Pmp study-notes

PMP Study Notes
TABLE OF CONTENTS
PMBOK (Project Management Body of Knowledge).................................................................................................................4
Chapter 1 – Introduction (Project Management Framework).....................................................................................................4

Chapter 2 – Project Life Cycle and organization.........................................................................................................................6
Chapter 3 – Project Management Processes for a project...........................................................................................................8
Chapter 4 – INTEGRATION Management...................................................................................................................................9
Chapter 5 – SCOPE Management..............................................................................................................................................14
Chapter 6 – TIME Management.................................................................................................................................................18
Monte Carlo Analysis – 1. Probability of Completion and any specific day 2. Probability of Completion in amount of Cost
3.Probability of activity in critical path 4. Risk.......................................................................................................................21
Chapter 7 – COST Management.................................................................................................................................................23
Chapter 8 – QUALITY Management..........................................................................................................................................26
Chapter 9 - HUMAN RESOURCE Management.......................................................................................................................31
Chapter 10 – COMMUNICATIONS Management.....................................................................................................................36
Chapter 11 – RISK Management................................................................................................................................................40
Chapter 12 – PROCUREMENT Management...........................................................................................................................45
Select Sellers – Tools & Techniques........................................................................................................................................46
Chapter 13 – Professional Responsibilities................................................................................................................................51
POSSIBLE EXAM QUESTIONS...............................................................................................................................................52
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Revision History
Date: Revision: Description:
7/20/2007 1 Corrected misspelled words and cleared up abbreviations. Reformatted
sections to look more consistent and easier to read.
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PMBOK (Project Management Body of Knowledge)
Chapter 1 – Introduction (Project Management Framework)
Studies conducted by Standish group in 2004 show that only 34% of the projects are successful
Projects (Temporary & Unique) vs. Operations (Ongoing and Repetitive)
Project management – Ability to meet project requirements by using various knowledge, skills, tools and techniques to
accomplish project work.
Triple Constraint – Cost, Time and Scope: As well as Quality, Risk and Customer Satisfaction.
Management By Projects – Management of Projects and some ongoing operations, which can be redefined as projects using
“Project Management”. An organization that adopts this approach defines its activities as projects in a way that is consistent
with definition of project.
1. Project Integration Management - various elements of the project are properly coordinated.
2. Project Scope Management - includes all the work required, to complete the project successfully.
3. Project Time Management - ensure timely completion of the project.
4. Project Cost Management - completed within the approved budget.
5. Project Quality Management - project will satisfy the needs for which it was undertaken
6. Project Human Resource Management - to make the most effective use of the people involved with the project.
7. Project Communications Management - to ensure timely and appropriate generation, collection, dissemination,
storage, and ultimate disposition of project information.
8. Project Risk Management - identifying, analyzing, and responding to project risk.
9. Project Procurement Management - to acquire goods and services from outside the performing organization.
Areas of Expertise
1. PMBOK
1. Project Life cycle Definition 2. Five PM process groups 3. Nine Knowledge areas
2. Application area knowledge, standards and regulations. Application areas are usually defined in terms of
a. Functional Departments and supporting disciplines
b. Technical elements
c. Management specializations
d. Industry groups
Each application areas generally have a set of accepted standards and practices.
3. Understanding Project environment
1. Cultural and social 2.International and political 3.Physical environment
4. General management knowledge and skills
1. Planning 2.Organizing 3.Staffing 4.Executing 5.Control the operations. It also includes supporting disciplines
5. Interpersonal Skills
1. Effective communication 2.Influencing the organization 3.Leadership 4.Motivation 5.Negotiation & conflict
resolution 6.Problem solving
Standard - is a “document approved by a recognized body, that provides, for common and repeated use, rules, guidelines, or
characteristics for products, processes or services with which compliance is not mandatory.” Standards start out as guidelines
and later with widespread adaptation becomes accepted as if they were regulations.
Regulation - is a “document, which lays down product, process or service characteristics, including the applicable
administrative provisions, with which compliance is mandatory.
PROJECT MANAGEMENT CONTEXT
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Program – Group of related Projects managed in a coordinated way to obtain benefits and control not available from managing
them individually.
Portfolio – Collection of Projects, Programs and other work grouped together to facilitate effective management to meet
strategic objectives. Projects or program in portfolio may be related or be independent.
PMO – Project Management Office, Project office, Program Office – Centralize and Coordinate the management of project,
oversee or administer project, program or both.
OPM3 – PMI’s organizational maturity model.
Expeditor – Staff Assistant and Communication coordinator. No Power to make decisions (Matrix)
Coordinator – Some authority, power and reports to higher-level manager. (Matrix)
Progressive Elaboration - Progressively means “proceeding in steps; continuing steadily by increments,” while elaborated
means “worked out with care and detail; developed thoroughly”
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Chapter 2 – Project Life Cycle and organization
Project life cycle - Organizations performing projects will usually divide each project into several project phases to improve
management control. Collectively, the project phases are known as the project life cycle. Usually they are sequential. These are
unique to the industries
Project Life Cycle Define:
1. What technical work to do in each phase.
2. When the deliverables are to be generated, how they are reviewed, verified & validated.
3. Who is involved in each phase.
4. How to control and approve each phase.
Project Phase - Each project phase is marked by completion of one or more deliverables. A deliverable is a tangible, verifiable
work product. The conclusion of a project phase is generally marked by a) completion and review of both key deliverables and
project performance to date, to b) determine if the project should continue into its next phase and c) detect and correct errors
cost effectively. These phase-end reviews are often called phase exits, stage gates, or kill points.
Practice of overlapping phases is often called fast tracking.
PHASES - Common Characteristics:
Cost and staffing - levels are low at the start, higher towards end, and drop rapidly as the project draws to a conclusion.
Completion - The probability of successful completion generally gets progressively higher as the project continues.
Stakeholder Influence – On the final characteristics of the project’s product and the final cost of the project is highest at the
start and gets progressively lower as the project continues.
Risk – Uncertainty and hence risk of failing is high at the beginning and get progressively lesser/better as project continues
Key stakeholders – PM, customer (buy/use), org, team & sponsor (pays), project management team, PMO
Differences - In general, differences between or among stakeholders should be resolved in favor of the customer.
Managing - is primarily concerned with “consistently producing key results expected by stakeholders,”
Leading - Establishing direction vision of the future and strategies, Aligning people to vision, Motivating and inspiring.
Organizational Structure Influence on Projects
Functional Weak Matrix Balanced Matrix Strong Matrix Projected
PM authority Little or None Limited Low to Moderate Moderate to High High to Total
Resource Availability Little or None Limited Low to Moderate Moderate to High High to Total
Project Budget Functional Manager Functional Manager Mixed PM PM
PM Role Part Time Part Time
(Expeditor/coordinator)
Full Time Full Time Full Time
Project Staff Part Time Part Time Part Time Full Time Full Time
Grouped by Area of
specialization
mix Organized by
project
Communication Request to
departmental head
then to other dept.
and back
Team member to two
bosses
Within project
Unique Silos Two bosses No home
Functional – one clear superior, staff grouped by specialization. Scope of projects are usually limited to boundaries of the
function. Any communication with other functions is done through function heads.
Projectized- team members are collocated, most of the employees are on projects, PM have a great deal of independence and
authority.
Matrix org – Blend of functional and projectized characteristics:
• Weak – maintains many characteristics of functional org and PM role is more of a coordinator or expediter.
• Strong – maintains many characteristics of the projectized org, can have F/T PM with full authority and FT staff.
• Balanced – recognizes PM but not full authority over projects.
• Composite – Mix responsibility.
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PMO – function may range from advisory to recommendation to specific policy and procedure to a formal grant of authority
from executive management. PM reports to PMO if it exists.
Planning – Planning is the only PM Process group that has a specific order of activities
Release Resources – Is the Last activity in the closing process group.
Iterations – Start after Risk management because only after this final cost and schedule can be determined.
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Chapter 3 – Project Management Processes for a project
Project process:
1. Project management process
2. Product oriented processes: specify and create the project’s product. Typically defined by project lifecycle and
application area.
Pick Process – Project Manager along with team is responsible for picking what processes are appropriate.
Concept of interaction among PM processes - (By Deming) – PLAN (Planning) – DO(executing) – CHECK & ACT
(Monitoring and Control)
Process Groups – Are not project phases. Process groups are usually repeated for each phase/sub project.
1. Initiating Process Group- Defines and authorizes the project.
a. Are often done external to the project’s scope of control.
b. Facilitate formal authorization to start a new project.
c. Inputs: requirements, SOW
d. Output: Prelim Starts the project or its phase, Scope statement, Authorized Project Charter
e. Project manager assigned
f. Funding and approval happens external to project boundaries
g. Many large or complex projects are divided into phases, and repeating it for each subsequent phases.
2. Planning Process Group: Defines and refines the objectives and plan the course of action required to attain the objective
and scope that the project was undertaken to address.
a. Develops project management plan and also refines project scope, project cost and schedule.
b. It is updated and refines through out execution process group thru rolling wave planning.
c. All necessary stakeholders are involved in this process
d. Includes following processes
i. Develop project management plan, Scope planning, Create WBS, Activity definition, Activity
Sequencing, Activity Resource Estimating, Activity Duration Estimating, Schedule Development, Cost
Estimating, Cost Budgeting, all sub plans and all risk process except Risk Monitoring and Control.
3. Executing Process Group– Majority of the project budget will be spent in performing Executing process group. Integrates
people and other resources to carry out the project management plan for the project.
a. Includes Direct and Manage Project Execution, Perform Quality Assurance, Acquire Project Team, Develop
Project team, Request Seller Responses, Information Distribution, and Select Sellers.
