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03 pm pexam-planning 03 pm pexam-planning Presentation Transcript

  • Exam PreparationPlanning Process Group
  • Knowledge Area Unit Objectives At the end of this unit, you will be able to: Exam – Define the Planning process group and thePreparation knowledge areas that occur in Planning – Describe the inputs, tools & techniques, and outputs for each of the Planning processes – Create the WBS, develop a budget plan, a project schedule, a HR management plan, a communication plan, a procurement plan, a quality plan, a change management plan, a risk management planPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 2
  • The Planning Process Group • Defines and refines objectives, ExamPreparation • Plans the course of action required to attain the objectives and scope that the project was undertaken to addressPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 3
  • Project Integration Management The Project Management (PM) Plan… Exam • Documents the collection of outputs ofPreparation the other planning sub-processes of the planning process group • Varies depending upon the application area and complexity of the project All projects are scaleable at the sub-process level.PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 4
  • 5.1 Collect Requirements Tools & Techniques Exam Inputs 1. InterviewsPreparation 1. Project Charter 2. Focus groups Outputs 2. Stakeholder 3. Facilitated 1. Requirements register workshops documentation 4. Group creativity 2. Requirements techniques management plan 5. Group decision 3. Requirements making techniques traceability matrix 6. Questionnaires & surveys 7. Observations 8. PrototypesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 5
  • 5.1 T & T • Interviews: one-on-one ExamPreparation • Quest/Surveys: feedback from a large number of stakeholders (statistical analysis) • Observations: “job shadowing” to uncover hidden requirements • Prototypes: experimental, gives feedback to move to a design or build phasePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 6
  • Focus groups vs Facilitated workshops • FG are gatherings of prequalified SMEs Exam and stakeholders where the intention is toPreparation gather feedback from these individuals • FW consists of cross-functional stakeholders who work together to define cross-functional requirements eg. JAD joint application development QFD quality function deployment VOC voice of the customerPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 7
  • Group creativity techniques • Brainstorming ExamPreparation • Nominal group technique • Delphi technique • Idea/Mind mapping • Affinity diagramPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 8
  • Group decision-making techniques • Unanimity ExamPreparation • Majority • Plurality • DictatorshipPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 9
  • 5.1 Outputs • Requirements documentation ExamPreparation • Requirements management plan (how requirements will be analyzed, documented, managed) • Requirements traceability matrix (links requirements to business needs and project objectives)PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 10
  • Requirements traceability matrix ExamPreparation TEST TEST ID Description Source Priority STATUS Scenario Verification 0 Requirement -Project B -How will be -Approved -Added 0 ONE objective tested -Failed -Deferred 1 -Stakeholder -During -Cancelled which phasePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 11
  • 5.2 Define Scope Tools & Techniques Exam Inputs OutputsPreparation 1. Experts 1. Project Charter Judgment 2. Requirements 1. Project Scope 2. Product Analysis Documentation Statement 3. Alternatives 3. Organizational 2. Project document Identification process assets Updates 4. Facilitated WorkshopsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 12
  • T&T: Product Analysis • Method for converting the product ExamPreparation description and project objectives into tangible deliverables and requirements • Might include : value analysis, functional analysis, systems analysis, engineering techniques, product breakdownPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 13
  • Output: Project Scope Statement • Guides the work of the project team during Exam the executing processPreparation • All change requests will be evaluated against this • The criteria outlined will be used to determine whether the project is completed successfully • Includes: scope description, acceptance criteria, deliverables, exclusions, constrains, assumptionsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 14
  • • Deliverables: components of goals and objectives in a ExamPreparation quantifiable way • Requirements: specifications of the deliverables • Critical success factor: those elements that must be completed for the project to be considered complete.PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 15
  • 5.3 Create WBS Tools & Techniques Exam Inputs OutputsPreparation 1. Decomposition 1. Project Scope Statement 1. WBS 2. Requirements 2. WBS dictionary documentation 3. Scope baseline 3. Organizational 4. Project document process assets UpdatesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 16
  • T&T: Decomposition • A planning technique that subdivides Exam the project scope and projectPreparation deliverables into smaller, more manageable components, until the project work associated with accomplishing the project scope and providing the deliverables is defined in sufficient detail to support executing, monitoring and controlling the workPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 17
  • Output: Work Breakdown Structure Exam Project Control WBSPreparation XYZ Accounts Control A B C Accounts Work Work Packages A.1 A.2 B.1 B.2 Packages Activities Work Packages B.1.1 B.1.2PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 18
  • Creating rules • Involve team • Include all work needed to create deliverables ExamPreparation • Continue break down until work packages that can be realistically and confidentially estimated and assigned to a resource with clear accountability and responsibility • Each level is a smaller piece of the level above • The entire project is included in each of the highest levels of the WBSPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 19
