PROJECT COMMUNICATION MANAGEMENT

 Project communications management centers on determining who

needs what information and when—and then producing a plan to
provide that needed information.
 Project Communication Management is a group of processes required
to ensure timely and appropriate development, generation, collection,
dissemination, storage, and ultimately, disposition of project
information.
 Project communications management includes 5 processes:
 Identify Stakeholders
 Plan Communications
 Distribute Information
 Manage Stakeholder Expectations
 Report Performance

Weekend PMP Prep Class, 2010 1

PROJECT COMMUNICATION MANAGEMENT

 COMMUNICATION MODEL
 Sender – Encoder – Medium – Decoder – Receiver
 Noise
 Acknowledgement

 Types of Communication Process

 Para lingual: Pitch and tone of voice
 Feedback
 Active listening
 Effective listening
 Nonverbal: about 55% of all communication

Weekend PMP Prep Class, 2010 2

PROJECT COMMUNICATION MANAGEMENT
Communication Method
Form of Communication Examples
Written Formal  Project Charter, Scope Statement, Project Plan, WBS, project status
 Complex issues
 Contract related communication
Written Informal  Email, Notes, Memos, Letters
 Regular communication with team members
Formal Verbal  Presentations, speeches,
 Negotiations, conflict resolution
Informal Verbal  Conversation with team members
 Project Meetings
 Break-room or war-room conversations
Non-verbal communication  Facial expressions, hand movements, tone of voice while speaking etc.

 Communication Channels
 Number of Communication Channels: N(N-1) / 2

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PROJECT COMMUNICATION MANAGEMENT

 Communication Methods
 Formal Written: for solving complex problems, PM Plans, Project
Charter
 Formal Verbal: Presentations, speeches
 Informal Verbal: Meetings, Conversations
 Informal Written: Memos, E-mails, Notes

 Communication Channels
 Number of Communication Channels: N(N-1)2

Weekend PMP Prep Class, 2010 4

PROJECT COMMUNICATION MANAGEMENT
Communication Model
Basic Communications Model
 Sender determines what information
to share and with whom and
encodes the message.
 Sender transmits the message as a
signal to the receiver.
 The receiver receives the message.
 The receiver decodes the message
to determine its meaning and then
responds accordingly.
 Communication is successful if the
decoded message is the same as
the sender intended.

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PROJECT COMMUNICATION MANAGEMENT

Identify Stakeholders
 Identify stakeholders is the process of identifying all people or
organizations impacted by the project, and documenting relevant
information regarding their interests, involvement, and impact on project
success.
 It is critical for project success to identify the stakeholders early in the
project, and to analyze their levels of interest, expectations, importance
and influence.

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PROJECT COMMUNICATION MANAGEMENT

Identify Stakeholders
 INPUTS
 Project Charter
 Procurement documents
 Enterprise Environmental factors
 Organisational Process assets

 Tools and Techniques

 Stakeholder analysis
 Expert judgment

 OUTPUT
 Stakeholder register
 Stakeholder management strategy

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PROJECT COMMUNICATION MANAGEMENT
Plan Communication
 Determining the information and communications needs of the
stakeholders: It includes identifying the following:
 Who needs what information
 When they will need it
 How it will be given to them (What method)
 How frequently?

Weekend PMP Prep Class, 2010 8

PROJECT COMMUNICATION MANAGEMENT
Plan Communication
 Input
 Enterprise Environmental Factor
 Organisational Process Assets
 Stakeholder register
 Stakeholder management strategy

 Tools and Technique

 Communication Requirement Analysis
 Communication Technology
 Communication models
 Communication methods

Weekend PMP Prep Class, 2010 9

PROJECT COMMUNICATION MANAGEMENT
Plan Communication
 Output
 Communication management plan: Contains
 Stakeholder communication requirements
 Person or groups who will receive the information
 Methods or technologies used to convey the information, such
as memoranda, e-mail, and/or press releases
 Frequency of the communication, such as weekly
 Distribution structure
 Description of information to be distributed

 Project document updates

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PROJECT COMMUNICATION MANAGEMENT
Distribute Information
 Information distribution is the process of ensuring that the proper
stakeholders get the appropriate information when and how they need
it.
 Essentially, it’s the implementation of the communications management
plan.

