pmeducate guide 4th

8/6/2019 Pmeducate Guide 4th

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PROJECT MANAGEMENT

REVIEW

(4th Edition)


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What Is A Project?

A PROJECT by definition is a temporary undertaking to create a unique product,service, or result. Projects help the organization achieve its goals. Projects

organize activities that are not addressed through usual day-to-day operations.

Characteristically, a project:

Is temporary

Creates unique products, services, or results

Provides progressive elaboration

Examples of projects include:

Creating a new product

Creating a new service

Constructing a building Deploying a new business process

Buying a new information system

Copyright PM Educate / Virtual Course Providers LLC. All Rights Reserved3


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Operations, Programs, Plans & PortfoliosBOTH PROJECTS and OPERATIONS:

have people perform them

are constrained by limited resources

are planned, executed, and controlled

NOTE HOWEVER THAT OPERATIONS:

are ongoing and repetitive

have objectives that are continuous

adapt to new objectives so the work continues to sustain business

PROGRAMS are groups of projects managed in a coordinated way to obtain greater benefits andcontrol, which could not be achieved from managing the projects separately. They are acombination of related projects.

PLANS are characterized and classified according to: their function or use to which they are applied

their objectives, policies, procedures, methods and rules

whether they are short-term or long-term in duration



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Operations, Programs, Plans & Portfolios cont.

PORTFOLIOS are collections of projects or programs and their associated operations that are grouped togetherto facilitate effective management and to meet strategic objectives.

PORTFOLIO MANAGEMENT:

satisfies strategic business objectives

aids in selecting appropriate projects and programs to maximize the portfolio value.Senior managers or senior management are typically responsible for an organization's portfolio management.

Project Deliverables & The PMOPROJECT DELIVERABLES can be unique products, services, or results. They are measurable, verifiable work

products. Examples include: feasibility studies, prototypes, design documents, or specifications.

PRODUCTS are quantifiable. They can be an end item, or a component item.

SERVICES support production or distribution. For example, business

functions, which support production, are services.

RESULTS can include new and beneficial processes.

THE PROJECT MANAGEMENT OFFICE (PMO) is referred to as a program management office, project office, orprogram office.

THE PMOs PURPOSE is to aid in centralizing and managing a program.

THE PMO MANAGES the overall centralized risks, opportunities, resources, enterprise-wide technology, etc fornumerous projects.



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Project ScopePROJECT SCOPE is defined as work to be done.

The scope of the project is work that must be performed to deliver a product, service, or result withspecified features and functions. The scope is defined when the team begins the planning phase.

The project scope begins as a general idea with end goals and objectives. It becomes more detailed asthe team develops a structured breakdown of the project, identifying specific details.

Project Start and End DatesEstablishing the 'project start-date' is important since there are many elements of the project thatdepend on it, including when the project should be complete.

SET THE PROJECT START-DATE after:

the idea and budget are approved

the project manager and team are assigned

the project agreement or contract is signed

those directly involved in the project have met (pre-project meetings)

ESTABLISH THE PROJECT END-DATE according to:

project acceptance

a specified test or implementation period after tasks or work is completed

status changes (upon individual phase completions)

assured satisfaction, or end of a production run.



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Project Life CycleProject managers divide projects into phases to provide better management control.

A PROJECT LIFE CYCLE is comprised of stages, from origin through to completion.

THE PROJECT LIFE CYCLE INCLUDES:

the beginning and end of a project

the transitional activities and ongoing operations links

technical work in each phase of the project

the deliverables generated

who does the work how each phase is controlled and approved

The project life cycle may be just one phase of a product life cycle.

SUBPROJECTS WITHIN PROJECTS have their own distinct life cycles.

PRIMARY CONCERNS DURING THE ENTIRE PROJECT LIFE CYCLE are:

performance time

cost

Note that performance and schedule concerns are typically more important than cost during all stages,because they determine quality and timely completion.



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Project Life Cycle cont.Source: A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4rd Edition (2008, Project

Management Institute, all rights reserved)

MOST PROJECT LIFE CYCLES SHARE COMMON CHARACTERISTICS

PHASES are typically sequential, defined by technical information. COST AND STAFFING LEVELS are LOW at the beginning of the project, PEAK during the

intermediate phases, and DROP SHARPLY as the project concludes

Copyright PM Educate / Virtual Course Providers LLC. All Rights Reserved

INTERMEDIATE PHASE

INITIAL FINALPHASE PHASE

TIME

Cost

&

Staffing

Level

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Project Life Cycle cont.Source: Meredith & Mantel, Project Management: A Managerial Approach.

Projects typically begin slowly, pick up speed, and progress to a peak, and then

slow again until they reach completion. Some projects slow down so significantlytoward the end that they actually act as though they are resisting completion.

The primary reason for this is the numerous parts that must all come together, or

loose ends that must be tied up.


% PROJECT

COMPLETION

100% END PROJECT

SLOW FINISH

QUICK

SLOW PROGRESSIONSTART

0% PROJECT

BEGIN PROJECT TIME

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Project Life Cycle cont.Source: Meredith & Mantel, Project Management: A Managerial Approach.

The pattern of the SLOW-RAPID-SLOW progression, is typically due to the changinglevels of resources and project effort during the life cycle.

TIME DISTRIBUTION: Things move more slowly at the beginning. Progress picks up duringproject activity and slows as activity ceases, final evaluations are done, and the project

becomes complete.


PEAK LEVEL OF EFFORT

LEVEL

OF

EFFORT

PROJECT

TIME

Conception Selection Planning, Scheduling, Evaluation &

Monitoring & Controlling Completion

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Project Life Cycle cont.Source: A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th Edition (2008, Project


THE LEVEL OF UNCERTAINTY IS HIGHEST = RISK OF FAILURE IS HIGHEST, at the beginning

of the project.The ability of stakeholders to influence the final product and final cost are highest at the

beginning of the project.


HIGH Influence of Stakeholders

Stakeholder

Influence

Cost of Changes

LOW

PROJECT TIME

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Managers Responsibilities & DutiesAll managers are fundamentally responsible for directing people, which includes:

communicating

motivating

leading coaching

administering procedures

conflict resolution

All managers perform similar duties in directing resources for which they are accountable. Theseduties are known as FUNCTIONAL MANAGEMENT, which include the functional responsibilities of:

planning

organizing controlling

monitoring

THE FUNCTIONAL MANAGER is a specialist, and knows technical details about the work andoperations. Functional managers are direct, technical supervisors, and use an analytical approach to

problem-solve and make decisions.THE PROJECT MANAGER is a generalist and a facilitator, has a varied background of experience andknowledge, and uses a systems approach to make decisions, coordinate, and integrate the elements ofthe project toward completion.



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The Project Manager & ResponsibilitiesCharacteristically, a successful project manager is someone who:

has a high degree of flexibility and adaptability to changes

is a good communicator

is persuasive

can function in an ambiguous environment with ill-defined relationships

has the ability to manage and resolve conflict situations.

The project manager should be knowledgeable and skillful in:

interpersonal skills

general management as well as project management practical applications of knowledge, standards, and regulations

the project environment

Successful project managers are also adept at conflict and stress management.

THE PROJECT MANAGER (PM) is primarily responsible for: project performance

successful project completion



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The Project Managers Responsibilities cont.

