DISE - Introduction to Project Management

Diploma in Software Engineering
Module VII: Introduction to Project
Management
Rasan Samarasinghe
ESOFT Computer Studies (pvt) Ltd.
No 68/1, Main Street, Pallegama, Embilipitiya.

Contents
1. What is a Project?
2. History of the Project Management
3. Attributes of a Project
4. What is Project Management?
5. Why Project Management Important?
6. The Triple Constraints of a Project
7. Project Stakeholders
8. Performing Organizational Structures
9. Project Management Life Cycle
10. Project Management Processes
11. Nine Knowledge Areas
12. Integration Management
13. Scope Management
14. Time Management
15. Cost Management
16. Quality Management
17. Human Resource Management
18. Communication Management
19. Risk Management
20. Procurement Management

What is a Project?
• A project is a set of related tasks that are
coordinated to achieve a specific objective in a
given time limit.
• A project can be known as a temporary attempt
undertaken to create an unique product or
service.

Examples of Projects
A. Designing a new Product or Service.
B. Moving from one building to another.
C. Designing and building a new Vehicle.
D. Computerizing a Manual System.
E. Building a new Road.
F. Building a new House.

History of the Project Management

History of the Project Management
• For most people the starting point in the History
of Project Management is the Great Pyramid at
Giza, 2550 B.C.
• The 1950s marked the beginning of the modern
project management era, prior to then projects
were managed on an ad-hoc basis using mostly
informal techniques and tools.

Attributes of a Project
• A project has a unique purpose
• A project is temporary
• A project is developed using progressive elevation
• The project requires resources from various areas
(people, hardware, software)
• A project should have a primary customer or
sponsor
• A project involves uncertainty

What is Project Management?
Project Management is the application of
knowledge, skills, tools and techniques to project
activities to meet project requirements.

Why Project Management Important?
• To avoid the over runs of the project budget
constraints
• To avoid exceeding the estimated time duration of
project
• To deliver product or service which satisfying the
stated customer and project requirement

The Triple Constraints of a Project
Every project is constraint in different ways by its
scope, time and cost goals.

Project Stakeholders
• Project manager - the individual responsible for
managing the project.
• Customer - the individual or organization who will
use the project product.
• Performing organization - the enterprise whose
employees are most directly involved in doing the
work of the project.
• Sponsor - the individual or group within the
performing organization who provides the
financial resources, in cash or in kind, for the
project.

Performing Organizational Structures
• Any operating organization should have its own
structure in order to operate efficiently.
• For an organization, the organizational structure is
a hierarchy of people and its functions.

Project Characteristics and Organization Structures

Project Management Life Cycle
1. Initiation - starting up the project by documenting a
business case, feasibility study, terms of reference,
appointing the team and setting up a Project Office.
2. Planning - creating the roadmap for the project: project
plan, resource plan, financial plan, quality plan and
communications plan.
3. Execution - involves building the deliverables and
controlling the project delivery, scope, costs, quality, risks
and issues.
4. Closure - involves winding-down the project by releasing
staff, handing over deliverables to the customer and
completing a post implementation review.

Project Management Processes
• A process is “a series of actions bringing about a result”
• Projects are composed of processes.

Processes overlap and interact throughout the
project.

We can describe each process by:
1. Inputs
2. Tools and Techniques
3. Outputs

Nine Knowledge Areas
1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human Resource Management
7. Communication Management
8. Risk Management
9. Procurement Management

Project Integration Management
Project Integration Management includes the
processes required to ensure that the various
elements of the project are properly coordinated.
Processes:
Project Plan Development
Project Plan Execution
Overall Change Control

Project Plan Development Process
Project plan development uses the outputs of the
other planning processes to create a consistent,
coherent document that can be used to guide both
project execution and project control.

Inputs for Project Plan Development Process
• Other planning outputs. (WBS)
• Historical information - Estimating databases, records
of past project performance
• Organizational policies.
• Constraints - Factors that will limit the project
management team’s options.(a predefined budget)
• Assumptions - If the date that a key person will
become available is uncertain, the team may assume
a specific start date

Tools and Techniques for Project Plan Development Process
• Project planning methodology - Structure approach
used to guide the project team during development
of the project plan. (project management software,
facilitated start-up meetings)
• Stakeholder skills and knowledge - Every stakeholder
has skills and knowledge which may be useful in
developing the project plan.
• Project management information system (PMIS) -
Consists of the tools and techniques used to gather,
integrate, and disseminate the outputs of the other
project management processes.

