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    Project ManagementBased on PMBOK 

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    2

    Workshop Objectives

    1. Knowledge and best practices of project management in particular

     based on PM PM!OK 

    2. "kill set of using PM "oftware# Microsoft Project in supporting the

     planning$ e%ecution and controlling process of the overall projectmanagement process including# schedule development$ resources

     planning and allocation$ cost estimation and budgeting$ resources

     pooling and leveling$ assessing risks$ performance anal&sis$

    communications and team collaborations

    '. ( comprehensive preparations for the Project ManagementProfessional )PMP* certification e%am from PM as well as the

    nternational Project Management certification e%am conducted b&

    +ekmetriks ,"( on-line real-time via nternet. 

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    '

    Participants ole

    ela% and enjo& &ourself 

    Participate activel&

    /eel free to ask 0uestions

    omplete e%ercises

    Please switch &our hand phones tosilent mode

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    THE PROJECTMANAGEMENT FRAMEWORK 

    ntroduction to ProjectManagement

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    (dvantages of ,sing /ormalProject Management

    !etter control of financial$ ph&sical$ and human resources

    mproved customer relations

    "horter development times 3ower costs

    4igher 0ualit& and increased reliabilit&

    4igher profit margins

    mproved productivit& !etter internal coordination

    4igher worker morale

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    What s a Project6

    ( project is a temporar& endeavor undertakento accomplish a uni0ue purpose

    (ttributes of projects uni0ue purpose temporar&

    re0uire resources$ often from various areas should have a primar& sponsor and7or customer  involve uncertaint&

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    93(+9: 9;:9(

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    "amples of Projects

     ;orthwest (irlines developed a new reservations&stem called es;et

    Man& organi=ations upgrade hardware$ software$and networks via projects

    Organi=ations develop new software or enhancee%isting s&stems to perform man& business

    functions 6

    6

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    +he +riple onstraint

    9ver& project is constrained in different wa&s

     b& its "cope goals# What is the project tr&ing to

    accomplish6

    +ime goals# 4ow long should it take to complete6

    ost goals# What should it cost6 t is the project manager@s dut& to balance

    these three often competing goals

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    1A

    +he +riple onstraint of ProjectManagement

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    What is Project Management6

    Project management is Bthe application of

    knowledge$ skills$ tools$ and techni0ues to

     project activities in order to meet projectre0uirementsC )PMD$ Project Management !od&

    of Knowledge )PM!OK Euide*$ 2AAA$ p. 5*

    D+he Project Management nstitute )PM* is an international

     professional societ&. +heir web site is www.pmi.org.

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    Project Management/ramework 

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    1'

    Project "takeholders

    "takeholders are the people involved in or affected

     b& project activities

    "takeholders include the project sponsor and project team

    support staff 

    customers

    users suppliers

    opponents to the project

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    1F

    ? Project ManagementKnowledge (reas

    Knowledge areas describe the ke& competencies

    that project managers must develop

    F core knowledge areas lead to specific projectobjectives )scope$ time$ cost$ and 0ualit&*

    F facilitating knowledge areas are the means through

    which the project objectives are achieved )human

    resources$ communication$ risk$ and procurement

    management

    1 knowledge area )project integration management*

    affects and is affected b& all of the other knowledge areas

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    1

    Project Management +ools and+echni0ues

    Project management tools and techni0uesassist project managers and their teams in

    various aspects of project management "ome specific ones include

    Project harter and W!" )scope* Eantt charts$ network diagrams$ critical path

    anal&sis$ critical chain scheduling )time* ost estimates and earned value management

    )cost*

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    15

    "ample W!" for ntranetProject in hart /orm

    C o n c e p t

    D e s i g n U s e r I n t e r f a c e

    D e s i g n S e r v e r S e t u p

    D e v e l o p S e r v e r  

    S u p p o r t I n f r a s t r u c t u r e

    W e b S i t e

    D e s i g n

    D e v e l o p P a g e s

    a n d L i n k s

    D e v e l o p

    F u n c t i o n a l i t y

    C o n t e n t

    M i g r a t io n / I n t e g r a t i o n

    e s t i n g

    W e b S i t e

    D e v e l o p ! e n t

    " o l l # u t S u p p o r t

    I n t r a n e t P r o $ e c t

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    18

    "ample Eantt hart

    +he W!" is on the left$ and each task@s start and finish date

    are shown on the right using a calendar timescale.

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    1>

    "ample ;etwork :iagram 

    9ach bo% is a project task from the W!". (rrows show dependencies

     between tasks. +he bolded tasks are on the critical path. f an& tasks on thecritical path take longer than planned$ the whole project will slip

    unless something is done.

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    1?

    "ample 9arned

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    2A

    More (dvantages of ProjectManagement

    !osses$ customers$ and other stakeholders do not like

    surprises

    Eood project management )PM* provides assurance and

    reduces risk 

    PM provides the tools and environment to plan$ monitor$

    track$ and manage schedules$ resources$ costs$ and 0ualit&

    PM provides a histor& or metrics base for future planning as

    well as good documentation

    Project members learn and grow b& working in a cross-

    functional team environment

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    4ow Project Management )PM*elates to Other :isciplines

    Much of the knowledge needed to manage projects

    is uni0ue to PM

    4owever$ project managers must also haveknowledge and e%perience in general management

    the application area of the project

    Project managers must focus on meeting specific

     project objectives

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    Project Management and Other:isciplines

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    2'

    +he Project ManagementProfession

    ( 1??5 /ortune article called project

    management the Bnumber one career choiceC

    Professional societies like the ProjectManagement nstitute )PM* have grown

    tremendousl&

    (verage salaries for project managers are overG>1$AAA

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    2F

    PM Knowledge ontinues toErow and Mature

    PM hosted their first research conference in Hune

    2AAA in Paris$ /rance

    +he PM!OK Euide I 2AAA 9dition is an (;"standard

    PM@s certification department earned "O ?AAA

    certification

    4undreds of new books$ articles$ and presentations

    related to project management have been written

    in recent &ears

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    2

    Project Managementertification

    PM provides certification as a Project ManagementProfessional )PMP*

    ( PMP has documented sufficient projecte%perience$ agreed to follow a code of ethics$ and

     passed the PMP e%am

    +he number of people earning PMP certification is

    increasing 0uickl& PM and other organi=ations are offering new

    certification programs

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    Project Management "oftware

    !& 2AA1$ there were tens of different products to

    assist in performing project management

    +hree main categories of tools# 3ow-end tools# 4andle single or smaller projects well$

    cost under G2AA per user 

    Midrange tools# 4andle multiple projects and users$ cost

    G2AA-AA per user$ Project 2AAA most popular  4igh-end tools# (lso called enterprise project

    management software$ often licensed on a per-user basis

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    +he Project Management onte%tand Processes

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    2>

    Project Phases and the Project3ife &cle

    ( project life c&cle is a collection of project

     phases

    Project phases var& b& project or industr&$ but some general phases include concept

    development implementation

    support

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    2?