THE PMs RESPONSIBILITY TO THE ORGANIZATION:

competency accurate and timely communications

alerting upper management and recommending alternative solutions when technical, cost, orschedule objectives or contractual obligations are not being met

proper resource utilization

THE PMs RESPONSIBILITY TO THE PROJECT TEAM:

maintaining effective communication and interpersonal relationships providing adequate resources to accomplish the end result on time and within budget

making or enforcing necessary decisions to avoid delays and to be sure project objectives are met

THE PMs RESPONSIBILITY TO THE PROJECT:

ensure the integrity of the project

negotiate project contract work orders, change orders, and progress payments with functionaldepartments and managers

meet profit objectives

produce the specific end product or result within technical, cost, and schedule specifications withthe available resources



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Who Are The Project Stakeholders?

PROJECT STAKEHOLDERS are anyone who positively or negatively impacts

the project, including the:PROJECT MANAGER who is not required to be a technical expert, but is responsible formanaging the project and project deliverables.

CUSTOMERS who purchase the projects product or service.

USERS who will directly use the end-product, end-service, or who are affected by the endresult.

THE PERFORMING ORGANIZATION which is the enterprise whose employees are mostdirectly involved in the work on the project.

SPONSOR who provides financial resources for the project.

PROJECT TEAM MEMBERS which comprise the group performing the work.

OTHERS who include government agencies, media outlets, individual citizens, owners, andsellers, etc.

PROJECT STAKEHOLDERS ARE IMPORTANT because of the positive/negative impact andinfluences they bring to the project.



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About The OrganizationThe Organization Is Based On The Process of Organizing

PRINCIPLES FOR ORGANIZING

Organizing is every managers responsibility.

Organizing produces job and position creation

Organizing is not a one-time process.

THE RESULT OF ORGANIZING = AN ORGANIZATIONAL STRUCTURE

AN ORGANIZATIONAL STRUCTURE = a system of activity-authorityrelationships

CHARACTERISTICALLY, organizational structures are both:

FORMAL: Having an officially established network and framework of relationshipsbetween horizontal levels (divisions, departments) and vertical levels (various managementlevels).

INFORMAL: Having voluntary and unplanned networks of interpersonal relationships,methods, and procedures, which do not appear on the organizational chart.



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Characteristics Of The OrganizationSource: Badawy, Developing Managerial Skills in Engineers and Scientists

Characteristics FORMAL INFORMAL

Type of SystemStatic Dynamic

Objective Achieve overall objective Resist change; informed aboutorganizational events; protecting

group members

Leadership Authority & responsibility are assigned perposition

Informal leaders emerge as

spokespeople for the group

Authority Bureaucratic Entrepreneurial

Power & Control Directly related to job description &position on the organizational chart

A function of clout, influence,

connections, impressions

Reward System Sharing or withholding benefits based oncontribution and loyalty to the org

Reflected by status within the group

Status & Symbols Differentiation between employees on

various levels

Higher status individuals are

recognized

Communications Formal communications following the chainof command

The grapevine might reinforce or

distract from formal communication

Organizational Norms Formal rules, policies, procedures enforced Desire to fit in with peers; conform

Discipline Enforced per formal policies & procedures Group acceptance and enforcement



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Organizational CulturesAN ORGANIZATIONS CULTURE provides the organization and its employees with an identity.It facilitates a commitment:

through rewards

through a social system which provides standards and procedures and socialnorms

through influencing employee behavior and performance

THE ORGANIZATIONS CULTURE DIRECTLY INFLUENCES THE PROJECT through:

shared values, norms, beliefs, and expectations

policies and procedures a view of authority relationships with subordinates

work ethic and work hours

BUREAUCRATIC CULTURES provide control in the pursuit of an organizations goals. They are:

Formal structures

More objective and impartial in hiring, firing and promoting Focused on technical expertise rather than connections, social status or family ties

Governed by detailed rules and regulations



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Organizational Cultures cont.

ENTREPRENURIAL CULTURES:

provide flexibility and personal latitude for employees to fully utilize their

strengths

are designed to empower employees and encourage responsibility

are informal, decentralized, have open communication and relationships

have a wide span of control and emphasize flexibility, adaptability, and

creativity

WEAK CULTURES:

inhibit success

have difficulty prioritizing

have weak or no leadership

lack daily organizational routines

EXCESSIVELY STRONG CULTURES

can create barriers to change and improvement, diversity, and cross-

departmental and cross-organizational cooperation.



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Functional, Projectized & Matrix Organizational Structures

The performing organizations structure and culture typically constrain available resources,which in turn impact projects.

Major types of organizational structures include:

FORMAL (Functional) ORGANIZATIONS which are hierarchical organizations that groupstaff by specialty (engineering, manufacturing, accounting, etc.). The project managerassumes little or no authority, nor does the project manager have or need resourcesavailable.

PROJECTIZED ORGANIZATIONS which give the project manager high to total authority,budget control, and access to resources. Project management is a full-time role and theproject manager has an administrative staff.

MATRIX ORGANIZATIONS which are a mix of functional and projectized cultures. Theydistribute specified products or market functions to each self-contained division or industryof the parent organization. The functional manager controls the budget in weakorganizations, and the project manager controls the budget in strong organizations. Thefunctional manager and project manager share the responsibility within balanced matrixorganizations.

PMOs may be found in all types of organizations. However, they are more predominantlyfound in PROJECTIZED and STRONG MATRIX types of organizations that have more openenvironments and structures.


H Th O i ti l St t


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How The Organizational Structure

Influences ProjectsSource: A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th Edition (2008, Project



ORGANIZATIONAL

STRUCTURE

PROJECT

CHARACTERISTIC

FUNCTIONAL

MATRIX

PROJECTIZED

WEAK BALANCED STRONG

Project Managers

Authority

Little or

None

Limited Low to

Moderate

Moderate to

High

High to Nearly

Total

Resource Availability Little or

None

Limited Low to

Moderate

Moderate to

High

High to Nearly

Total

Project Budget Control Functional

Manager

Functional

Manager

Mixed Project

Manager

Project

Manager

Project Managers Role Part time Part time Full time Full time Full time

Project Management

Administrative Staff

Part time Part time Full time Full time Full time

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Project Management, System & ProcessesTHE PROJECT MANAGEMENT PROCESS is a set of interrelated actions and activities performedto achieve a specific goal or objective.

PROJECT MANAGEMENT PROCESSES ARE: integrative

integrated

defined according to Process Group.

The PURPOSE of the project management process is to:

initiate

plan

execute

monitor and control

close the project

The project manager and team determine what processes from the process groups will be

implemented to achieve the desired objective. The concept for the interaction among theproject management processes is the PLAN-DO-CHECK-ACT Cycle.



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A Summary Of The Project Management

Process Groups

The INITIATING PROCESS GROUP consists of the processes that facilitate the formal

authorization to begin a new project or project phase.

Prior to beginning these activities, business needs or requirements are documented.

Stakeholder involvement is paramount, and helps ensure success, shared ownership, andacceptance of deliverables.

The PLANNING PROCESS GROUP helps gather information from many sources so theproject management plan may be developed.

Interactions are dependent upon the nature of the project.