Project Plan Development Process Outputs
• Project plan - A formal, approved document used to
manage and control project execution.
– Project charter.
– A description of the project management approach or strategy
– Scope statement
– Work breakdown structure (WBS)
– Cost estimates, scheduled start dates, and responsibility assignments to
WBS
– Performance measurement baselines for schedule and cost.
– Major milestones and target dates for each.
– Key or required staff.
– Key risks, including constraints and assumptions, and planned responses.
– scope management plan, schedule management plan, etc.
– Open issues and pending decisions
• Supporting detail.
– Outputs from other planning processes
– requirements, specifications, and designs documents

Project Plan Execution Process
• Project plan execution is the primary process for
carrying out the project plan.
• The vast majority of the project’s budget will be
expended in performing this process.

Inputs for Project Plan Execution Process
• Project plan.
• Corrective action - Anything done to bring
expected future project performance into line
with the project plan.

Tools and Techniques for Project Plan Execution Process
• General management skills - leadership,
communicating, and negotiating
• Product skills and knowledge.
• Work authorization system - formal procedure for
sanctioning project work to ensure that work is done
at the right time and in the proper sequence.
• Status review meetings - regularly scheduled meetings
held to exchange information about the project.
• Project management information system.
• Organizational procedures.

Project Plan Execution Process Outputs
• Work results - outcomes of the activities
• Change requests - expand project scope, modify
cost or schedule estimates

Overall Change Control Process
Overall change control is concerned with
1. Influencing the factors which create changes to
ensure that changes are beneficial.
2. Determining that a change has occurred.
3. Managing the actual changes when and as they
occur.

Inputs for Overall Change Control Process
• Project plan.
• Performance reports.
• Change requests.

Tools and Techniques for Overall Change Control Process
• Change control system - formal documented procedures
that defines the steps by which official project documents
may be changed.
• Configuration management.
– Identify and document the functional and physical characteristics of an
item or system.
– Control any changes to such characteristics.
– Record and report the change and its implementation status.
– Audit the items and system to verify conformance to requirements.
• Performance measurement.
• Additional planning - Because projects seldom run exactly
according to plan.
• Project management information system

Overall Change Control Process Outputs
• Project plan updates.
• Corrective action.
• Lessons learned.

Project Scope Management
Project scope management involves defining and
managing all the work required, and only work
required, to complete the project successfully.
Processes:
Initiation
Scope Planning
Scope Definition
Scope Verification
Scope Change Control

Initiation Process
• Initiation committing the organization to begin
the next phase of the project.
• In some organizations, a project is not formally
initiated after completion of a feasibility study

Inputs for Initiation Process
• Product description - documents the
characteristics of the product or service that the
project was undertaken to create.
• Strategic plan.
• Project selection criteria - financial return, market
share, public perceptions
• Historical information.

Tools and Techniques for Initiation Process
• Project selection methods.
–Benefit measurement methods
–Constrained optimization methods
• Expert judgment.

Initiation Process Outputs
• Project charter - Document that formally recognizes
the existence of a project.
– The business need that the project was undertaken to address.
– The product description
• Project manager identified/assigned - project
manager should always be assigned prior to the start
of project plan execution
• Constraints - factors that will limit the project
management team’s options.
• Assumptions - factors that, for planning purposes,
will be considered to be true, real, or certain.

Scope Planning Process
Scope Planning developing a written scope
statement as the basis for future project decisions.

Inputs for Scope Planning Process
• Product description.
• Project charter.
• Constraints.
• Assumptions.

Tools and Techniques for Scope Planning Process
• Product analysis - systems engineering, value
engineering, value analysis, function analysis,
quality function deployment.
• Benefit/cost analysis - estimating tangible and
intangible costs and benefits
• Alternatives identification - any technique used
to generate different approaches to the project.

Scope Planning Process Outputs
• Scope statement.
– Project justification -business need that the project was
undertaken
– Project product - summary of the product description
– Project deliverables - list of the summary level sub-products
– Project objectives - criteria that must be met for the project to be
considered successful
• Supporting detail - facilitate Scope statement’s use by
other project management processes.
• Scope management plan - describes how project
scope will be managed.

Scope Management Plan
A Project Scope Management Plan Should Consist
A. Introduction
B. Scope Management Approach
C. Roles and Responsibilities
D. Scope Definition
E. Project Scope Statement
F. Work Breakdown Structure
G. Scope Verification
H. Scope Control

Scope Definition Process
Scope definition involves subdividing the major
project deliverables into smaller, more manageable
components in order to:
• Improve the accuracy of cost, time, and resource
estimates.
• Define a baseline for performance measurement
and control.
• Facilitate clear responsibility assignments.

