CAPM Exam Prep - Online Learning | GreyCampus I. | Skillshare
Play Speed
  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x
28 Lessons (4h 42m)
    • 1. Introduction

      6:05
    • 2. Organizational Influences and Project Life Cycle

      3:04
    • 3. Project Management Processes

      7:26
    • 4. Integration Management - Chapter Overview

      7:56
    • 5. Integration Management - Project Selection

      11:54
    • 6. Integration Management - Develop Project Management Plans

      10:53
    • 7. Integration Management - Direct and Manage Project Execution

      12:15
    • 8. Scope Management - Chapter Overview

      5:31
    • 9. Scope Management - Collect Requirements

      11:20
    • 10. Scope Management - Define Scope

      10:49
    • 11. Time Management - Chapter Overview

      3:21
    • 12. Time Management - Define Activities

      11:05
    • 13. Time Management - How is Estimating Done?

      9:17
    • 14. Time Management - Using Critical Path Method

      9:17
    • 15. Cost Management - Chapter Overview

      11:11
    • 16. Cost Management - Accuracy of Estimates

      11:20
    • 17. Quality Management - Chapter Overview

      12:41
    • 18. Quality Management - Design of Experiments

      8:24
    • 19. Human Resource Management - Chapter Overview

      13:00
    • 20. Human Resource Management - Responsibilities for Project Managers

      10:53
    • 21. Human Resource Management - Manage Project Team

      9:02
    • 22. Communications Management - Chapter Overview

      14:34
    • 23. Risk Management- Chapter Overview

      10:27
    • 24. Risk Management - Perform Qualitative Risk Analysis

      12:40
    • 25. Procurement Management - Chapter Overview

      10:31
    • 26. Procurement Management - Fixed Price

      10:51
    • 27. Procurement Management - Terms & Conditions

      13:12
    • 28. Stakeholder Management

      12:43

About This Class

The Project Management Institute's Certified Associate in Project Management (CAPM) credential is industry-recognized certification for project managers. Globally recognized, CAPM Certification demonstrates that you have the the basic knowledge to lead and direct projects.

The CAPM Certification requires you to pass a 150-questions exam, and this course is designed to help you review content and show you the shortcuts for a perfect score.

Pass the CAPM Exam With Flying Colors with this Comprehensive Practice Course

  • Exam Outline and Course Review
  • Project Management Framework
  • Integration, Scope, Time, Cost, Quality, Human Resources, Communication, Risk, Procurement, and Stakeholder Management
  • Earned Value and Critical Path Methodology
  • Testing Strategies and Study Materials

