Principles of Project Management

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					   Principles of Project Management


          How to help make your projects
                 more successful



Project Management - Project Bailout - www.ProjectBailout.com   1
Why Project Management?

   Learn from lessons, success, and mistakes of others
   Better understanding of financial, physical, and
    human resources
   Successful Project Management Contributes to
       Improved customer relations
       Shorter development times
       Lower costs
       Higher quality and increased reliability
       Improved productivity
   Project Management Generally Provides
       Better internal coordination
       Higher worker morale


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Why Projects Fail

Communications
       Misunderstandings
       Not Talking, Emailing etc.
Scope Creep
Poor planning
Weak business case
Lack of management direction &
  involvement
       Lack of Resources
       Talking and Not Building

Incomplete specifications
       Excessive Specifications
Mismanagement of expectations
       $



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Project Management Benefits for the
Individual


   Develops leaders in organization with
    a detailed understanding of multiple
    areas of the organization
   Cross departmental communication
    and networking
   Benefits not limited to just the Project
   Manager, Team members get same
    exposure
   Attention from executive
    management team
    Reputation of being a team player,
    problem solver, and a get things done
    person

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Organization
   Lectures
       Presentations
             Book Chapters
       And Discussions!
   Sample Projects
       Plan, Schedule and Allocate Resources
       Review
   Practice Tests
       Joint Attempt At Questions
       http://www.yancy.org/research/project_management.html


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Lectures
1 - Introduction to Project Management
2 - Project Management Context
2’- Project Management for Dummies - Summary
3 - Project Management Integration
4 - Project Scope Management
5 - Project Time Management
6 - Project Cost Management
7 - Project Quality Management
8 - Project Human Resource Management
9 - Project Communications Management
10 - Project Risk Management
11 - Project Procurement Management
12 - Project Management as a Profession


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Sources – Use the Web
   Project Management Institute: www.pmi.org
   Project World: www.projectworld.com
   Software Program Managers Network:
    www.spmn.com
   PM forum: www.allpm.com
   ESI International: www.esi-intl.com
   Project Bailout – www.ProjectBailout.com
   ―Project Management for Dummies‖
   ―Project Planning Scheduling & Control,‖ James P.
    Lewis
       A Hands-on Guide to Bringing Projects in on time and On
        Budget

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Why are you here?
   Who are you
        What is your background?
   Why
        What do you want to learn?
        How much effort?
   Me
        Jim Bullough-Latsch, jbl@ProjectBailout.com
        20 years managing projects, 818-993-3722
        All material will be provided on a CD!
   Sign In, Email Addresses etc.
        Exchange Business Cards

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Mapping Lectures and Lewis Book

1. Introduction to Project Management
      • Chapter 1 – Introduction to PM
2. Project Management Context
      • Chapter 5 – Headless Chicken
3. Project Management Integration
      • Chapter 6 – Project Strategy
      • Chapter 7 – Implementation Plan
4. Project Scope Management
      • Chapter 9 – Scheduling
5. Project Time Management
6. Project Cost Management
7. Project Quality Management
8. Project Human Resource Management
9. Project Communications Management
10. Project Risk Management
      • Chapter 8
11. Project Procurement Management
12. Project Management as a Profession
      • Chapter -
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   CHAPTER 1


                     Introduction to Project
                          Management

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PM is used in all industries, at all
levels




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Why Project Management?

   Better control of financial, physical, and human
    resources
       Accountability
       Learn from mistakes of others!
   Improved customer relations
   More Managed Outcomes
       Lower costs
       Higher quality and increased reliability
       Higher profit margins
       Improved productivity
       Better internal coordination
       Higher worker morale


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Why Projects Fail

   Poor communications
   Scope Creep
   Poor planning
   Weak business case
   Lack of management direction & involvement
   Incomplete specifications
   Mismanagement of expectations


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Project versus Program

What is a project?
 Temporary and unique
 Definite beginning and end
 Unique purpose
 Require resources, often from various areas involve uncertainty
    Note: temporary does not mean short in duration
What is a program?
 A group of projects managed in a coordinated way to obtain
  benefits not available to managing them individually
 Long Term for: a collection of projects

Same Techniques Work for Projects, Products, & Programs!
 Use them where they work!


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Triple Constraints Theory
Every project is constrained in
    different ways by its
   Scope goals: What is the
    project trying to accomplish?
   Time goals: How long should
    it take to complete?
   Cost goals: What should it
    cost?
It is the project manager’s duty
    to balance these three often
    competing goals


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Project Management Framework




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    Project Stakeholders


   Stakeholders are the people involved in or
    affected by project activities
   Stakeholders include
       the project sponsor and project team
       support staff
       customers
       users
       Suppliers and vendors
       opponents to the project
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PM Knowledge Areas

Knowledge areas describe the key competencies that
  project managers must develop
 core knowledge areas lead to specific project
  objectives (scope, time, cost, and quality)
 facilitating knowledge areas are the means through
  which the project objectives are achieved (human
  resources, communication, risk, and procurement
  management
 knowledge area (project integration management)
  affects and is affected by all of the other knowledge
  areas

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Relationship to other disciplines




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PM Tools & Techniques

   Project management tools and techniques
    assist project managers and their teams in
    various aspects of project management
       #1 communicating with people!!
   Some specific ones include
       Project Charter and Work Breakdown Structure
        (WBS) (scope)
       Gantt charts, network diagrams, critical path
        analysis, critical chain scheduling (time)
       Cost estimates and earned value management
        (cost)

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Sample GANTT Chart




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Sample Network Diagram




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Sample Earned Value Chart




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Points From Lewis Chapter 1
   A project is a one-time job, as opposed to a repetitive activity
        Disagree, can make repetitive into a series of projects
   Project management is facilitation of the planning, scheduling,
    and controlling of all activities that must be done to meet
    project objectives.
        ???????????
   Principle: Can assign values to only three of the PCTS
    constraints
        Performance, Cost, Time, Scope
        Disagree - There are relationship, but it is not magic
   Principle: To reduce both cost and time in a project, must
    change the process by which you do work.
        Maybe ―Understand‖ and control is better than change



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Lewis Principles Chapter 1
   Principle: Improving quality reduces costs.
        Partially Agree
        Controlling quality contributes to controlling cost
        Bugs / Errors Cost Money
        Formal QA Organizations can be negative
   Good Project Management includes tools, people, and systems
        Tools are not very important!
   The people who must do the work should develop the plan
        Disagree – The people who do the work should contribute to the
         plan, but some project management is needed to focus the effort.
   The Thought process can be applied to any project regardless o
    type or size
        Agree



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―Lewis Method‖ Five Phases
1.       Definition
2.       Planning Strategy
3.       Implementation Planning
4.       Execution and Control
5.       Lessons Learned
          I have only worked at one company that
           practiced this, TRW called it a debriefing or post
           mortem
          Usually everyone is gone prior to the
           completion!


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Projects for Homework
   Sample Project
   Plan, Schedule, and Presentation
        Develop a brief project plan and top-level schedule (MS Project is preferred).