    Phases of the Project 3ife &cle

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    '1

    :istinguishing Project 3ife&cles and Product 3ife &cles

    +he project life c&cle applies to all projects$regardless of the products being produced

    Product life c&cle models var& considerabl& based on the nature of the product

    Most large products are developed as a seriesof projects

    Project management is done in all of the product life c&cle phases

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    '2

    Wh& 4ave Project Phases andManagement eviews6

    ( project should successfull& pass through

    each of the project phases in order to

    continue on to the ne%tManagement reviews )also called phase e%its

    or kill points* should occur after each phase

    to evaluate the project@s progress$ likel&success$ and continued compatibilit& with

    organi=ational goals

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    ''

    Man& Organi=ations /ocus onthe "tructural /rame

    Most people understand what organi=ational charts

    are

    Man& new managers tr& to change organi=ationalstructure when other changes are needed

    ' basic organi=ation structures functional

     project

    matri%

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    'F

    /unctional Organi=ation

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    '5

    Weak Matri% Organi=ation

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    '8

    !alanced Matri% Organi=ation

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    '>

    "trong Matri% Organi=ation

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    '?

    omposite Organi=ation

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    F2

    ecogni=e the mportance ofProject "takeholders

    ecall that project stakeholders are the people

    involved in or affected b& project activities

    Project managers must take time to identif&$

    understand$ and manage relationships with all

     project stakeholders

    "enior e%ecutives are ver& importantstakeholders

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    F'

     ;eed for +op Managementommitment

    "everal studies cite top managementcommitment as one of the ke& factors

    associated with project success +op management can help project managers

    secure ade0uate resources$ get approval foruni0ue project needs in a timel& manner$

    receive cooperation from people throughoutthe organi=ation$ and learn how to be betterleaders

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    FF

     ;eed for Organi=ational"tandards

    "tandards and guidelines help project managers be

    more effective

    "enior management can encourage the use of standard forms and software for project

    management

    the development and use of guidelines for writing project

     plans or providing status information the creation of a project management office or center of

    e%cellence

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    F

    /ifteen Project Management Hob/unctionsD

    9valuate project re0uirements

    dentif& and evaluate risks

    Prepare contingenc& plan

    dentif& interdependencies

    dentif& and track criticalmilestones

    Participate in project phase

    review

    "ecure needed resources Manage the change control

     process

    eport project status

    :efine scope of project

    dentif& stakeholders$

    decision-makers$ and

    escalation procedures

    :evelop detailed task list)work breakdown

    structures*

    9stimate time re0uirements

    :evelop initial projectmanagement flow chart

    dentif& re0uired resources

    and budget

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    F5

    "uggested "kills for aProject Manager 

    • ommunication skills# listening$ persuading

    • Organi=ational skills# planning$ goal-setting$ anal&=ing

    • +eam !uilding skills# empath&$ motivation$ esprit de corps

    • 3eadership skills# sets e%ample$ energetic$ vision )big

     picture*$ delegates$ positive

    • oping skills# fle%ibilit&$ creativit&$ patience$ persistence

    +echnological skills# e%perience$ project knowledge

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    F8

    Project Management ProcessEroups

    Project management can be viewed as a number of

    interlinked processes

    +he project management process groups include initiating processes

     planning processes

    e%ecuting processes

    controlling processes closing processes

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    F?

    What do &ou need$ to bea good Project Manager6

    ( communicator 

    ( manager 

    (n nnovator 

    +echnicall& competent$ respected$ and aware

    (n (dministrator 

    ( 3eader 

    (ble to work well under pressures

    Eoal-oriented

    Knowledgeable about the compan&

    "enior 

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    A

    Project Manager esponsibilities

    eporting to "enior Manager and the "teeringommittee

    ommunication with ,sers

    Planning and "cheduling Obtaining and allocating resources ontrolling isk  :elivering esults

    People Management oordination Jualit& (ssurance !udget ontrol

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    1

    Project ntegration Management#  project plan development$

     project plan e%ecution$ and

    overall change control.

    Project "cope Management# initiation$

    scope planning$ scope definition$

    scope verification$ and

    scope change control.

    PM Knowledge (rea

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    2

    PM Knowledge (rea

    Project +ime Management# activit& definition$ activit& se0uencing$

    activit& duration estimating$ schedule development$ and schedule control.

    Project ost Management# resource planning$ cost estimating$ cost budgeting$ and

    cost control.

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    F

    Project ommunications Management# ommunications planning$ information distribution$

     performance reporting$ and administrative closure.

    Project isk Management# risk identification$ risk 0uantification$ risk response development$ and risk response control.

    PM Knowledge (rea

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    Project Procurement Management#  procurement planning$

    solicitation planning$ solicitation$

    source selection$

    contract administration$ and

    contract close-out.

    PM Knowledge (rea

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    8

    PO9"" EO,P"

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    ?

    PO9"" EO,P"

    M i PM P t +h P

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    5A

    Mapping PM Process to +he ProcessEroup and Knowledge (reas )pg '5*

    l ti hi

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    51

    elationship amongthe PM Process Eroups

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    52

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    5'

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    5F

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    5

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    PO9"" ;+9(+O;"

    nputs documents or documentable items that will be

    acted upon.

    +ools and techni0ues mechanisms applied to the inputs to create the

    outputs.

    Outputs documents or documentable items that are a

    result of the process.

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    58

    nput$+ools L +echni0ues$Output

    INITIATION PHASE

    INITIATION authorizing the project or phase

    Input Tools & Techniques Output

    Product description Project selection methods Project charterStrategic plan Expert judgement PM identified /assigned

    Project selection criteria Constraints

    Historical information Assumptions

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    5>

    PLANNING PHASESCOPE PLANNING developing a written scope statement as the basis for the future project decisions

    Input Tools & Techniques Output

    Product description Product analysis Scope statement

    Project charter Benefit/cost analysis Supporting detail

    Constraints Alternative identification Scope management plan

    Assumptions Expert judgement

    SCOPE DEFINITION  subdividing the major project deliverables into smaller, manageable components

    Input Tools & Techniques Output

    Scope statement or! "rea!do#n structure

    templates

    or! "rea!do#n structure

    Constraints $ecomposition Scope statement updates

    Assumptions

    %ther planning outputs

    Historical information

    ACTIVITY DEFINITION identifying the specific activities that must be performed to produce the various project deliverables

    Input Tools & Techniques Output

    or! "rea!do#n structure $ecomposition Activity list

    Scope statement &emplates Supporting detail

    Historical information or! "rea!do#n structure updates

    Constraints

    Assumptions

    Expert judgments

    nput$+ools L +echni0ues$Output

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    5?

    AC TIVITY SEQUENC ING identifying and documenting interactivity dependency 

    Input Tools & Techniques Output

    Activity List P recedence diagramming

    method (PDM)

    P roject network diagrams

    P roduct description Arrow diagramming method

    (ADM)

    Supporting detail

    Mandatory dependencies Conditional diagramming

    methods

    Activity list updates

    Discretionary dependencies etwork templates

    !"ternal dependencies

    Milestones

    AC TIVITY DURATION estimating the number of work periods that will be needed to co mplete

    ESTIMATING individual activities

    Input Tools & Techniques Output

    Activity List !"pert judgement Activity duration estimates

    Constraints Analogous estimating #asis o$ estimates

    Assumptions %uantitatively &ased durations Activity list updates

    'esource reuirements 'eserve time (contingency)

    'esource capa&ilities

    istorical in$ormation

    *denti+ed risks

    nput$+ools L +echni0ues$Output

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    8A

    SCHEDUE DEVEO!MENT analyzing activity sequences, activity durations, and resource requirements to create

     project schedule

    Input Tools & Techniques Output

    Project network diagrams Mathematical analysis Project schedule

    Activity duration estimates Duration compression Supporting detail

    'esource reuirements Simulation Schedule management plan

    'esource pool description 'esource levelling heuristics 'esource reuirement updates

    Calendars P roject management so$tware

    Constraints Coding structure

    Assumptions

    Leads and lags

    'isk management plan

    Activity attri&utes

    RIS" MANAGEMENT !ANNING deciding how to approach and plan the risk management activities for a project 

