H.

HASHIM
Certified Associate in Project Management (CAPM)

CAPM NOTES 2022

CHAPTER 1: INTRODUCTION

1.1 Fundamental

Project:
• Temporary endeavour with a beginning and ending
• Create a unique product, service, and result
• Drive changes in the organization
• Enables business value creation

Project must:
• Unique
• Has defined time and budget
• Use limited resources
• Usually involves some risk
• Can have some changes during project management

Why Project Initiated:

• Market demand
• Strategic opportunity/ business need
• Social need
• Environment consideration
• Technology advanced
• Legal requirements

Project end when:

• Achieved project objective
• Project objective cannot be met
• Funding is exhausted or no longer available
• Need of project no longer available
• Resources no longer available
• Project terminated for legal cause

Project Benefit:
1. Tangible 2. Intangible
• Monetary assets • Reputation
• Stakeholder equality • Trademarks
• Utility/ fixture • Brand recognition
• Tool • Goodwill

Project Management – Application of knowledge, skills, and tools to project activity to meet the
project requirement

Project Management *Customer specification will

• Develop project plan answer the question what
• Manage project according to the plan customers want to deliver
• Deliver project by customer specification

Change in Project Management

• Need to study impact and cost
• Has resources to do new work?
• Any impact on quality
1.2 Relationship between Project, Program, Portfolio and Operation Management

Project:
• Temporary endeavour with a beginning and ending
• Create a unique product, service, and result
• Drive changes in the organization
• Enables business value creation

Program
• A group of related projects, subsidiary programs, and program activities
• Managed in a coordinated manner to obtain benefits not available from managing them
individually

Portfolio
• A collection of projects, programs, subsidiary portfolios, and operations
• Managed as a group to achieve strategic objectives.
• Portfolios are organized around business goals
• A whole company vision/business perspective

Operation Management
• Outside the scope of project management
• Concerned with ongoing production of goods/ services

1.3 Organisational Project Management (OPM)

The purpose of OPM:

• to ensure that the organization undertakes the right projects and allocates critical
resources appropriately.
• to ensure that all levels in the organization understand the strategic vision, the initiatives
that support the vision, the objectives, and the deliverables.

Portfolio Management
• Selecting the right program/ project
• Prioritizing the work
• Providing resources needed

Program Management
• Harmonizes program component
• Control interdependencies in order to realize specific benefit

Project Management
• Enable the achievement of organizational goal and objective
1.4 Uncertainty & Risk

Uncertainty
• Uncertainty is a condition from the lack of information, and this causes a possible event
called risk
• Uncertainty highest at initiation & progressively declines towards project closing

Progressive elaboration = Rolling wave Planning

• the project proceeds and later details become clearer.
• Work to be done in the near term is based on high level assumptions; also high level
milestones are set.

Fait Accompli (status quo) - something that has already happened or been decided before those
affected hear about it, leaving them with no option but to accept

Force Majeure is unforeseeable circumstances that prevent someone from fulfilling a contract.
Typical Force Majeure events include:
- natural causes (fire, storms, floods)
- governmental or societal actions (war, invasion, civil unrest, labor strikes)
- infrastructure failures (transportation, energy)

1.5 Project and Development Life Cycle

Project Life Cycle –

Product Life Cycle –

Project Planning –
Product Roadmap –
1.6 Project Phase-To-Phase Relationships
• Sequential – one after another, in series
• Overlapping – Phases running concurrently or in parallel
• Iterative – repeatable
Useful for undefined projects where the planning for the next phase occurs during the
current phase and will perform this planning again and enhance later when more
detailed requirements are received

Phase gate
• Stage gate, kill point, phase entrance to next, or phase exit
• held at the end of a phase, where a phase review (go, no-go decision) is conducted
• to assess the project performance against the project performance baseline
• The team verifies the deliverables, and the customer validates them

1.7 Type of Work Performance

• Work Performance Data is raw observations and measurements about the project’s
current status. scope, time, cost, quality, communication, risks, procurement.

