Chapter 1:

Introduction to Project Management

Information Technology Project Management, Seventh

Edition

Note: See the text itself for full citations.

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Introduction
 Many organizations today have a new or renewed
interest in project management.
 Computer hardware, software, networks, and the use
of interdisciplinary and global work teams have
radically changed the work environment
 More than 16 million people regard project

management as their profession

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 Advantages of Using IT Project Management
 Better control of financial, physical, and human
resources
 Improved customer relations
 Shorter development times
 Lower costs
 Higher quality and increased reliability
 Higher profit margins
 Improved productivity
 Better internal coordination
 Higher worker morale

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 What is an organization?

 Organizations perform/do work project or operations.

 It works generally involves either operation or projects,

although the two may overlap.

 Operations and projects share many characteristics;

for example, they are:

 Performed by people.
 Constrained by limited resources.
 Planned, executed and controlled.

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 What is a Project?
 A project is “a temporary endeavor undertaken to
create a unique product, service, or result”.
(PMBOK® Guide, Fifth Edition, 2012)
 A project is an assignment/tasks that has to be
undertaken and completed within a set time, budget,
resources and performance specifications designed to
meet the needs of stakeholder and beneficiaries.

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 Project portfolio management
It refers to the selection and support of projects or
program investments.
Portfolio Management is the process by which a set of
campus problem/opportunities are identified, evaluated,
ranked, matched to available funding, and approved for
implementation

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 Con…
 Project charter :-A document issued by the project
initiator or sponsor authorize the existence of a project
and provides the project manager with the authority to
apply organizational resources to project activities and
it includes
◦ Project scope statement
◦ Project objectives
◦ Project constraints
◦ Projects assumptions

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 Con…
 Project plan – A formal, approved document that
manages and controls project execution.
 A well-defined project plan should be:-

◦ Easy to understand and read

◦ Communicated to all key participants
◦ Appropriate to the project’s size, complexity, and criticality
◦ Prepared by the team, rather than by the individual project
manager

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 Stakeholder in an organization
 Project manager:- An individual who is an expert in
project planning and management, defines and
develops the project plan, and tracks the plan to ensure
the project is completed on time and on budget.
 Work with project sponsors, project teams, and other

people involved in projects to meet project goals.

 A project manager must focus on managing three

primary areas to ensure success

 People
 Communications
 Change

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 Project and VS operations
Project is Operation is
 Role ends with project  Specialist skills

 Temporary team  Work repeatable

 Routine
 Many different skills
 Stable organization
 Work not done before
 Annual planning cycle
 Time, cost and scope
 Budgets set and fixed
constraints events
 Difficult to estimate time

and budget

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Project Attributes
 A project means:
◦ has a unique purpose.
◦ is temporary.
◦ is developed using progressive elaboration.
◦ requires resources, often from various areas should have a
primary customer or sponsor
 The project sponsor usually provides the direction and
funding for the project
◦ involves uncertainty

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1.1.2 Problems with IS projects
The Triple Constraint of Project Management

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Con…
 Every project is constrained in different ways by its:
◦ Scope goals: What work will be done?
◦ Time goals: How long should it take to complete?
◦ Cost (budget) goals: What should it cost?
 It is the project manager’s duty to balance these
three often-competing goals.
 Successful project management -means meeting

all three goals (scope, time, and cost) – and

satisfying the project’s sponsor!

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 1.1.3 What is Project Management?
 Project management is “the application of knowledge,
skills, tools and techniques to project activities to meet
project requirements”(PMBOK® Guide,4th Edition, 2012)
 Project managers strive to meet the triple constraint

(project scope, time, and cost goals) and also facilitate the
entire process to meet the needs and expectations of project
stakeholders.

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 Con’d…
 Itis important to note many of the processes within
the project management are iterative.
 Project management is accomplished through the use

of the following 5 main processes of Project

management :
1. Initiation
2. Planning
3. Execution
4. Controlling and
5. Closure

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 1.2 1 INTIATION
 Initiation is the process of formally authorize a new
project or that an existing project should continue into
its next phase.
 In some organizations, a project is not formally initiated

until after completion of a needs assessment, a

feasibility study, a preliminary plan, or some other
equivalent form of analysis that was itself separately
initiated.

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Management, Seventh Edition Copyright 2014 16
1.2.2 Planning
Planning processes: devising and maintaining a
workable scheme to meet business needs.
 Planning phase establishes a high-level plan of the

intended project and determines project goals.

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1.2.3. Project Execution
Executing processes: It coordinating people and
other resources to carry out project plans and
produce the products or deliverables of the
project or phase.
The executing process involves taking the
actions necessary to ensure that the work
described in the planning activities will be
completed, the main outcome of which is the
delivery of the actual work of the project.

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Project and Product Life Cycle(PLC)
 The project life cycle serve to define the beginning
and the end of a project.
 The project life-cycle definition will determine
whether the feasibility study is treated as the first
project phase or as a separate, standalone
project.
 The project life-cycle definition will also determine
which transitional actions at the beginning and the
end of the project are included and which are not.

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 Cont…
Document experiences on the project to simplify the
design and execution of campus projects, this project
life cycle is comprised of five project management
phases.

Figure : project management phases

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 1. Define

 It is the first phase of the project management life

cycle.
 This phase allows the project sponsor and project

manager to quickly understand the dimensions of the

project and identify alternate approaches
 This phase is the one most when a project is in the

early phases an initial high level Project Proposal

should be created.
 The process is exploratory so It is not advisable to

spend too much effort on scoping the project.