   Effort at Each Session
        Discuss Concepts
        Assign Teams, Choose Subject, Divide work
              You can do home work to make it better
        Plan and Document
        Schedule
        Coordinate
              Keep it simple
        Present for Review
              Criticize Others
        Update
   Project Can Be Anything

   Suggested Projects - Defaults


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   CHAPTER 2


              Project Management Context




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Projects are not Isolated

   Projects must operate in a broad organizational
    environment
   Project managers need to take a holistic or systems
    view of a project and understand how it is situated
    within the larger organization
   Systems View to Project Management
       Systems philosophy: View things as systems, interacting
        components working within an environment to fulfill some
        purpose
       Systems analysis: problem-solving approach
       Systems management: Address business, technological, and
        organizational issues before making changes to systems

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Project Phases

   Projects are divided up into phases, collectively project phases
    are known as the project lifecycle
        The Phases often overlap!!!
   Project phases are marked by completion of one or more
    deliverables
        Deliverable is a tangible, verifiable work product
   Questions at the end of each phase (known as phase exits, kill
    points, or stage gates)
        Determine if the project should continue
        Detect and correct errors cost effectively
   Deliverables from the preceding phase are usually approved
    before work exceeds 20% of the next phase’s budget
        IE Overlapping work is done at cost risk to meet schedule
   FAST TRACKING: projects that have overlapping phases


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Project Lifecycle




   Most project lifecycles have common characteristics
        Phases: Concept, Development, Implementation, Support
        Cost and staffing levels are low to start and higher toward the end and drop
         rapidly as the project draws to conclusion
        Stakeholders have more influence in the early phases of the project
             Cost of changes and error correction often increases as the project continues
             Some changes can be deferred until after delivery



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Phases of the Project Life Cycle

            Phase   Concept            Development      Implementation        Close-Out



Deliverables
Planning            Management Plan    Project Plan     Work Package          Completed Work




Financial           Preliminary Cost   Budgetary Cost   Costs and Over Runs   Lessons Learned
                    Estimate           Estimate




Reporting /         3-level WBS        6+ level WBS     Performance Reports   Customer Acceptance
Decomposition




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Project Life Cycle

   Determination of Mission Need—ends with Concept Studies
    Approval
   Concept Exploration and Definition—ends with Concept
    Demonstration Approval
   Demonstration and Validation –ends with Development Approval
   Engineering and Manufacturing –ends with Production Approval
   Production and Deployment –overlaps with Operations and Support




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     Systems Development Life Cycles


•Waterfall model: has well-defined, linear stages of
systems development and support
•Spiral model: shows that software is developed using
an iterative or spiral approach rather than a linear
approach
•Incremental release model: provides for progressive
development of operational software
•RAD model: used to produce systems quickly without
sacrificing quality
•Prototyping model: used for developing prototypes to
clarify user requirements
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  Project

                                  The Waterfall Model of
Initiation
  Process

         Concept
       Exploration
         Process                  the Software Life Cycle
                   System
                 Allocation
                   Process

                         Requirements
                            Process


                                      Design
                                     Process


                                           Implementation
                                               Process

                                                     Verification
                                                     & Validation
                                                        Process

                                                               Installation
                                                                  Process

                                                                       Operation &
                                                                     Support Process
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         Spiral
Deter mine objec tives,                                                                                     Evaluate alternatives,
                      a
alternatives, & c onstr ints                                                                                                 e
                                                                                                            identif y & resolv risk s

                                                                                            Risk
                                                                                            a na ly sis
                                                                              Risk
                                                                              a na ly sis

                                                                Risk
                                                                a na ly sis
                                                                                P1
                                                                                                                 Prototype3
                                                                                               Prototype2
                                                                         Prototype1

                                Re quire me nts Conce pt of
                                          pla n ope ra tion        Software
                                                                                           Syste m
                                                                 Re quire me nts        Product              De tailed
                                                                                       De sign               De sign
                                De ve lopme nt Re quire me nts
                                         pla n valida tion
                                                                                     P2
                                                                                                          Code

                                   Inte gration De sign                                   Unit Te st
                                          pla n valida tion                                                                    er
                                                                                                                    Develop & v ify
Plan next phase                                                                                                           vel
                                                                                                                    next le produc t
                                                                Inte gration &Te st
                                               Ac ce pta nc e
                                                   Te st



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 Fast Tracking / Overlap of
 Processes




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Extreme Programming
- Focuses on customer driven
changes




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Organizational Structures


                                          TOP?




                                                                Bottom


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Critical Success Factors

   Critical Success Factors According to the Standish
    Group’s report CHAOS 2001: A Recipe for Success,
    the following items help IT projects succeed, in order
    of importance:
       Executive support
       User involvement
       Experience project manager
       Clear business objectives
       Minimized scope
       Standard software infrastructure
       Firm basic requirements
       Formal methodology
       Reliable estimates

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Headless Chicken (Lewis)
   Software Projects – 1990s
       17% Succeeded
       33% Failed
       50% Revised
   Headless Chick is about a bird dying
       Body keeps moving after head is cut off!



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More on The Lewis Method
   Projects often fail at the beginning, not at the
    end.
       Agree
   The false consensus effect is a failure to
    manage disagreement, because no knows it
    exists.
       Not that important ….
       I think this is also the blind leading the blind
   Process will always affect task performance.
       Agree


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Lewis …
   Write the Mission Statement
       Write something would be better
   The first objective for a project manager is to
    achieve a shared understanding of the team’s
    mission.
       Disagree, it is important, but $ and convincing
        yourself are more important
   The way a problem is defined determines
    how we attempt to solve it.
       ???
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Lewis and Strategy
   Strategy is an overall approach to a project.
       Game plan
   It is best not to employ cutting-edge
    technology in a project that has very tight
    deadline.
       It is usually best to use proven technology.
        (period!)
   It is best to separate discovery from
    development.
       Agree
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   Project Management For
   Dummies – Chapter 2’

         Project Management For Dummies
                 By Stanley E. Portny
                 ISBN: 0-7645-5283-X
                    Format: Paper
                   Pages: 384 Pages
                Pub. Date: October 2000




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PART I: Defining Your Project
and Developing Your Game Plan.
Chapter 1: What Is Project Management?
(And Do I Get Paid Extra to Do It?).
Chapter 2: Defining What You're Trying to
Accomplish — and Why.
Chapter 3: Getting from Here to There.
Chapter 4: You Want This Done When?
Chapter 5: Estimating Resource
Requirements.
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PART II: Organizing the
Troops.
Chapter 6: The Who and the How of
 Project Management.
Chapter 7: Involving the Right People in
 Your Project.
Chapter 8: Defining Team Members' Roles
 and Responsibilities.


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PART III: Steering the Ship.
Chapter 9: Starting Off on the Right Foot.
Chapter 10: Tracking Progress and
 Maintaining Control.
Chapter 11: Keeping Everyone Informed.
Chapter 12: Encouraging Peak
 Performance.
Chapter 13: Bringing Your Project to a
 Close.
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PART IV: Getting Better and
Better.
Chapter 14: Dealing with Risk and
 Uncertainty.
Chapter 15: Using the Experience You've
 Gained.
Chapter 16: With All the Great New
 Technology, What's Left for You to Do?


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PART V: The Part of Tens.
Chapter 17: Ten Questions to Help You
 Plan Your Project.
Chapter 18: Ten Ways to Hold People
 Accountable.
Chapter 19: Ten Steps to Getting Your
 Project Back on Track.
Chapter 20: Ten Tips for Being a Better
 Project Manager.

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Chapter 17: Ten Questions to
Help You Plan Your Project.
Why is your project being Done?
Who will you need to Involve?
What results will you Produce
What Constraints Must you Satisfy?
What assumptions are you Making
What work must be done?
When will you start and end each activity?
Who’ll perform the project Work?
What other Resources will you need?
What could go wrong?
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   Chapter 18: Ten Ways to Hold
   People Accountable.
Involve People who really have authority
Be Specific
Get a Commitment
Put it in writing.
Emphasize the Urgency and Importance of the assignment
Tell others about the person’s commitment
Agree on a plan for monitoring the person’s work.
Monitor the persons work.
Always Acknowledge Good Performance
Act as if you have the authority

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Chapter 19: Ten Steps to Getting
Your Project Back on Track.
Determine why project got off track
Reaffirm key drivers
Reaffirm Project Objectives
Reaffirm activities remaining to be done.
Reaffirm Roles and Responsibilities
Develop a viable schedule
Reaffirm Personnel assignments
Develop a Risk-Management Plan
Hold a midcourse Kick-off Session
Closely Monitor Performance
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Chapter 20: Ten Tips for Being a
Better Project Manager
Be a ―why‖ person
Be a ―Can Do‖ person
Don’t Assume
Say what you mean; Mean what you say
View people as allies, not adversaries
Respect other people
Think ―big Picture‖
Think Detail
Acknowledge good performance
Be both a manager and a leader
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Rest
   Appendix A: Glossary
   Appendix B: Earned Value Analysis.
   Index.