Feedback and refinement cannot go on indefinitely. Procedures are set by theorganization to determine an end point for the planning effort.

The EXECUTING PROCESS GROUP consists of processes used to complete the workdefined in the project management plan.

People and other project resources are coordinated. Project management plan activities are integrated and performed.

The scope defined in the project scope statement is addressed, and approved changes areimplemented.

Note: Normal execution variances will cause some re-planning.



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A Summary Of The Project Management

Process Groups cont.

The MONITORING AND CONTROLLING PROCESS GROUP consists of the processesperformed to observe project execution, so potential problems may be identified in a timelymanner and corrective action taken to control the execution of the project.

Changes are controlled.

Preventive action is recommended in anticipation of potential problems.

The entire project effort, as well as the project work itself, is monitored and controlled.

The CLOSING PROCESS GROUP consists of processes used to finalize all activities and close the

project or project phase.

PROCESS INTERACTIONSPROJECT MANAGEMENT PROCESS GROUPS ARE LINKED BY INPUTS AND OUTPUTS. THE OUTPUT OF ONE

PROCESS TYPICALLY BECOMES THE INPUT OF ANOTHER PROCESS.

STANDARDS vs. REGULATIONSALL PROCESSES AND THEIR OUTPUTS MUST COMPLY WITH ESTABLISHED RULES, REGULATIONS,

STANDARDS, AND PROCEDURES.

In accordance with the International Organization for Standardization (ISO):

STANDARDS are documents established by consensus, approved by a recognized body, aimed atachieving an optimum degree of order in a given context.

REGULATIONS are government-imposed, mandatory requirements that specify products,processes, or services and their administration.



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Project Management PracticesTO HELP ENSURE PROJECT SUCCESS, appropriate processes must be selected that fit specificproject objectives. A defined approach is adapted that is appropriate for the project, which complieswith stakeholders' needs and expectations. Project scope, resources, and risk are balanced toproduce a quality product.

GOOD PRACTICE is a general agreement that the application of the project managementprocesses will enhance the chances of success over a wide range of projects.

Project managers labor under the auspices of THE TRIPLE CONSTRAINT.

the 'triple constraint. The triple constraint is

composed of the projects scope, time, and cost constraints.

These must be simultaneously and effectively

managed to ensure project success.

Due to many and varied responsibilities, project

managers synthesize (combine) their tasks, referred

to as MULTI-TASKING. To do this and maintain

a degree of efficiency, the project manager must know:

What needs to be done?

When does it need to be done by?

How will the necessary resources needed to do the job, be obtained?

Who will be the most concerned about each project phase as the project progresses?


COST SCOPE

TIME

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Chapter 2

Project Integration Management

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Integration Management Overview

INTEGRATION is primarily concerned with effectively combining project management process groupsrequired to accomplish project objectives in accordance with organizational procedures.

PROJECT INTEGRATION MANAGEMENT involves identifying, defining, combining, unifying, andcoordinating various processes and project management activities. Integration management includesplanning and scheduling, using a variety of tools such as CPM and PERT. It coordinates and integratesinterrelated stages and project processes to ensure timely and cost effective project completion. Interms of project management, integration management is characterized by unification, consolidation,and articulation of integrative actions for successful project completion.

The Major Project Integration Management processes include:

1) Developing the project charter

2) Developing the project management plan

3) Directing and managing project execution

4) Monitoring and controlling project work

5) Performing integrated change control

6) Closing the project (or closing the project phase)

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Integration Management Overview cont.

Primary objectives project managers attempt to accomplish through the integration processinclude: performance, effectiveness, and cost.

The project manager should focus on performance reliability and quality. When the project systemneeds to be corrected or repaired, it must be done efficiently and cost effectively.

VALUE ENGINEERING is used to examine cost tradeoffs, which is an important part of theintegration process. Value engineering is a controlled application of common sense and technicalknowledge, directed at finding and eliminating unnecessary costs within a project. Value engineering is

designed toward a specific project.

The project manager uses integration management in:

decision-making

determining and mitigating potential risk

coordinating overlapping processes and activities

Although project management processes are typically presented as individual components, in reality,they actually interact and overlap. The project manager must consider all dynamic process interactions.

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Integration Management Overview cont.

Planning processes are integrated when:

project changes become necessary

revised scheduling/time and cost/budget management is required

there exists a risk that a problem is not isolated, or will not be permanently resolved, or that theproject cannot be completed.

Unforeseen obstacles arise during a project. All project life cycle phases can experience

conflicts. In the early project life-cycle, project elements are adjusting to each other, andissues for debate may include:

project feasibility

basic project planning

objectives

proposed scope

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Integration Management Overview cont.Additional resources used to resolve the problem and manage the situation are required if theproject is to continue toward completion.

Technical and interface problems have generally been solved, bypassed, or resolved andput in place by the INTEGRATION CLOSE OUT, or PHASE OUT, phase. In instances wheretechnology might be installed on a client's system, for example, technical conflicts might existbut tend to be minimal.

Schedules create the most conflict, as projects have firm deadlines which must be met.Schedule slips might have occurred in previous phases that caused project completion to be off-

target.

Cost overruns are usually tolerated providing they are not high or excessive.

Personality conflicts are the second biggest reason for conflict during close out.

When conflict arises between team members that results in delays in the project, theproject manager should focus on objective criteria and options for mutual gain.

The project manager that tries to avoid conflict is inviting disaster. The projectmanager must focus on objective criteria for the project, as well as listen to information neededto find a win-win. They must seek the most practical resolution, so project execution can moveforward.

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Integration Management ActivitiesINTEGRATIVE ACTIVITIES THE PROJECT MANAGEMENT TEAM PERFORMS include:

scope analysis

product requirement documentation

measuring and monitoring the project and products

analyzing project risks

Note that project deliverables may also need to be integrated with operations. Integrationmay be required with the performing organizations operations or those of the customersorganization. Integration can also encompass ensuring the project is consistent with longterm strategic planning for the organization.

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Integrative Project Management Processes

PROJECT INTEGRATION MANAGEMENT includes processes of:

DEVELOPING THE PROJECT CHARTER which formally authorizes the project or projectphase.

DEVELOPING THE PROJECT MANAGEMENT PLAN which documents all actionsnecessary to coordinate subsidiary plans into a main project management plan.

DIRECTING & MANAGING PROJECT EXECUTION which executes the work defined in the

project management plan necessary to achieve project requirements.MONITORING & CONTROLLING WORK which monitors and controls processes used tomeet performance objectives defined in the project management plan.

INTEGRATING CHANGE CONTROL & PROJECT CLOSE OUT which includes reviewing allchange requests and changes to deliverables and organizational processes, and finalizes all

activities to close the project or project phase.

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The Project Charter cont.

THE PROJECT CHARTER SHOULD EITHER DIRECTLY or INDIRECTLY ADDRESS the: requirements that satisfy customers', stakeholders, and business needs and influences

project purpose, justification, summary milestone schedule, and budget level of authority of the assigned project manager, and the functional organizations

organizational, environmental, and external assumptions and constraints

PROJECT CHARTER DEVELOPMENT involves: documenting the business needs

documenting project justification

documenting a current understanding of the customer's requirements

explaining the new product, service, or intended result.

