Chapter-5-implementation.pptx

Chapter 5
Project Implementation

Part 5
Learning objectives:
after learning topics in this part, you should
be able to:
know how project teams are setup and
staffed
 Appreciate suitable ways of Motivating
project team members
 Recognize staff development programs of
project staff
 Embrace group level conflicts and
implement conflict resolution mechanisms
Project Human
Resource
Management

Human Resources Management
•“The processes that organize and
manage the project team”

Figure 9-5. Sample Responsibility Assignment Matrix
(RAM)
Information Technology Project
Management, Eighth Edition
4

One of the truly remarkable things about work
groups is that they can make 2 +2 =5. Of
course, they also havethe capability of
making
2 +2 = 3.

Project organization
• Clearly defined roles and responsibilities are essential
for the successful project
• Roles and responsibilities are assigned to one of six
groups
• Project Sponsor
• Senior Management
• Project Team
• Stakeholders
• Functional Manager
• Project Manager

How Do We Manage Human Resources?
• Four processes
• Develop Human Resources Plan
• Acquire Project Team
• Develop Project Team
• Manage Project Team
Develop Human
Resources Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team

Develop Human Resources Plan
Enterprise
Environmental
Factors
Organizational
Process Assets
Project
Management
Plan
Roles and
Responsibilities
Organizational charts and
position descriptions
Networking
Organizational theory
Inputs Outputs
Tools & Techniques
Project Organizational
Charts
Staffing Management
Plan
Develop Human
Resources Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team

Acquire Project Team
Enterprise
Environmental
Factors
Organizational
Process Assets
Roles and
Responsibilities
Project Staff
Assignments
Pre-assessment
Negotiation
Acquisition
Virtual teams
Inputs Outputs
Tools & Techniques
Resource Availability
Staffing Management
Plan Updates
Project Org
Charts
Staffing
Management
Plan
Develop Human
Resources Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team

Develop Project Team
Project Staff
Assignments
Staffing Management
Plan
Resource Availability
General management skills
Training
Teambuilding activities
Ground rules
Co-location
Recognition and rewards
Inputs
Outputs
Tools & Techniques
Team
performance
assessment
Develop Human
Resources Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team

Manage Project Team
Organizational Process
Assets
Project Staff Assignments
Roles and
Responsibilities
Observation and conversation
Project performance appraisals
Conflict management
Issue log
Inputs
Outputs
Tools & Techniques
Requested
Changes
Project Org Charts
Staffing Management
Plan
Team Performance
Assessment
Work Performance
Information
Performance Reports
Recommended
Corrective Actions
Recommended
Preventive Actions
Organizational Process
Assets Updates
Project
Management
Plan Updates
Develop Human
Resources Plan
Acquire Project
Team
Develop Project
Team
Manage Project
Team

Activity
• What are the different possible ways of assigning project members?
• How do you make sure personnel are efficiently assigned in project
activities?

• Resource loading refers to the amount of individual resources an
existing schedule requires during specific time periods
• Overallocation means more resources than are available are assigned
to perform work at a given time
• Resource leveling is a technique for resolving resource conflicts by
delaying tasks
Resource Loading
13

Figure 9-7. Sample Histogram Showing an Overallocated
Individual
14

Figure 9-8. Resource Leveling Example
15

Organization structure of projects
• Types of organizations:
a. project driven eg. NASA
b. Non- project driven eg. Customs office
• There are three main types of project organizations:
1 Functional;
2 Matrix;
3 Project or task force.