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 2. plan
 This 2nd phase of the project management life cycle
focuses on scoping and planning the project.
 Details about the project are determined, including an

estimated timeline and budget.

 These details are captured in the complete Project

Charter.
 The Project Charter is used to provide greater clarity

on the scope of the project and how the objectives will

be achieved.
 The Project Charter also documents the agreement

between the project manager and the project sponsor

for a successful project completion.

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 3. Launch

 This 3rd phase, a specific project governance structure

is established (Executive Sponsor, Project Sponsor,
Steering Committee etc.).
 The project organization is finalized. Project team

members are cast in their roles and briefed on the

project by the assigned project manager.
 The project team members refine the project work

plan as necessary and are assigned responsibility for

their specific tasks and deliverables.

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 4. Manage

 This Phase of a project includes all of the tasks that the

project manager and team must do in order to keep the
work of the project moving along as planned.
 This phase runs throughout the life of the project to

keep stakeholders informed and to engage their active

involvement and sponsorship for the project or
program.
 Reporting project status is a critical success factor at

this phase for managing expectations of project

sponsors, the project steering committee,& other key
stakeholders.

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 5. Close
 Program and project management is a temporary
endeavor.
 All programs and projects end.
 The ending needs to be a deliberate and explicit

process to ensure the project closes with the

appropriate hand-offs and knowledge transfer.
 The Close phase is conducted once the project team

has met all deliverable commitments.

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 1.3.1. All parties of a project

Project stakeholders are individuals and organization that are

actively involved in the project, or whose interests may be
positively or negatively affected as a result of project execution or
project completion; they may also use influence over the project
and its results.
Key stakeholders on every project include:
1. Project manager
2. Customer
3. Performing organization
4. Project team members
5. Sponsor

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 1.3.2 The role of project Manager

Project manager the person responsible for working with the
project sponsor, the project team, and the other people involved
in a project to meet project goals.
 Project managers must be comfortable leading and
handling change.
 Project managers need to understand the organization in

which they work and how that organization develops

products and provides services.

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 Skills of project manager
 Project managers need both “hard” and “soft” skills.
◦ Hard skills- include product knowledge and knowing how to
use various project management tools and techniques.
◦ Soft skills- include being able to work with various types of
people.

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 Skills of project manager(Cont’d…)

 Communication skills: Listens, persuades /motivate

 Organizational skills: Plans, sets goals, analyzes.
 Team-building skills: Shows empathy, motivates,

promotes.
 Leadership skills: Sets examples, provides vision (big

picture), delegates, positive, energetic.

 Coping skills: Flexible, creative, patient, persistent.
 Technology skills: Experience, project knowledge.

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1.4. Project Management Frame work
Key elements of this framework include
The project stakeholders,
project management knowledge areas,
project management tools and techniques, and
the contribution of successful projects to the
enterprise.

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project management knowledge areas

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 Chapter 2:
Project planning:

Integration Management
 2.1. Integration management
2.1.1. Good Project Integration Management(PIM)
PIM: project managers must coordinate all of the other
knowledge areas throughout a project’s life cycle.
Project Integration Management:
 It describes the processes required to ensure that the

different elements of the project are properly coordinated.

 It is the processes and activities needed to integrate the

various elements of project management, which are
identified, defined, combined, unified, and coordinated
within the Project Management Process Groups.

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 Six main PIM Processes
 1. Developing the project charter
involves working with stakeholders to create the
document that formally authorize(approve) a project.
 2. Developing the project management plan

involves coordinating all planning efforts to create a

consistent, coherent document.
 3. Directing and managing project work

involves carrying out the project management plan by

performing the activities included in it.

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 cont’d...
 4. Monitoring and controlling project work
involves overseeing activities to meet the performance
objectives of the project
 5. Performing integrated change control

involves identifying, evaluating, and managing changes

throughout the project life cycle.
 6. Closing the project or phase

involves finalizing all activities to formally close the

project or phase.

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Project Integration Management Summary

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2.1.2 Project Plan Development
 It also use the outputs of the strategic planning, to create
a consistent, coherent document that can be used to
guide both project execution and project control.
 This process is almost always iterated several times.

 The project scope of work is an iterative process that is

generally done by the project team with the use of a
Work Breakdown Structure (WBS), allowing the team
to capture and then decompose all of the work of the
project.

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 The project plan is used to:

 Guide project execution.

 Document project planning assumption.
 Document project planning decisions regarding

alternatives chosen.
 Facilitate communication among stakeholders.
 Define key management reviews as to content, extent,

and timing.
 Provide a baseline for progress measurement and

project control.

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2.2. Scope Management
 2.2.1. What is Scope Management?
 Project Scope Management includes the processes

required to ensure that the project includes all the work

required, and only the work required, to complete the
project successfully.
 It is primarily concerned with defining and controlling

what is or is not included in the project.

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 The major project scope management processes:
1. Initiation:-
 It is authorizing the project or phase.

2. Scope Planning:-
 It is developing a written scope statement as the

basis for future project decisions.

3. Scope Definition:-
 It is subdividing the major project deliverables into

smaller, more manageable components.

4. Scope Verification:
 It is formalizing acceptance of the project scope.

5.Scope Change Control:-

 It is controlling changes to project scope.

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 2.2.5 Work Breakdown Structure(WBS)
 A WBS is a deliverable-oriented grouping of project components
that organizes and defines the total scope of the project;
 As with the scope statement, the WBS is often used to develop or
confirm a common understanding of project scope.
 The WBS is a deliverable-oriented hierarchy of decomposed
project components that organises and defines the total scope of the
project.
 The WBS is a representation of the detailed project scope
statement that specifies the work to be accomplished by the project.
 The elements comprising the WBS assist the stakeholders in
viewing the end product of the project.
 The work at the lowest-level WBS component is estimated,
scheduled, and tracked.