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   CHAPTER 3


          Project Management Integration




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Project Integration Management




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Planning and Control
   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
       Influence the factors that create changes to ensure they are
        beneficial
       Determine that a change has occurred
       Manage actual changes when and as they occur




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Project Plan Development

   A project plan is a document used to
    coordinate all project planning documents
   Its main purpose is to guide project execution
         Also helps the Project Management to Express their vision

   Project plans assist the project manager in
    leading the project team and assessing
    project status
   Project performance should be measured
    against a baseline project plan

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What is a Project Plan?

   Common misunderstanding: Project Schedule
   Introduction or overview of the project
   Description of how the project is organized
   Management and technical processes used on
    the project
   Work to be done, schedule, and budget
    information


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Chapter 17: Ten Questions to
Help You Plan Your Project.
Why is your project being Done?
Who will you need to Involve?
What results will you Produce
What Constraints Must you Satisfy?
What assumptions are you Making
What work must be done?
When will you start and end each activity?
Who’ll perform the project Work?
What other Resources will you need?
What could go wrong? (Project Management for Dummies)
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   Sample Project Plan – Security
   Audits
1. Information Security - Introduction
    Why an Information Security Audit?
    Referenced Documents and Web Sites
    Customer Support to Audit
    Audit Results
2. Tasks and Sub Tasks
    Preparation
    Technical Review
    End User Sample
    Discussion with Responsible Management
    Final report (Hardcopy, Executive Briefing, 2 CDs, Destroy Working Notes)
3. Project Controls
    Confidentiality
    Need-to-know
    Certification
    Secure Storage of Results
    Progress reporting
    Security
    Project
    Quality Management - Project Bailout - www.ProjectBailout.com
             Assurance                                                          62
More on Project Plan
   First Page needs to Sell the Project!
   Plan addresses what, how, which
    organizations, order of magnitude;
       but generally does not whom, when, and
        exact $




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Stakeholder Analysis

   A stakeholder analysis documents important
    (often sensitive) information about
    stakeholders such as
       stakeholders’ names and organizations
       roles on the project
       unique facts about stakeholders
       level of influence and interest in the project
       suggestions for managing relationships
       Budget and Other Money!

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Project Plan Execution

   Project plan execution involves managing performing
    the work described in the project plan
   Work Authorization System: a method ensuring
    that qualified people do work at right time and in the
    proper sequence
       Common in Aerospace
   Status Review Meetings: regularly scheduled
    meetings used to exchange project information
   Project Management Software: special software
    to assist in managing projects


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         Integrated Change Control

Integrated change control
involves identifying, evaluating,
and managing changes throughout
the project life cycle
Three main objectives of change
control:
– Influence the factors that create
changes to ensure they are
beneficial
– Determine that a change has
occurred
– Manage actual changes when
and as they occur



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Establish Change Control System

   A formal, documented process that describes when
    and how official project documents and work may be
    changed
   Describes who is authorized to make changes and
    how to make them
   Often includes a change control board (CCB),
    configuration management, and a process for
    communicating changes
       A formal group of people responsible for approving or
        rejecting changes on a project
       Provides guidelines for preparing change requests, evaluates
        them, and manages the implementation of approved
        changes
       Includes stakeholders from the entire organization
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Lewis – Developing an
Implementation Plan
   The more important a project deadline, the
    more important the plan becomes.
       ―Planning‖ versus Plan versus Work
   Never plan in more detail than control.
       Agree
   To ignore probable risk is not a ―can-do‖
    attitude but a fool hardy approach to project
    management.
       Yes/No – Need to present positive face to extent
        feasible
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More Lewis Points Chapter 7
   You don’t worry about the sequence of tasks
    while constructing the WBS.
       Agree
   A work breakdown structure does not show
    the sequence in which work is performed!
   A WBS is a list activities.
   Parkinson’s Law: Work will expand to take the
    time allowed

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   CHAPTER 4


               Project Scope Management




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What is Scope Management?

   Scope refers to all the work involved in
    creating the products of the project and
    processes used to create them
   Project scope management includes the
    processes involved in defining and controlling
    what is or is not included in the project
   The project team and stakeholders must have
    the same understanding of what products be
    produces as a result of a project and what
    processes will be used in producing them
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Defining Scope – The Process

   Initiation: beginning a project or continuing to the
    next phase
   Scope planning: developing documents to provide the
    basis for future project decisions
   Scope definition: subdividing the major project
    deliverables into smaller, more manageable
    components
   Scope verification: formalizing acceptance of the
    project scope
   Scope change control: controlling changes to project
    scope

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Project & Organization Alignment




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Project & Organization
Alignment - 2
                                                  Stages / Results
                                                       Ties technology
            Strategy
                                                        strategy to mission
           Business                                     and vision
             Area
           Analysis                                    Key Business
                                                        Processes
      Project Planning
                                                       Scope, Benefits,
                                                        constraints
    Resource Allocation
                                                       Allocates People and
                                                        $
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Project Financial Analysis

 Financial considerations are often an
  important consideration in selecting projects
 Three primary methods for determining the

projected financial value of projects:
       Net present value (NPV) analysis
       Return on investment (ROI)
       Payback analysis



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Net Present Value (NPV)

   Net present value (NPV) analysis is a method
    of calculating the expected net monetary gain
    or loss from a project by discounting all
    expected future cash inflows and outflows to
    the present point in time
   Projects with a positive NPV should be
    considered if financial value is a key criterion
   The higher the NPV, the better

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NPV Sample




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Return on Investment

   Return on investment (ROI) is income divided
    by investment ROI = (total discounted
    benefits - total discounted costs) / discounted
    costs
       The higher the realized ROI, the better
       Too Often, it is hyped
   Many organizations have a required rate of
    return or minimum acceptable rate of return
    on investment for projects
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Sample: NPV, ROI, & Payback




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Payback Analysis

   The payback period is the amount of time it
    will take to recoup, in the form of net cash
    inflows, the net dollars invested in a project
   Payback occurs when the cumulative
    discounted benefits and costs are greater
    than zero
   Many organizations want projects to have a
    fairly short payback period

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Project Selection Tool: Weighted Scoring




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Project Charter

   After deciding what project to work on, it is important
    to formalize projects
   A project charter is a document that formally
    recognizes the existence of a project and provides
    direction on the project’s objectives and management
   Key project stakeholders should sign a project
    charter to acknowledge agreement on the need and
    intent of the project
   Defines project’s purpose, products, scope,
    objectives, constraints, assumptions, risks,
    organization, reporting structure, priority and
    completion criteria

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      Sample Project Charter
Project Title: Information Technology (IT) Upgrade Project
Project Start Date: March 4, 200 Projected Finish Date: December 4, 2002
Project Manager: Kim Nguyen, 691-2784, knguyen@abc.com
Project Objectives: Upgrade hardware and software for all employees (approximately
2,000) within 9 months based on new corporate standards. See attached sheet describing the
new standards. Upgrades may affect servers and midrange computers as well as network
hardware and software. Budgeted $1,000,000 for hardware and software costs and $500,000
for labor costs.
Approach:
• Update the IT inventory database to determine upgrade needs
• Develop detailed cost estimate for project and report to CIO
• Issue a request for quotes to obtain hardware and software
• Use internal staff as much as possible to do the planning, analysis, and installation




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        More
Name Role Responsibility
Walter Schmidt, CEO Project Sponsor Monitor project
Mike Zwack CIO Monitor project, provide staff
Kim Nguyen Project Manager Plan and execute project
Jeff Johnson Director of IT Operations Mentor
Nancy Reynolds VP, Human Resources Provide staff, issue memo
to all employees about project
Steve McCann Director of Purchasing Assist in purchasing hardware and software
Sign-off: (Signatures of all above stakeholders)
Comments: (Handwritten comments from above stakeholders, if applicable)
This project must be done within ten months at the absolute latest. Mike Zwack, CIO
We are assuming that adequate staff will be available and committed to supporting this
project. Some work must be done after hours to avoid work disruptions, and overtime
will be provided. Jeff Johnson and Kim Nguyen, Information Technology Department