Transcripts

1. Introduction: introduction definition of a project and operational work. Definition of a project. AH project is a temporary effort to create a unique product service or result. Ah project has a definite start and end. Ah Project management plan is created by a project manager. This plan requires a buy in from all stakeholders. The plan should be realistic, time bound and achievable operational work. An organization can have either operational work or project work. The difference between operational work and project work is that the operational work is always ongoing, whereas project work has a definite end. What is Project management? Project management is not about managing people alone. PM I buy for Kate's project management into different process groups and knowledge areas. Process groups include initiating planning, executing, monitoring and controlling and closing knowledge. Areas include integration scope, time, cost quality, human resources, communication, risk procurement and stakeholder management. What is a program? A group of projects is termed as a program. There are several projects carried out in an organization, and managing these projects independently becomes a challenge for the organization. Hence, ah group of related projects is combined together in a program. What is it? Portfolio? Ah, portfolio includes a group of programs and individual projects that are implemented to achieve a specific strategic business Goal Project Management Office or P M o. The Project Management Office is a centralized department that manages projects. The PMO can central location and authority for providing policies, methodologies and templates for managing project within the organization. Trains individuals in project management within the organization. Assists them with project management tools. Provide project managers for different projects. These project managers and the P M O are responsible for the results of those projects. The Project Management Office is a department of many individuals. The PMO has responsibilities such as managed needs and interconnectedness between projects . Provide resources. Participate in project review meetings, monitor compliance with organisational processes. Provide template. Provides centralized communication about projects. Be apart of change Control Board Help prioritize projects. Business value. Business value is defined as the total sum of tangible and intangible elements of a business such as the total value of the business monetary assets fixtures. Stockholders Equity utility are some of the examples of tangible elements and intangible elements include a goodwill reputation, brand recognition, public benefit, trademarks, etcetera, effective management of ongoing operations help in creating value for the business. All organizations profit driven or non profit organisations are focused on attaining business value for their activities. Objectives. The project objectives are defined in a project charter. A project is considered as complete when the objectives of the project are met. AH project is terminated if the project objectives are not met. Objectives maybe to find at a high level initially, however, will be to find in detail As the project progresses. Project Manager is responsible to achieve project objectives. Quality management risk management, stakeholder management, scope management all have an impact on project objectives. If these knowledge areas are managed well, they can help and successfully achieving the project. Objectives. Management by objectives M b o i. M. B o. Is a management philosophy with three steps established, clear, concise, well articulated and realistic objectives. Periodic reviews required to check if objectives are met. Implement corrective actions wherever deviations are observed. Constraints constraint can be in the area of time. Cost, risk, scope, quality resources, customer satisfaction and others. Constraints help evaluate competing demands. The priority of each constraint is set by the management. A change toe. One constraint can have an impact toe. Other constraints of the project project inevitably goes too many changes due to the competing demands we were talking about earlier. Each change request goes to a change request process. Ah, project manager has to evaluate these changes and identify the impact on all the constraints of the project through integrated change Control process. OPM three PM Eyes Organizational Project Management Maturity model is termed as OPM three. This model is designed to help organization determine their level of maturity in project management. Stakeholder stakeholder management stakeholders can be project managers, sponsors, team members, project management office, portfolio managers, program managers, functional managers and sellers. Basically, stakeholders are those individuals, groups or organizations that are positively or negatively impacted by the product or the project. The project may fail if stakeholders are not informed, their inputs are not solicited or their needs and expectations are not satisfied. Ah, project manager is required to analyse and manage stakeholders needs and levels of influence throughout the life cycle of the project. 2. Organizational Influences and Project Life Cycle: organizational influences and Project Life Cycle Organizational structure. A project operates in with people process and technology. Oven organization projects have an impact on the culture, policies, procedures and other aspects of an organization. The organizational structure has a major influence on the execution of the project. The organizational structure decides the resources, communication methods and other aspects of project management. Organizational structure. Different types of organizational structures include functional. This is the most common form of an organization. Organizational departments are grouped by areas of specialization within different functions. In these organizations, projects generally occur and silo environments such as within the same function. Team members complete the project work over and above their responsibilities to normal department work. Communication primarily occurs within the same function organizational structure project ized in a Project Ties environment. The entire company is organized by projects and the project manager is in control. The projects, individuals or employees, are a scientific projects and report into a project manager. Once the project is over, they need to be assigned to another project communication primary that occurs within the same project organizational structure matrix in a matrix organization. The team members report into two bosses the functional manager and the project manager communication going from team members to both bosses, the Matrix organization is created to get the best potential from both functional and project ties. Type of organizational structure Team members have departmental work and they also do project work depending on the strength of the Matrix organization. The power or level of authority varies between the project manager and the functional manager in a strong matrix organization, the power remained with the project manager in a week. Matrix organization. The power remains with the functional manager. The project manager is considered to be a coordinator or an escalator in a balanced matrix . The power is equally balanced between the Project manager and the Functional Manager Project product. Lifecycle Life Cycle, a progression through a series of developmental stages, is termed as a lifecycle product lifecycle. The product lifecycle started the conception of a new product and ends at it Withdrawal Project Life cycle Ah Project Life cycle is required to be executed to produce the deliverables of the project. The life cycle of a project conspired from initiation phase to its closure phase and may involve some additional or some reduced steps varying from industry to industry Project Mandarin Process AH project management process includes initiating planning, executing, monitoring and controlling and closing process groups. Lessons learned the lessons learned document include the experience of the project manager on what was done right or what was done wrong when the project, and what should a project manager do differently on the project? 3. Project Management Processes: Project Management Processes Project Management Processes Chapter. Overview the project management process involved. Start initiating the project plan Plan the project. Do executing the project check and act monitoring and controlling the project and end closing the project. Initiating Process Group official authorization of the project is received in the Initiating Process group. The project manager receives necessary information to begin the project. It formally starts as a new project. Initiating Process Group could involve starting the project selection process. Ah project charter is created, stakeholders are identified and high level needs of these stakeholders are identified. The outputs of this process group involves Project Charter identified stakeholders and the strategy for managing to the stakeholders. Inputs to Initiating Process Group. The inputs to Initiating Process Group may include business case product description, linkage of companies, strategy with the project likely stakeholders contracts, current industry standards, change control system, defined processes and procedures, templates from past projects. Historical WBS is historical estimates, understanding companies, culture and possible team members. Let's discuss some of the points in detail. Progressive elaboration. The process of continually refining estimates and scope is termed as progressive elaboration. Project manager assigned. The project manager is assigned it during the initiating phase in the project. Even if this may or may not happen the rial world for the PMP exam, please assume that the project manager is assigned during the initiating phase. Business case. Business case defines the reason why the project was started. The project manager needs to know the reason why the project was started. If the reasons Air No. One, the project activities get impact in the right way and the project team is able to bring the right outcome for the project. High level planning is done during project. Initiating high level planning involves creation of high level WBS. Perform order of magnitude estimating perform high level risk identification. The high level planning effort is a part of creating the Project Charter, which is further used to document project objectives. Milestone schedules. An initial budget of the Project Planning Process Group Planning process allows creation of a blueprint of the project, such as getting the project organized before actually doing the work. Project planning presents a good opportunity to save time, resources and money. A detailed analysis of whether the project team can achieve the project objectives is done in the planning process all of the knowledge areas of the project are assessed and a road map is identified To accomplish the Project. Successfully Planning Process Group involves creating a project management plan, identifying stakeholders and their needs. Collecting requirements, defining scope, creating WBS, defining work package and activities, sequencing activities, estimating activity resources, estimating activity durations, developing schedule, estimating costs, determining budget plan and quality, developing human resource planning, planning, communication planning, risk management, identifying risks, performing qualitative and quantitative risk analysis, planning, risk responses and planning procurements. The output of the planning effort includes project management plan and project documents. Project planning is iterated. The individual management plans air combined together into the overall project measuring plan. The amount of time spent in project planning and the level of detail achieved in the plan should be appropriate to the needs of the project. Some projects cannot be fully planned to a detailed degree at the start of the project. These projects are organized by phases. Everyone is involved in the Project planning process. Project Manager compiles the project plan with input from stakeholders, historical records, company policies, etcetera. As changes occur, the project plan to accommodate those changes Executing process group completing the work as defined in the Project Management Plan and meeting the project objectives is the purpose of executing process group. The focus is on managing people following processes and distributing information. The actions required for excluding process group are direct and manage project execution. Perform quality assurance, acquire project team, develop project team managed project team, distribute information, manage stakeholder expectations. Conduct procurements. A process of project management is iterated and thus not always performed in the same sequence. Thus execution meats excuse. In the latest revision of the Project management plan Smart State, the exam assumes problems occur very often, nor they should have a major impact on the project for the exam assumed that proper project management was done unless any other point is explicitly stated in the question. Monitoring and controlling the Process Group Monitoring and Controlling Process Group requires several activities. It involves measuring the performance of the project with the Project management plan, a proven change requests, including corrective and preventive actions and defect repair. The action required in monitoring and controlling the process Group are monitor and control project work performed, integrated change control, verify scope, control, scope, control schedule control costs perform quality control, report, performance monitor and control risks administer procurements. Smart Study for the exam. It is important to know the project management plan is available with the project manager and it is realistic and complete. The project manager is aware of the procedure and the timing to measure time, cost and scope performance against the performance Measurement. Baseline Project Manager is accountable to meet the performance measurement Baseline project Performance is measured against the metrics determined for the project and included in the project management plan for any deviation to the project performance from the baseline. The project manager takes corrective actions Closing process Group project is completed only when the project closure is completed. The actions required for closing process group are closed project or phase and close procurements once the administrative pieces of project closure are completed and formal sign off that the product of the project is acceptable is received from the customer, other stakeholders and or the sponsor. The project had closed. The project manager can dust release any resources who had been helping to close the project. 4. Integration Management - Chapter Overview: Integration Management Integration Management Chapter Overview. Performing integration management in a project is to keep the complete interconnected project as one unified set of activities. This is a project managers key rule. Effective execution of this rule is determined to be a critical success factor for the project manager. To be successful in the PMP exam, you have to think about integration management from the perspective of a large scale project. This project could be multi locational project involving cross functional cross cultural collaboration and having a potential savings of millions of dollars. Individuals who are performing integration management effectively on large projects will not face major challenges in giving a hassle free PMP exam during the ongoing course of a project. The team members are heavily involved in completing designated tasks or work packages, and the project leads and sponsors continue to monitor the project to avoid any changes and resource challenges, and the project manager continues to integrate project activities. He keeps the interconnected project as one unified whole, thus resulting in quicker results, economical activities and lesser resources. And he also ensures that the project goals are met. Project integration management is all about maintaining equilibrium in all areas of a project time, scope, cost quality, human resource, communication, risk procurement, stakeholder among other these air interconnected processes and cannot be performed in silos . To create a project charter, for example, we would need details of what the business goals and its linkage to the project goals. We also need to carve with the problem statement, scope, statement, cost benefit analysis or financial calculations, among others. Likewise, for incorporating additional scope after the project has initiated, we would need to identify the need of additional resources. Schedule changes increase in project activities, among others. The project managers mainly keeping this interconnected project as unified set of activity in all of the given examples. Integration Management develop a project charter AH Project Charter is a formal document that authorizes the Project Team toe execute project activities and provides the project manager the ability to apply organizational resources to project activities. The PMP exam could include 6 to 10 questions on project charter, an understanding of the components of project charter, effective use of each component and it's application during the course of the project is essential toe appropriately. Answer the questions during your P MP exam. Developing a project charter involves assessing the project feasibility on the basis of the given constraints and planning the project at a higher level. We do not create a detailed project plan while developing the project charter as it is generally done after the official sign off from the project sponsor. An official sign off allows allocation of money and resources and thus supplements the development of a detailed project plan. During the project Initiation, you define high level objectives, scope, risks, assumptions, constraints and requirements with a view of checking the feasibility of the project by meeting the important stakeholders. Developing a project charter requires a few activities as follows Identification of stakeholders or customers. Ah project manager needs to identify all the stakeholders on the customers at the start of the project. Identification of Projects Scope scoping is a critical activity to create a boundary of what work to be done and what not to be done. We will cover project scope in detail in the Scope Management chapter. Identification of project risks. Identifying risks is an ongoing activity of the project manager. This activity start from the onset of the project and continues throughout the life cycle of the project identification of project assumptions. There are multiple activities which are done basis, organizational and project environmental factors. These activities are executed either because of process policies or certain assumptions. Thus, it is important to uncover all the assumptions. This is usually done by the project manager in discussion with the other stakeholders. Identification of high level project requirements, objectives, detailed level requirements. The objectives are not possible at this stage of the project. Hence, the project manager should focus on the high level project requirements and objectives identification of project success criteria. The project manager should also identify the success criteria of the project. This is used as a baseline and compared with the actual project performance documentation of identified elements. All the identified elements need to be documented to help standardize the project work. The above cannot be done by an individual project manager. This requires meeting with important stakeholders, subject matter experts and related process people. An important point to observe is that creation of the Project Charter encompasses all the project areas, including scope, risk, time, cost quality, human resources, communications and procurement, thus making developed project charter and integration process develop a project charter business case. The project charter includes the following business case. A business case identifies the business need of doing a project. It effectively describes the linkage of the project with high level strategic goals of the organization. It also explains the reason for project identification and selection. It is important to identify how a project is selected amongst so many project in your organization. In large companies, AH Project Selection Committee is established to gather information and data required for developing a business case. Ah project Manager is not a part of the Project Selection Committee. Ah project Manager is aligned to the project after it is selected for execution. However, to develop an appropriate business case and to effectively achieve the desired results, the project manager needs to have an understanding of the reason of the project selection. Different functions or departments of the organisation present their ideas for several different initiatives in front of the Project Selection Committee on the basis of the focus of organization and or the themes identified by the Organization for Project Execution. The selection committee selects the project. Let's look at an example of how a business case can affect the way the project has managed a company has identified and selected a particular project because the project will add to its strategic plan of consolidating its vendors. The project manager has a project management plan that includes an approved schedule and resources. The project manager finds that the approved schedule is a constraint that could delay the process of vendor consolidation. He asks for additional expert resources rather than continue with the project with approved resources as per the project management plan. If the project manager did not ask for the increase, the company may have been delayed in the exercise of vendor consolidation, and that would have resulted in losses and or there may also be situations where the contract would have been renewed. Thus, it's imperative for project managers to know why the project was selected and how is it linked with the higher organisational objectives the business case created should justify the existence of the project 5. Integration Management - Project Selection: Integration Management Project selection. As described earlier, that was one of the ways of project selection. Likewise, on organization could have their own project selection method. Though the project manager is not allocated to the project during the project selection process, it is important for him or her to be aware of the process the organization uses to select a project on the various project considered by the organization before selecting the initiative. This information guides the project manager on appropriate planning and management of the project. Above are compelling reasons for you to be acquainted with the project selection terms and notions. The following terms relate to project selection methods. Project idea generation methods constrained brain rating. The name constrained brain writing comes from the fact that on certain occasions the team may want to have a set of constrained ideas around a predetermined focus rather than ranging freely benchmarking, Pro says Benchmarking is a technique of continually searching for the best methods, practices and processes and other adopting or adapting their good features and implementing them to become the best of the best assumption busting assumption busting as a technique is used to trace back from the current performance problems and to identify rules and then surfaced The underlying assumptions. Economic models described later mathematical approach Constrained optimization methods. Linear programming integer programming, dynamic programming. Multi objective program. Economic models for project selection Present value NPV. Internal rate of return payback period. Cost Benefit Analysis The two key factors indicating the significance of a project to the company are the reasons a project is selected and the value it is expected to bring to the organization. The project could be initiated for several reasons, including meeting service levels, managing costs, establishing a new business regulatory requirement, implementing new technology or if it was the most feasible and least expensive solution to the given problem. This information can guide the project manager to plan and manage the project very well. Project selection. Present value Present value means the value today of future cash flow. The formula is PV equals FV, divided by open bracket one plus R close bracket end where F V equals future value. R equals interest rate and n equals the number of time periods. Project selection NPV. NPV is equal to the present value of the total benefits income or revenue minus the costs over many time periods. The good part is we don't have to calculate NPV. NPV acts as a good unit of measurement to compare projects across the organization and select the best project for initiation. If NPV is positive, then the investment is a good choice unless an even better investment exists. The project with the greatest NPV is selected project selection, Internal rate of return, the rates or interest rate at which the project inflows, more revenues and project outflows or costs are equal is called the internal rate of return . The good part is you don't have to perform any calculations in the PMP exam. Simply know that the higher the I. R R number, the better project selection pay back period the length of time it takes for an organization to recover its investment in the project before charge. Accumulating the prophet is called the Payback Period Project selection, Cost benefit analysis, Cost Benefit analysis compares the expected costs of the project to the potential benefits it could bring to the organization. This analysis results in the calculation of a benefit cost ratio, which can be expressed as a decimal or ratio benefit cost ratio greater than one is the benefits of greater than costs benefit cost ratio less than one. The benefits are lesser than the costs. Benefit cost ratio equals one. The benefits are equal to the costs. Note. In some questions, you can be confused between the terms, revenue and profits for project selection purposes. Benefits are the same as revenue. Revenue is not the same as profit project selection. Economic value added. Whether a project returned to the company more value than the initiative costs Is economic value Added in cost management Chapter There is a different concept, namely earned value analysis earned value frequently appears in the exam, and economic value rarely appears and questions your choices project selection, opportunity cost. This term refers to the opportunity given up by selecting one project over another. This does not require any calculation. The opportunity cost is the value of the project not selected. Project selection sunk cost sunk costs have already occurred. They are expended costs. The accounting standards indicate that sunk costs should not be considered when deciding whether to continue with the troubled Project Project Selection Law of diminishing returns and Working Capital Law of diminishing returns. This law states that after a certain point, adding more input will not produce a proportional increase in productivity. Working capital this term refers to the current assets minus current liabilities. Foreign organization. In other words, it is the amount of money the company is available to invest, including investment in projects, project selection depreciation, large assets purchased by a company, Lewis Value over time accounting standards called this Depreciation. Several methods are used to account for it appreciation. The two forms of depreciation of frequently asked that exam are straight line depreciation . The same amount of depreciation has taken each year accelerated appreciation. There are two forms of accelerated depreciation, double declining balance and some of years digits. Accelerated appreciation depreciates faster than a straight line depreciation. You do not have to. For many calculations in the exam for depreciation in the exam, they may ask you what they are. Additionally, you do not have to understand what these two forms mean or do any calculations, constraints and assumptions constraints. Ah, factor that limits the team's options limits on time, schedule, resources, cost scope, assumptions, things that are assumed to be true. But that may not be true is termed as assumption. For example, the marketing team needs only M B A pass odes, constraints and assumptions are identified and documented at a higher level during project initiation. They're refined and documented in detail as a part of the defined scope process in project planning. Their inputs too many project management processes. Assumption analysis is a part of risk management process. The project management plan needs to change if constraints, change or assumptions are proven wrong. Constraint and assumptions need to be identified, tracked and effectively controlled during the Project Life Cycle Project statement of work or S O. W. You can think of this document as a long, wordy document that is world written in a typical legal language, generally agreed between two parties while getting into a business agreement in projects. The project S. O. W. Is created by the customer or sponsor, describing the requirements or needs the scope and how the project fits into strategic plan during the Development project charter process. This document is still at a higher level. It only gets refined and further detailed in the Project Scope statement during the Project Planning charter. With work under contract, all projects have Charters on project, where there are two parties from different organizations. Both organizations would create project chargers that have different points of view. One organization may focus to achieve a particular product scope while meeting projects and strains. Another organization might focus on increasing revenue enhancing reputation or gain additional work from the buyer. Enterprise, environmental factors, company cultures and existing systems are the major environmental factors for any organization. They could be environmental impediments for the progress of the project or could also be catalysts for a positive impact. These factors are constantly bothering project managers since the beginning of time, their inputs to develop Project Charger or many other processes. The trick is to identify the context of these environmental factors. Are the organizational impediment that the project has to deal with, or are they positive catalyzing effect that the project can make use of Project Manager Information System or P. M. I. S. One of the critical parts of an organization's environment system is its Project management information System, or P. M. I S P M. I s includes automated tools such as file sharing spaces, scheduling software's analytical statistical software's process, mapping software configuration management system, shared workspace for follow storage or distribution and other such systems. Organizational process, assets, organizational process, assets are existing processes, procedures and historical information. They helped the project benefit from past company experience. From the PMP exam perspective, it is advisable to think of these as given processes, procedures and historical information. Some examples are given below lessons learned. Project Initiating involved. Looking up past lessons learned for use in the current project. Historical information Historical information is a record of past projects. It is used to plan and manage future projects, thereby improving the process of project management. Historical information can include process activities, lessons learned, internal benchmarks, external benchmarks, dashboards and reports, risks, assumptions, project management plans, WBS correspondence, emails, resources, processes, procedures and policies. Organizations develop processes, procedures and policies that have been tested over a period of time and have proven to be the best practices. Such information is key towards organizational process assets, corporate knowledge base, The creation of a corporate knowledge base of historical information and lessons learned is the responsibility of the organization for the PMP exam. Please assume that the organization has information such as historical records and lessons learned from previous projects that the company has incorporate those records into an indexed corporate knowledge base available to all 6. Integration Management - Develop Project Management Plans: Integration Management Developed Project Management Plan management plans. Management plans are critical for the success of any project. The strategy to execute and to manage the project and the process is related to the knowledge area of scope, schedule, cost, quality, human resources, communications risk and procurement is documented in a management plan. Thus each knowledge area has a management plan. When creating a plan, the project manager must think ahead of time on all the activities that he plans to carry out during the course of the project. The thinking should cover all aspects of the project management process, such as a particular needs of the project. How will you manage the project and how will you control it? For example, you need to think about how you will identify changes for this project. You would need to think about the entire process flow of what would happen after changed identified. You would also need to think about who would approve the change and in which documents or trackers would be used to document and review the changes. Management plans are required at every step, and they differ from project to project their exclusive the each project in order to address the project particular needs, the level of details and the formats used in management plans should be customized to fit the environmental factors of the organization need to the project and also the working style of the project manager. For example, in continuation to the above example of change management procedure, the management plan must be to address what happens after changes identified. Who will coordinate the request to change? Who will approve those changes, which formats such as change Control Register, CCR Change request form, CRF are to be used and who will implement the changes as integration. Management is an important job responsibility of a project manager. Management Plans is an integral part of a project manager's job Baselines performance Measurement Baseline during the planning stage, scope, schedule and cost baselines are created for the inclusion in the project management plan. The Project Manager measures and reports project performance against the has identified Baselines Scope Baseline Project Scope Statement, Work Breakdown Structures or WBS WBS Dictionary Schedule Baseline. The agreed upon schedule, including the start and stop dates, cost