Inputs for Scope Definition Process
• Constraints.
• Assumptions.
• Other planning outputs.

Tools and Techniques for Scope Definition Process
• Work breakdown structure templates - A WBS
from a previous project can often be used as a
template for a new project.
• Decomposition - involves subdividing the major
project deliverables into smaller, more
manageable components

Scope Definition Process Outputs
• Work breakdown structure - Dividing complex
projects to simpler and manageable tasks is
identified as Work Breakdown Structure (WBS).

Work Breakdown Structure (WBS)
Following are a few reasons for creating a WBS in a
project:
• Accurate and readable project organization.
• Accurate assignment of responsibilities to the
project team.
• Indicates the project milestones and control
points.
• Helps to estimate the cost, time and risk.
• Illustrate the project scope.

Scope Verification Process
Scope verification is the process of formalizing
acceptance of the project scope by the stakeholders
(sponsor, client, customer, etc.).

Inputs for Scope Verification Process
• Work results - deliverables have been fully or
partially completed
• Product documentation.

Tools and Techniques for Scope Verification Process
• Inspection - measuring, examining, and testing
undertaken to determine whether results conform
to requirements.

Scope Verification Process Outputs
• Formal acceptance - Documentation that the
client or sponsor has accepted the product of the
project or phase.

Scope Change Control Process
Scope change control is concerned with
• Influencing the factors which create scope
changes to ensure that changes are beneficial.
• Determining that a scope change has occurred.
• Managing the actual changes when and if they
occur.

Inputs for Scope Change Control Process
• Work breakdown structure.
–An external event (a change in a government regulation).
–An error or omission in defining the scope of the product
(failure to include a required feature in the design).
–An error or omission in defining the scope of the project
–A value-adding change (project is able to reduce costs by
taking advantage of technology that was not available when
the scope was originally defined)
• Scope management plan.

Tools and Techniques for Scope Change Control Process
• Scope change control system - defines the
procedures which the project scope may be
changed.
• Additional planning.

Scope Change Control Process Outputs
• Scope changes.
• Corrective action - anything done to bring
expected future project performance into line
with the project plan.

Project Time Management
Project Time Management includes the processes
required to ensure timely completion of the
project.
Processes:
Activity Definition
Activity Sequencing
Activity Duration Estimating
Schedule Development
Schedule Control

Activity Definition Process
Activity Definition identifying the specific activities
that must be performed to produce the various
project deliverables.

Inputs for Activity Definition Process
• Constraints.
• Assumptions.

Tools and Techniques for Activity Definition Process
• Decomposition - subdividing project elements
into smaller, more manageable components in
order to provide better management control.
• Templates - An activity list from a previous project

Activity Definition Process Output
• Activity list.
• Supporting detail - Supporting detail for the
activity list including identified assumptions and
constraints.
• Work breakdown structure updates.

Activity Sequencing Process
Activity sequencing involves identifying and
documenting interactivity dependencies.

Inputs for Activity Sequencing Process
• Activity list.
• Mandatory dependencies – Ex: impossible to erect
the superstructure until after the foundation has
been built / a prototype must be built before it can be
tested
• Discretionary dependencies - dependencies are
those which are defined by the project management
team.
• External dependencies - testing activity in a software
project may be dependent on delivery of hardware
from an external source
• Constraints and Assumptions

Dependencies
Dependencies are the relationships among tasks
which determine the order in which activities need
to be performed.
Finish to Start
Start to Start
Finish to Finish
Start to Finish

Tools and Techniques for Activity Sequencing Process
• Precedence diagramming method (PDM)
• Arrow diagramming method (ADM)
• Conditional diagramming methods.

Activity Sequencing Process Outputs
• Project network diagram - diagram of project
activities that shows the sequential relationships
of activities using arrows and nodes.
• Activity list updates.

Activity Duration Estimating Process
Activity Duration Estimating is estimating the
number of work periods which will be needed to
complete individual activities.

Inputs for Activity Duration Estimating Process
• Activity list.
• Constraints and Assumptions
• Resource requirements.
• Resource capabilities.
• Historical information - Project files, Commercial
duration estimating databases, Project team
knowledge

Tools and Techniques for Activity Duration Estimating Process
• Analogous estimating.
• Simulation - calculating multiple durations with
different sets of assumptions.

Activity Duration Estimating Process Outputs
• Activity duration estimates.
• Basis of estimates - Assumptions made in
developing the estimates
• Activity list updates.

Schedule Development Process
Schedule Development analyzing activity
sequences, activity durations, and resource
requirements to create the project schedule.