    Input Tools & Techniques Output

    P roject charter P lanning meetings ' isk management plan

    ,rgani-ation.s risk management

    policies

    De+ned roles and responsi&ilities

    Stakeholder risk tolerances

     /emplate $or the organi-ation.s

    risk

    0ork &reakdown structure

    nput$+ools L +echni0ues$Output

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    81

    RESOURCE !ANNING determining what resources (people, equipment, materials ) and what quantities of

    each should be used to perform project activitiesInput Tools & Techniques Output

    0ork &reakdown structure !"pert judgment 'esource reuirements

    istorical in$ormation Alternatives identi+cation

    Scope statement P roject management so$tware

    'esource pool description

    ,rgani-ational policiesActivity duration estimates

    COST ESTIMATING developing an approximation (estimate) of the costs of the resources needed

    to complete project activities

    Input Tools & Techniques Output

    0ork &reakdown structure Analogous estimating Cost estimates

    'esource reuirements Parametric modelling Supporting detail

    'esource rates #ottom1up estimating Cost management plan

    Activity duration estimates Computeri-ed tools

    !stimating pu&lications ,ther cost estimating methods

    istorical in$ormation

    Chart o$ accounts

    'isks

    nput$+ools L +echni0ues$Output

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    COST #UDGETING allocating the overall cost estimate to individual work activities

    Input Tools & Techniques OutputCost estimates Cost &udgeting tools and

    techniues

    Cost &aseline

    0ork &reakdown structure

    P roject schedule

    'isk management plan

    !RO$ ECT ! AN DEVEO!MENT integrating and coordinating all project plans to create a consistent, coherent docume

    Input Tools & Techniques Output

    ,ther planning outputs Pro ject P lanning

    methodology

    P roject plan

    istorical in$ormation Stakeholder skills and

    knowledge

    Supporting detail

    ,rgani-ational policies Project management

    in$ormation system (PM*S)

    Constraints !arned value management

    (!2M)

    Assumptions

    QUAITY ! ANNING identifying which quality standards are relevant to the project and determining how

    to satisfy them

    Input Tools & Techniques Output

    %uality policy #ene+t3cost analysis %uality management plan

    Scope statement #enchmarking ,perational de+nitions

    P roduct description 4low1charting Checklists

    Standards and regulations Design o$ e"periments

    *nputs to o ther processes,ther process outputs C ost o$ uality

    nput$+ools L +echni0ues$Output

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    8'

    ORGANI%ATIONA !ANNING identifying, documenting, and assigning project roles, responsibilities, and

    reporting relationships

    Input Tools & Techniques Output

    P roject inter$aces /emplates 'ole and responsi&ility assignments

    Sta5ng reuirements uman 'esource practices Sta5ng management plan

    Constraints ,rgani-ational theory ,rgani-ation chart

    Stakeholder analysis Supporting detail

    STA ACQUISITION getting the needed human resources assigned to and working on the project 

    Input Tools & Techniques Output

    Sta5ng management plan egotiations P roject sta6 assigned

    Sta5ng pool description P reassignment P roject team directory

    ' ecruitment practices P rocurement

    COMMUNICA TIONS ! ANNING determining the information and communications needs of the stakeholders:

    who needs what information,when they will need it, and how it will be given to them

    Input Tools & Techniques OutputCommunications reuirements Stakeholder analysis Communication management plan

    Communications technology

    Constraints

    Assumptions

    nput$+ools L +echni0ues$Output

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    8F

    RIS" IDENTIICATION determining which risks might aect the project and documenting their characteristics

    Input Tools & Techniques Output

    'isk management plan Documentation reviews 'isks

    Project planning outputs *n$ormation1gathering

    techniues

     /riggers

    'isk categories Checklists *nputs to other processes

    istorical in$ormation Assumptions analysis

    Diagramming techniues

    QUAITATIVE RIS" ANAYSIS  performing a qualitative analysis of risks and conditions to prioritize their eects

    on project objectives

    Input Tools & Techniques Output

    'isk management plan 'isk pro&a&ility and impact ,verall risk ranking $or the project

    *denti+ed risks P ro&a&ility impact risk rating

    matri"

    List o $ prioriti-ed risks

    P roject status Data precision ranking List o$ risks $or additional analysis and

    management

    P roject type /rends in ualitative risk analysis

    results

    Data precision

    Scales o$ pro&a&ility and impact

    Assumptions

    nput$+ools L +echni0ues$Output

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    QUANTITAT IVE RIS" ANAYSIS measuring the probability and consequences o f risks and estimating their

    implication for project objectives

    Input Tools & Techniques Output

    'isk management plan *nterviewing P rioriti-ed list o$ uanti+ed risks

    *denti+ed risks Sensitivity analysis P ro&a&ilistic analysis o$ the project

    List o$ prioriti-ed risks

    Decision tree analysis P ro&a&ility o$ achieving the cost and

    time o&jectives

    Llist o$ risks $or additional analysis

    Simulation /rends in uantitative risk analysis

    results

    istorical in$ormation

    !"pert judgment

    ,ther planning ouputs

    nput$+ools L +echni0ues$Output

    l h i

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    85

    RIS" RES!ONSE !ANNING developing procedures and techniques to enhance opportunities and reduce

    threats from risks to the project!s objectives

    Input Tools & Techniques Output

    'isk management plan Avoidance 'isk response plan

    List o$ prioriti-ed risks /rans$erence 'esidual risks

    'isk ranking o$ the project Mitigation Secondary risks

    Prioriti-ed list o$ uanti+ed risks Acceptance Contractual agreements

    P ro&a&ilistic analysis o$ the

    project

    Contigency reserve amounts needed

    P ro&a&ility o$ achieving the cost

    and time o&jectives

    *nputs to o ther processes

    List o$ potentital responses *nputs to a revised project plan

    'isk thresholds

    'isk owners

    Common risk causes

     /rends in ualitative and

    uantitative risk analysis results

    !R OCUREMENT !ANNING determining what to procure and when

    Input Tools & Techniques Output

    Scope statement M ake1or1&uy analysis P rocurement management plan

    P roduct description !"pert judgement Statement(s) o$ work

    Procurement resources Contract type selection

    Market conditions

    ,ther planning outputs

    Constraints

    Assumptions

    nput$+ools L +echni0ues$Output

    l L h i O

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    SOICITATION !ANNING documenting product requirements and identifying potential resources

    Input Tools & Techniques Output

    Procurement management plan Strandard $orms Procurement documents

    Statement(s) o$ work !"pert judgement !valuation criteria

    ,ther planning outputs Statement o$ work updates

    nput$+ools L +echni0ues$Output

    + l L + h i O

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    8>

    E'ECUTING ! HASE

    !RO$ ECT ! AN E'ECUTION carrying out the project plan by performing the activities included therein

    Input Tools & Techniques OutputP roject plan 7eneral management skills 0ork results

    Supporting detail Product skills and knowledge Change reuests

    ,rgani-ational policies 0ork authori-ation system

    P reventive action Status review meetings

    Corrective action P roject management

    in$ormation system

    ,rgani-ational procedures

    QUAITY ASSURANCE evaluating overall project performance on a regular basis to provide con"dence

    that the project will satisfy the relevant quality standards

    Input Tools & Techniques Output

    %uality management plan %uality planning tools and

    techniues

    %uality improvement

    'esults o$ uality control

    measurements

    %uality audits

    ,perational de+nitions

    TEAM DEVEO!MENT developing individual and group skills to enhance project performance

    Input Tools & Techniques Output

    P roject sta6 /eam1&uilding activities P er$ormance improvements

    P roject plan 7eneral management skills *nput to per$omance appraisals

    Sta5ng management plan 'eward and recognition

    systems

    P er$ormance reports Collocation

    !"ternal $eed&ack /raining

    nput$+ools L +echni0ues$Output

    + l L + h i O

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    SOICITATION obtaining quotations, bids, oers, o r proposals, as appropriate