baseline the time based cost budget, for example, the spending plan indicating how much money is available for the project and when the funds are available, all the three baselines are together. Termed as performance measurement. Baseline. One of the critical responsibilities of a project manager is to clearly completely and realistically identify the baseline for the scope, schedule and cost budget. The project manager's job doesn't end it. This his own performance and the projects performance is measured against the baselines. Any deviation of the project work against the base sides needs to be tracked, and actions have to be taken to mitigate the problem. Ah, formal change request will be inevitable if actions do not correct a deviation. As a project manager, your ability to control the project is as important as the ability to planet. This is because a substantial part of the project control is making sure the baselines are achieved. Getting the project completed as planned also ensures that the sponsor and the champion get complete benefits of the project. We have initiated baseline changes should not be encouraged. Baselines are the foundation of any project, and changing the baselines would been working on the foundation again. However, changes to the baseline can be formally requested in other phases, such as project execution monitoring and control. These requests are evaluated and approved by the Change Control Board of the Project team In a perform integrated change control process, An audit trail should be made available to show why and when changes were made. Requirements Management Plan A Requirements Management Plan described how the efforts of analyzing stakeholders needs wants expectations and assumptions will be done to identify, analyse and document the requirements as well as how the requirement will be managed and controlled throughout the project. Change management plan changes are inevitable in a project ensuring that we are following the project. As per the project management plan is more important, changes can have a positive effect on the project and it can also lead to negative effects . When you work as a project manager, you are not just expected to facilitate these changes made by others. But also stand is a barricade tow, avoid unnecessary changes and to plan the project that would help in minimizing the need for changes. It is observed since the beginning of project management that changes air always costly compared to its inclusion. The beginning of the project Change management is a critical activity done by a project manager and he should ensure complete attention and dedication is given to this process. In a change management plan. We include the process of managing and controlling change, which further includes change control procedures, change Control Board or CCB, levels of approvals for authorizing changes. Outline of a plan on how changes are managed and controlled. Meeting and communication plan regarding changes, tools and applications used by organizations to track and control changes. Change Control System Change Control system is a part of an organization's enterprise environmental factors and include tools and software's to track and control changes such as standardised forms, reports, processes, procedures and applications. This change control system generally exists as a part of Project Management Information System, or P. M. I s Off the Organization Configuration Management plan. A configuration management plan is a plan to manage changes to the deliverables and the resulting documentation, including the organizational tools you'll use while managing these changes. This plan helps everyone know the different versions of the scope, schedule and other components of a project management plan. Configuration Management System Configuration Management system is a part of Project Management Information System or P. M. I. S like the change control system. It contains the tools and methods of tracking and controlling the evolution of project documentation, and it includes the organization's standardized configuration, management tools, processes and procedures. Process Improvement plan While you plan for the project, you can use a combination of using existing practices and processes of the organization or create new processes of your own. It is also imperative to plan to improve these processes during the course of the project. Some of the benefits of improving processes are helping the team complete work faster with lesser cost and with maximum quality. Let's say that a project includes conducting one on one interviews of several 100 customers . You should find a process toe, execute the task after a few interviews are conducted and then again after MAWR installations Air completed, the project manager should look for ways to improve the process. This effort will allow the team to complete the work faster with less effort and at a lower cost develop project management plan. The project management plan is created by completing the scope, schedule and cost baselines. As a next step, the key stakeholders and the sponsors approved the project management plan this process of completing the project management plan that has stakeholder by in is approved is realistic and formal is an output of developed project management plan. The signed off Project Management plan acts as a tool demands a project on a day to day basis. It is a document that provides a direction to all stakeholders. This plan needs to be thought through from an end to end perspective and should be complete . It may go through changes at a later stage, though, as you can see in the diagram that customer is the originator. He provides this statement of work organisational environmental factors provide company culture, existing systems, processes, procedures and historical information. This is used by the project manager to identify stakeholders and document project charter. The sponsors signs off the Charger and the project manager, then developed the Project Management Plan Project documents. Project documents include project charter, statement of work, contract requirements, documentation, stakeholder register change control, register activity list, quality metrics, risk register, issue log and other similar documents. These may not be included in a project management plan. However, they are an integral part of the project, with a few exceptions, such as charter contracts and statement of work or s. Ow. The rest of the documents are used by the project manager for his own needs. They may or may not be showing to the project sponsor. The sponsor will see and approve the Project Management Plan Project Management plan approval. Formal approval is the process were a sign off where Signature is taken from the management , the sponsor, the project team and other key stakeholders in the Project management plan. Ah Project Management plan is a formal document that define toe. A project will be managed, executed and controlled. It includes project completion days. Milestones cost etcetera. The approval process becomes less difficult if the project manager has identified all the stakeholders. Their requirements and project's objectives include the result in project and product scope in the plan and have identified conflicting priorities and tried to mitigate them in advance. Kickoff meeting. The purpose of a kick off meeting is so formally announced the start of the project and to ensure everyone is familiar with its details. With the resources used, this scope and people working on it, the meeting is held to calibrate everyone's understanding and expectations of the project's deliverables. A kick off meeting should be held before the completion of the developed project management plan and before initiation of project execution. The review of the project may include milestones, risks, communication management plan, meeting schedules, among others. 7. Integration Management - Direct and Manage Project Execution: integration management. Direct and manage project execution, Integration of all execution work to accomplish the project management plan and producing the deliverables are two critical activities of direct and manage project execution. Requesting changes and completed the work necessitated by approved change requests are involved in direct and manage project execution, direct and manage project execution process and the monitor and Control project Work process required considerable effort during the project. Direct and manage project execution process involves managing project members, stakeholders and others. Executing tasks process improvements Change management. Helping the team to get the work completed, ensuring the team is calibrated, focused and informed in direct and manage project execution process. The rule of a project manager involves effective facilitation. Effective communication. Keep the project on track as per schedule. Increase efficiency by performing process improvements for the tasks performed by the project manager, it is assumed that during project execution, enough time is spent on managing schedule, budget quality risks and all knowledge areas. Most project managers are not attuned to this approach of managing projects. They tend to manage the project as a whole is that of giving attention to individual knowledge areas. This also indicates that enough time is not given to understand the impact of one knowledge area on another area. For example, quality management issues can affect risk management and project schedule in due course. The project managers also miss out thinking about some knowledge areas. This makes integration management knowledge area as one of the most critical areas that require project managers to keep all the knowledge areas in mind at all times. Integration, management, monitor and control project work monitoring and controlling project work involves tracking the actual project performance with the planned project manager activities. It can mainly be looked at as a control function that takes place at every stage of a project, from initiation to closing for small projects, monitoring and control project work is a comparatively easy task. However, as you are aware, project management is more stringently required for large projects where the project manager requires a formal effort to monitor and control how the processes air going. He or she will not be personally involved in performing project work on large projects. Some of the outputs of monitor and control project work include change requests, including C. A, P A and defect repairs, where C a p a is correct and preventive actions. Updates to project management plan updates to project documents This process of monitoring and controlling project work is extremely important as it can happen that you're able to complete the project on time, however, have not been able to meet the desired quality levels. Similarly, your project has an increased scope, however, has exceeded limited time and cost. The project manager must bounce requirements of different knowledge areas to control the project through monitor and control project work project managers create performance measures or use existing organizational performance measures toe identify project performance at regular intervals during the course of the project. Monitoring and controlling project work involves monitoring any other performance measure that the project manager has created or used for this Project. Work Authorization System Work Authorization System is assistant to authorize the initiation of work packages or activities. This authorization is given by the project Manager. It belongs to the Project Management Information System. This system helps to start work on Lee when a formal authorization is given most of the times. This tool for authorizing work is not created by the project manager, but he uses existing organizational practices on the project. Change requests changes are inevitable in spite of planning the project to the minute detail, Ah, project manager will come across changes during the course of the project. These changes air addition to the project. They may also be changes to the existing policies and procedures using the project. Preventive action Taking corrective actions is a reactive approach. Whereas taking preventive actions is a proactive approach. It means that dealing with anticipated or possible deviations from the performance measurement baseline knowing when to take preventative actions requires more experience than mere understanding of the project management framework. Hence, the process of taking preventive actions is not as clear as corrective actions. Some of the examples of preventative actions include changing a vendor because the products nearly failed to meet the acceptance criteria. Cross Skilling, the team members on certain specialized tasks to manage staffing and work in case the specialized staff inadvertently falls ill or Mrs work perform. Integrated change control will also be applied for any preventative action. Preventive actions could change the project management plan, baselines policies or procedures, charter contract or statement of work in the p. M. B. Okay, guide preventative actions are described in the following topics. Integration management, direct and manage project execution monitor and control project work sculpt management control scope, time management control schedule cost management control costs, quality management. Perform quality assurance, perform quality control human resource management, manage project team communications management, manage stakeholders expectations report performance risk management monitor and control risks Defect repair Another word for defect repair is rework. When a component of the project does not produce the required output or does not meet the required specifications. A defect repair may be requested. A defect repair may change the project management plan, baselines policies or procedures, charter contract or statement of work. Hence, it has to go through a performing integrated change control process. Defect repairs come across in the following topics of discussion. Integration, management. Direct and manage project execution monitor and control project work scope management, verify scope control scope, quality management. Perform quality assurance, perform quality control, integration management perform integrated change control. The key focus of integrated change control is to measure the impact of change on all project limitations. Changes to any part of the project may be requested during the course of the project, especially during the project Execution on Monitoring and Control phase. It is not necessary to execute all changes in their perform. Integrated change control change is accepted or rejected basis through evaluation and impact whenever changes requested. It advisable to identify the impact of the proposed change on the project. Cost, quality risks, resources scope and also one customer satisfaction. There are two prerequisites to measure the impact of change. A realistic project management plan to be used as a baseline and a complete product and process scope as applicable. Since changes are inevitable, project managers should work to prevent the root cause of change whenever possible. Most cases indicate improper planning of the project results and change requests. Although changes can happen, they're not encouraged and the handling of possible changes must be planned, managed and controlled IT control change to the project. The project manager should identify all requirements at the earliest convenience comprehensively identify all the risks related to the project. Established time and cost factors established change management process followed. The change management process have required templates in place to create change Requests, identify clear rules and responsibilities amongst stakeholders to approve changes if the number of changes become a disproportionate reevaluate. The business case. Consider terminating a project if required. If the number of changes are disproportionate, ensure only approved changes are added to the baselines. Changes can have two categories. The one that impacts the project management plan. Baselines policies and procedures, charter, contract or statement of work. And the one that does not impact any of this change control board basis the level of authority of the project manager. He or she may be required to facilitate decisions about some changes rather than actually making the decisions. Hence the need of the change control board exists. Review and analysis of change requests is done by the board. The board may either approve or reject a change request. The board could include multiple stakeholders, including customers, experts, sponsors, functional managers, the Project Manager etcetera process for making changes. It is extremely important to prevent the root causes that make the changes happen. Managing changes comes later. The prior thing to do for a project manager is to eliminate the need for changes. The next step is to identify change. A change originator could be the project manager, the sponsor, the team, the management, the customer or other stakeholders. The project manager could be proactive to identify changes from all these sources. If he is able to identify the changes early, it will decrease the impact of the changes identify. The impact of the change is the third step. The fourth step is to create a change request. The process of making the change should follow a change management plant. The next step, the 5th 1 is to perform an integrated change control they're performing. Integrated Change control seeks an answer to the key question. How will the change affect the other project limitations? To resolve this? The first thing to be done is to assess the change. The next step is to look for options. The third is the check of the changes approved or rejected, and the last point is the document to change into change control system integration management, close project or phase close project or phase finalizes all activities across all process groups to formally close out the project or project phase Ah project manager must get a formal acceptance of the project. He should issue a final report that shows the project is successful. Issue the final lessons learned finally, Index and archive all the project records. A few steps to be done by the project manager while he is confirming to closing the project include confirming that the work is completed as per the baseline. Completing the closure formalities, gaining a final acceptance on the product, completing a financial closer, completing product handoff, soliciting feedback from the customers about the project, completing the final performance, reporting indexing and archiving documents. 8. Scope Management - Chapter Overview: Scope Management Scope Management chapter overview. When a construction site is being built, the constructor raises offense on the site, defining the boundaries of the construction. This process of building offense is called scoping scope. Management is the process of defining what work is required and then making sure all of that work and only that work is done. Large projects require more time, effort and resources to gather requirements, and thus defying the scope is important. Scope definition helps us to make sure that we're doing all the work, but only the work included in the scope management plan gold planning, a project or adding extras is not allowed. Changes in scope must take into consideration all the knowledge areas of project management , such as time, cost, risk, quality resources and customer satisfaction. Integrated change management process is required to approve changes to the scope of a project. Continuous monitoring of scope is required to determine what is and what is not included in the project. Product scope Product scope is nothing but what the customer wants. An organization could execute another project toe, identify a product scope, or it could be the part of requirements gathering of your project. An example of product scope would be on a project to build a new software application. The product scope is a new work full application that fulfills the requirements of our internal and external customers to determine if the project successfully achieved the product scope. The resulting application or the new product is compared to the application requirements which are recorded in the requirement documentation and the Project scope statement for the project. The project scope is the work the project will do to deliver the product of the project as in the product scope. In the software application development example, the project scope is the work that is to be done to develop the software application. This work includes the planning, coordination and management activities such as meetings and reports that ensures the products scope is achieved. These efforts are part of the project management plan and are further are part of the scope management plan at the end of the project or the phase. The completed work is compared against the scope of baseline in the project management plan to determine if the scope has been successfully completed. Scope Management Plan Scope Management plan Contains scope, Planning execution and control scope. Management is created as a part of defined project management plan process and is not included as a separate scope management process. Scope Management Plan Tries to Answer the Following How will the scope be achieved by the project? The tools required to accomplish the project scope the enterprise. Environmental factors required for accomplishing the project scope the organizational process assets required, how the scope is managed and controlled throughout the project. Organizations should have templates, forms or standards for sculpt management. These air critical for any project scope management plans may have topics that could be standardised for the organization. However, every scope management plan is unique. The project manager uses the scope management plan as a baseline to guide and measure the project until closing. As discussed earlier, the scope management plan is a part of the project management plan. Like other knowledge areas, a scope management plan may not be developed at one time. However, it could be developed in stages or iterated during project planning. The project manager first determined how to find the scope. Once the project is completely planned, the project manager has enough information to decide how the scope will be executed and controlled. These decisions then become part of the scope management plan. The project manager can use another aspect of federation in this adoration. The later parts of the project Planning, such as the human resource planning process, can add a new scope of the process, thereby changing the scope management plan. Ah project manager is required to have a good understanding of the project scope to create a scope management plan. It is a major mistake to work on a project before the product and project scope is identified. Creating a scope management plan is required part of project management scope management process. The PM Be okay Guide described the scope management process as one determine requirements. The project CHARB describes the Projects business case. The project manager should ensure that all requirements support the projects. Business case too. Needs of the stakeholders should be taken into consideration while defining product and project scope. Three. WBS to be used to break the scope into smaller and more manageable pieces. Four. Scope management process should be created from the customers. Viewpoint scope performances to be measured and adjust it as needed during the course of the project. 9. Scope Management - Collect Requirements: scope management scope management collect requirements. Stakeholders of a project play a very critical role in providing project requirements. Requirements are the need of any project or a product. Requirements should be able to fill the stated objectives. Requirements should not be included just because someone wants it. Requirements may be related to quality, the business process, regulatory requirements, compliance and project management, among others. All of the requirements, including products and process, are taken into consideration by the collect requirements process. The initiating phase involves defined the high level requirements of the project and product during the project charter phase. The collect requirement process goes into the details of seeking additional and more specific inputs on those requirements and any related supposition from all stakeholders. Any missed in gathering these requirements may result in the failure of the project or may result many changes or may even result in conflicts throughout the project journey. Hence, this process of collecting requirements is critical. Identification of project stakeholders is the first step before recollecting requirements. You can use a stakeholder register to record this information. The next step is to collect requirements from stakeholders. Do you think will be that easy to click requirements for certain projects, there could be multiple hundreds of stakeholders. Likewise, even the methods required for collecting news requirements may be different for different stakeholders. The project manager needs to put in devoted efforts to collect all the requirements before the work is initiated on the project. If this is not done appropriately, ah, large number of changes are required in the project, leading to high cost and high efforts. Reviewing historical information lessons learned could be involved in the effort of collecting requirements. The project manager makes a conscious choice to choose the most appropriate technique for the project and the stakeholders. Identification of risks during the risk management process could also use the same techniques of collective requirements. Process. Reviewing historical records, historical records and lessons learned are very critical for the project team. That helps in gaining understanding of what were the requirements on similar projects and thus helps identify relevant processes. It also helps a new person understand expectations from the respective teams. Lessons learned from other projects may highlight common mistakes done by other project managers in defining the area of scope to ensure such requirements are not missed on current projects. interviewing in the PMP exam. This technique may also be called as expert. Interviewing. Various methods of interview could be conducted by the project manager with the project. Stakeholders toe identify their requirements for the product or the process. The interviews could be conducted as one on one e mails, phone calls, group settings, letters or any other method. Focus group. In a focus group, the moderator or the facilitator plays a key role to gather inputs and thoughts that helps get the opinion and requirements for the product or an aspect of the project from a specific set of stakeholders or subject matter. Experts facilitated workshops. The process of bringing together the individuals or stakeholders of different perspectives to define the requirements of the product or service is called as facilitated workshops. Brainstorming the method of brainstorming strives for groupthink. It really does not just mean a meeting with people to discuss ideas or seeking individual thoughts. Brainstorming helps produce large number of ideas in a short period of time. Ah, participant of the brainstorming session could share an idea of determining the scope, that idea generation idea from another participant, which leads to yet another idea and so on the participants of a brainstorming session convey ari individuals from different functions, Backgrounds and perspectives can benefit the brainstorming session and a great way. The participants need not be just the individuals from organization they could be from outside the organization as well. Nominal group technique. This technique is done in continuation to the brainstorming meeting where the ranking of the most powerful ideas is done by the meeting participants. Delfay technique. This is a consensus technique with a difference in this technique. The participants not meet each other. A request for information is sent to the experts and their participation. Details are kept anonymous. The responses air compiled and the results were sent back to them for further review until a final consensus is reached. Mind Maps. A mind map diagram is used to generate ideas and classify them into logical groups. It is a tool used to visually organized the information. Many ideas air connected directly to the central core idea and other ideas branch out from these affinity diagrams. The idea is generated from any other requirements. Gathering techniques are grouped by similarities. In this technique, a title is given to each group of requirements. Questionnaires and surveys Ah questionnaires designed to seek responses from respondents. The benefit of questionnaires and surveys is that it could be sent out to a large group prototypes. A model of the proposed product is a prototype. Stakeholders are presented the prototype to seek feedback. Multiple versions of the prototype may be created until all the requirements are captured. The model is finalized and approved group decision making. There are multiple ways to make a decision in a group requesting inputs from all the stakeholders may result in generating multiple ideas. These ideas may lead to confusion and may also lead to conflicts. They need to be reviewed, analyzed, approved or rejected and prioritized before recording them in project documents. A unanimous agreement on a requirement from the group makes the decision making easy. A single person making a decision for the entire group is known as dictatorship technique. This has an advantage of quick decision making. However, it also has the disadvantage of other stakeholders not agreeing in the decision making done by the individual in group decision making. There are many conflicting opinions in these situations. Groups may take a majority approach in this technique. The group takes a decision which is supported by more than half of the members. In case there is no majority decision, the group may go with the decision of the large number of supporters. This is known as plurality technique. There is another technique known as the consensus approach. In this technique, the decision is made which is acceptable for the group. In case there are certain members of the group who did not support the decision. They will willingly accept that most of the members of the group support it requirements documentation. Once the team collect all requirements, it is time. Document them. The documentation should be clear and unambiguous. This documentation is an output of collect requirements process. If the representation of information is not done appropriately, the collective requirements may be misunderstood. Hence it is advisable to not assume that the collective requirements will meet the objectives. Thus, it is important to ask the stakeholders if the collective requirements would be meeting the stated objectives. This helps ensure that the right requirements are collected and the end output will be acceptable. Bouncing stakeholder requirements, bouncing stakeholder requirements involved prioritizing requirements. It also involves resolving any conflicts between them. It is an important aspect of the collect requirements process. The project manager has to ensure that this requirements are met with in the state of project objectives. If the requirements cannot be met in the project, Manager needs to identify options toe adjust, the competing demands of scope, time, cost quality, resources risk and customer satisfaction. Bouncing stakeholder requirements is not limited to the collect requirements process. It goes beyond this at a later stage in the project is identified that certain stakeholder requirements do not match those of the project or those of other stakeholders. In this situation, ah, conflict may arise between stakeholders. Thus, the project manager may need to bounce requirements against the interest of the project and resolve any conflicts. Clear project objectives are prerequisite for balancing stakeholder requirements. Another prerequisite is to identify and prioritize all the requirements from all the stakeholders during the collect requirements process. If these prerequisites are not met, then balancing stakeholder requirements is an impossible task resolving competing requirements. Each department of the organization has their own interest in the project. For example, the risk team may slow down the pace of the project if they identify any risk and the operations team would have an interest of completing the project faster. Having an amicable solution for both departments is crucial. These issues are complex and an intervention from management is required to resolve them. Requirements. Management Plan requirements Management plan is an output of collect requirements. Process. The plan answers the questions such as. What are the methods used to identify requirements? What analysis is required for identified requirements? How will the requirement be prioritized? How would the requirement be managed? How would the requirements be tracked? What is required out of requirements traceability, matrix requirements, traceability matrix in large projects. If the requirements are not documented well, there is a likelihood that they may be lost. Determining requirements can involve one requirement, leading to more refined requirements and clarifications. This could make it difficult for the project manager in the project team to remember whether requirements came from objectives of the project may not be met if these reasons for requirements are missed requirements. Traceability Matrix is another output of collect requirements process. The matrix is used throughout the project In analyzing proposed changes to product or project scope, The Matrix helps in linking requirements to the objectives and or other requirements to ensure the strategic goals were accomplished. Requirements. Traceability matrix example. Apart from the show. One example. The project manager needs to record requirements identification number, source of each requirement, owner of each requirement status of each requirement. PM. Be okay guide suggest documenting the above in the requirement traceability matrix. However, for large projects, it will be a cumbersome activity and it would be difficult to use as well. It is advisable to make this data available in another repository, thus ensuring that this matrix becomes easy to use. 10. Scope Management - Define Scope: scope, management scope management defined scope, the product and project scope is determined using input from the requirements. Document created and collect requires process. Project charter. Additional information about the project risks assumptions, constraints, among others. This process is concerned with what is included and is not included in the project and its deliverables. Project planning is not a one time process. A project copy planned ready to start and kept as it is planning is an