Inputs for Schedule Development Process
• Project network diagram.
• Resource pool description - Knowledge of what resources
will be available at what times (shared resources
availability maybe highly variable)
• Calendars.
• Constraints.
– Imposed dates.
– Key events or major milestones.
• Assumptions.
• Leads and lags.

Tools and Techniques for Schedule Development Process
• Mathematical analysis.
–Critical Path Method (CPM)
–Graphical Evaluation and Review Technique (GERT)
–Program Evaluation and Review Technique (PERT)
• Duration compression - shortening the project
schedule without changing the project scope
• Simulation.
• Resource leveling heuristics.
• Project management software.

Critical Path Method
Critical Path Method is a project management
technique that lays out those activities that must be
completed in a specific order to complete a project
successfully on time.

Critical Path Method
The critical path is the sequence of activities with
the longest duration

Advantages of Critical Path Method
• Tracking of critical activities that must be
completed on time in order to complete the
whole project on time.
• Calculate the minimum amount of time it will take
to complete the project.
• Shows the earliest and latest dates each activity
can start without impacting the overall project
schedule.

Float Determination
Float is the amount of time an activity can slip
before it causes your project to be delayed.

ES / EF / LS / LF Calculation
Early Start & Early Finish Calculation
ES of the first activity = 1.
EF of an activity = its ES + duration - one.
Next Activity ES = Predecessor EF + 1
Late Start & Late Finish Calculation
LF for the last activity in every path = last
activity's EF in the critical path (14)
LS = LF - duration + 1.
Predecessor LF = Successor LS - 1

Schedule Development Process Outputs
• Project schedule - includes planned start and
expected finish dates for each detail activity.
–Network Diagrams
–Gantt Charts
• Supporting detail - identified assumptions and
constraints
• Schedule management plan - defines how
changes to the schedule will be managed.
• Resource requirement updates.

Gantt Charts
• A Gantt chart is a type of bar chart, developed by
Henry Gantt in the 1910s, that showing activities
displayed against time.
• Gantt chart provides a graphical illustration of a
schedule that helps to plan, coordinate, and track
specific tasks in a project.

Gantt Charts
It allows you to see at a glance:
• What the various activities are.
• When each activity begins and ends.
• Activity dependencies.
• Where activities overlap with other activities.
• The start and end date of the whole project.

Schedule Control Process
Schedule Control process controlling changes to the
project schedule.
1. Influencing the factors which create schedule
changes to ensure that changes are beneficial
2. Determining that the schedule has changed
3. Managing the actual changes when and as they
occur.

Inputs for Schedule Control Process
• Project schedule.
• Performance reports - information on schedule
performance such as which planned dates have
been met and which have not.
• Schedule management plan.

Tools and Techniques for Schedule Control Process
• Schedule change control system - defines the
procedures by which the project schedule may be
changed.
• Performance measurement - assess the
magnitude of any variations which occur.
• Project management software.

Schedule Control Process Outputs
• Schedule updates.

Project Cost Management
Project Cost Management includes the processes
required to ensure that the project is completed
within the approved budget.
Processes:
Resource Planning
Cost Estimating
Cost Budgeting
Cost Control

Resource Planning Process
Resource Planning determining what resources
(people, equipment, materials) and what quantities
of each should be used to perform project
activities.

Inputs for Resource Planning Process
• Resource pool description - Knowledge of what
resources (people, equipment, material) are
potentially available is necessary for resource
planning.

Tools and Techniques for Resource Planning Process
• Alternatives identification.

Resource Planning Process Outputs

Cost Estimating Process
Cost estimating involves developing an
approximation (estimate) of the costs of the
resources needed to complete project activities.

Inputs for Cost Estimating Process
• Resource rates - staff cost per hour, cost per cubic
yard
• Historical information - Project files, Commercial
cost estimating databases, Project team
knowledge

Tools and Techniques for Cost Estimating Process
• Analogous Estimating - uses the experience from
previous projects and extrapolates that onto the current
project.
• Bottom Up Estimating - estimates of small activities are
added up into subgroups and finally into the project total.
• Top Down Estimating - A fixed budget is the broken down
using the WBS to determine the number or of activities
that can be achieved with the budget.
• Parametric Estimating - use standardized parameters that
define the costs of an activity or task for a specific rate or
output.