 Input
 Project Management Plan
 Performance reports
 Organisational process assets

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PROJECT COMMUNICATION MANAGEMENT
Distribute Information
 Tools and Technique
 Communication Skills
 Information distribution tools: Filling systems, databases, Project
Management Software, hardcopy/ electronic
 Communication Methods: Project meetings, e-mails, fax, video and
web conferencing
 Lesson Learned Process

 Output
 Organizational Process Assets updates: Project records,
reports, lesson learned documentation, stakeholder notifications.

Weekend PMP Prep Class, 2010 12

PROJECT COMMUNICATION MANAGEMENT

Manage Stakeholder Expectations

 Managing communications to satisfy stakeholders needs
 Resolution of issues
 Responsibility of Project Manager

 Input
 Stakeholder register
 Stakeholder management strategy
 Project Management Plan
 Issue Log: Used to document and monitor resolution of issues
 Change log
 Organizational Process Assets

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PROJECT COMMUNICATION MANAGEMENT

Manage Stakeholder Expectations

 Tools and Techniques
 Communication Methods: face to face meetings, e-mail, phone
 Interpersonal skills
 Management skills

 Output
 Resolved Issues
 Change requests
 Organizational Process Assets Updates: Lesson Learned
 Project Management Plan Updates
 Project document updates

Weekend PMP Prep Class, 2010 14

PROJECT COMMUNICATION MANAGEMENT

Report Performance
 Collecting and disseminating performance information to stakeholders
 Status reporting, progress measurement and forecasting.
 Provides information on scope, schedule, cost, and quality, and
possibly on risk and procurement

 Input
 Project Management Plan
 Work Performance Information
 Work Performance measurements
 Budget Forecasts
 Organisational process assets

Weekend PMP Prep Class, 2010 15

PROJECT COMMUNICATION MANAGEMENT

Report Performance
 Tools and Techniques
 Variance analysis
 Forecasting methods
 Communication methods
 Reporting Systems

 Output
 Performance Reports
 Forecasts: based on work performance information
 Change Requests
 Organizational Process Assets updates

Weekend PMP Prep Class, 2010 16

PROJECT RISK MANAGEMENT

 It 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
 Risk is an event with some degree of uncertainty. It may or may not
have occurred. The objective of assessing risk is to offset any negative
impact it may have and pursue any positive impact.
 There are following 6 processes which are part of Project Risk
Management
 Plan Risk Management
 Identify Risks
 Perform Qualitative Risk Analysis
 Perform Quantitative Risk Analysis
 Plan Risk Responses
 Monitor and Control Risks

Weekend PMP Prep Class, 2010 17

 PROJECT RISK MANAGEMENT

Planning Process group Control Process group

Risk mgmt Risk Monitoring
planning Risk Qualitative Risk Quantitative Risk Response and Control
Identification analysis Risk analysis Planning

Risk Mgmt Risk Register

plan Risk register Risk Register Risk Register Risk Register (updated with
(updated with (updated with (updated with outcomes);
priority list) probabilistic planned Change requests
analysis) responses) corrective and
preventive
Project

actions)
Mgmt

Approved

requests
plan

change

Project
management plan
(updates) Recommended corrective and prev
Integrated Requested changes
Change control
Risk register (updates)

Weekend PMP Prep Class, 2010 18

PROJECT RISK MANAGEMENT
- Plan Risk Management
 Process of deciding how to approach and plan the risk management activities
for a project
 Proactive planning of how to identify, rank and address risk issues
 Input
 Project scope statement
 Cost management Plan
 Schedule Management Plan
 Communication Management Plan
 Organisational Process assets
 Enterprise Environmental Factors
 Organizational attitude towards risk and risk tolerance threshold
 Tools and Techniques
 Planning Meetings and Analysis