iterative process. The project manager continues to follow the project management planning process when the requirements have been determined. This information is used to identify the schedule and the budget. This schedule on budget may meet the expectations of the management or sponsor if they don't, the project manager needs to review all the constraints of the project and needs to maintain the equilibrium of the requirements or scope against the budget and the schedule. The project manager needs to create options for meeting the scope, time and cost objectives of the project and help management make a decision. Compressing the schedule. Identifying alternative ways to perform work on the project or adjusting budget or the scope are some of the tasks to be completed by the project manager. While creating these options are realistic schedule and budget that can achieve the project . Scope is the result of this exercise. Product analysis, Analysis of the objective and description of the products as stated by the customer and the sponsor is the purpose of the product analysis. The output of this analysis is identification of tangible deliverables. Project Scope Statement. Project Scope Statement is primarily an output of the defined scope process. Development of projects. Scope Statement is a time consuming activity and may require multiple stakeholder participation, including experts from outside the organization. The project manager avoids including the following two things while defining the project scope statement scope that has not improved. Project managers identify areas where people requested scope, but it was not approved to be included in the project scope that is not needed. Project managers should clarify areas where the scope could easily be misunderstood. Scope Baseline is a combination of Project scope statement and WBS and WBS Dictionary. Scope of Baseline is a part of Project management plan. Project scope statement can include product scope, project scope, deliverables, acceptance criteria of the product, out of scope, activist constraints and assumptions sculpt management, create WBS. All projects, large and small, require a WBS. It is a required element in project management. WBS shows the complete scope of the project broken down into manageable deliverables. Ah, project will take longer than the scheduled time. If a WBS is not available, project managers may also miss out on certain important activities without the WBS. Thus, without a WBS, the project could be negatively impacted. Most project managers make a list of activities as actionable. This may result in overlooking some deliverables. Additionally, ah list can be cumbersome and does not allow the project manager to clearly break down a large project into small, appropriate pieces. People do not get an understanding of the project by looking at the list. Ah list is created by one individual looking at the list. People do not know who has created a list. These air some major drawbacks of creating list of activities. Ah WBS, on the other hand, has enormous advantages. Using a WBS no actionable is missed. Ah, project manager can easily break down the work into work packages and the WBS shows how the work packages are drilled down. A WBS is created with input from stakeholders on the team. This automatically helps in seeking their buy in and thus leads an improvement in their performance. Creation of the WBS is a process that allows the team to walk through the project in their minds and thus improve the project plan. Thus, the execution of the project is much easier and less risky. The involvement of people increase and all feel that the project is more achievable. A WBS shows a complete hierarchy of the project, making it easier to see how one deliverable ways to another. This is a sample WBS. This WBS is on development of a clean, sustainable and complete lighting system for use in developing nations. Most commonly, the project title goes the top, the WBS. The first level is typically the same as the Project Life cycle. For example, for the project, WBS described here method for integrating energy, develop rugged and robust casing, develop a long life high capacity storage system, develop a light system, developed an inexpensive product and do not reinvent the basic components. The later levels break the project into smaller pieces. Such decomposition continues until the project manager reaches the level appropriate to manage the project. It's important to note that the WBS is not a corporate organizational structure, that it looks like one. It has a different function that allows you to break down a seemingly overwhelming project into pieces you can plan, organize, manage and control. The creation of WBS is a top down effort. It involves decomposing the deliverables and the work required to produce them into smaller pieces called work packages. Following are the rules to be followed for creating a WBS. A team is involved in creating a WBS. The first level is completed before proceeding any further and create the WBS. Each level of WBS is a sub level. A smaller piece of the level above. The entire project could be understood by looking at all the levels of a WBS. WBS does not include deliverables other than the project. A deliverable is considerable to be a work package. When it could be estimated both realistically and confidently, it could be completed quickly. It could be completed without interruption without the need for more information, and it may be outsourced or contract it out. WBS levels are numbered at a later stage. Work packages are distinguished in the WBS using the identification numbers assigned after completion of the WBS. This is an example of using a numbering system for WBS. In the exam, you'll see the term control account for some projects that costs are not managed at a work package level. Instead, they're managed at a higher level on WBS called the Control Account. As the planning process progresses, the team breaks on the work packages from the WBS into activities that are required to produce the work packages. Note that this further breakdown of WBS into an activity list is done as a part of the time management process of define activities. The team used the Project Scope Statement WBS and the WBS Dictionary to help to find which activities are required to produce the deliverables. The foundation of any project is WBS after creation of WBS. Everything that occurs and planning is related to WBS WBS Dictionary. For each work package, a WBS dictionary provides description of work to be done. Benefits of the WBS dictionary include avoiding scope creep and providing clear descriptions of the deliverables. Output of create WBS process is a WBS dictionary. A WBS dictionary can have multiple uses it informs when work package is going to start, thus acting as a work authorization system. Schedule milestones, acceptance criteria and other information about the work package are included in a WBS dictionary. It could be used as a control mechanism of what work is done. The stakeholders have an increased understanding of the efforts involved in a work package with a WBS dictionary. Scope Baseline. The final approved version of certain pieces of a project management plan is termed as a baseline in sculpt management. Baselines are the WBS WBS Dictionary and the scope statement. All of these need to be approved by the management and stakeholders before beginning the work. These baselines helping comparing the progress of the project to where the baseline says it should be for any deviations from the scope baseline ah change request is needed. This change request goes to perform integrated change control and if approved, gets add to the scope statement. WBS and WBS Dictionary. Any other components or documents involved also need to be updated. Meeting the requirements on the scope baseline are the measures of success of a project scope management verify scope. The inputs to verify scope are inputs from perform quality control process validated deliverables scope statement. WBS and WBS dictionary requirements. Traceability, matrix requirements, documentation. The outputs of verify scope are accepted deliverables change requests, updates to the project documents, scope, management control scope, measuring the scope, performance for project and or product and managing scope. Baseline changes are two major deliverables of control school process. I'm project manager, needs to control scope frequently to ensure that the scope is being completed As per plan, the project needs to be properly managed using the control scope process. Two components required for control scope process Our scope baseline from project management plan and current completed work on the project requirements. Documentation requirements. Traceability matrix can also be helpful in control scope process. Ah project manager identifies if there are any deviations against the baseline. Ah, corrective or preventive action is recommended in case deviations exist. Change request originates in case any changes are required. The project manager needs to identify and perform integrated change control process and subsequently update the required documents. Control School process believes in a proactive approach. Ah project Managers Primary job is to control the project to meet the baseline as per the project management plan. Changing scope without following the change. Mandira process is not advisable 11. Time Management - Chapter Overview: time management Time management chapter Overview. AH, project managers. Key responsibility is to create a realistic project schedule before the project execution begins. The project manager should identify if the planned end date is achievable. This chapter will be easier for you if you know the techniques of compressing the project schedule. Also, if you're comfortable with manually creating a network diagram, this chapter should not be much of a challenge. Although we will be covering all of this in detail, we just wanted to give you a short preview of what's next. There are several project management software is available in the market. The project managers can use these Softwares to assist with scheduling in their real life projects. However, for clearing the PMP exam, you must thoroughly understand the process of scheduling a project. You must also know the process of manually drawn the network diagram to answer questions about network diagrams and scheduling the manual process of drawing network diagrams and performing scheduling points to the fact that the available scheduling software's cannot do a project manager's job, they can prove to be extremely helpful for doing several project managers. Activities, however, cannot really manage the project each project is unique and these Softwares just can adapt to the uniqueness of the project needs. In the previous chapter, it was identified that making a list is not appropriate as compared to creating a WBS. Most of these project management software's suggest creation of a list of activities and assigning a start and end date. Teach the activities. If we are an avid user of these project management Softwares and do not know the real process of creating schedules, there is a likelihood that we may get most of our questions wrong. Schedule Management Plan Schedule Management plan requires thinking proactively before exiting the project. It involves thinking through several points, including individuals involved in the scheduling process. Approach required to plan schedule of the process use of organisational processes and procedures. Tools used for scheduling method to manage and control the project to schedule baseline and manage any deviations. The schedule management plan is created as a part of develop management plan process integration management AH, project manager must create a schedule management plan and it is observed that in real world scenarios, most of the project managers miss out on this important aspect. A schedule management plan should include the methodology used to create the schedule. The project managers had also described the use of scheduling software. He should identify the measurement guidelines, such as should he measure the process progress in hours, days, weeks, months or quarters. The schedule management plan should also include the duration for each activities and the effort required for those activities. All of this should establish the project baseline. This baseline is to be used to monitor and control the project during various phases. Project manager should also include a plan to mitigate any variances observed in the schedule. Change control procedures should be in place to manage schedule changes. Reporting requirements should also be established. 12. Time Management - Define Activities: time management define activities in scope management. We had created a WBS. WBS resulted in work packages work packages air used as input in the define activities process. These work packages are broken down further into activities to ensure that work packages are delivered. Each activity is then estimated scheduled, monitored and managed. Thus these activities should be small enough. Sequencing of these activities is the next process for defining activities. A project manager into two critical things. Scope, baseline scope statement, WBS and WBS Dictionary. Availability of a project team. Defining the activities involves making the estimates involving the team early on in defining activities. In assures that the estimates are more accurate when the project managers defined activities, there may be too many components toe adequately. Break down the components and schedule it. In these situations, project managers use a technique called rolling wave planning. Indus Method. The project manager need not plan all the details of the project right at the start, he can plan activities to the detail needed to manage the work. Only when he starts that phase of the Project life cycle, there is a likelihood that project managers can use this planning method as an excuse for not plan the project appropriately. This is not advisable. Activity list and activity attributes are two outcomes of define activities. Process activity attributes is the documentation of the details of the activities. Milestones are also to be determined in the define activities process. Milestones Timeline for each of the defined activities is not considered as a milestone. Milestones are interim deliverables of the project schedule. A summary of milestones is included in the Project Charter. For controlling the project, a project manager can impose milestones like a sponsor during the Sequent activities or develop schedule processes. Deviations from the planned activities are detected when the milestone arrives, and the project has not completed the activities required for the milestone. Ah list of appropriate milestones is created as a part of define activities. Process This milestone. This becomes a part of the Project Mandarin plan and is added to the Project Scope Statement and WBS Dictionary as part of iterations in planning sequence activities. The output of define activities is a list of activities and milestones in sequence activities process. These activities and milestones are sequenced in the order of work performance, the output of secret activities is a network diagram, also known as project Scheduled Network diagram, network diagram and perked charts are different methods to draw network diagrams. There are several network diagram methods, including Precedents Diagramming Method or PDM Arrow Diagramming Method or ADM Graphical Evaluation and Review Technique, or G E. R T. Project managers generally use PDM these days. Preston is diagramming method PDM, or activity on note. A o N Finished to start F s. The successor could start on Lee after an activity finishes. This is the most commonly used relationship example. You must open the can of soft drink before you start to drink. It start to start. The successor could start only after an activity starts. Example. You must start creating a presentation and wait for one weak leg in orderto have enough slides completed. To start the voiceover recording finished to finish. The successor can finish only after activities finishes. Example. You must finish the pilot before you finished gathering the complete feedback start to finish. The successor could finish only Afrin activity starts. This relationship is rarely used. Graphical evaluation and review technique. G E. R T G E. R T is a computer simulation technique that allows loops between activities. G E. R T is a modification to the network diagram drawing method. An example could be designing a program and testing it after testing. It may or may not need to be redesigned. Types of dependencies. Sequence of activities could be based on multiple dependencies. Some of them are listed below mandatory dependency. Hard logic. A mandatory dependency is the natural flow of work being done. For example, you must give the command to print before you can print. It may be required by the contract. Discretionary dependency preferred preferential or soft logic. Ah project team could not easily change other types of dependencies. However, they can change the discretionary dependency. A discretionary dependency is determined by the project manager in the project team. Discretionary dependency is quite useful when there is a need to compress the project schedule or fast track to project external dependency. Parties outside the project can also influence the project. Ekstrom dependency is based on the needs of a party outside the project. For example, labor unions, regulators, etcetera, leads and legs. A lead may be used to indicate that activity can start before its predecessor activity is completed. For example, editing of a book may start before the right up is finished. Ah leg is inserted. Waited time between activities such as needing to wait for completion of the application testing before final roll it up. The application sequence activities process can also result in identification of new risks . It may also lead to updates to activity list and activity. Attributes. Estimation. An introduction Critical points to remembered for estimate activity resources or estimate activity. Durations are accuracy of estimation improves if it is done basis. WBS accuracy has also improved. If estimation is done by the same person who does the work. Historical information provides critical insights for the process of estimation. Estimation would be more accurate if there are minimal or no changes in schedule. Cost and scope. Baselines Project manager should manage the project schedule without any deviation to the schedule. Baseline Project manager should manage project budget without any deviations to the cost base line. Integrated change control is used to approve or reject all change requests. Any issues related to schedule, cost, scope, quality or resources can lead to change requests. Ah project managers role is to analyze the project requirements, create new estimates basis inputs from team members and is experience with relevant projects and resolve any differences to produce realistic objectives. Periodic recalculation of estimate to complete or E T. C is required to ensure adequate time funds. Resources etcetera are available for the project. Project Majin plan should be revised as changes are approved and necessary work is completed. A non acceptable project management practice is padding. Any agreed upon estimates must be met by the project manager. Estimates must be reviewed periodically to see if they're achievable and to check for padding and risks. Reduction or elimination of risks can result in decreased estimates. Providing accurate and feasible estimates is a responsibility of a project manager Estimate activity resources. The type and quantity of needed resources are determined after the activities air sequenced . A resource could be in equipment, materials or people. Lack of resources is a common problem with all projects, and hence a project manager must plan and coordinate resources to avoid these problems. This results in getting to outputs defined activity, resource requirements and a resource breakdown structure or RBS estimate activity durations . The estimate activity durations process is to estimate how much time each activity will take it is completed after defining as sequence and activities and the type and quantity of resources for each activity identified. Who should play a role of estimating these durations? Ideally, the estimator should be those who will be doing the work. However, the estimators are more often Project team members who are more familiar with the work needs to be done. The S meters need to have access to activity resource requirements, readers, calendars, historical data of the organization, lessons learned about activity, durations, past project calendars, defined scheduling, methodology, company culture, enterprise, environmental factors, existing systems estimating software's and productivity metrics later in project planning during the risk management effort. The time estimates and any other information gathered during the S bidding process are considered when creating a risk register Padding. This image is an example of padding. Many project managers estimate activity. Orations like this padding undermines a project managers ability of developing realistic schedules and budgets. Ah, pad is an extra time and cost added to an estimate because the estimator does not have enough information. The potential need for time and cost arises when the project has many unknowns and information is not available to clarify the unknowns. This could be addressed with reserves through the risk management process. Risk management is an important process that converts uncertainties into identifiable opportunities and threats or risks. Estimators need to identify these risks and discussed with the project manager these risks should not remain hidden. If many of the estimates air patted, the project will have an extravagant schedule. In this case, there is no need of creating a schedule or a budget in actual real world projects. The schedule on the budget are used as baselines against which project managers measure projects performance. Thus, these baselines should be is realistic and accurate as possible, and project managers need to adhere to them. Padding is a poor son of project management, and it damages the reputation of a project manager. Padding will not be required if a WBS is available with estimators. Ah WBS dictionaries also available with estimators time and cost reserves in the project are identified to actual calculations and risks and unknowns are identified 13. Time Management - How is Estimating Done?: time management. How was estimating done? The three methods used for estimating include analogies estimating Parametric, estimating three point estimating or reserve analysis estimation. Activity needs to be completed by individuals who are doing the work. A project manager plays a key role during the process of estimation. Some of his activities are outlined. Enough information is provided to the team to properly espen each activity. Complete calibration should be made between project manager and estimators To know how refined their estimate, maybe validate the estimates. Prevent padding. Formulate a reserve assumptions made during estimating a recorded for later review. One point estimating basis. This technique. An estimate is made per activity. For example, the person doing the estimating says that the activity will take one month. The estimator may estimate this time basis Expert judgement. Historical information or could just be a guess. The technique is thus problematic. The negative effects of one point estimating on the project are if an estimator estimates that it will take 15 days for activity to be complete and it takes only 10 days, it can make the person who provide the estimate look untruthful or untrustworthy. It can hide critical information about risks and uncertainties from the project manager. It can decrease the buy into the project manager process. As a result in the schedule that no one believes in. It forces people into padding their estimates. It often results in estimators working against the project managers to protect their interest. So where could we use one point estimates for projects that do not require a detailed, highly reliable schedule? Ah, one point estimate can be used. Ah, three point estimate is preferable analogies, estimating the last few projects similar to this one took nine months, so this one should also similarly last three times This activity was completed. Each took 15 days. Since we have no other information to use, we will use 15 days as the estimate if there's activity and review the estimate. When more details are available, Expert judgment and historical information is used to estimate using enologist s main technique. Parametric estimating Parametric estimating looks. The relationships between the X is the variables on the wise activity To calculate estimates, the data primarily comes from historical records such as previous projects, industry requirements, standard metrics and other sources. There are two ways the estimator might create Parametric estimates. Regression analysis or scatter diagram. A regression analysis identifies the impact of an X on a Y, for example, impact of a variable on an activity by creating a mathematical formula to use in future Parametric. Estimating learning curve. Example. The average handle time oven employees in a call centre reduces as his tenure increases because of improved efficiency. Here is Stix Ah, heuristic means rule of thumb. An example of the heuristic is the 80 20 rule or the Pareto principle. This rule suggests that 80% of quality problems are caused by 20% of potential sources of problems. Results of Parametric estimating can become heuristics three point estimating pert analysis program evaluation and review technique. Since there is a very little probability of meeting the project deadline on exactly one date, it is often best to state estimates and arrange using three point estimates. Analyzing what could go right and what could go wrong can help estimators determined an expected range of activity. And if they state this range using three time or cost estimates, the project manager can better understand the potential variation of the activity estimates and the overall project estimate. With the three point estimate the estimators given optimistic oh pessimistic P and most likely M estimate for each activity. This ultimately provides a risk based expected duration estimate by taking either the average or weighted average using pert analysis of the three estimates. These formulas CA NBI used for both time and cost reserve analysis identification of risks is done by estimating elimination of risks is done by completing the risk management process. This makes the estimates more accurate, and it also produces the range of time and cost estimates. Time and money is saved by the risk management process. One of the critical responsibilities of a project manager is to establish a reserve to accommodate for the risks that remain in the project. After the risk management planning process have been completed, an initial reserve is estimated in the risk management process. The plan risk response process is executed to reduce the risk and a revised reserves created. Project planning is thus an iterated process. Contingency reserves and management reserves are two types of reserves for a project management reserves or additional funds kept as a contingency reserve to cover unforeseen risks. Contingency reserves are for the risks remaining after the plan Risk responses Process Developed schedule after completing the network diagram and activity estimates. Information is updated in a schedule. A schedule is calendar based. To develop a finalized schedule. The following steps need to be followed. Keep a check on priorities of stakeholders, create multiple ways of completing work, identify risks and impact on other projects. Negotiate resource availability with managers, leads and legs to be applied to the schedule crashing fast tracking and re estimating to be used to compress schedule. I just components of a project management plan you is scheduling tool and perform calculations to determine optimum schedule. Use models such as Monte Carlo Analysis to simulate, project and identify project completion date level resources if necessary. Seek approval on the final schedule from the team who created it. Seek stakeholder by in and formal management approval. Many of the actions of develop project Management Plan Process in Integration Management chapter are performed as a part of developed schedule Process Schedule network analysis for creating a final schedule. A schedule network analysis is completed. Using that initial schedule, multiple techniques can be used to create the final schedule, such as critical path method, schedule compression. What if scenario analysis Resource leveling and critical Chain Method Critical Path method A critical path is the longest path in a network. Diagram. The following steps were carried out in a critical path method. Longest path is determined through the network. Diagram. Earliest and latest time when activity can start is determined. Earliest and latest date when activity could be completed is also determined near critical path. A near critical path is close in duration to the critical path. If the critical path and near critical path are closer to each other in length, it increases the risk of the project. The project manager should focus on monitoring and controlling activities on both critical and near critical path to avoid any delays to project completion. Float slack flutes are mainly of three different types. Total float slack the amount of time the activity can be delayed without delaying the project. End eight Total float is considered as a primary type of float. Free float Slack the amount of time the activity can be delayed without delaying the early start date of the successors project. Float slack the amount of time the activity can be delayed without delaying the externally imposed project completion date required by the management or by the customer float is an advantage for the project. Ah float could be used by the project manager to effectively manage the project, achieve better allocation of resources. For example, if you have a new resource who is still learning and if you feel he will take longer to complete the task, you can allocate him to the activity, which is maximum float. Thus, even if the activities taken longer, it's less likely the project will be delayed. The amount of float also indicates the time flexibility the project members may have for each activity. Formula for creating float float equals late start or LS minus barely start or E s float equals late finish or L F minus early finished or e f. Either formula will give the same result. 14. Time Management - Using Critical Path Method: time management using Critical Path method ah forward and a backward pass need to be performed through the network diagram to determine the earliest and latest each activity can start and the earliest and latest each activity can finish for the early figures. Calculations are required from the beginning of the project to the end of the project. Phone the dependencies of the network. Diagram a forward pass through the network diagram for the late figures. Calculations are required from the end of the project to the beginning following the dependencies of the network diagram. Ah, backward pass. The first activity in the diagram normally has an early start of zero or one. Either method gets the answer. Using the method consistently is the key. This is the example of a forward pass. The example uses zero as the early start. For first activities, you will need to move through the activities from start until you reach the end. Determining early start an early finishes as illustrated in the diagram key of the previous diagram Heater e s is early start e f is early finish l s is late start and l f is late Finish. It is important to look where the paths converge or path convergence. To compute the early start an early finish in a forward pass, you have to take into account all the paths that lead into the activity. See Activity F and Activity G. In this diagram, the same concept applies to the backward pass to compute the late finish and late start. Need to consider all the paths of flow backward. Intern activity See Activity D and Activity F in this diagram. In this diagram, paths converge during the forward past at Activity F and addict activity. G SE need to do a forward pass on both paths leading up to activity F. Calculating the early finishes for activities D E f equals five and A e f equals four. You then select a later early finish activities D and A to use as the early start for activity F. Since activity F cannot start until both activities, D and A are complete. Therefore, the early start of activity F is four. You use the same process for calculating the early finish of activities. E e f equals 14 and f e f equals 13 before determining the early start of activity. G E s equals 14. A few important points of critical path method include there could be multiple critical path for a project. A project manager does not prefer to have multiple critical paths in a project. As it increases risk, the critical path can change due to the course of the project. If the float is negative, the project is behind schedule. The critical path has zero float. If the critical path is negative, float corrective actions or changes are required to the project. In the case, the project has negative float. The project manager should compress the schedule. Schedule compression. Unrealistic timeframe is one of the most common problems of any project. If the customer or stakeholders have requested for a date that cannot be met or if the project has deviated considerably from the baseline, the project schedule requires compression. It is the responsibility of the project managers to push back present options and make sure the project is achievable by properly plying the project and using schedule network analysis techniques like schedule compression. The schedule compression technique helps in determining if the desired project completion date can be met and if not, what can be changed. to meet the request to date. This can be done right at the project planning stage. This technique is also used during integrated change control to look at the impact changes to other parts of the project, such as the cost, scope, risk resources, quality etcetera have on schedule. The objective is to compress the schedule without changing the scope of the project fast Tracking this technique involves doing critical path activities in parallel that were originally planned in the Siri's. Some of the disadvantages of fast tracking our results in rework increases risk and requires more attention to communication. For example, using the network diagram showing here, which activity would you fast track to shorten the project length. Assuming the dependencies or discretionary activity, H could be fast tracked by making it occur at the same time or in parallel with activity G . Any other pair of activities and the critical path could be fast tracked. Activity C and H could also be fast tracked by having part of activity see done concurrently with activity age crashing in crashing, maintain the project scope is important. This technique involves making cost and schedule tradeoffs to determine how to compress the schedule the most for the least cost crashing. Always results in increased cost. It trades time with money. What if scenario analysis In creating a finalized realistic schedule, it is helpful to ask. What if a particular factor changed on the project? Would that produce a shorter schedule? The assumptions for each activity can change and therefore the activity durations can also change. One of the ways to calculate the effect of these changes is through a Monte Carlo Analysis . Monte Carlo Analysis. The outcomes of the project is simulated by computer software in Monte Carlo. Analysis. It is based in the three point estimate. Optimistic, pessimistic and most likely for each activity and network diagram. Following are the benefits of the simulation. It suggests the probability of completing the project on a specific day. It suggests the probability of completing the project for any specific amount of cost. It suggests the probability of any activity actually being on the critical path. It suggests the overall project risk. It is more accurate than other methods as it simulates the actual details of the project and college probability. Monte Carlo Analysis. Monte Carlo analysis helps deal with path convergence places in the network diagram where multiple paths converge into one or more activities, thus adding risk to the project. Monte Carlo analysis is also used as a risk management tool to quantitatively analyze risks . Resource leveling a resource limited schedule is produced using resource leveling. If resources are limited, leveling lengthened to schedule and increases the cost and other constraints. Critical Chain Method Critical Chain Method uses a network diagram and develops a schedule by assigning each activity to occur as late as possible to still meet the end date. You add resource dependencies to the schedule and then calculate the critical chain. Starting at the end date, you build duration buffers into the chain at critical milestones. These reserves spread throughout the project will provide cautions for delays in schedule activities. You manage these buffers that you meet each individual milestone date and thus the project Milestone completion date as well Project schedule. The schedule can be showing with or without dependencies or larger relationships, and can be shown in any of the following formats depending on the needs of the projects. Network Diagrams Milestone Chart bar chart Milestone Charge These air similar to bar chart , but they only show events. Milestone charts are good tools for reporting to management and to the customer bar charts . Also called Gant. Chart bar charts are weak pining tools, but they are effective for progress reporting and control. They are not project management plans. Bar charts do not help organize the project as effectively as a WBS and a network diagram do They're completed after WBS in the network diagram in the Project Management Process Control Schedule. Schedule Control means looking for things that are causing changes and influence in the sources of the change. If the project could no longer meet the agreed upon completion date or the schedule baseline, the project manager might recommend the termination of the project before any more company time is wasted. 