PROJECT MANAGEMENT

PROFESSIONAL

By Anita Myana, MBA, MSc, PMP, ACP, PRINCE2 Prac, PRINCE2 Agile Prac,OCP, ASM, ASPO, DASSM…

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Certified Associate in Project
Management (CAPM)

By Anita Myana, MBA, MSc, PMP, ACP, PRINCE2 Prac, PRINCE2 Agile Prac,OCP, ASM, ASPO, DASSM…

2
Processes in Traditional Project Management

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Feasibility Study
● Opportunity Cost
● Payback period
● Net Present Value
● Internal Rate of Return
● Return on Investment
● Cost benefits ratio

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Business Case and Benefits Management Plan
●

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Business Case and Benefits Management Plan
Business Case:
● Justification for the project
● Target benefits
● Feasibility study details
● Cost benefit analysis
● Various options to implement
● Risks and benefits

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Business Case and Benefits Management Plan
Benefits Management Plan:
● Target benefits
● Strategic alignment
● The timeframe for realizing benefits
● Benefits owner
● Metrics
● Assumptions and
● Risks

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Project Integration Management
● Addresses all elements of the project
● Project manager carries the
responsibility

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Develop Project Charter
● Created by Sponsor
● Formally authorizes the existence of the project
● Provides authority to Project Manager
● High-level information about the project
○ High-level Scope
○ High-level risks
○ High-level stakeholders
○ High-level assumptions
○ And more high-level information..

● Tools and techniques:

○ Meetings; Brainstorming; Focus groups
○ Expert judgement
○ Data gathering techniques 9
Develop Project Management Plan
Following tools and techniques are used for
creating the plan:

● Data gathering techniques:

○ Brainstorming:
○ Focus groups
○ Interviews
○ Checklists:
● Interpersonal and Team Skills

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Develop Project Management Plan
● Team may refer charter to create
project management plan
● Consolidated document
● Consists of
○ component plans
○ subsidiary plans
○ Baselines info
○ Development approach
○ Project Life cycle:

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Develop Project Management Plan

Scope Management plan Change Management plan

Requirements Management plan Configuration Management plan

Schedule Management plan Performance measurement baseline

Cost Management plan Project life cycle

Resource Management plan Development approach

Communications Management plan Management reviews

Quality Management plan etc.

Risk Management plan

Procurement Management plan

Stakeholder Management plan

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Develop Project Management Plan
● Performance Measurement Baseline
○ Scope baseline
○ Schedule baseline
○ Cost baseline

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Direct and Manage Project Work
● Executes the planned project activities
● Creates the deliverables
● Maintains various project documents

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 Direct and Manage Project Work
Activity List Activity Attributes
Project documents:
Assumption log Basis of Estimates

Change log Cost Estimates

Cost forecasts Duration estimates

Issue log Lessons learned register

Milestone list Physical resource assignments

Project calendars Project Communications

Project Schedule Project Schedule Network diagram

Project Scope Statement Project Team Assignments

Quality Control Measurements Quality Metrics

Quality Reports Requirements Documentation

Requirements Traceability Matrix Resource breakdown structure

Risk Register Risk Report etc.

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Direct and Manage Project Work
● Project Management Information
System (PMIS)
○ Scheduling system
○ Configuration management system
○ Change management system
○ Work authorization system
○ Reporting on KPIs
○ And more organizational systems

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Direct and Manage Project Work
● Work Performance Data
○ Actual time consumed is 20 hrs
● Work Performance Information
○ Analysis
○ Planned time - 15 hrs
○ Actual time - 20 hrs
○ Variance - 5 hrs
○ Project is not going good
● Work Performance Reports
○ Visual reports
○ Graphs
○ Visual signals

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Manage Project Knowledge
● Explicit Knowledge
● Tacit Knowledge
● Add to Organizational Process Assets

Source: Linkedin 18
Monitor and Control Project Work
● Apply various analytical techniques for
assessing the performance
● Data analysis techniques:
○ Cost-benefit analysis
○ Earned Value analysis
○ Variance analysis
○ Trend analysis
○ Root cause analysis

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Monitor and Control Project Work
● Corrective Action
● Preventive Action
● Defect Repair
● Change might modify a project baseline

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Perform integrated change control

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Plan Scope Management
● Product Scope
● Project Scope
● Scope management in waterfall project
● Scope management in Agile project
● Scope baseline
● Scope management Plan
● Requirements Management Plan

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Plan Scope Management
● Scope complexity
● Technical uncertainty
● Decide the development approach
● Define project life cycle

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Collect requirements
● Predictive project
○ Requirements are clear
○ Stable
○ fixed

● Adaptive projects
○ Requirements are unclear
○ Ambiguous
○ Uncertain
○ Unstable
○ Complex

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Collect requirements
● Requirements elicitation techniques
○ Brainstorming
○ Meeting
○ Focus groups
○ Workshops
○ Questionnaires/Surveys
○ Interviews
○ Prototypes

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Collect requirements
● Decision making technique:
○ Voting
■ Unanimity
■ Majority
■ Plurality
○ Autocratic decision making
○ Multi-criteria decision analysis
● Data representation techniques:
○ Affinity Diagrams
○ Mind maps
○ Nominal group technique

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Collect requirements
● Prototyping techniques
○ High fidelity:
■ Throwaway prototypes
■ Evolutionary prototypes
○ Low fidelity:
■ Wireframes
■ Mock-ups

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Collect requirements
● Requirements Traceability Matrix

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Define Scope
● Product Analysis
● Project Scope statement
○ Project Scope
○ Product scope
○ Assumptions
○ Constraints
○ Deliverables
○ Acceptance Criteria
○ Project exclusions
● Project Scope statement is different
from Project Charter

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Create WBS (Work Breakdown Structure)
● Work Breakdown Structure
● Hierarchical tree structure
● Decomposition
● Work packages
● Control Accounts

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Create WBS (Work Breakdown Structure)