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Scope Statement & Planning

A scope statement is a document used to develop and
  confirm a common understanding of the project.
 a project justification

 a brief description of the project’s products

 a summary of all project deliverables
 a statement of what determines project success

 helps improve the accuracy of time, cost, and
  resource estimates
 defines a baseline for performance measurement and
  project control
 aids in communicating clear work responsibilities



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Work Breakdown Structure (WBS)


   After completing scope planning, the next
    step is to further define the work by breaking
    it into manageable pieces
   A work breakdown structure (WBS) is an
    outcome-oriented analysis of the work
    involved in a project that defines the total
    scope of the project
   It is a foundation document in project
    management because it provides the basis
    for planning and managing project schedules,
    costs, and changes
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Approaches to developing WBS

1. A unit of work should appear at only one place in the WBS.
2. The work content of a WBS item is the sum of the WBS items below it.
3. A WBS item is the responsibility of only one individual, even though
    many people may be working on it.
4. The WBS must be consistent with the way in which work is actually
    going to be performed; it should serve the project team first and other
    purposes only if practical.
5. Project team members should be involved in developing the WBS to
    ensure consistency and buy-in.
6. Each WBS item must be documented to ensure accurate understanding
    of the scope of work included and not included in that item.
7. The WBS must be a flexible tool to accommodate inevitable changes
    while properly maintaining control of the work content in the project
    according to the scope statement.
*Cleland, David I. Project Management: Strategic Design and
    Implementation, 1994

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Sample WBS: by product




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Sample WBS: by phase




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   Sample WBS: tabular form

1.0 Concept
1.1 Evaluate current systems
1.2 Define Requirements
1.2.1 Define user requirements
1.2.2 Define content requirements
1.2.3 Define system requirements
1.2.4 Define server owner requirements
1.3 Define specific functionality
1.4 Define risks and risk management approach
1.5 Develop project plan
1.6 Brief web development team
2.0 Web Site Design
3.0 Web Site Development
4.0 Roll Out
5.0 Support

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WBS and GANTT in Project 2000




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   CHAPTER 5


                 Project Time Management




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Developing a project schedule

   Project schedules grow out of the WBS
   Activity definition
       developing a more detailed WBS to complete all the work to
        be done
   Activity sequencing
       Involves reviewing activities and determining dependencies
             Mandatory dependencies: inherent in the nature of the work;
              hard logic
             Discretionary dependencies: defined by the project team; soft
              logic
             External dependencies: involve relationships between project
              and non-project activities
       You must determine dependencies in order to use critical
        path analysis

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Project Network Diagrams

   Project network diagram is one technique to
    show activity sequencing, relationships
    among activities, including dependencies.
       Sample Activity-on-Arrow (AOA) Network Diagram
        Also called activity-on-arrow




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Project Network Diagram
                                         d      d
                                       Un erstan System                        Collect E xisting                        New F r es
                                                                                                                             eatu                                Feature List
              S tart
                                       St art: 11 /17/ 03     ID: 2            St art: 11 /17/ 03     ID: 3             St art: 11 /19/ 03     ID: 4             St art: 11 /21/ 03     ID: 5

    i
   M lesto ne Dat e: F ri 1 1/1 4/03   Fi nish : 11 /21 /03   Du r: 5 da ys?   Fi nish : 11 /18 /03   Du r: 2 da ys     Fi nish : 11 /20 /03   Du r: 2 da ys     Fi nish : 11 /21 /03   Du r: 1 da y?

               ID: 1                   Co mp : 0%                              Re s:                                    Re s:                                    Re s:




                                                                               Softwar e Requirements                   Baseline                                 New
                                                                               St art: 11 /24/ 03     ID: 6             St art: 11 /24/ 03     ID: 7             St art: 12 /2/0 3      ID: 8

                                                                               Fi nish : 1/ 5/04      Du r: 3 1 d ays   Fi nish : 12 /1/0 3    Du r: 6 da ys     Fi nish : 12 /24 /03   Du r: 1 7 d ays

                                                                               Co mp : 0%                               Re s:                                    Re s:




                                                                                 g
                                                                               Bu s & Problem                                o
                                                                                                                        Web T ol                                 Add
                                                                               St art: 11 /24/ 03     ID: 1 1           St art: 11 /24/ 03     ID: 1 2           St art: 11 /26/ 03     ID: 1 3

                                                                               Fi nish : 12 /30 /03   Du r: 2 7 d ays   Fi nish : 11 /25 /03   Du r: 2 da ys     Fi nish : 11 /28 /03   Du r: 3 da ys

                                                                               Co mp : 0%                               Re s:                                    Re s:




                                                                                                                        St art: 11 /25/ 03     ID: 1 4
                                                                                                                        Fi nish : 12 /30 /03   Du r: 2 6 d ays

                                                                                                                        Co mp : 0%




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Precedence Diagramming Method (PDM)


   Activities are represented by boxes
   Arrows show relationships between activities
   Used by most PM software




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Sample PDM




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Activity Duration Estimating

   After defining activities and determining their sequence, the
    next step in time management is duration estimating
   Duration includes the actual amount of time worked on an
    activity plus elapsed time
   People doing the work should help create estimates, and an
    expert should review them
   Estimates should be—
        Based on a set of assumptions and collected data
        Based on the current approved scope and project specifications
        Changed when the scope of the project changes significantly
        Changed when there are authorized changes in resources,
         materials, services, and so forth
   Budgets are only estimates



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Schedule Development

   Schedule development uses results of
    the other time management processes
    to determine the start and end date of
    the project and its activities
   Ultimate goal is to create a realistic
    project schedule that provides a basis
    for monitoring project progress for the
    time dimension of the project
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GANTT Charts

   Gantt charts provide a standard format for
    displaying project schedule information by
    listing project activities and their
    corresponding start and finish dates in a
    calendar format
   Symbols include:
       A black diamond: milestones or significant events
        on a project with zero duration
       Thick black bars: summary tasks
       Lighter horizontal bars: tasks
       Arrows: dependencies between tasks

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 Tracking using GANTT charts




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Tracking versus Planning
   Real world is never the same as the
    clean paper
   Too detailed and miss the bigger
    picture
   Too high level and are late to respond
    to problems
   People do not always tell the truth!

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Critical Path Method

   CPM is a project network analysis technique used to
    predict total project duration
   A critical path for a project is the series of activities
    that determines the earliest time by which the project
    can be completed
   The critical path is the longest path through the
    network diagram and has the least amount of slack
    or float
   Finding the Critical Path
       First develop a good project network diagram
       Add the durations for all activities on each path through the
        project network diagram
       The longest path is the critical path

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Program Evaluation and Review
Technique PERT

   PERT is a network analysis technique used to
    estimate project duration when there is a high
    degree of uncertainty about the individual activity
    duration estimates
   PERT uses probabilistic time estimates based on
    using optimistic, most likely, and pessimistic
    estimates of activity durations
   PERT weighted average formula:
       (optimistic time + 4X most likely time + pessimistic time)/W
       (8 workdays + 4 X 10 workdays + 24 workdays)/6 = 12
        days


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   CHAPTER 6


                 Project Cost Management



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Project Cost Management

   Costs are usually measured in monetary units like
    dollars
   Project cost management includes the processes
    required to ensure that the project is completed
    within an approved budget
       Resource planning: determining what resources and
        quantities of them should be used
       Cost estimating: developing an estimate of the costs and
        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


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Basic Principles of Cost
Management
   Profits are revenues minus expenses
   Life cycle costing is estimating the cost of a
    project over its entire life
   Cash flow analysis is determining the
    estimated annual costs and benefits for a
    project
   Benefits and costs can be tangible or
    intangible, direct or indirect
   Sunk cost should not be a criteria in project
    selection

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Resource Planning

The nature of the project and the organization will
  affect resource planning. Some questions to consider:
 How difficult will it be to do specific tasks on the
  project?
 Is there anything unique in this project’s scope
  statement that will affect resources?
 What is the organization’s history in doing similar
  tasks?
 Does the organization have or can they acquire the
  people, equipment, and materials that are capable
  and available for performing the work?