    Input Tools & Techniques Output

    P rocurement documents #idder con$erences P roposals

    %uali+ed seller lists Advertising

    SOURC E SEECTION choosing from among potential sellers

    Input Tools & Techniques Output

    P roposals Contract negotiation Contract

    !valuation criteria 0eighting system

    ,rgani-ational policies Screening system

    *ndependent estimates

    CONTRA CT ADMINISTRAT ION managing the relationship with the seller 

    Input Tools & Techniques Output

    Contract Contract change control

    system

    Corresponce

    0ork results P er$ormance reporting Contract changes

    Change reuests Payment system Payment reuests

    Seller invoices

    INORMATION DISTRI#UTION making needed information available to project stakeholders in a timely manner 

    Input Tools & Techniques Output

    0ork results Communications skills P roject records

    Communication management plan *n$ormation retrieveal systems P roject presentations

    P roject plan *n$ormation distri&ution

    methods

    nput$+ools L +echni0ues$Output

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    + l L + h i O

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    SCO!E C HANGE C ONTRO controlling changes to the project scope

    Input Tools & Techniques Output

    0ork &reakdown structure Scope change control system Scope changes

    Per$ormance reports Per$ormance measurement Corrective action

    Change reuests Additional planning Lesson learned

    Scope management plan Adjusted &aseline

    SCHEDUE C ONTRO controlling changes to the project schedule

    Input Tools & Techniques Output

    P roject schedule Schedule change control

    system

    Schedule updates

    Per$ormance reports Per$ormance measurement Corrective action

    Change reuests Additional planning Lesson learned

    Schedule management plan P roject management so$tware

    2ariance analysis

    COST CONTRO controlling changes to the project budget 

    Input Tools & Techniques Output

    Cost &aseline Cost change control system 'evised cost estimates

    Per$ormance reports Per$ormance measurement #udget updates

    Change reuests !arned value management Corrective action

    C ost management plan A dditional planning !stimate at completion

    Computeri-ed tools P roject clo seout

    Lesson learned

    nput$+ools L +echni0ues$Output

    t + l L + h i O t t

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    QUAITY CONTR O monitoring speci"c project results to determine if they comply with relevant

    quality standard and identifying ways to eliminate causes of unsatisfactory performanc

    Input Tools & Techniques Output

    0ork results *nspection %uality improvement

    %uality management plan Control charts Acceptance decisions

    ,perational de+nitions P areto diagrams 'ework

    Checklists Statistical sampling Completed checklists

    4low1charting P rocess adjustments

     /rend analysis

    RIS" MONITORING AND C ONTRO monitoring residual risks, identifying new risks, executing risk reduction plans,

    and evaluating their eectiveness throughout the project life cycle

    Input Tools & Techniques Output

    'isk management plan Project risk response audits 0orkaround plans

    'isk response plan Periodic pro ject risk reviews Corrective action

    Pro ject communication !arned value analysis Pro ject change reuests

    Additional risk identi+cation andanalysis

     /echnical per$ormancemeasurement

    8pdates to the risk response plan

    Scope changes Additional risk response

    planning

    'isk data&ase

    8pdates to risk identi+cation

    checklists

    nput$+ools L +echni0ues$Output

    t + l L + h i O t t

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    >'

    COSING !HASE

    CONTRAC T COSEOUT co mpletion and settlement of the contract, including resolution of any open items

    Input Tools & Techniques Output

    Contract documentation P rocurement audits Contract +le

    4ormal acceptance and closure

    ADMINISTRATIVE C OSURE generating, gathering, and disseminating information to formalize phase or project completion

    Input Tools & Techniques Output

    P er$ormance measurement

    documentation

    P er$ormance reporting tools

    and techniues

    P roject archives

    P roduct documentation P roject reports P roject closure

    ,ther project records P roject presentations Lesson learned

    nput$+ools L +echni0ues$Output

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    Project "cope Management

    What is Project "cope Management6

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    >

    What is Project "cope Management6

    "cope refers to all the work involved in creatingthe products o t!e project and t!e processes used to create them

    Project scope management includes the processesinvolved in defining and controlling what is or isnot  included in the project

    +he project team and stakeholders must have thesame understanding of what products will be

     produces as a result of a project and what processeswill be used in producing them

    P j t " M t P

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    Project "cope Management Processes

    nitiation# beginning a project or continuing to the ne%t

     phase

    "cope planning# developing documents to provide the

     basis for future project decisions

    "cope definition# subdividing the major project

    deliverables into smaller$ more manageable components

    "cope verification# formali=ing acceptance of the projectscope

    "cope change control# controlling changes to project

    scope

    Project "cope Management

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    j p g

    Project nitiation# "trategic

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    j gPlanning and Project "election

    +he first step in initiating projects is to look

    at the big picture or strategic plan of an

    organi=ation "trategic planning involves determining

    long-term business objectives

    Projects should support strategic andfinancial business objectives

    d tif i P t ti l P j t

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    >?

    dentif&ing Potential Projects

    Man& organi=ations follow a planning

     process for selecting projects

    /irst develop an strategic plan based on theorgani=ation@s overall strategic plan

    +hen perform a business area anal&sis

    +hen define potential projects +hen select projects and assign resources

    M th d f " l ti P j t

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    ?A

    Methods for "electing Projects

    +here are usuall& more projects than

    available time and resources to implement

    them t is important to follow a logical process for

    selecting projects to work on

    Methods include focusing on broad needs$categori=ing projects$ financial methods$ and

    weighted scoring models

    /ocusing on !road

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    ?1

    gOrgani=ational ;eeds

    t is often difficult to provide strong justification for

    man& projects$ but ever&one agrees the& have a

    high value

    Bt is better to measure gold roughl& than to count

     pennies precisel&C

    +hree important criteria for projects#

    +here is a need  for the project +here are  funds available

    +here@s a strong will  to make the project succeed

    ategori=ing Projects

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    ?2

    ategori=ing Projects

    One categori=ation is whether the projectaddresses  a problem an opportunit&$ or  a directive

    (nother categori=ation is how long it will

    take to do and when it is needed (nother is the overall priorit& of the project

    /i i l ( l i f P j

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    ?'

    /inancial (nal&sis of Projects

    /inancial considerations are often an

    important consideration in selecting projects

    +hree primar& methods for determining the projected financial value of projects#  ;et present value );P

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    ?F

     ;et Present

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    ?

    p

    t t t

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    ?5

    eturn on nvestment

    eturn on investment )O* is income

    divided b& investment

      O )total discounted benefits - totaldiscounted costs* 7 discounted costs

    +he higher the O$ the better 

    Man& organi=ations have a re0uired rate ofreturn or minimum acceptable rate of return

    on investment for projects

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     ;P

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    ?>

    & &Project 1

     ;P

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    ??

    Project 2

    Weighted "coring Model

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    1AA

    Weighted "coring Model

    ( weighted scoring model is a tool that provides a s&stematic

     process for selecting projects based on man& criteria

    /irst identif& criteria important to the project selection process

    +hen assign weights )percentages* to each criterion so the&add up to 1AAN

    +hen assign scores to each criterion for each project

    Multipl& the scores b& the weights and get the total weighted

    scores +he higher the weighted score$ the better 

    "ample Weighted "coring Model for

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    1A1

    p g gProject "election

    Project harters

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    1A2

    Project harters

    (fter deciding what project to work on$ it isimportant to formali=e projects

    ( project charter is a document that formall&recogni=es the e%istence of a project and providesdirection on the project@s objectives andmanagement

    Ke& project stakeholders should sign a projectcharter to acknowledge agreement on the need andintent of the project

    "ample Project harter

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    1A'

    "ample Project harter 

    Project T"t#e$  nformation +echnolog& )+* ,pgrade ProjectProject %tart &ate$  March F$ 2AA Projected F"n"s! &ate$  :ecember F$ 2AA2Project Manager$  Kim ;gu&en$ 5?1-28>F$ kngu&enabc.com Project O'ject"(es$  ,pgrade hardware and software for all emplo&ees )appro%imatel& 2$AAA* within ?months based on new corporate standards. "ee attached sheet describing the new standards. ,pgrades ma&affect servers and midrange computers as well as network hardware and software. !udgeted G1$AAA$AAA forhardware and software costs and GAA$AAA for labor costs.Approac!$