  • • WBS - the foundation of the project = almost everything that occurs afterwards in Exam planning is directly related to itPreparation • The 100% rule = all the levels of the WBS roll up to the top so that all the work is capture • Rolling wave planning = process of elaborating deliverables, project phases, subprojects in the WBS to differing level of decomposition depending on the expected day of the work • Decomposition is what you are doing, WBS is the tool to do itPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 20
  • Benefits of using WBS • Helps prevent work from slipping through the cracks ExamPreparation • Provides the project team with the “big picture” • Gets team buy-in and builds the team • Facilitates communication • Helps people get their minds around the project • Serves as a supportive tool in change control • Provides a basis for estimating staff, cost, time • Provides a proof of need for staff, cost, timePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 21
  • Output: WBS Dictionary • A document that describes each component Exam in the work breakdown structurePreparation • Has a separate entry for each WBS component that may include: – Scope or statement of – Start and end dates work – Resources required – Defined deliverables – Cost estimates – Activities lists – Charge number – Milestones – Contract information – Responsible – Quality requirements organization – Technical referencesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 22
  • Scope Baseline • Consists of: ExamPreparation – The approved detailed project scope statement – Its associated WBS and WBS dictionary • Will allow PM to – Document schedules – Assign resources – Monitor & control project workPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 23
  • 6.1 Define Activities Tools & Techniques Exam Inputs OutputsPreparation 1. Decomposition 1. Scope baseline 2. Rolling wave 2. Enterprise 1. Activity list planning environmental 2. Activity attributes 3. Templates factors 3. Milestone list 4. Expert 3. Organizational 5. Judgment process assetsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 24
  • Rolling Wave Planning • A form of progressive elaboration Exam planningPreparation • The work to be accomplished: – In the near term is planned in detail at a low level of the WBS – Far in the future is planned for WBS components that are at a relatively high level of the WBSPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 25
  • Planning Component ExamPreparation In rolling wave planning, this element could represent a: – Work package – Planning package – Control accountPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 26
  • 6.1 Outputs • Activity list: all scheduled activities required on the project in sufficient details to ensure that project Exam team members understand what work is required toPreparation be completed • Activity attributes: ID, description, predecessor or successor activities, leads or lags, person responsible, resource requirements, imposed dates, constraints, assumptions, etc. Are used for schedule developing • Milestone list: ID & type (mandatory, optional etc)PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 27
  • 6.2 Sequence Activities Tools & Techniques Exam Inputs OutputsPreparation 1. Precedence 1. Activity list diagramming 2. Activity 1. Project schedule method (PDM) attributes network diagrams 2. Dependency 3. Milestone list 2. Project documents determination 4. Project scope updates 3. Applying leads Statement and lags 5. Organizational 4.Schedule process assets network templatesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 28
  • Precedence Diagramming Method (PDM) ExamPreparation B D G J M A E H K L N C F I Activity-On-Node (AON) Node= Dependency activityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 29
  • Dependency Relationships Exam Finish-to-FinishPreparation Finish-to-Start A A B B Start-to-Finish Start-to-Start A A B BPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 30
  • Arrow Diagramming Method (ADM) ExamPreparation B D A H Z Dummy G I Task C F Dummy Task J E Activity-On-Arrow (AOA) Activity Activities ConnectionPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 31
  • Dependency Determination • Types of dependencies to define the Exam sequence among the activities:Preparation – Mandatory: defined by a contract, the nature of work required – Discretionary: defined by the team based on past experience and best practice – External: non-project activities, outside the project team controlPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 32
  • Applying Leads and Lags • Lead – the modification of a logical Exam relationship that allows an accelerationPreparation of the successor activity • Lag – the modification of a logical relationship that directs a delay in the successor activityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 33
  • Exam PreparationPreparing a Network Diagram Practice Activity 3-2
  • 6.3 Estimate Activity Resources Tools & Techniques Exam Inputs 1. Expert OutputsPreparation 1. Activity list judgment 2. Activity 2. Alternatives 1. Activity resource Attributes analysis requirements 3. Resource 3. Published 2. Resource Calendars estimating data breakdown structure 4. Enterprise 4. Bottom-up 3. Project document environmental estimating updates factors 5. Project 5. Organizational management process assets softwarePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 35
  • Inputs: Resource Calendars A composite resource calendar for the Exam project whichPreparation • Specifies when & how project resources (whether a person or material) can be active or is idle • Includes availability, capabilities, skills (for human resources), location, etcPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 36
  • 6.3 Outputs • Activity Resource Requirements: type Exam and quantities of resources required forPreparation each activity in a work package (includes basis of estimation and assumptions) • Resource Breakdown Structure (RBS): A hierarchical structure of the identified resources by resource category and resource typePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 37
  • Resource Breakdown Structure Examples of Application categories: Development Project -Labor Exam -HardwarePreparation -Equipment -Supplies Labor Equipment Examples of types: -Skill level -Quality grade -Cost Developers Architects Computers Servers Frank Sally Roger Level 1 West Central Smith Gozalez BrownPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 38
