints, if any

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Manage Communications
The process of creating, collecting, distributing, storing,
retrieving and the ultimate disposition of project information.
Inputs Tools & Techniques Outputs
1. Project Mgmt. plan 1. Communication technology 1. Project communications
• Resource management 2. Communication methods 2. PM. plan updates
plan 3. Communication skills • Communications
• Communications • Communication competence management plan
management plan • Feedback, Nonverbal • Stakeholder
• Stakeholder • Presentations engagement plan
engagement plan 4. Project management 3. Project documents
2. Project documents information system updates
• Change, Issue logs 5. Project reporting • Issue log
• Lessons learned 6. Interpersonal & team skills • Lessons learned
register • Active listening register
• Quality, Risk reports • Conflict management • Project schedule
• Stakeholder register • Cultural /Political awareness • Risk register
3. Work Perf. reports • Meeting management • Stakeholder register
4. Enterprise Env. factors • Networking 4. Organizational process
5. Org. process assets 7. Meetings assets updates

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Data Flow: Manage Communications

th
Source: PMBOK 5 Edition

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Techniques for Effective Communications
 Sender-receiver models: Incorporate feedback loops for
participation and barriers removal
 Choice of media: When to communicate writing vs. orally,
prepare informal memo vs. formal report, when to use push vs.
pull method, etc.
 Writing style: Active vs. passive voice, sentence structure,
and word choices
 Meeting management: for productive meetings
 Presentations: Visuals and body language
 Facilitation: Build consensus, overcome obstacles, etc.
 Active listening: Listen to understand, acknowledge, clarify,
confirm understanding.

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Monitor Communications
The process of ensuring the information needs of the project and
its stakeholders are met.
Inputs Tools & Techniques Outputs
1. Project Mgmt. plan 1. Expert judgment 1. Work performance
• Resource Mgmt. plan 2. Project management information
• Communications information system 2. Change requests
management plan 3. Data analysis 3. PM. plan updates
• Stakeholder • Stakeholder engagement • Communications
engagement plan assessment matrix management plan
2. Project documents 4. Interpersonal & team skills • Stakeholder
• Issue log • Observation/conversation engagement plan
• Lessons learned 5. Meetings 4. Project documents
register updates
• Project • Issue log
communications • Lessons learned
3. Work Perf. data register
4. Enterprise Env. factors • Stakeholder register
5. Org. process assets

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Data Flow: Monitor Communications

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Monitor Communications
 Impact and consequences of communication must be
evaluated and ensured that the:
 RIGHT CONTENT is delivered to the
 RIGHT AUDIENCE through the
 RIGHT CHANNEL and at the
 RIGHT TIME.

Expert Judgment
 When communicating with the public, the community, the media, the
virtual group and/or an international audience, expertise should be
sought from individuals and groups with specialized knowledge and
experience in each of these.

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QUIZ QUESTIONS
(Module – 10)

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 Module – 10 (Project Communication Management)

Q – 1 – You have prepared a project management plan and want to communicate with all the

stakeholders. Which form of communication will be used for this?

A) Formal, Verbal

B) Formal, Written

C) Informal, Verbal

D) Informal, Written

Q – 2 – You have a team of 15 people and recently one of the members moved to another

project in a separate project team. How many communication lines added or removed after

this movement?

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Q – 4 – The formula for determining the number of communication channels in a project is:

A) [N * (N-1)]/2

B) [N * (N+1)]/2

C) [N * (N+2)]/2

D) [N * (N-2)]/2

Q – 5 – You are working as a support project manager for a product. For better support you have created a

forum and the end customers are putting their questions, feedback, issues into the forum which is published

online. Which communication method is used in here?

A) Interactive communication

B) Push communication

C) Pull communication
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Q – 7 – Which one of the following is the most effective form of communication?

A) Email

B) Meeting

C) Face to face

D) Conference calls

Q – 8 – You have calculated the Earned Value for your project and found out that the SPI is 0.67 and the

CPI is 0.92 for your project. You have communicated this variance and the mitigations steps in place to

the stakeholders via email. Which form of communication is it?

A) Formal, verbal

B) Informal, verbal

C) Formal, written

D) Informal, written 294

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Project Risk Management

Module - 11

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Agenda
 Concepts & Trends in Risk Management
 Project Risk Management Process Areas
– Plan Risk Management
– Identify Risks
– Perform Qualitative Risk Analysis
– Perform Quantitative Risk Analysis
– Plan Risk Responses
– Implement Risk Responses
– Monitor Risks

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Project Risk Management
 Project Risk Management includes conducting risk
management planning, identification, analysis, response
planning, response implementation and the monitoring of
project risks.
 Risks can be at two levels:
– Individual project risk: An uncertain event or condition that, if
it occurs, has a positive or negative effect on one or more project
objectives.
– Overall project risk: The effect of uncertainty on the project as
a whole, arising from all sources of uncertainty including
individual risks, representing the exposure of stakeholders to the
implications of variations in project outcome, both positive and
negative.

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Trends & Emerging Practices
 Non-event Risks: Need to be identified and managed.
– Variability risk: Productivity above or below target, too many
errors found during testing, unseasonal weather conditions. Can
be evaluated using Monte Carlo analysis using probability
distributions
– Ambiguity risk: What may happen in future? Technical solution
ambiguity, future changes in regulations, high system complexity.
Managing approaches are incremental development, prototyping,
or simulation.
 Project resilience: Be ready and resilient to unknowable-
unknowns. Have budget and schedule contingencies, flexible
processes, empowered team, and frequent reviews.
 Integrated risk management: Involving program and portfolio
management and even larger organization.