• Work Performance Information compares the actual and planned values. Execution has
been done

• Work Performance Report generate decision, actions, awareness

1.8 Type of Action QA/ Manage Quality - Preventive action

Quality Control - Corrective action
• Preventive action Defect repair (replace when broken!)
• Corrective action -
• Defect repair - A component of corrective action which repairs the defect or nonconformity

1.9 Organizational Structure Types

1. Functional
• Group by area of specialization (account/ marketing/ IT)
• Process-related
• PM has not much power
Project Expeditor - like a staff assistant | cannot make or enforce decisions
Project Coordinator - Like project expediter but has some power to make
decisions

2. Project Oriented
Entire project is project
Collocated & 100% committed to project
All report to PM. No home

3. Matrix
Strong matrix – PM & management has full power
Balanced matrix – PM and functional manager share responsibilities
Weak matrix – like functional org

4. Hybrid – not specifically defined

5. Organic or simple – Flexi ble, People working side by side
1.10 Project Management Office (PMO)

Type of PMO
• Supportive
Provide a consultative role to projects by supplying templates, best practices, training,
access to information, and lessons learned from other projects
Serves as a project repository
Degree of control is low

• Controlling
Provide support to the project
Degree of control is moderate
Compliance may involve:
- Adoption of project management frameworks or methodologies
- Use of specific templates, forms, and tools; and
- Conformance to governance frameworks.

• Directive
Directly managing the projects
PM assigned by and report to the PMO
Degree of control is high.

Primary functions of PMO

• Managed shared resources across the project
• Identify n develop project management methodology, best practices and standards
• Coaching, mentoring, training, oversight
• Developing and Monitoring standards, policies, procedures and templates
• Coordinating communication across project
CHAPTER 2: PROJECT ENVIRONMENT

2.1 Organizational Culture

1. EEF:
• Outside Project (Outside control of the team)
• Inside and Outside Organisation
• Refer to condition

2. OPA:
• Outside Project, within organisation
• Plans, processes, policies, procedures, documentation, and knowledge bases

2.2 Kick-off Meeting

Goals:
• Establish project context
• Assist in team formation
• Ensure team alignment to the overall project vision

Activities:
• Defining a vision statement | Defining a team charter
• Assisting the customer/Product Owner with:
• User story writing
• Estimation of effort | Prioritization planning | Initial product backlog

Organizational culture, structure, and governance

Geographic distribution
Infrastructure
Internal
Resource availability
Information technology software
Employee capability.
Marketplace conditions
EEF
Social and cultural influences
Legal restrictions
Commercial databases
External
Academic research
Government or industry standard
Financial considerations
Physical environmental elements

Processes, policies, and procedures;

Organizational knowledge bases.
Lesson learned from previous project
Historical Information
OPA
Financial data repo
Lesson learned repo
Repositories
Issue and defect repo
Project files from previous project
CHAPTER 3: THE ROLE OF THE PROJECT MANAGER

Key characteristics of PM
• Knowledge – How much PM know about project
• Performance – What PM can do while applying PM knowledge
• Personal – attitude and leadership

• Technical project management (Ways of working)

- The knowledge/ skills, related to the specific project, The technical aspects of
performing one’s role.

• Leadership (Power Skill)

- The knowledge/ skills needed to guide, motivate, and direct a team

• Strategic and business management (Business Acumen)

- Knowledge of and expertise in the industry and organization that enhanced performance
and better delivers business outcomes.

Managing the project – Maintaining status quo and focusing on getting things right are both
managerial traits.

Project Manager
• One lead person (also a change agent)
• responsible for the team and managing (not doing) the project to achieve the project
objectives
• Center of communications and interactions among stakeholders
• Appointed early in the project and be able to select the project team
• Sensitive to social, economic, political, and business environments
- National, Organizational and Functional Cultures

Halo Effect
Assumption of a person who is good at technical is also good as a project manager. NOT TRUE!
CHAPTER 4: INTEGRATION MANAGEMENT

• Project Integration Management is specific to Project Manager

• This accountability cannot be delegated or transferred
• Other Knowledge areas may be managed by specialists
• Iterative and agile approaches promote the engagement of team members as local
domain experts in integration management
• This Knowledge Area combines the results from all other Knowledge Areas
• Project Manager may need to tailor the Project Life Cycle ( phases) and Development Life
Cycle (Predictive or Adaptive)