Cost Breakdown Structure
Cost Breakdown Structure is a system of dividing a
project into cost categories to provide more
effective cost management

Cost Estimating Process Outputs
• Cost estimates - quantitative assessments of the
likely costs of the resources required to complete
project activities.
– description of the scope of work estimated.
– Documentation of the basis for the estimate
– Documentation of any assumptions made.
– An indication of the range of possible results, for example,
$10,000 ± $1,000
• Cost management plan - how cost variances will be
managed.

Cost Budgeting Process
Cost budgeting involves allocating the overall cost
estimates to individual work items in order to
establish a cost baseline for measuring project
performance.

Inputs for Cost Budgeting Process
• Cost estimates.
• Project schedule.

Tools and Techniques for Cost Budgeting Process
• Cost estimating tools and techniques.

Cost Budgeting Process Outputs
• Cost baseline - time-phased budget that will be
used to measure and monitor cost performance
on the project.

Cost Control Process
Cost control includes:
• Monitoring cost performance to detect variances
from plan.
• Ensuring that all appropriate changes are recorded
accurately in the cost baseline.
• Preventing incorrect, inappropriate, or unauthorized
changes from being included in the cost baseline.
• Informing appropriate stakeholders of authorized
changes.

Inputs for Cost Control Process
• Cost baseline.
• Cost management plan.

Tools and Techniques for Cost Control Process
• Cost change control system - defines the
procedures which the cost baseline may be
changed.
• Computerized tools - project management
software and spreadsheets

Cost Performance Analysis
Cost Categories Benefit Categories
Direct - A cost directly related
to producing goods or
performing a service
Better - which products or
activities will be better
Indirect - A cost to a project
that is not directly related to
making a product
Faster - how much faster they
will be
Opportunity - A benefit or
profit that must be given up
to acquire or achieve
something else
Cheaper - how much less they
will cost

Cost Control Process Outputs
• Revised cost estimates - modifications to the cost
information
• Budget updates - changes to an approved cost
baseline.
• Estimate at completion - forecast of total project
costs based on project performance.

Project Quality Management
Project quality management is all of the processes
and activities needed to determine and achieve
project quality (meeting the needs of customers).
Processes:
Quality Planning
Quality Assurance
Quality Control

Project Human Resource Management
Project Human Resource Management includes
the processes required to make the most
effective use of the people involved with the
project.
Processes:
Organizational Planning
Staff Acquisition
Team Development

Organizational Planning Process
Organizational planning involves identifying,
documenting, and assigning project roles,
responsibilities, and reporting relationships.

Inputs for Organizational Planning Process
• Project Interfaces
– Organizational interfaces - formal and informal reporting relationships
– Technical interfaces - relationships among different technical disciplines
– Interpersonal interfaces - relationships among individuals on the project
• Staffing Requirements - kinds of competencies and
individuals needed and in what time frame
• Constraints - factors that limit a project team’s options
such as:
– Organizational structure
– Collective bargaining agreements
– Preferences of the project management team
– Expected staff assignments

Tools and Techniques for Organizational Planning Process
• Templates - Often prior projects role and responsibility
definitions or reporting relationships can help expedite
the process
• Human Resource Practices - Knowledge of HR policies,
guidelines, and procedures can help with organizational
planning
• Organizational Theory - Understanding organizational
theory will better enable the PM to respond to project
requirements
• Stakeholder Analysis - Identification and analysis of
needs of stakeholders will ensure that their needs will be
met

Organizational Planning Process Outputs
• Role and responsibility assignments
– A responsibility Assignment Matrix is often used to closely link
assignments to the project scope definition
• Staffing management Plan
– describes when and how human resources will be brought onto
and taken off of the project team
• Organization chart
– Any graphic display of project reporting relationships
• Supporting detail - includes such detail as:
– Organizational impact
– Job descriptions
– Training needs

Responsibility Assignment Matrix

Staff Acquisition Process
Staff acquisition involves getting the human
resources needed (individuals or groups)
assigned to and working on the project.

Inputs for Staff Acquisition Process
• Staffing management plan.
• Staffing pool description - considering
characteristics such as previous experience,
personal interests, personal characteristics,
availability, competencies and proficiency .
• Recruitment practices.

Tools and Techniques for Staff Acquisition Process
• Negotiations - with responsible functional
managers, with other project management
teams
• Pre-assignment - usually in the case of a
competitive proposal and staff was promised,
or for an internal service project
• Procurement

Staff Acquisition Process Outputs
• Project staff assigned
• Project team directory

Team Development Process
Team development includes both enhancing the
ability of stakeholders to contribute as
individuals as well as enhancing the ability of
the team to function as a team.

Inputs for Team Development Process
• Project staff
• Project plan
• Staffing management plan
• performance reports - provide feedback to the
project team about performance against the
project plan.
• external feedback - periodical measure against
the expectations of those outside the project.