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Cost Estimating

   An important output of project cost management is a
    cost estimate
   It is also important to develop a cost management
    plan that describes how cost variances will be
    managed on the project
   3 basic tools and techniques for cost estimates:
       analogous or top-down: use the actual cost of a previous,
        similar project as the basis the new estimate
       bottom-up: estimate individual work items and sum them to
        get a total estimate
       parametric: use project characteristics in a mathematical
        model to estimate costs

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Type of Estimate

   WAG (Wild Ass Guess)
   Rough Order of Magnitude (ROM)
   Budgetary
   Definitive




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Earned Value Management Terms

   The planned value (PV), formerly called the
    budgeted cost of work scheduled (BCWS), 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), formerly called actual cost of
    work performed (ACWP), is the total of direct and
    indirect costs incurred in accomplishing work on an
    activity during a given period
   The earned value (EV), formerly called the
    budgeted cost of work performed (BCWP), is the
    percentage of work actually completed multiplied by
    the planned value

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Earned Value Calculations 1 wk




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Formulas




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    Earned Value Formulas




To estimate what it will cost to complete a project or
how long it will take based on performance to date,
divide the budgeted cost or time by the appropriate
index.




     Project Management - Project Bailout - www.ProjectBailout.com   114
   CHAPTER 7


              Project Quality Management




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What is quality management?

   The International Organization for
    Standardization (ISO) defines quality as the
    totality of characteristics of an entity that
    bear on its ability to satisfy stated or implied
    needs
   Other experts define quality based on
       conformance to requirements: meeting written
        specifications
             Has the problem that specifications are not 100%
              complete or correct
       fitness for use: ensuring a product can be used as
        it was intended

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Quality Management Processes

   Quality planning: identifying which quality standards are
    relevant to the project and how to satisfy them
   Quality assurance: evaluating overall project performance to
    ensure the project will satisfy the relevant quality standards
   Quality control: monitoring specific project results to ensure that
    they comply with the relevant quality standards while identifying
    ways to improve overall quality
   Modern quality management
        SIX SIGMA
        requires customer satisfaction
        prefers prevention to inspection
        recognizes management responsibility for quality
   Noteworthy quality experts include Deming, Juran, Crosby,
    Ishikawa, Taguchi, and Feigenbaum


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Sample Fishbone or Ishikawa Diagram




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Pareto Analysis

   Pareto analysis involves
    identifying the vital few
    contributors that account for
    the most quality problems in
    a system
   Also called the 80-20 rule,
    meaning that 80% of
    problems are often due to
    20% of the causes
   Pareto diagrams are
    histograms that help identify
    and prioritize problem areas



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Standard Deviation

   Standard deviation measures how much variation exists in a
    distribution of data
   A small standard deviation means that data cluster closely
    around the middle of a distribution and there is little variability
    among the data
   A normal distribution is a bell-shaped curve that is symmetrical
    about the mean or average value of a population




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QCC, Six Sigma, Rule of 7

   A control chart is a graphic display of data that
    illustrates the results of a process over time. It helps
    prevent defects and allows you to determine whether
    a process is in control or out of control
   Operating at a higher sigma value, like 6 sigma,
    means the product tolerance or control limits have
    less variability
   The seven run rule states that if seven data points in
    a row are all below the mean, above, the mean, or
    increasing or decreasing, then the process needs to
    be examined for non-random problems

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Sample Quality Control Chart




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Reducing Defects with Six Sigma




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Cost of Quality

   The cost of quality is
       the cost of conformance or delivering products
        requirements and fitness for use
       the cost of nonconformance or taking
        responsibility failures or not meeting quality
        expectations
   Business Cost per Hour Downtime
             Automated teller machines (medium-sized bank)
             Package shipping service
             Telephone ticket sales
             Catalog sales center
             Airline reservation center (small airline)

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Five Cost Categories Related to Quality


   Prevention cost: the cost of planning and executing a project
    so it is error-free or within an acceptable error range
   Appraisal cost: the cost of evaluating processes and outputs
    to ensure quality
   Internal failure cost: cost incurred to correct an identified
    defect before the customer receives the product
   External failure cost: cost that relates to all errors not
    detected and corrected before delivery to the customer
   Measurement and test equipment costs: capital cost
    equipment used to perform prevention and appraisal activities




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Quality, Security, etc
   Quality Assurance can often be another
    tool for uncovering cost, schedule, and
    other project problems.
       When QA says they can not evaluate
        because there is not enough detail, it is a
        red flag!




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   CHAPTER 8

                  Project Human Resource
                        Management



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Start With Good People
   #1 Get Good People Assigned to your
    project
       Know who the good people are!
   #2 You usually get less than your pay
    for.
       Cheap people may cost a lot!
       Expensive consultants usually do not build
        things
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Projects and HR?

   Project human resource management includes the processes
    required to make the most effective use of the people involved
    with a project. Processes include
        Organizational planning
        Staff acquisition
        Team development
   Keys to managing people
        Psychologists and management theorists have devoted much
         research and thought to the field of managing people at work
        Important areas related to project management include
             motivation
             influence and power
             effectiveness




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Maslow’s Hierarchy of Needs




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McGregor’s Theory X and Y

   Douglas McGregor popularized the human relations
    approach to management in the 1960s
   Theory X: assumes workers dislike and avoid work,
    so managers must use coercion, threats and various
    control schemes to get workers to meet objectives
   Theory Y: assumes individuals consider work as
    natural as play or rest and enjoy the satisfaction of
    esteem and self-actualization needs
   Theory Z: introduced in 1981 by William Ouchi and is
    based on the Japanese approach to motivating
    workers, emphasizing trust, quality, collective
    decision making, and cultural values

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Thamhain and Wilemon’s Influence on
Projects

1.   Authority: the legitimate hierarchical right to issue orders
2.   Assignment: the project manager's perceived ability to influence
     a worker's later work assignments
3.   Budget: the project manager's perceived ability to authorize
     others' use of discretionary funds
4.   Promotion: the ability to improve a worker's position
5.   Money: the ability to increase a worker's pay and benefits
6.   Penalty: the project manager's ability to cause punishment
7.   Work challenge: the ability to assign work that capitalizes on a
     worker's enjoyment of doing a particular task
8.   Expertise: the project manager's perceived special knowledge
     that others deem important
9.   Friendship: the ability to establish friendly personal relationships
     between the project manager and others

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Power

   Power is the potential ability to influence
    behavior to get people to do things they
    would not otherwise do
   Types of power include
       Coercive
       Legitimate
       Expert
       Reward
       Referent

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Improving Effectiveness - Covey’s 7
Habits


   Project managers can apply Covey’s 7 habits
    to improve effectiveness on projects
       Be proactive
       Begin with the end in mind
       Put first things first
       Think win/win
       Seek first to understand, then to be understood
       Synergies
       Sharpen the saw

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Empathic Listening and Rapport

   Good project managers are empathic
    listeners; they listen with the intent to
    understand
   Before you can communicate with others, you
    have to have rapport
   Mirroring is a technique to help establish
    rapport
   IT professionals often need to develop
    empathic listening and other people skills to
    improve relationships with users and other
    stakeholders
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Organizational Planning

   Organizational planning involves identifying, documenting, and
    assigning project roles, responsibilities, and reporting relationships
   Outputs and processes include
        project organizational charts
        work definition and assignment process
        responsibility assignment matrixes
        resource histograms