Projects tend to have a matrix structure.
•The matrix structure groups employees by both
function and product.
•A matrix organization frequently uses teams of
employees to accomplish work

A matrix structure of Tesla company

Project Management Offices
-Centralized units that oversee
or improve the management
of projects
Resource centers for:
• Technical details
offloaded from manager
• Expertise in project
management skills
• Repository of lessons
learned, documentation
• Center for project
management excellence
Copyright © 2010 Pearson Education,
Inc. Publishing as Prentice Hall
2-23

Forms of PMOs
• Weather station – monitoring and tracking
• Control tower – project management is a skill to be protected and
supported
• Resource pool – maintain and provide a cadre of skilled project
professionals
Copyright © 2010 Pearson Education,
Inc. Publishing as Prentice Hall
2-24

1. Problem solving teams
• These were typically composed of 5 to 12 hourly employees from the
same department who met for a few hours each week to discuss ways
of improving quality, efficiency, and the work environment.

2. Self-managed work teams are groups of
employees (typically
• 10 to 15 in number who take on the responsibilities of their former
supervisors.

3. Cross functional teams
• This application is called cross-functional teams. These are teams
made up of employees from about the samehierarchical level, but
from different work areas, who come together to accomplish a task.
Eg/ committees

• Large groups are good for gaining diverse input but smaller groups are
better at doing something productive with that input.
• Increases in group size are inversely related to individual performance

The research on group size leads us to two additional conclusions:
(1) Groups with an odd number of members tend to be preferable to
those with an even number; and
(2) (2) groups made up of five or seven members do a pretty good job
of exercising the best elements of both small and large groups.
• Having an odd number of members eliminates the possibility of
ties when votes are taken.
• The best work teams tend to be small. When they have more than
about 10 to 12 members, it becomes difficult to get much done

Cohesiveness vs group productivity
• If performance-related norms are high (for example,high output,
quality work, cooperation with individuals outside the group), a
cohesive group will be more productive than will a less cohesive
group.
• But if cohesiveness is high and performance norms are low,
productivity will be low.
i.e. Groupthink, groupshift

Common Responsibilities
• Project Sponsor
Accept the product
Provide key dates
Risk threshold
Senior Management
 Provide planning time
 Prioritize projects
 Prioritize triple constraint
 Issue project charter
 Protect the project
Project Team
 Perform work tasks
 Manage stakeholders
 Define quality
 Review project performance &
correct

Common Responsibilities
Functional Manager
 Assigns individuals to team
 Assist with team member
performance issues
 Notify PM of other project resources
demands
Project Manager
 Integrate project components
 In charge of project (not necessarily resources)
 Accountable for project failure
 Measure performance and act
 Does NOT sign the project charter

Organizational Charts
• Hierarchical Charts
• Matrix Based
• Responsibility Assignment Matrix (RAM)
• RACI - Responsible, Accountable, Consult, Inform
Activity Ann Ben Carlos Dina
Define A R I I
Design I A R C
Develop I A R C
Test A I I R
Person
Anna
Project Manager
Ed
Instrument Lead
Ted
Painter
Fred
Document
Control
R = Responsible A= Accountable C= Consult I =
Inform

Figure 9-5. Sample Responsibility Assignment Matrix
(RAM)
41

Part 7
be able to:
allot cost for activities and resource
acquisition
 Determine budget for activities
 Track const variances and control cost
Project Cost
Management

What is not measured is not
controlled, what is not
controlled is not managed…

Discussion
• What are the different costing methods and trends that are used in
your respective organizations?
• What the major reasons for cost overruns in projects?

Project Cost Management Processes
• Cost estimating: Developing an approximation or
estimate of the costs of the resources needed to
complete a project.
• Cost budgeting: Allocating the overall cost estimate to
individual work items to establish a baseline for
measuring performance.
• Cost control: Controlling changes to the project budget.
50

What is Cost and Project Cost
Management?
•A cost management plan is a document
that describes how the organization will
manage cost variances on the project.
•A large percentage of total project costs
are often labor costs, so project managers
must develop and track estimates for labor.
51