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 Chapter three

3. Project Scheduling

3.1 Time Management

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 3.1.1. Importance of project schedules
 Project Time Management- includes the processes required to ensure
timely completion of the project.
Key Terms
 Early Start (ES)- The earliest that an activity can start.

 Early Finish (EF)- The earliest that an activity can possibly finish.

 Late start (LS)- The latest that an activity can start and not impact

project completion.
 Late Finish (LF)- The latest that an activity can be completed

without impacting the project completion.

 Float- The number of days that an event or lag can be delayed or

extended without impacting the completion of the project.


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 Con…

 Forward Pass- A calculation starting with the first activity and ending with the last
activity performed to find the early dates & the duration of a specific project.
 Backward Pass- A scheduling calculation done to determine the activity late dates.
This calculation begins with the last activity and project duration and
culminates(ending) with the first activity.
 Critical Path- Longest continuous chain of activities through the network schedule
that establishes the minimum overall project duration.
 Activity – a chunk of work that is part of the project;
an activity may be broken down into multiple sub activities
 Event – a significant point in time during the project, such as a milestone event;
an event could be the time at which an activity is completed or the time at which
related concurrent activities have all completed
 Dummy Activity – an artificial activity with zero time duration that only shows a
precedence relationship among activities

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The processes of Project time management:
The following 7 main processes are used in developing project time scheduling:
1. Planning schedule management- involves determining the policies,
procedures, and documentation that will be used for planning, executing, and
controlling the project schedule. The main output of this process is a schedule
management plan.
2. Activity Definition: identifying the specific schedule activities that need to be
performed to produce the various project deliverables
3. Activity Sequencing: identifying and documenting dependencies among
schedule activities
4. Activity Resource Estimating: estimating the type and quantities of resources
required to perform each schedule activity
5. Activity Duration Estimating: estimating the number of work periods that
will be needed to complete individual schedule activities
6. Schedule Development: analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule
7. Schedule Control: controlling changes to the project schedule.

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2. Activity definition
 Identifying and documenting the work that is planned
to be performed
 Project work packages are planned (decomposed)

into smaller components called schedule activities to

provide a basis for estimating, scheduling, executing,
and monitoring and controlling the project work

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3. Activity sequencing
 Activity sequencing involves identifying and documenting the
logical relationships among schedule activities
 Sequencing can be performed by using project management
software or by using manual techniques

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 Project Network Diagrams(PND)
 Network diagrams show the precedence
Activity sequencing: Tools & Techniques

relationships among activities

 It’s easier to understand these relationships

graphically
 Network diagrams help to understand the flow of

work in a project
 Network diagrams are a useful tool for project

planning and control, as well as for scheduling

 One (perhaps exaggerated) claim is that the

network represents ¾ of the planning process

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 Network Diagrams

1. Activity-on-Arrow (AOA) networks

◦ also called Arrow Diagramming Method (ADM)
◦ simpler for projects with many dependencies
◦ emphasizes events; milestones can be easily flagged
◦ sometimes requires dummy activities
◦ uses arrows to represent activities and connects them at nodes to
show their dependencies
◦ ADM uses only finish-to-start dependencies and can require the use
of “dummy” relationships called dummy activities, which are
shown as dashed lines, to define all logical relationships correctly

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2. Precedence Diagramming Method (PDM)
◦easier to draw for simple projects
◦emphasizes activities
◦no dummy activities.
◦Known as activity on-node (AON)

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 Cont’d…
 Includes four types of dependencies or precedence relationships:
1. Finish-to-Start: the initiation of the successor activity depends
upon the completion of the predecessor activity
2. Finish-to-Finish: the completion of the successor activity
depends upon the completion of the predecessor activity
3. Start-to-Start: the initiation of the successor activity depends
upon the initiation of the predecessor activity
4. Start-to-Finish: the completion of the successor activity
depends upon the initiation of the predecessor activity

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Cont…

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 c=3

a=4 g=1

j=6
d=2

Start Finish
e=6
h=4

b=3 k=1

f=4 i=5

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 Example others
forward path EF= ES+DURATION

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Backward path LS= LF-DURATION

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Con…

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Chapter 4: Project Cost Management
 4.1 What is Cost ? Project Cost Management?
 Cost is a resource sacrificed or foregone to achieve a

specific objective or something given up in exchange.

 Costs are usually measured in financial units like

dollars, birr or others currency of the countries.

 Project cost management includes the processes

required to ensure that the project is completed within

an approved budget

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Management, Seventh Edition Copyright 2014 60
 The 4 main Processes of Project Cost Management
1. Planning cost management :
determining the policies, procedures, and documentation that
will be used for planning, executing, and controlling project cost.
2. Estimating costs:
developing an approximation or estimate of the costs of the
resources needed to complete a project
3. Determining the budget:
allocating the overall cost estimate to individual work items to
establish a baseline for measuring performance
4. Controlling costs:
controlling changes to the project budget

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Management, Seventh Edition Copyright 2014 61
 More Basic Principles of Cost Management
1. Learning curve theory- states that when many items
are produced repetitively, the unit cost of those items
decreases in a regular pattern as more units are
produced.
2. Reserves - are dollars included in a cost estimate to
mitigate cost risk by allowing for future situations that
are difficult to predict.
3. Contingency reserves- allow for future situations that
may be partially planned for (sometimes called known
unknowns) and are included in the project cost
baseline.
4. Management reserves- allow for future situations
that are unpredictable (sometimes called unknown
unknowns).