15. Cost Management - Chapter Overview: Cost Management Cost Management chapter Overview. The concept of earned value is one of the most critical topics of this chapter. For earned value, the PMP exam can have from 10 to 15 questions. More than half of the questions on earned value require you to perform calculations in this chapter. We will have in depth understanding of this concept so that the exam becomes easy for you. Time management and cost management are strongly connected. Many of the topics covered in cost management are covered in time management as well. In the time management chapter, we studied the creation of work packages. These work packages were further biopic ated as activities in multiple projects. Cost estimates are created based on these activities. However, in large projects, cost estimates are created at control account level. This level will be equal to a work package level or higher than that cost management plan. Though the cost management plan is a required part of the project management plan. Unlike time and scope management, it is not listed as a part of formally defined cost management process. The Develop Project Management plan in Integration management involves the creation of the cost management plan cost and budget. These two words are used interchangeably in the exam. It is important to note that the step of creating the cost management plan exists irrespective of word is created. The cost management plan focuses on planning cost for the project, managing project to the cost control cost and manage cost variances. The cost management plan forms a part of the project management plan. Like other project management plans, even cost management plans require proactive thinking cost management plan. Some important steps involved in the cost management plan are the way in which the cost estimates should be stated. Cost estimates, accuracy levels. Instructions for identifying, tracking and reporting cost performance reporting formats by ification and definitions of direct and indirect costs. Maximum cap for cost expenditure. Change control procedures required for cost changes. Maximum cap for cost expenditure allows project managers and members to allow variation for cost as the cost increases beyond the ceiling. Provided actions should be taken to control it. These ceiling numbers or the maximum cap are proactively thought through by the project manager in the cost management planning stage. Life cycle costing life cycle costing is taking into consideration the whole life of the product and not just the cost of the project. For example, AH product costs $50,000 which has a very low maintenance cost of $5000 over its life period. An alternate product is available for 38,000. However, it has higher maintenance costs amounting to 50,000 over the product's life. As a project manager, would you prefer reducing the cost of the project by saving $12,000 by buying the alternate product? Remember if this increases the maintenance cost for the company by $45,000? Or would you taking in consideration the entire life cycle costing of the product and forego $12,000 for a future saving of $45,000 for the company? You will be going with option one, considering the life cycle costing the product, which is, though it costs more initially, the maintenance cost is much less value analysis. Value analysis focuses on decreasing costs of the project without any degradation in scope and performance levels. Ah, systematic identification of various functions, assignment of values to those functions, and identification of less costly resources and activities to be performed maintained. The performance levels is done in value analysis. Value analysis concurs with value engineering cost risk any risk related to cost such as procurement risk. Cost management risk is termed as cost risk. This risk is not just covered in risk management and requires to be covered in all phases of the project. Estimate costs. This process is related to estimating costs for each identified activity of the project. The costs required to complete the project involved quality efforts, risk efforts, project management activities, resources, direct and indirect costs, overhead costs and others types of cost. There are two types of cost variable cost as understood by the name. These costs vary with the amount of work being done. For example, cost of raw material labour wages, etcetera, fixed cost these air non variable costs. These costs are fixed and include set up costs, working capital, lease or rent etcetera. AH cost can be direct or indirect cost direct costs. The costs that could be directly attribute it to the work done in the project is considered as direct costs. Examples include travel and entertainment expenses, stationary cost, labor salaries, etcetera, indirect costs, the overhead items or costs incurred that could not be apportioned to a specific project or activity and can be used for multiple projects are termed as indirect costs inputs to estimating costs. Following are the inputs that help in estimating costs better and quicker scope. Baseline Scope Baseline includes the Project Scope Statement, WBS and WBS Dictionary. It helps in allowing the project manager to know what is in scope and what is out of scope . Project schedule. A schedule is required before a budget is created. The project schedule contains the list of activities, the allocated resources and the time when work will occur. Cost expenditure can be controlled if the project team is aware of the timing on when to buy the product. The other way that it can be controlled is when project expenditures are made in a time phased manner. Thus a schedule can affect cost. Likewise, cost can also affect the schedule if in activity is to be executed on a project. When the cost of purchasing the raw material is very high, the activity may need to be pre pone door postponed for the reasons to accommodate the surgeon. Praise inputs to estimating costs. Human resource plan this system to reward project members rates of labor required a number of resources or individuals required for the project, and their costs are arrived at by the human resource plan. This plan enables the project manager to keep the resources motivated, toe work, achieving savings and still ensuring the cost of the project is controlled. Risk register risk is an effective contributor to reduce time and money associated with the project. Cost is required to the work needed to manage and control risks. These costs can also lead to more risks, such as cost risks. Thus risk is both an input and output of estimate cost process inputs to estimating costs, historical records and lessons learned. Historical records from past projects are extremely helpful to make the cost calculations and the estimates easier the templates provided by such records and help in executing these efforts faster and quicker enterprise environmental factors, estimation of cost is done by the conditions prevailing in the marketplace and the costs required for commercials. Products are procured from several vendors. It is also advisable for the project manager to review these sources and understand the effort of estimation project management costs. Project management efforts also required costs the expense of the project manager status reports. Change analysis, execution etcetera are included in these costs. How was estimating done? Costs can be estimated using the methods that we have already learned in the Time management chapter, for example, one point estimating analogies, estimating Parametric estimating and three point or P E. R T. Estimating another method of estimation that we will now study is bottom up estimating technique. Bottom up, estimating ah project is finally distributed in the form of activities and work packages. The technique of bottom up estimating involves estimation of costs involved in each activity or work package, rolling it up into controlling units and then finally to the overall project estimate. This is another reason why a WBS should be well created by the Project team. How to Create cost Estimates. The process of creating estimates involves the following Project management software. Project management software can help in speeding up the calculations required to estimate costs. These calculations could include direct indirect overhead fixed cost calculations for several 100 activities determining resource cost rates. Resources can be internal human resources vendors, consultants, suppliers, external technicians, among others. Project managers must have a know how of the rate involved for the resource cost. How to Create Cost Estimates, Reserve analysis Reserve analysis involves identification of activities which have significant risks and determination of the total efforts, time and money required to manage these risks if they occur. There are two types of risks. No one and unknown risks Contingency reserves deal with no one risks management reserves deal with unknown risks. Padding should be avoided when doing a reserve analysis. Cost of quality quality efforts are required for the project. The amount of money added due to these efforts are Byford skated as cost of quality. 16. Cost Management - Accuracy of Estimates: cost management accuracy of estimates. Estimation of costs is an iterative process. Costs estimated during early stages of the project have lesser accuracy, and the ones estimated at later stages have higher accuracy. Cost estimations to be made by the project manager in the form of ranges. Thus, the rangers will be higher at the start of the project and will narrow down as the project progresses. There are different types of ranges for different scenarios, such as for preliminary cost estimation. The range will vary for cost estimation. During the conceptualization stage, the range will vary, and similarly for feasibility and the final estimation, the ranges of will vary. The rangers will narrow down from broad level toe lower levels. Accuracy of estimates continue rough order of magnitude or rahm estimate. This estimate is generally made during the project initiation phase. A typical range of estimates for Rahm is plus or minus 50%. However, this percentage will vary depending on how much is known by the project team. About the project went creating estimates budget estimates done during the project planning stage. The range varies from minus 10% to plus 25% definitive estimate. It is a more refined project cost estimate. Ah few project managers use a range of plus or minus 10% and others use minus 5% to plus 10% of range from the actual. When the estimate cost process is completed, it results into activity. Cost estimates with the explanation of how these costs were derived changes or updates to the other project management documents such as the risk register, change control register, among others determined budget. In the process, the project manager determines the amount of funds the organization needs to have available for the project by calculating the total cost of the project. This calculation leads the creation of a budget. Ah project manager must perform a risk management activities and include reserves, contingency and management when estimating the total cost of the project. The cost budget is the cost of baseline plus management reserves. The cost budget indicates the total money the organization should have allocated for the project determined budget for the creation of a budget. The process of cost aggregation is used in this concept. The activity costs are rolled up into work package costs work. Package costs are then rolled up into control account costs and control account costs are finally ruled up into project costs. Contingency cost is added to the cost. Base line management reserves are added as a final step. Determined budget comparison of cost baseline and cost budget is done by the project manager to Parametric estimates, expert judgment or historical records for a sanity check. If there are significant variances between their reference data and project estimates, the project manager needs to investigate and ensure that the estimates are correct. Checking of the cash flow is the next thing to do. There could be situations where the funding is not available when it is required by the project. Hence, all the activities need to be plant in a time phased manner and maybe showing as an S curve . The next step is to identify any constraints in the project charter. The project manager needs to reconcile the cost baseline and cost budget. With these constraints, the reconciliation is done as a part of the integration management process. If the project estimate exceeds the constraints, the project manager must meet the stakeholders and explain the reasons of exceeding the constraints and also share options to reduce project costs or else an unrealistic budget is made available and it is considered to be a project manager's fault. The output of determined budget process is the cost baseline. The efforts involved in determining the budget process may lead to changes and other project management documents control costs. The control cost process is focused on controlling the cost of the project, as described in any other knowledge area in the control section. Ah. Few activities that could be helpful for controlling costs include use of cost management plan. AH cost management plan helps the Project Manager plan for controlling the cost of the project. Use of organizational process assets organization policies, procedures, tools or reporting formats related to controlling the cost can be used prevention of unnecessary changes. This is an important activity. Prevention process involves identifying the root causes where high costs are involved and mitigating them measure costs. Another important factor that the project manager must be completely involved in throughout the life cycle of the project is measuring the project cost for variation from the baseline . This triggers either into corrective or preventive action. Progress reporting the project manager should avoid usage of guesstimates for reporting progress. One of the following techniques could be deployed by the Project Manager 50 50 rule and activity is considered 50% complete when it begins and gets credit for the last 50% all. Newman has completed 2080 rule and activities considered 20% complete when it begins and gets credit for the last 80%. Only words completed 0 100 rule and activity is considered 0% complete when it begins and gets credit for the 100% only leads completed earned value measurement. The benefits of earned value include providing the ability to the project manager to track the project cost very well, allowing the project manager to look at other, more productive aspects of the project. Not allowing any space for guestimation of project progress numbers. The performance measurement baseline is a combination of scope, schedule and cost baselines, earned value measures, project performance again scope, schedule and cost baselines. Performance measurement. Baseline earned value measurement is better because it integrates cost time and the work done or scope, and can be used to forecast future performance and project completion dates and costs. Earned value measurement. Let's understand a few important terms of earned value. PV planned value the estimated value of work planned to be done as of today. E v Earned value The estimated value of work actually accomplished as of today. A c actual costs or total cost the actual cost incurred for the work accomplished as of today. B A C budget at completion The budget The total budget of the total project E. A C estimate at completion A current forecast of total project cost E T. C. Estimate to complete an estimate of additional cost required to finish the project. A forecast v A C variants at completion a forecast of over or under budget at the end of the project. Earned value measurement formulas and interpretations. Cost variance CV E V minus A C negative is over. Budget positive is under budget schedule variants as V E V minus PV negative is behind schedule. Positive is ahead of schedule. Cost Performance index or CPI i e. V Divided by a. C. We're getting blank dollars worth of work out of every dollar. Spent funds are not being used efficiently. Schedule Performance Index SP i e. V Divided by PV. We are only progressing at blank percent of the rate originally planned estimate at completion. E a c As of now, how much do we expect the total project to cost blank dollars? Note. There are many ways to calculate e a C depending on the assumptions made. Notice how the purpose of the formulas is to focus. Created forecast based on the past performance on the project. A. C plus Bottom up E. T. C. This formula calculates actual cost, plus a new estimate to complete the remaining work. B A C divided by c p i. This formula is used if no variances from B A C have occurred. A C plus open brackets b A C minus e v close bracket. This formula calculates actual to date plus remaining budget A C plus open brackets B A C minus e v close bracket divided by open bracket CP I multiplied by SP I close bracket. This formula calculates actual to date, plus the remaining budget modified by performance to complete Performance index. TCP I Open bracket B, A C minus e v close bracket divided by open bracket B A C minus a C close bracket. This formula divides the work remaining to be done by money remaining to do it. It gives us a rate at which we must continue to work on the project. To remain in budget. Estimate to complete E A, C minus a C or re estimate. Re estimating the remaining work from the bottom up variants at completion. V A, C B A C minus e a c The over or under budget performance of the project at the end of the Project CP I can be calculated for costs incurred during a specific period of work. CP I can be calculated for costs incurred during a specific period of time, week, month, quarter etcetera rather than over all the time to date. In every formula. E V comes first For variants, the formula is E V minus something for index. The formula is e V divided by something when formula relates to costs. Use a C when formula relates to schedule. Use PV for interpreting variants. Positive is good and negative is bad for interpreting. In di sease, less than one is bad and greater than one is good 17. Quality Management - Chapter Overview: quality management quality management chapter overview, rework and defects are direct outcome of lack of attention to quality. The higher the rework, more time and money being wasted and busting the cost and schedule baseline lack of attention to quality need. This the adds considerable risk to the project, which results in tremendous amount of rework and added expense. It is important to know at the onset of the project on what acceptable quality is and how it will be measured on the project. This process of performing quality management process helps avoid many issues at a later stage of the project. Definition of quality. The degree to which the project fulfills requirements is defined as quality. AH project cannot achieve quality if all of the stated and unstated requirements are defined in the project Scope Statement. Definition of Quality Management The process of creating and following policies and procedures to ensure that a project meets the define needs it was intended to meet from the customer's perspective is termed as quality management. Quality management process ensures no deviations occur from the project requirements. Planned quality performed quality assurance and perform quality control are a part of quality management process quality theorists. Ah, few important quality theorists include Phillip Crosby. Phil Crosby propagated that quality is conformance to requirements. The concepts of cost of poor quality, prevention over inspection and zero defects were also popularised by him. Joseph Juran, Joseph Juran define quality as fitness for use and advocated involvement of top management to address quality issues. The 80 20 principal, developed by Wilfredo Peredo, was propagated by Joseph Juran W. Edwards Deming. The 14 points to quality management and Plan Do Check Act cycle were propagated by Dr W. Edwards Deming. Quality related PM I fax improvement recommendations to the standards, policies and procedures should be made by the project managers. It is observed that there always welcomed by the management changes to any of the project constraints should also lead to a quality check by project manager and his team. An activity or a work package should be checked for quality as it gets completed. Improving quality is one of the critical professional responsibilities of the project manager. The metrics to measure quality should be determined by the project manager before the project work begins. Ah plant to continually improve processes should be put in place by the project manager. Authorized approaches and processes have to be followed by the project manager. A few of the quality activities can be done by a quality assurance or quality control department. Gold plating. Gold plating is all about giving the customer extra value of the product, such as more functionality, higher quality parts, more scope than required or higher performance. Some organizations do have the policy that promotes adding value to customers and going over and beyond fulfilling the requests. It is not recommended by advanced quality thinkers and also P. M. I. The team's impression of what is valued by the customer and what the customer does not want is often termed as gold plating. Most projects have difficulty in achieving the objectives of the project. Gold plating can be done on certain projects and may not be done on certain others. This creates a gap in the customer's expectations and hence gold plating is not recommended . Prevention over inspection quality must be planned in and not inspected. This is a frequent concept on the examination marginal analysis, the point where the benefits or revenue that is to be received from improving quality equals the incremental cost to achieve that quality is termed as marginal analysis, continuous improvement or Kaysen in the PMP exam, Continuous improvement and Kaysen mean the same thing continuously. Looking for small improvements in the process is termed as continuous improvement. Kaysen is a Japanese word where K means change and Zen means for the better, just in time or J i. T. The concept of J. I t. Involves having the suppliers deliver raw materials just when they're needed, Thus reducing the inventory to close to zero. J. I. T has supplemented reduction in high inventory costs, which is unnecessary. Total quality management or T Q. M. This philosophy encourages companies and their employees to focus on finding ways to continuously improve the quality of their products and their business practices at every level of the organization. Responsibility for quality, the ultimate responsibility of the product or project quality lies with the project manager . However, the entire organisation has responsibility relating to quality impact of poor quality. Poor quality leads to increased costs, low morale, low customer satisfaction, increased risk reworks and schedule delays, understanding the difference between planned quality, perform quality assurance and perform quality control. Planned quality focuses on defining quality for the project, identifying how quality will be achieved. Perform Quality assurance focuses on work being done on the project, ensuring that the team follows the processes as planned to produce project's deliverables. Perform Quality control focuses on examination of actual deliverables of the project. Insuring deliverables are correct and they meet the planned level of quality plan quality. The plan quality process requires input from organizational process assets, enterprise, environmental factors, stakeholder register scope Baseline which is the scope statement. WBS and WBS Dictionary schedule. Baseline cost Baseline risk register Objective of planned poli process is identification of relevant organisation or industry practices, standards, requirements for quality of the project, product of the project and project management efforts. The output or result of the plan quality process is a quality management plan. As a part of plan quality process, the project manager needs to look for any standards that can help the project to avoid reinventing the wheel that can help in higher quality levels. Some available standards include I s 0 9000 created by International Organization for Standardization, or I S O, to help ensure organizations have holy procedures and that they follow them. Occupational safety and health administration O S H A O s H A set standards for safety of workers in the plant. The United Nations conventions on contracts for international sale of goods or C I s G the C I s G standard governed international sales transactions. The project manager should also measure that the project must comply with organizational process, assets and enterprise environmental factors. The project manager must also plan the project so that it meets customers quality standards . The project manager must then define any additional project specific standards and procedures that are needed. It should be noted that when the project manager defines additional standards and procedures, he should take appropriate care that these new practices do not violate other relevant standards. The project manager then needs to determine what work is required to meet those standards created for the project. Determination of specific measurements that will be made each week each month or for each deliverable should be made to ensure compliance with all standards. It is important to note that the level of quality efforts should be appropriate to the needs of the project. Quality must be balanced with other project constraints. Let's now learn a few tools and techniques used in plan quality process Cost benefit analysis. This technique helps the project manager weigh the benefits of the quality efforts versus the costs to determine the appropriate quality level and requirements for the project. Cost of quality C o que si o que involves looking at costs of conformance and non conformance to quality and creating an appropriate balance. The costs of conformance should be lower than costs of non conformance control charts. Control charts are set up in planned quality as a part of the effort to define quality on the project. They're utilized and perform quality control to help determine if the results of a process are within acceptable limits. During the perform quality control process samples are taken and plotted on the charts. The control chart shows whether the samples are within controlled limits. Ah control chart can be used to monitor project performance figures such as cost and schedule variances. It primarily helps monitor production and other processes to see if the results are within acceptable limits or in control. A special cause variation means the process is out of control. Upper and lower control limits control limits are acceptable range of variations of a processes results they're showing as two dashed lines. The acceptable range of measurements between the upper and lower control limits is set by the project manager and stakeholders. Based on the organization's quality standard. This range is calculated based on plus or minus three sigma standard deviations. Data points outside this range indicate the process is out of control, mean or average the mean is indicated by a line in the middle of the control chart. It shows the middle of the range of acceptable variation out of control. The process is out of a state of statistical control. When a data point falls outside the control limits or there are non random data points, these maybe within the upper and lower control limits, such as the rule of seven, think of out of control as lack of consistency and predictability in the process or its results. Rule of seven The Rule of seven is a thumb rule, also known as Eurest IX. It refers to a group or Siris of non random data points that total seven on one side of the mean the rule of seven tells the project manager that even if these points are within the control limits, they are not random, and the process may be out of control. Assign herbal cause or a special cause variation. If there is an assign noble cause or special cause variation, it means that Data Point or Siris of data points require investigation to determine the cause of variation. 18. Quality Management - Design of Experiments: quality management. This technique involves looking at other projects to get ideas for improvement on the current project and to provide a basic or benchmark to use in measuring quality performance . D o E uses experimentation to statistically determine what variables will improve quality. D o E is faster and a more accurate statistical method that allows project managers to systematically change all of the important factors in a process and see which combination has a lower impact on the project. Doing quality audits for all the manufactured products in a project might be a time consuming task. Here it is best to take a sample of a population. Sampling is used when auditing the population may take too long, it costs too much or auditing is destructive. The sample size and frequency of measurements are determined as a part of the plan quality process, and the actual sampling is done in perform quality control. AH flow chart shows have a process where system flows from beginning to end and how the elements into relate flow charts can be used in many parts of project management. Outputs of plan quality. Following are the results of the plan quality process, quality management plan. The quality management plan is the process to determine what quality is and to put a plan in place to manage quality quality metrics. The project manager needs to think through the areas on the project that are important to measure and decide what measurement systems are acceptable. Checklist. Ah quality check list is the list of items to inspect a list of steps to be performed or a picture of the aim to be inspected with space to note any defects Found. Process Improvement plan The plan for improving the process is it's called the process improvement plan and it becomes a part of the project Management plan Process Improvement plan. Help save time by increasing efficiency and preventing problems. It also saves money and increases the probability that the customer will be satisfied. Project Management Plan and Project Document updates updates to the project management plan and project documents are needed throughout the project management process. Perform quality assurance. Perform Quality assurance is an execution process that is performed while the project work is being done. Follow mint tools and techniques are used by perform quality assurance, process, planned quality and perform quality control tools and techniques. The tools and techniques of planned quality and perform quality control processes are used as a part of perform quality assurance process quality audits. A team of auditors is responsible to see if the project is complying with company policies , standardized practices and procedures, and to determine whether the policies, practices and procedures being used are efficient and effective. Perform Quality Assurance process Analysis. The process analysis should be planned in at certain points in the project. Process Analysis is a part of continuous improvement effort on a project and focuses on identifying improvements that might be needed in processes. Outputs of perform quality assurance perform quality assurance leads to the following outputs. Change requests, updated standards and processes. Updated project. Mandarin plan and project documents. Perform quality control. Perform Quality control is a process of ensuring a certain level of quality and deliver verbal, whether it be a product or a service control meets measure and that is a major function of perform quality control process. It measures products or services to determine whether they meet the quality standards in large companies. Ah quality control department may complete much of the quality control work and report the findings to the project manager, the project manager must be able to read and understand the quality Measurement reports. Quality control occurs throughout the life of the project. Perform quality control. A few important terms related to quality control are described. Mutual exclusivity to events are said to be mutually exclusive. If they cannot both occur in a single trial. Probability probability refers to the likelihood that something will occur. It is expressed as a decimal, or a fraction on a scale of 0 to 1. A normal distribution. A normal distribution is a shape of a bell curve and is the most common probability density function. It is used to measure variations. Statistical independence, statistical independence means the probability of one event occurring does not affect probability of another event occurring standard deviation or sigma a measure of range. Is it standard deviation? This concept is also sometimes stated as a measure of how far you are from the mean seven basic tools of quality. The following tools Air known as seven Basic tools of quality cause and effect Diagram flow chart HIST O Gram Pareto Chart Run chart Scatter Diagram Control Chart Cause and effect diagram, Fish diagram or issue. Call What diagram? The PMP exam has used the following types of phrasing to describe cause and effect. Diagram. Ah, creative way to look at the causes of a problem helps stimulate thinking. Organized thoughts and generate discussion can be used to explore the factors that will result in a desired future discussion. Hist o gram ah hissed a gram displays data in the form of bars or columns. This tool shows what problems are worth dealing with. A typical hissed a gram presents data in no particular order Pareto chart or Pareto diagram . Ah, Pareto chart is a type of hissed a gram, but it arranges the results from most frequent to least frequent to help identify which root causes or resulting in the most problems. It is based on the 80 20 rule, which states that 80% of the problems are due to 20% of the causes. Pareto charts helped focus attention on the most critical issues. Prioritized potential causes of the problem separate the critical few from the trivial. Many brunch art are run. Chart allows the project manager to look at history to see if there is a pattern of variation. It is a useful tool for controlling quality scatter diagram. A scatter plot is often employed toe. Identify potential associations between two variables where 1 may be considered to be an explanatory variable, such as years of education and another baby considered as a response variable, such as annual income, outputs of perform, quality control, the outputs of perform quality control process our measurements validated changes, updates to project Mandarin plant and project documents, change requests, lessons learned and validated deliverables. 