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PROJECT RISK MANAGEMENT
- Plan Risk Management
 Output
 Risk Management Plan which contains the following
 Methodology
 Roles and Responsibilities
 Budgeting
 Timing
 Risk Categories: Using RBS
 Definitions of Risk Probabilities and Impact
 Probability and impact matrix
 Reporting Formats
 Tracking

Weekend PMP Prep Class, 2010 20

PROJECT RISK MANAGEMENT
- Identify Risks
 Determines risk which might affect project and document their characteristics
 Project team members and stakeholders are involved in identification of risks
 Risk identification occurs throughout the project
 Risks missed at this stage will be harder to deal with later

 Input
 Enterprise Environmental Factor
 Organisational Process Assets
 Scope baseline
 Project documents
 Stakeholder register
 Cost Management Plan
 Quality Management Plan
 Risk Management Plan
 Project Management Plan

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PROJECT RISK MANAGEMENT
- Identify Risks
 Tools and Techniques
 Documentation Review
 Checklist Analysis: Checklists may be developed based on historical
information
 Assumption Analysis: Validity of assumptions
 Diagramming Techniques
 Ishikawa, Process flow chart, influence diagram
 Information Gathering Technique:
 Brainstorming: RBS may be used as framework
 Delphi Technique
 Root Cause Identification
 SWOT Analysis
 Output
 Risk Register
 List of identified risks
 List of Potential responses: may be used as input to Risk Response
Planning
 Root causes of risks
 Updated risk categories
Weekend PMP Prep Class, 2010 22
PROJECT RISK MANAGEMENT
- Perform Qualitative Risk Analysis

 Assess the priority of identified risks based on their probability of

occurring and impact of risks on project objectives
 Subjective Analysis of identified risks
 Rapid and cost-effective way of establishing priorities for risk response
planning
 Lays foundation for quantitative risk analysis

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PROJECT RISK MANAGEMENT
- Perform Qualitative Risk Analysis

 Input
 Organisational Process Assets
 Project Scope Statement
 Risk Management Plan
 Risk Register: List of identified Risk
 Tools and Techniques
 Probability and Impact Assessment: Usually achieved through
interviews and meetings (expert Judgment is required)
 Probability and Impact Matrix
 Ratings provided based on assessed probability and impact,
descriptive terms and numeric value may be used
 Risk Data Quality Assessment
 Risk Categorization: Using RBS to determine Project areas
exposed to effects of uncertainty
 Risk Urgency Assessment

Weekend PMP Prep Class, 2010 24

PROJECT RISK MANAGEMENT
- Perform Qualitative Risk Analysis

 Output
 Risk Register (Updates)
 Risk probability and impact ratings
 Risk grouped by categories
 Risk required response in the near term
 List of risks for additional analysis: risks for quantitative analysis
as well as response planning
 Watchlist of low priority risk
 Trends in quantitative risk analysis results

Weekend PMP Prep Class, 2010 25

PROJECT RISK MANAGEMENT
- Perform Quantitative Risk Analysis

 Aims to analyze numerically the probability of each risk and its

consequence of project objectives; there are several goals of quantitative
risk analysis:
 To ascertain the likelihood of reaching project success
 To ascertain the likelihood of reaching a particular project objective
and quantifies probability of meeting project objectives, e.g., “We
only have an 80% chance of completing the project within the 6
months required by the customer,” or “We only have a 75% chance
of completing the project within the N8MM budget.”
 To determine the risk exposure for the project (overall project risk)
 To determine the likely amount of the contingency reserve needed
for the project
 To determine the risks with the largest impact on the project
 To determine realistic time, cost, and scope targets
 To determine which risk events warrant a response