Tailoring
• Project lifecycle & development life cycle
• Management approach
• Knowledge management
• Change & governance
• Lessons learned
• Benefits

Agile
• Detailed product planning and delivery - project team, while PM handles integration
• Collaborative decision making & ensuring the team's ability to respond to changes

4.1 Develop Project Charter

Project Charter
• formally authorizes the existence of a project
• provides the project manager authority to apply organizational resources to project
activities

Inputs Project Charter contains:

• Business documents - BC • Project purpose
• Agreements • Measurable project objectives and related success criteria
• EEF, OPA • High level Requirements
• High level Project description
Tools & Techniques • High level Boundaries and key deliverables
• Overall project risk
• Expert judgment
• Summary Milestone schedule
• Data gathering • Pre approved financial resources
• Interpersonal and team skills • Key Stakeholder list
• Meetings • Project approval requirements
• Assigned project manager, responsibility, and authority
Outputs level
• Project charter • Name and authority of the sponsor or other person(s)
• Assumption log authorizing the project charter
4.2 Develop Project Management Plan

PMP - The process of defining, preparing, and coordinating all plan components and consolidating them
into an integrated project management plan

Baseline:
Scope baseline: WBS + WBS dictionary + Scope statement
Schedule baseline: approved version of the schedule model
Cost baseline: approved version of the time-phased project budget

Inputs
• Project charter
• Outputs from other processes
• EEF, OPA

Tools & Techniques

• Expert judgment
• Data gathering
• Interpersonal and team skills
• Meetings

Outputs
• Project management plan

4.3 Direct and Manage Project Work

Inputs
• PMP, PD
• Approved CR
• EEF, OPA

Tools & Techniques

• Expert judgment
• PMIS
• Meetings

Outputs
• Deliverables
• Work performance data
• Issue log
• Change requests
• PMP, PD updates
• OPA updates
4.4 Manage Project Knowledge

Types of knowledge
Explicit - Can be captured, written down and presented in documents and databases
Tacit - Knowledge in heads. less concrete and more difficult to document and measure.

Inputs
• PMP, PD
• Deliverables
• EEF, OPA

Tools & Techniques

• Expert judgment
• Knowledge management
• Information management
• Interpersonal and team skills

Outputs
• Lessons learned register
• PMP updates
• OPA updates

4.5 Monitor and Control Project Work

Inputs
• PMP, PD
• EEF, OPA
• Work performance information
• Agreements

Tools & Techniques

• Expert judgment

• Data analysis
Alternatives analysis
Cost benefit analysis – to determine best corrective action
Earned value analysis
Root cause analysis
Trend analysis – based on current performance information to forecast future need
Variance analysis

• Decision making (voting)

Unanimity - consensus among the entire group
Majority - consensus among the majority of the group
Plurality - you have multiple conflicting opinions and you allow the group to vote
for opinions. Whichever opinion gets most of the votes win the race.

• Meetings

Outputs
• Work performance reports
• Change requests
• PMP, PD
4.6 Perform Integrated Change Control

Inputs
• PMP, PD
• EEF, OPA
• Work performance reports
• Change requests

Tools & Techniques

• Expert judgment
• Change control tools

• Data analysis
Alternatives analysis
Cost benefit analysis

• Decision making
Voting
Autocratic
- one individual takes the responsibility making the decision for the entire group.

Multicriteria decision analysis

- uses a decision matrix to provide a systematic analytical approach

• Meetings

Outputs
• Approved change requests
• PMP & PD updates

4.7 Close Project or Phase

Administrative Closure: Finishing the project tasks so that there is no liability left behind

Inputs
• Project Charter
• PMP, PD
• Accepted deliverables
• Business documents
• Agreements
• Procurement documentation
• OPA

Tools & Techniques

• Expert judgment
•
• Data analysis
– Regression Analysis: to analyzes the interrelationships between different project
variables that contributed to the project outcomes to improve performance on future
projects.

• Meetings

Outputs
• PD, OPA updates
• Final product, service, or result transition
• Final report
Project Governance:
• Steering Committee
• Technical Committee
• Project Evaluation Committee
• Change Control Board (CCB)
• Audit (Project Management, Quality, etc.)