  • 6.4 Estimate Activity Durations Tools & Techniques Exam Inputs OutputsPreparation 1. Expert 1. Activity list judgment 2. Activity attributes 1. Activity duration 2. Analogous 3. Activity resource estimates estimating requirements 2. Project documents 3. Parametric 4. Resource updates estimating Calendars 4. Three-point 5. Project Scope estimates statement 5. Reserve 6. EEF analysis 7. OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 39
  • Effort vs. Duration • Effort estimate • Duration estimate Exam – The number of labor – The total number ofPreparation units required to work periods complete a required to schedule activity complete a – Usually expressed schedule activity as staff hours, staff – Usually expressed days, or staff weeks as work days, or – Sometimes referred work weeks work estimatePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 40
  • T&T: Estimating Methods • Analogous: uses parameters by comparison to a previous similar project or activity (not so Exam accurate, top-down, a form of expert judgment)Preparation • Parametric: uses a statistical relationship between historical data and other variables (a mathematical model) • Three-Point: improved accuracy by considering uncertainty and risk. Program Evaluation & Review Technique (PERT) define a range using optimistic, most likely and pessimistic scenarios tE = (tO + 4tM + tP) / 6 • Reserve analysisPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 41
  • Expected Accuracy Range Exam Project life cyclePreparation +/- 50 to 100% +/- 5 to 10% Rough Order of Magnitude Definitive (ROM) +/- 15 to 25% BudgetaryPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 42
  • Exam Preparation Three Point Estimating Exercise 3-3
  • 6.5 Develop Schedule Tools & Techniques Inputs 1. Activity list 1. Schedule Outputs Exam network analysisPreparation 2. Activity Attributes 2. Critical path 1. Project schedule 3. Project schedule method 2. Schedule baseline network diagrams 3. Critical chain 3. Schedule data 4. Activity resource method 4. Project document requirements 4. Resource updates 5. Resource leveling Calendars 5. What-if scenario 6. Activity duration analysis estimates 6. Applying leads 7. Project Scope & lags statement 7. Schedule 8. EEF compression 9. OPA 8. Scheduling toolPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 44
  • T&T: The Critical Path Method ExamPreparation Activity A Early start Duration Late start Early finish Float Late finishPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 45
  • Start CPM – example Activity Early start Duration Late start Activity A Activity B Early Float Late finish Exam0 finish 7 5Preparation Finish Activity C Activity D 2 3 Activity E 3PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 46
  • Start CPM - forward pass Activity Early start Duration Late start Activity A Activity B Early Float Late finish Exam0 finish 7 7 5Preparation 7 12 Finish Activity C Activity D 7 2 12 3 9 15 Activity E 0 3 3PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 47
  • Start CPM – backward pass Activity Early start Duration Late start Activity A Activity B Early Float Late finish Exam0 finish 7 0 7 5 7Preparation 7 7 12 12 Finish Activity C Activity D 7 2 10 12 3 12 9 12 15 15 Activity E 0 3 12 3 15PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 48
  • Start CPM – float calculation Activity Early start Duration Late start Activity A Activity B Early Float Late finish Exam0 finish 7 0 7 5 7Preparation 7 0 7 12 0 12 Finish Activity C Activity D 7 2 10 12 3 12 9 3 12 15 0 15 Activity E 0 3 12 3 12 15PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 49
  • Float  Total float – the total amount of time that a schedule activity may be delayed from its early start ExamPreparation date without delaying the project finish date, or violating a schedule constraint. The difference between the early finish dates and the late finish dates.  Free float – the amount of time a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities. PMBOK® Guide – Fourth Edition, GlossaryPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 50
  • Calculate total float of each path Exam  ABD = 0 + 0 + 0 = 0Preparation  ACD = 0 + 3 + 0 = 3  AED = 12  ABD is the critical path  Any change in ABD durations changes the duration of the projectPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 51
  • Calculate free float  Subtract the early finish of the predecessor activity from the early start of the successor activity to ExamPreparation determine free float.  ESj – EFi = free float  ES of activity D = 12  EF of activity C = 9  Free float is 12 – 9 = 3  Free float is where the schedule is most flexiblePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 52
  • The critical path  The only way to shorten the schedule Exam is to shorten the critical pathPreparation  Reducing the critical path will often lead to a new critical path  Continue compressing the schedule until you can meet an acceptable date, or there are no remaining reasonable actions to reduce itPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 53
  • T&T: Critical Chain Method • An alternative schedule network analysis technique that: ExamPreparation – Modifies the project schedule to account for limited resources – Uses the Critical Path with added duration buffers to activities that use the identified limited resources • It is not a replacement of CPM, it is an addition to CPM • It is known as resource constrained CPPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 54
  • T&T: Resource Leveling • Moving resources from one activity to another in order to maintain as close to a ExamPreparation level resource requirement as possible for the duration of the project • Often results in an extended schedule as a compromise for being able to use a constant amount of resources on a project • Often results changes to the original CPPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 55
  • T&T: What-If Scenario Analysis • Asks the question “what if X happened” Exam and then analyzes the impact to thePreparation project duration in order to prepare contingency and response plans • Monte Carlo Analysis is a common example of simulation and distribution of possible outcomesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 56
  • T&T: Schedule Compression • Schedule compression shortens the Exam project schedule without changing thePreparation project scope • Two basic techniques are: – Crashing – Fast-trackingPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 57