Source: https://www.chegg.com/

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 Create WBS (Work Breakdown Structure)
WBS Dictionary

Source: https://www.chegg.com/

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Scope Baseline
● Project Scope Statement
● WBS
● WBS Dictionary
● Control Accounts
● Work packages

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Validate Scope
● Validation using Acceptance Criteria
● Approval or sign-off by customer

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Control Scope
● Any changes to Scope baseline
● Follow integrated change control
process
● Avoid Scope Creep

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Plan Schedule Management
● Schedule Management Plan
Tells how to manage the schedule of the
project
○ Schedule model
○ Iteration/release length
○ Level of accuracy
○ Units of measure
○ Control thresholds
○ Units of performance
measurement
○ Reporting formats and frequency

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Define Activities
● By referring the WBS and work
packages, we derive the activity list
● Each work package is decomposed in to
work activities
● Decomposition
● Rolling wave planning
● Artifacts
○ Activity list
○ Activity attributes
○ Milestone lists

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Sequence Activities
● Precedence Diagramming method
(or activity on node method)

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Sequence Activities
● Dependency types:
○ Mandatory
○ Discretionary
○ External
○ Internal

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Sequence Activities

● Relationships:
○ Finish to start
○ Finish to Finish
○ Start to Start
○ Start to finish

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 Sequence Activities

PREDECESSOR SUCCESSOR

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Sequence Activities
● Leads and lags

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Estimate Activity Duration
● Law of diminishing returns
● Resource availability and skills
● Technology
● Procrastination or Parkinson’s law

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Estimate Techniques
● Estimation techniques
● Analogous Estimation or Top-down
● Parametric Estimation
● Bottom-up estimation
● Three-point estimation

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Estimate Activity Duration
● Project artifacts created:
○ Duration estimates
○ Basis of estimates

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Develop Schedule
● Resource optimization techniques
○ Resource leveling
○ Resource Smoothing
● Schedule compression techniques
○ Fast-tracking
○ Crashing

● Critical path method

● Modelling techniques

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Develop Schedule

● Schedule compression techniques

○ Fast-tracking
○ Crashing

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Develop Schedule
● Resource optimization techniques
○ Resource leveling
○ Resource Smoothing

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Schedule baseline
● Project Artifacts created:
○ Project Schedule
○ Schedule baseline

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Control Schedule
● In Waterfall project
○ Monitor and Control the schedule
By using
● Performance reviews
● Trend analysis
● Variance analysis

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Project Cost Management
● Cost of:
○ physical resources and
○ human resources
● Different stakeholders estimate in
different ways
● Decision making on recurring costs
● Financial techniques used:
○ Net present value
○ Return on investment
○ Payback period

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Plan Cost Management
● Tailoring
● Cost management plan Is a component of
Project Management Plan
● Plan tells how the costs will be managed
● Cost Management Plan:
○ Processes
○ Tools and techniques
○ Units of measure
○ Level of precision
○ Level of accuracy
○ Control thresholds
○ Rules of performance measurement
○ Reporting formats
○ and more details 52
Estimate Costs
● Costs of
○ Physical resources
○ Human resources
● Cost of Project Manager’s time
● Cost of quality
● Expenses for office spaces
● Overhead costs

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Types of Costs
● Direct Costs
● Indirect Costs
● Variable Costs
● Fixed Costs

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Cost Estimation Techniques
● Analogous estimation method
● Parametric estimation
● Bottom-up estimation
● Three-point estimation technique
○ Triangular distribution
○ PERT duration

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Three-point estimation technique
● Three-point estimation technique

Triangular distribution PERT duration (Beta

(Simple Average) Distribution/ Weighted
Avg)
tE = (tO + tM + tP)/3 tE = (tO + 4 tM + tP)/6

tE -> Expected Time tE -> Expected Time

tO -> Optimistic tO -> Optimistic
tM -> Most likely tM -> Most likely
tP -> Pessimistic tP -> Pessimistic

PERT - Program Evaluation and Review Technique

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Determine Budget
● Bottom-up estimation (Cost
aggregation)

Source: PMBOK Guide 57

Funding limit reconciliation
● The expenditure of funds should be
reconciled with any funding limits
● If not done, might lead to re-scheduling
of tasks

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Cost baseline
● Cost baseline
● Project Budget

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Cost Aggregation
● Aggregate the lower level components
to get the estimate for higher-level
components

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Control Costs
● Use various methods for cost
performance analysis:
○ Variance analysis
○ Earned value management (EVM)
○ Trend analysis
○ Reserve analysis

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Control Costs
● Cost Performance
● Performance measurement baseline
● Cost changes
● Manage Cost reserves
● Use EVM to get Estimate At Completion
● Obtain additional funding when needed
● Re-estimate when needed

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Plan Quality Management
● Quality means Meeting requirements
● Quality -> functionality
● Grade -> general category
● Low quality product - Not acceptable
● Low grade product - acceptable
● Check at work package or activity level
● Change to project constraints
● Tailoring -
○ Quality policies, procedures
○ Tools and techniques
○ Standards Regulatory Compliance
○ Methods
○ Templates
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Quality Planning - Tools and Techniques
● Tools and techniques used:
○ Meetings
○ Expert judgement
○ Cost of Quality
○ Cost benefit analysis
○ Decision making -
■ Multi-criteria decision analysis
○ Data representation
■ Flow charts
■ Matrix diagram
■ Logical Data models
■ Mind maps
○ Test and Inspection methods
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Quality Management Plan
● Is a component of Project Management Plan
● Quality Management Plan tells how to manage
quality throughout the project life cycle
● Quality Management Plan
○ Quality standards
○ Quality objectives
○ Quality roles and responsibilities
○ Project deliverables and processes subject
to quality review
○ Quality control and Quality management
activities
○ Quality tools
○ Major procedures
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Quality Metrics
● Quality Metrics
○ Failure rate
○ No. of defects identified per day
○ Errors per lines of code
○ No. of server downtimes
○ Customer Satisfaction Scores

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Quality Management Terms
● Kaizen
● Just-in-time
● Prevention
● Inspection
● Sampling
● Tolerances

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Deming’s Cycle (Earlier The Shewhart cycle)

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 Cost of Quality

Source: PMBOK Guide

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Manage Quality
● Also known as ‘Quality Assurance’
● Are we following the
○ Policies
○ Processes
○ Procedures
○ Metrics
● Are there any gaps?
● Are we Conforming to requirements?
● Are we compliant?