4. Monitoring and Controlling Process Group - Group not only monitors and controls the work being done within a process
group but also monitors and controls the entire project effort say all process areas so that timely corrective action can be
taken.
a. Monitoring and Control Project Work, ICC, Scope Verification, all control process, Manage Project Team,
Performance Reporting, Manage Stakeholders, Contract Administrator.
b. Monitoring the ongoing project against PMP and baselines, Control and Approve Changes, Preventive Action,
Defect Repair and Manage Changes.
5. Closing Process Group: formalizes acceptance of the project deliverable.
a. Close Project, Contract Closure
Project Charter – Approval and funding are handled external to the project boundaries. Charter is primarily concerned with
authorizing the project /phase. It links project to the ongoing work of the organization.
Preliminary Scope Statement – contains project and deliverables requirements, product requirements, boundaries of the
project, methods of acceptance and high level scope control. In multi phase project the process validates the project scope for
each phase.
Rolling Wave Planning – Progressive detailing of the project management plan is called rolling wave planning, indicating
plan is an interactive and ongoing process.
Core processes – Are performed in same order & may be iterated several times during any one
phase
Facilitating processes- Performed intermittently and as needed during project planning, they
are not optional.
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Chapter 4 – INTEGRATION Management
Knowledge Areas Major Processes Primary Inputs Tools & Techniques Primary Outputs
INTEGRATION CSMMMIC
Develop Project
Charter
Developing the project
charter that formally
authorizes a project or a
project phase
1. Contract (when applicable)
2. Project Statement of Work
3. Enterprise environmental
factors
4. Organizational Process Assets
1. Project Selection
Methods
2. Project Management
Methodology (PMM)
Information
system(PMIS)
4. Expert Judgment
1. Project Chapter
Develop Preliminary
Project Scope
Statement
Developing Preliminary
Project Scope Statement
that provides high level
scope narrative.
1. Project Charter
2. Project Statement of Work
3. Enterprise Environmental
Factors
1. PMM
2. PMIS
3. Expert Judgment
1. Preliminary project Scope
Statement
Develop Project
Management Plan
Documenting the actions
necessary to define,
prepare, integrate and
coordinate all subsidiary
plans into a project
management plan.
1. Preliminary project Scope
Statement
2. Project Management Processes
Factors
1. PMM
2. PMIS
3. Expert Judgment
1. Project Management Plan
Direct and Manage
Project Execution
Executing the work
defined in the project
management plan to
achieve the project’s
requirements defined in
the project scope
statement.
2. Approved Corrective actions
3. Approved Preventive Actions
4. Approved Change Requests
5. Approved defect repair
6. Validated defect Repair
7. Administrative Closure
Procedure
1. PMM
2. PMIS
1. Deliverables
2. Requested Changes
3. Work Performance Information
4. Implemented corrective actions
5. Implemented Preventive actions
6. Implemented Change Requests
7. Implemented defect repair
Monitor and Control
Project Work
Monitoring and
Controlling the processes
used to initiate, plan,
execute, and close a
project to meet the
performance objectives
defined in the project
management plan
3. Rejected Change Requests
1. PMM
2. PMIS
3. Earned Value
Technique
4. Expert Judgment
1. Recommended corrective actions
2. Recommended Preventive actions
3. Recommended Defect Repair
4. Forecasts
Integrated Change
Control
Reviewing all change
requests, approving
changes, and controlling
changes to the deliverables
and organizational process
assets.
2. Deliverables
5. Recommended corrective
actions
6. Recommended Preventive
actions
1. PMM
2. PMIS
3. Expert Judgment
1.Project Management Plan(updates)
2. Project Scope Statement (updates)
3. Deliverables
4. Approved corrective actions
5. Approved corrective actions
7. Rejected Change Requests
8. Approved Defect Repair
9. Validated Defect Repair
Close Project Finalizing all activities
across all of the project
management process
groups to formally close
the project or a project
phase.
2. Contract Documentation
3. Deliverables
factors
1. PMM
2. PMIS
3. Expert Judgment
1. Administrative closure Procedure
2. Contract closure Procedure
3. Final Product, Service or result
(updates)
Integration Management – Unification, consolidation, articulation and interactive actions that are crucial to project
completion. Integration is about making choices, about where to concentrate resources and effort. It also involves making
tradeoffs among competing objectives and alternatives. Integration is primarily concerned with effectively integrating the
processes among the Project Management Process Groups.
Integration could be said to cover the high level work a PM needs to do. The other knowledge areas in this book are detailed
work.
Reasons to start projects – Problems, market, opportunity, business requirements, customer request, technological advance,
legal requirement, social need.
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A project manager should be always be assigned prior to the start of planning and preferably while the project charter is being
developed.
It is a job of project manager to put all the pieces of the project together into one cohesive whole that gets the project done
faster, cheaper and with fewer resources while meeting the project objectives.
1. Develop Project Charter – Developing the project charter that authorizes a project.
2. Develop Preliminary Project Scope Statement – Developing PPSS provides detailed scope description
3. Develop Project Management Plan – Developing all subsidiary plans into a project management plan.
4. Direct and Manage Project Execution – Accomplish the work defined in the project plan to achieve the project’s scope.
5. Monitor and Control Project Work – Monitoring and controlling the process used to Initiate, Plan, Execute and Close a
project to fulfill the objectives defined in the project management plan.
6. Integrated Change Control – Review, approve and control all the changes/ change requests.
7. Close Project – Closing all the activities across all the process groups to close the project.
Project Charter - 1. Authorizes a project 2. Gives Project Manager Authority 3. Issued by initiator or sponsor external to
project organization who has the authority to fund. 4. It is broad enough that it does not have to change as the project changes.
Project Charter Contain:
1. Requirements, wants and expectations
2. Business Needs
3. Project purpose or justification
4. Assigned PM and authority level
5. Stakeholder influences
6. Functional organization participation
7. Assumptions & Constraints
8. Business case and return on investment
9. Summary Budget
Inputs
1. Contract (if applicable)
2. SOW is a narrative description of products or services to be supplied by the project and indicates: Business need, Product
scope description, strategic plan. Created by customer/sponsor
3. Project doesn’t exist without Project Charter
4. Environmental Process Assets - Company Culture & Structure, Government or industry standards, infrastructure,
existing human resources, personal administration (Hire, Fire, performance), work authorization, Market place condition,
Stake holder risk tolerance, Commercial database, PMIS
5. Organizational Process Assets – Standards, Policies, Standard Product and Project Life Cycles, Quality policies &
procedure, performance measurement criteria, Templates, Communication requirements, Project Closure Guidelines, Risk
Control procedure, Issue and Defect Management Procedure, Change Control Procedure, Procedure for Approving &
issuing work authorization. It also include Process Measurement database, project files, Historical information & Lessons
learned, Configuration management database, financial database containing labor hours, costs & budgets.
Tools and Techniques
PMIS
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Expert Judgement
Project Selection Methods Two categories used are Benefit Measurement (comparative approach) and Constrained
Optimization (mathematical approach).
1. Benefit Measurement Methods (Comparative Approach)
1. Scoring Models
2. Benefit Contributions
3. Murder board – Panel of people who try to shoot down a new project idea.
4. Peer Review
5. Economic Models
1. Benefit Cost Ratio 2. Cash Flow 3.Internal Return Rate 4. Preset Value (PV) and net present value (NPV)
5.Opportunity Cost 6.Discounted Cash Flow 7. Return on Investment
2. Constrained Optimization Methods (Mathematical Models)
1. Linear 2. Nonlinear 3. Dynamic 4. Integer 5. Multiple Objective Programming
Preliminary Project Scope Statement Contain:
1. Project & Product Objectives 2. Requirements & Characteristics 3.Acceptance Criteria 4.Boundaries
5.Requirements and Deliverables 6.Constaints 7.Assumptions 8.Project Organization 9.Initial Defined
Risks 10.Schedule Milestone 11.Initial WBS 12.Order of Magnitude Cost Estimate 13. Configuration
Management Requirements 14 approval requirements
It is developed based on information from the sponsor or initiator. In general is contains all management plan and performance
measurement baselines. It should be BARF (bought into, approved, realistic, formal)
Project Management Plan – It defines how project is executed, monitored and controlled and Closed. PMP can be either
summary level or detailed and can be composed of one or more subsidiary plans and other components. It contains following
management plans
1. Scope 2.Schedule 3.Cost 4.Quality 5.Risk 6.Communication 7.Procurement 8.Schedule Baseline
9.Process improvement Plan 10.Staffing 11.Mile Stone list 12. Resource Calendar 13.Cost Baseline
14.Quality Baseline 15.Risk Register 16 Contract 17 Risk Response 18 Change Control
Configuration Management (Tool) – It is a sub system of overall project management information system. It is a means of
monitoring and controlling emerging project scope against the scope baseline; its purpose is to control change throughout the
project. It is any documented procedures used to apply technical and administrative direction and surveillance to audit the
items and system to verify conformance requirements. It documents the physical characteristics of formal project documents
and steps required to control changes to them (e.g. would be used by a customer who wishes to expand the project scope after
the performance measurement baseline has been established). When more than one individual has sign a Charter, you have to
be concerned with competing needs and requirements impacting your efforts on configuration management.
It is designed in the planning process group and used in the ICC process
Configuration Management Activities – 1.Configuration Identification 2.Configuration Status Accounting 3.Configuration
Verification and auditing
Change Control Board – A group of stakeholders responsible for reviewing, approving and rejecting the changes to the
project.