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 Types of Costs and Benefits

1. Tangible costs: are those costs or benefits that an

organization can easily measure in dollars
2. Intangible costs: are costs or benefits that are
difficult to measure in monetary terms
3. Direct costs: are costs that can be directly related to
producing the products and services of the project
4. Indirect costs: are costs that are not directly related
to the products or services of the project, but are
indirectly related to performing the project
5. Sunk cost: is money that has been spent in the
past; when deciding what projects to invest in or
continue, you should not include sunk costs

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 1. Planning Cost Management
 The project team uses expert judgment, analytical
techniques, and meetings to develop the cost
management plan.
 A cost management plan includes:

◦ Level of accuracy and units of measure

◦ Organizational procedure links
◦ Control thresholds
◦ Rules of performance measurements
◦ Process descriptions
◦ Reporting formats

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 2. Estimating Costs
 Project managers must take cost estimates seriously if
they want to complete projects within budget
constraints.
 It’s important to know the types of cost estimates, how

to prepare cost estimates, and typical problems

associated with IT cost estimates.

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Management, Seventh Edition Copyright 2014 65
 Typical Problems with IT Cost Estimates
 Estimates are done too quickly
 People lack estimating experience
 Human beings are biased toward underestimation
 Management desires accuracy

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Management, Seventh Edition Copyright 2014 66
 3. Determining the Budget
1. Cost budgeting involves allocating the project cost
estimate to individual work items over time.
2. The WBS is a required input to the cost budgeting
process since it defines the work items.
3. Important goal is to produce a cost baseline
◦ a time-phased budget that project managers use to measure
and monitor cost performance.

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 4. Controlling Costs
 Project cost controlling includes
1. Monitoring cost performance
2. Ensuring that only appropriate project changes are included
in a revised cost baseline
3. Informing project stakeholders of authorized changes to the
project that will affect costs
 Many organizations around the globe have problems
with cost control.

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 Earned Value Management (EVM) -tuto
 EVM is a project performance measurement technique
that integrates scope, time, and cost data.
 Given a baseline (original plan plus approved changes),

you can determine how well the project is meeting its

goals.
 You must enter actual information periodically to use

EVM.
 More and more organizations around the world are

using EVM to help control project costs.

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 Earned Value Management Terms
 The planned value (PV)- formerly called the budgeted cost
of work scheduled (BCWS), also called the budget, is that
portion of the approved total cost estimate planned to be
spent on an activity during a given period.
 Actual cost (AC)- formerly called actual cost of work
performed (ACWP), is the total of direct and indirect costs
acquired in accomplishing work on an activity during a given
period.
 The earned value (EV)- formerly called the budgeted cost of
work performed (BCWP), is an estimate of the value of the
physical work actually completed.
EV is based on the original planned costs for the project or
activity and the rate at which the team is completing work on
the project or activity to date.

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 Rate of Performance
 Rate of performance (RP)-is the ratio of actual work
completed to the percentage of work planned to have
been completed at any given time during the life of the
project or activity.
 For example, suppose the server installation was
halfway completed by the end of week 1.
The rate of performance would be 50% because by the
end of week 1, the planned schedule reflects that the
task should be 100 percent complete and only 50
percent of that work has been completed.

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Table 4-5. Earned Value Formulas

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Table 4-4. Earned Value Calculations for One Activity After Week One

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 Rules of Thumb for Earned Value Numbers
1. Negative numbers for cost and schedule variance
(CV,SV) indicate problems in those areas.
2. CPI and SPI less than 100% indicate problems.
3. Problems mean the project is costing more than
planned (over budget) or taking longer than planned
(behind schedule).
4. The CPI can be used to calculate the estimate at
completion (EAC)—an estimate of what it will cost to
complete the project based on performance to date.
The budget at completion (BAC) is the original total
budget for the project.

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Management, Seventh Edition Copyright 2014 74
 Chapter 5:
Project Quality Management

Note: See the text itself for full citations.

 What is Project Quality?
 The International Organization for Standardization
(ISO) defines quality as “the degree to which a set of
inherent characteristics fulfils requirements”.
 Other experts define quality based on:
◦ Conformance to requirements: The project’s processes and
products meet written specifications.
◦ Fitness for use: A product can be used as it was intended.
What is Project Quality Management?
 Project quality management ensures that the project will satisfy the
needs for which it was undertaken.

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 Cont’d…
 The 3 Main Processes of Project Quality Management:
1. Planning quality management:
Identifying which quality standards are relevant to the project and
how to satisfy them; a metric is a standard of measurement.
2. Performing quality assurance:
Periodically evaluating overall project performance to ensure the
project will satisfy the relevant quality standards.
3. Performing quality control:
Monitoring specific project results to ensure that they comply with the
relevant quality standards

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 1.Planning Quality
 Implies the ability to anticipate(do in advance) situations and prepare actions to
bring about the desired outcome.
 Important to prevent defects by:

◦ Selecting proper materials

◦ Training and indoctrinating people in quality

◦ Planning a process that ensures the appropriate outcome

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 Scope Aspects of IT Projects
1. Functionality- is the degree to which a system performs its
intended function
2. Features- are the system’s special characteristics that appeal/request
to users
3. Performance- addresses how well a product or service performs the
customer’s intended use.
4. System outputs- are the screens and reports the system generates
5. Reliability- is the ability of a product or service to perform as
expected under normal conditions
6. Maintainability- addresses the ease of performing maintenance on
a product

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Management, Seventh Edition Copyright 2014
 Who’s Responsible for the Quality of Projects?