    • ,pdate the + inventor& database to determine upgrade needs

    • :evelop detailed cost estimate for project and report to O

    • ssue a re0uest for 0uotes to obtain hardware and software

    ,se internal staff as much as possible to do the planning$ anal&sis$ and installation

    "ample Project harter )continued*

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    1AF

    p j ) *

    Name Ro#e Respons"'"#"t)

    Walter "chmidt$ 9O Project "ponsor Monitor project

    Mike wack O Monitor project$ providestaff 

    Kim ;gu&en Project Manager Plan and e%ecute project

    Heff Hohnson :irector of + Operations Mentor Kim

     ;anc& e&nolds

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    "cope :efinition and the Work

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    1A5

    !reakdown "tructure

    (fter completing scope planning$ the ne%t step is to

    further define the work b& breaking it into

    manageable pieces

    Eood scope definition helps improve the accurac& of time$ cost$ and resource

    estimates

    defines a baseline for performance measurement and

     project control

    aids in communicating clear work responsibilities

    +he Work !reakdown "tructure

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    1A8

    +he Work !reakdown "tructure

    ( work breakdown structure )W!"* is an

    outcome-oriented anal&sis of the work

    involved in a project that defines the totalscope of the project

    t is a foundation document in project

    management because it provides the basis for

     planning and managing project schedules$

    costs$ and changes

    "ample ntranet W!" Organi=ed b&

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    1A>

    Product

    "ample ntranet W!" Organi=ed b&

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    1A?

    Phase

    ntranet W!" in +abular /orm

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    11A

    ntranet W!" in +abular /orm1.A oncept

    1.1 9valuate current s&stems1.2 :efine e0uirements

    1.2.1 :efine user re0uirements

    1.2.2 :efine content re0uirements

    1.2.' :efine s&stem re0uirements

    1.2.F :efine server owner re0uirements1.' :efine specific functionalit&

    1.F :efine risks and risk management approach

    1. :evelop project plan

    1.5 !rief web development team

    2.A Web "ite :esign

    '.A Web "ite :evelopment

    F.A oll Out

    .A "upport

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    ntranet W!" and Eantt hart Organi=ed b&Project Management Process Eroups

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    112

    Project Management Process Eroups

    (pproaches to :eveloping W!"s

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    11'

    (pproaches to :eveloping W!"s

    ,sing guidelines# "ome organi=ations$ like the:O:$ provide guidelines for preparing W!"s

    +he analog& approach# t often helps to reviewW!"s of similar projects

    +he top-down approach# "tart with the largestitems of the project and keep breaking them down

    +he bottoms-up approach# "tart with the detailedtasks and roll them up

    !asic Principles for reating W!"sD

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    11F

    s c c p es o e g W "s

    +leland$ :avid .  Project Management% Strategic $esign and Imp#ementation , 1??F

    1. ( unit of work should appear at onl& one place in the W!".

    2. +he work content of a W!" item is the sum of the W!" items below it.

    '. ( W!" item is the responsibilit& of onl& one individual$ even though man& people ma&

     be working on it.

    F. +he W!" must be consistent with the wa& in which work is actuall& going to be

     performedQ it should serve the project team first and other purposes onl& if practical.

    . Project team members should be involved in developing the W!" to ensure consistenc&

    and bu&-in.

    5. 9ach W!" item must be documented to ensure accurate understanding of the scope of

    work included and not included in that item.

    8. +he W!" must be a fle%ible tool to accommodate inevitable changes while properl&

    maintaining control of the work content in the project according to the scope

    statement.

    "cope

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    11

    hange ontrol

    t is ver& difficult to create a good scope

    statement and W!" for a project

    t is even more difficult to verif& project scopeand minimi=e scope changes

    "uggestions for educing ncompleted h i i t

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    115

    and hanging e0uirements

    :evelop and follow a re0uirements management process

    9mplo& techni0ues such as protot&ping$ use case modeling$and Hoint (pplication :esign to thoroughl& understand user

    re0uirements Put all re0uirements in writing and current

    reate a re0uirements management database

    Provide ade0uate testing

    ,se a process for reviewing re0uested changes from as&stems perspective

    9mphasi=e completion dates

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    Project +ime Management

    Project +ime Management

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    11>

    Processes

    Project time management involves the

     processes re0uired to ensure timel&

    completion of a project. Processes include# (ctivit& definition

    (ctivit& se0uencing

    (ctivit& duration estimating

    "chedule development

    "chedule control

    Project +ime Management

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    11?

    Where :o "chedules ome /rom6: fi i ( ti iti

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    12A

    :efining (ctivities

    Project schedules grow out of the basic document

    that initiate a project Project charter includes start and end dates and budget

    information "cope statement and W!" help define what will be done

    (ctivit& definition involves developing a more

    detailed W!" and supporting e%planations tounderstand all the work to be done

    (ctivit& "e0uencing

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    121

    nvolves reviewing activities and determiningdependencies Mandator& dependencies# inherent in the nature of the

    workQ hard logic :iscretionar& dependencies# defined b& the project

    teamQ soft logic 9%ternal dependencies# involve relationships between

     project and non-project activities Rou must  determine dependencies in order to use

    critical path anal&sis

    Project ;etwork :iagrams

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    122

    j g

    Project network diagrams are the preferred

    techni0ue for showing activit& se0uencing

    ( project network diagram is a schematic displa& ofthe logical relationships among$ or se0uencing of$

     project activities

    Precedence :iagrammingM th d )P:M*

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    12'

    Method )P:M*

    (ctivities are represented b& bo%es

    (rrows show relationships between activities

    More popular than (:M method and used b& project management software

    !etter at showing different t&pes of

    dependencies

    Tas, &ependenc) T)pes

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    12F

    "ample Precedence :iagramming Method )P:M* ;etwork :iagram for Project S

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    12

    g j

    (ctivit& :uration 9stimating

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    125

    & g

    (fter defining activities and determining

    their se0uence$ the ne%t step in time

    management is duration estimating :uration includes the actual amount of time

    worked on an activit& p#us elapsed time

    People doing the work should help createestimates$ and an e%pert should review them

    "chedule :evelopment

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    128

    "chedule development uses results of the other timemanagement processes to determine the start andend date of the project and its activities

    ,ltimate goal is to create a realistic project schedulethat provides a basis for monitoring project progressfor the time dimension of the project

    mportant tools and techni0ues include Eantt charts$

    P9+ anal&sis$ critical path anal&sis$ and criticalchain scheduling

    Eantt harts

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    12>

    Eantt charts provide a standard format for displa&ing project schedule information b& listing projectactivities and their corresponding start and finish

    dates in a calendar format "&mbols include#

    ( black diamond# milestones or significant events on a project with =ero duration

    +hick black bars# summar& tasks 3ighter hori=ontal bars# tasks (rrows# dependencies between tasks

    Eantt hart for "oftware 3aunch Project

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    12?

    "ample +racking Eantt hart

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    1'A

    white diamond# slipped milestone

    two bars# planned and actual times

    ritical Path Method )PM*

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    1'1

    ) *

    PM is a project network anal&sis techni0ue used

    to predict total project duration

    ( critical path for a project is the series of

    activities that determines the ear#iest time b&

    which the project can be completed

    +he critical path is the #ongest path through the

    network diagram and has the least amount of slackor float

    /inding the ritical Path

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    1'2

    g

    /irst develop a good project network

    diagram

    (dd the durations for all activities on each path through the project network diagram

    +he longest path is the critical path

    "imple 9%ample of :eterminingthe ritical Path

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    1''

    the ritical Path

    onsider the following project network diagram.