Change Control System – It is a collection of formal documented procedures that define how project deliverables and
documentation are controlled, changed and approved. It is a subsystem of configuration management. It must also include
procedures to handle changes that may be approved without prior review (e.g. result of an emergency). CMS includes
Change Control System.
Integrated Change Control – It is performed from project inception thru completion. Here all recommendations for
changes, CA, PA and defect repairs are evaluated and either approved or rejected. It includes:
1. Identifying that a change needs to occur or has occurred
2. Make sure only approved changes are implemented
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3. Reviewing and approving requested changes
4. Managing approved changes as and when they occur and regulating them
5. Maintain integrity of baseline
6. Review and approve all recommended corrective and preventive actions
7. Controlling and updating scope, cost, budget, schedule and quality
8. Documenting impact of requested changes
9. Validating defect repair
Changes - The best method to control changes on the project is to look for sources of change. The best method to deal with
changes is to direct the changes to the Change Control Board. Changes to project charter from sponsor and other signatories.
Project Manager has authority to approve some change requests. He is given authority to approve changes in emergency
situations.
Result of Monitoring & Control are recommended changes to the project as well as recommended corrective actions,
preventive actions and defect repairs.
Work Authorization System: system for authorizing the work-notifying team members or contractors that they may begin
work on a project work package.
Work performance Information: includes schedule progress, deliverables completion status, schedule, extend to which
quality standards are met, costs authorized and incurred, estimates to complete, % complete, LLs, Resource utilization details.
Primarily status reports on work progress.
Baselines can be for scope, schedule, cost, quality, resource, technical performance baselines. Scope baseline includes the
WBS, Project scope statement and WBS dictionary. Projects that deviate far from their baselines should have their risk
management process reviewed. Should be changed for all implemented changes. Sometimes, certain classification of changes
gets automatic approval on a project and do not need Change Control Board approval.
Project Execution – Although the products, services or results of the project are frequently in the form of tangible deliverables
such as building, road or software, intangible deliverables such as training is also provided.
Schedule Change Control System – can include the paper, systems and approvals for authorizing changes. The project
manager is normally not the approval authority, and not all the changes approved
Organization Process Assets – Includes an index & location of project documentation
• Formal Acceptance Documentation
• Project Files
• Closure Documents
• Historical information
Corrective Actions: are recommended in following processes
M & C project work, Scope verification, All control areas, Perform quality assurance (only area from executing process group),
Manage project team, Performance reporting, Contract Administration.
Mostly in executing and M&C process groups. Recommended corrective actions result in the creation of change required
which are approved or rejected in the ICC process and implemented in direct and manage project execution process.
Preventive action: deals with anticipated or possible deviation from the performance baselines.
Recommended PA are output of M&C project work, Perform quality control, Manage project team, RMC
Defect Repair: another work for rework and is necessary when a component of the project work does not meet its
specification. Discovered during Quality Management process and formed into change request during M&C, these changes are
dealt in ICC.
They are output of M&C and perform quality control
Process for making changes: PM should Prevent Root cause of change
1. Evaluate impact with triple constraint
2. Create options
3. Get internal buy in
4. Get customer buy in
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Close project:
Administrative Closure: happens ones to close the project or each phases of the project.
Contract Closure: happens to close each contract. Involves both product verification and administrative closure.
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Chapter 5 – SCOPE Management
SCOPE Pack Dynamite
With Verified Care –
(PDWVC)
Scope Planning Creating a project scope
management plan that
documents how the project
scope will be defined,
verified, controlled and
how the work breakdown
structure will be created
and defined.
1. Project charter
2. Preliminary Project Scope
Statement
factors
1. Expert Judgment
2. Templates, forms,
standards
1. Project Scope Management Plan
Scope Definition Developing a detailed
project scope statement as
the basis for future project
decisions.
1. Project charter
2. Preliminary Project Scope
Statement
3. Project Scope Management
Plan
5. Approved Change requests
1. Product analysis
2. Stakeholder analysis
3. Alternatives Identification
4. Expert Judgment
1. Project Scope Statement
2. Project Scope Management plan
(updates)
3. Requested changes
Create WBS Subdividing the major
project deliverables and
project work into smaller
more manageable
components
Plan
1. Work Breakdown
Structure Templates
2. Decomposition
(Updates)
2. Project Scope Management plan
(updates)
3. Scope baseline
4. Work Breakdown Structure
5. WBS dictionary
Scope Verification Formalizing acceptance of
the completed project
deliverables.
Plan
3. WBS dictionary
4. Deliverables
1. Inspection 1. Accepted deliverables
Scope Control Controlling changes to the
project scope.
2. Project Scope management plan
3. Work breakdown structure
4. WBS dictionary
5. Work Performance information
6. Performance reports
1. Variance analysis
2. Re planning
3. Change Control system
4. Configuration
Management system
(updates)
2. Scope Baseline (updates)
3. Work Breakdown Structure
(updates)
4. WBS Dictionary (updates)
5. Project Management plan
(updates)
(Updates)
7. Recommended Corrective action
Project Scope Management - processes required to define what work is required and ensure that the project includes only that
work required to complete the project. Involves managing both product scope and project scope. Processes outlined are used to
manager the project scope only.
Project Scope Management Plan - Provides guidance on how project scope will be defined, documented, verified, managed
and controlled by project management team. It includes
1. Scope definition: A process to prepare detailed project scope statement based on preliminary project scope statement
2. Create WBS: A process that enables creation of WBS also establishes how WBS will be maintained and approved
3. Scope Verification: How formal verification and acceptance of the completed project deliverables will be obtained
4. Scope Control: A process to control changes to project scope, it is directly linked to integrated change control
Project Scope - the work that must be done in order to deliver a product, services or result of the project; completion is
measured against the project plan. It includes meetings, reports, analysis and all the other parts of PM.
Product Scope - features and functions that are to be included in a product; completion is measured against the Product
requirements. It can be supplied as a result of a previous project to determine the requirements.
Design Scope – contain the detailed project requirements (used for FP contract).
Gold plating is not an approved PMI practice.
Scope Baseline – Approved detailed 1.project Scope statement, 2.WBS and 3.WBS dictionary.
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Scope Definition – subdividing major project deliverables. Primarily concerns with what is and is not included in the project.
It involves using prelim scope statement and fleshing it to include all needs of the stakeholders, Scope constraints and
assumptions.
All the processes of scope management results in change requests.
TOOLS
Stakeholder Analysis: Stakeholder influences and interests and document their needs, wants and expectations for
requirements.
Product Analysis: methods for translating project objective into tangible deliverables and req. Product breakdown, system
analysis, system engineering, value engineering and functional analysis.
Alternative Analysis: tech used to generate different approaches to execute and perform the work of the project
Project Scope statement: describe in detail the project’s deliverable and the work required to create those deliverables.
Provides common understanding of the project scope among all stakeholders and describe project’s major objective. It also
provides the scope baseline.
Scope Statement Contains – 1.Project Objectives 2.Product Scope Description 3.Project Requirement 4.Project Boundaries
5.Project Deliverables 6.Product Acceptance Criteria 7. Constraints 8.Assumptions 9.Initial Project Organization 10.Initial
identified risks 11.Schedule Milestones 12.Fund Limitation 13.Cost Estimate 14.Project Configuration Management
Requirements 15.Specifications 16.Approval Requirements
.Break Down Structures
1. Work Break Down Structure (WBS)
2. Organizational Breakdown Structure (OBS)
3. Resource Breakdown Structure (RBS)
4. Risk Breakdown Structure (RBS)
5. Bill of Materials (BOM) – Hierarchical tabulation of physical assemblies, subassemblies & components needed to
fabricate a manufactured product.
CREATE WBS
WBS - subdividing project deliverables into smaller, more manageable components. It is a deliverable-oriented grouping of
project elements that organizes and defines the total scope of the project. It is a communication tool and it describes what needs
to be done and what skills are required. Anything missing in the WBS should be added. The WBS is created by the team (helps
to get buy-in) and it is used to make certain that all the work is covered. It provides a basis for estimating the project and helps
to organize the work. Its purpose is to include the total project scope of all the work that must be done to complete the project.
The 1st
level should be the project life-cycle (not product). Defines the project’s scope baseline. Include only work needed to
create deliverables. Divided further to get work packages.
WBS is foundation of the project as everything that occurs in the planning process group after the creation of the WBS is
directly related to the WBS. Ex risks, assignment, estimation, activity list, schedule, budget, network control.
The 3 most common types of WBS are system/sub systems, life-cycle phasing and organizational.
Benefits of WBS
1. Prevent work slipping thru the crack.
2. Provides the team with an understanding of where their pieces fit into the overall Project Management Process.
3. and gives them an indication of the impact of their work on the project as a whole
4. facilitates communication among team member and other stakeholders
5. provides basis and proof for all kind of estimates
6. help in team building
WBS in short is
1. is a graphical picture of hierarchy of the project components
2. if it not in WBS then it is not part of the project
3. should exist for all project
4. does not show dependencies
Decomposition - (1st level – Project lifecycle (for IT design, code, test, install), 2nd
level – Deliverables (Break down till cost
estimates can be done, verify decomposition correctness) ) lowest level of the WBS may be referred to as work packages.
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Work not in the WBS is outside the scope of the project. WBS is a tool to do decomposition. Subdividing project work
packages into smaller, more manageable components (activities/action steps). The heuristic (rule of thumb) used in project
decomposition is 80 hours (work packages).
Work Package - deliverable at the lowest level of WBS. They are control points in the work packages and are used for task
assignments, cost and schedule estimates, risk identifications etc. They are further divided into schedule activities.