Tools & Techniques Used To Develop The Project Charter

Tools and techniques used to develop the Project Charter include expert judgment supplied by: Consultants

Stakeholders

Outside professional and technical associations SMEs (Subject Matter Experts)

The PMO

Specific industry groups

Units within the organization

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The Project Charter cont.PROJECT SELECTION involves measuring values or attractiveness to the project owner or sponsor.

THE "SOW" IS THE STATEMENT OF WORK, which is a description of products or services to be

supplied to the project. The STATEMENT OF WORK captures: the business need

the strategic plan

the product scope description

THE STATEMENT OF WORK FOR INTERNAL PROJECTS defines work based on business needand product or service requirements.

AN ORGANIZATIONS BUSINESS NEED might include:

training

technology

market demand

government or legal requirements

THE STRATEGIC PLAN should be considered when making project selection decisions. All projectsshould support the organization's strategic goals.

THE STATEMENT OF WORK FOR EXTERNAL WORK, or product scope description, may bereceived from a customer as part of a bid document.

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The Project Charter cont.

CONTRACTS are used in development of the project charter, if the project is being performedfor an external customer.

The Business Case is a key input to the Project Charter. Business cases are generated orsupported from one or more of the following:

Customer requests

Market demand

Needs within the organization

Technological, legal, ecological or social changes (or needs)

ENTERPRISE ENVIRONMENTAL FACTORS AND SYSTEMS such as: organizational cultureand structure, government or industry standards, infrastructure, existing human resources and

personnel administrations, marketplace conditions, MIS, and commercial databases are

considered during the development of the Project Charter.

ORGANIZATIONAL PROCESS ASSETS encompass historical data from previous projects.These include schedules, templates, risk data, and earned value data.

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Project Management Plan cont.

THE PROJECT MANAGEMENT PLAN is updated and revised during the Integrated

Change Control process using project management methodology, the PMIS, and expertjudgment.

Tools & Techniques Used To Develop The PMP

The project management team uses the PMIS to aid them in developing the projectmanagement plan. This facilitates feedback during document development and helps

control changes.

THE CONFIGURATION MANAGEMENT SYSTEM is a subsystem of the PMIS, whichincludes processes for submitting proposed changes and tracking systems for reviewing and

approving proposed changes. The configuration management system ensures quality

control by supporting the audit of products or components to verify conformance with

requirements and standards.

The change control system is a subsystem of the configuration management system. The

change control system defines how deliverables and documentation are controlled,

changed, and approved.

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Directing & Managing Project Execution

Directing and managing project execution is the integrative process that performs activitiesoutlined in the project scope statement.

ACTIVITIES AND OUTPUT include: project deliverables

activities to accomplish requirements

acquisition and use of resources

staffing, training and managing the team

implementation of methods and standards

communication

project data change requests

corrective and preventive actions

vendor management

lessons learned and process improvements

Products, services, and results of the project are in the form of tangible deliverables such as

buildings, roads, etc. and intangible deliverables such as training.

Part of the project execution process involves collecting work performance information about thecompletion status of the deliverables. This information is fed into the performance reportingprocess.

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Directing & Managing Project Execution cont.

APPROVED CHANGE REQUESTS are documented policies, procedures, costs, schedules,

and other PMP modifications that alter the contract project scope. Approved changesshall be implemented by the project team.

IF CHANGES ARE NECESSARY, they are typically requested during either the projectexecution and/or monitor and control phases.

APPROVED CORRECTIVE ACTIONS are documented, authorized directions intended to

bring future project performance into compliance with the project management plan.They are implemented by the project management team to reduce the consequences

of project risks.

APPROVED PREVENTIVE ACTIONS are documented and authorized directions intendedto reduce the probability of negative consequences associated with project risks.

APPROVED DEFECT REPAIRS are documented, authorized requests for product defectcorrection during quality control and audit processes.

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Monitoring & Controlling Project Work

MONITORING is a part of project management that is performed throughout the project.

Monitoring includes:

collecting measuring

disseminating performance information

Monitoring data is assessed to implement process improvements.

CONTINUALLY MONITORING the project helps keep the project (schedule and cost) on-track, and

identifies areas requiring special and immediate attention (quality control). Monitoring also aids inmitigating pre-determined areas of risk.

THE INTEGRATIVE MONITOR AND CONTROL PROCESS monitors and controls the project in aneffort to meet performance objectives. "Changes, cost scheduling, and quality control" are activitiesperformed within these processes. The process includes monitoring and controlling activities used to:

initiate

plan

execute

close out a project

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Integrated Change Control

The project management plan, project scope statement, and deliverables are maintained by

continuously managing changes. This is done by rejecting or approving changes and

incorporating those approved into a revised baseline.

THE PROJECT MANAGER INCORPORATES INTEGRATED CHANGE CONTROL into his/her

activities by:

1. identifying that a change needs to occur or has occurred

2. ensuring that change is approved prior to implementation

3. managing the number of change requests, and reviewing all corrective and

preventive actions to reduce the number or changes

PROPOSED CHANGES MAY REQUIRE REVISIONS TO:

cost estimates

schedules

resources

risk response alternatives

the project scope

the PMP

project deliverables

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Integrated Change Control cont.

Configuration management in conjunction change control provides a standardized,effective, process for centrally managing project changes.

A project-wide configuration management system with change control includesidentification, documentation, and control of changes to the baseline.

Configuration management with change control provides a standardized, effective, processfor centrally managing project changes.

The primary reasons for using the project-wide configuration management system withchange control are to:

establish a method to assess the change value and impact

to communicate changes to the team

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Integrated Change Control cont.

CONFIGURATION IDENTIFICATION provides the foundation in which productconfiguration is defined and also verified. Configuration identification also provides the

basis for how products and documents are labeled and how changes are managed.

CONFIGURATION STATUS ACCOUNTING effectively captures, stores, and accessesinformation regarding configuration items and changes to configuration.

CONFIGURATION VERIFICATION AND AUDITING verifies that configurationitems are correct, and that related changes are properly tracked and implemented.

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Project Close Out

CLOSURE includes developing the index and location of project documentation using theconfiguration management system.

THE PROJECT CLOSE OUT PROCESS establishes procedures to:

verify and document project deliverables

formalize project deliverable acceptance

define reasons for early termination, if applicable

THE ADMINISTRATIVE CLOSURE PROCEDURE: documents all project activities, roles, and responsibilities needed in executing

the administrative closure of the project

formally closes and transfers the completed project or portion of project scopeand associated activities applicable to some project phase.

ADMINISTRATIVE CLOSURE PROCEDURES include activities needed to:

collect and archive project records

analyze project success or failure

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Project Close Out cont.

Roles and responsibilities of the project team members involved in executing the

administrative closure procedure are contained in the administrative procedure.Stakeholder approval of changes, project acceptance, and activities necessary to satisfy

completion or exit the project (early) are included in the project documentation.

THE CONTRACT CLOSURE PROCEDURE is a step-by-step procedure used to:

settle and close the project contract agreement

verify customer satisfaction with the product update project records to reflect final project results

archive the information for future use.

All formal acceptance documentation, project files, closure documents, and historical

information are contained in the project file.