Project Compliance
• Appropriate government regulations
• Corporate policies
• Product and project quality
• Project risk

Project Endings

1. Extinction – meets its goals, completed and accepted by the stakeholders

2. Starvation – shifting priorities, reduced staffing or funding
3. Integration – re-assignment or re-deployment of resources in the organization, or
assigned to another project causing an end to the original project (like the resources
being hijacked to another project)
4. Addition / Inclusion –project becoming on-going operation or business process

CHAPTER 4.1 : CONFIGURATION MANAGEMENT

• is a tool used to manage changes to a product or service being produced
• as well as changes to any project documents
• collection of procedures used to track project artifacts and monitor and control changes to
these artifacts
CHAPTER 5: SCOPE MANAGEMENT

5.1 Plan Scope Management

Predictive life cycle –deliverables and scope are defined at the beginning of the project

Adaptive/ agile
• Detailed scope is defined and approved at the beginning of each iteration
• At the beginning: set the highest priority of the backlog list
• Each iteration process: Collect Requirements, Define Scope, and Create WBS
• Sponsor n customer continuously engaged
• Validate and Control scope at each iteration
• Requirement = backlog

Scope baseline = Scope statement + WBS +WBS Dictionary

Completion of project scope → against PMP

Completion of product scope →against product requirement

Project scope statement – scope, deliverables, assumption, and constraints

Inputs:
• Project charter
• PMP - Quality Mgt plan, PLC description, Development approach
• EEF, OPA

Tools and techniques:

• Expert judgment
• Data analysis - Alternatives analysis
• Meetings

Outputs:
• Scope management plan
• Requirements management plan

5.2 Collect Requirement

Input:
• Project charter
• PMP - Scope Mgt plan, Requirements Mgt plan, Stakeholder Engagement plan
• PD - Assumption log, LLR, SH register
• BC
• Agreements
• EEF, OPA

Tools and Technique:

1. Expert judgment

2. Data gathering - Brainstorming, Interviews, Focus groups, Questionnaires/ surveys,

Benchmarking

3. Data analysis - Document analysis

4. Decision making - Voting, Multicriteria decision analysis

5. Data representation techniques
• Affinity Diagram - numbers of ideas to be classified into groups for review and analysis.
• Mind Mapping - consolidates ideas created through individual brainstorming sessions

6. Interpersonal and team skills techniques

• Nominal group technique - enhances brainstorming with a voting process to rank the most
useful ideas for further brainstorming or for prioritization.
• Observation/conversation
• Facilitation

The situation that can use facilitation:

• Joint application design/development (JAD).
• used in the software development industry.
• Bring SME and development team to gather requirements and improve the software
development process.

• Quality function deployment (QFD).

• Used in the manufacturing industry
• helps determine critical characteristics for new product development.
• starts by collecting customer needs, also known as voice of the customer (VOC).
• Determine customer need → prioritize →establish goal for achieving

• User stories.
• short, textual descriptions of required functionality
• describe the stakeholder role, who benefits from the feature (role), what the stakeholder
needs to accomplish (goal), and the benefit to the stakeholder (motivation).

7. Context Diagram
• Is a scope model.
• Visually depict the product scope by showing a business system (process, equipment,
computer system, etc.), and how people and other systems (actors) interact
• inputs to the business system, the actor(s) providing the input,
the outputs from the business system, and the actor(s) receiving the output.

8. Prototype – to get early feedback on requirements by providing the model of expected results
Storyboarding – Prototype technique showing sequence through images and illustration

Output:
• Requirements documentation
• RTM - Links product requirements to the deliverables
- To make sure each requirement link with the business n project objective
5.3 Define Scope

Inputs:
• Project charter
• PMP - Scope Mgt plan
• PD - Assumption log, Requirement Doc, RR
• EEF, OPA

Tools and Technique:

• Expert judgment
• Data analysis - Alternatives analysis
• Decision making - Multicriteria decision analysis
• Interpersonal and team skills - Facilitation
• Product analysis

Outputs:
• Project Scope Statement
• PD Updates - Assumption log, Requirement Doc, RTM, SH register

5.4 Create WBS

Inputs:
• PMP – Scope Mgt Plan
• PD – Scope Statement, Requirement Document
• EEF, OPA

Tools and Technique:

Decomposition - dividing and subdividing the project scope and project deliverables into smaller

Top-down approach - use of organization-specific guidelines, and the use of WBS templates.
Bottom-up approach - used to group subcomponents.