Control account – one level above the Work Package, in large projects costs are estimated at this level.
WBS Dictionary – Defines each item in the WBS, includes info such as a number identifier, control account for cost budgets,
Statement of work (SOW) to be done, person responsible/staff assignments and schedule milestone. It helps to reduce Scope
Creep, increases understanding and control and inspect the on going work.
WBS dictionary can be used as a part of Work Authorization system to inform team members of when their work package is
going to start, schedule milestones and other info.
Scope Verification – to verify that the work done satisfies the scope of the project. It must be done at the end of each phase of
project lifecycle to verify phase deliverables and in M&C. A similar activity during closure process is Product Verification (is
for complete product) but scope verification (for deliverables/components) happens in M&C. The review at the end of the
project phase is called phase exit, stage gate, or kill point.
SV Checks the work against the PMP and project scope mgmt plan, WBS and WBS dictionary and then meeting the customer
to gain formal acceptance of deliverables.
Scope Verification is normally done after quality control which checks for correctness of work based on quality requirements
and scope verification focuses on customer acceptance but these two processes can be performed in parallel.
Alternative way to describe SV, Inspection, Reviews, Product Reviews, Audits and Walkthroughs, sign off etc
SCOPE CONTROL: focuses on changes due to scope control and changes on scope due to other changes. All requested
changes passes thru ICC
1. have clear definition of scope
2. measure scope performance against scope baseline
3. determine if any update to PMP or scope management plan needed.
Scope Creep – Uncontrolled changes are often referred as project scope creep.
Variance Analysis – Project performance is measurements are used to assess the magnitude of variation. It includes finding the
cause of variation relative to the scope baseline.
Rolling Wave Planning – The Project Management team usually waits until the deliverable or subproject is clarified so the
details of the WBS can be developed. This is referred as rolling wave planning. So Work to be performed in the near future is
planned to the low level of the WBS, where as work to be performed far into the future can be planned at the relatively high
level of the WBS
Management by Objective (MBO) – determining company’s objective and how the project fits into them. MBO focuses on
the goals of an activity rather than the activity itself (manager is responsible for results rather than performing certain
activities)
Stakeholder Management – the project manager must identify the stakeholders, determine their needs and expectations, then
manage and influence expectations to ensure project success. Project success depends primarily on customer satisfaction.
1. Identify all of them
2. Determine all of their requirements
3. Determine their expectations
4. Communicate with them
5. Manage their influence
The principal sources of project failure are organizational factors, poorly identified customer needs, inadequate specified
project requirements, and poor planning and control.
Most Change Requests are the result of
1. An external event
2. An error or omission in defining the scope of the product
3. An error or omission in defining the scope of the project
4. A value-adding change
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A Change Request is the most effective way of handling the disconnect between what users actually want and what
management thinks they want. The project manager’s role related to project change is to influence the factors that affect
change. He should ask for a change order and look for impacts to the triple constraint. Scope Changes on project can be
minimized by spending more time developing the scope baseline.
If there is enough reserve to accommodate a change then it should be handled as a risk management process, the Project
Manager can approve the change (we are paid to manage the scope completion within our budget and reserves)
End of phase reviews happens at the end of the phase and is same as administrative closure at the end of the project
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Chapter 6 – TIME Management
TIME DSRDD
C
Activity Definition Identifying the specific
schedule activities that
need be performed to
produce the various project
deliverables
factors
6. WBS dictionary
1. Decomposition
2. Templates
3. Rolling wave planning
4. Planning component
5. Expert Judgment
1. Activity List
2. Activity Attributes
3. Milestone list
4. Request Changes
Activity Sequencing Identifying and
documenting dependencies
among schedule activities
2. Activity list
4. Milestone list
1. PDM
2. ADM
3. Schedule Network
templates
4. Dependency
determination
5. Applying leads and lags
1. Project Schedule Network
diagrams
2. Activity list (updates)
3. Activity attributes (updates)
Activity Resource
Estimating
Estimating the type and
quantities of resources
required to perform each
schedule activity
factors
4. Activity list
6. Resource Availability
1. Bottom-up estimating
2. Alternatives Analysis
3. Published estimated data
Software
5. Expert Judgment
1. Activity resource requirements
3. Resource calendar (updates)
4. Resource Breakdown Structure
Activity Duration
Estimating
Estimating the number of
work periods that will be
needed to complete each
schedule activities.
factors
.Risk register
.Activity Cost estimates
5. Activity list
7. Activity Resource requirements
8. Resource Calendar
1. Analogous estimating
2. Parametric estimating
3. Three-point estimates
4. Reserve Analysis
5. Expert judgment
1. Activity Duration estimates
Schedule
Development
Analyzing activity
sequences, durations,
resource requirements, and
schedule constraints to
create the project schedule.
factors
. Risk register
4. Activity list
6. Project Schedule network
diagrams
7. Activity Resource requirements
8. Resource Calendars
9. Activity duration estimates
1. Schedule Network
analysis
2. Critical path method
3. Schedule Compression
4. What-if scenario analysis
5. Resource leveling
6. Critical chain method
7. Project management
software
8. Applying calendars
9. Adjusting leads and lags
10. Schedule model
1. Project schedule
2. Schedule model data
3. Schedule baseline
4. Resource requirements (updates)
6. Project calendar (updates)
(updates)
.Schedule Management Plan
(updates)
Schedule Control Controlling changes to the
project schedule.
1. Schedule management plan
2. Schedule baseline
1. Progress Reporting
2. Schedule change control
system
3. Performance
measurement
4. Project management
software
5. Variance analysis
6. Schedule comparison bar
charts
1. Schedule model data (updates)
2. Schedule baseline (updates)
3. Activity list (updates)
4. Activity Attributes (updates)
5. Performance measurements
7. Recommended Corrective
actions
(updates)
(updates)
Project Time Management - processes required to ensure timely completion of the project
Time Management – In small projects Activity Definition, Sequencing, Resource Estimation, Duration Estimation and
Schedule development are so tightly linked that they are viewed as single process.
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Activity Definition – involves identifying and documenting the work that is planned to be performed. Here work packages are
planned (decomposed) into schedule activities to provide basis for estimating, scheduling, executing, and monitoring and
controlling the project work.
Its final output is schedule activity where as final output is deliverable in create WBS process.
It is done by the project team members responsible for the work packages.
Planning Component (TT used in Activity Definition)
1. Control account: above work package and below WBS. All the work effort performed within a control account is
documented in a “control account plan”
2. Planning component: above work package but below control account
Decomposition (TT used in Activity Definition)
1. Involves sub dividing the Work Packages into smaller components called schedule activities.
2. Activity Definition output is schedule activities not Deliverables (Create WBS output is Deliverables)
3. Activity list, WBS and WBS dictionary can be developed either sequentially or concurrently.
4. Performed by team members responsible for the work package.
Activity List (output of activity definition)
• Includes all schedule activity that is required as part of the project scope
• It includes the activity identifier and scope of work description for each schedule activity in sufficient detail.
• It is used in schedule model and is part of PMP
• Schedule Activity’s scope of work can be in physical terms such as linear feet of pipe or lines of computer program.
Schedule Activity are discrete components of the project schedule but are not components of the WBS
Activity Attributes (output) – for each SA contains Activity identifier, activity Code, Activity Description, Predecessor
Activities, Successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints and
assumptions, personal responsible for, geographical area, level of effort,
Milestone (input) – Can be mandatory or optional, it a component of PMP, included in SS and WBSD and used in schedule
model.
Activity Sequencing involves identifying and documenting the logical relationship among the schedule activities.
Tool:
Arrow Diagramming Method (AOA): PERT and CPM focuses on float duration, to determine which activities have the least
scheduling flexibility. Only Show finish-to-start relationship. Used by CPM
Precedence Diagram Method (AON): Represents improvement to PERT and CPM by adding lag relationships to activities
[Start to Start; Start to Finish; Finish to Start; Finish to Finish]. Work is done during activity. Arrow indicates dependency.
No dummy, its used by most softwares.
Dependencies:
• Mandatory or Hard logic: Often involve physical or technological limitations (based on the nature of work being
done)
• Discretionary: may also be called preferred logic, preferential logic, or soft logic. Soft: desirable and customary
(based on experience). Preferential: preferred or mandated by a customer (also, need of the project sponsor) Defined
by PM Team. It is documented so that can be exploited for the schedule compression. All above are based on past
experience
• External: Input needed from another project or source
Apply Leads and Lags – Lead allows acceleration of the successor activity, A lag direct a delay in Successor activity.
Activity Resource Estimation – Identifies when and what resources (person, equipment or material) required for a schedule
activity and what quantities of each resources will be available. It is closely coordinated with Cost estimating process.
Schedule Management Plan (Input) – Development of Schedule Management Plan is part of Develop Project Management
Plan Process. SMP is a subsidiary plan of PMP and may formal or informal, highly detailed or broadly framed depending on
the project. This plan sets the format and establishes criteria for developing and controlling the project schedule.
Bottom Up Estimation (TT of Resource Estimation) – Estimation is done for lower level items and then aggregated.
Output: Activity resource requirements, Resource Calendar(update), RBS –it is a hierarchical structure of resources by
category & type.
Activity – consumes time (eg testing)
Events – specified accomplishment / does not consume time (eg tested)
Activity Duration Estimate – requires to estimate amount of work effort required, the assumed amount of resources to be
applied and the number of work periods needed to complete the schedule activity is determined.
Resource Calendar (Input) includes availability, capability and skills of human resources.