Weekend PMP Prep Class, 2010 26

PROJECT RISK MANAGEMENT
- Perform Quantitative Risk Analysis

 Input
 Organisational Process Assets
 Schedule Management Plan
 Risk Management Plan
 Cost Management Plan
 Risk Register
 Tools and Techniques
 Data Gathering Techniques:
 Interviewing
 Probability Distribution
– Beta and Triangular distribution
 Expert Judgment
 Quantitative Risk Analysis and Modeling
 Sensitivity Analysis
 Expected Monetary Value
 Analysis
 Decision Tree Analysis
 Modeling and Stimulation
Weekend PMP Prep Class, 2010 27
PROJECT RISK MANAGEMENT
- Perform Quantitative Risk Analysis

 Output
 Risk Register (Updates)
 Probabilistic analysis of the project
 Probability of achieving cost and time objectives
 Prioritized list of quantified risks
 Trends in quantitative risk analysis results

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PROJECT RISK MANAGEMENT
- Plan Risk Responses

 Determining actions to enhance opportunities and reduce threats

 Identification and assignment of Risk owners
 Planned risk response must be appropriate to the significance of the risk
 Input
 Risk Management Plan
 Risk Register
 Tools and Techniques
 Strategies for Negative Risks or Threats
 Avoid Transfer and Mitigate
 Strategies for opportunities
 Exploit, Share and Enhance
 Strategies for Threats and Opportunities
 Acceptance and contingent Response Strategy

Weekend PMP Prep Class, 2010 29

PROJECT RISK MANAGEMENT
- Plan Risk Responses

 Output
 Project Management Plan Updates
 Project document updates
 Risk Related Contract decisions
 Risk Register (Updates)
 Residual Risks
 Contingency Plan
 Fallback Plans
 Workaround
 Secondary Risks
 Risk triggers
 Contingency Reserves of cost and time

Weekend PMP Prep Class, 2010 30

PROJECT RISK MANAGEMENT
- Monitor and Control Risks

 Risk monitoring and control is the process of monitoring identified risks

for signs that they may be occurring, controlling identified risks with the
agreed responses, and looking for new risks that may creep into the
project
 Risk monitoring and control also is concerned with the documentation of
the success or failure of risk response plans, and keeping records of
metrics that signal risks are occurring, fading, or disappearing from the
project
 There are several goals to risk monitoring and control:
 To confirm risk responses are implemented as planned
 To determine if risk responses are effective or if new responses are needed
 To determine the validity of the project assumptions
 To determine if risk exposure has changed, evolved, or declined due to trends
in the project progression
 To monitor risk triggers
 To confirm policies and procedures happen as planned
 To monitor the project for new risks

Weekend PMP Prep Class, 2010 31

PROJECT RISK MANAGEMENT
- Monitor and Control Risks

 Input
 Project Management Plan
 Risk Register
 Approved Change Requests
 Work Performance Information
 Performance Reports
 Tools and Techniques
 Risk Reassessment: during project status meetings
 Risk Audits
 Variance and Trend Analysis: Based on project performance
 Technical Performance Measurements
 Reserve Analysis
 Status Meetings

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PROJECT RISK MANAGEMENT
- Monitor and Control Risks

 Output
 Change Requests
 Organisational Process Assets (Updates)
 Project management Plan (Updates)
 Risk Register (Updates)
 Outcome of risk reassessments, audit and reviews
 Outcome of risks and responses
 Project document updates

Weekend PMP Prep Class, 2010 33

PROJECT PROCUREMENT MANAGEMENT

 Procurement Management is groups of processes required to

purchase or acquire the products, services, or results needed from
outside the project team to perform the work.
There are following 4 processes which are part of Project Procurement
Management.
 Plan Procurements
 Conduct Procurements
 Administer Procurements
 Close Procurements

Weekend PMP Prep Class, 2010 34

PROJECT PROCUREMENT MANAGEMENT

 Evaluating the Market Conditions

 Part of procurement management is to determine what sources are
available to provide the needed products or services for the project.
 The following are three specific terms to know for the PMP exam that
you may encounter.
 Sole source-Only one qualified seller exists in the marketplace.
 Single source-The performing organization prefers to contract with a
specific seller.
 Oligopoly- There are very few sellers and the actions of one seller will
have a direct effect on the other seller’s prices and the overall market
condition.