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Quality Management Tools
● Checklists
● Alternative analysis
● Document analysis
● Process analysis
● Root cause analysis

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Affinity diagram
● Used for quality management and also
in other areas of project management
● Grouping the similar ideas under
common category
● Can be used in multiple instances
○ Collecting the requirements

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Histogram
● Used for quality management
● Graphical representation of numerical
data
● Can be used for:
○ Ranking of cause of defects
○ No. of times process is
non-compliant etc.

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Cause and effect diagram
● Used for quality management
● Also known as
○ Fish-bone analysis
○ Ishikawa diagram
○ Why-why analysis
● Identify the root cause of the defect

Source: https://en.wikipedia.org/

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Pareto chart
● Used for quality management
● Also known as
○ 80/20 principle
○ Vilfredo pareto principle
● Is a histogram
● 80% of project problems are because of
20% of root causes

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Scatter plot
● Used for quality management
● Study the relationship between two
variables of a project
● Strong Correlation
● Weak Correlation
● No Correlation

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Design for X
● Used for quality management
● Systematic approach while designing
the product to improve X factor
● X can be reliability, cost, safety, security,
reliability or quality

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Problem Solving
● Used for quality management
● Step by Step approach towards solving
any problem in the project

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Audits
● Most commonly used method for
managing quality
● Structured Independent process
● Compliant with org policies, processes
● May be scheduled or random
● Identify:
○ good practices
○ best practices
○ Non-Conformity gaps
○ Improvement areas

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Quality Improvement Methods
● Six sigma
● Total Quality Management
● Plan-Do-Check-Act

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Quality Reports
● Can be graphical, numerical or
qualitative
● Might include
○ Recommendations
○ Observations
○ Improvement areas
○ Rework
○ Defect repair
○ Corrective action
○ Preventive action

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Control Quality
● Monitor and control quality
● Inspection
● Testing and Product evaluation
● Checksheets
● Performance reviews
● Root cause analysis
● Cause and effect diagram
● Scatter plot
● Why-why Analysis

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Quality Control Tools
● Data gathering tools
● Sampling
● Checklists
● Checksheets
● Questionnaires /Surveys
● Control Charts

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Checklists
● Quality CheckList
● Acceptance Criteria

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CheckSheets
● Also known as Tally Sheets
● Used for representing the defect data

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Control Charts
● To assess whether the process is stable
● Control Limits - defined by process
● Specification Limits - by customer
● Mean
● Out of Control
● Rule of Seven
● Assignable cause/ Special cause variation

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Control Charts

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Plan Resource Management
● Manage
○ Physical Resources
○ Human Resources
● Identifying the resources
● Acquire the resources
● Managing the resources
● Motivating and empowering
● Communicating effectively

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Resource Management Terms
● Lean
● Kaizen
● Just-In-Time

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Emotional Intelligence

Source: Harvard Business Review

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Emotional Intelligence

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Physical Resources Documentation
● Equipments needed
● Material needed
● Setup needed
● And more physical resources

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Hierarchical Charts Used
Following charts can be used for
Resource identification:

● Work Breakdown structure (WBS)

● Organization breakdown structure(OBS)

● Resource breakdown structure

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RACI Chart
● Responsibility Assignment Matrix (RAM
● RACI (Responsible Accountable
Consulted and Informed)
● Assign roles and responsibilities
● Reduce communication gaps
● Manage work well

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Resource Management Plan
● Is a component of Project Management Plan
Resource Management Plan
● Tells how do we manage resources in the
project
● Consists of details such as:
● Roles and responsibilities
● Skills, Competencies
● Methods for:
○ resource identification
○ managing the resources
○ resource acquisition
○ Developing the team
○ Controlling the resources
○ Motivating the team 95
Team Charter
● Working agreements by team
● Operating guidelines
● Ground rules for the team
● Rules and norms to be followed
● May contain:
○ Team norms
○ Meeting guidelines
○ Conflict management guidelines
○ Communication guidelines
○ Decision-making process
○ And more details

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Estimate Activity Resources
● Estimate the
○ Physical resources
○ Human resources
● Closely related to:
○ Estimate duration
○ Estimate Costs

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Resource Estimation Techniques
● Estimation techniques
● Analogous Estimation or Top-down
● Parametric Estimation
● Bottom-up estimation
● Three-point estimation

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Acquire the Resources
● Acquire the:
○ Physical resources such as setup,
equipments, material etc
○ Human resources
● Get resources
● Hire human resources
● Contracting for resources
● Check for Pre-assigned resources

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 Multi-Criteria Decision Analysis
● Is a Decision making method
● Criteria is developed
● In Analysis, criteria is weighted
accordingly to relative importance
● Option with highest score will be
selected

Availability (in hrs of Cost ($ per Ability (Units of Experience (in

Criteria/ Resources week) hour) work) yrs) Knowledge (1-5) Attitude (1-5) TimeZone (1-5) Total
Resource1 30* 10 20* 9 5*9 4.5*5 4*5 4*9 4*6 627.5
Resource2 45 30 6 5 3 4 3 868
Resource3 25 35 7 4 2 3 5 715
Resource4 35 20 5 6 4 3 2 664
Weight 10 9 9 5 5 9 6

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Pre-Assignment of Resources
● Resources assigned before starting the
project
● These are documented in Project
Charter
● It applies to both
○ Physical resources
○ Human resources

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Types of Teams
● Dedicated Teams
● Part-time
● Partnership
● Virtual Teams

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Colocated Teams
● All team members at the same physical
location
● Improves communications
● Helps build trust
● Colocation can be temporary
● Better collaboration