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TT for Activity Duration Estimation
1. Analogous Estimation – Using actual duration of previous similar schedule activity. It is at the project level,
generally given to PM from Management or Sponsor; uses historical information and Expert Judgment and it is a form
of Top Down estimate.
2. Parametric Estimation – Quantity of Work * Productivity Rate - 1.Regression Analysis (Scatter Diagram)
2.Learning Curve. Results of Parametric Estimation can become heuristics. It is based on historical records.
3. Three Point Estimates – Program Evaluation and Review Technique (PERT) Three-Point Estimate = (O + 4M +
P)/6 Where O is Optimistic, M is Most likely and P is Pessimistic standard deviation = (P - O)/6 variance = standard
deviation2
(To add standard deviations: convert to variance then add; take the square root of the sum). Best method
when you have no historical data for a similar task. Result is the 50% point (mean).The probability of completing a
project at or later than its expected time is 50%
4. Reserve Analysis: Contingency reserve (known unknown) is for remaining risk after risk response planning and
management reserve (unknown- unknown) is any extra amount of funds to be set aside to cover unforeseen risk. Cost
baseline will include contingency reserve and cost budget will include management reserve. Contingency reserve is
created as a part of contingency plan and used when identified (residual) risk as a part of active acceptance strategy,
occurs.
5. Expert Judgment time reserve, Contingency Reserve or buffers as recognition of schedule risk. They can be % of the
estimates.
Graphical Evaluation and Review Technique (GERT)—allows for probabilistic treatment of both network logic and activity
duration estimates. It is a form of ADM (A Network Drawing Method) that allows loops between activities. The easiest
example is when you have an activity to design a component and then test it. A network diagram drawing method that allows
loops between tasks. It is a method of sequencing (e.g. a project requires redesign after completion of testing)
PM Role on estimating
1. Provide team with enough info to estimate
2. Set accuracy level for estimates
3. Do a sanity check
4. Prevent padding
5. Formulate reserve
6. Make sure assumption are recorded
Schedule development: difference between time estimate and schedule is that the schedule is calendar based.
Imposed Dates – Imposed dates in Scope Statement (I/P to Schedule Development Process) restrict the start or finish date.
Schedule Network Analysis (TT for Schedule Development)
1. Critical Path Method – Calculate Project Duration, Critical path length and Float. Critical path can have 0 or
negative total float. Uses only one time estimates. Doesn’t consider risk as important as cost so it focuses on
controlling cost and leaving schedule flexible. Uses only ADM (AOA) diagram
2. Schedule Compression – Crashing (Additional Resources) and Fast Tracking (Parallel)
3. What if Scenario – Monte Carlo Analysis in which a distribution of possible activity duration is defined for each
schedule activity and used to calculate a distribution of possible outcome for the total project. It helps to assess
feasibility of the project schedule under adverse condition and in preparing contingency and response plans to
overcome or mitigate the impact.
4. Applying calendars: identifying periods when work is allowed. Project calendar (affects all project activities like
snowfall season no work can be planned) and Resource calendar affect a specific resource or category or resources
like shift timings, planned vacations)
5. Schedule Compression Methods – occurs after activity duration estimating and before finalizing the schedule.
Include Crashing – when you are worried about time, not so much about costs. Fast Track – activities that are done
in sequence are done in parallel, involve increases risk and rework, it is done on discretionary dependencies. Should
fast track tasks on the critical path (float = 0) in order to save time. Re-estimate should be done by reviewing risks.
6. Resource Leveling – Applied after Critical Path Method, Keep resource usage at constant level. Allows you to level
the peaks and valleys of resource use from one month to another. Also know as resource based method and resource
constrained schedule and produces resource limited schedule. Often results in a project duration that is longer than the
preliminary schedule. Resource reallocation from non-critical to critical path activities is a common way to bring the
schedule back, or as close as possible, to the originally intended overall duration. So 1. Schedule can slip 2. Cost
increase. Reverse Resource allocation scheduling: based on finite and critical project resource (end date), in this case
the resource is scheduled in reverse from the project ending date.
7. Critical Chain Method – deterministic and probabilistic approach. In lieu of managing the total float of network
paths, the critical chain method focuses on managing the buffer activity durations and the resources applied to planned
schedule activities.
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a. Project schedule network diagram is built using non conservative/most likely estimates with required
dependency and defines constraints. Each activity is schedule to occur as late as possible to meet end date.
b. Then Critical Path is calculate and
c. Then resource limited schedule is determined making a altered critical path.
d. Then add duration buffers that are non work schedule activities to maintain focus on the planned activity
durations. Think of them as reserves from risk response planning.
e. Then planned activities are schedule to their latest possible planned start and finish dates.
Float / Slack – 1.Free 2. Total. A negative slack on the critical path means that the project is behind schedule. Free Float –
amount of time a task can be delayed without delaying the early start of its successor. Total Float – amount of time that an
activity may be delayed from early start without delaying the project finish date
“Start no earlier than” & “Finish no later than” – Respectively #1 and #2 most popular date constraint in project
management software.
Monte Carlo Analysis - computer simulation of project outcomes using PERT estimates; result represented in S curve.
Provides the ability to compute the probability of completing a project on a specific day. Can also be used to assess feasibility
of schedule under adverse conditions (e,g., when a schedule constraint is identified)
Monte Carlo Analysis – 1. Probability of Completion and any specific day 2. Probability of Completion in amount of Cost
3.Probability of activity in critical path 4. Risk
Time Estimate – Non-Calendar Schedule – Calendar Based
Output Schedule development
Project network diagrams. Project network diagrams are schematic displays of the project’s activities and the logical
relationships (dependencies) among them.
Barchart (Gantt) 1. Weak Planning Tools 2. Good reporting tools 3. No Dependency Shown 4. No Resources shown
Hammock Activity – O/p of Schedule Development -> Bar Charts -> For Control and management communication,
the broader more comprehensive summary activity called Hammock Activity is used between milestones or across
multiple interdependent work packages.
Milestone Chart: Significant events; good for communicating status to top management.
Schedule development:
1. Work with stakeholder priorities
2. Look for alternative ways to complete the work
3. Look for impact on other projects
4. Meet with managers to negotiate for resources availability
5. Give a team to approve the schedule
6. Look at calendar estimates to see if they are feasible.
7. Compress the schedule
8. Adjust all the component of PMP
9. Simulate using monte carlo anal
10. Level resources
11. Conduct meetings and conversation to gain stakeholder and mgmt approval.
Schedule Control: part of ICC
1. Determining current status of the project schedule
2. Influencing the factors that create changes
3. Determining if schedule has changes
4. Managing actual changes as they occur
Schedule Baseline- the original, approved project schedule; should never be changed without approved Change request. Any
approved change should be documented in writing. Should be created at the beginning of the project and used during the
project to gauge (measure) overall project performance, not just schedule. The project Performance Measurement Baseline
should generally change only in response to a scope or deliverable change.
Schedule Change Control System – defines procedures for changing the project schedule and includes the documentation,
tracking systems, and approval levels required for authorizing schedule changes and part of Integrated Change Control
Process.
Fragment Network – Portions of project schedule network diagram are often referred to as a Sub network or Fragment
Network. Sub Network templates are useful when project has several identical or nearly identical deliverables.
Heuristics - rules of thumb
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Near Critical Path – Path is close in duration to critical path, the close it is the more RISK project has.
Variance - Plan minus Actual
Lag – waiting time between two tasks (negative lead)
Resource Planning
Tools
Responsibility Matrix Identify who does what at what time/phase of the project,
Resource Spreadsheet Quantifies how much work is needed from each resource during each time period
Resource Gantt Chart Identify the periods of time (e.g. calendar date) when a particular resource is working on a particular
task
Resource Histogram
(Resource Loading
Chart)
Vertical bar chart showing the total number of resources needed during each time period
Progress Report – 50/50, 20/80, 0/100 – An Activity is considered X percent complete when it begins and gets credit of the
last 100-X percent only when it is completed.
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Chapter 7 – COST Management
COST EBC radio is free of
cost.
Cost Estimating Developing an
approximation of the costs
of the resources needed to
complete project activities
factors
5. WBS dictionary
Schedule Management Plan
Staffing Management Plan
Risk Register
1. Analogous estimating
2. Determine Resource Cost
Rates
3. Bottom-up estimating
4. Parametric estimating
Software
6. Vendor Bid analysis
7. Reserve analysis
8. Cost of Quality
1. Activity Cost estimates
2. Activity Cost Estimate
Supporting detail
4. Cost management plan (updates)
Cost Budgeting Aggregating the estimated
costs of individual
activities or work packages
to establish a cost baseline.
3. WBS dictionary
4. Activity Cost estimates
5. Activity Cost Estimate
Supporting detail
6. Project Schedule
7. Resource Calendars
8. Contract
9. Cost management plan
1. Cost aggregation
2. Reserve Analysis
3. Parametric Estimating
4. Funding Limit
reconciliation
1. Cost baseline
2. Project funding requirements
3. Cost management plan (updates)
Cost Control Influencing the factors that
create cost variances and
controlling changes to the
project budget.
1. Cost baseline
2. Project funding requirements
4. Work performance information
6. Project management plan
1. Cost change control
system
2. Performance
measurement Analysis
3. Forecasting
4. Project performance
reviews
software
6. Variance Measurement
1. Cost estimates (updates)
2. Cost baseline (updates)
3. Performance Measurements
4. Forecasted Completion
7. Organization process assets
(updates)
(updates)
Cost Estimating - Developing an approximation (estimate) of the costs of the resources needed to complete project activities.
Cost Budgeting – Aggregating the estimated costs of individual activities or work packages to complete project activities
Cost Control - Controlling changes to the project budget and influencing the factors that causes cost variance.