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Plan Risk Management
The process of defining how to conduct risk management activities for
a project and ensure that the degree, type, and visibility of risk
management are proportionate to both risks and the importance of
the project to the organization and other stakeholders.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Risk management
2. Project management 2. Data analysis plan
plan • Stakeholder analysis
• All components 3. Meetings
3. Project documents
• Stakeholder register
4. Enterprise
environmental factors
5. Organizational
process assets

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Data Flow: Plan Risk Management

th
Source: PMBOK 5 Edition

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Risk Management Plan
 Risk Management Plan describes how risk management will be
performed in the project. It should contain:
– Strategy: General approach to managing project risks
– Methodology: Define approaches, tools and data sources
– Roles & responsibilities: Risk management team members
– Funding: Budgeting funds for risk management
– Timing: How and when risk management will be performed
– Risk Categories: Created by breaking risks into external or
internal types
– Risk Breakdown Structure (RBS)
– Stakeholder risk appetite: Acceptable level of risk exposure
– Definition of Risk Probability (P) & Impact (I) and PI Matrix
– Reporting Format and Tracking Mechanism

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Risk Categorization and RBS

th
Source: PMBOK Guide 6 Edition

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Probability and Impact Matrix

th
Source: PMBOK Guide 6 Edition

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 Identify Risks
The process of identifying individual project risks as well as
sources of overall project risk, documenting their characteristics.
Inputs Tools & Techniques Outputs
1. Project management plan 1. Expert judgment 1.Risk register
• Requirements Mgmt. plan 2. Data gathering 2.Risk report
• Schedule & Cost Mgmt. plan • Brainstorming 3.Project documents
• Quality Mgmt. plan • Checklists updates
• Risk & Resource Mgmt. plans • Interviews • Assumption log
• Scope, Schedule, 7 Cost baselines 3. Data analysis • Issue log
2. Project documents • Root cause analysis • Lessons learned
• Assumption and Issue logs • Assumption and register
• Cost and Duration estimates constraint analysis
• Lessons learned register • SWOT analysis
• Requirements docs. • Document analysis
• Resource requirements 4. Interpersonal & team
• Stakeholder register skills
3. Agreements • Facilitation
4. Procurement docs. 5. Prompt lists
5. Enterprise environmental factors 6. Meetings
6. Organizational process assets

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 Data Flow:
Identify
Risks

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 Identify Risks: Tools & Techniques
 Assumption and Constraint analysis: Inaccuracy, instability,
inconsistency, or incompleteness of assumptions can identify threats.
Constraints can help identify opportunities to improve execution.
 Prompt Lists: A prompt list is a predetermined list of risks categories
that might give rise to individual project risks. Strategic framework to
identify risks.
– PESTLE (political, economic, social, technological, legal, environmental)
– TECOP (technical, environmental, commercial, operational, political)
– VUCA (volatility, uncertainty, complexity, ambiguity)
 SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats
– Strengths and weaknesses are internal to the project whereas
opportunities and threats are external

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Risk Register
Provides details of identified individual risks and gets updates
from Perform Qualitative Risk Analysis, Plan Risk Responses,
Implement Risk Responses, and Monitor Risks processes.

Identify risks process may result in the following content:

 List of identified risks
 Potential risk owners
 List of potential risk responses

Other information that may be established:

 Risk title, risk category, current risk status, risk causes, risk
triggers, WBS code of impacted activities, timing, etc.

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Perform Qualitative Risk Analysis
The process of prioritizing individual project risks for further
analysis or action by assessing their probability of occurrence
and impact as well as other characteristics.
Inputs Tools & Techniques Outputs
1. Project management 1. Expert judgment 1.Project documents
plan 2. Data gathering updates
• Risk Mgmt. plan • Interviews • Assumption log
2. Project documents 3. Data analysis • Issue log
• Assumption log • Risk data quality assessment • Risk register
• Risk register • Risk probability and impact • Risk report
• Stakeholder register assessment
3. Enterprise • Assessment of other risk parameters
environmental 4. Interpersonal & team skills
factors • Facilitation
4. Organizational 5. Risk categorization
process assets 6. Data representation
• Probability and impact matrix
• Hierarchical charts
7. Meetings

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Data Flow: Perform Qualitative Risk Analysis

th
Source: PMBOK 6 Edition

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Other Risk Parameters
 Urgency: How quickly a response has to be implemented
 Proximity: How long before risk impacts project objective
 Dormancy: Time between risk occurrence and impact discovery
 Manageability: How easy to manage the risk occurrence or impact.
 Controllability: How much control risk owner has over the outcome
 Detectability: How easy it is to detect & recognize results of a risk
 Connectivity: How related a risk is to other risks
 Strategic Impact: The potential for the risk to have a negative or
positive impact on organization’s strategic objectives
 Propinquity: The degree to which risk is perceived to be significant
by one or more stakeholders

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Hierarchical Charts: Bubble Chart
When more than two
parameters are used
to define risks, a
bubble chart can
provide a visual
representation.
– X-axis
– Y-axis
– Bubble size

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Perform Quantitative Risk Analysis
Process of numerically analyzing the effect of identified individual project
risks and other sources of uncertainty on overall project objectives
Inputs Tools & Techniques Outputs
1. Project management plan 1. Expert judgment 1.Project documents
• Risk Mgmt. plan 2. Data gathering updates
• Scope baseline • Interviews • Risk report
• Schedule baseline 3. Data analysis
• Cost baseline • Simulations
2. Project documents • Sensitivity analysis
• Assumption log • Decision tree analysis
• Basis of estimates • Influence diagrams
• Cost estimates 4. Interpersonal & team
• Cost/Schedule forecasts skills
• Duration estimates • Facilitation
• Milestone list 5. Representation of
• Resource requirements uncertainty
• Risk register
• Risk report
3. Enterprise environmental factors
4. Organizational process assets

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Data Flow: Perform Quantitative Risk Analysis

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 Data Analysis (1/3)
• Simulation: Typically performed using Monte Carlo analysis using
schedule network diagram and duration estimates. An integrated
quantitative cost-schedule risk analysis uses both inputs. The output
is a risk model (An S-curve).

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 Data Analysis (2/3)
• Sensitivity Analysis: It helps to determine which individual project
risks or other sources of uncertainty have the most potential impact
on project outcomes. When sorted by descending strength, this
analysis is represented by a Tornado diagram.

Expected Monetary Value (EMV):

multiply the values (positive for

threat & negative for weakness)

with probability of occurrence and

add them.

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 Data Analysis (3/3)
• Decision Tree Analysis: These are used to support selection of best of several alternative courses of action.

th
Source: PMBOK Guide 6 Edition

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 Plan Risk Responses
The process of developing options, selecting strategies, and agreeing
on actions to address overall project risk exposure, as well as to treat
individual project risks.
Inputs Tools & Techniques Outputs
1. Project management 1. Expert judgment 1. Change requests
plan 2. Data gathering 2. PM. Plan updates
• Resource Mgmt. plan • Interviews • Schedule/Cost/Quality
• Risk Mgmt. plan 3. Data analysis Mgmt. plans
• Cost baseline • Alternatives analysis • Resource Mgmt. plan
2. Project documents • Cost-benefit analysis • Procurement Mgmt. plan
• Lessons learned 4. Interpersonal/team skills • Scope/Schedule/Cost
register • Facilitation baselines
• Project schedule 5. Strategies for threats 3. Project docs. updates
• Project team /opportunities / for overall • Assumption log
assignments project risk • Cost forecasts
• Resource calendars 6. Contingent response • Lessons learned register
• Risk register & report strategies • Project schedule
• Stakeholder register 7. Decision making • Project team assignments
3. Enterprise Env. factors • Multicriteria decision • Risk register
4. Org. process assets analysis • Risk report

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Data Flow: Plan Risk Responses

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Strategies for Threats
 For threats the following strategies are used:
– Escalate  Threat is outside the project’s scope and need to be
handled at program, portfolio or other level in the organization.