 Project managers are ultimately responsible for quality management

on their projects.
 Several organizations and references can help project managers and
their teams understand quality.

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 2.Performing Quality Assurance
 Quality assurance: it includes all the activities related to
satisfying the relevant quality standards for a project.
 Another goal of quality assurance is continuous quality
improvement
 Benchmarking: it generates ideas for quality improvements by
comparing specific project practices or product characteristics to
those of other projects or products within or outside the performing
organization.
 A quality audit- is a structured review of specific quality
management activities that help identify lessons learned that could
improve performance on current or future projects

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 3.Controlling Quality
 The main outputs of quality control are:
◦ Acceptance decisions
◦ Process adjustments
◦ Rework

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 There are Seven Basic Tools of Quality that help in performing quality control:
1.Cause-and-Effect Diagrams
 Cause-and-effect diagrams trace- complaints about
quality problems back to the responsible production
operations.
 They help you find the root cause of a problem.
 Also known as fishbone or Ishikawa diagrams.
 Can also use the 5 whys technique where you repeated ask

the question “Why” (five is a good rule of thumb) to peel

away the layers of symptoms that can lead to the root
cause.

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Figure 5-2. Sample Cause-and-Effect Diagram

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 2. Quality Control Charts
 A control chart is a graphic display of data that illustrates the
results of a process over time.
 The main use of control charts is to prevent defects/faults, rather
than to detect or reject them.
 Quality control charts allow you to determine whether a process is
in control or out of control:
◦ When a process is in control, any variations in the results of the
process are created by random events; processes that are in
control do not need to be adjusted
◦ When a process is out of control, variations in the results of the
process are caused by non-random events; you need to identify
the causes of those non-random events and adjust the process to
correct or eliminate them

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 3. Check sheet
 A check sheet is used to collect and analyze data.
 It is sometimes called a tally sheet or check list, depending on its
format.
 In the example in Figure 5-4, most complaints arrive via text
message, and there are more complaints on Monday and Tuesday
than on other days of the week
 This information might be useful in improving the process for
handling complaints.

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 4. Scatter diagram
 A scatter diagram helps to show, if there is a
relationship between two variables.
 The closer data points are to a diagonal line, the more

closely the two variables are related.

5. Histograms
 A histogram is a bar graph of a distribution of variables.
 Each bar represents an attribute or characteristic of a

problem or situation, and the height of the bar

represents its frequency

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 6.Pareto Charts
 A Pareto chart is a histogram that can help you
identify and prioritize problem areas.
 Pareto analysis is also called the 80-20 rule, meaning
that 80 percent of problems are often due to 20 percent
of the causes.

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 Figure 5-7. Sample Pareto Chart

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 7. Flowcharts
 Flowcharts are graphic displays of the logic and flow of
processes that help you analyze how problems occur
and how processes can be improved.
 They show activities, decision points, and the order of

how information is processed.

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 Statistical Sampling
 Statistical sampling involves choosing part of a population of
interest for inspection.
 The size of a sample depends on how representative you want the
sample to be.
 Sample size formula:
Sample size(ss) = 0.25 X (certainty factor/acceptable error) 2
 Be sure to consult with an expert when using statistical analysis

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 Table 5-1. Commonly Used Certainty Factors

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 Cont’d...
 For example above table 5.1, suppose that the
developers of the system described earlier would
accept a 95 percent certainty that a sample of invoices
would contain no variation unless it was present in the
population of total invoices. They would then calculate
the sample size as:

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 Six Sigma
 Six Sigma is “a comprehensive and flexible system for
achieving, sustaining, and maximizing business
success.
 Six Sigma is uniquely driven by close understanding of

customer needs, disciplined use of facts, data, and

statistical analysis, and diligent attention to managing,
improving, and reinventing business processes.
 The target for perfection is the achievement of no more

than 3.4 defects per million opportunities.

 The principles can apply to a wide variety of processes.

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 Six Sigma projects normally follow a five-phase improvement
process called DMAIC
 DMAIC is a systematic, closed-loop process for
continued improvement that is scientific and fact based
 DMAIC stands for:
◦ Define: Define the problem/opportunity, process, and
customer requirements
◦ Measure: Define measures, then collect, compile, and display
data
◦ Analyze: Scrutinize/examine process details to find
improvement opportunities
◦ Improve: Generate solutions and ideas for improving the
problem
◦ Control: Track and verify the stability of the improvements and
the predictability of the solution

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 Six Sigma and Statistics
 The term sigma means standard deviation.
 Standard deviation measures how much variation exists in a
distribution of data.
 Standard deviation is a key factor in determining the acceptable
number of defective units found in a population.
 Six Sigma projects strive for no more than 3.4 defects per million
opportunities, yet this number is confusing to many statisticians.

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 Types of Tests
1. Unit testing tests each individual component (often a
program) to ensure it is as defect-free as possible.
2. Integration testing occurs between unit and system
testing to test functionally grouped components.
3. System testing tests the entire system as one entity.
4. User acceptance testing is an independent test
performed by end users prior to accepting the
delivered system.