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Sample Responsibility Assignment Matrix
(RAM)




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Staff Acquisition

   Staffing plans and good hiring procedures are
    important in staff acquisition, as are incentives for
    recruiting and retention
   Some companies give their employees one dollar for
    every hour a new person they helped hire works
   Some organizations allow people to work from home
    as an incentive
   Research shows that people leave their jobs because
    they don’t make a difference, don’t get proper
    recognition, aren’t learning anything new, don’t like
    their coworkers, and want to earn more money

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Resource Loading

   Resource loading refers to the amount of individual resources
    an existing project schedule requires during specific time
    periods
   Resource histograms show resource loading
   Over-allocation means more resources than are available are
    assigned to perform work at a given time




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Resource Leveling

   Resource leveling is a technique for resolving
    resource conflicts by delaying tasks
   The main purpose of resource leveling is to create a
    smoother distribution of resource usage and reduce
    over allocation




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Team Development: MBTI

   Meyers-Briggs Type Indicator (MBTI) is
    a popular tool for determining
    personality preferences and helping
    teammates understand each other
       Four dimensions include:
             Extrovert/Introvert (E/I)
             Sensation/Intuition (S/N)
             Thinking/Feeling (T/F)
             Judgment/Perception (J/P)

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Social Styles Profiles

   People are perceived as behaving primarily in
    one of four zones, based on their
    assertiveness and responsiveness:
       Drive
       Expressive
       Analytical
       Amiable
   People on opposite corners (drive and
    amiable, analytical and expressive) may have
    difficulties getting along
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Reward and Recognition Systems


   Team-based reward and recognition
    systems can promote teamwork
   Focus on rewarding teams for achieving
    specific goals
   Allow time for team members to mentor
    and help each other to meet project
    goals and develop human resources

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Organizational Systems


   Project based: Operations consist primarily of projects. Two
    categories:
        Organizations that derive their revenue primarily from performing
         projects for others (architectural firms, engineering firms,
         consultants, construction contractors, government contractors,
         etc.)
        Organizations that have adopted management by projects
             Have management systems such as accounting, financial, reporting and
              tracking in place to facilitate project management
   Non-project based:
        Absence of project-oriented systems generally makes project
         management more difficult.
        Examples include: manufacturing companies, financial service
         firms, etc.


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Organizational Cultures and Style


   Culture is reflected in shared values, beliefs, norms,
    expectations, policies, procedures, view of authority
    relationships, etc.
   Organizational cultures often have a direct influence
    on the project.
       A team proposing an unusual or high-risk approach is more
        likely to secure approval in an aggressive or entrepreneurial
        organization.
       A project manager with a highly participative style may
        encounter problems in a rigidly hierarchical organization
        while a project manager with an authoritarian style may be
        equally challenged in a participative organization.
   Project managers need to be aware of the
    organization's cultures and style.
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         Organizational Structure types:


   Functional:
        A hierarchy where each employee has one clear superior.
        Staff are grouped by specialty, such as production, marketing, engineering, and accounting.
        Project work is done independently within each department.
   Project Expeditor (PE):
        The project expeditor acts as a staff assistant to the executive who has ultimate responsibility for the project.
        The workers remain in their functional organizations and provide assistance as needed.
        The PE has little formal authority. The PE's primary responsibility is to communicate information between the
         executive and the workers.
        Most useful in the traditional functional organization where the project's worth and costs are relatively low.
   Project Coordinator (PC):
        Project expeditor is moved out of facilitator position into a staff position reporting to a much higher level in the
         hierarchy.
        The project coordinator has more authority and responsibility than a PE.
        The PC has the authority to assign work to individuals within the functional organization.
        The functional manager is forced to share resources and authority with the PC.
        The size of projects in terms of dollars is relatively small compared to the rest of the organization.




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           Matrix:

   Maintains the functional (vertical) lines of authority while establishing a
    relatively permanent horizontal structure to interact with all functional
    units supporting the projects.
   One result of the matrix is that workers frequently find themselves caught
    between the project manager and their functional manager.
   Advantages: Improved PM control over resources, rapid response to
    contingencies, improved coordination effort across functional lines, people
    have a "home" after the project is over, etc. (See Principles of PM, pg. 18)
   Disadvantages: Not cost effective due to excess administrative personnel,
    workers report to multiple bosses, more complex structure to monitor and
    control, higher potential for conflicts due to differing priorities, power
    struggles, and competition for resources, etc. (See Principles of PM, pg.
    19)
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Matrix Staffing!
Functions Project A           Project B       Project C         Project K   Project Z

QA            2               5               1                 1/2         ½

Software      2                               1                 ½           ½

3             2               5½              1½                2 1/2

4             2               5               1                 6

5                             ½               1                 5


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Matrix Types
   Weak matrix: Maintains many of the characteristics
    of a functional organization. The project manager's
    role is more like that of a project coordinator or
    project expeditor.
   Balanced matrix: In-between weak and strong.
    The project manager has more authority than in a
    weak matrix. The PM is more likely to be full-time
    than part-time as in a weak matrix.
   Strong matrix: Similar in characteristics to a
    projectized organization. There is likely to be a
    department of project managers which are full-time.



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Projectized:
     Team members are often collocated.
     Most of the organization's resources

      are involved in project work.
     Project managers have a great deal

      of independence and authority.
     Departments either report directly to

      the project manager or provide
      services to the various projects.
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Project Manager Roles and
Responsibilities
   Integrator
        PM is the most likely person who can view both the project and the way it fits into the overall plan
         for the organization.
        Must coordinate the efforts of all the units of the project team.
   Communicator
        Communicates to upper management, the project team, and other stakeholders.
                The PM who fails to decipher and pass on appropriate information to the appropriate people can become a
                 bottleneck in the project.
                The PM has the responsibility of knowing what kind of messages to send, who to send them to, and translating
                 the messages into a language understood by all recipients.
   Team Leader
        Must be able to solve problems
        Guide people from different functional areas
                Coordinate the project to show leadership capabilities
   Decision Maker
        Makes key decisions such as allocation of resources, costs of performance and schedule tradeoffs,
         changing the scope, direction or characteristics of the project.
        This is an important role with significant consequences for the project as a whole.
   Climate Creator or Builder
        The PM should attempt to build a supportive atmosphere so that project team members work
         together and not against one another.
        Seek to avoid unrest and negative forms of conflict by building supportive atmosphere early.




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General Advice on Teams

   Focus on meeting project objectives and producing
    positive results
       Make sure everyone understands the goals
   Fix the problem instead of blaming people
   Establish regular, effective meetings
   Use PM tools and reports to help focus
       Remember the product is important, not the paper
   Nurture team members and encourage them to help
    each other
   Acknowledge individual and group accomplishments
       Free Lunch etc.
   Establish accountability

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Project Meals
   Can be very effective method for team
    building
       Lunches where management pays
       Friday at 4:00 for Beer and Pizza
       Bagels with Lox’s
   Can be a hassle and negative
       Christmas Dinners
       Upper Management plus/minus
   Tailored to Team / Location
       Pot Luck , Hotdogs/Sandwiches at the Park,
        Expensive Lunch
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More Advice
   Project managers should
       Treat people with consideration and respect
       Understand what motivates them
       Communicate carefully with them
             Never confuse people
   Goal is to enable project team members to
    deliver their best work
       Motivation and morale helps meet schedules
   Use Accountability to your benefit
       SOMETIMES FIRING A TURKEY HELPS


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   CHAPTER 9


                   Project Communications
                        Management



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Communications Planning

   Communications planning: determining the information and
    communications needs of the stakeholders
   Information distribution: making needed information
    available in a timely manner
   Performance reporting: collecting and disseminating
    performance information
   Administrative closure: generating, gathering, and
    disseminating information to formalize phase or project
    completion
   Every project should include some type of communications
    management plan, a document that guides project
    communications
   Creating a stakeholder analysis for project communications also
    aids in communications planning