    (ssume all times are in da&s./

    s ar n s

    a. 4ow man& paths are on this network diagram6

     b. 4ow long is each path6

    c. Which is the critical path6

    d. What is the shortest amount of time needed to completethis project6

    :etermining the ritical Path forProject S

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    1'F

    Project S

    More on the ritical Path

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    1'

    f one of more activities on the critical path takes

    longer than planned$ the whole project schedule will

    slip un#ess corrective action is taken

    Misconceptions# +he critical path is not the one with all the critical

    activitiesQ it onl& accounts for time

    +here can be more than one critical path if the lengths oftwo or more paths are the same

    +he critical path can change as the project progresses

    ,sing ritical Path (nal&sis toMake "chedule +rade-offs

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    1'5

    Make "chedule +rade-offs

    Knowing the critical path helps &ou make

    schedule trade-offs

     &ree s#ack or free f#oat  is the amount of time an

    activit& can be dela&ed without dela&ing the earl&

    start of an& immediatel& following activities

    "ota# s#ack or tota# f#oat  is the amount of time an

    activit& ma& be dela&ed from its earl& startwithout dela&ing the planned project finish date

    +echni0ues for "hortening aProject "chedule

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    1'8

    Project "chedule

    "hortening durations of critical tasks for

    adding more resources or changing their

    scope

    Crashing tasks b& obtaining the greatest

    amount of schedule compression for the least

    incremental cost

     &ast tracking  tasks b& doing them in parallel

    or overlapping them

    mportance of ,pdatingritical Path :ata

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    1'>

    ritical Path :ata

    t is important to update project schedule

    information

    +he critical path ma& change as &ou enteractual start and finish dates

    f &ou know the project completion date will

    slip$ negotiate with the project sponsor 

    Multitasking 9%ample

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    1'?

    Program 9valuation and eview+echni0ue )P9+*

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    1FA

    +echni0ue )P9+*

    P9+ is a network anal&sis techni0ue used to

    estimate project duration when there is a

    high degree of uncertaint& about theindividual activit& duration estimates

    P9+ uses probabilistic time estimates based

    on using optimistic$ most likel&$ and pessimistic estimates of activit& durations

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    ontrolling hanges to theProject "chedule

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    1F2

    Project "chedule

    Perform realit& checks on schedules

    (llow for contingencies

    :on@t plan for ever&one to work at 1AANcapacit& all the time

    4old progress meetings with stakeholders

    and be clear and honest in communicatingschedule issues

    Working with People ssues

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    1F'

    "trong leadership helps projects succeed

    more than good P9+ charts

    Project managers should use empowerment

    incentives

    discipline

    negotiation

    ,sing "oftware to (ssist in+ime Management

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    1FF

    +ime Management

    "oftware for facilitating communications

    helps people e%change schedule-related

    information :ecision support models help anal&=e trade-

    offs that can be made

    Project management software can help invarious time management areas

    Project ?> /eatures elated to Project +imeManagement

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    1F

    g

    Reports -"e.s and Ta'#e -"e.s F"#ters

    •  Overview reports# criticaltasks and milestones

    •  urrent activities reports#

    unstarted tasks$ tasks startingsoon$ tasks in progress$completed tasks$ should havestarted tasks$ and slippingtasks

    •  (ssignment reports# who

    does what when

    •  Eantt chart$ P9+chart$ +racking Eantt$schedule$ tracking$

    variance$ constraintdates$ and dela&

    •  (ll tasks$completed tasks$critical tasks$

    incomplete tasks$and milestonetasks

    Words of aution on ,sing ProjectManagement "oftware

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    1F5

    Management "oftware

    Man& people misuse project management software

     because the& don@t understand important concepts

    and have not had good training

    Rou must enter dependencies to have dates adjust

    automaticall& and to determine the critical path

    Rou must enter actual schedule information to

    compare planned and actual progress

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    Project ost Management

    What is ost and Project ostManagement6

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    1F>

    Management6

    ost is a resource sacrificed or fore-gone toachieve a specific objective or somethinggiven up in e%change

    osts are usuall& measured in monetar& unitslike dollars

    Project cost management includes the

     processes re0uired to ensure that the project iscompleted within an approved budget

    Project ost Management Processes

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    1F?

    esource planning# determining what resourcesand 0uantities of them should be used

    ost estimating# developing an estimate of the

    costs and resources needed to complete a project ost budgeting# allocating the overall cost estimate

    to individual work items to establish a baseline formeasuring performance

    ost control# controlling changes to the project budget

    Project ost Management

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    1A

    esource Planning

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    11

    +he nature of the project and the organi=ation willaffect resource planning

    "ome 0uestions to consider# 4ow difficult will it be to do specific tasks on the project6 s there an&thing uni0ue in this project@s scope statement

    that will affect resources6 What is the organi=ation@s histor& in doing similar tasks6 :oes the organi=ation have or can the& ac0uire the people$

    e0uipment$ and materials that are capable and availablefor performing the work6

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    +&pes of ost 9stimates

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    1'

    T)pe o Est"mate W!en &one W!) &one Ho. Accurate

    Roug! Order o 

    Magn"tude /ROM0

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    1F

    ' basic tools and techni0ues for costestimates# analogous or top-down# use the actual cost of a

     previous$ similar project as the basis for the newestimate

     bottom-up# estimate individual work items and

    sum them to get a total estimate  parametric# use project characteristics in a

    mathematical model to estimate costs

    +&pical Problems with ost9stimates

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    1

    9stimates

    :eveloping an estimate for a large project is a comple% taskre0uiring a significant amount of effort. emember thatestimates are done at various stages of the project

    Man& people doing estimates have little e%perience doingthem. +r& to provide training and mentoring

    People have a bias toward underestimation. eviewestimates and ask important 0uestions to make sureestimates are not biased

    Management wants a number for a bid$ not a real estimate.Project managers must negotiate with project sponsors tocreate realistic cost estimates

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    9arned

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    1?

    +he p#anned (a#ue /P-01 formerl& called the budgeted cost of

    work scheduled )!W"*$ also called the budget$ is that portion

    of the approved total cost estimate planned to be spent on an

    activit& during a given period

    Actua# cost /AC01 formerl& called actual cost of work

     performed )(WP*$ is the total of direct and indirect costs

    incurred in accomplishing work on an activit& during a given

     period

    +he earned (a#ue /E-01 formerl& called the budgeted cost of

    work performed )!WP*$ is the percentage of work actuall&

    completed multiplied b& the planned value

    9arned

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    15A

    +o estimate what it will cost to complete a project or howlong it will take based on performance to date$ divide the

     budgeted cost or time b& the appropriate inde%.

    !WP7(WP

    !WP7!W"

    !WP - !W"

    !WP - (WP

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    ules of +humb for 9

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    152

     ;egative numbers for cost and schedule

    variance indicate problems in those areas.

    +he project is costing more than planned ortaking longer than planned

    P and "P less than 1AAN indicate

     problems

    9arned

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    15'

    9arned

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    15F

    !WP

    (WP !W"

    ,sing "oftware to (ssist in ostManagement

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    15

    "preadsheets are a common tool for resource

     planning$ cost estimating$ cost budgeting$ and

    cost control

    Man& companies use more sophisticated and

    centrali=ed financial applications software for

    cost information

    Project management software has man& cost-

    related features

    P j J li M

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    Project Jualit& Management

    What s Project Jualit&Management6

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    158

    g

    +he nternational Organi=ation for "tandardi=ation

    )"O* defines 0ualit& as the totalit& of

    characteristics of an entit& that bear on its abilit& to

    satisf& stated or implied needs Other e%perts define 0ualit& based on

    conformance to re0uirements# meeting written

    specifications

    fitness for use# ensuring a product can be used as it was

    intended

    Project Jualit& ManagementProcesses

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    15>

    Jualit& planning# identif&ing which 0ualit&standards are relevant to the project and how tosatisf& them

    Jualit& assurance# evaluating overall project performance to ensure the project will satisf& therelevant 0ualit& standards

    Jualit& control# monitoring specific project results

    to ensure that the& compl& with the relevant 0ualit&standards while identif&ing wa&s to improve overall0ualit&

    Project Jualit& Management

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    15?