WBS Component:
Level 0 – title/ Final deliverable
Level 1 – Control accounts
Level 2 – Planning Packages
Level 3 – Work Packages
100% rules – Include Project Management works

Control Account
• management control point
• include one or more planning packages
• decomposed later (rolling wave planning)
• provide structure or hierarchical summation of cost, schedule, and resources information

Planning package.
• A control account may include one or more planning packages.
• A planning package is a work breakdown structure component below the control account
and above the work package
• known work content but without detailed schedule activities.

Work package
• Work defined at the lowest level of the WBS for which cost, and duration can be
estimated and managed.

Output:
• Scope baseline = WBS + WBS dictionary + scope statement
• PD updates – Assumption Log, Requirement document
5.5 Validate Scope

Inputs: Outputs:
• PMP • Accepted deliverables
• PD • Work Performance Information
• Verified deliverables • CR
• Work Performance Data • PD updates

Tools and Technique:

• Inspection
• Decision making - voting

Scope verification → comparing deliverables to specification (not making any changes)

Validate scope process → to validate the deliverables meets customer needs (changes rarely
make on the spot)

Verified deliverables → Control quality process → check the correctness

5.6 Control Scope

• process of monitoring the status of the project and product scope and managing changes
to the scope baseline.
• performed throughout the project.

Inputs
• PMP & PD
• OPA
• Work performance data

Tool and Techniques:

Data analysis
• Variance analysis - compare actual and plan
• Trend analysis - Examines project performance over time to determine if performance is
improving or deteriorating.

Outputs:
• Work Performance Information
• CR
• PMP Updates
• PD updates
CHAPTER 6: SCHEDULE MANAGEMENT

Tailoring in schedule:
• Life cycle approach
• Resource availability
• Project Dimension
• Technology Support

6.1 Plan Schedule Management

Input:
• Project Charter
• PMP – Scope Plan, Development Approach
• EEF, OPA

Output: Schedule Management Plan:

• Project schedule model development
• Release and iteration length.
• Level of accuracy.
• Units of measure.
• Organizational procedures links.
• Project schedule model maintenance.
• Control thresholds. – monitoring schedule performance may be specified to indicate an
agreed-upon amount of variation to be allowed before some action needs to be taken
• Reporting formats.
• Rules of performance measurement. – EVM

Schedule Variance (SV) = Earned Value (EV) – Planned Value (PV)

SV + = ahead of schedule
SV - = behind schedule

SPI = EV/EP

SPI < 1 = ahead schedule

SPI > 1 = behind schedule

6.2 Define Activities

Input:
• PMP – Schedule Plan, Scope baseline
• EEF, OPA

Tools n Technique:
• Expert judgment
• Decomposition - WBS
• Rolling wave planning - the process of project planning in waves as the project proceeds
and later details become clearer. Work to be done in the near term is based on high level
assumptions; also, high level milestones are set.
• Meetings

Output
• PMP - Schedule baseline, Cost baseline
• PD - Activity list, Activity attribute, Milestone list, CR
6.3 Sequence Activity

Inputs:
• PMP – Schedule Plan, Scope baseline
• PD - Activity list, Activity attribute, Milestone list, Assumption Log
• EEF, OPA

Tools n technique:
1. Precedence diagramming method - used for constructing a schedule model in which
activities are represented by nodes and are graphically linked by one or more logical
relationships to show the sequence in which the activities are to be performed

Finish-to-start (FS) – Tak boleh start kalau tak finish

Finish-to-finish (FF) – Tak boleh finish kalau tak finish
Start-to-start (SS) – tak boleh start kalau tak start
Start-to-finish (SF) – tak boleh finish kalau tak start

Arrow Diagramming Method

• Only use finish to start
• Required dummy activity
• No loops or conditional branches