19. Human Resource Management - Chapter Overview: Human Resource Management Human Resource Management chapter. Overview. Human resource management involves an integral part of project management is an important function of human resource, which is creating recognition and reward system team members. Competencies need to be improved and his critical responsibility of a project manager executing process groups primarily includes human resource management. Human resource activities done by a project manager requires documentation and his formal in nature. Formal roles and responsibilities are to be assigned to project team members to assist the project manager Ineffective Project execution. An important note. The exam takes into consideration that the organization is operating in a matrix environment. Hence, topics such as motivation, theories and powers of a project manager are critical. Project is coordinated by the project manager and planned by the teams. Resource availability must be continually confirmed by the project manager. The project team consists of a project manager, project management team and other team members of a project. Ah Project Management team includes some of the team members to help assist the project manager with project management activities. Team building activities are a required part of the project management. A project manager formerly plans team building activities in advance. The project manager must track team member performance. The human resource responsibilities increase as the size of the project team increases. The human resource management process involves identification of team members, defining roles and responsibilities, creation of reward systems, improving team members, performance tracking team and individual performances. Human resources can be divided into administrative and behavioral management topics. Their everyday knowledge and work experience should help you answer most of the questions, rules and responsibilities. Clear identification of rules and responsibilities of management, team members and other stakeholders on the project. Using tools. Such a responsibility. Assignment Matrix is a key activity of a project manager role of a project sponsor or initiator. Ah, sponsor is the one who provides financial resources for the project for the purpose of PMP exam. Ah sponsor could also be a customer, senior management or others. Management serves as a protector of the project rule of a sponsor. The rule of a sponsor prior to or during project initiation has requirements that must be met is a project stakeholder advocates four or champions. The project, especially while the project concept is being put together, served as a voice for the project or spokesperson to those who do not know about the project, including upper management, gathers the appropriate support for the project. Insurers buying throughout the organization provides funding, provides the project Statement of work, provides information regarding initial scope of the project, may dictate milestones, key events or the project and date. Determines the priorities between the constraints. Provides information that helps develop the project. Charter gives the project manager authority as outlined in the project. Charter. Helps organize work into appropriate projects, sets priorities between projects. Encourages the finalization of high level requirements and scope by the stakeholders. Guides the process to get the project approved and formalized. Assisted by the project manager as necessary. The rule of a sponsor during project planning. Provides the project team with time to plan. May review with the WBS supplies list of risks. Determines the reports needed by management to oversee the project. Provides expert judgment. Helps evaluate trade offs during crashing fast tracking and re estimating. Approves the final Project management plan. The role of a sponsor during project execution monitoring and controlling protects the project from outside influences and changes. Enforces quality policies, provides expert judgment. Helps evaluate trade offs during crashing fast tracking and re estimating resolves conflicts that extend beyond the project. Managers Control, approves or rejects changes or authorizes someone representing him or her to do so. May direct that a quality assurance review is performed. Clarifies scope questions. Works with the project manager to monitor progress. The role of a sponsored during project closing. Provides formal acceptance of the deliverables. Supports the collection of historical records from past projects. Role of the team. The team is a group of people who complete work on the project. The team may help to identify and involve stakeholders. Identify requirements, identify constraint and assumptions. Create the WBS decomposed work packages for which they're responsible into schedule activities. Help identify dependencies between activities. Provide time and cost estimates. Participate in risk management process. Comply with quality and communications plan. Help enforce ground rules. Execute the project management plan to accomplish work defining the project scope statement . Attend project team meetings. Conduct process improvements. Recommend changes to the project, including corrective actions. Some team members may have project management responsibilities in addition to responsibilities of implementing work. If so, they're considered part of the project management team role of stakeholders as a group. The stakeholder is anyone who can positively or negatively influence the project, including the customers or users. The project manager and team, the projects Sponsor program and portfolio managers. The PMO functional managers within the organization, an external sellers that provide services or materials for the project. The state quarters may be involved in the creation of the project Charter and the Project Scope Statement. Project Management Plan development. Approving project changes and being on a change control board. Identifying constraints, identifying requirements and risk management. The stakeholders may also become risk response owners. Role of a functional manager AH functional manager manages and only the resources in a specific department such as I t engineering, public relations or marketing, and generally directs the technical work of individuals from that functional area who are working on the project. The degree to which a functional manager is involved in the project depends on the form of organizational structure in a matrix organization. The functional manager shares responsibility for directing the work of individuals with the project manager in a project ized organization. The project manager does all of the directing in functional organization. The functional manager does all of the directing. It is the responsibility of the project manager tow. Avoid any conflict with the functional manager and coordinate the respective needs regarding the use of resources to complete the project. Work. The activities of a function manager may include assigning specific individuals to the team and negotiating with the project manager regarding resources, letting the project manager know of other projects that may impact the project. Participating in the initial planning until work packages or activities are assigned. Providing subject matter expertise. Approving the final scheduled during scheduled development. Approving the final project management plan during the Project Management Plan Development . Recommending changes to the project including corrective actions. Managing activities within their functional areas. Assisting with problems related to team member performance. Improving staff utilisation. Role of a Project Manager The rule of a project manager is to manage the entire project to meet its objectives. The rule description is given below assigning to the project no later than project initiating helping right. The project Charter in charge of the project, not necessarily the resources does not have to be a technical expert, influences the project team and the atmosphere in which the team works by promoting good communication, insulating the team from having to deal with politics, enhancing the positive aspects of cultural differences and resolving team issues. Insurers professional interaction between the project team members and other stakeholders. Coordinate interactions between the project and key stakeholders. Select appropriate processes for the project. Identifies and directs project planning efforts. Identified dependencies between activities. Must understand how to handle unrealistic schedule requirements to produce a realistic schedule. Understands and enforces professional and social responsibility. Identifies and delivers required levels of quality assists the team and other stakeholders during project execution. Defines the Project Change Management plan. Maintains control over the project by measuring performance and determining if there any variances from the plan. Determined the need for change requests, including recommended corrective and preventive actions and defect repair, and either approves or rejects changes as authorized or submits the change request that the Change Control Board uses metrics to see variances and trends in project work. Works with team members to resolve variances from the project Management plan keeps the team members focused on risk management and possible responses to the risks develops. Time and cost reserves for the project must have the authority and accountability necessary to accomplish the project management work, I must say no when necessary. The only one who can integrate the project components into a cohesive whole that meets the customer's needs spends more time being proactive than dealing with problems or being reactive accountable for project success or failure. Performs project closing at the end of each phase and for the project as a whole performs or delegates. Most of the project management activities overall applies project management knowledge and uses personal on leadership skills to achieve project success. Role of a portfolio manager. The portfolio manager is responsible for governance and an executive level of the projects or programs that make up a portfolio. A project is included in a portfolio based on the value of the project. The potential return on investment, whether it meets the corporate strategy, whether the level of risk associate with the project is acceptable and other factors critical to organizational success. The rule of a portfolio manager may include managing various projects or programs that may be largely unrelated to each other. Ensuring selected projects. Provide value to the organization, working with senior execs to gather support for individual projects and getting the best return from the resources invested role of a program manager. The program manager is responsible for managing a group of related projects. Projects are combined into programs to provide coordinated control, support and guidance. The program works to meet project and programme goals. The role of the program manager may include managing related projects to achieve results not obtainable by managing each project separately. Ensuring selected projects. Support the Strategic holding Organization, providing oversight to adjust projects for the programs. Benefit and guiding and supporting individual project managers efforts. 20. Human Resource Management - Responsibilities for Project Managers: human resource management, human resource responsibilities for project managers. The trick to correct the answer exam questions about this topic is to realize that as a project manager, you have responsibility regarding team members. Some of these air ethical responsibilities while others are administrative. The best way to approach administrative responsibilities is to think of your team as if their employees who report directly to you project managers have some responsibilities similar to those of a manager or owner of the resources. The list of responsibilities of the project managers is to determine the resources required for the project, negotiate with resource managers for optimal available resources, create a Project team directory, create project job descriptions of four team members and other stakeholders. Make sure all rules and responsibilities are clearly assigned on the project. Understand the team members need for training related to their work on the project and make sure they get the training. Create a formal plan covering such topics as how the team will be involved in the project and what rules they will perform. Ah, human resource plan. Insert reports of team members performance into their official company employment record. Send out letters of commendation two team members on their bosses makes your team members needs are taken care of. Create recognition and reward system. Develop Human Resource plan. One of the outcomes of develop human resource plan is defining the roles and responsibilities of team members. The develop human resource plan process involves enterprise environmental factors. The project manager needs to identify the organizations involved in the project. Existence of hidden agendas are contracts available? Is training available for project team members, among others? Organizational process assets organizational process acids such as processes, procedures, historical information are effectively used in developed human resource plan process, organization charts and position descriptions. There are multiple ways to record and communicate rules or responsibilities, including responsibility, assignment, matrix organization, breakdown structures, resource breakdown structures and position descriptions. Additionally, any rules and responsibilities expected of the team members need to be clearly assigned. In addition to the project activities, the team members are expected to complete responsibility. Assignment Matrix. This chart is used for cross referencing team members with activities or work packages there to accomplish R. A. C. I chart responsible, accountable consult and inform. This chart is a form of responsibility Assignment matrix that defines role assignment more clearly than the Matrix discussed earlier. Organizational breakdown structure This chart shows responsibilities by departments. Resource breakdown structured The resource breakdown structure breaks the work down by type of resources. Position descriptions Position descriptions are like job description, but only created for project work. They're usually documented in text format. Human Resource Plan AH Human resource Plan is an output of developed human resource plant. The human resources planning requires a plan for when and how. Team members Air added, Managed, controlled and released from the project, the human resource plan includes roles and responsibilities. Project Organization Charts. Staffing Management Plan Staffing Management Plan Staffing Management Plan is a part of the human resource plan and includes plan for staff acquisition, resource calendars, staff release plan, staff, training needs, rewards and recognition, compliance and safety rewards and recognition system Planning. A system to reward resources can be a significant effort. Ah, project manager must be able to motivate the team, especially been working on a project in a matrix organization. Rewards and recognition is one of the most effective ways to motivate and game cooperation from your team. Regardless of the reporting relationship, the reward system might include several actions, such as, say, thank you more often. Award prizes such a team. Member of the month Recognition award. Prizes for performance Recommend team members for raises or choice work assignments. Send notes. Two team members. Managers about great performance Planned milestone parties Rather celebrations acquired training for team members. Adjust project to assign people to activities they have been waiting toe work on or remove them from disliked activities as a reward. Creating a reward and recognition system requires planning in advance of starting the project. Work resource hissed. A gram resource hissed a gram is a bar chart that shows the number of resources used per time period and where there is a spike in the need of resources. Acquire Project team. The inputs to the choir project team process include the Project management plan. The Human Resource Plan, which is a part of the project management plan, is required. Enterprise, environmental factors, organizational process, assets. Acquiring the project team involves the following. There could be some resources who are pre assigned to the project. Knowing those resources and confirming their availability, it's required best Possible resources should be negotiated by the project manager hiring new employees working with virtual teams managing risk of scarce resources. Pre assignment. Some resources are assigned in advance to the project. Ah, project manager has to work with these resources negotiation. Some resources may have to be acquired through negotiation to negotiate resources from within the organization. The project manager should know the needs of the project and his priorities within the organization. Be able to describe the w i i f m or what's in it for me to the resource manager by assistant the project manager. Do not ask for the best resources if the project does not need them. Be able to prove why the project requires the state of quality and quantity of resources. Use of network diagram and project schedule is helpful. Work with Resort's manager to deal with situations as they arise. Virtual teams Virtual teams do not meet face to face. Thus you can have the best of team members from different parts of the world. Halo effect. The halo effect is something to be aware of when dealing with team members. There can be a tendency to rate the team members high or low on all factors due to the impression of a high or low rating on some other specific factor develop Project Team Developed Project Team is a part of project execution. The process generally results in decrease turnover, improved individual knowledge and skills, and improved teamwork. Team building activities. Team building activities helped the project team work as a cohesive group working for the best interest of the project and thus enhances the project performance. Ah, few things to know include It is a project manager job to guide, manage and improve the interactions of team members. Trust and cohesiveness amongst team members should be improved by the project manager. All project activities should include team building activities throughout the life of the project. Team building activities require concerted efforts and continued focus. WBS creation is a team building tool. Team building should start early in the life of the project. Team Building Team building is also a science there. Formally identified stages of team formation and development stages are forming. People are brought together as a team storming. There are disagreements as people learn to work together nor Ming team members begin to build good working relationships. Performing the team becomes efficient and works effectively together. Adjoining the project ends and the team is disbanded. Team building activities can include taking classes together, milestone parties, holiday and birthday celebrations outside of work trips, creating the WBS and getting everyone involved in some planning exercises. Training training opportunities for team members help improve their skills. They also decrease overall project costs and scheduled by increasing efficiency. Conducting training is a cost to the project and should be paid by the project. It should be documented in the human resource plan. Ground rules ground rules help establish standards and expectations for the team. The rules can address honesty in all communications conflict resolution methods, escalation procedures, whether it is allowable for people to enter up with another team member. Acceptable ways to interrupt when someone is talking during the meeting. Consequences of late attendance rules for taking phone calls, email etiquette. Reading text messages during the meeting and setting rules could help eliminate conflicts or problems with the team during the project because everyone knows what's expected of them . For virtual teams, ground rules are especially important co location or war room. A project manager might try to arrange for the entire team in each city toe have offices together in one place or one room. This is called co location and helps improve communication. Decreased the impact of conflict since all the parties air right there and improves identity for the project team and for management in a major organization. Ah, War Room is a center location for project coordination. Ah, War room is used for creating WBS network diagrams schedule, etcetera, rewards and recognition as defined in the human resource plan. The project manager appraises performance and gives out team member appropriate rewards and recognition in the Developed Project Team Process Team Performance Assessment. The project manager completes formal and informal team performance assessments as part of developing the project team. These assessments evaluate and enhance the effectiveness of the team as a whole. 21. Human Resource Management - Manage Project Team: Human Resource Management Manage Project Team Managed Project Team involves day to day management of people Developing The team is different from managing the project team. It involves encouraging good communication, working with other organizations, using negotiation skills, using leadership skills, observing what is happening, using an issue log, keeping in touch, completing project performance appraisals, making good decisions, influencing the stakeholders, being a leader, actively looking for and helping resolve conflicts that the team members cannot resolve on their own observation and conversation. Ah, little attention to things such as tone of emails. Phone conversations can tell us what's happening. The project even for virtual teams. Ah, project managers to continue to talk to people instead of just looking at the reports to understand the nerve. The project Project Performance Appraisals, Evaluation of employees performance by their supervisors is termed as project performance appraisal. These days of 360 degree review has started taking place where feedback from supervisors, subordinates and even co workers included. It helps in providing a clear picture of actual performance issue. Log issue logs help project managers effectively control issues so they don't impact the project. It is used to manage team members and stakeholders. Powers of the Project manager One of the major difficulties for a project manager is getting people to cooperate and perform. This is a major issue in a matrix organization. The different types of power for the project managers include formal Legitimate. This power is based in the position of the project manager reward. This power stems from giving rewards penalty coercive. This power comes from the ability to penalize team members. Expert. This power comes from being the technical expert or even the project management expert. Referent references the power of charisma and fame. This power comes from another person liking the project manager, respecting him or wanting to be like him. Management and leadership styles. Ah, project Manager needs to use multiple leadership approaches throughout the life cycle of a project. The term is called situational leadership. It refers to using different leadership styles based in the people and project work he or she is dealing with. The leadership in management styles include directing. This style involves telling people what to do facilitating when facilitating project managers coordinate input of others. Coaching in coaching, the manager helps others achieve their goals, supporting a supporting leadership style means the project manager provides assistance along the way. Autocratic. This is a top down approach here. The manager has the power to do whatever he or she wants. Consul Tate it. This is a bottom up approach. It uses influence to achieve results. The manager obtained others opinions and axes. The servant for the team, Consul Tate of Autocratic. In this style, the manager solicits input from team members but retains the decision making authority for him or herself. Consensus. This style involves problem solving in a group and making decisions based on group agreement. Delegating with the delegating style, the manager establishes ghouls and then gives the project team a sufficient authority to complete the work. Bureaucratic This style focuses are following procedures exactly. Charismatic, charismatic managers energize and encourage their team in performance, project work, democratic or participative. This style involves encouraging team participation in the decision making process. Lazy Fair. The French term Lazy Fair has been translated as meaning allowed to act allowed to do or leave alone. A lazy fair manager is not directly involved in the work of the team, but manages and consult is necessary. This style could be appropriate with a highly skilled team. Analytical. This style depends on the manager's own technical knowledge and ability. Analytical managers often make the technical decisions for the project, which they communicate to their teams. Driver, a manager with the driver style, is constantly giving directions. His or her competitive attitude drives the team to win. Influencing the style emphasizes teamwork, team building and team decision making. These managers worked with their teams to influence project implementation. Conflict management conflict is inevitable because of the following reasons. Requirements of many stakeholders. Limited power of the project manager. Necessity of obtaining resources from functional managers. Conflicts can be avoided by informing the team of exactly where the project is headed. Project constraints, Objectives. The content of the project charter all key decisions and changes. Clearly assigning work without ambiguity or overlapping responsibilities. Making work assignments interesting and challenging. Following good project management and project planning practices. The seven sources of conflict and the order of their frequency. Our schedule, project priorities, resources, technical opinions, administrative procedures, cost and personality conflict is best resolved by those involved in the conflict Conflict resolution. The key conflict resolution techniques are confronting or problem solving confronting me in solving the real problem so that the problem goes away. Confronting leads to a win win situation Compromising this is a lose lose situation since no party gets everything. This technique involves finding solutions that bring some degree of satisfaction to both parties, withdrawal or avoidance. In this technique, the party's retreat or post corn decision on a problem did it with problems is a PM I ism. Therefore, withdrawal is not usually the best choice for resolving conflict. Smoothing or accommodating. This technique emphasizes agreement rather than differences of opinion. Collaborating In this technique, the parties try to incorporate multiple viewpoints in order to lead to consensus Forcing. This technique involves pushing one viewpoint at the expense of another problem solving method. Problem solving method could include. Define the root problem, analyze the problem, identify solutions, pick solution, implement solution, review solution and validate improvement. Other important terms, topics and theories. Expectancy theory. Employees who believe their efforts will lead to effective performance and to expect to be rewarded for their accomplishments will remain productive as rewards meet their expectations. Arbitration in arbitration neutral party here's and resolve the dispute prerequisites or perks. Some employees receive special rewards such as a bonus gain. Share good offices, etcetera, fringe benefits. There are standard benefits formally given to employees such as educational benefits, insurance and profit sharing. Motivation theory here. Four. Motivation Theories of project manager needs to know. McGregor's theory of X and Y. McGregor believed that all workers fit into one of two groups. X and y Theory. Ex managers who accept this theory believe that people need to be watched every minute. They believe employees are incapable, avoid responsibility and avoid work whenever possible. Theory y Managers who accept this theory believe that people are willing to work without supervision and want to achieve. They believe employees come direct their own efforts. Mass knows hierarchy of needs. Maslin Pyramid, also called Hierarchy of needs, includes vigil. AJ iCal needs safety Needs, social needs, Esteem, Needs and Self Actualization needs. Hertzberg's theory. Hertzberg's three deals with hygiene factors and motivating agents. Hygiene factors. Poor hygiene factors may destroy motivation, but improving them under most circumstances will not improve motivation. Hygiene factors are not sufficient to motivate people. Examples of hygiene factors are working conditions, salary, personal life, relationships at work, security and status motivating agents. What motivates people is the work itself, including such things as responsibility, self actualization, professional growth and recognition. This brings us to the end of the human resource management chapter. The work that is done as part of creating the human resource plan on a project and acquiring, developing and managing the team greatly impacts the next knowledge area communications management. 