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Communications Management Concept


   A description of a collection and filing structure for
    gathering and storing various types of information
   A distribution structure describing what information
    goes to whom, when, and how
   A format for communicating key project information
   A project schedule for producing the information
   Access methods for obtaining the information
   A method for updating the communications
    management plans as the project progresses and
    develops
   A stakeholder communications analysis


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Communication Interception

       Lack of Clear Communications Channels
       Physical or temporal (time) distance between the
        communicator and receiver
       Difficulties with Technical Language
       Distracting Environmental Factors (noise)
       Detrimental Attitudes (hostility, disbelief)




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Conflict Handling Modes

   Withdrawal - retreat or withdraw from an actual or potential
    disagreement
   Forcing - the win-lose approach
   Smoothing - de-emphasize areas of differences and emphasize
    areas of agreement
   Compromise- use a give-and-take approach
   Confrontation problem-solving - directly face a conflict
   Conflict often produces important results, such as new ideas,
    better alternatives, and motivation to work harder and more
    collaboratively
   Groupthink can develop if there are no conflicting viewpoints




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Running Effective Meetings

   Determine if a meeting can be avoided
   Define the purpose and intended outcome of the
    meeting
   Determine who should attend the meeting
             Allow who should, but will not!
   Provide an agenda to participants before the meeting
   Prepare handouts, visual aids, and make logistical
    arrangements ahead of time
   Run the meeting professionally
       Use the Agenda to keep it focused
   Build relationships
   Follow UP!!!!!!!!!!!!!!!!!!
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Follow Up To A Meeting
   Minutes
   Agreements!
   Action Items
   Attendees
       Contact Information
   I prefer minutes within 24 hours and to
    Status the Action Items within 7 days
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Sample Stakeholder Analysis for Project
Communications


   Stakeholders
       Customer Management
       Customer Business Staff
       Customer Technical Staff
       Internal Management
       Internal Business and Technical Staff
       Training Subcontractor
       Software Subcontractor

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Number of Communication Channels =
n(n-1)/2




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Communication Methods




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Communications Channels




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Communication Role of the PM




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Interpersonal Communication


   To ensure messages are received and understood, two-way
    communication is necessary.
   Interpersonal communication is the process of sharing information with
    others.
   Three basic elements of interpersonal communication:
        The sender (or encoder) of the message.
        The signal or the message.
        The receiver (or decoder) of the message.
   Process of interpersonal communication:
        Sender determines what information to share and with whom and encodes
         the message.
        Sender transmits the message as a signal to the receiver.
        The receiver receives the message.
        The receiver decodes the message to determine its meaning and then
         responds accordingly.
        Communication is successful if the decoded message is the same as the
         sender intended.

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Methods of Communication


   Verbal:
        Advantages:
              Timely exchange of information
              Rapid feedback
              Immediate synthesis of message
              Timely closure
        Disadvantages: technical jargon especially in complex projects may make verbal communication
         difficult for non-technical people and other stakeholders.
        Three stages of effective verbal communication and presentation:
              The introduction: Tell them what you're going to tell them.
              The explanation: Tell them.
              The summary: Tell them what you just told them.
   Non-verbal:
        Encoding a message without using words. Usually done through body language.
        Total Message Impact = Words (7%) + Vocal tones (38%) + Facial expressions (55%)
        PM's may combine vocal and nonverbal factors but must be careful that the two do not present
         contradictory messages.
   Written communication:
        The main aim of business writing is that it should be understood clearly when read quickly.
        The message should be well planned, simple, clear, and direct.
        Major steps to writing:
              Establish the basic purpose of the message.
              Collect and organize material.
              Prepare draft.
              Check the overall structure.
              Send the message.
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Macro-Barriers to Successful
Communication

   Information overload:
        Keep messages simple and direct.
        Provide sufficient information but not too much.
   Lack of subject knowledge:
        Must have sufficient knowledge to send message.
        Must know level of understanding of receiver.
   Cultural differences:
        Meanings and interpretations may vary among different cultures.
        Encourage team members to learn each other's cultures.
   Organizational climate:
        Minimize the differences associated with status and ego within the organization.
        Encourage open and trusting atmosphere.
   Number of links:
        Reduce the number of transmission links.
        The more links, the more opportunity for distortion.
        Be aware of entropy. 23-27% of message is lost in upward communication.




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Micro-Barriers to
Successful Communication
   Perceptions:
       Sender's view of the receiver: how sender perceives the receiver's
        level of knowledge and ability to understand the message.
       Receiver's view of the sender: How the receiver personally feels
        about the sender may influence how carefully the receiver listens.
   Message competition:
       Communicate only when you have the total attention of the
        recipient.
       Try to minimize noise or other factors contributing to message
        interference.
   Project jargon and terminology:
       Define project terminology used in messages.
       Be aware of the use of project terminology and the intended
        audience.



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Types of Project Communications



   Interpersonal communication.
   Communication with public and
    community.
   Formal communication.
   Informal communication.



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Communication Channels and Links



   The PM must recognize and understand
    the project's formal communication
    channels.
   Three basic channels of communication:
       Upward communication (vertically or
        diagonally)
       Downward communication (vertically or
        diagonally)
       Lateral communication (horizontally)
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Effective Listening


   Effective listening is one of the most important skills for a PM to acquire and
    practice.
   It helps develop mutual respect, rapport, and trust among project participants.
   Verbal listening behaviors:
        Asking questions to clarify and gather more information.
        Paraphrasing what the speaker has said.
        Summarizing at intervals what the speaker has said to confirm what you have
         understood.
        Asking the speaker for examples.
        Ascertaining the speaker's feelings and acknowledging them. ("You seem angry.")
        Directing the speaker to the most appropriate listener. ("George can best help you
         with that.")
   Non-verbal listening behaviors:
        Making eye contact.
        Being expressive and alert.
        Moving closer to the speaker.
        Listening for the intention behind the speaker's communication.
        Facial expressions, touching, use of space, use of time.



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        Barriers to Effective Listening

   The mismatch between our speed of talking (100-400
    words per minute) and our speed of thinking (approx. 600
    words per minute) makes effective listening tough.
   Some of the personal and environmental barriers that
    influence the overall effectiveness of communication
    include:
       Poor listeners: People do not talk freely when they know the
        audience isn't listening.
       Resistance to the message: People don't like to listen to something
        that is contrary to their preconceived ideas.
       Physical distractions: telephone calls, people coming in and out of
        office / meetings, etc.

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Guidelines for Active Listening



   Stop talking!
   Show the speaker you are ready to
    listen:
       Silence: signals you are ready to listen.
       Few distractions: shut the door, put the
        phone on hold, etc.
       A receptive attitude: empathize with the
        speaker's point of view.
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Performance / Status Reports

   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
       Project forecasting predicts future project status
        and progress based on past information and
        trends
       Status review meetings often include performance
        reporting

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Developing a Communications
Infrastructure


   A communications infrastructure is a set of tools,
    techniques, and principles that provide a foundation
    for the effective transfer of information
       Tools include e-mail, project management software,
        groupware, fax machines, telephones, teleconferencing
        systems, document management systems, and word
        processors
       Techniques include reporting guidelines and templates,
        meeting ground rules and procedures, decision-making
        processes, problem-solving approaches, and conflict
        resolution and negotiation techniques
       Principles include using open dialog and an agreed upon
        work ethic

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Project Portal / Website

   What
       Useful Documents
       Contact Information
       Propaganda
       Test Versions
   Why Not
       Maintenance Cost!

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Final Project Report

A project or phase of a project requires
  closure
 Administrative closure produces

 – project archives

 – formal acceptance

 – lessons learned

 Final Free Lunch!


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   CHAPTER 10


                  Project Risk Management



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What is Risk?