Life Cycle Costing – Broader view of Project Cost Management, which includes cost of resources needed to complete
schedule activities along with effect of cost decisions on using, maintaining & supporting the product, service or result of the
project. Life cycle costing together with value engineering can improve decision making and is used to reduce cost and
execution time.
Cost Management Plan - It is created as part of the Develop Project Management Plan process. It can establish
1. Precision Level ($100, $1000 etc)
2. Units of Measure (Staff hours/days/lump sum etc)
3. Organizational Procedure Links (Control Account, code or account number directly linked accounting system)
4. Control thresholds (Agreed amount of variation allowed)
5. Earned Value rules (1.Computation Formula 2.Earned Value Credit Criteria 3.WBS Level)
6. Reporting Formats
7. Process descriptions (Each of the three cost management Processes are documented.)
ROM – Accuracy of project estimate will increase as it progresses, project at initial stages can have rough order of magnitude
(ROM) in the range of –50 to +100% later it will narrow to a range of definite estimate –10 to +15%.
Cost Management Plan – (from Cost Estimating) the action taken by the project manager for all variances are described in the
Cost Management Plan.
Cost Estimating (Tools)
Analogous estimating - also called top-down estimating, means using the actual cost of a previous, similar project. It is given
by management as an expectation. It is less costly and less precise.
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Parametric modeling - mathematical model to predict project costs - per square foot of living space. It uses statistical
relationship between historical data and other variables to calculate cost estimate. It can produce higher levels of accuracy
depending on sophistication, resource quantity and cost data.
Bottom-up estimating - The cost of individual activities or work packages rolled up to get the estimate for whole component.
It is more accurate and costly.
Reserve Analysis – Contingency Reserve are estimated to be used at the discretion of the project maanger to deal with
anticipated but not certain events, called “known unknowns”. They are managed as a buffer kept at the end of the network path
for that group of activities. As the schedule progresses, reserve is measure by resource consumption by the schedule activities.
Management reserve: they are there to manage events called “unknown unknowns”. Since they are not distributed as budget to
project hence they are not used for calculating earned values metrics.
Cost of Quality: cost of quality initiative in an organization like training, audits etc, cost of poor quality: warranty cost,
claims
EV equals PV when the project is completed.
Cost Calculations - Costs are more practical to calculate at one level higher (Control Account) than work package level
Cost Budgeting Tools and Techniques
Cost aggregation
Funding Limit Reconciliation – Customer/sponsor will set limits on disbursement of funds for the project. Funding Limit
Reconciliation will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures. It is
accomplished by placing imposed date constraints for some work packages and compressing the schedule to reduce the
estimated cost of the project. Conciliation happens for the cash flow of the project and with any cost constraint of the project.
Cost baseline (output)- The cost baseline is a time-phased budget that will be used to measure and monitor cost performance
on the project. It is shown as an S curve. The difference between maximum funding and the end of the cost baseline is
Management Reserve in the S curve.
Project Funding requirement (output)
Project Performance Reviews (TT of Cost Control) – 1.Variance Analysis 2.Trend Analysis 3.Earned Value Technique
Performance Measurement Analysis (TT of Cost Control) – PV, EV, AC, ETC, CV, SV, CPI, SPI
Benefit Cost Ratio Expected Revenues / Expected Costs. Measure benefits (payback) to costs; not just profits. The
higher the better (if rating over 1, the benefits are greater than the costs)
Internal Rate of Return Interest Rate which makes the PV of costs equal to PV of benefits
Payback Period Number of time periods up to the point where cumulative revenues exceeds cumulative costs.
Weakness in this approach is the lack of emphasis on the magnitude of the profitability. Does not
account for time value of money nor consider value benefits after payback.
Opportunity Cost Cost of choosing one alternative and therefore giving up the potential benefits of another
alternative: it is the value of the project not selected (lost opportunity).
Sunk Cost Expended costs which should be ignored when making decisions about whether to continue
investing in a project
Law of Diminishing
Returns
Straight Line
Depreciation
The point beyond which the marginal addition of resources does not provide a proportional
amount of utility. Same amount each time period (e.g. 10 – 10 – 10).
Types 1. Straight Line 2. Accelerated (1. Double Declining Balance 2. Sum of Years Digits)
Working Capital Current Assets - Current Liabilities
Value Analysis Cost reduction tool that considers whether function is really necessary and whether it can be
provided at a lower cost without degrading performance or quality. Finding the least expensive
way to do the scope of work.
Value Engineering Tool Tool for analyzing a design, determining its function, and assessing how to provide those
functions cost effectively.
50-50 Rule At beginning, charge 50% of its BCWS to the account. Charge remaining at completion.
Regression Analysis Statistical technique graphically represented on scatter diagram
Learning Curve Mathematically models the intuitive notion that the more times we do something, the faster we
will be able to perform
Variable Costs Costs rise directly with the size and scope of the project
Fixed Costs Costs do not change; non-recurring (e.g. project setup costs)
Direct Costs Incurred directly by a specific project. Project training to project team.
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Indirect Costs Part of the overall organization's cost of doing business and are shared by all projects. Usually
computed as a percentage of the direct costs. General and administrative cost, allocated to the
project by the project team as a cost of doing business.
Control accounts Represent the basic level at which project performance is measured and reported. The purpose of
control accounts is to monitor and report on project performance.
Cost Change Control
Systems
Documented in the cost management plan, defines the procedures of the cost baseline change.
Includes the documentation, tracking systems, and approval levels needed to authorize a change
and integrated with the integrated change control process.
Operating profit Amount of money earned: Revenue – direct costs
Discounted cash-flow
approach
Present value method determines the net present value of all cash flow by discounting it by the
required rate of return.
Project Closeout (output to cost control) Process and procedures developed for the closing or canceling of
projects
Formulas
Expected Value
Present Value
Probability * Impact
FV / (1 + r)t
Cost Variance
CV
EV = BAC * (work completed/total work required)
EV – AC (BCWP – ACWP) Variance = planned – actual
Schedule Variance
SV
PV = BAC *(Total time passed /total schedule time)
EV – PV [BCWP – BCWS] (if <0; work completed is less than what was planned)
Cost Performance Index (CPI) EV/AC [BCWP / ACWP] I am getting ____ out of each dollar. (>1 good; <1 bad)
Schedule Performance Index
(SPI)
EV/PV [BCWP / BCWS] I am progressing at ____% of the rate originally planned
Estimate at Completion (EAC) BAC / CPI
AC+ETC (when original estimates are considered flawed)
AC+BAC-EV (when everything is OK and current variance will not occur in the future)
AC+((BAC-EV)/CPI) (when everything is OK and current variance will occur in the
future)
Estimate to Completion (ETC) EAC - AC or (BAC - EV) / CPI
Variance at Completion (VAC) BAC – EAC
% Spent AC/BAC
Cost Variance in % CV/EV
Schedule Variance in % SV/PV
To Complete Performance
Index (TCPI)
(BAC-EV)/(BAC – AC)
BCWS (PV) How much should be done? This is the performance measurement baseline.
BCWP (EV) How much work is done? (Progress) Budgeted cost of work performed. Value of the work
completed in terms of what you budgeted (your baseline)
ACWP (AC) How much did the “is done” work cost?
BAC Budget at Completion – How much is budgeted for the total job? BAC would change every
time there is a funded scope change approved for activity to be performed in the future.
EAC Based on project performance and risk quantification
ETC Estimate to Completion
CPI Cumulative CPI does not change by more than 10% once a project is approximately 20%
complete. The CPI provides a quick statistical forecast of final project costs.
AD Work Quantity(scope of the activity) / Production rate
Slope (crash cost - normal cost) / (crash time - normal time) ; if <0, as the time required for a
project/task decrease, the cost increase
Page 25 of 53

Chapter 8 – QUALITY Management
QUALITY The quality 3-Pack.
(3 PAC)
Quality Planning Identifying which quality
standards are relevant to
the project and determining
how to satisfy them.
factors
1. Cost-Benefit analysis
2. Benchmarking
3. Design of experiments
4. Cost of quality (COQ)
5. Additional quality
Planning Tools
1. Quality management plan
2. Quality Metrics
3. Quality Checklists
4. Process Improvement Plan
5. Quality Baseline
(updates)
Perform Quality
Assurance
Applying the planned
systematic quality activities
to ensure that project
employs all processes
needed to meet
requirements
2. Quality Metrics
3. Process Improvement Plan
4. Work performance Information
5. Quality control Measurements
7. Implemented Corrective
Actions
8. Implemented Preventive
Actions
9. Implemented Change Requests
10. Implemented Defect Repair
1. Quality planning tools
and techniques
2. Quality audits
3. Process analysis
4. Quality control tools and
techniques
2. Corrective Actions
(updates)
(updates)
Perform Quality
Control
Monitoring specific project
results to determine
whether they comply with
relevant quality standards
and identifying ways to
eliminate causes of
unsatisfactory performance.
2. Quality Metrics
3. Quality Checklists
5. Work performance Information
7. Deliverables
1. Cause and effect diagram
2. Control charts
3. Flow-charting
4. Histogram
5. Pareto chart
6. Run Chart
7. Scatter diagram
8. Statistical sampling
9. Inspection
10. Defect repair review
1. Quality Control Measurements
2. Validated Defect Repair
3. Quality Base line (updates)
Actions
Actions
(updates)
9. Validated deliverables
(updates)
Approach is compatible with ISO.
Quality Planning Identifying which quality standards are relevant to the project and determining how to satisfy them.