22. Communications Management - Chapter Overview: Communication Management Communication Management Chapter. Overview 85% to 90% of a project managers time is spent in communicating. Communication related issues are the most frequent problems faced by the project manager. There is a need of structured communications management plan. Communicating on projects requires an understanding of understanding the communication requirement from stakeholders, sharing with state colors on what communication is required from them and frequent updates to communication plan as per changing needs of the project stakeholders, the project managers need to be experts and project management and stakeholders are technical experts in what needs to be done and how it needs to be done Proper Project Management Where's a project manager to identify the stakeholders, determine their requirements. Expectations that influence, then incorporate that information into the product or project scope as needed. Stakeholders are extremely important an indispensable part of any project. Ah, project manager during the initiation phase has the responsibility to identify the stakeholders and then throughout the life cycle of the project, should continue to manage your expectations, involvement and their influence on the project. Steps involved from stakeholder identification to manage your expectations. Influences throughout the project identify all the stakeholders determined all of their requirements determine their expectations. Determine their interests, determine their level of influence. Plan how the project manager will communicate with them, execute communication and manage their expectations and influence. The fall. Men are created or performed in the process of identify stakeholders. Stakeholder analysis. Stakeholder analysis involves identification of stakeholders assessing their impact or influence on the project. To achieve the above the project managers multiple ways he can use the initial list of stakeholders from the Project Charter. He can use records from past projects. He can also use data gathering techniques such as brainstorming and interviewing new stakeholders. Con's suggest additional names of stakeholders required for the project. Tools such as power or interest grids and salience models can be used to group stakeholders by qualifications like authority levels, impact or influence or requirements. The result of these classifications help project managers determine how, what and when to communicate with each stakeholder. Stakeholder register. Stakeholder register is an output of identify stakeholders process All the information about the stakeholders is compiled in the stakeholder register. In the given example, you conceive. This day colder Register has field for updating the name of the stakeholder, the title department, Contact Information and an impact section. The impact section includes major requirements, main expectations, influence want to five rolls in project responsibilities, and project and classification. Stakeholder management strategy. A strategy of how stakeholders will be managed is an output of identify. Stakeholders process either stakeholders are managed individually or as groups. Ah, project manager needs to identify which approach would be easier and less time consuming. Some stakeholders require more time and some less forgetting. Managed stakeholders could be an asset to the project where they may be a problem depending on how well the project is planned. Both negative and positive aspects of the stakeholders involvement in the project should be managed in the table. You will find the various stakeholder descriptions and relevant options for managing them. Go through each row of the table to understand how to effectively strategize for managing stakeholder expectations. Planned communications planning communications involves considering the performing organisations environment as in enterprise environmental factors, including its culture and expectations. The performing organisations, processes, procedures, historical records, lessons learned and other information such as organizational process assets should also be taken into consideration. The output is the communications management plan, which is a component of project management plan. During project initiating the efforts begin to identify stakeholders in the communication requirements in planning, it is determined how to apply that information the information communication needed The stakeholders are taken into consideration in the plan communication process. Planned communications A clear and concise communication requires handling communications in a structured way and choosing the best type of communication for the situation. Information can be expressed in the way described in the table. Formal written. It is used when there are complex problems for project management plan or project charter memos and communicating over long distances. Formal verbal, used during presentation and speeches. Informal, written, used for emails, hand written notes, text messages and instant messaging. Informal verbal used in meetings and conversations. Communication models. Project management requires a more structured approach to communications. Communication models are comprised of three parts. The center, the message and the receiver. Each message is encoded by the sender, gets transmitted to the receiver and is decoded by him. There are certain noise factors and communication models such as receivers, education, language, cultural effect of the way, the messages decoded by the receiver, effective communication for effective communication. The sender should decode the message. Carefully identified the communication method to be used to send the message and confirm if the message is understood, the centre can be aware of the fall Ament. Communication factors nonverbal. Most of what is communicated is non verbal. It is based on physical mannerisms. About 55% of all communication is non verbal. Para lingual pitch and tone of voice also helps to convey a message. Effective listening. The receiver should decode the message carefully and confirmed the messages Understood. This includes watching the speaker to pick up physical gestures and facial expressions, thinking about what to say before responding and using active listening, in which the receiver confirms that he or she is listening. Expresses agreement or disagreement or asks for clarification. Communication technology planning Communications involves determining the specifics of how to communicate each item. Communication can take place to face to face interaction by telephone, fax, mail or email through virtual or in person meetings and through Internet or Internet based forums for information. These different methods of communication is termed as communication technology, communication methods. Communication methods can be grouped into the following categories. Interactive communication. In this method, two or more people interact with each other. An individual provides information which is received by the other person, who then responds to the information given by the individual meetings. Conference calls and video conferences are examples of interactive communication push communication. Unlike interactive communication, this method involves sending the information to recipient with no expectation of receiving the feedback. This is one way streaming of information status reports. Mass mailers, project updates said to a large population are examples of push communication polar communication. In this method, the sender places the information in a central location like a SharePoint or a share drive , and the recipients responsible to use the information or need the information retrieved the details from that location. Control of communications. The project manager cannot control all of the information the project manager needs to control the flow of communication on the information shared in the communication. About 85 to 90% of the project managers time is spending communicating meetings. There are several rules for meetings. Some of them are meetings should have a time limit and the project managers and stick to it . Recurring meetings should be scheduled in advance meeting with the team should be regular, however, need not be that often. Each meeting should have a specific purpose and agenda. The agenda should be distributed to the meeting attendees before the meeting. Teams should stick to the agenda during meetings. Team members and meeting attendees should know their role in meetings beforehand. For example, one member could be the minute taker and the other could be a timekeeper. Meetings to include the right audience, effective facilitation and required by the project manager to chair and rules are to be kept in view for each action. The action owner and deliverable date to be assigned in the meeting minutes to be documented and published. Communication channels Communication channels could be calculated using this formula en open bracket n minus one Closed bracket divided by two Where n equals the number of people Communication management plan Ah communication management plan documents How the project manager manages and controls communication communications are very complex. Hence, communication management plan must be in writing. All stakeholder needs must be addressed. Communication management plan becomes a part of the project management plan. Distribute information. The project manager is responsible for distributing project with it information. Too many stakeholders of the project different stakeholders need to receive different information in various formats and the project manager should have identified in advance on what each stakeholder needs to know how and when implemented in the communications management plan is the output of distribute information process. A project manager should be able to distribute or send information and else needs to make sure that is effective and efficient for the recipient. Manage stakeholder expectations. Managing stakeholder expectations requires proactive actions from the project manager to make the stakeholders feel that their needs and concerns are at least being considered even if they're not agreed to. The efforts of managing stakeholder expectations also allows the communication channels to be open between the stakeholders and the project managers that the stakeholders conform, the project manager of potential risks, changes and other related information attention to stakeholders need is required for imagine expectations when the work is being done. This helps in building trust, resolving conflicts, preventing problems and increases belongingness of the stakeholder to the project. The project manager can review multiple project documents, such a stakeholder register, stakeholder management strategy, communication management plan, issue logs and changes to determine the accent required to manage stakeholder expectations . Communication blockers The communication blockers include noisy surroundings, improper encoding and decoding of messages making negative statements. Culture, language, hostility, distance between those trying to communicate, among others. Report performance collecting information related to work performance, analyzing it, creating reports and sending them to respective stakeholders is involved in reporting performance of the project. Report Performance is a part of communications management plan. The reports should provide all the information needed by stakeholders to the level of detail required by them. The needs of the projects should be considered while designed the reports. The most appropriate method is to be used to send the report. The method used to send reports, plays a crucial role in getting their reports red and acted upon. Ah, project manager must not spend all the time only doing reporting activities. The project management plan can be used to identify performance measurement. Baseline. This baseline could be used in the reports To measure the performance of the project, all reports must give a clear, concise and true picture of the information that's being depicted. Reports should not just include the schedule, but also include cost scope and quality performance as well. The appropriate moment of recommending and implementing corrective actions is no one by looking at the reports. Report. Performance includes Looking at the future. The different types of performance reports include status Report reports The current performance of the process against Performance Measurement. Baseline Progress Report described the Total Work Accomplished Trend Report Whether performance has an upward trend or downward trend is reported by the trend. Report Forecasting report. Future projects Status and performance is reported. Bases Current or historical data variance Report compares actuals to baselines Earned Value report. This report integrates scope, cost and schedule measures to assess project performance lessons learned documentation. Performance reports are used as lessons learned for future projects. This, concludes the Communication Management Chapter. Ah project managers should spend time in the early stages of the project to identify all stakeholders and take a structured approach to communications by creating a communications management plan. 23. Risk Management- Chapter Overview: risk management voice over Script Risk management chapter Overview Risk management is about anticipating risks and having a plan in place that will resolve it when it occurs. Risk management saves time, money and efforts. It reduces unnecessary stress on the project. Team risk management helped prevent many problems and helps make other problems less likely . Risk management activities are integral toe a project managers daily work through risk management. The project changes from being in control of the project manager to the project manager being in control of the project. Defining the concepts Risk management risk management includes risk management planning, risk identification, the qualitative and quantitative analysis of risks, risks, response, planning and monitoring, and controlling the risk responses. Risk management helps an increase in the possibility of positive offense on the project and effectively reduces the possibility of negative events in the project. Threats and opportunities Threats are events when occurred can negatively impact the project, whereas opportunities are events when occurred can positively impact the project. Up to 90% of threats identified and investigated in a risk management process can be eliminated. Uncertainty. Lack of knowledge about an event that may occur and reduce confidence in the conclusions drawn from the data is termed as uncertainty defining the concepts risk factors risks can have various factors, such as. How likely is the probability that the risk event will occur, the impact of the risk? When will the risk occur? During the course of this project, how many times will this risk occur? Risk averse An individual who avoids risk and thus does not want to take risks is known as risk averse risk tolerances and thresholds. The degree, or level of risk that is acceptable is known as risk tolerance. The specific point where risk becomes unacceptable is no. One as risk thresholds the risk management process in processes where risk management is effectively carried out, we see risk response. Planning is very robust. Hence, even if risks occur, they are eliminated. An agenda is set to discuss risk items in every meeting. There is always a plan to deal with any risk events. This result in getting additional time for the project manager to perform other critical activities related to his project, we will be studying six management processes, namely plan risk management, identify risks, perform qualitative risk, perform quantitative risk plan, risk responses and monitor and control risks plan risk management. The individuals involved in planning risk management include project manager, sponsor team, customer, other stakeholders and experts. Risk management process is structured and performed for the process. Risk management efforts is not limited to creating a standardized checklist basis. The experience gained from past projects. Risk management efforts should be based on the size, complexity and the skill levels of the project and Project Members plan. Risk management process involves planning the total time to be spent on risk management based on the needs of the project. It involves identifying the resources and the process of performing risk management. Organizational process assets are used effectively by the project manager to plan risk management outputs of risk management plan. The risk management plan may include methodology. The process are performing risk management is defined rules and responsibilities. Individuals involved in performing risk management's are identified budgeting. Cost of risk management process is determined. Timing the time when risk management process should start is determined risk categories. Brisk categories can involve definitions of probability and impact. The probability and impact of any risk is generally rated on a scale of 1 to 10 one being the lowest and 10 being the highest. However, since this is a subjective assessment of risk, even if different individuals rate the risk as six, they may have different definitions. Thus the definitions of probability and impact help in standardizing these interpretations and also help compare risks between projects. Stakeholder tolerances for a successful project tolerance Levels of stakeholders for different risk categories, such as cost quality, etcetera should be identified during project initiation and clarified regularly reporting formats. Reporting formats of any reports related to risk management are identified and finalized. Tracking risk management requires regular traction by those involved in the project. Hence, a tracking mechanism is to be defined for effective risk management risk categories. Risk categories can be broad, including the sources of risk that the organization has experienced. Some of the categories could be external government related regulatory, environmental market related, internal service related customer satisfaction related costs, related quality related technical, any change in technology related unforced CIA ble. Some risks. About 9 to 10% can be unforeseeable risks. In the PMP exam, sources of risk and risk categories can be used interchangeably like a work breakdown structure. These risk categories can be organized. It is called a risk breakdown structure or RBS types of risk. In addition to risk categories, there are more classifications of risk types business risk. It could be a gain or loss. Pure insurable risk. It only results in a loss. For example, robbery, fire etcetera identify risks. This process involves talking to all stakeholders and non stakeholders. It also involves reviewing organizational process assets. Project managers generally start risk identification from the onset of the project. High level risks are identified during the project. Charter creation phase. Detailed risk identification occurs during the planning process. The Project Scope Statement. WBS and WBS Dictionary. The Scope Baseline are critical inputs for risk identification in the PMP exam. Any question related to individuals involved in a risk identification has an ideal answer of everyone. For the exam. Risk identification is done during integrated change control when working with resources and when dealing with project issues, risk identification tools and techniques. Documentation reviews The standard practice to identify risks is reviewing project related documents such as lessons learned articles, organizational process, assets, etcetera, information gathering techniques. The given techniques are similar to the techniques used to collect requirements. Let's look at a few of them. Brainstorming brainstorming is done with the group of people who focus on identification of risk for the project. Delphi TECHNIQUE A team of experts is consulted anonymously. A list of required information is sent. Two experts responses air compiled and results are sent back to them for further review until a consensus is reached. Risk identification tools and techniques. Interviewing and interviews conducted with project participants. Stakeholders. Experts etcetera to identify risks. Root cause analysis. Root causes are determined for the identified risks. These root causes are further used to identify additional risks. SWAT analysis, strength, weakness, opportunities and threats, Strengths and weaknesses are identified for the project, and thus risks are determined. Checklist Analysis. The checklist of risk categories is used to come up with additional risks for the project. In PMP exam interviewing is also called expert interviewing Risk identification tools and techniques. Assumption analysis, identification of different assumptions of the project and determining their validity further helps in identifying risks. For the project. Diagramming technique diagramming techniques such as cause and effect diagram process flow charts. Etcetera can be used for identification of risks. Outputs toe, identify risks. This process of risk identification results in the creation of the risk register risk register. Our Risk Register is a living document that is updated regularly throughout the life cycle of the project. It becomes a part of project documents and is included in the historical records that are used for future projects. The risk register includes list of risks, list of potential responses, root causes of risks and updated risk categories. 24. Risk Management - Perform Qualitative Risk Analysis: risk management perform qualitative risk analysis. Qualitative risk analysis is a subjective analysis of the identified risks in this process of perform qualitative risk analysis. AH list of risk is identified by analyzing the process for possibilities of risks that may occur during the project phases. The probability of each risk is identified. Some project managers preferred using a low, medium and high scale, and the others rate on a scale of 1 to 10. Likewise, the impact of each risk is also ready using appropriate scale tools and techniques. Some of the tools that could be used for qualitative risk analysis include probability and impact matrix. The Matrix helps in identifying those risks, which require an immediate response. The Matrix may be customized according to the needs of the project. Most companies do have a standardized template for this matrix on project managers could leverage those templates as well. Use of standardize matrix makes the Matrix list more repeatable between projects. Risk data quality assessment data is correlated for the identified risks. The project manager tries to find the precision of the data that must be analysed for completing the qualitative analysis of risks for each risk in risk data quality assessment . The project manager needs to determine extent of the understanding of the risk data available quality and reliability of data. Integrity of data risk categorization Risk categorization means adding a category name. Teoh each risk or creating groups of identified risks. It helps in clear identification of the category of work packages, processes people or other potential causes. Having the most risks risk urgency assessment. A project manager should not only identify risks and determined responses to these risks, but also identify which of these risks requires urgent attention. Some project managers may look at the urgency of the risk, and the probability impact rating of the project risks outputs of perform Qualitative risk analysis. Risk register updates. Risk Register is updated with risk ranking for the project compared to other projects. List of prioritized risks and the probability and impact rating risk. Grouped by category. List of risks for additional analysis and response List of risks requiring additional analysis in the near term watch list or non critical risks and trends. Perform quantitative risk analysis. The next step of qualitative risk analysis is to analyze the probability and impact of risks and perform quantitative risk. The purpose of quantitative risk analysis is identification of risk response that requires urgent attention. Identified the exposure of risk on the project. Identify the impact of risk on the objective of the project. Determined cost and schedule reserves that could be acquired if risk occurs and identify risks requiring more attention. Investment refers the technique of identifying risks through quantitative risk analysis. A few actions are a part of quantitative risk analysis. They include determining quantitative probability and impact. Some of the techniques of quantitatively determining probability and impact of a risk include interviewing, cost and time estimating Delphi technique, historical records, expert judgment expected Monetary value analysis, Monte Carlo analysis and Decision Tree Expected Monetary value Analysis Expected. Monetary value is a good measure to determine the overall ranking of risks. The formula is E. M. V equals P times I, where e M. V equals expected monetary value, P equals probability and I equals impact. Monte Carlo Analysis. Simulation Technique. The Monte Carlo analysis simulates the cost or schedule results of the project. The primary inputs, but this analysis are the network diagram and estimates to perform the project. A Monte Carlo analysis requires a computer based program evaluates the overall risk in the project determines the probability of completing the project on a specific day or for any specific cost, determines the probability of any activity actually being on Critical Path. Path convergence is taken into account, cost and schedule impact can be assessed and results in a probability distribution decision . Tree Decision Tree Helps analyze many alternatives At one single point of time. They are models of riel situation. A decision tree takes into account future events in making the decision. Today, it helps calculate expected monetary value in more complex situations. It also involves mutual exclusivity, outputs of perform, quantitative risk analysis, risk register updates, prioritized list of quantified risks, amount of contingency time and cost reserves needed. Possible realistic and achievable completion dates and project costs with confidence levels versus the time and cost objectives for the project. The quantified probability of mean the project objectives Trends in quantitative risk analysis plan risk responses. The risk response planning involves determining ways to reduce or eliminate any threats to the project and also the opportunities to increase their impact. Project managers should work to eliminate the threats before they occur. Similarly, the project managers should work to ensure that opportunities occurred. Likewise, the project manager is also responsible to decrease the probability and impact of threats and increase the probability and impact of opportunities for the threat that cannot be mitigated. The project manager needs to have a robust contingency plan and also response plan. If contingencies do not work, it is not required to eliminate all the risk of the project due to resource and time constraints. Ah, project manager should review risk throughout the project. Planning for risks is iterated Qualitative risk, quantitative risk and risk response planning. Do not end one to begin work on the project. Risk Response strategies. The choice of response strategies for threats include Avoid focus on eliminating cause and thus eliminating the threat. Mitigate. There are certain risks that cannot be eliminated. However, their impact could be reduced. This is termed as mitigation of risks transfer. Transfer the risk to some other party insurance purchases. Warranties, guarantees etcetera are examples of risk transfers. The choices of response strategies for opportunities include exploit, add work or change the project to make sure the opportunity occurs. Enhance increase the probability and positive impact of risk events share. Allocate ownership of opportunity to 1/3 party. A response strategy for both threats and opportunities except passive acceptance leaves action to be determined as needed in case of a risk event. Active acceptance may involve contingency plans to be implemented if risk occurs, an allocation of time and cost reserves to the project, a decision to accept risk must be communicated to stakeholders. Risk response strategies and outputs of plan risk responses. Whenever the project manager is responding to threats or opportunities, execution of strategies must be time bound. Effort selected must be appropriate to the severity of the risk. A single response can be an action of multiple risk events. A strategy can be selected not only by the project manager but also by the team, the stakeholders and experts. Outputs of plan risk responses, risk register project management plans and project documents need to be updated as outputs of plan Risk responses Project management plan updates Project management plant could be updated by new work activities or packages that could be added removed or assigned to different resources, thus making planning and integrative process outputs of plan risk responses, risk register updates, residual risks. There are risks that remain after completion of risk response planning. Residual risks are those risks that are accepted and contingency plans are developed contingency plans. They describe the specific actions that can be taken if specific opportunities or threats occurred. Risk response owners Risks can be assigned to individuals who can develop risk responses and also who will implement RISC responses if those opportunities or threats occurred. Secondary risks these air those risks which may be created due to implementation of current risk responses. Risk triggers the events that triggered the contingency responses are risk triggers contracts. The contracts issued to deal with risks should be noted in their risk register fallback plant specific actions that are taken if contingency plans or risk response plans are not effective. Reserves. Contingency reserves are necessary for both time and cost risks. Monitor and control risks. The list of actions involved in monitoring and controlling risks are determined. The occurrences of risk triggers identifying monitor residual risks. Keep risk identification, analysis and monitoring and innovative process in the project. Evaluate the effectiveness of risk response plan. Risk status should be collected at communicated. Monitor the rigour of risk management procedures. Identify if additional risk responses need to be determined. Recommend corrective actions. Look for unexpected effects or consequences. Update risk management and risk response plans. Perform variants and trend analysis. Use contingency reserves and adjust for approved changes. Monitor and control risks Work around these air unplanned responses developed to deal with the occurrence of unanticipated events or problems on a project. Risk reassessments. The process of periodically reviewing the risk management plan and risk register and adjust the documentation as required, is termed as risk reassessment risk audits. Risk audits help the project manager prove that all the risks are identified. Ah, plan of mitigation for each major risk is available and risk response owners are prepared to take action reserve analysis While the work is being down. Reserve analysis is simply checking to see how much reserve remains and how much might be needed. Status meetings Risks should be a major point of discussion in all teams. Project status meetings closing of risks that are no longer applicable. It allows the team to focus on managing the risks that are still open outputs of monitor and control risks. The outputs are risk register updates, change requests, recommended preventive and corrective actions. Project management plan updates project document updates organizational process acid. Updates 25. Procurement Management - Chapter Overview: Procurement Management, Procurement Management Chapter Overview in Procurement management The basic knowledge and skills of a project manager should include being able to help create, read and manage contracts. The PMP exam assumes that you have a close working relationship with departments such as procurement and legal, and that procurement process cannot occur without your involvement of formal process To obtain goods and services is known as procurement, procurement, management plan, procurement, statement of work or S O. W. Procurement documents, change of requests, additional procurement documentation and lessons learned are the outputs of procurement management process. Procurement department is the most common name for the department that handles and controls procurements in some companies. These department are also called contracting, purchasing or legal departments. Ah. Few skills required for managing procurements include possessing legal knowledge, negotiation skills and understanding procurement process. In case of a project requiring to buy goods or services, the procurement department comes into action. Ah project manager is expected to understand what procurement experts will need from them. Provide the expert of that information and then work with the procurement department throughout the life of the procurements. After the decision of procuring goods or services the procurement manager facilitates to create a procurement management plan. Creates procurement statement of work or S O w determines type of contract determines procurement Document request for proposal RFP Invitation forbid i f B and request for quotation. R F. Q. Send the documents to the cellar cellar reviews the documents, seeks additional information if needed and sends required documents. Negotiations take place with the seller, and the contract is signed with the right cellar. Procurement administration is the next step. Monitoring and control of procurement administration is done. Procurement closure involves procurement, audit and lessons learned. Final payment is made. Buyers and sellers Sellers Air also called contractors, subcontractors, designers, vendors. Etcetera, However, for the exam, seller will be termed as a seller only. Similarly, buyer is termed as buyer only. It's important to note that in the PMP exam, it is important to identify that the question is from a buyer's or a seller's point of view . If it is not explicitly mentioned in the exam, please assume that the question is asked from a buyer's point of view. Important points related to procurement management contracts cannot be informal. It requires formality. All project management requirements should be specifically stated in the contract. Ah, change management procedure is the only way to include any activity in the contract. If that activity is not already in the contract contracts are legally binding. The seller has no choice but to perform as agreed in the contract. Contracts. Help mitigate project risks. Most governments back all contracts that fall within their jurisdiction by providing a court system for dispute resolution. The project managers rule in procurement. AH, project manager should be able to read and understand the contracts. Ah project manager should ensure that scope of work and project management requirements should be included in the contract. Identify risks and create appropriate risk response plans for risk mitigation. Project manager should tailor the contract to the unique needs of the project. Project Manager should be involved during contract negotiations To maintain the relationship with the seller. Project Manager should protect the integrity of the contract. Project Manager should ensure all work, such as reporting, inspections and legal deliverables are met. Release of leans and worship of materials is another critical activity of the project manager. Project manager works for the procurement manager to manage changes to the contract centralized and decentralized contracts in a centralized contracting environment. There is one procurement department and a procurement manager handles multiple procurements for different projects in a decentralized contracting environment. A pure Kermit manager is assigned toe one project full time and reports directly to the Project Manager procurement management process. The procurement process is designed to obtain a seller at the most reasonable prices. The process involves waiting time for the sellers to look at the needs of the project and to respond. The process can thus take from one month to three months for this type of procurement. The project manager needs to be involved in the entire process of procurement management, and he also needs to plan for the amount of time procurement. Take the four sequential procurement management processes are planned procurements, conduct procurements, administer procurements and close procurements. Inputs to procurement management process, enterprise environmental factors. It involves company culture and existing systems that the project could make use off organizational process assets, procurement procedures, standard contracts, lessons learned from the last project and a list of pre qualified sellers are some of organizational process assets. Procurement manager assigned If the amount of procurement is high, Ah procurement manager needs to be assigned for the process. The Scope Baseline WBS WBS Dictionary and Project Scope statement. It helps in making the project members understand the needs of procurement