Basic cost items
• Tangible costs or benefits are those costs or benefits that an
organization can easily measure in dollars.
• Intangible costs or benefits are costs or benefits that are difficult
to measure in monetary terms.
• Direct costs are costs that can be directly related to producing
the products and services of the project.
• Indirect costs are costs that are not directly related to the
products or services of the project, but are indirectly related to
performing the project.
• Sunk cost is money that has been spent in the past; when
deciding what projects to invest in or continue, you should not
include sunk costs.
52

Cost Estimating
• Project managers must take cost estimates seriously if they want to
complete projects within budget constraints.
• It’s important to know the types of cost estimates, how to prepare
cost estimates, and typical problems associated with IT cost estimates.
53

Table 7-2. Types of Cost Estimates
54

Cost Budgeting
• Cost budgeting involves allocating the project cost
estimate to individual work items over time.
• The WBS is a required input for the cost budgeting
process because it defines the work items.
• Important goal is to produce a cost baseline:
• A time-phased budget that project managers use to measure
and monitor cost performance.
55

Developing the Project Budget
1. Analogous budgeting. This is a form of expert
judgment that uses a topdown approach to predict
costs. It is generally less accurate than other
budgeting techniques.
2. Parametric modeling. This approach uses a
parametric model to extrapolate what costs will be
for a project (for example, cost per hour and cost
per unit
3. Bottom-up budgeting This approach is the most
reliable, though it also takes the longest to create. It
starts at zero and requires each work package to be
accounted for.

57
Table 7-6. Business Systems Replacement Project Budget Estimates for
FY97 and Explanations
Budget Category Estimated Costs Explanation
Headcount (FTE) 13 Included are 9 programmer/analysts, 2
database analysts, 2 infrastructure
technicians.
Compensation $1,008,500 Calculated by employee change notices
(ECNs) and assumed a 4% pay increase in
June. Overload support was planned at
$10,000.
Consultant/Purchased
Services
$424,500 Expected consulting needs in support of the
Project Accounting and Cascade
implementation efforts; maintenance
expenses associated with the Hewlett-
Packard (HP) computing platforms;
maintenance expenses associated with the
software purchased in support of the BSR
project.
Travel $25,000 Incidental travel expenses incurred in
support of the BSR project, most associated
with attendance of user conferences and
off-site training.
Depreciation $91,000 Included is the per head share of
workstation depreciation, the Cascade HP
platform depreciation, and the depreciation
expense associated with capitalized
software purchases.
Rents/Leases $98,000 Expenses associated with the Mach1
computing platforms.
Other Supplies
and Expenses
$153,000 Incidental expenses associated with things
such as training, reward and recognition,
long distance phone charges, miscellaneous
office supplies.
Total Costs $1,800,000

58
Constructive Cost Model (COCOMO)
• Barry Boehm helped develop the COCOMO models for
estimating software development costs
• Parameters include source lines of code or function
points
• COCOMO II is a computerized model available on the
Web
• Boehm suggests that only parametric models do not
suffer from the limits of human decision-making

Cost control:Earned Value Management (EVM)
•Earned Value Management (EVM) is the
process of measuring performance of
project work against a plan to identify
variances.
•It can also be useful in predicting future
variances and the final costs at completion.
• EV is based on the original planned costs for the
project or activity and the rate at which the team is
completing work on the project or activity to date.
59

Earned Value Management Terms
•The planned value (PV), also called the
budget, is that portion of the approved
total cost estimate planned to be spent on
an activity during a given period.
•Actual cost (AC), is the total of direct and
indirect costs incurred in accomplishing
work on an activity during a given period.
•The earned value (EV), is an estimate of
the value of the physical work actually
completed.
60

2. Earned Value (EV) Earned Value is the physical work completed to
date and the authorized budget for that work.
Example
if a project has a budget of $100,000 and the work completed to date
represents 25 percent of the entire project work, its EV is $25,000.
Earned Value used to be known as the Budgeted Cost of Work
Performed (BCWP).