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Virtual Teams
● Do not meet face to face
● Rely on diff communication forms
● More challenging to manage
● Need a different approach
● Communications Barriers
○ Timezone
○ Language
○ Culture, background etc.
● Communication technologies:
○ Shared portals
○ Video conferencing
○ Audio conferencing
○ Email/Chat
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Develop Team
● Improve competencies
● Improve interactions
● Overall team environment
● Enhance project performance
● Improved teamwork
● Enhanced Interpersonal Skills
● Motivated employees
● Reduced Attrition

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High-Performance Team
● High Performance team can be
achieved by:
● Effective and open Communication
● Team building activities
● Developing Trust
● Managing Conflicts
● Constructive feedback
● Collaborative problem solving
● Collaborative decision making

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Tuckman’s Ladder
● Is a Team Development Model
● Learn different stages of team
development

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Drexler/ Sibbet Team Performance Model
Seven-step Team Performance Model:
Steps 1 to 4 - Creating a project team
Steps 5 to 7 - Project team sustainability and performance
● Step 1: Orientation: answers why. Purpose and mission for the project. Business case,
project charter, kick-off meeting
● Step 2: Trust building: answers the question of who. Who is on the team, the skills and
abilities the person brings; other possible stakeholders
● Step 3: Goal Clarification: answers what. Elaborates high level project information;
Explore stakeholder expectations requirements, acceptance criteria etc.
● Step 4: Commitment: answers how. Team defines the plans to achieve the goals.
● Step 5: Implementation: Higher plans are decomposed into greater level details such as
detailed schedule or backlog
● Step 6: High Performance: After working together for some time, the team reaches a
high level of performance; they do not need oversight, experienced and understand
their goals
● Step 7: Renewal: is the stage of changes; the deliverables, stakeholders, environment,
project team leadership, team membership might change
108
Team Building
● For Team development
● Leader should plan
○ Team building activities
○ Enable to form a cohesive team
○ Improve interaction
○ Improve trust
○ Improve collaboration
○ Engage team members in
ownership of project

109
Recognition and Rewards
● For motivating team resources, we may
apply this method
● Recognition - Praise, appreciation
● Rewards - Tangible benefits

110
Project Performance Appraisals
● For developing the team
● Recognize the team performance
● helping team improve their
performance

111
Motivational Theories
● McGregor’s theory of X and Y (by Douglas
Mcgregor)
● Maslow’s Motivational Theory : Hierarchy of needs
● McClelland Theory of need (or Acquired Needs
Theory)
● Herzberg’s two Factor motivation
● Daniel Pink’s Intrinsic vs Extrinsic motivation(Similar
to Herzberg theory)

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McGregor’s theory of X and Y
● Theory X
● Theory Y
● Theory Z (By Abraham Maslow)

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Maslow’s Motivational Theory

Self-fulfillment, growth, learning

Accomplishment, respect, attention,

appreciation

Love, affection, approval, friends,

association

Security, stability, freedom

from harm
Need for air, water,
food, clothing , shelter
etc.

114
McClelland Theory of need
● Achievement
● Affiliation
● Power

115
Herzberg’s two Factor motivation
● Hygiene factors: (Extrinsic)
○ Working conditions
○ Salary
○ Personal life
○ Relationship at work
○ Security
○ Status
● Motivating agents:(Intrinsic)
○ Responsibility
○ Self-actualization
○ Professional growth
○ Recognition

116
Daniel Pink’s Intrinsic vs Extrinsic motivation
● Extrinsic factors:
○ Working conditions
○ Salary
○ Personal life
○ Relationship at work
○ Security
○ Status
● Intrinsic factors:
○ Autonomy
○ Mastery
○ Purpose

117
Coaching and Mentoring Models

Models:
● OSCAR Model
● Shu Ha Ri
● Dreyfus Model of Skill Mastery

118
OSCAR Model
Outcome

Situation

Choices/consequences

Actions

Reviews

119
Shu-Ha-Ri Model
Comes from Martial arts training:

● Shu - Rules learned and obeyed

● Ha - Detach and break free. Master the skills
● Ri - Go beyond and Transcend. Practitioner can
also lead and teach others

120
 Dreyfus Model of Skill Mastery

rt
Expe
cient
Profi
nt
pete
d va nced Com
A
e g i nner
B
ce
Novi
Increased Committed Committed
Detached Detached
Commitment
commitment commitment Holistic view Analytical
Measured of projects
Follows rules Intuitive
planning
Set priorities 121
Doesn’t have Situational Visionary
Perspective
perspective perspective
of goals
Manage Team
● Track team performance
● Provide timely feedback
● Resolve issues
● Influence team behaviour
● Manage conflicts
● Apply leadership skills
● Manage Risks
● Adjust plans
● Using Issue log

122
Training Coaching Mentoring

Training Short term - between Concepts clearing,

few days to weeks teaching, skills
training

Coaching Quite long term - to help implement the

Few weeks to few skills and practices in
months projects

Mentoring Long term focus Sharing the

experience with the
learner

123
Issue Log
● It is a Project document
● Also known as
○ Issue Register
○ Action items log
● Record problems
● Track issues
● Updated throughout the project

124
Conflict Resolution Techniques
● Withdraw /Avoid
● Smooth/Accommodate
● Compromise/ Reconcile
● Force /Direct
● Collaborate
● Confronting / Problem Solve

125
Expectancy Theory
● Expect to be rewarded for their
accomplishments
● Will remain productive
● Rewards meet their expectation

126
Arbitration
● A neutral party hears and resolves
disputes
● Court of law
● Litigation

127
Control Resources
● Monitoring resource expenditures
● Monitoring resource efficiency
● Identifying issues
● Resolving issues
● Identifying risks
● Managing the changes
● Tools and Techniques used:
○ PMIS
○ Trend analysis
○ Alternative analysis
○ Cost benefit analysis
○ Performance analysis
○ Problem solving
○ Influencing skills
128
Stakeholder Engagement
● Stakeholder
● Identify stakeholders
● Analyze their level of influence
● Stakeholder diversity
● Complexity in stakeholder relationship
● Communication Technologies
● Maintain stakeholders details
● Manage changes
● Focus on communications
● Improve communications
● Improve engagement

129
Stakeholder Engagement in Agile Projects
● High-variability projects
● Active engagement is necessary
● Productive discussions
● Transparency
● Reduces risk
● Build trust
● Support adjustments

130
Identify Stakeholders
❑ Internal Stakeholders:
▪ Employees
▪ Managers
▪ Board of directors
▪ Sponsor
▪ Project Manager etc.

