3. 3Quality vs Grade
Let's say you develop a cell phone which has a 6 Mega Pixel video camera, MP3 Player and Web Browser
supporting 10 different applications. We will say grading of this phone is very high. Now, when we buy it
and start using it, we find out that video camera is not taking clear pictures, voice quality is very low and
web browser gets frozen after every few minutes because of application error. Now, we will say that the
quality of cell phone is very low.
On the other hand if you have a cell phone which only supports voice communication and no additional
features are available in it, we will call it a low grade phone. However, when you use it you do not face any
voice drop or other issue. So, it will be ranked as high quality phone with low grading.
4. 4Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry
bests or best practices from other companies. Dimensions typically measured are quality, time and cost. In the
process of best practice benchmarking, management identifies the best firms in their industry, or in another
industry where similar processes exist, and compares the results and processes of those studied (the "targets") to
one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the
business processes that explain why these firms are successful.
Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity
per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of
performance that is then compared to others.
Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in
management and particularly strategic management, in which organizations evaluate various aspects of their
processes in relation to best practice companies' processes, usually within a peer group defined for the purposes
of comparison. This then allows organizations to develop plans on how to make improvements or adapt specific
best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off
event, but is often treated as a continuous process in which organizations continually seek to improve their
practices.
6. 6Cost of Quality
The "cost of quality" isn't the price of creating a quality product or service. It's the cost of
NOT creating a quality product or service.
Every time work is redone, the cost of quality increases. Obvious examples include:
• The reworking of a manufactured item.
• The retesting of an assembly.
• The rebuilding of a tool.
• The correction of a bank statement.
• The reworking of a service
In short, any cost that would not have been expended if quality were perfect contributes
to the cost of quality.
13. 13Organizational Theory
Organizational theory provides information regarding the way in which people, teams and
organizational units behave. Effective use of common themes identified in organizational theory can
shorten the amount of time, cost, and effort needed to create the Plan Human Resource Management
process outputs and improve planning efficiency. It is important to recognize that different organizational
structures have different individual response, individual performance and personal relationship
characteristics. Also, applicable organizational theories may recommend exercising a flexible leadership
style that adapts to the changes in a team’s maturity level throughout the project life cycle:
a. Abraham Maslow, Hierarchy of Needs
b. Frederick Irving Herzberg, Motivator-Hygiene Theory
c. Douglas Murray McGregor, Theory X & Theory Y
d. William Ouchi, Theory Z
e. Victor Vroom, Expectancy Theory of Motivation
f. Burrhus Frederic BF Skinner, Reinforcement Theory of Motivation
g. Others (David Rock, SCARF Brain-based Collaboration & Influencing Model, Clayton Paul Alderfer's ERG Theory
(Existence, Relatedness, Growth), David Clarence McClellan’s Acquired Needs Theory (Achievement, Affiliation, Power),
Richard Ryan/Edward Deci’s Cognitive Evaluation Theory-CET (Intrinsic, Extrinsic), John Stacey Adams’ Equity Theory
(Ratio of Ratios), etc)
14. 14Organizational Theory
Maslow’s
Hierarchy of
Needs
Herzberg’s
Theory of
Motivation
McGregor’s
Theory X
and Y
Ouchi’s
Theory Z
Commitment
Opportunity
Advancement
Rank-and-file,
lifetime employment
Expectancy
Theory
People will behave
based on what they
expect as a result of
their behavior.
People will work in
relation to the
expected reward of
the work.
17. 17What is Risk?
Project risk is “an uncertain event or condition that if it occurs has a positive
or negative effect on one or more project objectives such as scope, schedule, cost, or quality.”
Cost of risk (COR) is “the cost of actual losses sustained, administrative costs of the risk management
program, costs of funding losses, cost of risk control efforts and other outside service costs
Four Major COR Components
1. Total cost of losses sustained
2. Administrative costs of your risk management program
3. Cost of funding losses
4. Cost of risk control efforts
21. 21Stakeholder
A stakeholder is any individual, group or organization that can affect, be affected by, or perceive itself to be
affected by a programme
They give and also take … money, people and support
Their influence and level of involvement fluctuates.
Potential Stakeholders
Current Stakeholders
Team
Work
22. 22Internal vs External Stakeholders
Enviromental
groups
Local
communities
CreditorsGovernment
Suppliers Customers
Employees
Corporation
Shareholders
23. 23Primary vs Secondary Stakeholder
Enviromental
groups
Local
communities
CreditorsGovernment
Suppliers Customers
Employees
Corporation
Shareholders