– Avoid  Eliminate the threat altogether e.g. selecting an old

technology rather than a new and fast but unreliable technology

– Transfer  Transfer the risk to another party to make it their

responsibility e.g. buying an insurance plan for your family

– Mitigate  To reduce the impact of the risk e.g. putting up a tent

in case of bad weather and rain

– Accept  Acknowledge the threat exists, but no proactive action

is taken.

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Strategies for Opportunities
 For positive risks, the following strategies are used:
– Escalate Opportunity is outside of project scope so should be
handled at program, portfolio, or other level.

– Exploit  Exploiting the opportunities e.g. taking an existing

talented resource for better productivity

– Share  Sharing with another party e.g. a joint venture

– Enhance  Enhancing the opportunities e.g. adding more

resources to complete on time

– Accept  Acknowledge that an opportunity exists but no

proactive action is taken.
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Strategies for Overall Project Risk
 The following strategies are used:
– Avoid  Significantly negative overall project risk outside of risk
threshold may require an avoid strategy. e.g. removing highly
risky scope items

– Exploit  Significantly positive but outside the agreed risk

threshold may require an exploit strategy. e.g. adding highly
beneficial scope items

– Transfer/Share  If the overall project risk is high but the

organization is unable to address it effectively, a third party may
be involved e.g. a joint venture

– Mitigate/Enhance  Change the level of overall project risks to

optimize the chances of achieving the project’s objectives e.g.
replanning the project, changing resource allocation, etc.

– Accept  when noKnowledgePride.

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 Implement Risk Responses
The process of implementing agreed-upon risk response plans.

Inputs Tools & Techniques Outputs

1. Project management 1. Expert judgment 1. Change requests
plan 2. Interpersonal/team skills 2. Project docs. updates
• Risk management plan • Influencing • Issue log
2. Project documents 3. Project management • Lessons learned register
• Lessons learned information system • Project team assignments
register • Risk register
• Risk register • Risk report
• Risk report
3. Organizational process
assets

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Data Flow: Implement Risk Responses

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 Monitor Risks
The process of monitoring the implementation of agreed-upon
risk response plans, tracking identified risks, identifying and
analyzing new risks, and evaluating risk process effectiveness
throughout the project.
Inputs Tools & Techniques Outputs
1. Project management 1. Data analysis 1. Work performance
plan • Technical performance information
• Risk Mgmt. plan analysis 2. Change requests
2. Project documents • Reserve analysis 3. PM. Plan updates
• Issue log 2. Audits • Any component
• Lessons learned 3. Meetings 4. Project docs. updates
register • Assumption log
• Risk register • Issue log
• Risk report • Lessons learned register
3. Work performance data • Risk register
4. Work performance • Risk report
report 5. Organizational process
assets updates

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Data Flow: Monitor Risks

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QUIZ QUESTIONS
(Module – 11)

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 Module – 11 (Project Risk Management)

Q – 1 – A negative risk in a project has a 20% probability of prohibiting the execution of a

work package and the impact of not having executed the package is estimated at $20,000. It has a positive risk that

has a 10% probability of speeding up the execution of the same work package and if that happens, it will save the

project $25,000. What is the expected monetary value (EMV) for the work package based on the risk analysis?

A) -$1,500

B) $1,500

C) $2,000

D) -$2,000

Q – 2 – Risk register contains details including the category of the risk, a risk ID, activity impacted, the P and I

values etc. Risk Register is created in which process?

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Q – 3 – SWOT analysis is used in Risk identification. Which of the following statement(s) is (are) true for SWOT

analysis? (Choose all that apply)

A) Strength is typically internal where as Opportunity is typically external

B) Weakness is typically internal where as Opportunity is typically external

C) Strength is typically external where as Threat is typically internal

D) Weakness is typically internal where as Threat is typically external

Q – 4 – Which of the following technique is not a diagramming technique in Risk Management?

A) Bubble Chart

B) Run Chart

C) Decision Tree Diagram

D) Influence Chart
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Q – 6 – You are planning to take a health insurance plan for your family. By doing it you want to check on untoward

health related issues. Which kind of risk response strategy is it?

A) Avoid

B) Transfer

C) Accept

D) Exploit

Q – 7 – Tornado diagram technique is employed in which risk management process?

A) Plan Risk Management

B) Identify Risks

C) Perform Qualitative Risk Analysis

D) Perform Quantitative Risk Analysis

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Project Procurement Management

Module - 12

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Agenda
 Concepts & Trends in Project Procurement Management
 Project Procurement Management Process Areas
– Plan Procurement Management
– Conduct Procurement
– Control Procurement

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Project Procurement Management
 Project Procurement Management includes the processes
necessary to purchase or acquire products or services or
results from outside the project team.
– An organization can either be a buyer or a seller
– Procurement management also involves administering any
contract or contractual obligations from a buyer or seller
perspective
– It can be a contract, purchase order, memoranda of agreements
(MOA), service level agreement (SLA), etc.
 Contract:
– A procurement contract is a mutually binding legal agreement
that obligates the seller to provide the specified products or
services or results
– It also obligates the buyer to compensate the seller

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Trends & Emerging Practices
 Seller is also called: bidder, contractor, vendor, service provider, or
supplier.
 Buyer may also be called: service requestor, acquiring organization,
purchaser, or owner of the final product.
 The invitation to bid and bidding process has been using online tools
extensively. Building information model (BIM) helps reduce time and
effort.
 More emphasis is being put into upfront risk management during the
bidding process.
 Multibillion dollars projects with international contracts in place is
necessitating use of standard forms and a close working
relationship.
 Technology use including video data has increased.
 Trail engagements are also being practiced.