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 Important quality experts includes as the following:
 Deming was famous for his work in rebuilding Japan and his 14
Points for Management.
 Juran wrote the Quality Control Handbook and ten steps to quality
improvement.
 Crosby wrote Quality is Free and suggested that organizations
strive for zero defects.
 Ishikawa developed the concepts of quality circles and fishbone
diagrams.
 Taguchi developed methods for optimizing the process of
engineering experimentation.
 Feigenbaum developed the concept of total quality control.

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 The Cost of Quality
 The cost of quality is the cost of conformance plus the
cost of nonconformance.
◦ Conformance means delivering products that meet
requirements and fitness for use.
◦ Cost of nonconformance means taking responsibility for
failures or not meeting quality expectations.

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 Five Cost Categories Related to Quality
1. Prevention cost: Cost of planning and executing a project
so it is error-free or within an acceptable error range
2. Appraisal cost: Cost of evaluating processes and their
outputs to ensure quality
3. Internal failure cost: Cost incurred/earned to correct an
identified defect before the customer receives the product.
4. External failure cost: Cost that relates to all errors not
detected and corrected before delivery to the customer
5. Measurement and test equipment costs: Capital cost of
equipment used to perform prevention and appraisal
activities

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 Expectations and Cultural Differences in Quality
 Project managers must understand and manage
stakeholder expectations.
 Expectations also vary by:
◦ Organization’s culture

◦ Geographic regions

◦ Language barrier

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Chapter 6
Project Human Resource Management

06/20/2024 10
4
 What is Project Human Resources Management?
 Project Human Resource Management includes the processes required to make the most
effective use of the people involved with the project.
 It includes all the project stakeholders, sponsors, customers, partners, individual
contributors, and others.
 Human resource administrative (HRA)activities:-are seldom a direct responsibility of
the project management team. However, the team must be sufficiently aware of
administrative requirements to ensure compliance.
 The 3 major processes of project human management:
1. Organizational Planning:
 It identifying, documenting, and assigning project roles, responsibilities, and reporting
relationships.
2.Staff Acquisition:
 It getting the human resources needed assigned to and working on the project.

3. Team Development
 It developing individual and group competencies to enhance project performance.

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 6.1. Organizational Planning
 We assign the roles, responsibilities, and reporting relationships may be assigned to
individuals or to groups.
 The individuals and groups may be part of the organization performing the project, or

they may be external to it.

6.2. Project Staff Acquisition
 In most environments, the “best” resources may not be available, and the project

management team must take care to ensure that the resources that are available will meet
project requirements.
6.3. Project Team Development
 It includes both enhancing the ability of stakeholders to contribute as individuals as well

as enhancing the ability of the team to function as a team.

 Individual development (managerial and technical) is the foundation necessary to develop

the team.
 Development as a team is critical to the project’s ability to meet its objectives.

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 Chapter 7:
Project Communications Management
 Importance of Good Communications
 The greatest threat to many projects is a failure to due to in case of
communicate.
 Our culture does not represent IT professionals as being good
communicators.
 Research shows that IT professionals must be able to communicate
effectively to succeed in their positions.
 Strong verbal and non-technical skills are a key factor in career
advancement for IT professionals.

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 The main Processes of Project Communications Management

1. Planning communications management:

It determining the information and communications needs of the
stakeholders.
2. Managing communications:
It creating, distributing, storing, retrieving, and disposing of
project communications based on the communications management
plan.
3. Controlling communications:
 It monitoring and controlling project communications to ensure
that stakeholder communication needs are met.

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 Importance of Face-to-Face Communication
 Researcher says that in a face-to-face interaction:
 58 percent of communication is through body language.
 35 percent of communication is through how the words are said
 7 percent of communication is through the content or words that
are spoken
 A person’s tone of voice and body language say a lot about how he
or she really feels to communicate to others person.

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Personal Preferences Affect Communication Needs
 Introverts people -like more private communications,
while extroverts like to discuss things in public
communication.
 Intuitive people- like to understand the big picture, while

sensing people need step by step details communication

 Thinkers people -want to know the logic behind decisions,

while feeling people want to know how something affects

them personally.
 Judging people - are driven to meet deadlines, while

perceiving people need more help in developing and

following plans.

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 Encouraging More Face-to-Face Interactions
 Short, frequent meetings are often very effective in IT
projects.

 Stand-up meetings force people to focus on what they

really need to communicate.

 Some companies have policies preventing the use of

e-mail between certain hours or even entire days of
the week

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 Figure 7-2. The Impact of the Number of
People on Communications Channels

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Classifications for Communication Methods
 Interactive communication:
Two or more people interact to exchange information via meetings,
phone calls, or video conferencing. Most effective way to ensure
common understanding
 Push communication:

Information is sent or pushed to recipients without their request via

reports, e-mails, faxes, voice mails, and other means. Ensures that the
information is distributed, but does not ensure that it was received or
understood
 Pull communication:

Information is sent to recipients at their request via Web sites, bulletin

boards, e-learning, knowledge repositories like blogs, and other means.

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 Reporting Performance
Performance reporting keeps stakeholders informed about how
resources are being used to achieve project objectives.
◦ Status reports- describe where the project stands at a specific
point in time.
◦ Progress reports- describe what the project team has
accomplished during a certain period of time.
◦ Forecasts reports- predict future project status and progress
based on past information and trends.