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PROJECT PROCUREMENT MANAGEMENT
What is a CONTRACT?
 A contract is a mutually binding document obligating the seller to
provide certain goods or services to the buyer for monetary or any other
form of consideration
Components of a contract include:
 Offer
 Acceptance
 Capacity
 Consideration
 Legal Purpose

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PROJECT PROCUREMENT MANAGEMENT
What is a CONTRACT?
 Contract - A legally binding document
 For a legal contract need to have :
 Offer + Acceptance = Agreement (enforceable at law )
 Consideration (something of value)
 Legal capacity (competent parties)
 Legal purpose ( not for sale of illegal goods )
 Contracts require formality
 If it is not in the contract , it can only be done if a change is issued.
 If it is in the contract, it must be done or a change order signed by both parties
issued.
 All product & project requirement should be specifically stated in the contract
 All terms & conditions in the contract must be met.
 Any changes to the contract must be agreed and approved by both the parties
 A formal change to the contract need to be issued for it to be effective.
 Changes must be in writing.

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PROJECT PROCUREMENT MANAGEMENT
Plan Procurements
 The Plan Procurements process:
 Identifies which project needs can best be met by purchasing or
acquiring products, services, or results outside the project organization.
 Which project needs can be accomplished by the project team during
project execution
 Identify Potential sellers

Weekend PMP Prep Class, 2010 38

PROJECT PROCUREMENT MANAGEMENT
Plan Procurements
INPUT
 Enterprise Environmental Factors
 Organisational Process Assets
 Scope baselines
 Requirements documentations

 Teaming agreements
 Risk-related contract decisions
 Activity resource requirements
 Project schedule
 Activity cost estimates
 Cost performance baseline
 Risk register

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PROJECT PROCUREMENT MANAGEMENT
Plan Procurements
 TOOLS AND TECHNIQUES
 Make or Buy Analysis:
 Purchasing vs. Leasing
 Expert Judgment
 Contract Types:
 Fixed Price or Lump Sum:
 Fixed Price Incentive Fee (FPIF),
 Fixed Price Economic Price Adjustment (FPEPA)
 Purchase Order
 Cost Reimbursable (CR):
 Cost Plus Percentage of Cost (CPPC)
 Cost Plus Fixed Fee (CPFF)
 Cost Plus Incentive Fee (CPIF)
 Cost Plus Award Fee (CPAF)
 Time and Material or Unit Price Contract

Weekend PMP Prep Class, 2010 40

PROJECT PROCUREMENT MANAGEMENT
Plan Procurements
 Output
 Procurement Management Plan: Describes how procurement
processes will be
 managed until contract closure, constraints and assumptions, types of
contracts
 Procurement Statement of Work: Describes in details the work to be
done, developed from Project Scope Statement, WBS and WBS
Dictionary, May be Performance, Functional or Design related.
 Make or Buy Decision
 Procurement Documents: Request for Quotation (RFQ), Request for
Proposal (RFP), Invitation for Bid (IFB)
 Change Requests

Weekend PMP Prep Class, 2010 41

PROJECT PROCUREMENT MANAGEMENT
Plan Procurements
Procurement Contract Type Contract
Documents Statement of
Work
Request for Proposal Cost Reimbursable Performance or
(RFP) Function

Invitation for Bid (IFB) Fixed Price (FP) Design

Request for Quotation Time and Material Any

(RFQ) (T&M)

Weekend PMP Prep Class, 2010 42

PROJECT PROCUREMENT MANAGEMENT
Conduct Procurements
 It is the process of obtaining seller responses, selecting a seller, and
awarding a contract.