❑ External stakeholders:
▪ Customer
▪ End-user
▪ Supplier
▪ Competitor
▪ Investors
▪ government
▪ Regulators etc.

131
Models for Stakeholders Analysis
● Power vs Interest grid
● Power/Influence grid, or
● Impact/influence grid
● Stakeholder Cube
● Salience Model
● Directions of Influence
● Other tools used:
○ Brainstorming
○ Data Analysis
○ Data Representation techniques

132
 Power vs Interest Grid
Stakeholder Analysis
Example: Power Vs.
Interest Grid Interest
Low Power, High Interest. Highly High Power, High Interest.
engaged in project work Highly involved in project
E.g Team members deliverables
You need to Monitor and engage E.g End users
them, Keep them informed You need to engage them
closely and influence actively
Power
High Power, Low Interest.
Low Power, Low Interest.
E.g Senior management,
E.g Other Project Managers You need to Keep them satisfied
You need to just monitor

133
Stakeholder Cube

source:https://zenlabs

134
Salience Model

135
Directions of Influence
● Upward
● Downward
● Outward
● Sideward

136
Stakeholder Register
● Identification information
● Assessment information
● Stakeholder classification

137
Plan Stakeholder Engagement
● Tools and techniques used:
○ Expert judgement
○ Meetings
○ Data Analysis
○ Stakeholder Engagement
Assessment Matrix

138
Stakeholder Engagement Assessment Matrix
● Engagement levels can be:
○ Unaware
○ Resistant
○ Neutral
○ Supportive
○ Leading

139
Stakeholder Engagement Assessment Matrix
C -> Current engagement level D-> Desired Engagement level

140
Stakeholder Engagement Plan
● Is a component of Project Management
Plan
● Consists of
○ existing and desired levels of
engagement of stakeholders
○ Plan to achieve the desired levels
● Consists of strategies for engaging with
stakeholders effectively

141
Manage Stakeholder Engagement
● Meet Stakeholders needs
● Meet the expectations
● Address the issues
● Increase the support
● Minimize the resistance
● Apply negotiations skills
● Apply communication skills
● Interpersonal and team skills
● Meetings
● Ground rules

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Monitor Stakeholder Engagement
● Assess the stakeholder engagement
levels continually
● Use Stakeholder engagement
assessment matrix
● Assess effectiveness and efficiency of
stakeholder engagement activities
● Apply decision making techniques
● Apply data analysis techniques

143
Measuring the Stakeholder Satisfaction
● Net Promoter Score
● Mood Chart
● Morale

144
Project Communications Management
● Dimensions of Communications can be:
○ Written form
○ Oral form
○ Formal
○ Informal
○ Official
○ Unofficial
● Information exchanged through:
○ Facial expressions
○ Gestures
○ Tone of voice

145
Communication Types or Forms
● Formal Written
● Formal Verbal
● Informal Written
● Informal Verbal

146
5 C’s of Written Communications
● 5 C’s of Written Communication:
a. Correct grammar and spellings
b. Concise expression and elimination of
excess words
c. Clear purpose and expression
d. Coherent logical flow of idea
e. Controlling flow or words and ideas

147
Communication Technologies
● Audio-conferencing
● Video-conferencing
● Email
● Chat
● Shared portal
● Sharepoints
● Collaborating tools

148
Communication Models

149
Communication Methods
● Interactive e.g. team
meeting or conferences
● Push e.g Newsletters,
company announcements
● Pull e.g. pulling data from
Shared portals

150
Plan Communications Management
● Tools and techniques used:
○ Communication types or forms
○ Communication technologies
○ Communication model
○ Interpersonal and team skills
○ Stakeholder engagement
assessment matrix

151
Communications Management Plan
● Is a component of Project Management
Plan
● Consists of:
○ Stakeholder communication
requirements
○ Language to be used
○ Content to be shared
○ Format to be used
○ Reason for sharing the information
○ Timeframe or frequency
○ Person responsible
○ And more details

152
Manage Communications
● Ensuring timely and appropriate
○ collection,
○ creation,
○ distribution,
○ storage,
○ retrieval,
○ management,
○ monitoring
○ and the ultimate disposal
● of project information

153
Effective Communication - Tools
● Tools used for effective communication:
● sender -receiver model
● Presentation styles
● Medium
● Writing styles
● Meetings management
● Active listening
● Facilitation etc.

154
Communication Barriers
● Noisy surroundings
● Distance between those trying to
communicate
● Improper encoding of messages
● Language
● Culture

155
Osmotic Communication
● Means of receiving information without
direct communication by overhearing
the conversation
● Possible with colocated teams

156
Caves and Common
● Caves - people need quiet place to
concentrate and work
● Common - Team needs open areas to
collaborate e.g. Social areas

157
Project Reporting
Performance Reports:
● Status Reports
● Progress Reports
● Trend Report
● Forecast Report
● Variance Report
● Earned Value Report
● Lessons learned documentation

158
Monitor Communications
Tools and techniques used:
● Meetings
● Expert judgement
● Project Management Information
System

● Monitor for increase in the number of

stakeholders
● Communications channels
● Communications Complexity
● Change communications approach
● Change control procedure

159
Communications Complexity
● Communication channels are different
from communication methods,
technologies and communication
models
● Communications channels indicate
Communications complexity
● Communication channels = n (n-1) / 2,
where n = no. of stakeholders
● As the no. of stakeholders increase,
communications become more and more
complex

160
Communications Complexity - Tips
● Formula for communications channels
is:
n (n-1)/2
● As the people increase, channels will
increase
● Increase in channels indicate increase in
communications complexity

161
 Communications Complexity - Tips

Communication channels

When n=2, no. of channels are 1

When n=3, no. of channels are 3
When n=4, no. of channels are 6
When n=5, no. of channels are 10

162
Communications Complexity - Tips
● In Problems, Sometimes
● Need to calculate the number of
channels after adding more people
● Need to calculate the difference in the
no. of channels on adding more people

163
 Communications Complexity - Problem 1
● You had four stakeholders in your project earlier. A new stakeholder has been added with
whom you also need to communicate. How many communication channels do you have
now?