3. Actual Cost (AC) Actual Cost is the actual amount of monies the
project has required to date.
Example
if a project has a budget of $100,000 and $35,000 has been spent on
the project to date, the AC of the project would be $35,000. Actual
Cost used to be known as Actual Cost of Work Performed (ACWP).

Rate of Performance
• Rate of performance (RP) is the ratio of actual work
completed to the percentage of work planned to have
been completed at any given time during the life of the
project or activity.
• For example, suppose the server installation was
halfway completed by the end of week 1. The rate of
performance would be 50 percent (50/100) because by
the end of week 1, the planned schedule reflects that
the task should be 100 percent complete and only 50
percent of that work has been completed.
63

Earned Value Formulas
BAC budget at completion
64

Earned Value Calculations for One Activity
After Week One
66

Rules of Thumb for Earned
Value Numbers
• Negative numbers for cost and schedule variance
indicate problems in those areas.
• A CPI or SPI that is less than 100 percent indicates
problems.
• Problems mean the project is costing more than
planned (over budget) or taking longer than planned
(behind schedule).
67

Part 7
be able to:
 prepare quality specification plan
 assure the quality standards of project’s
deliverables
 carry out controlling and evaluation
against project’s standards
Project Quality
Management

“Quality is something
that fits its purpose”

What Is Project Quality?
• The International Organization for Standardization (ISO)
defines quality as “the degree to which a set of
inherent characteristics fulfills requirements”
(ISO9000:2000)
• Other experts define quality based on:
• Conformance to requirements: the project’s processes and
products meet written specifications
• Fitness for use: a product can be used as it was intended
Chapter 8 - Project Quality
Management
71

Q
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J
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C
TQ
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A
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IT
YM
A
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A
G
E
M
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1- INPUTS
-Quality policy
-Scope statement
-Product description
-Standards and regulations
-Other process outputs
2- TOOLS AND TECH.
-benefit/ cost analysis
-Benchmarking
-Flowcharting
-Design of experiments
3- OUTPUTS
-Quality management plan
-Operational definitions
-checklists
-Inputs to other processes
1- INPUTS
-Quality management plan
-result of quality control
measurements
2- TOOLS AND TECH.
-Quality planning tools and
techniques
-Quality audits
3- OUTPUTS
-Quality improvement
1- INPUTS
-work results
-quality management plan
-checklists
2- TOOLS AND TECH.
-inspection
-Control charts
-Pareto diagrams
-Statistical sampling
-flowcharting
-Trend analysis
3- OUTPUTS
-Quality improvement
-Acceptance decisions
-rework
-Completed checklist
-Process adjustment

Definition
What is Quality Planning ?
Quality Planning is identifying which quality standards
are relevant to the project and determining how to
satisfy them .

Definition
. What is Quality Assurance
Quality assurance is evaluating the overall project performance on a
regular basis to provide a confidence that the project will satisfy the
relevant quality standards.

Definition
What is Quality Control
Quality Control is the monitoring of specific project results to
determine if they comply with the relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.

Nature of PQM
• Project quality management must address both the management of
the project and the product of the project.
• Failure to meet quality requirements in either dimension can have
serious and negative consequences for any or all of the project
stakeholders

PQM Approach compatibility
• compatible with ISO 9000 and 1000 series of standard guidelines
• Proprietary approaches to quality as recommended by Deming, Juran,
and Crosby, and others.
• Nonproprietary approaches such as TQM, Continuous improvement
approaches and others.