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 Plan Procurement Management
The process of documenting project purchasing decisions, specifying
the approach, and identifying potential sellers.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Procurement management
2. Business documents 2. Data gathering plan
• Business case • Market research 2. Procurement strategy
• Benefits Mgmt. plan 3. Data analysis 3. Bid documents
3. Project Mgmt. plan • Make or buy 4. Procurement statement of
• Scope/Quality/Resource analysis work
management plans 4. Source selection 5. Source selection criteria
• Scope baseline analysis 6. Make-or-Buy decisions
4. Project documents 5. Meetings 7. Independent cost estimates
• Milestone list 8. Change requests
• Project team assignments 9. Project docs. updates
• Requirements docs. • Lessons learned register
• Reqs. traceability matrix • Milestone list
• Resource requirements • Requirements docs.
• Risk register • Reqs. traceability matrix
• Stakeholder register • Risk register
5. Enterprise Env. factors • Stakeholder register
6. Organizational process assets 10. Org. Process assets updates

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 Data Flow: Plan
Procurement
Management

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Contract Types (1/3)
1. Fixed Price Contracts
a) Price is firm, may have some incentives or adjustments
b) Cost and profit/fee is not separated
c) Buyer has least risk. Well defined scope
2. Cost Reimbursable Contracts
a) Costs reimbursed plus additional amounts
b) Buyer has most risk
c) Objectives are well defined but how to achieve not known
3. Time & Material / Unit-Price Contracts
a) Rate per hour, per unit etc. Usually for small work pieces
b) Buyer has medium risk
c) Very little information about what to achieve and how
d) Lowest risk for the seller

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Contract Types (2/3)
 Fixed Price (Lump sum) Contract:
– Firm Fixed Price (FFP): Price is firmly fixed and any cost
overrun will be borne by the seller
– Fixed Price Incentive Fee (FPIF): The price is fixed, however
with an incentive fee for meeting a target specified in the contract
– Fixed Price with Economic Price Adjustment (FPEPA): Fixed
type contract with provisions for where fluctuations are there in
exchange rate or interest rate

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Contract Types (3/3)
 Cost Reimbursable Contract:
 Cost Plus Fixed Fee (CPFF): The seller gets all the cost as
reimbursement plus a percentage of the initial estimated cost
 Cost Plus Incentive Fee (CPIF): The seller gets all the cost
plus an incentive fee based on performance
 Cost Plus Awards Fee (CPAF): The seller is reimbursed all
the costs, but the majority of the fee is only earned based a
subjective criteria incorporated into the contract
 Time and Material (T&M) Contract:
– A hybrid type of contractual agreement that contain specific
aspects of both cost-reimbursable and fixed-price contracts
– Often used for staff augmentation, acquisition of experts or
consultants

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Procurement Management Plan
Components of may include:
– Types of contracts to be used
– Standardized procurement documents
– Constraints and assumptions that could affect
procurements
– Risk management issues including performance
bonds/insurance
– Managing multiple suppliers
– Handling make or buy decisions
– Identifying prequalified sellers list
– Legal jurisdictions and currency of payment
– Procurement metrics to be used to manage contracts

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Source Selection Criteria
Source selection criteria are a prime driver in conducting
procurement. Some criteria are:
– Capability and capacity
– Product cost and life cycle cost
– Delivery dates
– Technical expertise and approach
– Specific relevant experience
– Adequacy of proposed approach and work plan vs. SOW.
– Management experience and approach
– Key staff qualifications, availability, and competence
– Financial stability of the firm
– Business type and size; past performance of the Seller
– Intellectual property rights & proprietary property rights

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Comparison of Procurement Documents

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Conduct Procurements
The process of obtaining seller responses, selecting a seller and
awarding a contract.
Inputs Tools & Techniques Outputs
1. Project Mgmt. plan 1. Expert judgment 1. Selected sellers
• Scope, Requirements, 2. Advertising 2. Agreements
• Communication, Risk, 3. Bidder conferences 3. Change requests
Procurement, and 4. Data analysis 4. PM. Plan updates
Configuration • Proposal evaluation • Requirements, Quality,
management plans 5.Interpersonal and Communications, Risk, and
• Cost baseline team skills procurement Mgmt. plans
2. Project documents • Negotiation • Scope, schedule and cost
• Lessons learned reg. baselines
• Project schedule 5. Project docs. updates
• Requirements docs. • Lessons learned register
• Risk register • Requirements docs.
• Stakeholder register • Reqs. traceability matrix
3. Procurement docs. • Resource calendars
4. Seller proposals • Risk register
5. Enterprise Env. factors • Stakeholder register
6. Org. process assets 6. Org. process assets updates

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Data Flow: Conduct Procurements

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Agreement
 Major components include:
– Procurement SOW or major deliverables
– Schedule baseline, milestones
– Performance reporting
– Pricing and payment terms
– General terms and conditions incl. subcontract approvals
– Inspection and acceptance criteria
– Warranty, product support, limitation of liability
– Penalties, incentives, insurance and performance bonds
– Change management process
– Place of delivery

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Control Procurements
The process of managing procurement relationships, monitoring
contract performance and making changes and corrections as
needed Inputs Tools & Techniques Outputs
1. Project Mgmt. plan 1. Expert judgment 1. Closed procurements
• Requirements, Procurement, 2. Claims 2. Work performance info.
Risk , Change Mgmt. plans administration 3. Procurement docs. Updates
• Schedule baseline 3. Data analysis 4. Change requests
2. Project documents • Performance 5. PM. Plan updates
• Assumption log reviews • Risk Mgmt. plan
• Lessons learned register • Earned value • Procurement Mgmt. plan
• Milestone list analysis • Schedule baseline
• Quality reports • Trend analysis • Cost baseline
• Requirements docs. 4. Inspection 6. Project documents updates
• Reqs. traceability matrix 5. Audits • Lessons learned register
• Risk and stakeholder register • Resource requirements
3. Agreements • Requirements Traceability
4. Procurements docs. matrix
5. Approved change requests • Risk register
6. Work performance data • Stakeholder register
7. Enterprise Env. factors 7. Organizational process
8. Org. process assets assets updates

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 Data Flow:
Control
Procurements

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Claims Administration
 Contested changes and potential constructive changes are
those changes where the buyer and seller cannot reach an
agreement on compensation for the change or cannot agree
that a change has occurred.
 These contested changes are called claims.
 If not resolved these become disputes.
 And finally become appeals.

 If unresolved an alternative dispute resolution (ADR) process

may be used.

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QUIZ QUESTIONS
(Module – 12)

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 Module – 12 (Project Procurement Management)

Q – 1 – What type of contract is of minimal risk to the seller?