risk. Register. An understanding of risks uncovered to date is termed as a risk register any procurement already in place For the project. The project manager must manage interface between multiple sellers and multiple procurement on one project. Identification of resources not available within the performing organization. One of the critical aspects is to determine if services need to be procured. This step allows us to think about it. The project schedule. The project schedule helps determine when the procurements are needed. Initial cost estimates for work to be procured. An initial cost estimate is required for each work that is getting procured to compare between the sellers. Prices cost baseline for the project. Knowing the cost base land helps to make sure the procurement fit within the baseline costs planned procurements The buyer has needs, and he has criteria using which he will select a cellar. The plan procurement process involves creating procurement documents which describe these details. Additionally, this process also explains the procurement management plan. The planned procurements process includes. Perform, make or buy analysis. Create procurement management process. Create a procurement statement of work for each procurement. Select a contract type for each procurement, create the procurement documents and determine the source selection criteria. Make or buy analysis. The organization has several constraints, including one constraint which is cost. The organization needs to decide about whether to do project work themselves or procure services for some or all the work. One of the main reasons to buy is to decrease the project constraints. However, organization should make if the organization has an idle plant or workforce. Work involves proprietary information or procedures, or the organization wants to retain control. Procurement management plan. This process involves the planning, execution and controlling of procurement management. It is done after the organization has made a decision to procure the services or products from outside sources. Procurement statement of work. The work to be done on each procurement is called procurement statement of work. The procurement statement of work must be clear, complete and as concise as possible. It should also describe all work and activities. The sellers required to complete the activities also included meetings, reports and communications types of procurement statements of work procurement. This conveys with the final product should be able to accomplish functional. This conveys the end purpose or the results than the scientific procedures or approach designed. This type conveys precisely what works to be done. Design procurement statement of work is most commonly used in construction and equipment, purchasing, performance and functional procurement. Statements of work is used in areas that have never been done before, such as information systems, information technology research and development. Etcetera. Contract types. The project managers selects the type of contract basis, the purchase of a product or a service, the completeness of the statement of work, the level of effort and expertise the buyer can devote to the seller. Whether incentives air involved the seller, the enterprise, environmental factors, etcetera. The three broad categories of contracts are fixed price or FP, Time and material T and M or cost reimbursable CR 26. Procurement Management - Fixed Price: procurement management, fixed price FP or lump sum or firm fixed price. The acquiring of goods or services with well defined specifications or requirements and when there is enough competition, determine a fair and reasonable fixed price. These the situations where a fixed price contract is used. These were the most common types of contracts. The seller bears additional cost. If the costs are more than agreed upon costs. The buyer has the least cost risk. In this type of contract, the seller is duly concerned with the specifications provided in the procurement statement of work or s. Ow AH fixed price contract is inappropriate when either of the parties, buyer or seller, do not have expertise or past experience to prepare the procurement statement of work or have detailed accounting records. There are situations where companies are not having a complete know how of the tasks to be done. And even when the scope is incomplete, they asked the sellers to provide a fixed price. This leads to forcing the seller to accept a high level of risk. Cellar needs to add huge amounts of reserve to cover the risks, and the buyer then pays more than otherwise required smart sellers can easier increase profits by cutting the scope of work and claimed that worked. The buyer wants requires change as is outside the contract. In case of the seller realized that he is not making any profits, there is a risk that the seller might try to remove some work that is described in the contract. Take actions to save money. Decrease quality. Take the best people over the project, among others. Fixed price incentive v f P i f in an f p i F. Contract profits are adjusted based in the cellars. Meeting performance criteria in a progressive manner, such as completing the work in a cheaper way, faster and better. FP i F contract involves successive targets given to the cellars, in which the target for the incentive is changed after the first target is reached. Fixed price award feed FPF in an F p A. F contract. The buyer pays a fixed price plus an award amount or a bonus based on performance. This is very similar to an FBI F contract, except the total possible award amount is determined in advanced and a portion out based on performance, fixed price, economic pricing adjustment F P E p a. If there are uncertainties about future economic conditions or future prices for contracts that exist for a multiyear period, ah buyer might choose a fixed price contract with economic price adjustments. Future costs of supplies and equipment that the seller might be acquired to provide under contract might not be predictable. Purchase order. The simplest type of fixed price contract is a purchase order. This type of contract is signed by one part instead of two parties, so that is unilateral instead of bilateral time and material T and M or unit price. In this type of contract, the buyer pays on a per hour basis or per item basis. Time and material call Attract our fruit when the use for service efforts in which the level of effort cannot be determined when the contract is awarded. Cost Reimbursable cr ah cost reimbursable contract is used when the exact scope of work is uncertain and therefore costs cannot be estimated accurately enough to effectively use a fixed price contract. This type of contract provides for the buyer to pay the seller allowable incurred costs the extent prescribed in the contract Following are common forms of cost reimbursable contracts . Cost Contract AH cost contract is the one in which the seller receives no fee or profit cost plus V C P, f or cost plus percentage of cost. CPPCC A CPF or CPPCC contract required the buyer to pay for all costs plus a percentage of costs for a feet cost plus fixed feet. See Pff ah Cost plus fixed fee contract provides for payment to the seller of actual costs , plus a negotiated fee that is fixed before the work begins. The fee does not vary with actual costs. Cost plus incentive fee. CPF ah cost plus incentive fee provides for the seller to be paid for actual costs, plus a fee that will be adjusted based on whether the specific performance objectives stated in the contractor met. In this type of contract, an original estimate of the total cost is made. The target cost and a fee for the work is determined. The target feet. The seller then gets a percentage of the savings if the actual costs are less than the target costs or shares the cost overruns with the buyer cost plus award feet. In a cost plus award fee contract. The buyer pays all costs and a base fee, plus an award amount of bonus based on performance. This is similar to CP i F contract, except the incentive is a potential award rather than the potential aboard or a penalty. The award amount in C. P A. F contract is determined in advance and apportioned out, depending on performance. This is a type of incentive contract incentives incentives are bonus for the sellers. Incentives are designed to motivate the sellers efforts towards things that might have not been emphasized otherwise, and to discourage seller inefficiencies and waste in the areas in which the incentives are designated. When our payments made, each contract will state when payments were to be made to the cellar. Payments may be made as work is completed as costs are incurred according to a payment schedule, or only after a successful completion of the contract. Other terms to know profits and cost have a distinct difference. Profit is the amount of money the sellers have left after costs are paid. There are some terms that we would like to know price the amount the seller charges to the buyer profit or feet. This is planned into the price the seller provides the buyer cost. AH buyers Cost includes a seller's cost plus profit for a seller. This is the amount charged to the seller to create, develop or purchase the product service or raw materials. Target price This term is often used to compare the final price with what was expected. Sharing ratio incentives are used, the expressed as a ratio. For example, 90 10. This sharing ratio describes how cost savings or cost overruns will be shared between the buyer and the seller ceiling price. The highest price the buyer will pay is the ceiling price point of total assumption, P. T. A. This only refers to fixed price incentive fee contract and refers to the amount above which the seller bears all the loss of a cost overrun, procurement documents or bid documents. Once the contract type is selected and the procurement statement of work has been created, the buyer can put together the procurement document which describes the buyer's needs to the sellers. The different types of procurement documents include request for proposal RFP, RFP EZ request a detailed proposal on how the work will be accomplished. Who will do it etcetera, invitation forbid i f b I have be usually just request the total price to do all work. Request for quotation R F Q R F cues Request a price quote per item, our meter or other unit of measure. The objective is to provide the seller a clear picture as much as possible. The procurement documents should include information for sellers, background information with the purpose of the buyer wanting to get the work done. Procedure for trying to win the work guidelines for preparing the response, the formats for response source selection criteria, the criteria. The buyer we used revalue responses from the sellers and pricing forms, procurement, statement of work and proposed terms and conditions of the contract, legal and business source selection criteria. Source Selection criteria are included in the procurement documents to give the seller and understanding of the buyer's needs and to help the seller decide whether the bid or make a proposal on the work source. Selection criteria become a basis for the buyer to use in evaluating bids or proposals. The source selection criteria includes a number of years in business, financial stability, understanding, the need, price or life cycle cost, technical ability quality of past performance ability to complete the work on time and project management ability. It the following are additional terms The project manager must be familiar with non disclosure agreement. This is an agreement between the buyer and perspective sellers identifying the information or documents they will hold confidential and control. And who in the organization will gain access to the confidential information teaming agreement or joint venture, often to sellers believe that their chance of winning work from a buyer will be enhanced if they joined forces for one procurement. In this case, they will sign a teaming agreement with each other to address the vehicle and business aspects of the arrangement. Standard contract. The contract terms and conditions are most commonly created by the buyer, who may even put their terms and conditions into the standard format that is used over and over for senator procurements. These types of standard contracts need no further legal review. If used as they are special provisions or special conditions, the project manager must be able to read and understand standard terms and conditions and to determine what needs to be added, changed or removed from the standard provisions. By doing so, the project manager can make sure the resulting contract addresses the particular needs of the customer 27. Procurement Management - Terms & Conditions: procurement, management terms and conditions. The general categories of the terms and conditions that can make up standard and special provisions are acceptance description to specifically describe what is acceptable. Agent the name of authorized representative from each party. Arbitration. This method uses private third parties to render a decision on the dispute. Arbitration is paid for by the parties and is used because usually faster and cheaper than the courts assignment the circumstances under which one party can assigns rights or obligations under the contract to another authority the names of individuals and their rules during the project. Life cycle bonds these air payments or performance bonds, if any, that must be purchased. Breach default. This occurs when obligation of a contract is not met. Changes involves incorporation of change management procedure, confidentiality information classifications that decides which information is to be given to which parties dispute resolution. The procedure that will be used to settle any disputes if they occur. Force measure. This is a situation that could be considered as an act of God, such as fire or a freak electrical storm. If a force measure occurs, it is considered to be neither party's fault incentives. The benefits the seller receives for aligning with buyers objectives of time, cost quality, risks and performance. Indemnification or liability identification of individuals liable for personal injury damage or accidents. Independent contractor. This indicates the seller is not an employee of the buyer inspection audit process done during execution of the project. Intellectual property, patents, trademarks, copyrights, books, etcetera, invoicing which are the invoices to whom their scent and what documents are required. Liquidated damages estimated damage for specific default mentioned before hand management requirements. Attendance Meetings. Approval of staff assigned to the project etcetera Material breach. This breach is so large that it may not be possible to complete the work under the contract . Notice the place or individual to whom the correspondence is to be said Ownership owner of tangible items, materials, buildings, equipment, etcetera used in connection with or developed as a part of the contract payments. Schedule of payments to be made provision of late payment charges. Reasons for non payment etcetera Procurement Statement of work. If it is not a separate document, it is included as a part of the document reporting the reports Formats. Frequency stakeholders are listed retain ege the amount of money usually 5 to 10% withheld from each payment. This money is paid when all the final work is completed. It helps to ensure completion risk of loss. This allocates the risk between parties to a contract in the event goods or services are lost or destroyed during the performance of a contract site. Access requirements to access the site where work is to be performed. Termination. Stopping the work before it's completed Time is of essence. This indicates deliverables are strictly binding. Wavers statements saying that right under contract may not be waived or modified other than by express agreement of the parties warranties, promises of quality of the goods or services delivered under the contract, usually restricted to a certain time period work for hire. Work provided under the contract will be owned by the buyer Letter of intent. A letter of intent is simply a letter without legal binding, which indicates that the buyer intends to hire the seller. It gives the seller with confidence that the contract will be signed soon. Privet e Privet e is a contractor ral relationship, noncompetitive, formed of procurement. Sometimes work is awarded to a company without competition. The situation's include Project managers under extreme pressure cellar has unique qualifications. There is only one seller who can provide the goods or services cellar. Hold pat for the items you need. Other mechanisms exist to ensure sellers prices are reasonable. Non competitive procurement may include single source. Ah contact is established directly with a preferred cellar without going through the procurement process. Sole source. In this type of procurement, there's only one source. Conduct procurements. Conduct procurements process involved. Getting the procurement documents to the seller's answering salads. Queries having them prepare responses. Reviewing their responses to select the seller to initiate the process. It is important to attract the sellers. It is done using various methods such as advertising. An advertisement is placed in newspapers, magazines, Internet, etcetera to attract sellers. Qualified sellers list. If a buyer purchases the same type of services. Often, the procurement team should find, investigate and check the credentials of a prospective seller in advance. Bitter conferences. The bitter conference is an opportunity for the buyer to discover anything missed in the procurement documents. Ah, better conference can be key to making sure pricing in the cellars response matches. That work needs to be completed and is therefore the lowest price cellar proposal. A seller proposal is a response to the RFP, or request for proposal RFP Que request for quotation or an i f B Invitation forbid proposal review. After receiving their proposal, The buyer uses the source selection criteria identified in the plan procurement process to assess the potential sellers ability and willingness to provide requested products or services. The seller proposals are usually reviewed, compared or selected by the evaluation committee using one or a combination of the formal structure processes waiting system. This allows the buyers Evaluation Committee to select a seller by waiting the source selection criteria according to the evaluation criteria. Independent estimates the buyer may compared the sellers proposed cost with an estimate created in house or with outside assistance screening systems. AH screening system eliminates sellers who do not meet the minimum requirements of the source selection criteria. Past performance history. The buyer may consider their past history with the perspective sellers in determining which started toward the procurement to presentations. Some sellers may be asked make presentation of their proposals to the buyer so the buyer can select the most appropriate cellar negotiations. The objective of negotiations is to obtain a fair and reasonable price and develop a good relationship with the seller. Some of the negotiation tactics are attacks. If your organization cannot provide the right details for the bid, perhaps it should not ever sent a response to her. Our RFP personal insults. If you cannot perform even after 10 months of being the organization, you should leave good guy bad guy. One person is helpful to their side while the other is difficult to deal with. Deadline. We need the closure of this task by 4:30 p.m. Today. Lying lying may be hidden. It may also be obvious Limited authority Limited authority statements may or may not be true. Missing men act as if the decision makers not available on the current options air. Better, fair and reasonable being impartial and practical delay, delay the point, discussion or decision to a later date. Extreme demands. These demands are not appropriate for the given contract withdrawal, lessening of interest shown by emotional or physical withdrawal. Fate accompli. This is a done deal scope, schedule and price are the made items to negotiate in the contract other than thes. Other items include responsibility authority applicable Law Project Management Process Payment schedule, among others, contract the contract defines the rules and responsibility, makes things legally bound and mitigates risks. A contract is the entire agreement between both parties. It also includes terms regarding payments, reporting requirements, marketing, literature proposal and procurement statement of work, among others. Changes to the contract are made formally in writing for a legal contract. We should have an offer acceptance of that offer, consideration beagle capacity and legal purpose, administer procurements, managing a relationship between the buyer and the seller and assuring both parties performed as required by the contract is termed as administer procurements. The specific actions involved were administering procurements are reviewing invoices, completing integrated change control, documenting every record. Managing changes, authorising payments to the seller, interpreting what is and what is not in the contract. Resolving disputes, procurement, performance reviews, performance report, monitor cost schedule and technical performance against the contract. Understand the legal implications of the contract controlling quality, among others. Conflict in the event of a conflict. The procurement manager or a contract administrator is the one with the authority to change the contract. The project manager may initiate the change by requesting one. However, it needs the approval for the procurement manager Contract Change Control system. The system includes change procedures, forms, dispute resolution processes and tracking systems as specified in the contract procurement performance reviews. During the administer procurement process, the buyers Project manager analyzes all available data to verify that the seller is performing as they should. Claims administration. A claim is an assertion that the buyer did something that has hurt the seller, and the seller is asking for compensation. The best way to settle them is through negotiation or through the use of the dispute resolution Process Records Management System Record keeping is of critical importance if actions taken or situation that occurred during the procurement are ever in question. After the works completed, a record management system could be quite extensive and can include indexing systems, archiving systems and information retrieval systems. Contract interpretation. Contract interpretation is important and may require a lawyer's assistance to understand it and interpreted appropriately. Termination termination can be done for cause or convenience. The contract should have provisions for terminations. Close procurements procurements are closed when a contract is completed or when a contract is terminated. Before the works completed. The clothes procurement is a part of closing process group. All procurement must be closed out, no matter the circumstances under which they stop, are terminated or completed work that must be performed during close procurement phase. Product verification involves checking to see if all the work had done correctly in satisfactorily negotiated settlement. Final settlement of all claims, invoices and other issues. Financial closure involves making final payments and completing cost records. Procurement. Audit Structured review of only the procurement process. Updates to records making sure all of the records of the project are complete and accessible in the records management system. Final contract performance Reporting. This is creating a final report. Lessons learned lessons learned from everyone, including the seller, are documented for the project procurement file. The file includes the contract changes, some metals from the cellar, financial information inspection results and lessons learned. Formal acceptance enclosure want closure is completed and the seller has received formal sign off that the products of dick procurement are acceptable from the buyer. The procurement is closed. This marks the end of procurement management module 28. Stakeholder Management: Stakeholder Management Stakeholder Management Chapter. Overview Stakeholders are individuals who get impacted by the project Project Stakeholder management involves identification of stakeholders, analysis of their expectations and influences, development of appropriate strategies to work with the stakeholders and excuse in the process. Frequent communication is required with the stakeholders needs an expectation of the stakeholders required to be understood. Most of the issues air due toa lack of communication addressing those issues are also important. Managing conflicting interests and involving stakeholders and key project decisions and activities is also crucial. All of this forms a part of stakeholder management process. Project manager is expected to possess the ability to identify the needs and influence of the stakeholders and to manage them effectively identify stakeholders. The process of identifying individuals who are impacted by the project is no. One as identify stakeholders process. The project manager is able to identify the appropriate focus of each day colder as an outcome of identify stakeholders process stakeholders can include the customers, sponsors, employees, management, government and society as well. These stakeholders have a potential to exert positive or negative influence on the project deliverables. Stakeholder needs are to be identified at an early stage of the project to ensure all of their requirements and voices are considered this day. Clothes could be classified on the basis of their interest in the project, the level of influence on the project outcome and their involvement for the success of the project. The project manager needs to have a relationship that is cordial and extremely a success oriented. Identify Stakeholders Identify Stakeholders Process Can Receive Inputs from Project Charger . Internal and external parties related to the project identified using the project charter procurement documents. The parties involved in the procurement contract are key project stakeholders. Enterprise, environmental factors, organizational culture, its structure, governmental regulations, trend practices or habits of individuals represent enterprise environmental factors, organizational process, assets, stakeholder registers from previous projects. Lessons learned are important inputs for identifying stakeholders. Stakeholder analysis. Qualitative and quantitative analysis is required to systematically determine the interest of stakeholders throughout the project. The benefits of this analysis are identification of stakeholder interests, expectations and influences. Another benefit includes identification of stakeholder relationships that can be leveraged to build partnerships with stakeholders. To increase the probability of project success. Steps involved the stakeholder analysis process are identification of potential stakeholders, including the rules departments interests, knowledge, expectations and influence levels. Identification and analysis of potential impact Each stakeholder degenerate classification of stakeholders basis. Logical categories of potential impact. Determination of likely reaction of these stakeholders to respond in various situations. Planning the approach strategy to enhance their positive support and reduce negative influences. Stakeholder Analysis. Multiple classifications models are used for stakeholder analysis, including, but not limited to power interest grid by ification of stakeholder bases. Their level of authority on their level of concern regarding project outcomes. Power influence grid by for cation of stakeholders basis Their level of authority on their level of involvement in the project. Power impact grid by ification of stakeholders. Basis the level of authority on their level of impacting changes on project activities. Salient model describes categories of stakeholders basis their power, urgency and legitimacy. Brainstorming brainstorming technique can be used to identify stakeholders who belonged to senior management. Other departments of the organisation Lessons learned. Project managers who have worked on similar projects. Subject matter experts, consultants, regulatory bodies, etcetera, outputs of identify stakeholders. Stakeholder Register is updated with details such as stakeholder information. Their name organisational position, location ruled in the project business phone number, email address, etcetera stakeholder requirements. Key expectations. Major requirements. Involvement in the project etcetera are included here. Stakeholder classifications. A stakeholder could be internal or external. A stakeholder can also be supporter resistor neutral etcetera. Updating the stakeholder register is an iterated process and should be updated regularly. Plan Stakeholder Management Plan. Stakeholder management process involves managing stakeholder expectations and influences throughout the life cycle of the project. This process provides a plan to effectively interact with stakeholders at support Project Interest Project Managers. Goal is to plan these actions so well that the impact the contribution of stay close on projects manager expectations on also achieve project objectives inputs for plan stakeholder management. The inputs required to plan stakeholder management include project management plan, description of processes that will be applied to each stage of the project. Description of how work will be executed. Planning and execution of human resources Change Management procedure Communications Management plan are required for planning for stakeholder management. Stakeholder register. It provides the description of the interest, involvement and level of authority of different stakeholders. Enterprise, environmental factors, organizational, culture, structure, political climate are critical to manage stakeholder expectations, organizational process assets. Lessons learned from previous projects and historical information of the organization helps in understanding the behavior of stakeholders and thus playing the actions effectively analytical techniques. The project manager needs to use this expert judgement to decide the level of engagement at each stage of the project. From each stakeholder, meetings and discussions can be held to discuss the engagement level of stakeholders. There are additional analytical techniques that could be used. Engagement level of state colors can be classified as unaware. Stakeholders may be unaware of the project impact or its potential resistant. Many stakeholders are generally resistant to any changes to the project. Neutral. They will let things happen. They will not resist nor support supportive. These individuals are supportive to change their completely aware of the potential. The project leading these stakeholders will not just support, but wherever required, will also lead the project to success. Outputs of Plan Stakeholder Management One of this several outputs of plan stakeholder management is the stakeholder Management plan. It is a component of the Project Management plan. The plan articulates management strategies to engage stakeholders for the project. Unlike procurement management, this stakeholder management plan can be formal or informal. It could be detailed to the Manu Tous level or it can be just at a high level. It is based on the needs of the project. When updating the stakeholder management plan, the validity of underlying assumptions be reviewed to ensure accuracy and relevancy. Another output of plan stakeholder management is the updates to project documents that include project schedule and Stakeholder Register Manage Stakeholder engagement. The key benefit of managed stakeholder engagement process involves seeking extended support from stakeholders for the project's success. This process of communicating and working with stakeholders to meet their needs and expectations address issues as they occur and build appropriate stakeholder engagement in project activities throughout the life cycle. The project is termed as manage stakeholder Engagement process. Activities involved in manage stakeholder engagement process are ensuring continued commitment of a stakeholder at all stages of the project, ensuring stakeholder expectations are met. The tools used could be negotiations and communication, anticipating future problems and address potential concerns throughout the life cycle of the project. Ah, few critical points of manage stakeholder engagement includes stakeholder influences are the highest disturbed a project, and as the project progresses, the influence continue to reduce project sponsors assistance to be taken by the project manager whenever required inputs for manage stakeholder engagement. Inputs for manage stakeholder engagement include stakeholder management plan, communications management plan change log and organizational process assets. The communications management plan includes a documentation of stakeholders needs for communication requirements. Every stakeholder needs information for a specific purpose, and thus the formats level of detail, content and language might need some alteration from stakeholder to stakeholder. All of these need to be taken into consideration as inputs when managing. Stakeholder engagement tools and techniques used to manage stakeholder engagement include effective communication methods such as the use of email meetings, process updates through intranet war rooms, among others. Project managers use effective interpersonal skills, including active listening, building trust, resolving conflict and overcoming resistance to change like interpersonal skills. The project manager also requires management skills, such as effective facilitation of consensus towards achieving project objectives, influencing people to support the project, negotiate agreements to satisfy project needs and help modify organizational behaviour to accept project outcomes. Outputs of manage stakeholder engagement issue logs, change requests, project management plan updates and project document updates are common outputs. Organizational process asked it. Get updated with additional information. Stakeholder notification It is important to notify stakeholders about project updates any issue closures, etcetera, project reports project reports Such a status dashboards lessons learned issue logs etcetera are to be included. Project presentations, presentations made formally or informally, also form as outputs of managed stakeholder engagement project records, correspondence, memos, meeting minutes, etcetera are included in project records. Feedback from stakeholders. Lessons learned documentation control, stakeholder engagement. The process of monitoring project stakeholder relationships is control. Stakeholder engagement, adjusting strategies and plans for engaging stakeholders is a part of controlling stakeholder engagement. Stakeholder engagement should continuously be monitored.