International quality standards
ISO 9000: is a series of standard for the management
and assurance of quality.
1. ISO 9001- applies when the supplier is responsible
for the development, design, production,
installation and servicing of the product.
2. ISO 9002- aplies when the supplier is responsible for
production and installation
3. ISO 9003- applies for testing and inspecting of
product
4. ISO 9004 – provides guidelines for managers of
organizations to help them develop quality systems

Other ISO standards
• ISO 14000 series
• ISO 22000- Food safety
• ISO 26000- social responsibility
• ISO 50001- energy management
• ISO 31000- risk management
• ISO 27001 – information security
• ISO 45001- occupational safety and health

Malcolm Baldrige Award
• The Malcolm Baldrige National Quality Award originated in 1987 to
recognize companies that have achieved a level of world-class
competition through quality management
• Given by the President of the United States to U.S. businesses
• Three awards each year in different categories
• Manufacturing
• Service
• Small business
• Education and health care
Chapter 8 - Project Quality
Management
80

Part 8
be able to:
 Understand what risk is and the
importance of good project risk
management.
Discuss the elements involved in risk
management planning and the contents
of a risk management plan.
 List common sources of risks in
information technology projects.
Project Risk
Management

“What we anticipate
seldom occurs. What we
least expect generally
happens”.
Benjamin Disraeli

KPMG study found that 55 percent of runaway
projects—projects that have significant cost or
schedule overruns—did no risk management at all

The Importance of Project Risk
Management
• PMBOK definition of Project Risk
• An uncertain event or condition that, if it occurs, has a positive or
negative effect on the project objectives.
• Project risk management is non-stop process
Information Technology Project Management, Fourth Edition
84

Risk Management Plan
• Methodology
• Roles and responsibilities
• Budget and schedule
• Risk categories
• Risk probability and impact
• Risk documentation
85

Risk Can Be Positive
• project risk negative or positive effect on meeting
project objectives:
1. Positive risks are risks that result in good things
happening; sometimes called opportunities
2. The goal of project risk management is to minimize
potential negative risks while maximizing potential
positive risks.
86

• Risk is a combination of the probability of a negative
event and its consequences.
• If an event is inevitable but inconsequential, it does
not represent a risk, because it has no impact.
• Alternatively, an improbable event with significant
consequences may not be a high risk.
• Probable + consequential = loss, failure, danger, or
peril.
.

Types of project risk
1. Technical risk eg. Change of industry standard
2. Organization related risk – poor project management skill,
management incapability
3. Organization related risk – labor strike, budget cut
4. External risk – lawsuit, force majure

Activity
1. Assess the risk associated with this training.
2. What are the risk factors facing GERD?

Risk Utility
• Risk utility or risk tolerance is the amount of
satisfaction or pleasure received from a potential
payoff.
• Utility rises at a decreasing rate for people who are risk-
averse.
• Those who are risk-seeking have a higher tolerance for risk
and their satisfaction increases when more payoff is at
stake.
• The risk-neutral approach achieves a balance between risk
and payoff.
90

Figure 11-2. Risk Utility Function and
Risk Preference
91

Project Risk Management Processes
1. Risk identification: Determining which risks are likely
to affect a project and documenting the characteristics
of each.
2. Risk analysis: involves qualitative and quantitative risk
measurement.
3. Risk monitoring and control: involves risk response
planning and execution
92

Risk analysis
1. Qualitative risk analysis: Prioritizing risks based on
their probability and impact of occurrence
2. Quantitative risk analysis: Numerically estimating the
effects of risks on project objectives.
93

Qualitative Risk Analysis
• Assess the likelihood and impact of identified risks
to determine their magnitude and priority.
• Risk quantification tools and techniques include:
• Probability/impact matrixes
• The Top Ten Risk Item Tracking
• Expert judgment
94

Risk Identification
• Risk identification is the process of understanding what
potential events might hurt or enhance a particular
project.
• Qualitative Risk identification tools and techniques
include:
• Brainstorming
• The Delphi Technique
• Nominal Group Technique
• Interviewing
• SWOT analysis
• Cause and Effect Diagram
95

Brainstorming
• Brainstorming is a technique by which a group
attempts to generate ideas or find a solution for a
specific problem by amassing ideas spontaneously and
without judgment.
96

Delphi Technique
• The Delphi Technique is used to derive a consensus among a panel of
experts who make predictions about future developments.
• Provides independent and anonymous input regarding future events.
97