  • T&T: Crashing • Applying additional resources to shorten Exam the schedulePreparation • A positive crash slope indicates that we can actually save money by crashing • A negative crash slope indicates that it will cost more money, but still successfully compresses the schedule • Can lead to increased risk, increased cost, a change to the critical pathPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 58
  • T&T: Fast-Tracking • Scheduling work packages or activities Exam in parallel that normally would be donePreparation in sequence • Likely to increase risk on the project and reworkPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 59
  • Output: Project Schedule • Can be in any form that the performing Exam organization wants it to be inPreparation Network diagrams Bar charts Milestones chartsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 60
  • Output: Schedule Baseline • A specific version of the project Exam schedule developed from the schedulePreparation network analysis of the schedule model • The planned schedule that will be used to determine and measure variations, to assess the progress on the projectPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 61
  • Output: Schedule Data Includes: Exam • MilestonesPreparation • Schedule activities and documentation • Resources requirements by time period (histogram) • Alternative schedules • Contingency reserves • Delivery schedulesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 62
  • 7.1 Estimate Costs Tools & Techniques 1. Expert Exam Inputs judgment OutputsPreparation 2. Analogous 1. Scope baseline estimating 2. Project schedule 1. Activity cost 3. Parametric 3. Human resource estimates estimating plan 2. Basis of estimates 4. Bottom-up 4. Risk register 3. Project documents estimating 5. EEF updates 5. Three-point 6.OPA estimates 6. Reserve analysis 7. Cost of quality 8. PM estimating software 9. Vendor bid analysisPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 63
  • 7.1 Inputs 1. Scope baseline: scope statement Exam (constrains in quality, resources, etc),Preparation WBS (components & deliverable), WBS dictionary (the work required) 2. Project schedule: quantity of resources and amount of time applied 3. Human resource plan: staffing attributes, rates, rewards, etc 4. Risk register: take into account the risk response planningPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 64
  • T&T: Estimating Methods • Analogous: uses parameters by comparison to a previous similar project or activity (not so ExamPreparation accurate) • Parametric: uses a statistical relationship between historical data and other variables • Bottom-Up: summarize costs to higher levels • Three-Point: improved accuracy by considering uncertainty and risk. Program Evaluation & Review Technique (PERT) define a range using optimistic, most likely and pessimistic scenarios cE = (cO + 4cM + cP) / 6PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 65
  • T&T: Estimating Methods • Reserve analysis: 1. Contingency allowances for unplanned but potentially Exam required changes as a result from realized risksPreparation identified in the risk register • Are included in cost baseline 2. Management reserves for unplanned changes to project scope and cost • PM may be required to obtain approval before spending management reserve • Not part of the project cost baseline • May be part of the total project cost • Cost of quality • The work added to accommodate quality • Conformance / non-conformance cost • Vendor bid analysisPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 66
  • Types of Cost • Variable costs : cost of material, supplies, Exam wagesPreparation • Fixed costs : set-up, rental, etc • Direct costs : directly attributed to the project • Indirect costs : overhead costs incurred for the benefit of more then one projectPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 67
  • 7.2 Determine Budget Tools & Techniques Exam Inputs 1. Cost OutputsPreparation 1. Activity cost aggregation estimates 2. Reserve 1. Cost performance 2. Basis of estimates analysis baseline 3. Scope baseline 3. Expert judgment 2. Project funding 4. Project schedule 4. Historical requirements 5. Resource relationship 3. Project document calendars 5. Funding limit updates 6. Contracts reconciliation 7. OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 68
  • T&T: Cost Aggregation • Individual activity cost Cost budget Exam estimates are aggregated Mng reservePreparation (brought together) at the Cost baseline work package level of the WBS Contingency rsv • The work package Project estimates are then Control account aggregated to the control account level and ultimately Work packages to the project level ActivitiesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 69
  • T&T: Funding Limit Reconciliation • Funding availability (as in when the Exam funds are available) may be aPreparation constraint that effects scheduling activities • Project Managers must reconcile spending rates with funding rates to insure the integrity of the schedule baselinePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 70
  • Output: Cost Baseline ExamPreparationPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 71
  • 8.1 Plan Quality Tools & Techniques Inputs 1. Cost-benefit Exam Outputs analysisPreparation 1. Scope baseline 2. Cost of quality 2. Stakeholder 3. Control charts 1. Quality register 4. Benchmarking management plan 3. Cost 5. Design of 2. Quality metrics performance baseline experiments 3. Quality checklists 4. Schedule baseline 6. Statistical 4. Process 5. Risk register sampling Improvement plan 6. EEF 7. Flowcharting 5. Project document 7. OPA 8.Proprietary updates quality mng meth 9. Additional quality planning toolsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 72
  • Quality management recognize the importance of • Customer satisfaction Exam • Prevention over inspection: quality isPreparation planned, designed, built in • Continuous improvement • Management responsibility: success requires the participation of all team members, management responsibility is to provide the resources neededPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 73
  • Common Quality Terms • Quality: the degree to which a set of inherent characteristics fulfill requirements ExamPreparation • Grade: a category assigned to products or services having the same functional use but different technical characteristics • Precision: the values of repeated measurements are clustered and have little scatter • Accuracy: the measured value is very close to the true valuePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 74