Initially, No. of stakeholders = 4

No. of communication channels were =6

On adding one more stakeholder, Tot no. of stakeholders = 5

No. of communication channels = 5(5-1) /2 = 10

Now, we hv 10 communication channels

164
 Communications Complexity - Problem 2
● You had four stakeholders in your project earlier. A new stakeholder has been added with
whom you also need to communicate. How many communication channels got added?

Initially, No. of stakeholders = 4

No. of communication channels were =n(n-1)/2 = 4(4-1)/2 = 6

On adding one more stakeholder, Tot no. of stakeholders = 5

No. of communication channels = 5(5-1) /2 = 10

Now, the no. of new channels added = 10 -6 = 4

So, 4 new channels got added

165
What is a Risk?
● Risk is an uncertainty related to future
● Risk might have positive or negative
impact on project
● Positive risks - Opportunities
● Negative Risks - Threats

166
Project Risk Management
● Individual Project risks
● Overall Project Risks
● All the projects are risky irrespective of
their size, industry or domain

167
Project Resilience
● Handling emergent risks
● Recovery plans
● Backup plans
● Business continuity plans
● Early warning signals
● Empowered team
● Proactivity
● Flexibility
● Coping ability
● Persistence

168
Integrated Risk Management
● Risks need to be managed at
○ Project level
○ Program level
○ Portfolio level
○ Organization level

169
Factors considered for Risk Management
● Project Size
● Complexity
● Project Importance
● Development Approach
● And more..

170
Risk Management Terms
● Uncertainty
● Threats
● Opportunities
● Risk Appetite (or Risk Tolerance)
● Risk Threshold
● Risk Averse
● Risk Neutral
● Risk seekers
● Business Risk
● Pure Risk
● Event risks
● Non-event risks: Variability risks and
Ambiguity risks
171
Plan Risk Management
● Belong to Planning process group
● How to conduct risk management
● What tools to apply
● Which techniques to apply
● Approach for risk management
● Tools and Techniques for planning:
○ Meetings
○ Expert judgement
○ Data Analysis

172
Risk Management Plan
● Risk strategy
● Methodology
● Roles and responsibilities
● Funding
● Timings / Frequency
● Risk Categories
● Stakeholder risk appetite/thresholds:
● Definition of probability and impact:
● Reporting formats
● Tracking

173
Risk Breakdown Structure

174
Identify Risks
● Identifying individual and overall
project risks
● Documenting the risk information
● Who all should be involved for risk
identification?
● Frequency of risk identification

175
Identify Risks - Tools and Techniques
● Tools and Techniques:
○ Expert judgement
○ Data Gathering Techniques
○ Prompt Lists
■ PESTLE
■ TECOP
■ VUCA
○ Meetings
○ Interpersonal and team skills
○ Document analysis
○ Root cause analysis
○ SWOT Analysis
○ Assumption and Constraint analysis
176
Risk Register
● List of identified risks

● Potential risk owners

● Potential risk responses

● Root causes of risks

● Updated risk categories

● Detailed information about all risks of

project

177
Risk Report
● Sources of overall project risk

● Summary information of identified risks

● is generated and disseminated to

stakeholders

● is used for reporting purpose

178
Risk Register Vs Risk Report
● Risk Register is a grid consisting of
detailed information about risks
● Risk report consists of summary
information and is used for reporting
communication purpose

179
Qualitative Risk Analysis
● Process of prioritizing individual project
risks for further analysis
● Ranking the risks
● Focus on high-priority risks

180
Prioritizing risks based on risk parameters
● Dormancy
● Manageability
● Controllability
● Strategic impact
● Detectability
● Connectivity
● Propinquity

181
Probability and Impact Matrix
● Define the Probability scales
● Define the Impact scales
● Create a Matrix based on your
organization’s risk appetite

182
 Perform Qualitative Risk Analysis
Probability Scales:

>90% 70% 50% 30% 10%

.9 .70 0.50 0.30 0.1

Very likely Likely Possible Unlikely Very unlikely

Impact Scales:

>80% 40% 20% 10% 5%

0.8 .40 0.20 0.10 0.05

Very high High medium low Very low

183
 Perform Qualitative Risk Analysis
Risk Register:

Sr Desc WP $WP Probab Prob. Impac Impact Overall Severity

no ility value t value

1 XYZ 2.1 10% 0.1 60% 0.4 0.04

2 PQR 3.4 90% 0.9 10% 0.10 0.09

3 ABC 2.2 40% 0.5 20% 0.20 0.10

4 DEF 4.1 50% 0.5 70% 0.80 0.40

5 HIJ 2.4 30% 0.3 4% 0.05 0.02

184
 Perform Qualitative Risk Analysis
Probability and Impact Matrix:

185
 Perform Qualitative Risk Analysis
Risk Register:

Sr Desc WP $WP Probab Prob. Impac Impact Overall Severity

no ility value t value

1 XYZ 2.1 10% 0.1 60% 0.4 0.04 L

2 PQR 3.4 90% 0.9 10% 0.10 0.18 M

3 ABC 2.2 40% 0.5 20% 0.20 0.10 M

4 DEF 4.1 50% 0.5 70% 0.80 0.40 H

5 HIJ 2.4 30% 0.3 4% 0.05 0.02 L

186
Quantitative Risk Analysis
● numerically analyzing the combined effect
of identified individual project risks
● Determine which risk events warrant a
response
● Determine overall project risk
● Determine the quantified probability of
meeting project objectives
● Determine cost and schedule reserves
● Identify risks requiring most attention
● Create realistic, achievable scope, cost or
schedule targets