Tools and Techniques for Team Development Process
• Team building activities
• General management skills
• Reward and recognition systems
• Collocation
• Training

Team Development Process Outputs
• Performance improvements - can come from many
sources and affect many areas of project
performance; for example:
–Improvement in individual skills
–Improvements in team behaviors
–Improvements in either individual or team competencies
• Input to performance appraisals

Project Communication Management
Communication Management involves generating,
collecting and storing the project information.
Processes:
Communications Planning
Information Distribution
Performance Reporting
Administrative Closure

Communications Planning Process
Communications planning involves determining the
information and communications needs of the
stakeholders:
• Who needs what information.
• When will they need it.
• How will it be given to them.

Inputs for Communications Planning Process
• Communications requirements - Communications
requirements are the sum of the information
requirements of the project stakeholders.
• Communications technology - The technologies or
methods used to transfer information
• Constraints - Constraints are factors that will limit the
project management team’s options.
• Assumptions - Assumptions are factors that, for
planning purposes, will be considered to be true, real,
or certain.

Tools and Techniques for Communications Planning Process
• Stakeholder analysis - The information needs of
the various stakeholders should be analyzed.

Communications Planning Process Outputs
A communications management plan is a document which
provides:
• Which details and what methods will be used to gather
and store information.
• A distribution structure which information (status reports,
data, schedule, technical documentation) will flow, and
what methods(written reports, meetings) will be used.
• A description of the information to be distributed.
• Production schedules showing when each type of
communication will be produced.
• Methods for accessing information.
• A method for updating and refining the communications
management plan

Information Distribution Process
Information distribution involves making needed
information available to project stakeholders in a
timely manner.

Inputs for Information Distribution Process
• Work results.
• Communications management plan.
• Project plan.

Tools and Techniques for Information Distribution Process
• Communications skills.
–Written and oral, listening and speaking.
–Internal (within the project) and external (to the customer,
the media, the public)
–Formal (reports, briefings, etc.) and informal (memos, ad
hoc conversations, etc.).
–Vertical (up and down the organization) and horizontal (with
peers)
• Information retrieval systems
–manual filing systems, databases, project management
software, engineering drawings
• Information distribution systems.
–project meetings, hard copy document, databases, fax,
electronic mail, voice mail, video conferencing

Information Distribution Process Outputs
• Project records - Project records may include
correspondence, memos, reports, and documents
describing the project.

Performance Reporting Process
Performance reporting involves collecting and
disseminating performance information
• Status reporting - describing where the project
now stands.
• Progress reporting - describing what the project
team has accomplished.
• Forecasting - predicting future project status and
progress.

Inputs for Performance Reporting Process
• Project plan.
• Work results.
–which deliverables have been fully or partially completed,
what costs have been incurred or committed
• Other project records.

Tools and Techniques for Performance Reporting Process
• Performance reviews - Performance reviews are
meetings held to assess project status or progress.
• Variance analysis - Variance analysis involves
comparing actual project results to planned or
expected results.
• Trend analysis - Trend analysis involves examining
project results over time to determine if performance
is improving or deteriorating.
• Earned value analysis.
• Information distribution tools and techniques.

Illustrative Performance Report

Performance Reporting Process Outputs
• Performance reports
• Change requests

Administrative Closure Process
• The project or phase, after either achieving its
objectives or being terminated for other reasons,
requires closure.
• Administrative closure consists of verifying and
documenting project results to formalize
acceptance of the product of the project by the
sponsor, client, or customer.

Inputs for Administrative Closure Process
• Performance measurement documentation.
• Documentation of the product of the project.

Tools and Techniques for Administrative Closure Process
• Performance reporting tools and techniques.

Administrative Closure Process Outputs
• Project archives - A complete set of indexed
project records
• Formal acceptance - Documentation that the
client or sponsor has accepted the product of the
project (or phase)

Project Risk Management
Risk Management includes identifying, analyzing
and responding to risk related to the project
Processes:
Risk Identification
Risk Quantification
Risk Response Development
Risk Response Control

Risk Identification Process
Risk identification consists of determining which
risks are likely to affect the project and
documenting the characteristics of each.

Inputs for Risk Identification Process
• Product description - The nature of the product of
the project will have a major effect on the risks
identified.
• Other planning outputs.
– Work breakdown structure
– Cost estimates and duration estimates
– Staffing plan
– Procurement management plan

Tools and Techniques for Risk Identification Process
• Checklists - Checklists are typically organized by
source of risk.
• Flowcharting.
• Interviewing.