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 Suggestions for Improving Project Communications
 Develop better communication skills
 Run effective meetings
 Use e-mail, texting and other technologies effectively
 Use templates for project communications

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 Chapter 8

Project Risk Management

11
7
 What is Project Risk management?
 Risk management is the systematic process of identifying, analyzing, and
responding to project risk.
 It includes maximizing the probability and consequences of positive events and

minimizing the probability and consequences of adverse events to project

objectives.
 The following are 6 major processes Project Risk management :

1.Risk Management Planning

deciding how to method and plan the risk management activities for a project.
2.Risk Identification
determining which risks might affect the project and documenting their
characteristics.
3. Qualitative Risk Analysis
it is performing a qualitative analysis of risks and conditions to prioritize their
effects on project objectives.
4. Quantitative Risk Analysis
for measuring the probability and consequences of risks and estimating their
implications for project objectives.

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 Cont’d....
5. Risk Response Planning —
it is developing procedures and techniques to enhance
opportunities and reduce threats to the project’s
objectives.
6. Risk Monitoring and Control —
for monitoring residual(remaining) risks, identifying
new risks, executing risk reduction plans, and evaluating
their effectiveness throughout the project life cycle.

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How to classified the risks?

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 1. Risk Management Planning
 It is important to plan for the risk management processes that follow to ensure
that the level, type, and visibility of risk management are corresponding with
both the risk and importance of the project to the organization.
2. Risk Identification
 Participants in risk identification generally include the following, as possible:

project team, risk management team, subject matter experts from other parts of
the company, customers, end users, other project managers, stakeholders, and
outside experts.
 Risk identification is an iterative process.

 The first iteration may be performed by a part of the project team, or by the risk

management team.
 The entire project team and primary stakeholders may make a second iteration.

 To achieve an unbiased/balanced analysis, persons who are not involved in the

project may perform the final iteration.

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 3. Qualitative Risk Analyses

 It is the process of assessing the impact and likelihood of identified risks.

 This process prioritizes risks according to their potential effect on project
objectives.
 Qualitative risk analysis is one way to determine the importance of addressing
specific risks and guiding risk responses.
 The time-criticality of risk-related actions may magnify the importance of a risk.
 An evaluation of the quality of the available information also helps modify the
assessment of the risk.
 Qualitative risk analysis requires that the probability and consequences of the
risks be evaluated using established qualitative-analysis methods and tools.
 Trends in the results when qualitative analysis is repeated can indicate the need
for more or less risk-management action.
 Use of these tools helps correct biases that are often present in a project plan.
 Qualitative risk analysis should be revisited during the project’s life cycle to stay
current with changes in the project risks.

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 4.Quantitative Risk Analysis
 It is process aims to analyze numerically the probability of each risk and its consequence

on project objectives, as well as the extent of overall project risk.

This process uses techniques such as Monte Carlo simulation and decision analysis to:

 Determine the probability of achieving a specific project objective.

 Quantify the risk exposure for the project, and determine the size of cost and schedule

contingency reserves that may be needed.

 Identify risks requiring the most attention by quantifying their relative contribution to

project risk.

 Identify realistic and achievable cost, schedule, or scope targets.

 Quantitative risk analysis generally follows qualitative risk analysis. It requires risk

identification. And The qualitative and quantitative risk analysis processes can be used

separately or together.
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 5.Risk Response Planning

 Risk response planning is the process of developing options and determining

actions to enhance opportunities and reduce threats to the project’s objectives.
 It includes the identification and assignment of individuals or parties to take
responsibility for each agreed risk response.
 This process ensures that identified risks are properly addressed.
 The effectiveness of response planning will directly determine whether risk
increases or decreases for the project.
 Risk response planning must be appropriate to the severity/strictness of the
risk, cost effective in meeting the challenge, timely to be successful, realistic
within the project context, agreed upon by all parties involved, and owned by
a responsible person.
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 6.Risk Monitoring And Control

 Risk monitoring and control is an ongoing process for the life of

the project.
 It is the process of keeping track of the identified risks, monitoring
residual/remaining risks and identifying new risks, ensuring the
execution of risk plans, and evaluating their effectiveness in
reducing risk.
 Risk monitoring and control records risk metrics that are
associated with implementing contingency plans.
 Good risk monitoring and control processes provide information
that assists with making effective decisions in advance of the risk’s
occurring.
 Communication to all project stakeholders is needed to assess
periodically the acceptability of the level of risk on the project.

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 Cont’d...

The purpose of risk monitoring is to determine if:

 Risk responses have been implemented as planned.
 Risk response actions are as effective as expected, or if new responses should be
developed.
 Project assumptions are still valid.
 Risk exposure has changed from its prior state, with analysis of trends.
 A risk trigger has occurred.
 Proper policies and procedures are followed.
 Risks have occurred or arisen that were not previously identified.

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 Chapter 9:
Project Procurement Management

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Management, Seventh Edition

Note: See the text itself for full citations.

 Project Procurement Management Processes
 Project procurement management:
It acquiring goods and services for a project from outside the performing
organization.
 4 main processes of Project procurement management include:
1. Planning procurement management:
 Determining what to procure and when and how to do it.
2. Conducting procurements:
 Obtaining seller responses, selecting sellers, and awarding contracts.
3. Controlling procurements:
Managing relationships with sellers, monitoring contract performance, and
making changes as needed.
4. Closing procurements:
Completing and settling each contract or agreement, including resolving of
any open items.

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 Importance of Project Procurement Management
 Procurement means acquiring goods and/or services from
an outside source.
 Other terms include purchasing and outsourcing.
 Experts predict that global spending on computer software

and services will continue to grow.

 People continue to debate whether offshore outsourcing
helps their own country or not.

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 What are Contracts?
 A contract is a mutually binding agreement that obligates
the seller to provide the specified products or services and
obligates the buyer to pay for them.
 Contracts can clarify responsibilities and sharpen focus on
key deliverables of a project.
 Because contracts are legally binding, there is more
accountability for delivering the work as stated in the
contract.
 A recent trend in outsourcing is the increasing size of
contracts.