A) Time and Material

B) Lump sum

C) Cost Plus Incentive Fee

D) Cost Plus Aware Fee

Q – 2 – You as the project manager of a project found out that to automate certain test cases

you need a 3rd party software. You are performing analysis with your team to decide on

whether to build this software or buy it from outside. Which tool of which knowledge area are you using in such a

case?

A) Checking on the Procurement Documents in Plan Procurement

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B) Build or buy analysis in Plan Procurement KnowledgePride. All rights reserved.
Management
Q – 4 – You are about to perform an audit for your procurement. Some deliverables are not scheduled to be

delivered for two more weeks. Which knowledge process area is the most suitable in such a case?

A) Control Procurements

B) Conduct Procurements

C) Manage Procurements

D) Plan Procurement Management

Q – 5 – You are planning to build a portion of your system with a 3rd party vendor. You have worked with one

vendor for a long time and the vendor is a tried and trusted one. However, as per the policy of your

organization you have decided to make the bid public. The trusted vendor has asked you to consider them

with priority as they have executed many projects in the past. What should you do?

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A) Inform that all vendors will be given equal KnowledgePride.
weight All happen
and selection will rights reserved.
based on meeting the expected criteria
Q – 6 – You have completed your project and have delivered the project to the buyer. The buyer has accepted the

deliverables but is not happy with the end results. What is correct about the contract?

A) Contract is incomplete

B) Lack of terms and conditions in the contract

C) Contract is complete and can be closed

D) Contract is to be renewed

Q – 7 – You are a project manager and you are comparing proposals received from sellers. Comparing proposals

received from sellers is done in _______ ?

A) Plan Procurement Management

B) Conduct Procurements

C) Control Procurements

D) None of the above

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Project Stakeholder Management

Module - 13

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Agenda
 Concepts and Trends in Project Stakeholder
Management
 Project Stakeholder Management Process Areas
– Identify Stakeholders
– Plan Stakeholder Engagement
– Manage Stakeholder Engagement
– Monitor Stakeholder Engagement

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Stakeholder & Stakeholder Mgmt.
 Stakeholder:
– Anyone who can impact or can be impacted by the project in a
positive or negative way
– Stakeholders can be people, groups or organizations
 Stakeholder Management:
– It includes the processes required to identify stakeholders and
analyze their expectations and to develop appropriate
management strategies to effectively engage stakeholders in
project decisions and execution
– Also includes communication with stakeholders to understand
needs and expectations, managing conflicting interests and
fostering appropriate stakeholder engagement

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 Identify Stakeholders
The process of identifying stakeholders; analyzing & documenting
relevant information regarding their interests, involvement,
interdependencies, influence and potential impact on project success.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Stakeholder register
2. Business documents 2. Data gathering 2. Change requests
• Business case • Questionnaires and 3. Project management plan
• Benefits management plan surveys updates
3. Project management plan • Brainstorming • Requirements Mgmt. plan
• Communications 3. Data analysis • Communications
management plan • Stakeholder analysis management plan
• Stakeholder Engagement • Document analysis • Risk management plan
plan 4. Data representation • Stakeholder engagement
4. Project documents • Stakeholder plan
• Change log mapping/ 4. Project docs. updates
• Issue log representation • Assumption log
• Requirements docs. 5. Meetings • Issue log
5. Agreements • Risk register
6. Enterprise Env. factors
7. Organizational process assets

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 Data Flow:
Identify
Stakeholders

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Tools & Techniques
 Data Gathering
– Questionnaires & surveys: Also includes one-on-one reviews,
focus group sessions, or other mass information collection.
– Brainstorming: Also includes brain writing technique.

 Data Analysis
– Interest: may be affected by the project
– Rights: Legal such as occupational health and safety, moral
such as protection of historical sites
– Ownership: Legal title to an asset or property
– Knowledge: Specialist knowledge which can benefit project
– Contribution: Providing funds or other resources

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Tools & Techniques
 Data Representation
– Power/Interest Grid: Level of authority vs. Level of concern
– Power/Influence Grid: Level of authority vs. ability to influence
– Influence/Impact Grid: Ability to influence vs. ability to cause
changes to the project
– Stakeholder Cube: A 3D model built from the above factors.
– Salience Model: Describes classes of stakeholders based on
their power (ability to impose will), urgency (need for immediate
attention) and legitimacy (appropriate involvement)
– Direction of Influence: Classifies stakeholders based on their
influence on the project. Upward, downward, outward, sideward
– Prioritization: Used for projects with very large number of
stakeholders or frequently changing stakeholders

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 Stakeholder Analysis
Stakeholder Register
The main output of this process, contains all details related to the identified stakeholders including, but not limited to:

Identification information: Name, organizational position, location, role in the project, contact information

Assessment Information: Major requirements, main expectations, potential influence in the project, phase in the life cycle with the

most interest

Stakeholder Classification: internal/external, supporter/neutral/resistor, etc.

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 Plan Stakeholder Engagement
The process of developing approaches to involve project stakeholders
based on their needs, expectations, interests, and potential impact on
the project.
Inputs Tools & Techniques Outputs
1. Project charter 1. Expert judgment 1. Stakeholder
2. Project management plan 2. Data gathering engagement plan
• Resource Mgmt. plan • Benchmarking
• Communications Mgmt. plan 3. Data analysis
• Risk management plan • Assumption and constraint
3. Project documents analysis
• Assumption log • Root cause analysis
• Change log 4. Decision making
• Issue log • Prioritization/ranking
• Project schedule 5. Data representation
• Risk register • Mind mapping
• Stakeholder register • Stakeholder engagement
4. Agreements assessment matrix
5. Enterprise Env. factors 6. Meetings
6. Organizational process assets

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 Data Flow: Plan
Stakeholder
Engagement

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Stakeholder Engagement Plan
It provides the following:
– Desired & current engagement levels of key stakeholders
– Impact of changes on stakeholders
– Conflicts and common goals among stakeholders
– Communication needs of stakeholders
– Type of information to be distributed to stakeholder
– Schedule and frequency of information distribution
– Stakeholder engagement plan update process

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Data Representation
 Stakeholder engagement assessment matrix
Supports comparison between current and desired engagement levels
of stakeholders
– Unaware: Unaware of project and potential impacts
– Resistant: Aware of project and potential impacts but resistant to change
– Neutral: Aware of project but neither support nor oppose change
– Supportive: Aware of project and potential impacts and supportive to
change
– Leading: Aware of the project and potential impact and actively engaged
in ensuring project success