Although it usually occur during planning phase, it can occur during execution if there is a change.
Quality Assurance Applying the planned, systematic quality activities to ensure that the project employs all processes needed
to meet requirement. (e.g. evaluating overall project performance regularly)
Quality Control Monitoring specific project results to determine whether they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.
Project Quality Management – processes, procedures, policies required and followed to ensure that the project will satisfy the
needs for which it was undertaken.
Quality the degree to which a set of inherent characteristics fulfill requirements. Quality is planned, designed and built in – not
inspected in.
Input: Major input to quality management is to turn stakeholder needs wants and expectations into requirements through
Stakeholder analysis performed during Project Scope Management.
Grade is a category assigned to products or services having the same functional use but different technical characteristics. (a
limited number of features). Low Grade is not a problem - low quality (many bugs) is a problem
Precision – Consistency is value of repeated measurements having fine cluster and little scatter. Accuracy is a correctness of
how close is measured value to true value.
4 Pillars of Quality Management: customer satisfaction, Prevention over inspection, Management responsibility, Continuous
Improvement.
Quality - Is planned, designed and built in, not inspected in.
Joseph Juran – Quality - Fitness of Use
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Edward Deming – Quality Improvement – “14 steps to TQM”, Plan, Do, Check and Act
Philip Crosby – Quality – COPQ, “Conformance to requirements”, Advocated Prevention over inspection and “Zero
Effects”.
Action for ensuring Quality
1. Review the project charter and project scope statement
2. Ask customer what is his definition of quality
3. Identify any quality standards that are applicable to the project
4. Identify the desired levels of performance in the product
5. Identify level of control for the project
6. Set standard to reach to that level of performance
7. Decide what will you to to ensure processes are followed and standards are met
8. Meetings, reports, measurements, calculations.
9. Perform QA
10. Perform QC
Quality Planning: Key inputs are Quality Policy, rules, govt regulation, procedures, scope statement etc. Project Scope
statement provide info on major project deliverables, project objectives, requirements, thresholds and acceptance criteria. If
thresholds are exceeded it will require action from the project management team. Acceptance criteria include performance
requirement and essential condition that must be achieved before project deliverables are accepted. The result of deliverables
satisfying all acceptance criteria implies that the needs of the customer have been met and further formal acceptance during
scope verification validates that the acceptance criteria have been satisfied.
TT of Quality Planning:
1. Cost Benefit Analysis
2. Benchmarking: Comparing practices of other projects. Provides a standard to measure performance (time consuming).
(e.g. investigating quality standards that other companies are using)
3. Cost of quality - All work to ensure conformance to requirements + nonconformance to requirements. Like audit, training,
rework, COPQ. It is total cost incurred in preventing NCs to requirements, appraising the product etc. It includes
Prevention Costs (training), Appraisals Costs (inspection/testing) and Internal (scrap, rework)/External (warranty) Failure
costs
4. Additional Quality tools: like brainstorming, affinity diagram, force field analysis, nominal group techniques, matrix
diagrams, flowcharts, and prioritization matrices.
5. Design of experiments - is a statistical method that helps identify which factors might influence specific variables. A
statistical method to identify the factors which influences specific variables of a product/process and optimizes the
product/process. The aspect of this technique is to provide a statistical framework for systematically changing all the
important factors
Output of Quality planning
1. Quality Management Plan – it describes how the PM team will implement the performing organization’s quality policy.
Provides input to the overall project management plan and must address Quality Control, Quality Assurance and continues
process improvement for the project.
2. Process improvement Plan – Subsidiary of PMP, it details the steps for analyzing processes that will facilitate the
identification of waste and non value added activity, it includes: 1. Process boundaries (describes the purpose, start and end
of processes, input/output, owner and stakeholder) 2.Process configuration (flowchart of the process) 3.Process metric
(maintain control over status of the processes) 4.Targets for improved performance.
3. Quality Metrics – Defines what something is and how to measure it.
4. Quality Baseline: records quality objective of the project.
Perform Quality Assurance:
Inputs: QMP, Quality metrics, PIP, Work performance information, Quality control measurements.
TT: Quality Planning TT, Quality Audits, process anal, Quality Control TT
Quality Audit: objective is to identify ineffective policy, procedure, processes in use on the project, performed by
auditors and can confirm implementation of approved CRs, CA, PA and defect repairs. It also creates LLs
Process analysis: follows PIP to identify needed improvement and create preventive. It includes root cause analysis
Checklist: Used to verify that a set of required steps has been performed in quality control process
Perform Quality Control: involves monitoring specific project results to determine whether they comply with relevant QMS
and are in control and identify ways to eliminate the causes of unsatisfactory results.
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Project management team should have working knowledge of statistical quality control, especially sampling and probability to
help evaluate QC outputs.
Following pairs useful to know:
• Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer).
• Attribute Sampling Measures whether or not the results conform to specifications and Variable Sampling is the result on
a continuous scale that measures the degree of conformity.
• Variable Sampling Are characteristic you want to measure (size, shape, weight, etc…). An attribute is what you are
measuring. The result is rated on a continuous scale that measures the degree of conformity
• Special Cause Unusual event, Random Cause Normal process variation also know as common cause.
• Tolerance is the result is acceptable if it falls within the range specified by the tolerance. Control limit is the process in
control if the result falls within the control limits
Inputs: QMP, Quality Metric, Checklists, Work Performance Information, Deliverables.
TT: Seven basic tools of quality - C&E diagram, control chart, flowcharting, histogram, Pareto chart, run chart, scatter
diagram, Statistical Sampling, inspection, defect repair review.
Cause and Effect Diagram (Fishbone)
(1) Creative way to look at actual causes and potential causes of a problem
(2) Process of constructing helps stimulate thinking about an issue; helps to organize thoughts; generates discussion
(3) Used to explore a wide variety of topics
(4) Also known as Ishikawa or Fishbone diagram
Control Chart Help determine whether the project is out of control (in order to verify quality level). Used for bother
project and product life cycle processes such as schedule variance, volume and frequency of scope changes, and errors in
project documents.
“Out of Control” points that are beyond control limits or non-random still within the upper and lower control limit
(1) Upper and Lower Control Limit on a Control Chart Acceptable range of variation of a process, 3 sigma. [The
control limits are determined from data obtained from the process itself.]
(2) Assignable Causes Data point on a control chart that requires investigation
(3) Specification Limit Shows customer’s expectations for quality (on a control chart). Fixed by the customer
(4) Rule of Seven – Based on Heuristics, seven random data points grouped together in a series with in control limit. It
represents that they are not random and should be investigated.
Flow chart Help analyze how problems occurs, A diagramming technique shows how various elements of a system are
interrelated.
Histogram: it’s a bar chart showing a distribution of variables. Its helps identify the cause of problems in a process by the
shape and width of the distribution.
Pareto Diagram – Histogram, ordered freq of occurrence, take corrective action & 80 prob/20 causes. Used to identify
and evaluate NCs. Rand ordering is used to guide CA.
Run chart: shows the history and pattern of variation. It is a line graph that shows data points plotted in the order in
which they occur (over time). Trend analysis involves using mathematical techniques to forecast future outcomes based
on historical results.
Scatter Diagram: shows pattern of relationship between two variables.
Statistical sampling - Statistical sampling involves choosing part of a population of interest for inspection. Appropriate
sampling can reduce cost of quality.
Inspections- are variously called reviews, product reviews, audits, and walkthroughs. It is examination of a work product
to determine whether it conforms to standards. It is also used to validate defect repairs.
Defect Repair review.
Output
Validated Deliverables, recommend CA and PA, defect repair, Validated Defect Repair, quality baseline
(updates),
Quality Control Measurements – Results of QC activities that are fed back to QA to reevaluate and analyze the
quality standards and processes for performing organization.
PM is ultimately responsible for quality. Senior management has the overall responsibility and 85% of costs of quality are due
to them.
Operational definitions are also called metrics
Quality function deployment – provide better product definition and product development. Its main feature are to capture the
customer’s requirements, ensure cross functional teamwork, and link the main phases of product development.
Rework – action taken to bring a non-conforming item into compliance. Rework is a frequent cause of project overruns.
Page 28 of 53

Marginal Analysis – Optimal Quality is reached at the point where the increased revenue from improvement equal
incremental cost to secure it.
Gold Plating – Giving Customers extras, it is not recommended.
Quality Variable A quality characteristic that is measurable
Quality Attribute A quality characteristic that is classified as either conforming or nonconforming
Inspection Prevent errors from reaching the customer before delivery to the customer. Can be done throughout
product development.
Ishikawa Made popular Pareto Chart, Cause-and-Effect Diagram and Control Chart
Taguchi Method Is used to estimate the loss associated with controlling or failing to control process variability. If you
select good design parameters, you can produce products that are more forgiving and tolerant. The tool
helps determine the value or break-even point of improving a process to reduce variability.
ISO 9000 Provides a basic set of requirements for a quality system, without specifying the particulars for
implementation.
“Statistically
Independent”
Determine if problems are related before planning what to do about them, one can use scatter diagram
or regression anal to know that.
Mutually Exclusive If two events cannot both occur in a single trial
Conformance Non-Conformance (most accurate)
Planning Scrap
Training Rework and repair
Process Control Additional Material
Design and process validation Repairs and service
Test and evaluation Complaints
Quality audits Liability
Maintenance and calibration Product recalls
Inspection Field service
Field testing Expediting
Impact of Poor Quality Increased cost, Decreased productivity, Increased risk and uncertainty, Increased costs in
monitoring
Goal of the cost of quality program should be 3 - 5% of total value.
Cost of non-quality is estimated to be 12 - 20% of sales.