  • Common Quality Terms • Variable – a quality characteristic measured Exam in incrementsPreparation • Attribute – a quality characteristic that either is classified as conforming or non- conforming • Mean – the mathematical average • Mode – the middle most figure • Median – the most frequentPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 75
  • T&T: Cost-Benefit Analysis • Look at all of the tangible and intangible Exam costs of a quality programPreparation • Look at all of the tangible and intangible benefits of a quality program • Decide the size of quality program on the project (less rework, higher productivity, lower costs, increased stakeholders satisfaction)PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 76
  • T&T: Cost of Quality (COQ) Cost of Conformance: money spent during the Exam project to avoid failurePreparation – Prevention cost (build a quality product) • Training, studies, surveys • Document processes • Equipment • Time to do it right – Appraisal costs (assess the quality) • Field testing, planning, and execution • Statistical process control costs • Quality audits • Test evaluationPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 77
  • T&T: Cost of Quality (COQ) Cost of Nonconformance: money spent ExamPreparation during & after the project because of failure – Internal failure costs (found by the project) • Rework • Scarp – External failure costs (found by the customer) • Liabilities • Warranty work • Lost businessPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 78
  • Quality Theorists Edward Deming Plan, do, check, act cycle & 14 steps to TQM, 85% of quality is management’s responsibility ExamPreparation Phillip Crosby Prevention over inspection, zero defects, quality is free=conformance to requirements Joseph Juran The 80/20 principle, top management involvement, “fitness for use”, grades of quality Walter Shewhart Statistical tools, control chart techniques Kaoru Ishikawa Seven tools for quality management, Quality Circles Kaizen Approach First improve quality of the people, then the quality of product or servicesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 79
  • Standard Deviation • A measure of dispersion around 1 Standard Deviation 68.26% ExamPreparation some central point, usually the mean 2 Standard Deviations 95.46% • Six Sigma methodologies: 3 Standard Deviations 99.73% – DMADV (define, measure, analyze, 6 Standard Deviations 99.99% design, verify) – DMAIC (define, measure, analyze, improve, control)PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 80
  • T&T: Control Charts • Are used to determine whether or not Exam a process is stable or has predictablePreparation performance • Terms: – Upper & lower specification limits = based on requirements, reflect max/min values allowed – Upper & lower control limits = set by the PM, reflect the points for corrective action to prevent exceeding specification limitsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 81
  • T&T: Control Charts • How to apply: Exam – Control limits are generally ±3σPreparation – Out of control when 1. One data exceed a control limit 2. Seven consecutive data are above or below the meanPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 82
  • T&T: Benchmarking • Comparing actual or planned practices Exam to those of comparable projects toPreparation identify best practices and provide standards against which to measure performancePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 83
  • T&T: Design of Experiments (DOE) ExamPreparation • A statistical method or tool that helps identify which factors may influence specific variables of a product or process • Is used to determine the number and type of tests and their impact on cost of qualityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 84
  • T&T: Statistical Sampling • Choose part of a population of interest Exam for inspection to determine whether itPreparation falls within acceptable variance • Cost of quality will include the number of tests, expected scrap, etcPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 85
  • T&T: Flowcharting • A graphical representation of a Exam process showing the relationshipPreparation among process steps • Helps identify quality issues before they occurPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 86
  • Additional Quality Planning Tools • Brainstorming ExamPreparation • Affinity diagrams (organize thoughts & facts) • Force Field Analysis (examines the drive and resistance of change) • Nominal Group Techniques • Matrix diagrams (relationships between factors, causes, objectives) • Prioritization MatricesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 87
  • • Gold plating = give customer extras – NO – PMI = focus on meeting the requirements • Prevention over inspection = metrics ExamPreparation must be determined before the work begins • Responsibility of quality = work should meet requirements, testing must be done before submission • Impact of pure quality = spending time on quality has value • Marginal analysis: incremental revenue from improvements = incremental costs to secure itPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 88
  • • Quality planning = 1. identify which quality standards are relevant to the project, 2. determine how to satisfy Exam themPreparation • Quality assurance = determine if the project is complying with organizational and project policies and processes • Quality control = measure specific project results against standards to identify ways to eliminate causes of unsatisfactory performancePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 89
  • Output: Quality Management Plan • Describes how the project Exam management team will implement thePreparation performing organization’s quality policy • Will be an input to the overall project management plan • Includes quality control, quality assurance, continuous process improvement approachesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 90
  • More Outputs • Quality metrics: operational definition that Exam describes what something is and how thePreparation quality control process measures it • Quality checklists: structured tool, usually component-specific, used to verify that a set of required steps has been performed • Process improvement plan: Details the steps for analyzing processes that will facilitate the identification of waste and non-value added activity thus increasing customer valuePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 91