 Input
 Project Management Plan
 Procurement documents
 Source selection criteria
 Qualified seller list
 Seller proposals
 Project documents
 Make or Buy Decision
 Teaming agreement
 Organizational Process Assets

Weekend PMP Prep Class, 2010 43

PROJECT PROCUREMENT MANAGEMENT
Conduct Procurements
 Tools and Techniques
 Bidder Conferences:
 Opportunity for vendors to seek further clarification on requirement
 Proposal Evaluation Technique: Understanding of need, Technical
Approach, Financial Capacity, Lifecycle Cost.
 Expert Judgment
 Independent Estimates: Used as a check against proposed pricing
 Advertising
 Internet Search
 Procurement Negotiations: to obtain a fair and reasonable price,
develop a good Relationship with seller

Weekend PMP Prep Class, 2010 44

PROJECT PROCUREMENT MANAGEMENT
Conduct Procurements
 Output
 Selected Sellers
 Procurement Contract Award
 Resource Calendars
 Change requests
 Project Management Plan Updates
 Project Document Updates

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PROJECT PROCUREMENT MANAGEMENT
Administer Procurements
 Ensure that seller’s performance meets contractual requirements and that
buyer performs based on contract
 Includes application of project management processes to contractual
relationships
 Monitoring of payments to sellers
 Documents how well a seller has performed on the contract
 Includes management of early termination of contract based on default or
convenience based on termination clause of the contract

 Input
 Contract
 Project Management Plan
 Procurement documents
 Performance Reports
 Approved Change Requests: Modifications to terms and conditions
 Work Performance Information

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PROJECT PROCUREMENT MANAGEMENT
Administer Procurements
 Tools and Technique
 Contract Change Control System: includes paperwork, tracking
system and dispute resolution procedure required to modify the
contract
 Procurement Performance Review: Structured review of seller’s
performance to deliver Project scope and quality
 Inspection and Audits
 Performance Reporting
 Payment System
 Claims Administration
 Record Management System: Used to maintain an index of Contract
documents

Weekend PMP Prep Class, 2010 47

PROJECT PROCUREMENT MANAGEMENT
Administer Procurements
 Output
 Procurement Documentation
 Change Requests
 Organizational Process Assets: Correspondence, payment schedule
and requests, Seller Performance Evaluation Documentation
 Project Management Plan (Updates)

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PROJECT PROCUREMENT MANAGEMENT
Close Procurement
 Verification that all work deliverables are complete and acceptable
 Updating records to reflect final result and archiving documents for
future use
 Addresses each contract applicable to project or project phase.

 Input
 Project management Plan
 Procurement Documentation
 Contract Closure Procedure: As stipulated in the contract
documentation

Weekend PMP Prep Class, 2010 49

PROJECT PROCUREMENT MANAGEMENT
Close Procurement
 Tools and Technique
 Procurement Audit: a structured review of the entire Procurement
process in order to evaluate its success or failure
 Negotiated Settlement
 Record Management System

 Output
 Closed Procurements: Contract Administrator acting on behalf of the
buyer provides formal written notice to seller that the contract is
complete
 Organisational Process Assets (Updates)
 Contract File
 Deliverable Acceptance
 Lesson Learned Documentation

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PROJECT PROCUREMENT MANAGEMENT
Administrative Closure vs. Contract Closure

Administrative Closure Contract Closure

May be done at the end of each Done only once at the end /
project phase & at the end of project termination of the contract.
as a whole

Uses the term ‘ Lessons learned’ Uses the term ‘Procurement Audit’

Less records & is less formal than Require more record keeping & is
contract closure more formal to protect legal interest
of both parties involved.

Weekend PMP Prep Class, 2010 51

QUESTIONS?

Weekend PMP Prep Class, 2010 52

PMP PREPARATORY COURSE

Thank you for

participating!

Weekend PMP Prep Class, 2010 53