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 Manage Stakeholder Engagement
The process of communicating and working with stakeholders to meet
their needs and expectations, address issues as they occur and foster
appropriate stakeholder engagement.
Inputs Tools & Techniques Outputs
1. Project management plan 1. Expert judgment 1. Change requests
• Communications 2. Communication skills 2. Project management plan
management plan • Feedback updates
• Risk management plan 3. Interpersonal and • Communications
• Stakeholder engagement team skills management plan
plan • Conflict • Stakeholder engagement
• Change management plan management plan
2. Project documents • Cultural awareness 3. Project docs. updates
• Change log • Negotiation • Change log
• Issue log • Observation/convers • Issue log
• Lessons learned register ation • Lessons learned register
• Stakeholder register • Political awareness • Stakeholder register
3. Enterprise Env. factors 4. Ground rules
4. Organizational process assets 5. Meetings

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Data Flow: Manage Stakeholder Engagement

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Monitor Stakeholder Engagement
The process of monitoring project stakeholder relationships and
adjusting strategies for engaging stakeholders
Inputs Tools & Techniques Outputs
1. Project Mgmt. plan 1. Data analysis 1. Work performance info.
• Resource • Alternatives analysis Change requests
management plan • Root cause analysis 2. PM. plan updates
• Communications • Stakeholder analysis • Resource Mgmt. plan
management plan 2. Decision making • Communications
• Stakeholder • Multicriteria decision analysis management plan
engagement plan • Voting • Stakeholder
2. Project documents 3. Data representation engagement plan
• Issue log • Stk. Engage. assessment matrix 3. Project docs. updates
• Lessons learned 4. Communication skills • Issue log
register • Feedback • Lessons learned
• Project • Presentations register
communications 5. Interpersonal & team skills • Risk register
• Risk register • Active listening • Stakeholder register
• Stakeholder register • Cultural awareness
3. Enterprise Env. • Leadership, Networking
Factors • Political awareness
4. Org. process assets 6. Meetings

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Data Flow: Monitor Stakeholder Engagement

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QUIZ QUESTIONS
(Module – 13)

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 Module – 13 (Project Stakeholder Management)

Q – 1 – Interpersonal and team skill of political awareness is used in which of the following processes? (select all that

apply)

A) Identify Stakeholders

B) Plan Stakeholder Engagement

C) Manage Stakeholder Engagement

D) Monitor Stakeholder Engagement

Q – 2 – As a Project Manager, you have been given the project charter. What is the next

process area you will get into immediately?

A) Develop project management plan

B) Identify stakeholders 369

© 2019 KnowledgePride. All rights reserved.
Q – 4 – Which one of the following is not an engagement level of the stakeholder, performed

with Analytical techniques tool?

A) Resistant

B) Leading

C) Directing

D) Supportive

Q – 5 – Interpersonal and team skills include all of the following except:

A) Negotiation

B) Progress reporting

C) Cultural awareness

D) Conflict management
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Q – 7 – In which process strategies may be adjusted to engage stakeholders?

A) Identify Stakeholders

B) Manage Stakeholder Engagement

C) Plan Stakeholder Engagement

D) Monitor Stakeholder Engagement

Q – 8 – What is a stakeholder cube?

A) A stakeholder analysis method using an analogy of cube with 6 sides is taken where each side is a type of stakeholder

B) It is used to determine stakeholder engagement level

C) A stakeholder analysis method where three different characteristics are used to classify stakeholders
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D) It is another name for Salience©model,
2019 aKnowledgePride. All rights
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analysis
 Professional and
Social Responsibility

Module - 14

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Agenda
 Code of Ethics
 Professional Responsibility
 Contribute to Project Management Knowledge Base
 Balance stakeholders interests
 Ensure Individual Integrity

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PMI – Code of Ethics (1/2)
 The PMI Code of Ethics and Professional Conduct is the
authoritative guide on how all PMI members should
behave.
 The Code provides eight guidelines to help you establish
a strong ethical foundation for your professional activities:
1. Recognize that managing ethics is a process – it is the
process of reflection and dialog that produces
deliverables such as codes, policies and procedures.
2. The goal of an ethics management initiative is a preferred
behavior in the project environment.
3. The best way to manage ethical dilemmas like negative
project risks is to avoid their occurrence in the first place

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PMI – Code of Ethics (2/2)
4. Make ethics decisions in teams and make decisions
public, as appropriate.
5. Integrate ethics management with other project practices.
Define preferred ethical values in the project management
plan.
6. Use cross-functional teams to develop your ethics
management plan. Benefit from varied input.
7. Value forgiveness to help project personnel recognize and
address their mistakes and then support them to continue
to operate ethically.
8. Give yourself credit for trying - Attempting to operate
ethically and making a few mistakes is better than not
trying at all. All projects are comprised of people and
people are not perfect.

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Professional Responsibility
 Review and understand PMI’s code of conduct
 Many PR questions relate to the code of conduct
 PR topics are integrated into questions on cost, time and other topics.
 Certified PM(s) have a responsibility to uphold and support the
integrity and ethics of the profession.
 This involves ensuring that our actions are always in line with legal
requirements and ethical standards.
 Responsibility to the Profession:
– Be truthful at all times and in all situations
– Report Code violations (with factual basis)
– Disclose conflicts of interest
– Comply with laws
– Respect other's intellectual property rights
– Support the Code

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Contribute to PM Knowledge Base
 A Project Manager:
– Shares lessons learned with other PMs
– Writes articles about project management
– Supports the education of other PMs and stakeholders in
project management
– Coaches or mentors other PMs
– Mentors junior team members on PM related topics.
– Performs research to discover best practices for the use of
project management and shares them with others
– Performs research on projects done for the purpose of
calculating performance metrics to be used in the
organization

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Ensure Individual Integrity
 While ensuring individual integrity a Project Manager:
– Adheres to the legal requirements and ethical standards
– Tells the truth in the reports, conversations and other
communications
– Follows copyright and other laws
– Does not divulge company data to unauthorized parties
– Does not put personal gain over the needs of the project
– Prevents conflicts of interest and deals with them
– Does not give or take bribes or inappropriate gifts
– Treats everyone with respect.
– Follows PMI’s Code of Professional Responsibility.
– Does the right thing and follows the right process.
– Reports violations of laws, business policies, ethics and
other rules
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Enhance Professional Competence
 A project manager should:
– Work to understand their personal strengths and
weaknesses
– Continue to learn to apply the science of project
management
– Plan their own professional development
– Constantly look for new information and practices that will
help the company and its projects
– Continue to learn about the industry or industries where
they work

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QUIZ QUESTIONS
(Module – 14)

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 Module – 14 (PMI Code of Ethics and Professional Conduct)

Q – 1 – You have reviewed the schedule of the project and realized it is going to have slipped

when finally delivered. There is no way to cut-down on the schedule. You talked with you

supervisor and he also agrees that it cannot be reduced. However, he directed you not to inform the customer. What

should you do?