Risk Identification Process Outputs
• Sources of risk.
– Changes in requirements.
– Design errors, omissions, and misunderstandings.
– Poorly defined or understood roles and responsibilities.
– Poor estimates.
– Insufficiently skilled staff.
• Potential risk events - Potential risk events are discrete
occurrences such as a natural disaster or the departure of
a specific team member that may affect the project.
• Risk symptoms - indirect manifestations of actual risk
events. (poor morale may cause to delay)
• Inputs to other processes.

Risk Quantification Process
Risk quantification involves evaluating risks and risk
interactions to assess the probability to the
happening of a risk.

Inputs for Risk Quantification Process
• Stakeholder risk tolerances.
• Sources of risk.
• Potential risk events.
• Cost estimates.

Tools and Techniques for Risk Quantification Process
• Expected monetary value.
– Risk event probability - an estimate of the probability that a given
risk event will occur.
– Risk event value - an estimate of the gain or loss that will be
incurred if the risk event does occur.
• Statistical sums.
– used to calculate a range of total project costs from the cost
estimates for individual work items.
• Simulation.
– representation or model of a system to analyze the behavior or
performance of the system.
• Decision trees.

Risk Quantification Process Outputs
• Opportunities to pursue, threats to respond to.
• Opportunities to ignore, threats to accept.

Risk Response Development Process
Risk response development involves defining
enhancement steps for opportunities and responses to
threats.
Responses Categories:
Avoidance - eliminating a specific threat, usually by
eliminating the cause.
Mitigation - reducing the expected monetary value of a
risk event by reducing the probability of occurrence
Acceptance - accepting the consequences.

Inputs for Risk Response Development Process
• Opportunities to pursue, threats to respond to.
• Opportunities to ignore, threats to accept.

Tools and Techniques and Risk Response Development Process
• Procurement - acquiring goods or services from
outside the immediate project organization
• Contingency planning - involves defining action
steps to be taken if an identified risk event should
occur
• Alternative strategies - Risk events can often be
prevented or avoided by changing the planned
approach.
• Insurance.

Risk Response Development Process Outputs
• Risk management plan - document the procedures
that will be used to manage risk throughout the
project.
• Contingency plans - predefined action steps to be
taken if an identified risk event should occur.
• Reserves - provision in the project plan to mitigate
cost and/or schedule risk.
• Contractual agreements - insurance, services, and
other items as appropriate in order to avoid or
mitigate threats.
• Inputs to other processes.

Risk Response Control Process
Risk response control involves executing the risk
management plan in order to respond to risk events
over the course of the project.

Inputs for Risk Response Control Process
• Risk management plan.
• Actual risk events - Some of the identified risk
events will occur
• Additional risk identification.

Tools and Techniques for Risk Response Control Process
• Workarounds.
• Additional risk response development - If the risk
event was not anticipated, or the effect is greater
than expected

Risk Response Control Process Outputs
• Corrective action - implementing contingency
plans or workarounds
• Updates to risk management plan.

Project Procurement Management
Procurement Management involves acquiring or
procuring goods and services for a project from outside
in performing organization
Processes:
Procurement Planning
Solicitation Planning
Solicitation
Source Selection
Contract Administration
Contract Close-out

Procurement Planning Process
• Procurement planning is the process of identifying
which project needs can be best met by procuring
products or services outside the project
organization.
• It involves consideration of whether to procure,
how to procure, what to procure, how much to
procure, and when to procure it.

Inputs for Procurement Planning Process
• Scope statement - describes the current project
boundaries.
• Product description - The description of the product of
the project
• Procurement resources - resources and the expertise to
support project procurement activities.
• Market conditions - what products and services are
available in the marketplace, from whom, and under what
terms and conditions
• Constraints - Constraints are factors that limit the buyer’s
options.
• Other planning outputs - cost and schedule estimates,
quality management plans, cash flow projections, the
work breakdown structure, identified risks, and planned
staffing.
• Assumptions.

Tools and Techniques for Procurement Planning Process
• Make-or-buy analysis - determine whether a
particular product can be produced cost effectively by
the performing organization.
– Other units within the performing organization.
– Consultants.
– Professional and technical associations.
– Industry groups.
• Contract type selection.
– Fixed price contracts.
– Cost reimbursable contracts - allowable and reasonable costs
incurred by a contractor are reimbursed (give money back).
– Unit price contracts.