  • 9.1 Plan Human Resource Tools & Techniques Exam Inputs • Organization OutputsPreparation 1.Activity resource charts and position requirements descriptions 1. Human resource 2. Enterprise 2. Networking Plan environmental 3. Organization factors theory 3. Organizational process assetsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 92
  • Resource planning techniques Responsibility Matrix Identifies who does what and when ExamPreparation Resource Quantifies work hours against work Spreadsheet period Resource Identifies daily work to be accomplished daily/weekly by each resource allocation sheet Resource Gantt Illustrates calendar time a resource is Chart active on a task Resource Histogram Column chart illustrating the number of (Resource Loading resources needed during each work Chart) periodPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 93
  • Responsibility matrix example Responsibility Name Primary Secondary Exam Project Planning, communications,Preparation manager tracking, reporting Functional Requirements analysis, Traceability of requirements consultant scope elaboration Technical Technical requirements, Integration architect architecture, traceability Designer User interface, module Integration test cases design review Developer Coding, program unit testing Scope mapping, traceability Database Database design, Optimization, application administrator normalization performance QA – test QA planning, test case Requirement testability analyst development, execution, results trackingPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 94
  • Resource spreadsheet and allocation Name Function Experience Contact E-mail Person 1 Project Manager 9 years 022-xxxxxx alex@abc.com Person 2 Technical lead 7 years 022-xxxxxx mike@abc.com Person 3 Functional cons. 6 years 022-xxxxxx flora@abc.com Exam Person 4 Architect 7 years 022-xxxxxx arj@abc.comPreparation Person 5 Developer C#, 3 years 022-xxxxxx kan@abc.com Javascript, HTML, MS.net 2.0 Name Mon Tue Wed Thu Fri 8-12 Oct 15-19 22-26 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct Oct Oct Person 1 PM PM PM PM PM PM PM PM Person 2 Tech Tech Tech Tech. Tech. Develop Develop Develop analysis analysis analysis workshop workshop Person 3 Func. Func. Func. Func. Func. Func. Consulting Consulting Consulting Consulting Consulting Consulting Person 4 Security Security Network Application Infrastructur e Person 5 Program Specs. Specs. Specs specs.PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 95
  • Resource histogram example 120% Exam 100%Preparation % allocation Person 1 80% Person 2 60% Person 3 Person 4 40% Person 5 20% 0% 1-Oct 2-Oct 3-Oct 4-Oct 5-Oct DatePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 96
  • Responsibility assignment matrix •A responsibility assignment matrix (RAM) is used to assign roles to each deliverable or activity. ExamPreparation •Roles can include:  Accountable = the person who owns the activity. This person reports on the status and insures the work is done and done correctly  Responsible = the person doing the work. This can be the same person as the accountable resource, or it can be a different person  Consult = this person can provide expertise, past experience or information needed for the activity  Inform = this person needs to be aware of the results and the status of the activityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 97
  • RAM exampleActivity Person 1 Person 2 Person 3 Person 4 ExamCollectPreparation A R R SrequirementsDevelop design A C SBuild prototype A SLayout production A CDevelop A ITest I I ADeploy APMP® Exam | Unit 3: Planning Process Group Irene Andrioti 98
  • Organizational Theory Functional A hierarchy where each employee has one Exam clear superior, grouped by specialtyPreparation Matrix A blend of functional and projectized characteristics Projectized Most of the organization’s resources are involved in project work; project team members are co-located Composite A combination of all three other structuresPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 99
  • Functional Project Structure Chief Exam ExecutivePreparation Functional Functional Functional Manager Manager Manager Project Staff Staff StaffCoordination Staff Staff Staff Staff Staff Staff Project TeamPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 100
  • Projectized Project Structure Exam ChiefPreparation Executive Project Project Project Manager (A) Manager (B) Manager (C) Staff Staff Staff Staff Staff Staff Staff Staff Staff ProjectCoordination Project TeamPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 101
  • Weak Matrix Organization Chief Exam ExecutivePreparation Functional Functional Functional Manager Manager Manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Project CoordinationPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 102
  • Output: Human Resource Plan • Provides guidance on how project Exam human resources should be defined,Preparation staffed, managed, controlled, released – Role, authority, responsibility, competency – Project organization charts – Staffing management plan: staff acquisition, resource calendars, staff release plan, training needs, recognition and rewards, compliance, safetyPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 103
  • 10.2 Plan Communications Tools & Techniques Exam Inputs 1. Communication OutputsPreparation • Stakeholder requirements Register analysis 1. Communication 2. Stakeholder 2. Communication management plan Management strategy Technology 2. Project documents 3. EEF 3. Communication updates 4. OPA Models 4. Communication methodsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 104
  • T&T: Communication requirements analysis • Determines the information needs of Exam the project stakeholdersPreparation • Can be o Formal or informal communication o Horizontal and/or vertical communication o Written and/or verbal communicationPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 105
  • • Encode the message carefully = select the appropriate communication mean & method ExamPreparation • Confirm the message is understood = feedback • Decode the message carefully = effective listening • Recognize the communication channelsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 106