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Chapter 3

Project Scope Management

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Requirements Outputs


KEY REQUIREMENTS OUTPUTS INCLUDE:

1) Requirements documentation: Documentation is used to capture howrequirements will meet the business needs for the project. All requirements mustbe quantified, measurable, traceable, complete and accepted by stakeholders.

2) Requirements Management Plan: The plan captures how requirements will beanalyzed, documented and managed during the life of the project.

3) Requirements Traceability Matrix: The matrix links requirements from theirorigin and tracks them through the entire project life cycle. The matrix is utilized

as a framework for managing changes to the product scope during the project.

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Defining The Project Scope

DURING THE SCOPE DEFINITION PROCESS stakeholders' needs, wants, and expectations areanalyzed for completeness and converted into project scope requirements .

To define the project scope, the project manager uses:

product analysis

expert judgment

identification of alternatives

workshops

The detailed project scope and the project management plan are developed using:

historical information

project charter information

the preliminary project scope statement

the latest approved version of the project management plan any relevant enterprise environmental factors

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The Project Scope Statement


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The Project Scope StatementThe project scope statement is created during the scope definition activity and describes theproject scope, or what needs to be accomplished. It is the basis for future project decisions.

The project scope statement details the project's deliverables and the work required to create the

deliverables.

THE PROJECT SCOPE STATEMENT describes:

major project deliverables

objectives

assumptions and constraints

the statement of work (SOW)

ASSUMPTIONS are factors that are considered factual, real, or certain, such as the start-date.Assumptions generally involve a degree of risk.

CONSTRAINTS are factors limiting the project managers options regarding scope, staffing, andscheduling. Constraints are typically stated in the contract.

When a project is performed under contract, contractual provisions are consideredconstraints.

Predefined budgets and schedule milestones are examples of such contractual provisionconstraints.

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The Project Scope Statement cont.

OTHER ITEMS INCLUDED IN THE PROJECT SCOPE STATEMENT include: product scope description

requirements

project constraints

project deliverables

product acceptance criteria

project assumptions

project exclusions

Project have a wide variety of business, cost, schedule, technical and quality objectives, thatinclude cost, schedule, and quality targets.

PROJECT OBJECTIVE ATTRIBUTES include a cost, a metric (such as US dollars), and an absolute or relativevalue (such as a total cost of less than 1.5 million dollars, etc.).

COST is the monetary value or price of a project activity or component, which includes themonetary worth of the resources required to perform and complete the activity / produce the

component.

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The Project Scope Statement cont.

PROJECT REQUIREMENTS describe conditions or capabilities that must be met orpossessed by project deliverables to satisfy a contract, standard, specification or other

formally imposed items.

A SCHEDULE MILESTONE represents a significant event on a project schedule, such as anevent restraining future work, or one that marks the completion of a major deliverable. It

has zero duration.

A PROJECT SPECIFICATION is a document that specifies the requirements,characteristics, procedures, and other components of the project to ensure satisfaction. It

can also be a product, design, and test specifications.

SMALL PROJECTS SCOPES ARE EASIER TO DEFINE since small projects are typically

completed quickly and do not involve many change requests. If scope change requests do

occur, the project manager may quickly (and usually informally) resolve the matter.

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Creating The WBS (Work Breakdown Structure)

A "WBS" is a "work breakdown structure" that organizes and defines project scope. It is ahierarchy that defines and organizes project work to accomplish specified internal and

external deliverables. Each descending level of the hierarchy represents a more detailed

definition of the project work.

THE WBS CAN BE USED TO SHOW how each piece of the project is tied to the whole interms of performance, responsibilities, budgeting and scheduling.

A WORK PACKAGE is a project work component at the lowest level of each branch of theWBS. Work packages include schedule activities and schedule milestones necessary to

complete the work package deliverables or components. Work package levels (the lowestWBS levels) are the points at which the cost and schedule for work can be reliably estimated.

STANDARD WBS TEMPLATES are used in many application areas or by performingorganizations. Projects within a given organization which are similar to past projects and havesimilar life cycles and deliverables, utilize WBS templates to achieve consistent project results.

In an effort to control and manage project management team requirements, theproject manager uses a WBS template and major deliverables and sub projects,project life cycle phases, and different approaches within each WBS branch. Theproject manager and project team restructures and organizes deliverables andassociated project work into a WBS.

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Creating The WBS (Work Breakdown Structure) cont.

DECOMPOSITION is a planning technique that subdivides project scope and deliverablesinto smaller more manageable components. Project deliverables and work are subdivideduntil they can be defined at the work package level.

ACTIVITIES INVOLVED IN DECOMPOSITION include:

identifying related work and deliverables

structuring and organizing the WBS

decomposing upper WBS levels to lower levels

developing and assigning ID codes to WBS components

verifying that the degree of decomposition of the work isnecessary and/or sufficient

EXCESSIVE DECOMPOSITION occurs when project managers get bogged down with toomuch planning detail. This can lead to non-productive management and contribute toinefficient work performance and resource allocation.

The project management team typically waits until the deliverable or subproject is clarified

before developing the WBS. This progressive detailing of the project management plan is

ROLLING WAVE PLANNING. Rolling wave planning is the progressive and ongoingdetailing of the project management plan.

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Creating the WBS (Work Breakdown Structure) cont.

EACH WBS COMPONENT IS DEFINED in terms of how the work is executed and controlled.For example, quality control components of a construction project could include inspection,

testing, and documentation activities.

LOWER-LEVEL WBS components must be sufficient to ensure completion of the correspondingHIGHER-LEVEL DELIVERABLES.

THE WBS DICTIONARY is a companion document that provides detailed componentinformation including:

work packages and control accounts the statements of work

responsible organization

lists of schedule milestones

description of work

resource and quality requirements

cost estimates

acceptance criteria

contract detail

A SCOPE BASELINE is the approved, time phased project scope. It consists of the approved,detailed project scope statement and its associated WBS and WBS dictionary.

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Verify ScopeVerify Scope involves formalizing acceptance of the completed project deliverables by thestakeholder. The stakeholder accepts the deliverables after evaluating and selecting the bestalternative.

THE PROJECT SCOPE VERIFICATION PROCESS documents the level and extent ofcompletion when a project is terminated early.

Quality control is generally performed before scope verification but both processesmay be performed in parallel.

INSPECTION is the primary scope verification tool or technique the project manager uses to

verify if work and deliverables meet requirements and product acceptance criteria.

Inspection activities include:

measuring

examining

verifying work and deliverables to ensure they meetrequirements and product acceptance criteria

Completed deliverables that have NOT been accepted are documented with thereasons they were not accepted.

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Control Scope

Control Scope ensures all requested changes and recommended

corrective actions are processed through the project Integrated Change Control process. It

manages actual changes when they occur, and it is combined with other control processes.

PERFORMANCE REPORTS are the input control tools that provide the project manager

information about interim deliverables as they are completed. They provide:

summarized work performance information

earned value management parameters and calculations

analyses of project work progress and status

PERFORMANCE FORMATS which are used to show current schedule status include:

bar charts, S-curves

histograms

tables

project schedule network diagrams

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Control Scope cont.

APPROVED CHANGE REQUESTS that impact project scope are modifications to the

approved project scope baseline (as previously defined by the approved project scopestatement, WBS, and WBS dictionary).

A PROJECT SCOPE CHANGE CONTROL SYSTEM is documented in the project scopemanagement plan. It is integrated with any overall project management information systemto control the project scope.