Interviewing
• Interviewing is a fact-finding technique for collecting information in
face-to-face, phone, e-mail, or instant-messaging discussions.
98

SWOT Analysis
• SWOT analysis (strengths, weaknesses,
opportunities, and threats) can also be
used during risk identification.
• Helps identify the broad negative and
positive risks that apply to a project.
99

Quantitative Risk Analysis
• Often follows qualitative risk analysis, but both can be done together.
• Large, complex projects involving leading edge technologies often
require extensive quantitative risk analysis.
• Main techniques include:
• Decision tree analysis
• Estimated monetary value
• Monte-carlo analysis
• Sensitivity analysis
100

Probability/Impact Matrix
• A probability/impact matrix or chart lists the relative
probability of a risk occurring on one side of a matrix or
axis on a chart and the relative impact of the risk
occurring on the other.
101

Example
Risk= probability x loss

Example
• If the product fails V&V, the team estimates it will need another
design iteration to fix the problem(s). The team also believes it would
take 2 weeks to execute the design changes and re-release the
documentation, 8 weeks to procure parts, and another 2 weeks to
assemble the product and repeat the testing.
Exposure Rating = 12 weeks * 25% probability = 4 weeks exposure

Sample Probability/Impact Matrix
104

Chart Showing High-, Medium-, and Low-Risk
Technologies
105

Decision Trees and Expected Monetary Value
(EMV)
• A decision tree is a diagramming analysis technique
used to help select the best course of action in
situations in which future outcomes are uncertain.
• Estimated monetary value (EMV) is the product of a
risk event probability and the risk event’s monetary
value.
106

Cause and Effect Diagram
107

Figure 11-6. Expected Monetary Value (EMV)
Example
108

Monte Carlo analysis
• To use a Monte Carlo simulation, you must have three
estimates (most likely, pessimistic, and optimistic) plus
an estimate of the likelihood of the estimate being
between the most likely and optimistic values.
109

Steps of a Monte Carlo Analysis
1. Assess the range for the variables being considered.
2. Determine the probability distribution of each
variable.
3. For each variable, select a random value based on
the probability distribution.
4. Run a deterministic analysis or one pass through the
model.
5. Repeat steps 3 and 4 many times to obtain the
probability distribution of the model’s results.
110

Figure 11-7. Sample Monte Carlo Simulation Results for
Project Schedule
111

Sensitivity Analysis
• Sensitivity analysis is a technique used to show the
effects of changing one or more variables on an
outcome.
• For example, many people use it to determine what the
monthly payments for a loan will be given different
interest rates or periods of the loan, or for determining
break-even points based on different assumptions.
• Spreadsheet software, such as Excel, is a common tool
for performing sensitivity analysis.
112

Figure 11-8. Sample Sensitivity Analysis for Determining
Break-Even Point
113

Risk monitoring and control
• After identifying and quantifying risks, you must decide
how to respond to them.
• Four main response strategies for negative risks:
1. Risk avoidance – changing or reducing project scope
Eg. Design alteration
change of consultant
114

2. Risk transference – shifting to the third party
Example
• Insurance
• Performance bond
• Waranty
3. Risk mitigation – involves reduction of the consequence of the risk
Eg. Prototype development

4. Acceptance – not changing project plan
Eg. Fallback plan/ contingency plan

Using Software to Assist in Project Risk
Management
• Risk registers can be created in a simple Word or Excel
file or as part of a database.
• More sophisticated risk management software, such as
Monte Carlo simulation tools, help in analyzing project
risks.
• The PMI Risk Specific Interest Group’s Web site at
www.risksig.com has a detailed list of software
products to assist in risk management.
117

Results of Good Project Risk Management
• Unlike crisis management, good project risk
management often goes unnoticed.
• Well-run projects appear to be almost effortless, but a
lot of work goes into running a project well.
• Project managers should strive to make their jobs look
easy to reflect the results of well-run projects.
118