2. Dependency determination and integration

• Mandatory dependencies – physical limitation, hard logic, contract required
• Discretionary dependencies -defined by PM, best practices
• External dependencies – relationship between project and non project activities.
• Internal dependencies – inside project control, involve relationship between project
activities

3. Lead and lag – can advanced and can delay

4. PMIS

Outputs:
• Project schedule network diagrams
• PD updates

Define Activity – Identify & document Specific action to produce deliverables

Sequence Activity – Identify & document dependencies among activity

RULE-OF-THUMB, an activity (or a work package) should be between 8 to 80 person-hours of

work – any more hours may cause lack of work clarity to be individually managed, whereas any
lower means micro-managing many activities
6.4 Estimate Activity Duration

The factor for estimation:

• Law of diminishing returns - adding an additional factor of production results in smaller
increases in output.
• Number of resources
• Advances in technology
• Motivation of Staff

Input
• PMP & PD
• EEF & OPA

Tools and Technique:

1. Analogous estimating
– using historical data from similar project
– duration, budget, size, weight, complexity

2. Parametric estimating
– used algorithm to calculate cost n duration based on historical data.
– Used relationship between historical data and project parameter

3. Three-point estimating →Expected Duration, tE = (t0 + tM + tP) / 3

– consider uncertainty and risk
– used when historical data insufficient

4. Bottom-up estimating
– by aggregating the lower-level components of the WBS
– Duration n cost

5. Data analysis
Alternatives analysis - to compare various levels of resource capability or skills
Reserve analysis - to determine the amount of contingency and management
reserve needed for the project (risk)

Output:
• Duration estimate
• Basis of estimate
• PD Update: Activity updates, Assumption Log, Lesson Learned register

Basis of Estimates:
The basis of estimates is the supporting documentation that explains how the cost estimates
were developed. It also includes information like assumptions, constraints, range or accuracy
(rough order of magnitude), and confidence level.

5 Principles of Estimating
1. Tender schedules.
2. Non-Price Criteria & Priced Criteria.
3. Direct Pricing & Indirect Pricing.
4. Estimating (rating) methods including First Principles, Second Principles & Bench
Marking.
5. Cost Planning.

4 Steps of estimation
1. Analogous Estimation.
2. Top-down Estimation.
3. Bottom-up Estimation.
4. Parametric Model Estimation
 6.5 Develop Schedule

4 steps to develop schedule

1. Forward Pass
2. Backward Pass
3. Determine the float/ Buffer
4. Calculate the Critical Path

Inputs:
• PMP – Schedule Plan, Scope baseline
• PD
• Agreement
• EEF, OPA

Tools n techniques:
1. Schedule network analysis - a graphical representation of a schedule showing each
sequenced activity and the time it takes to finish each one

2. Critical path method - the sequence of activities that represents the longest path through
a project, which determines the shortest possible project duration.

The longest path has the least total float—usually zero

Float – the amount of time that a scheduled activity can be delayed or extended from its
early start date without delaying the project finish date

Free Float – the amount of time that a scheduled activity can be delayed without delaying
the early start date of any successor

Duration = EF-ES+1
Float = LS-ES

Forward Pass – to determine ES & EF

Backward Pass – to determine LS & LF

Critical Path Method Critical Chain Method

• To calculate project completion date • To consider resources limitation
• To consider resources limitation • Place buffer
• Zero float • Known as resource-constraint critical
• Largest path of netwok path
• Shortest time to complete

3. Resource optimization – to adjust the start and finish dates of activities to adjust planned
resource use to be equal to or less than resource availability.
• Resource levelling – when available resources are limited and need to be used
optimally (When resources available, when task can finish?)

• Resource smoothing - when time constraints are the biggest factor blocking
production. (will be achieved by delaying some work)
 4. Data analysis
• What-if scenario analysis - evaluating scenarios in order to predict their effect,
positive or negative, on the project Objectives

• Simulation (Monte Carlo) – a statistical modelling technique for evaluating the

effects of various risks and other assumptions on the expected schedule or cost of
a project.