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    Jualit& 9%perts

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    181

    :eming was famous for his work in rebuilding Hapan and

    his 1F points

    Huran wrote the Jualit& ontrol 4andbook and 1A steps to

    0ualit& improvement

    rosb& wrote Jualit& is /ree and suggested that

    organi=ations strive for =ero defects

    shikawa developed the concept of 0ualit& circles and

    using fishbone diagrams

    +aguchi developed methods for optimi=ing the process of

    engineering e%perimentation

    /eigenbaum developed the concept of total 0ualit& control

    "ample /ishbone or shikawa:iagram

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    182

    Malcolm !aldrige (ward and"O ?AAA

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    18'

    +he Malcolm !aldrige Jualit& (ward was started in

    1?>8 to recogni=e companies with world-class

    0ualit&

    "O ?AAA provides minimum re0uirements for an

    organi=ation to meet their 0ualit& certification

    standards

    Jualit& Planning

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    18F

    t is important to design in 0ualit& andcommunicate important factors that directl&contribute to meeting the customer@s re0uirements

    :esign of e%periments helps identif& whichvariable have the most influence on the overalloutcome of a process

    Man& scope aspects of + projects affect 0ualit&

    like functionalit&$ features$ s&stem outputs$ performance$ reliabilit&$ and maintainabilit&

    Jualit& (ssurance

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    18

    Jualit& assurance includes all the activities relatedto satisf&ing the relevant 0ualit& standards for a

     project

    (nother goal of 0ualit& assurance is continuous0ualit& improvement

    !enchmarking can be used to generate ideas for0ualit& improvements

    Jualit& audits help identif& lessons learned that canimprove performance on current or future projects

    Jualit& ontrol

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    185

    +he main outputs of 0ualit& control are acceptance decisions

    rework 

     process adjustments "ome tools and techni0ues include

     pareto anal&sis

    statistical sampling

    0ualit& control charts

    testing

    Pareto (nal&sis

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    188

    Pareto anal&sis involves identif&ing the vital few

    contributors that account for the most 0ualit&

     problems in a s&stem

    (lso called the >A-2A rule$ meaning that >AN of

     problems are often due to 2AN of the causes

    Pareto diagrams are histograms that help identif&

    and prioriti=e problem areas

    "ample Pareto :iagram

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    18>

    "tatistical "ampling and "tandard:eviation

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    18?

    "tatistical sampling involves choosing part

    of a population of interest for inspection

    +he si=e of a sample depends on howrepresentative &ou want the sample to be

    "ample si=e formula#

    "ample si=e .2 S )certaint& /actor7acceptable error*2

    ommonl& ,sed ertaint&/actors

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    1>A

    &es"red Certa"nt) Certa"nt) Factor

    ?N 1.?5A

    ?AN 1.5F

    >AN 1.2>1

    ?N certaint "ample si=e A.2 S )1.?5A7.A* 2  '>F

    ?AN certaint "ample si=e A.2 S )1.5F7.1A*2

      5>>AN certaint "ample si=e A.2 S )1.2>17.2A*2  1A

    "tandard :eviation

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    1>1

    "tandard deviation measures how much variation

    e%ists in a distribution of data

    ( small standard deviation means that data cluster

    closel& around the middle of a distribution andthere is little variabilit& among the data

    ( normal distribution is a bell-shaped curve that is

    s&mmetrical about the mean or average value of a population

     ;ormal :istribution and "tandard:eviation

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    1>2

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    +esting

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    1>F

    Man& professionals think of testing as a

    stage that comes near the end of product

    development

    +esting should be done during almost ever&

     phase of the product development life c&cle

    mproving Project Jualit&

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    1>

    "everal suggestions for improving 0ualit& for

     projects include

    3eadership that promotes 0ualit&

    ,nderstanding the cost of 0ualit&

    /ocusing on organi=ational influences and

    workplace factors that affect 0ualit&

    /ollowing maturit& models to improve 0ualit&

    3eadership

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    1>5

    Bt is most important that top management be

    0ualit&-minded. n the absence of sincere

    manifestation of interest at the top$ little willhappen below.C )Huran$ 1?F*

    ( large percentage of 0ualit& problems are

    associated with management$ not technicalissues

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    /ive ost ategories elated to Jualit&

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    1>>

    Prevention cost# the cost of planning and e%ecuting a project so it is error-free or within an acceptable errorrange

    (ppraisal cost# the cost of evaluating processes and their

    outputs to ensure 0ualit& nternal failure cost# cost incurred to correct an identified

    defect before the customer receives the product

    9%ternal failure cost# cost that relates to all errors notdetected and corrected before deliver& to the customer 

    Measurement and test e0uipment costs# capital cost ofe0uipment used to perform prevention and appraisalactivities

    Project Management Maturit& Model

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    1>?

    1. (d-4oc# +he project management process is described as disorgani=ed$ andoccasionall& even chaotic. +he organi=ation has not defined s&stems and

     processes$ and project success depends on individual effort. +here are chronic cost

    and schedule problems.

    2. (bbreviated# +here are some project management processes and s&stems in place to

    track cost$ schedule$ and scope. Project success is largel& unpredictable and cost

    and schedule problems are common.

    '. Organi=ed# +here are standardi=ed$ documented project management processes and

    s&stems that are integrated into the rest of the organi=ation. Project success is more

     predictable$ and cost and schedule performance is improved.

    F. Managed# Management collects and uses detailed measures of the effectiveness of

     project management. Project success is more uniform$ and cost and schedule performance conforms to plan.

    . (daptive# /eedback from the project management process and from piloting

    innovative ideas and technologies enables continuous improvement. Project

    success is the norm$ and cost and schedule performance is continuousl&

    improving.

    Project 4uman esource

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    Management

    +he mportance of 4umanesource Management

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    1?1

    People determine the success and failure of

    organi=ations and projects

    What is Project 4uman esourceManagement6

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    1?2

    Project human resource management

    includes the processes re0uired to make the

    most effective use of the people involved

    with a project. Processes include Organi=ational planning

    "taff ac0uisition

    +eam development

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    Ke&s to Managing People

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    1?F

    Ps&chologists and management theorists have

    devoted much research and thought to the

    field of managing people at work 

    mportant areas related to project

    management include motivation

    influence and power  effectiveness

    Motivation

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    1?

    (braham Maslow developed a hierarch& of

    needs to illustrate his theor& that people@s

     behaviors are guided b& a se0uence of needs

    Maslow argued that humans possess uni0ue

    0ualities that enable them to make

    independent choices$ thus giving them

    control of their destin&

    Maslow@s 4ierarch& of ;eeds

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    1?5

    4er=berg@s Motivational and4&giene /actors

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    1?8

    /rederick 4er=berg wrote several famous books and

    articles about worker motivation. 4e distinguished

     between

    motivational factors# achievement$ recognition$ the workitself$ responsibilit&$ advancement$ and growth$ which

     produce job satisfaction

    h&giene factors# cause dissatisfaction if not present$ but

    do not motivate workers to do more. 9%amples includelarger salaries$ more supervision$ and a more attractive

    work environment

    McEregor@s +heor& S and R

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    1?>

    :ouglas McEregor populari=ed the human relations approach

    to management in the 1?5As

    +heor& S# assumes workers dislike and avoid work$ so

    managers must use coercion$ threats and various control

    schemes to get workers to meet objectives

    +heor& R# assumes individuals consider work as natural as

     pla& or rest and enjo& the satisfaction of esteem and self-

    actuali=ation needs

    +heor& # introduced in 1?>1 b& William Ouchi and is based

    on the Hapanese approach to motivating workers$ emphasi=ing

    trust$ 0ualit&$ collective decision making$ and cultural values

    +hamhain and Wilemon@s Wa&s to4ave nfluence on Projects

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    1??