SCOPE CHANGE CONTROL SYSTEMS include:

documentation

tracking systems approval levels necessary for authorizing changes

Tools & Techniques Used To Perform Scope Control

VARIANCE ANALYSIS is a scope control technique that uses project performancemeasurements to assess the magnitude of variation. The cause of variance relative to the

scope baseline helps determine if corrective action is required.

RE-PLANNING involves approved change requests affecting the project scope, whichnecessitate modifying the WBS and WBS dictionary, the components of the projectmanagement plan, and project scope statement.

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Control Scope cont.

A FORMAL CONFIGURATION MANAGEMENT SYSTEM provides procedures fordocumentation of deliverables and ensures changes have been thoroughly reviewed and

documented prior to their processing.

EXPECTED SCOPE CONTROL MANAGEMENT OUTPUT includes updates to the:

project scope statement

WBS and WBS dictionary

scope baseline

organizational process assets

project management plan

requested changes and corrective actions

SCOPE CREEP involves the addition of features or (project scope) functionality withoutcustomer approval or consideration to the additional time, cost, and resources that will be

needed.

CORRECTIVE ACTION is the documented project direction necessary to bring expectedfuture work performance in line with the project management plan.

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Control Scope cont.

ORGANIZATIONAL PROCESS ASSET UPDATES to the scope control process include thecauses of variances and chosen corrective actions, which are documented and recorded in

the organizational process assets historical database.

REVISIONS TO THE COST AND SCHEDULE BASELINES AND COMPONENT

DOCUMENTS are made to the project management plan, providing approved changerequests impact the project scope.

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Chapter 4

Project Time Management

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Defining Activities


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Defining ActivitiesTHE TIME MANAGEMENT ACTIVITY DEFINITION PROCESS identifies

the specific schedule activities which must be performed to produce various project deliverables.

THE ACTIVITY DEFINITION PROCESSidentifies the deliverables at the lowest level of the WBS

(the work package).

Output from previously performed project integration and planning processes is usedto define the schedule activities.

The project manager utilizes the following to define the schedule activities:

the scope baseline

organizational process assets

enterprise environmental factors

INTERNAL ORGANIZATIONAL PROCESS ASSETS and ENTERPRISE ENVIRONMENTALFACTORS used to define the schedule activities include:

organizational policies

the historical information project calendar resource availability

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Defining Activities cont.


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PROJECT SCOPE STATEMENT CONSTRAINTS impose completion dates that are required bymanagement or by the contract.

PROJECT LIMITATIONS DOCUMENTED IN THE PROJECT SCOPE STATEMENT can limit theproject management team's schedule milestones and other options.

THE PROJECT MANAGEMENT PLAN CONTAINS THE SCHEDULE MANAGEMENT PLAN whichprovides guidance on development and planning schedule activities as well as the project scopemanagement plan.

Tools & Techniques Used To Define ActivitiesWORK PACKAGE COMPONENTS, called schedule activities, are smaller, more manageablecomponents acquired through the decomposition process.

DECOMPOSITION is the subdividing of project work packages into schedule activities.

A SCHEDULE ACTIVITY is a component of work performed during a project. It may be connected toother schedule activities and milestones by logical relationships. Schedule activities have:

an estimated duration

cost

planned resources

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TEMPLATES made from information from similar past projects' activity lists are often usedfor a new project. Templates typically contain related activity attribute information such as:

resource skills and required hours

identified risks expected deliverables lists

TEMPLATES may be used to establish SCHEDULE MILESTONES.

ROLLING WAVE PLANNING involves: planning short-term work in detail at low levels of the WBS

planning future work at high levels of the WBS that will be detailed within one or two periods

The last component in a low level branch of the WBS is used to develop a high level projectschedule for that component. These planning components are schedule activities, which areinsufficient to support the detailed estimating, scheduling, executing, monitoring, orcontrolling the project.

The CONTROL ACCOUNT is a planning component in which the scope, budget, actualcost, and schedule are integrated at a management control point, and compared toearned value (EV), to measure performance.

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A PLANNING PACKAGE is a WBS component below the control account but above the workpackage, and is used for planning known work that does not have detailed activities.

ACTIVITY LISTS are documented tabulations of schedule activities showing:

the activity description

the activity identifier

scope of work

THE SCHEDULE ACTIVITY SCOPE OF WORK may be represented:

in physical terms (CY of conc., LF of pipe)

by the number of drawings

in lines of computer program code

in the chapters in a book

ACTIVITY ATTRIBUTES are used for:

project schedule development

selecting, ordering, and sorting planned schedule activities within reports

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SCHEDULE ACTIVITY ATTRIBUTES include:

time leads and lags

resource requirements

the person responsible for executing the work

logical relationships

activity identifiers

activity description

predecessor and successor activities imposed dates

constraints and assumptions

the place, type of work, and effort

MILESTONES required by the contract are considered MANDATORY MILESTONES.

OPTIONAL MILESTONES are those based on project requirements or on historical information.

THE MILESTONE LIST is a component of the project management plan and used in the schedulemodel.

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THE ACTIVITY SEQUENCING PROCESS provides a means of identifying and

documenting dependences among schedule activities.

ACTIVITY SEQUENCING OUTPUTS include:

project schedule network diagrams

project document updates

SCHEDULE ACTIVITIES ARE LOGICALLY SEQUENCED using:

precedence relationships

leads lags

PRODUCT CHARACTERISTICS can affect activity sequencing.

THE PROJECT SCOPE STATEMENT characteristically describes major project deliverables,objectives, assumptions, constraints, and the statement of work, which also impacts activity

sequencing.

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Sequence Activities cont.

PRECEDENCE RELATIONSHIPS used in PDM networks may be:

Finish-to-Start

Start-to-Finish

Finish-to-Finish

Start-to-Start

FINISH-TO-START are the most commonly used precedence relationships.

#1. (Finish-to-Start) Activity B cannot begin before Activity A is completed.

Activity A

Activity B 2+ daysA

B

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#2. (Finish-to-Finish) Activity B cannot be completed until Activity A iscompleted.

Activity A

Activity B

3+ days

#3. (Start-to-Start)Activity B cannot begin until Activity A is underway.

Activity A

Activity B 3+ days

#4. (Start-to-Finish) Activity B cannot be completed before Activity A begins.

Activity A

Activity B 6+ days

A

A

A

B

B

B

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MANDATORY DEPENDENCIES are those that are inherent in the nature of the work being done.One activity must be completed before the successor activity can begin.

DISCRETIONARY DEPENDENCIES are usually based on knowledge of best practices within a

particular application area or when a specific sequence is desired.

EXTERNAL DEPENDENCIES are identified during the process of establishing the sequence ofactivities. The project manager discovers that Activity B cannot begin until Activity A is acquired,or processed, from outside the scope of work. These dependencies involve a relationship betweenproject and non-project activities.

MANDATORY DEPENDENCIES are often referred to as hard logic, since they are inherent in thenature of the work being done. For example: Activity A must be completed before Activity B canbegins.

A LAG creates a delay in the successor activity. For example: If a project manager is working witha finish-to-start dependency, he will find he has to build in a 28-day lag period into the projectschedule to ensure a concrete foundation has cured.