  • Effective Communication  Verbal ExamPreparation  Paralinguistic  Non-verbal  !!! Loss of effectiveness when you only have words to convey your message  93% loss on e-mails  55% on phone callsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 107
  • Communication Channels • A communication channel Exam is the line ofPreparation communication between two or more parties n(n-1) / 2PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 108
  • Output: Communications Plan Stakehol Information Medium Frequency Owner Exam der NeedsPreparation Sponsor Project Written Monthly Project status report manager Project Project Meetings Weekly Project team updates manager These five items constitute the minimum components of a communications plan.PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 109
  • 11.1 Plan Risk Management Tools & Techniques Exam InputsPreparation 1. Planning Outputs 1. Project Scope meetings and Statement Analysis 1. Risk management 2. Cost management Plan Plan 3. Schedule Management plan 4. Communication Management plan 5. EEF 6. OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 110
  • Output: Risk management plan • Describes how risk management will be structured and performed on the project ExamPreparation • Includes – Methodology – Roles & Responsibilities – Budgeting – Timing – Risk categories (as a list or a RBS) – Definition of risk probability and impact – Probability and Impact matrix – Revised stakeholders tolerances – Reporting formats – TrackingPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 111
  • 11.2 Identify Risk Inputs Tools & Techniques Exam 1. Risk mng plan OutputsPreparation 2. Activity cost 1. Documentation Estimates reviews 3. Activity duration 2. Information • Risk register Estimates gathering 4. Scope baseline techniques 5. Stakeholder 3. Checklist analysis Register 4. Assumptions 6. Cost mng plan Analysis 7. Schedule mng plan 5. Diagramming 8. Quality mng plan Techniques 9. Project documents 6. SWOT analysis 10. EEF 7. Expert judgment 11. OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 112
  • T&T: Information Gathering Techniques • Brainstorming ExamPreparation • Delphi Technique • Interviewing • Root Cause Identification • SWOT Analysis • Checklists Analysis • Assumptions AnalysisPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 113
  • T&T: Diagramming Techniques • Cause-and-effect diagrams Exam (Ishikawa or fishbone diagrams)Preparation • System or process flow charts (how elements interrelate) • Influence diagrams (relationships among variables and outcomes)PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 114
  • Output: Risk Register • A component of the project Exam management planPreparation • At this point in a project it includes: – List of identified risks – List of potential responses – Root causes of risk – Updated risk categoriesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 115
  • 11.3 Qualitative Risk Analysis Tools & Techniques Exam Inputs 1. Risk probability OutputsPreparation • Risk register and impact • Risk mng plan Assessment • Risk register • Project Scope 2. Probability and updates Statement Impact matrix 4. OPA 3. Risk data Quality assessment 4. Risk categorization 5. Risk urgency assessment 6. Expert judgmentPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 116
  • Dimensions of the risks • Probability ExamPreparation • Impact • Exposure = Probability x Impact • Causes • Effects – Negative  Treat – Positive  OpportunityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 117
  • T&T: Probability and Impact Matrix ExamPreparation high Probability low low high ImpactPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 118
  • Using the P x I Matrix (Example) Med Risk score = P x I High (yellow) (red) Exam ProbabilityPreparation 5 5 10 15 20 25 4 4 8 12 16 20 3 3 6 9 12 15 2 2 4 6 8 10 1 1 2 3 4 5 1 2 3 4 5 Low (green) Impact (linear scale) on [an objective]PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 119
  • Other assessment T&T • Risk data quality assessment: Determine the usefulness of the data gathered (is unbiased and Exam accurate?)Preparation • Risk Categorization: – May include categorization by source of risk, phase of project, type of risk, etc. – Grouping risks by common root causes may lead to developing more effective risk responses • Risk urgency assessment: how quickly a response is needed? Risks triggers, time needed to develop and implement, etcPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 120
  • Exam PreparationConducting a Risk Analysis Exercise 3-5
  • 11.4 Quantitative Risk Analysis Tools & Techniques Exam InputsPreparation • Data gathering Outputs 1. Risk register and representation 2. Risk mng plan techniques 1. Risk register 3. Cost mng plan 2. Quantitative risk Updates 4. Schedule mng analysis and plan modeling 5. OPA techniques 3. Expert judgmentPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 122
  • T&T: Data Gathering and Representation Techniques Exam • Interviewing stakeholders to determine thePreparation three-point estimates for each WBS element • Probability Distributions • Modeling techniques: – sensitivity analysis / tornado diagram – Expected monetary values analysis – Modeling & simulation / Monte Carlo technique • Expert JudgmentPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 123
  • Expected Monetary Value (EMV) • EMV is frequently used with decision Exam trees to quantify a decisionPreparation EMV = Value * ProbabilityPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 124
  • A Decision Tree Example Decision Chance Path Values Decisionand Project Cost Technology Technology Chance Profits Profits and Probabilities Path Values and Project Cost And Probabilities 30% Exam Works Well $2,200Preparation $3,000 Profit: New Technology $450 = (30% x $2,200) + (70% x $ -300) $ -800 70% Has $ -300 Problems $500 Technology Choice 80% Works Well $700 $1,000 Old Profit: Technology $600 = (80% x $700) + (20% x $200) $ -300 20% $200 Has Problems $500PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 125
  • EMV Example Delay EMV Probability Impact Total Exam Contractor in of Delay per day Impact (P x I)Preparation Days A 35% 60 $1,000 $60,000 $21,000 B 55% 20 $1,000 $20,000 $11,000PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 126