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 1. Planning Procurement Management
 Identifying which project needs can best be met by
using products or services outside the organization.
 If there is no need to buy any products or services
from outside the organization, then there is no need
to perform any of the other procurement management
processes.

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 Types of Contracts
 Different types of contracts can be used in different situations:
1. Fixed price or lump sum contracts: Involve a fixed total price
for a well-defined product or service
2. Cost reimbursable contracts: Involve payment to the seller for
direct and indirect costs
3. Time and material contracts: Hybrid of both fixed price and
cost reimbursable contracts, often used by consultants
4. Unit price contracts: Require the buyer to pay the seller a
predetermined amount per unit of service
 A single contract can actually include all four of these categories, if
it makes sense for that particular procurement

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 Point of Total Assumption
 The Point of Total Assumption (PTA) is the cost at which
the contractor assumes total responsibility for each additional
dollar of contract cost.
 Contractors do not want to reach the point of total

assumption, because it hurts/damages them financially, so

they have an incentive to prevent cost overruns.
 The PTA is calculated with the following formula:
PTA = (ceiling price – target price)/government share + target cost

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 Cost Reimbursable Contracts
 Cost plus incentive fee (CPIF): The buyer pays the
supplier for allowable performance costs plus a
predetermined fee and an incentive bonus.
 Cost plus fixed fee (CPFF): The buyer pays the supplier
for allowable performance costs plus a fixed fee payment
usually based on a percentage of estimated costs.
 Cost plus percentage of costs (CPPC): The buyer pays the
supplier for allowable performance costs plus a
predetermined percentage based on total costs

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 Contract Clauses
 Contracts should include specific clauses to take into
account issues unique to the project.
 Can require various educational or work experience for

different pay rights

 A termination clause is a contract clause that allows the

buyer or supplier to end the contract.

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 Make-or-Buy Example
 Assume you can lease an item you need for a project
for $800/day.
 To purchase the item, the cost is $12,000 plus a daily
operational cost of $400/day
 How long will it take for the purchase cost to be the
same as the lease cost?

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 Make-or Buy Solution
 Set up an equation so both options, purchase and lease, are equal
 In this example, use the following equation.
Let d be the number of days to use the item:
$12,000 + $400d = $800d
Subtracting $400d from both sides, you get:
$12,000 = $400d
Dividing both sides by $400, you get:
d = 30
 If you need the item for more than 30 days, it is more economical to
purchase it

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 Contract Statement of Work (SOW)
 A statement of work is a description of the work required
for the procurement.
 If a SOW is used as part of a contract to describe only the
work required for that particular contract, it is called a
contract statement of work
 A SOW is a type of scope statement.
 A good SOW gives bidders a better understanding of the
buyer’s expectations.

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 Procurement Documents
 Request for Proposals: Used to solicit/ask proposals
from prospective sellers
 A proposal is a document prepared by a seller when
there are different approaches for meeting buyer needs.
 Requests for Quotes: Used to solicit quotes or bids
/offers from prospective suppliers
◦ A bid, also called a tender or quote (short for
quotation, effort), is a document prepared by sellers
providing pricing for standard items that have been
clearly defined by the buyer

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 2. Conducting procurements
 Deciding whom to ask to do the work
 Sending appropriate documentation to potential sellers
 Obtaining proposals or bids
 Selecting a seller
 Awarding a contract

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 Approaches for Procurement
 Organizations can advertise to procure goods and services in several
ways:
◦ Approaching the preferred vendor
◦ Approaching several potential vendors
◦ Advertising to anyone interested
 A bidders’ conference can help clarify the buyer’s expectations.
Seller Selection
 Organizations often do an initial evaluation of all proposals and bids
and then develop a short list of potential sellers for further evaluation
 Sellers on the short list often prepare a best and final offer(BAFO).
 Final output is a contract signed by the buyer and the selected seller.

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 3.Controlling Procurements
 Ensures that the seller’s performance meets contractual
requirements
 Contracts are legal relationships, so it is important that

legal and contracting professionals be involved in writing

and administering contracts
 It is critical that project managers and team members

watch for constructive change orders, which are oral or

written acts or omissions by someone with actual or
apparent authority that can be construed to have the same
effect as a written change order

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 Suggestions for Change Control in Contracts
 Changes to any part of the project need to be reviewed,

approved, and documented by the same people in the same

way that the original part of the plan was approved
 Evaluation of any change should include an impact

analysis.
How will the change affect the scope, time, cost, and quality
of the goods or services being provided?
 Changes must be documented in writing.
 Project team members should also document all important

meetings and telephone phone calls

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 4.Closing Procurements
 Involves completing and settling contracts and resolving
any open items.
 The project team should:
 Determine if all work was completed correctly and

satisfactorily
 Update records to reflect final results
 Archive information for future use
 The contract itself should include requirements for formal

acceptance and closure

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 Tools to Assist in Contract Closure
 Procurement audits identify lessons learned in the
procurement process
 Negotiated settlements help close contracts more

smoothly
 A records management system provides the ability to

easily organize, find, and archive procurement-related

documents

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 Using Software to Assist in Project Procurement Management

 Word processing software helps write proposals and

contracts, spreadsheets help evaluate suppliers, databases
help track suppliers, and presentation software helps
present procurement-related information
 E-procurement software does many procurement
functions electronically
 Organizations also use other Internet tools to find
information on suppliers or auction goods and services

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