In finish-to-start relationships, a LEAD allows an acceleration of the successor activity. For example:The project management team has 15 days left to put the contract out to bid; 90% of the contractis complete. The word processing team begins editing and compilation while the design teamfinalizes the special provisions section and plan inserts. The project manager provided the teamsome lead time by giving the bulk of what was done to word processing to begin their work.

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THE SCHEDULE NETWORK DIAGRAM TEMPLATES (SNT) are standardized, and used toexpedite preparation of networks of project schedule activities (such as projects with

identical deliverables). Portions of a project schedule network diagram are subnetworks, or

fragment networks.

THE SUBNETWORK TEMPLATES are useful when the project includes several identical, ornearly identical, deliverables, such as floors, layers, levels, etc.

ACTIVITY ATTRIBUTES are sequencing outputs used for project schedule development.

They are also used for selecting, ordering, and sorting planned schedule activities withinreports. They are updated to include the defined logical relationships and any associated

leads and lags.

REQUESTED CHANGES are activity sequencing outputs that are the result of a divided orredefined schedule activity, or an adjusted lead or lag.

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Estimate Activity Resources

THE ACTIVITY RESOURCE ESTIMATING PROCESS allows the project manager and team toeffectively estimate the type and quantity of necessary resources.

ESTIMATING SCHEDULE ACTIVITY RESOURCES involves determining what, when, and howmuch of human resources, equipment, and materials will be available to perform project activities.Labor that lacks knowledge or experience, limited or unusable equipment, or lack of stockpiledmaterials will incur additional time and/or cost.

ORGANIZATIONAL PROCESS ASSETS provide policies of the performing organization regardingstaffing, equipment and supply rental or purchase. Historical data regarding what resources were

used on similar past projects can be helpful.

ACTIVITY ATTRIBUTES developed during the activity definition process provide the primary datainput used in estimating resources required for each schedule activity in the activity list. Activitiesinclude project schedule development, as well as selecting, ordering, and sorting planned scheduleactivities.

INFORMATION ON AVAILABLE RESOURCES is used for estimating the resource types. Theproject manager also considers locations, human resources, and what will be needed duringvarious project phases. Companies, trade organizations, and agencies routinely publish updatedproduction rates and unit costs for resources in particular geographic areas. These are goodsources for the latest information on labor trades, materials, techniques, and equipment.

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Estimate Activity Resources cont.

Tools & Techniques Used To Estimate Activity Resources

EXPERT JUDGEMENT is required to effectively assess resource-related inputs to the activityresource estimating process. This does not automatically mean that the project manager should

exclusively perform this process. Any group or person specialized in resource planning and

estimating can provide such input.

ALTERNATIVE ANALYSES examine schedule activities that have several methods forcompletion. The analyses generate the "best" alternative considering the project and resources

available.

PROJECT MANAGEMENT SOFTWARE helps plan, organize, and manage resource pools anddevelop resource estimates. Depending on how sophisticated the program is, resource

calendars, breakdown structures, resource availability and rates can be obtained.

BOTTOM-UP ESTIMATING allows the project manager to decompose work within theschedule activity into more detail. The needs of each lower, detailed piece of work areestimated. These estimates are aggregated into a total quantity for each of the schedule activity

resources.

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Estimate Activity Resources cont.

EXPECTED OUTPUT FROM PERFORMING THE ACTIVITY RESOURCE ESTIMATING

PROCESS includes identification and description of the types and quantities of resourcesrequired for each schedule activity in a work package.

An output of activity resource estimating is the creation of a RESOURCE BREAKDOWN

STRUCTURE (RBS). A resource breakdown structure (RBS) is a hierarchal structure ofresources (by resource category and type) used in resource leveling schedules to develop

resource-limited schedules.

THE COMPOSITE RESOURCE CALENDAR for the project documents when personnel ormaterials can be active or are idle, and when resource-specific holidays and resource availability

periods occur.

REQUESTED CHANGES are a result of additional or deleted planned schedule activities on theactivity list.

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Estimate Activity Durations cont


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Estimate Activity Durations cont.

THE DURATION ESTIMATE is considered to be progressive since it becomes more detailedand precise as data becomes available and the accuracy of duration estimates improve.

A primary consideration when estimating the number of work periods required to complete aschedule activity is the elapsed time required for the specific type of work.

AN ORGANIZATIONS DURATION ESTIMATING DATABASE is the best referenceinformation to use for estimating activity duration when activity durations are not driven by theactual work content. Organizations involved in the project may maintain duration estimatingdatabases and other historical reference data that can be useful in estimating activity durations.

Assumptions and constraints from the project scope statement are considered when estimatingactivity duration schedules.

An example of an assumption is the length of the project reporting periods, which can dictatemaximum scheduled activity duration.

An example of a constraint on schedule activity durations would be document submittals,reviews, and similar non-deliverable schedule activities, which have frequencies and durationseither specified by contract, or within the performing organization's policies.

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INEFFICIENCY caused by lack of adequate quantities or skills or materials, equipment, andlabor/personnel, will significantly influence the duration of most activities.

THE RESOURCE CALENDAR developed as part of the activity resource estimating process

includes: the availability, capabilities and skills of human resources

the type, quantity, availability, and capability of equipment and materialresources

THE RISK REGISTER has information on identified project risks. These risks must be consideredwhen producing estimates of activity durations, or when activity durations for risks must be

adjusted.

COMPLETED ACTIVITY COST ESTIMATES can be developed to provide estimated resourcequantities for each schedule activity in the project activity list.

Tools & Techniques Used to Estimate Activity Durations

DURATION ESTIMATES ARE MORE ACCURATE AND LESS RISKY WHEN: there is expert judgment

there is past duration estimate information

there is historical information

recommended maximum activity durations from similar past projects are applied

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Estimate Activity Durations cont.Project teams can choose to incorporate additional time into the project schedule.

These additions are referred to as:

buffers

contingencies

reserves

time reserves (amounts of time added to the schedule to

compensate for recognized schedule risk).

THE CONTINGENCY RESERVE may be a percentage of estimated activity duration, a fixednumber of work periods, or may be developed by quantitative schedule risk analysis.

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Develop Schedule

SCHEDULING is essentially the converting of the project action plan into a functioning

timetable which provides the basis for monitoring and controlling the project.

Not all project activities need to be scheduled in the same level of detail.

SCHEDULE DEVELOPMENT is an interactive process that helps determine planned projectstart- and end-dates. It continues throughout the project as work progresses, the project

management plan changes, and anticipated risk rises and falls.

SCHEDULE DEVELOPMENT analyzes activity component constraints, such as those thataffect:

activity sequences

durations

resource requirements

schedules

THE PROJECT SCHEDULE is created as a result.

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Develop Schedule

TIME CONSTRAINTS, which must be considered during schedule development include:

imposed start- and end-dates project stakeholder, customer, and/or sponsor milestone

requirements

SCHEDULE NETWORK ANALYSIS is a scheduling technique that employs a schedulingmodel and various analytical techniques to generate the project schedule.

Tools & Techniques Used To Develop Schedules

THE CRITICAL PATH METHOD (CPM) (below) scheduling technique is designed tocontrol project time and cost using estimated activity time. It calculates theoretical early

start and finish dates, and late start and finish dates. It performs forward pass analysis and

backward pass analysis through the project schedule network paths.