Part 9
after learning topics in this part, you should be
able to:
  Understand the importance of good
communications in projects.
 Explain the elements of project
communications planning, including how to
create a communications management plan
and perform a stakeholder communications
analysis.
 Describe various methods for distributing
project information and the advantages and
disadvantages of each, discuss the importance
of addressing individual communication needs,
and calculate the number of communications
channels in a project
Project
Communication
Management

It’s not
WHAT
you say…
It’s
HOW
you say it.
9/30/2023 121

Other Communication Considerations
 Rarely does the receiver interpret a message exactly as
the sender intended.
 Geographic location and cultural background affect the
complexity of project communications.
 Different working hours
 Language barriers
 Different cultural norms
Information Technology Project Management, Fourth
123

Importance of Face-to-Face Communication
 Research says that in a face-to-face interaction:
58 percent of communication is
through body language.
through how the words are said.
through the content or words that
are spoken.
124

Communication Checklist
• How do you construct an effective presentation or report?
• Who is your audience?
• What are they interested in?
• What do you want them to remember?

It’s not what you said but what
they heard.

Communication medium in projects
• Reports
• Meetings
• Telephone conversation
• Email exchanges
• Face-to-face interactions
• presentations
• letters, memors, circulars etc

Copyright © Houghton Mifflin
Company. All rights reserved.
3 - 128
What is your communication Style?
• Two important dimensions of human behavior:
• Dominance
• Sociability
• Remember: the style model describes preferences, not skills or
abilities

3 - 129
The Dominance Continuum
• more cooperative • give advice freely
• eager to assist others • initiate demands
• less assertive • more assertive
• more willing to be controlled • seek control
Figure 3.1 Dominance Continuum

3 - 130
Figure 3.3
Sociability Continuum
Source: Gerald L Manning
and Barry Reece, Selling
Today: Creating Customer
Value, Ninth Edition,
Copyright © 2004. Adapted
by permission of Prentice-Hall
Inc., Upper Saddle River, NJ.
• expresses feelings
• open and talkative
• enjoys personal
associations
• controls feelings
• more reserved
and formal
in relationships

Project Communications
Management Processes
1. Communications planning: Determining the information and
communications needs of the stakeholders.
2. Information distribution: Making needed information
available to project stakeholders in a timely manner.
3. Performance reporting: Collecting and disseminating
performance information, including status reports, progress
measurement, and forecasting.
4. Managing stakeholders: Managing communications to satisfy
the needs and expectations of project stakeholders and to
resolve issues.
131

Performance Reporting
 Performance reporting keeps stakeholders informed
about how resources are being used to achieve project
objectives.
 Status reports describe where the project stands at a specific
point in time.
 Progress reports describe what the project team has
accomplished during a certain period of time.
 Forecasts predict future project status and progress based on
past information and trends.
132

• What are the different reports that are prepared in project

The Impact of the Number of People on Communications
Channels
134

Part 11
be able to:
Project
Procurement
Management

Project Procurement Management
• Project Procurement Management includes the processes necessary
to purchase or acquire products, services, or results needed from
outside the project team.
• The organization can be either the buyer or seller of the products,
services, or results of a project.

Plan Procurement Management : T&T
1. Make-or-buy Analysis
• The process of gathering and organizing data about product requirements and
analyzing them against available alternatives including the purchase or
internal manufacture of the product.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 12-2, Page 358

Plan Procurement Management—The process of documenting project procurement decisions,
specifying the approach, and identifying potential sellers.*
Conduct Procurements—The process of obtaining seller responses, selecting a seller, and awarding
a contract.
Control Procurements—The process of managing procurement relationships, monitoring contract
performance, and making changes and corrections as appropriate.
Close Procurements—The process of completing each project procurement

Organizational Process Assets
• The various types of contracts used by the organization will influence
this process. Some of the most popular contracts types are:
• Fixed- Price Contracts
• Cost-reimbursable Contracts
• Time and Material Contracts