Procurement Planning Process Outputs
• Procurement management plan.
– What types of contracts will be used?
– If independent estimates will be needed as evaluation criteria,
who will prepare them and when?
– If the performing organization has a procurement department,
what actions can the project management team take on its own?
– If standardized procurement documents are needed, where can
they be found?
– How will multiple providers be managed?
– How will procurement be coordinated with other project aspects
such as scheduling and performance reporting?
• Statement(s) of work - Describes the procurement
item in sufficient detail to allow sellers to determine if
they are capable of providing the item.

Solicitation Planning Process
Solicitation planning involves preparing the
documents needed to support solicitation
(obtaining information from prospective sellers)

Inputs for Solicitation Planning Process
• Procurement management plan.
• Statement(s) of work.
• Other planning outputs. (project schedule)

Tools and Techniques for Solicitation Planning Process
• Standard forms - standard contracts, standard
descriptions of procurement items, standardized
versions of all or part of the needed bid
documents

Solicitation Planning Process Outputs
• Procurement documents.
– RFP: A request for proposal
– RFI: A request for information
– RFQ: A request for quotation
– Solicitations: Invitations of bids, requests for quotations and
proposals.
– Contracts: final signed agreements between clients and suppliers.
– Amendments/Modifications: any changes in solicitations, offers
and contracts.
• Evaluation criteria - used to rate or score proposals.
– “the proposed project manager must be a certified Project
Management Professional”
– “the proposed project manager must have documented, previous
experience with similar projects”
• Statement of work updates.

Solicitation Process
Solicitation involves obtaining information (bids and
proposals) from prospective sellers on how project
needs can be met.

Inputs for Solicitation Process
• Procurement documents.
• Qualified seller lists.

Tools and Techniques for Solicitation Process
• Bidder (contractor, vendor) conferences -
meetings with prospective sellers prior to
preparation of a proposal.
• Advertising.

Solicitation Process Outputs
• Proposals – seller prepared documents that
describe the seller’s ability and willingness to
provide the requested product.

Source Selection Process
Source selection involves the receipt of bids or
proposals and the application of the evaluation
criteria to select a provider.

Inputs for Source Selection Process
• Proposals.
• Evaluation criteria.

Tools and Techniques for Source Selection Process
• Contract negotiation - clarification and mutual
agreement on the structure and requirements of the
contract prior to the signing of the contract.
• Weighting system - quantifying qualitative data in
order to minimize the effect of personal prejudice on
source selection.
• Screening system - establishing minimum
requirements of performance for the evaluation
criteria.(seller might be required to propose a PM
who is a PMP before the remainder of their proposal
would be considered.)
• Independent estimates - checking proposed pricing
against procuring organization’s own estimates.

Source Selection Process Outputs
• Contract - Mutually binding agreement which
obligates the seller to provide the specified
product and obligates the buyer to pay for it.

Contract Administration Process
Contract administration is the process of ensuring
that the seller’s performance meets contractual
requirements.

Inputs for Contract Administration Process
• Contract.
• Work results - The seller’s work results which
deliverables have been completed and which have
not, to what extent are quality standards being met,
what costs have been incurred or committed, etc.
• Change requests - include modifications to the terms
of the contract or to the description of the product or
service to be provided.
• Seller invoices - The seller must submit invoices from
time to time to request payment for work performed.

Tool and Techniques for Contract Administration Process
• Contract change control system - paperwork,
tracking systems, dispute resolution procedures,
and approval levels necessary for authorizing
changes.
• Performance reporting - provides management
with information about how effectively the seller
is achieving the contractual objectives.
• Payment system - Payments to the seller are
usually handled by the accounts payable system
of the performing organization.

Contract Administration Process Outputs
• Correspondence - Contract terms and conditions
often require written documentation of certain
aspects of buyer/seller communications, such as
warnings of unsatisfactory performance and
contract changes or clarifications.
• Contract changes.
• Payment requests.

Contract Close-out Process
• It involves both product verification (Was all work
completed correctly and satisfactorily?) and
administrative close-out (updating of records to
reflect final results and archiving of such
information for future use)
• Contract close-out is similar to administrative
closure

Inputs for Contract Close-out Process
• Contract documentation.
–Schedules
–Requested and approved contract changes,
–Seller-developed technical documentation, seller
performance reports,
–Financial documents such as invoices and payment records

Tools and Techniques for Contract Close-out Process
• Procurement audits.
–structured review of the procurement process from
procurement planning through contract administration to
identify successes and failures.

Contract Close-out Process Outputs
• Contract file - A complete set of indexed records
should be prepared for inclusion with the final
project records.
• Formal acceptance and closure - formal written
notice that the contract has been completed.

The End
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DISE - Introduction to Project Management

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