Two components of product availability are reliability and maintainability.
To effectively use statistical quality control, the project team should know the differences between special causes and
random causes.
Sampling and probability are the most important topics to understand in statistical process control.
TQM – Total Quality Management Philosophy encourages companies and their employees to focus on finding ways to
continuously improve quality of their business practices and products.
Normal distribution is used to measure variation
Standard Deviation – From 3 point Estimates = (P – O)/6
Six Sigma – Level of Quality 3 sigma is 2700 defects ppm. +/- 1
+-1 Standard deviation equal to 68.26%, +-2 = 95%, +-3 = 99.73, +-6 = 99.99996% which is percentage of occurrences to fall
between the two control limits.
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Chapter 9 - HUMAN RESOURCE Management
HUMAN
RESOURCE
PAD
Human Resource
Planning
Identifying and
documenting project roles,
responsibilities and
reporting relationships as
well as creating the staffing
management plan
Factors
.Activity resource requirements
1. Organization charts and
position descriptions
2. Networking
3. Organizational theory.
1. Roles and responsibilities
2. Project Organization charts
3. Staffing management plan
Acquire Project Team Obtaining the human
resources needed to
complete the project.
Factors
1. Pre-assignment
2. Negotiation
3. Acquisition
4. Virtual teams
1. Project Staff Assignments
(updates)
Develop Project Team Improving the
competencies and
interaction of team
members to enhance
project performance.
1. General management
skills
2. Training
3. Team-building activities
4. Ground rules
5. Co-location
6. Recognition and rewards
1. Team Performance assessment
Manage Project Team Assigning the tasks to the
team member, Tracking
team member performance,
providing feedback,
resolving issues, solving
the conflicts among the
team members, appraises
team member performance
and coordinating changes
to enhance the project
performance
6. Team Performance assessment
8. Performance Reports
1. Observation and
conversation
2. Project performance
appraisals
3. Conflict management
4. Issue log
Actions
Actions
(updates)
(updates)
Project management team is a subset of the project team and is responsible for project management activities. Can be divided
into administrative and behavioral decisions
HR Planning
I/P to HR Planning
Enterprise Environmental Factors – (I/P to HR Planning)
1. Organizational (which departments, their working arrangements, relationships)
2. Technical (Disciplines and Specialties needed)
3. Interpersonal (Formal or informal reporting relationships, culture and language differences etc)
4. Logistical (How much distance)
5. Political (Individual goals and agendas)
Constrains – Organizational Structure, Collective bargaining agreements, Economic Conditions.
Collective bargaining agreements: Contractual agreements with unions or other employee groups can require
certain roles or reporting relationships.
Organizational process assets- templates and Checklists
PMP: Activity Resource Requirement
TT
Organizational Charts and position description– Hierarchical, Matrix based and Text Oriented. Some assignments are
in risk, quality or communication plan. To ensure each work package has clear owner and each member has clear
understanding of their R&R.
Hierarchical
Organizational Breakdown Structure (OBS) - A depiction of the project organization arranged so as to relate
work packages to organization units.
RBS – Resource Break Down Structure is an hierarchical chart which shows break down of project by resource
types. RBS is helpful in tracking project costs, aligned with organizations accounting system, can contain categories
other than human resources.
RAM (Matrix based also called table) – Responsibility assignment Matrix, can be developed at various levels.
RACI (Responsible, Accountable, Consult and Inform). Show who does what (x=person, y=phase). The most
important feature of the RAM is the participatory development process involving all stakeholders
Page 30 of 53

Text oriented more detailed include responsibilities, authority, competencies and qualification also known as position
description and “Role responsibility authority forms”.
Networking: Informal interaction including proactive correspondence, luncheon etc. Concentrated Networking is useful at
the beginning of the project. Interpersonal Skills – Are also known as soft skills
O/P of HR Planning
Roles and Responsibilities Role, Authority, Responsibility and competency
Staff Management Plan – Describes when and how human resource requirements will be met. SMP can be updated
because of promotions, retirements, illness, performance issues and changing workloads. SMP contents:
1. Staff acquisition – internal or external or contract, same location or different, Cost etc
2. Timetable – Resource histogram is prepared, bars beyond the maximum available hours identify
need for resource leveling strategy.
3. Release criteria – Morale is improved if transitions are already planned.
4. Training Needs
5. Recognition and rewards
6. Compliance – With Government regulations
7. Safety
Project Organization Chart
Acquire Project team: improves the competencies and interaction of team members to enhance project performance. Includes
improving skill and feeling of trust and cohesiveness.
I/P : EE factors (availability, ability, experience, Interest, cost), OP assets, R&R, Project Org Chart, Staffing Mgmt Plan.
TT: Pre-assignment, Negotiation, Acquisition, Virtual teams
O/P: Project Staff Assignments, resource availability, SMP (update)
* Before creating final schedule “resource availability” has to be confirmed.
Develop Project Team: involves tacking team member performance, providing feedback, resolving issues and coordinating
changes to enhance project performance.
I/P : Project staff assignment, staffing management plan, resource availability
TT: General Mgmt Skills (Soft Skill), Training, Team Building activities, Ground rules, Co-location, R&R
O/P: Team Performance Assessment: Project team effectiveness is evaluated.
Manage Project Team: involves tracking team member performance providing feedback, resolving issues and coordinating
the changes to enhance project performance. Project management team observes team behavior, manages conflict, resolves
issues and coordinating changes to enhance project performance. Management of Project teams is complicated in Matrix
organization.
I/P: OP asset, Project Staff Assignments, R&R, Org Charts, Staff MP, Team Performance Assessment (for project teams), Work
Performance Information (for team member), Performance Reports (for projects).
TT: Observation and conversation, Project performance appraisals, conflict management (team members initially responsible
to resolve and later manager), Issue log.
O/P: Inputs to org performance appraisal, LLs,
Halo Effect – Tendency to rate high or low on all the factors due to the impression of a high or low rating on some specific
factor.
Five Stages of Team Development – Forming, Storming, Norming, Performing and Adjourning
Kickoff Meeting – Indirect Method to start team development. It should answer 1.Why am I here? 2.Who are you and your
expectations of me? 3. What is this team going to do? 4.How is the team going to do this work? 5.How do I fit into all this?
Lessons Learned from Manage Project Team –
1. Project organization charts, positions and Staff MP
2. Ground rules, conflict management techniques and recognitions
3. Procedures for Virtual teams, co-location, training and team building
4. Special skills and competencies by team members discovered
5. Issues and solutions
Role of Sponsor
1. During initiation: to provide financial resource, provide requirements, SOW, info for Prelim project scope statement,
dictates milestone, issue project charter, set priority between projects and triple constraints,
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2. Act as a protector of the project
3. During planning: May review WBS, supply initial risks, determine reporting needs, provide expert judgment, approve
PMP
4. During project executing and M&C: approve changes to project charter, enforce quality policy, resolve conflict
beyond PM, help evaluate tradeoffs between crashing, fast tracking and re-estimate, clarify scope questions, approve
or reject changes
5. provide formal acceptance of deliverables (if he is a customer)
Role Team member: completes the work in addition involve in determining WBS, estimates and its completion and deviation
from PMP.
Role of functional manager: individual who manages and owns the resources in a specific department and directs the
technical work. Approves PMP and final schedule, assigns resources, assist with team member performance.
Role of Project manager: Is in charge of the project not necessarily of the resources. May be technical expert, leads and direct
project plan development, determine and deliver quality level, create change control system, maintains control over the project,
accountable for project success and failure, integrates project components into a cohesive whole.
Leadership Styles
Autocratic PM makes decision without soliciting information from team
Consultative Intensive information solicited; PM makes decision
Consensus Team makes decision; open discussion and information gathering by team
Directing Telling other what to do
Facilitating Coordinating the input of others
Coaching Instructing others
Supporting Providing assistance along the way
Linear Responsibility Chart (LRC) – identifying responsibility, assignments by work packages and action required. Also
referred to as RAM.
Resources Histogram – often part of Staffing Management Plan; shows resource usage (eg staff hours) per time period (eg
week, month) of a specific job function.
Types of Power
Legitimate (Formal) Derived from formal position
Penalty (Coercive) Predicated on fear
Reward Involves positive reinforcement and ability to award something of value
Project often needs their own rewards system to affect employee performance. Used correctly, bring the
team’s goals and objectives in line with each other and with the project.
Expert Held in esteem because of special knowledge or skill (requires time). Earned of our own.
Referent Ability to influence others through charisma, personality, etc.
The best forms of power are generally Reward and Expert. Form of power by position are reward, penalty and formal
Reasons of Conflicts in Order of Frequency – 1. Schedule 2. Project Priorities 3. Resources 4. Technical Opinions 5.
Administrative Procedures 6. Cost 7. Personality
Conflict Management
Avoidance/Withdrawal
(Ignoring)
At least one party withdraws from conflict. Cool off period, could be lose/lose
Retreating from actual or potential disagreement; delaying (e.g. “Just document the problem”)
Competition/Forcing Exerting one’s viewpoint; a last resort [win/lose] (e.g. “Call the customer and demand that you
receive the approval today.”
Compromising Bargaining and searching for solutions; neither party wins but each gain some satisfaction. [Lose-
Lose Situation] this is very rarely a good way to resolve technical issues. Definite solution is
achieved in the end
Accommodation Opposite of Competition. One party meets other party need at expense of his own. Lose/Win
Collaborating Involves incorporating multiple ideas and viewpoints from people with different perspectives and
offers a good opportunity to learn from others (good when project is too important to be
Page 32 of 53

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