A) Cancel the weekly status meeting with the customer

B) Request your supervisor to give his statement in writing

C) Explain to your boss saying that it is unethical not to inform on it

D) Inform the customer in confidence

Q – 2 – You are on a foreign shore scouting for bidding. In that country it is expected to have

certain amount of cutback in the bidding for competitive pricing. One of the bidders

informed that he can cut down on©the pricing

2019 by 10%, which
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Q – 3 – You discover that a new electric line in your construction project may be hazardous to the locality. What is the most

appropriate course of action?

A) Take guidance from government officials

B) Take guidance from the media

C) Take guidance from your attorney

D) Take guidance from your sponsor

Q – 4 – You have been assigned to a project which you believe will not succeed. You have made those feelings

known to your organization, but they wish that you do the work anyway. What should you do?

A) Inform PMI

B) Resign from the project

C) Manage the project

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Q – 6 – You are working on a project where you need one of the components from the Government. You realize in the

typical case it will take at least 2 months to get. However, the officials inform that there is a concept of rush fee and if you

pay, it can be done in 2 weeks. What should you do?

A) Pay the rush fee

B) Do not pay the rush fee and let the project be delayed

C) Ask the official if they can take less rush fee

D) Contact your senior management and ask for guidance

Q – 7 – A conflict of interest should be:

A) Resolved quickly

B) Monitored carefully

C) Disclosed openly

D) Ignored
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An Introduction to Agile

Module - 15

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Agenda
 Definable vs. High-uncertainty Work
 Agile Manifesto and Mindset
 Lean Thinking
 Lean and the Kanban Method
 Risk and Life cycle selection

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Definable vs. High-uncertainty Work
Definable Work Projects: Such projects have clearly defined
procedures that have proved successful in previous similar
projects.

High-Uncertainty Projects: These projects have high rates of

change, complexity, and risk.
 In a business context, agility is the ability of an organization to
rapidly adapt to market & environmental changes in productive and
cost effective ways.
 Agile is about change, speed, and dealing with unexpected and
unpredictable, it may involve technology and innovation, it may
range from operations all the way up to strategy.

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Agile-based Learning
 Disruptive technology are rapidly changing the playing
fields by decreasing the barriers to entry.

 Mature organizations find themselves competing with

smaller organizations and startups that are able to rapidly
produce products that fit customer needs.

 This speed change will continue to drive large

organizations to adopt an agile mindset in order to stay
competitive and keep their existing market share.

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The Agile Manifesto and Mindset
In 2001, the thought leaders in the software industry formalized
the agile movement with the publication of the Manifesto for Agile
Software Development.

We are uncovering better ways of developing software by doing it

and helping others do it. Through this work we have come to
value:
– Individuals and Interactions over processes and tools
– Working software over comprehensive documentation
– Customers collaboration over contract negotiation
– Responding to change over following a plan

That is, while there is value in the items on the right, we value the
items on the left more.
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Agile Principles

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Lean Thinking
 Kanban Method and Agile are subset of lean. Lean
concept such as:
– Focus on value.
– Small batch sizes.
– Elimination of waste

 Kanban method is
less prescriptive &
less disruptive than
other agile methods.

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Risk and Life Cycle Selection
 Uncertainties results in higher complexity and more changes in
projects so proper life cycle should be selected.

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Life Cycle Selection

Module - 16

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Agenda
 Characteristics of Project Life Cycles
 Mixing Agile Approaches
 Factors that Influence Tailoring

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Life Cycle Characteristics
 Predictive life cycle: A more traditional approach, with the
bulk of planning occurring upfront, then executing in a single
pass: a sequential process.

 Iterative life cycle: An approach that allows feedback for

unfinished work to improve and modify that work.

 Incremental life cycle: An approach that provides finished

deliverables that the customer may be able to use
immediately.

 Agile life cycle: An approach that is both iterative and

incremental to refine work items and deliver frequently.

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Life cycle Characteristics

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Life cycle selection

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Predictive - Incremental - Iterative

tal
m en
r e
Inc

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Agile Life Cycles

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Hybrid Life cycle
 It is not necessary to use a single approach for an entire
project. Projects often combine elements of different life
cycles in order to achieve certain goals.

 A combination of predictive, iterative, incremental, and/or agile

approaches is a Hybrid Approach.

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Hybrid Life cycle

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Mixing Agile Approaches
 It is quite common to mix various Agile approaches.
 The focus is on delivering value

 Most common mixing includes:

– Scrum framework: Uses product backlog, product owner, scrum
master and a cross functional development team.

– Kanban method: Uses kanban board to help visualize flow and

reduce work in progress.

– eXtreme Programming: Uses story cards, continuous

integration, refactoring, automated testing , etc.

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Factors that Influence Tailoring

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Creating Agile

Module - 17

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Agenda
 Agile Mindset
 Characteristics of Servant Leadership
 Servant Leader Responsibilities
 Project managers use servant leadership
 Agile Roles
 Overcoming Silos

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Agile Mindset
 Managing a project using an agile approach requires that the
project team adopt an agile mindset. The answers to the
following questions will help to develop an implementation
strategy:
– How can the project team act in an agile manner?
– What can the team deliver quickly and obtain early feedback to
benefit the next delivery cycle?
– How can the team act in a transparent Manner?
– What work can be avoided in order to focus on high-priority
items?
– How can a servant-leadership approach benefit the achievement
of the team’s goals?

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Characteristics of Servant Leadership
 The following characteristics of servant leadership enable
project leaders to become more agile and facilitate the team’s
success”
– Promoting self-awareness
– Listening
– Serving those on the team
– Helping people grow
– Coaching vs. controlling
– Promoting safety, respect, and trust and
– Promoting the energy and intelligence of others

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Servant Leader Responsibilities
Servant Leaders Facilitate

 Servant leader facilitate, the emphasis shifts from” managing

coordination” to “facilitating collaboration”.
 Facilitator encourages collaboration through interactive
meetings, informal dialog, and knowledge sharing.