   A dictionary definition of risk is ―the possibility
    of loss or injury‖
   Project risk involves understanding potential
    problems that might occur on the project and
    how they might impede project success
   Risk management is like a form of insurance
       it is an investment



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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 a person who is 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




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Project Risk Management

   The goal of project risk management is to minimize potential
    risks while maximizing potential opportunities. Major processes
    include
        Risk management planning: deciding how to approach and plan the
         risk management activities for the project
        Risk identification: determining which risks are likely to affect a
         project and documenting their characteristics
        Qualitative risk analysis: characterizing and analyzing risks and
         prioritizing their effects on project objectives
        Quantitative risk analysis: measuring the probability and
         consequences of risks
        Risk response planning: taking steps to enhance opportunities and
         reduce threats to meeting project objectives
        Risk monitoring and control: monitoring known risks, identifying
         new risks, reducing risks, and evaluating the effectiveness of risk
         reduction


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Questions in a Risk Management Plan


   The risk questions:
   Why?
   What?
   How?
   When?
   How Much?


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Other Types of Risk

   Market Risk: Will the new product be useful
    to the organization or marketable to others?
    Will users accept and use the product or
    service?
   Financial Risk: Can the organization afford to
    undertake the project? Is this project the best
    way to use the company’s financial
    resources?
   Technology Risk: Is the project technically
    feasible? Could the technology be obsolete
    before a useful product can be produced?
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Risk Identification

   Risk identification is the process of
    understanding what potential unsatisfactory
    outcomes are associated with a particular
    project
   Several risk identification tools and
    techniques include
       Brainstorming
       The Delphi technique
       Interviewing
       SWOT analysis

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Knowledge Area

   Integration
   Scope
   Time
   Cost
   Quality
   Human Resources
   Communications
   Risk
   Procurement

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Quantitative Risk Management

   Assess the likelihood and impact of identified
    risks to determine their magnitude and
    priority
       Common in Hardware System
   Risk quantification tools and techniques
    include
       Probability/Impact matrixes
       The Top 10 Risk Item Tracking
       Expert judgment

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Graphical View of Risk




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Decision Tree and EMV

   A decision tree is a diagramming method used to
    help you select the best course of action in situations
    in which future outcomes are uncertain
   EMV is a type of decision tree where you calculate
    the expected monetary value of a decision based on
    its risk event probability and monetary value




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Simulation

   Simulation uses a representation or model of
    a system to analyze the expected behavior or
    performance of the system
   Monte Carlo analysis simulates a model’s
    outcome many times to provide a statistical
    distribution of the calculated results
   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 between the
    optimistic and most likely values
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Results




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Risk Response Planning

   After identifying and quantifying risk, you must
    decide how to respond to them
   Four main strategies:
       Risk avoidance: eliminating a specific threat or risk, usually
        by eliminating its causes
       Risk acceptance: accepting the consequences should a risk
        occur
       Risk transference: shifting the consequence of a risk and
        responsibility for its management to a third party
       Risk mitigation: reducing the impact of a risk event by
        reducing the probability of its occurrence



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Risk Monitoring & Control

   Monitoring risks involves knowing their status
   Controlling risks involves carrying out the risk management
    plans as risks occur
   Workarounds are unplanned responses to risk events that must
    be done when there are no contingency plans
   The main outputs of risk monitoring and control are corrective
    action, project change requests, and updates to other plans
   Risk response control involves executing the risk management
    processes and the risk management plan to respond to risk
    events
   Risks must be monitored based on defined milestones and
    decisions made regarding risks and mitigation strategies
   Sometimes workarounds or unplanned responses to risk events
    are needed when there are no contingency plans


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   CHAPTER 11


                       Project Procurement
                           Management

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Project Procurement Management

   Procurement planning: determining what, when, and how much
    to procure
   Solicitation planning: documenting product requirements and
    identifying potential sources
   Solicitation: obtaining quotations, bids, offers, or proposals as
    appropriate
   Source selection: choosing from among potential vendors
   Contract administration: managing the relationship with the
    vendor
   Contract close-out: completion and settlement of the contract
   Make-or-buy analysis: determining whether a particular product
    or service should be made or performed inside the organization
    or purchased from someone else.
        Often involves financial analysis


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Types of Contracts

   Unit price contracts
   Time and material contracts
   Cost reimbursable
   Fixed price or lump sum




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Statement of Work SOW

   A statement of work is a description of
    the work required for the procurement
   Many contracts, mutually binding
    agreements, include SOWs
   A good SOW gives bidders a better
    understanding of the buyer’s desires


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SOW
   Scope of Work: Describe the work to be done to detail. Specify the hardware
    and software involved and the exact nature of the work.
   Location of Work: Describe where the work must be performed. Specify the
    location of hardware and software and where the people must perform the work
   Period of Performance: Specify when the work is expected to start and end,
    working hours, number of hours that can be billed per week, where the work
    must be performed, and related schedule information.
   Deliverables Schedule: List specific deliverables, describe them in detail, and
    specify when they are due.
   Applicable Standards: Specify any company or industry-specific standards
    that are relevant to performing the work.
   Acceptance Criteria: Describe how the buyer organization will determine if
    the work is acceptable.
   Special Requirements: Specify any special requirements such as hardware or
    software certifications, minimum degree or experience level of personnel, travel
    requirements, and so on.




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Solicitation Planning

   Solicitation planning involves preparing several documents:
        Request for Proposals: used to solicit proposals from prospective sellers
         where there are several ways to meet the sellers’ needs
        Requests for Quotes: used to solicit quotes for well-defined procurements
        Invitations for bid or negotiation and initial contractor responses are also
         part of solicitation planning
        Request For Qualification: used to get a set of interested vendors
   Solicitation involves obtaining proposals or bids from prospective sellers
   Organizations can advertise to procure goods and services in several
    ways
        approaching the preferred vendor
        approaching several potential vendors
        advertising to anyone interested
   A bidders’ conference can help clarify the buyer’s expectations




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Source Selection

   Source selection involves
       evaluating bidders’ proposals
       choosing the best one
       negotiating the contract
       awarding the contract
   It is helpful to prepare formal evaluation
    procedures for selecting vendors
   Buyers often create a ―short list‖

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Contract Administration

   Contract administration ensures that the
    seller’s performance meets contractual
    requirements
   Contracts are legal relationships, so it is
    important that legal and contracting
    professionals be involved in writing and
    administering contracts
   Many project managers ignore contractual
    issues, which can result in serious problems
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Contract Close Out

   Contract close-out includes
       product verification to determine if all work
        was completed correctly and satisfactorily
       administrative activities to update records
        to reflect final results
       archiving information for future use
   Procurement audits identify lessons
    learned in the procurement process
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Cost Reimbursable Contracts

   Cost plus incentive fee (CPIF): the buyer pays the
    seller for allowable performance costs plus a
    predetermined fee and an incentive bonus
   Cost plus fixed fee (CPFF): the buyer pays the seller
    for allowable performance costs plus a fixed fee
    payment usually based on a percentage of estimated
    costs
   Cost plus percentage of costs (CPPC): the buyer pays
    the seller for allowable performance costs plus a
    predetermined percentage based on total costs


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   Chapter 12

                       Project Management
                          as a Profession



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PM Career Development Path




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Project Management Institute (PMI)


   Project Management Institute (PMI®)
   Not-for-profit professional association
   Over 80,000 members worldwide
   Established 1969
   Global Organization Headquartered in:
       Newtown Square, Pennsylvania USA


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PMP Certification Requirements

   Four main requirements for earning PMP
    certification
       Having experience working in the field of project
        management. You need 4,500 hours with a
        baccalaureate degree and 7,500 without a degree
       Signing a PMP Certificate and Candidate
        Agreement and Release form
       completing the PMP Certification Exam Application
        and paying a fee of $555 for non-PMI members
        and $405 for members
       Passing the PMP exam
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PMP Certification (by industry)




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PM Needs Some Domain
Knowledge
   No one understands everything well!
   It helps to be effective project
    management if you understand (or
    once understood) one the domains well!
       Software
       Quality etc..
   People Skills are required!

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Discussion
   ???




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