187
Perform Quantitative Risk Analysis
● Interviews
● Facilitation techniques
● Interpersonal and team skills
● Simulation Techniques
● Sensitivity Analysis
● Decision-Tree Analysis
● Expected Monetary Value

188
Monte-Carlo Analysis
● Is a simulation technique
● Used for quantitative risk analysis
● done using advanced computer program
● Translates uncertainties into impacts on
project
● Can be used for determining cost and
schedule impacts
● Results in a probability distribution

189
Sensitivity Analysis
● A Tornado diagram can be used
● Risks are represented by horizontal bars
● The longest and uppermost bar represents
the greatest risk and progressively shorter
● Shorter bars beneath represent the
lower-ranked risks
● The resulting graph resembles a funnel
cloud or Tornado
● Plz see the graph

190
Expected Monetary Value
● EMV = Probability * Impact
● Used to determined monetary cost
● Can be used to determine delay in
terms of person-days or person-hours
● E.g. If Probability of occuring an event is
10% and if its impact is $ 1000 loss,
then EMV = 10% * 1000 = $ 100
● E.g. If PRobability of occurring an event
is 20% and if its impact is the delay of
45 days,
Then EMV = 20% * 45 = 9 days
191
Decision-Tree Analysis
● Used for Quantitative Risk Analysis
● Decision tree takes into account future
events in making a decision today
● It helps calculate the expected
monetary value in complex situations
● With a decision tree, we could evaluate
the cost or schedule implications

192
Decision-Tree Analysis - Problem

193
Decision Tree Analysis

194
Decision Tree Analysis
● Considers future events
● Implications on cost and schedule
● Expected Monetary Value (EMV)
● EMV = P * I
○ P - Probability
○ I - Impact

195
Perform Quantitative Risk Analysis
Decision Tree Analysis: Question
Perform Quantitative Risk Analysis
Decision Tree Analysis: Question
Perform Quantitative Risk Analysis
Decision Tree Analysis: Question

The EMV of Upgrade is $46M which is greater than the EMV of Build i.e.
$36M, so Upgrade seems to be the better option.
Plan Risk Responses
● Risk Response is an
○ Action Plan
for managing the risks
● Do something to eliminate the threats
before they happen.
● Do something to make sure the
opportunities happen.
● Decrease the probability and/or impact
of threats.
● Increase the probability and/or impact
of opportunities.
● Look for Residual Risks
● Look for Secondary Risks
199
Plan Risk Responses
● Tools and Techniques
● Data gathering: Interviewing
● Interpersonal and Team skills
● Data Analysis:
○ Alternatives analysis
○ Cost-benefit analysis
● Decision Making:
○ Multi-criteria decision analysis
● Strategies for threats
● Strategies for opportunities
● Strategies for overall risks
● Contingent response strategies
● We may select multiple risk response
strategies for a risk
200
Strategies for threats
● Escalate
● Avoid
● Mitigate
● Transfer
● Accept

201
Strategies for Opportunities
● Escalate
● Exploit
● Enhance
● Share
● Accept

202
Plan Risk Responses: Strategies

Positive risks Negative risks

Exploit Avoid
Enhance Mitigate
Share Transfer
Escalate
Accept
Reserve Analysis
● Contingency reserves (For Known
Unknowns)
● Management Reserves (For Unknown
Unknowns)

204
 Calculating Contingency Reserves
Sr. No. Project Data Cost contingency reserve

1 There is 30% probability of delay in the receipt of parts, with a 30% * 9000 = $2,700
cost to the project of $9,000 We need to add $2,700

2 There is 20% probability that the parts will occur $10,000 less 20% * 10,000 = $ 2,000
than expected Subtract $2,000

205
Implement Risk Responses
● By applying various tools and
techniques, implement the action plans
to manage the risks

206
Monitor Risks
● Look for the occurrence of risk triggers
● Monitor residual risks or secondary risks
● Identify new risks and then analyze and plan for them
● Evaluate the effectiveness of risk management plan
● Develop new risk responses
● Collect and communicate risk status
● Determine if assumptions are still valid
● Ensure proper risk management processes are followed
● Submit change requests to integrated change control
● Create database of risks data
● Use contingency reserves whenever needed
● Perform variance and trend analysis
● Update the risk register and risk report
● Close out the risks

207
Project Procurement Management
● Includes the processes necessary for
purchasing goods/services
● Agreements
● Contracts
● Follow all Organizational Procurement Policies
● Buyer - Customer or client
● Seller - Contractor/ Supplier/ Vendor/ Service
provider

208
Centralized/Decentralized Purchasing
● Decentralized purchasing
● Centralized purchasing

209
Emerging Practices in Procurements
● Advances in technology
● Advances in supply chain
● Advanced risk management processes
● Changing contracting processes
● Stakeholder relations
● Trial engagements

210
Factors considered while Procuring
● Complexity of procurements
● Physical locations
● Governance/ Regulatory environment
● Availability of Contractors

211
Contracts in Agile Projects
● Shared Risk : Collaborative relationship
● Master Services Agreement (MSA)
containing the common terms and
conditions and various procedures and
other generic details
● Appendix containing dynamic elements
such as scope, schedule and cost

212
Procurement Management Steps
Activities involved in Procurement Management:

● Performing Make or Buy analysis

● Creating procurement management plan
● Creating a procurement strategy for each
procurement
● Creating procurement statement of work for
each procurement
● Selecting the appropriate contract type for each
procurement
● Creating the bid documents
● Determining source selection criteria