The critical path is the longest path through the network diagram.

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Develop Schedule cont.

PATH 1 A-D-H = 1+3+4 = 8 days

PATH 2 B-E-H = 2+5+4 = 11 daysPATH 3 B-F-I = 2+5+2 = 9 days

PATH 4 C-G-J = 3+7+3 = 13 days

The critical path of the project (below) is PATH 4

1

4

2

7

3

5

86

A=1

B=2

C=3

D=3

H=4E=5

F=5

G=7

J=3

I=2

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Develop Schedule cont.THE SCHEDULE COMPRESSION TECHNIQUE meets schedule constraints and imposeddates or other schedule objectives by shortening the project schedule without changing the

project scope.

FAST-TRACKING is a schedule compression technique that schedules normally sequentialactivity phases so they will be performed in parallel. The project manager must recognizethe increased risk and rework associated with this technique.

CRASHING is a schedule compression technique where cost and schedule tradeoffs areanalyzed to obtain the greatest amount of compression for the least incremental cost.

THE WHAT-IF SCENARIO analysis compares different scenarios such as: delaying a majorcomponent delivery, extending specific engineering durations, or introducing externalforces.

If the project manager combines deterministic and probabilistic approaches to determineschedule risk, and then adds duration buffers that are non-work schedule activities, the

project manager is implementing the CRITICAL CHAIN METHOD of schedulecompression. The focus is directed toward managing the buffer activity duration andresources applied to planned schedule activities, rather than on managing the total float ofnetwork paths.

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pA BAR CHART (GANTT CHART) (below) is a graphical representation of planned andactual progress for a number of project tasks using horizontal lines, or bars. It is helpful inexpediting sequencing, reallocating resources among tasks, and monitoring progress of allprimary and secondary tasks.

MILESTONE CHARTS exclusively identify the scheduled start or completion of majordeliverables and key external interfaces.

TASK

MAY 6 MAY 13 MAY 20 MAY 27

S M T W TH F S S M T W TH F S S M T W TH F S S M T W TH F S

A

B

C

D

E

F

G

H

I

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Control Schedule

SCHEDULE CONTROL is performed by determining the current status of the project

schedule and including updates about its changes. With this information, schedule controlgoverns factors influencing changes that impact the schedule, and also formal schedule

changes.

TIME MANAGEMENT SCHEDULE CONTROL is the task of controlling

project schedule changes.

Planning performed by the project management team precedes the time management

process, which produces a SCHEDULE MANAGEMENT PLAN.

THE SCHEDULE MANAGEMENT PLAN is intended to establish criteria and a

format for developing and controlling the project schedule.

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Chapter 5

Project Cost Management

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Cost Management Overview

PROJECT COST MANAGEMENT consists of processes necessary to ensure the project teamcompletes a project within the approved budget. It includes processes which:

estimate costs budget costs

control costs

PROJECT COST MANAGEMENT is primarily concerned with the costs of resources necessaryto complete the project. It also considers how project cost decisions involving using,maintaining, and supporting the product , service, or result impact the project.

LIFE-CYCLE COSTING is the broad view of project cost management that considers the short-and long-term impact cost of using, maintaining, and supporting the end-product decisions.

THE COMBINED PROCESS OF LIFE-CYCLE COSTING AND VALUE ENGINEERING:

reduces cost and execution time

improves project deliverable quality and performance

improves overall decision-making

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Cost Management Overview cont.

THE COST MANAGEMENT PLAN establishes:

specific organizational procedures links precision levels

units of measure

control thresholds

earned value management (EVM) rules

reporting formats

process descriptions

THE CONTROL ACCOUNT (CA) is the WBS component used for project cost accounting.Each CA is assigned a code or account number that links directly to the performingorganization's accounting system.

CONTROL THRESHOLDS are various thresholds for costs or other indicators that are

included in the cost management plan. Thresholds are typically shown as deviations fromthe baseline plan.

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COST ESTIMATING involves developing an estimate of the costs of needed resources,

including:

identifying and considering various costing alternatives

determining if expected savings can offset the cost of the additional work

COST ESTIMATES are expressed in units of currency, units of measure, and time such asstaff hours or days, or equipment operation. Cost estimate units facilitate comparisons

within and across projects.

COSTS FOR SCHEDULE ACTIVITIES are estimated for all resources and include: labor

materials

equipment

service and facilities

an additional inflation allowance or contingency cost

When approximating costs of resources needed to complete each schedule activity, the

estimator should consider possible causes of variation of cost estimates, including risks.

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WHEN CREATING A PROJECT COST ESTIMATE, the project manager should consider:

enterprise environmental factors such as marketplace conditions and

commercial databases containing cost information cost estimating policies, templates, and project files

the project scope statement

WBS and WBS dictionary

the risk register

the project schedule and staffing management plans

Existing formal and informal cost estimating policies and procedures are considered in

developing the cost management plan, selecting the cost estimating tools, and monitoring

and reporting methods to be used.

THE PROJECT SCOPE STATEMENT describes :

the business needs

justification requirements

current boundaries, constraints, and assumptions

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One of the most common constraints for many projects is a limited project budget. Otherconstraints involve:

delivery dates

available skilled resources organizational policies

THE PROJECT MANAGEMENT PLAN provides subsidiary plans that direct costmanagement planning and control.

The type and quantity of resources and amount of time applied to complete the work are

primary factors in determining project cost. SCHEDULE ACTIVITY RESOURCES are keyinputs to this process.

Schedule activity durations affect cost estimates that have time-sensitive and time-relatedcosts. Some of these costs include:

union labor with expiring collective bargaining agreements

materials subject to seasonal cost fluctuations

time-related field overhead

A GENERAL COST ESTIMATING RULE:When the project experiences a negative risk event, the cost of the project will almost always increaseand delay the schedule.

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Tools & Techniques Used To Create The Cost Estimate

ANALOGOUS COST ESTIMATING uses information from similar past projects and expert

judgment. It is typically less costly, but also less accurate, than other cost estimatingtechniques. It is frequently used to estimate costs when there is a limited amount of detailedinformation about a project.

UNIT COST PRICES for each resource estimate may be determined:

by requesting and comparing price quotes

by obtaining data from commercial databases or data from published seller price lists

BOTTOM-UP ESTIMATING involves estimating the cost of individual work packages orschedule activities with the lowest level of detail. Cost is summarized for reporting andtracking.

PARAMETRIC COST ESTIMATING produces the highest degree of accuracy. It utilizesstatistical relationships between historical data and the targeted variable (required labor

hours, square footage, lines of software code, etc.)

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CONTINGENCY RESERVES are estimated costs to be used at the discretion ofthe project manager. Reserves are used to deal with unknowns that can impact

the project scope and cost baselines.

THE ACTIVITY COST ESTIMATE is a quantitative assessment of likely resource costsrequired to complete schedule activities.

Cost estimating outputs include:

Cost estimates of activities

The basis of the estimates Updates to project documents

SUPPORTING DOCUMENTATION should provide a complete overview of how the costestimate was derived. Supporting documentation should include:

how the estimate was developed, including assumptions and constraints

indication of the range of possible estimates for expected cost Level of confidence for final estimate

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