Fixed Price Contract
1. Firm-Fixed-Price Contract (FFP)
• A type of fixed price contract where the buyer pays the seller a set amount (as
defined by the contract), regardless of the seller’s costs.*
2. Fixed Price Incentive Fee Contract (FPIF)
• A type of contract where the buyer pays the seller a set amount (as defined by
the contract), and the seller can earn an additional amount if the seller meets
defined performance criteria.*
3. Fixed-Price with Economic Price Adjustment Contracts
(FP-EPA)
• A fixed-price contract, but with a special provision allowing for predefined final
adjustments to the contract price due to changed conditions, such as inflation
changes, or cost increases (or decreases) for specific commodities.*

Cost-reimbursable Contract
1. Cost Plus Fixed Fee Contract (CPFF).
• A type of cost-reimbursable contract where the buyer reimburses the seller
for the seller’s allowable costs (allowable costs are defined by the contract)
plus a fixed amount of profit (fee).*
2. Cost Plus Incentive Fee Contract (CPIF).
• A type of cost-reimbursable contract where the buyer reimburses the seller
for the seller’s allowable costs (allowable costs are defined by the contract),
and the seller earns its profit if it meets defined performance criteria.*

Cost-reimbursable Contract
3. Cost Plus Award Fee Contracts (CPAF).
• A category of contract that involves payments to the seller for all legitimate
actual costs incurred for completed work, plus an award fee representing
seller profit.*

Conduct Procurements
1. Bidder
2. Proposal evaluation techniques
3. Independent estimates
4. Expert judgment
5. Advertising
6. Analytical techniques
7. Procurement negotiations

Control Procurements
3. Inspections and Audits
• A process to observe performance of contracted work or a promised product against
agreed-upon requirements.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure 12-6, Page 379.

5. Payment Systems
• The system used to provide and track supplier’s invoices and payments for services and
products.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure 12-6, Page 379.

• Control Procurements is the process of managing procurement
relationships, monitoring contract performance, and making changes
and corrections to contracts as appropriate. *

Close Procurements
• Administrative activities such as finalizing claims, updating final
results and archiving will take place in this process.
• This process needs to be performed even for early termination of
contracts.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 387.

Part 10
be able to:
 Understand the framework of project
integration management
 Understand how project changes are
procedurally administered
Project
integration
Management

Figure 3-2. Framework for Project Integration
Management
Course Technology 2001 153
Focus on pulling everything to-
gether to reach project success!

Project Integration Management Processes
• Project Plan Development: taking the results of other
planning processes and putting them into a
consistent, coherent document—the project plan
• Project Plan Execution: carrying out the project plan
• Integrated Change Control: coordinating changes
across the entire project

Figure 3-1. Project Integration Management
Overview
Note: The PMBOK Guide includes similar charts for each knowledge area.

Some Examples of Integration Processes
•Project work should be integrated with the ongoing
operations of the performing organization.
•Product and Project Scope must be integrated.
•Cost estimates must be integrated with the processes in
cost, time, and risk Knowledge Areas.
•Change requests should be integrated with initial
project deliverable projections.

Perform Integrated Change Control
Process of influencing the factors that circumvent integrated change control so that only approved
changes are implemented
• •Process to review, analyze, and approve change requests - timely response minimizes the
possibility of negative effect on time, cost, or the feasibility of a change
• •Involves managing the changes that are approved
• •Involves maintaining integrity of the performance measurement baselines
• •Involves documenting the entire impact created by the change request
• •Process to review, approve/reject recommended preventive, or corrective actions
• •Involves coordinating changes across the entire project (e.g., change in schedule will impact
cost, risk, quality, and staffing)
• Very important: Change Control in one Knowledge Area will impact other Knowledge
• Areas. So, the Project Manager should be able to relate changes across Knowledge Areas

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