213
 Contract Types
1 Fixed-Price
a) Firm fixed price (FFP)
b) Fixed-price plus incentive fees (FPIF)
c) Fixed-price Economic Price adjustment (FP-EPA)
2 Cost-Reimbible
a) Cost Plus Fixed Fees
b) Cost plus Incentive Fees
c) Cost plus Award fees
3 Time and Material
4 Indefinite delivery Provides indefinite quantity of goods with upper and lower limits
Indefinite Quantity within a fixed period. This is used in architectural, Engineering and
(IDIQ) Information technology engagements
5 Other Agreements MOUs(Memorandum of Understanding), MOA (Memorandum of
Association), SLA, BOA (Basic Ordering agreement)

214
Fixed Price Contracts
● Firm Fixed Price
● Fixed Price Plus Incentive
● Fixed Price Economic Price Adjustment

215
Cost-Reimbursable Contracts
● Cost plus fixed fees
● Cost plus incentive fees
● Cost plus award fees

216
Time and Material Contracts
● Also known as Time and Means contracts
● Buyer pays on per-hour or per-item basis.
May give day-to-day directions to seller
● Are a hybrid type of contractual
arrangements (involving both
cost-reimbursable and fixed contract
characteristics)
● Best suited for staff augmentation of
getting some physical equipments for
temporary period

217
Plan Procurement Management
● Make or buy analysis
○ Logistics and Supply chain
management
○ Economic models: to be
considered during make-or buy
analysis:
○ Payback period
○ Return on investment
○ Internal rate of return
○ Discounted cash flow
○ Net present value
○ Cost-benefit analysis

218
Source Selection Criteria
● Least Cost
● Qualifications Only
● Quality based
● Quality and Cost based
● Sole Source
● Fixed budget

219
Independent Cost Estimates
● Are estimated by the Procuring
organization or some professional
estimators
● These estimates are used to compare
the quotes shared by the prospective
sellers
● Significant difference between the
independent cost estimates and the
seller’s quotes are investigated to
ensure that they meet the needs and do
not include any unnecessary charges

220
Procurement Management Plan
● How procurement will be coordinated
● Timetable of key procurement activities
● Procurement metrics
● Roles and responsibilities related to
procurement
● Legal jurisdiction and currency
● Constraints and Assumptions
● Risk management issues
● Pre-qualified sellers

221
Procurement Strategy
● Delivery methods
● Contract types
● Procurement phases

222
Bid documents
● Request for Information (RFI)

● Request for proposal (RFP)

● Request for Quotation (RFQ)

223
Procurement Statement of Work
● portion of the project scope that is to
be included in the contract
● Must be clear , complete and concise
● Meetings, reports, communications
● Acceptance criteria

224
 Procurements- small quiz
Contract Payment Types

Who has the most risk in Fixed Price contracts?

Buyer or Seller? Seller

Who has the most risk in Cost-reimbursable contracts?

Buyer or Seller? Buyer

225
Procurement terms
● Cost
● Fees (Profit)
● Price
● Target Cost
● Target Price
● Sharing ratio
● Ceiling price
● Point of total Assumption
● Letter Intent
● Privity - contractual relationship

226
Conduct Procurements
● Advertising
● Bidder conference
● Interpersonal and team skills
● Proposal evaluation
● Selected sellers
● Agreements
● Change requests

227
Control Procurements
● Evaluate seller performance
● Data analysis
● Inspection
● Expert judgement
● Claims administration
● Audits

228
Contract types - Examples
● Directly refer the deck

229
Close Project or phase process
● Administrative Closure
● Contractual Closure
● And other closure activities

230
Project closure activities
● Acceptance of the deliverable by the customer
● Verify benefits realization
● Transition of the deliverable
● Archive project documents
● Upload lessons learned into the OPAs (Organization
Process Assets)
● Transfer of ownership of the deliverable
● Create use manuals
● Create technical documentation for handover to
another team who will support further
● Conduct training as part of transition and handover
● Release resources both human resources and
physical resources
● Plan Post-implementation support (aka hypercare)
231
Project closure documentation
● User manuals
● Technical documentation
● Handover documents
● Workshops for educating on the product

232
Procurements closure or contract closure
● Confirm the receipt of approved deliverables
● Confirm formal acceptance of seller’s work
● Settling open claims
● Confirm formal acceptance of deliverable by
the customer
● Confirm payment milestones are met
● Settling open claims with the client, if any
● Updating records and archiving the
information for future use

233
Administrative closure
● Ensure all project documents are up-to-date;
index and archive project records
● project or project phase meets completion or
exit criteria
● All the issues are resolved
● Confirm delivery of deliverable from customer
● Confirm formal acceptance of deliverable by the
customer
● Releasing personnel from project
● Dealing with excess project material
● Reallocating project facilities, equipment and
other resources
● Elaborating the final project reports as
mandated by organizational policies

234
Documents reviewed in project closure
● Business case
● Benefits Management Plan
● Project charter
● Project Management Plan
● Accepted deliverable
● Lessons learned register
● Risk register
● Change log
● Agreements
● Organizational process assets
● Data analysis techniques

235
Final Product or Service or Result
● The accepted deliverable
● Delivered to customer
● In traditional approach, the product is
delivered in one single release towards the
end of the project life cycle
● Receive sign-off on the product from the
customer
● Customer provides sign-off after validating
the product against the acceptance criteria

236
Final Project Report
● Summary of the project information such as
● scope objectives,
● quality objectives,
● cost objectives,
● schedule objectives,
● summary of risks and how they were
addressed,
● summary of validation information,
● summary of how the product, service or
result achieved the business needs
identified in business plan etc. which help
to validate final product

237
Project Closure in Agile Projects
● Iteration H or Hardening Iteration
● Planned at the end of the project after
complete product is built and delivered
● All closure activities would be carried
out during Iteration H
● No development work will be carried
out in this iteration

238
 Thank You
Name: Anita Myana
Email: [email protected];
Mob: (+91) 79000 76277, (+91) 80972 47444
www.certifyera.com

239