    1. (uthorit the legitimate hierarchical right to issue orders

    2. (ssignment# the project managerVs perceived abilit& to influence aworkerVs later work assignments

    '. !udget# the project managerVs perceived abilit& to authori=e othersV useof discretionar& funds

    F. Promotion# the abilit& to improve a workerVs position

    . Mone the abilit& to increase a workerVs pa& and benefits

    5. Penalt the project managerVs abilit& to cause punishment

    8. Work challenge# the abilit& to assign work that capitali=es on a workerVsenjo&ment of doing a particular task 

    >. 9%pertise# the project managerVs perceived special knowledge that othersdeem important

    ?. /riendship# the abilit& to establish friendl& personal relationships between the project manager and others

    Wa&s to nfluence that 4elp and4urt Projects

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    2AA

    Projects are more likel& to succeed when projectmanagers influence with e%pertise

    work challenge Projects are more likel& to fail when project

    managers rel& too heavil& on authorit&

    mone&  penalt&

    Power 

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    2A1

    Power is the potential abilit& to influence behavior

    to get people to do things the& would not otherwise

    do

    +&pes of power include oercive

    3egitimate

    9%pert

    eward

    eferent

    mproving 9ffectiveness - ove&@s8 4abits

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    2A2

    Project managers can appl& ove&@s 8 habits to

    improve effectiveness on projects !e proactive

    !egin with the end in mind Put first things first

    +hink win7win

    "eek first to understand$ then to be understood

    "&nergi=e

    "harpen the saw

    9mpathic 3istening and apport

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    2A'

    Eood project managers are empathic listenersQthe& listen with the intent to understand

    !efore &ou can communicate with others$ &ou

    have to have rapport Mirroring is a techni0ue to help establish rapport

    Professionals often need to develop empathiclistening and other people skills to improve

    relationships with users and other stakeholders

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    "ample Organi=ational hart for a3arge + Project

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    2A

    Work :efinition and (ssignmentProcess

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    2A5

    "ample esponsibilit& (ssignmentMatri% )(M*

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    2A8

    (M "howing "takeholder oles

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    2A>

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    "taff (c0uisition

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    21A

    "taffing plans and good hiring procedures are importantin staff ac0uisition$ as are incentives for recruiting andretention

    "ome companies give their emplo&ees one dollar for

    ever& hour a new person the& helped hire works "ome organi=ations allow people to work from home as

    an incentive

    esearch shows that people leave their jobs because the&

    don@t make a difference$ don@t get proper recognition$aren@t learning an&thing new$ don@t like their coworkers$and want to earn more mone&

    esource 3oading and 3eveling

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    211

    esource loading refers to the amount of individual

    resources an e%isting project schedule re0uires

    during specific time periods

    esource histograms show resource loading

    Over-allocation means more resources than are

    available are assigned to perform work at a given

    time

    "ample esource 4istogram for a3arge + Project

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    "ample 4istogram "howing anOverallocated ndividual

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    21'

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    esource 3eveling 9%ample

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    21

    +eam :evelopment

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    215

    t takes teamwork to successfull& completemost projects

    +raining can help people understand

    themselves$ each other$ and how to work better in teams

    +eam building activities include

     ph&sical challenges  ps&chological preference indicator tools

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    eward and ecognition "&stems

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    21>

    +eam-based reward and recognition s&stems can

     promote teamwork 

    /ocus on rewarding teams for achieving specific

    goals (llow time for team members to mentor and help

    each other to meet project goals and develop human

    resources

    Eeneral (dvice on +eams

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    21?

    /ocus on meeting project objectives and producing positive results

    /i% the problem instead of blaming people

    9stablish regular$ effective meetings  ;urture team members and encourage them to help

    each other 

    (cknowledge individual and group accomplishments

    ,sing "oftware to (ssist in 4umanesource Management

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    22A

    "oftware can help in producing (M" and

    resource histograms

    Project management software includes several

    features related to human resource managementsuch as viewing resource usage information

    identif&ing under and over-allocated resources

    leveling resources

    esource ,sage

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    esource ,sage eport fromMicrosoft Project

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    222

    Project esource Management nvolvesMuch More +han ,sing "oftware

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    22'

    Project managers must +reat people with consideration and respect

    ,nderstand what motivates them

    ommunicate carefull& with them

    Eoal is to enable project team members to

    deliver their best work

    Project ommunications

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    Management

    mportance of Eood ommunications

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    22

    +he greatest threat to man& projects is a failure tocommunicate

    Our culture does not portra& PM professionals as

     being good communicators esearch shows that PM professionals must be able

    to communicate effectivel& to succeed in their positions

    "trong verbal skills are a ke& factor in careeradvancement for PM professionals

    Project ommunications ManagementProcesses

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    225

    ommunications planning# determining theinformation and communications needs of thestakeholders

    nformation distribution# making needed informationavailable in a timel& manner 

    Performance reporting# collecting and disseminating performance information

    (dministrative closure# generating$ gathering$ anddisseminating information to formali=e phase or project completion

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    ommunications Planning

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    22>

    9ver& project should include some t&pe of

    communications management plan$ a document that

    guides project communications

    reating a stakeholder anal&sis for projectcommunications also aids in communications

     planning

    ommunications Management Planontents

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    22?

    ( description of a collection and filing structure forgathering and storing various t&pes of information

    ( distribution structure describing what information goes to

    whom$ when$ and how

    ( format for communicating ke& project information

    ( project schedule for producing the information

    (ccess methods for obtaining the information

    ( method for updating the communications management

     plans as the project progresses and develops

    ( stakeholder communications anal&sis

    "ample "takeholder (nal&sis for Projectommunications

    %ta,e!o#ders &ocument Name &ocument

    Format

    Contact Person &ue

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    2'A

    ustomer Management

    Monthl& "tatuseport

    4ard cop& Eail /eldman$+on& "ilva

    /irst of month

    ustomer !usiness "taff 

    Monthl& "tatuseport

    4ard cop& Hulie Erant$

    Heff Martin

    /irst of month

    ustomer +echnical "taff 

    Monthl& "tatuseport

    9-mail 9van :odge$

     ;anc& Michaels

    /irst of month

    nternalManagement

    Monthl& "tatuseport

    4ard cop& !ob +homson /irst of month

    nternal!usiness and+echnical "taff 

    Monthl& "tatuseport

    ntranet (ngie 3iu /irst of month

    +raining"ubcontractor 

    +raining Plan 4ard op& Honathan Kraus 117171???

    "oftware"ubcontractor 

    "oftwaremplementationPlan

    9-mail !arbara Eates 57172AAA

    nformation :istribution

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    2'1

    Eetting the right information to the right people at

    the right time and in a useful format is just as

    important as developing the information in the first

     place mportant considerations include

    using technolog& to enhance information distribution

    formal and informal methods for distributing

    information

    Media hoice +able

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    +he mpact of the ;umber of People onommunications hannels

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    Performance eporting

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    Performance reporting keeps stakeholders informedabout how resources are being used to achieve

     project objectives "tatus 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 Project forecasting predicts future project status and

     progress based on past information and trends "tatus review meetings often include performance

    reporting

    (dministrative losure

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    ( project or phase of a project re0uires

    closure

    (dministrative closure produces  project archives

    formal acceptance

    l