  • Decision Tree Analysis ExamPreparation Decision A Decision A will return A $6,000 and has a 60% cost $1,800 likelihood of success Decision B will return Decision B $8,500 and has a 40% cost $1,400 B likelihood of successPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 127
  • • Decision Tree Analysis using EMV ExamPreparation EMV Decision A will return Decision A A $3,600 cost $1,800 $6,000 and has a 60% likelihood of success -1,800 $1,800 Decision B will return Decision B $8,500 and has a 40% cost $1,400 B likelihood of success $3,400 -1,400 $2,000PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 128
  • • Decision Tree Analysis using EMV with a cost element included ExamPreparation EMV Decision A will return $3,600 Decision A A cost $1,800 $6,000 and has a 60% -1,800 likelihood of success $1,800 Decision B will return Decision B $8,500 and has a 40% $3,400 cost $1,400 B likelihood of success -1,400 $2,000PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 129
  • 11.5 Plan Risk Responses Tools & Techniques Exam Inputs 1. Strategies for OutputsPreparation • Risk register negative risks • Risk mng plan and threats 1. Risk register 2. Strategies for updates positive risks and 2. risk-related opportunities contract decisions 3. Contingent 3. Project mng plan response strategies updates 4. Expert judgment 4. Project documents updatesPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 130
  • T&T: Response Strategies • For negative risks • For positive risks or Exam or threats: opportunities:Preparation – Avoidance – Exploit – Transference – Share – Mitigation – Enhance – Acceptance – Acceptance – Contingency plans – Contingency plansPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 131
  • T&T: Contingent Response Strategy Exam • For some risks, it is appropriate for thePreparation project team to make a response plan that will only be executed under certain predefined conditions – Contingency reserves – Fallback plansPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 132
  • Output: Risk Register (updates) • Risk Owners and • Agreed upon Exam assigned response strategiesPreparation responsibility • Symptoms and • Specific Actions to warning signs of implement risk occurrence • Budget and (triggers) schedule needed to • Time and cost implement the contingency chosen responses reserves • Contingency plans • Fallback plans • Residual risks • Secondary risksPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 133
  • Residual Risk vs. Secondary Risk • A “residual risk” is • A “secondary risk” Exam the risk that is a new risk thatPreparation remains after risk arises as a result of responses have implementing a risk been implemented. response.PMP® Exam | Unit 3: Planning Process Group Irene Andrioti 134
  • Risk Trigger • Indications that a risk has occurred or Exam is about to occurPreparation • May be discovered in the risk identification process and watched in the risk monitoring and control process • Are also called risk symptoms or risk warning signsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 135
  • Make-or-Buy Analysis • Reasons to make: • Reasons to buy: Exam – Less costly – Less costlyPreparation – Easy integration of – Utilize skills of operations suppliers – Utilize existing – Small volume capacity requirement – Maintain direct – Limited internal control capacity or – Maintain secrecy capability – Avoid unreliable – Maintain multiple suppliers supply sources – Indirect controlPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 136
  • Contract Types • Contracts usually fall into three Exam categories:Preparation – Fixed-Price – Cost-Reimbursable – Time and MaterialsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 137
  • Risk Potential of Contract Types Exam LowPreparation High Firm Fixed-Price (FFP) Fixed-Price with Incentive Fee (FPIF) Cost & Cost Sharing Vendor Cost Plus Incentive Fee (CPIF) Buyer Risk Cost Plus Award Fee (APAF) Risk Cost Plus Fixed Fee (CPFF) Time & Materials Low HighPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 138
  • 12.1 Plan Procurements Inputs 1. Scope baseline Tools & Techniques Exam 2. Requirements OutputsPreparation Documentation • Make-or-buy 1. Procurement mng 3. Teaming analysis Plan agreements 2. Expert judgment 2. Procurement 4. Risk register 3. Contract types Statement of work 5. Risk-related 3. Make-or-buy contract decisions decisions 6. Activity resource 4. Procurement docs requirements 5. Source selection 7. Project schedule Criteria 8. Activity cost 6. Change requests estimates 9. Cost performance baseline 10. EEF 11.OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 139
  • Output: Procurement Management Plan • Types of contract to be • Constraints and ExamPreparation used Assumptions • Source of independent • Procurement estimates coordination • Actions for the project • Sets procurement management team dates • Standardized • Identifies performance procurement bond and insurance documents considerations • Multiple providers • List of approved vendorsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 140
  • Output: Procurement Statement of Work Exam • A narrative description of products,Preparation services, or results to be supplied • Includes sufficient detail to allow prospective sellers to determine if they are able of providing the itemPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 141
  • Output: Procurement Docs • Request for proposal – RFP ExamPreparation • Request for information – RFI • Invitation for bid – IFB • Request for quotation - RFQPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 142
  • Output: Source Selection Criteria • Purchase price ExamPreparation • Scoring models • Rating modelsPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 143
  • 4.2 Project Management Plan Tools & Techniques Inputs Exam OutputsPreparation 1. Project Charter • Expert Judgment 2. Outputs from 1. Project planning processes Management plan 3. EEF 4. OPAPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 144
  • Output: subsidiary plan or doc • Requirements mng plan • Schedule mng plan ExamPreparation • Cost mng plan • Quality mng plan • Communication mng plan • Human resource mng plan • Risk mng plan • Procurement mng plan • Schedule baseline • Cost performance baseline • Scope baselinePMP® Exam | Unit 3: Planning Process Group Irene Andrioti 145
  • Final steps • Obtaining Project Management ExamPreparation Plan Approval • Conducting a kickoff meetingPMP® Exam | Unit 3: Planning Process Group Irene Andrioti 146
  • Exam PreparationPlanning Process Group Practice Questions