Servant Leaders Remove Organizational Impediments

 Servant leader should look at processes that are lengthy,

causing bottlenecks and impeding a team’s or organization’s
ability.

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Servant Leader Responsibilities
Servant Leaders Pave the Way for Others’ Contribution
 Servant leader work to fulfill the needs of the teams, projects and
organizations.
 Servant leader may work with the management to enable the team to
focus on one project at a time.
 Servant leaders focuses on paving the way for the team to do its
best work. The servant leader influences projects and encourages
the organization to think differently.

Consider these Servant Leader Responsibilities

 Educate the stakeholders about why and how to be agile.
 Support the team through mentoring, encouragement and support.
 Help the team with project management activities.
 Celebrate team success and bridge building activities with external
groups.

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Project Managers use Servant Leadership
 When working on an agile project, project managers shift from being
the center to serving the team. In agile environment, project mangers
are servant leaders, coach people who wants help, encourage
distribution of responsibility, and foster greater collaboration.

Team composition of Agile Teams

 Build project around motivated individuals. Give them the
environment and support they need and trust them to get the job
done.
– Dedicated people.
– Cross functional team members.
– Colocation.
– Mixed team of generalists and specialists.
– Stable work environment.

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Agile Roles
 In Agile three common roles are used:
– Cross functional team members.
– Product owner.
– Team facilitator

Team Workspaces
 Space for team to work as team and collaborate.
 Geographically distributed teams communications can be
managed through:
– Fishbowl Windows: Long-lived videoconferencing link
between various locations. Link open during work hours.
– Remote Pairing: Use virtual conferencing tools to share
screens, voice, and video links.

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Overcoming Silos
 A silo can occur when a team/department shares common
tasks but derives their power from their group. They are less
likely to share ideas with other groups.

 With Silos, collaboration with departments will be limited.

 To overcome Silos, PM should work with other department

managers to enhance cross functional teamwork and create
synergy among team members.

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Delivering in an Agile Environment

Module - 18

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Agenda
 Charter the Project and the Team
 Common Agile practices
 Troubleshooting Agile project challenges

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Charter the Project and the Team
Team creates a project vision or purpose:
– Why are we doing the project?
– Who benefits and how?
– What does done mean for the project?
– How are we going to work together?

 Team creates set of working agreements / social contract:

– Team values, core hours, sustainable pace
– Definition of readiness and done, timebox, WIP limits.
– Ground rules
– Group norms

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Common Agile Practices
 The goal of the team is to create an agile environment in which
team members can work to the best of their ability as a team.

Retrospectives

 Retrospectives help team to learn from their previous work on

the product, then the team will reflect on how to become more
effective, and tune and adjust accordingly.

 Retrospectives is a time for the team to learn from previous

work and make small improvement

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Common Agile Practices

 Backlog preparation: The list of all work, in a story form only

to understand the first release and the then sufficient items for
next iteration.

 Backlog refinement: the purpose is to refine enough stories

to be more easy to understand and know the relation between
each others.

 Daily Standups: to micro commit to each others, and ensure

the work flow smoothly thought the team.

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Common Agile Practices
 Demonstrations reviews: The team periodically demonstrate
the working product.

 Planning for iteration-based Agile: The team estimate what

they can complete. The team has limited capacity and they will
only plan for work that meets that capacity.

 Execute practices that help team deliver value:

– Continuous integration
– Test at all levels
– Acceptance Test-Driven Development
– Test Driven Development & Behavior Driven Development
– Spikes (timeboxed research or experiments)

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Troubleshooting Agile Project Challenges
 Unclear purpose and/or working agreement for the team
 Unclear team context / Siloed teams
 Unclear requirements / unrealistic stakeholder demands
 Poor user experience
 Inaccurate estimation
 Unclear work assignments/progress
 Team struggles with obstacles
 Work delays or overruns due to unrefined backlog
 Defects and/or Incomplete work
 Technical debt (degraded code quality)
 Product is too complex (Chaotic)
 Too much upfront work resulting in lot of rework
 False starts / wasted effort

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Agile Project Measurements
 Using Agile means looking at new metrics that matter to team
and management, these metrics focus on customer value.

 The team consider collecting qualitative measures for

example, the business satisfaction with delivered features, the
morale of the team, etc.

 Agile teams measure results by using:

– Burnup chart
– Burndown chart
– Earned value technique
– Kanban board
– Feature chart

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BurnUp Chart

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BurnDown Chart

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Feature Chart

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Earned Value Technique

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Flow Diagram of Completed Features

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Organizational Consideration for
Project Agility

Module - 19

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Agenda
 Organizational Change Management
 Procurement and contracts
 Agile and the project management office (PMO)
 Organizational structure

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Organizational Change Management
 Every project exists in an organizational context that has a cultures,
structures and policies.
 Leaders may not be able to change organization dynamics but
should explore options for change to increase project success.
Assess organization culture

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Procurements & Contracts
The Agile Manifesto values “Customer collaboration over Contract
negotiations”. A collaboration approach is one that pursues a shared-
risk-reward relationships, where all sides win. Some new contract
techniques:
 Multi-tiered structure
 Emphasize value delivered
 Fixed price increments
 Not-to-exceed time and materials
 Graduated time and materials
 Early cancellation options
 Dynamic scope options
 Team augmentation
 Favor full-service suppliers

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Agile & The PMO
 The PMO exist to advises management about the business value for
a given project or set of projects. But because Agile creates cultural
change, the PMO might need to change also. For example
managers make decisions about which projects to fund and when
and the team decides what they need for training and advice.
 Agile PMO is value-driven
 Agile PMO is invitation oriented
 Agile PMO is multidisciplinary: it may provide such services as,
– Developing and implementing standards
– Developing personnel through training and mentoring
– Multiproject management
– Facilitating organizational learning
– Managing stakeholders
– Recruiting, selecting, and evaluating team leaders
– Executing specialized tasks for projects

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Organizational Structure
Key characteristics of the organizational structure:
 Geography: if dispersed it will create different challenges including
cultural differences, language barriers, lower visibility, etc.
 Functionalized structures: Functional organization may find
general resistance in collaboration across its organization. Highly
projectized to matrix organizations will likely find less resistance.
 Allocation of people to projects: persons from different department
to be fully allocated to the highest priority projects.
 Size of project deliverables: Small sizes of deliverables with
frequent handoffs is more suitable.
 Procurement heavy organizations: Vendor based project
implementations have challenges with knowledge retention.

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 Wish you all the best

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