5. Leads and lags

6. Schedule compression (How to shorten the schedule)

Crashing - shorten the duration by adding resources. (High Cost)
Fast-tracking - activities or phases are performed in parallel (High risk)

7. Agile release planning

- high-level summary timeline of the release schedule
- determines the number of iterations or sprints in the release

Output:
• Schedule baseline
• Project schedule
• Schedule data
• Project calendars
• Change requests
• PMP updates
• PD Updates - Gantt Chart, milestone, Project schedule network diagram

6.6 Control Schedule

Control schedule:
1. Determining the current status of the project schedule
2. Influencing the factors that create schedule changes
3. Reconsidering necessary schedule reserves
4. Determining if the project schedule has changed
5. Managing the actual changes as they occur

Control schedule in Agile:

• Determining the current status against the estimates of work completed for the elapsed
time cycle;
• Conducting retrospectives
• Reprioritizing the remaining work plan (backlog);
• Determining the rate at which the deliverables are produced, validated, and accepted
(velocity) in the given time per iteration (agreed-upon work cycle duration, typically 2
weeks or 1 month);
• Determining that the project schedule has changed
• Managing the actual changes as they occur.

Input
• PMP & PD
• Work Performance Data
• OPA
Tools and techniques
1. Data Analysis
• Earned value analysis - compares the baseline to the actual schedule and cost
performance

• Iteration burndown chart

- track the work that remains to be completed in the iteration backlog.
- the variance between actual and planned remaining work

• Performance reviews - measure, compare, and analyse schedule performance

against the schedule baseline

• Trend analysis - to forecast future performance based on past results.

• Variance Analysis - differences between planned and actual performance.

• What-if scenario analysis - evaluating scenarios in order to predict their effect,

positive or negative, on the project Objectives

2. Critical Path Method

3. PMIS
4. Resource Optimization – levelling & smoothing
5. Lead and Lags
6. Schedule Compression – crashing & fast track

Output:
• Work performance information
• Schedule forecasts
• Change requests
• PMP updates, PD updates

*******************************************************************************************************

Agile – scheduling project use Rolling Wave, product use time-boxed periods of work

Agile
• Iteration/ Sprint Planning meeting
- to estimate how much time individual tasks will take to produce the feature in a high-
priority user story
- part of Estimate Activity Duration

• Release Planning meeting

- high level summary timeline of release schedule
- part of Develop Schedule process

Firs-to-five – decision making method in agile

CHAPTER 7: COST MANAGEMENT

Tailoring: Agile:
• Knowledge management. • Use Lightweight estimation methods
• Estimating and budgeting. • generate a fast, high-level forecast of
• Earned value management. project labour costs, easily adjusted as
• Use of agile approach. changes
• Governance. • Detailed estimates are reserved for
short-term planning horizons in a just-in-
time fashion.

7.1 Plan Cost Management

Inputs:
• Project Charter
• PMP
• EEF, OPA

Tools and techniques:

• Expert Judgment
• Meeting
• Data Analysis – Alternative analysis (Strategic funding option)
• self-funding
• funding with equity
• funding with debt.

Output: Cost Management Plan

• Units of measure
• Level of precision - degree to which cost estimates will be rounded up or down
• Level of accuracy - determining realistic cost estimates is specified
• Organizational procedures links
• Control thresholds - agreed-upon amount of variation to be allowed before some action
needs to be taken
• Rules of performance measurement
• Reporting formats
• Additional details

7.2 Estimates Cost

Input:
• PMP – Cost Mgt plan, Quality Mgt Plan, Scope baseline
• PD – Lesson Learned, Project schedule, Resource requirements, Risk Register
• EEF, OPA

Tools and Techniques:

1. Analogous estimating
– using historical data from a similar project

2. Parametric estimating
– used algorithm to calculate cost n duration based on historical data.
– Used relationship between historical data and project parameter

3. Three-point estimating
– consider uncertainty and risk
– used when historical data insufficient
Triangular distribution, cE = (cO + cM + cP) / 3
Beta distribution, cE = (cO + 4cM + cP) / 6
 4. Bottom-up estimating
– by aggregating the lower-level components of the WBS
– Duration n cost

5. Data analysis
Alternatives analysis – to identify better option (buying or making itself)
Reserve analysis - to determine the amount of contingency and management
reserve needed for the project

contingency reserves = contingency allowances

Cost of Quality - includes all costs incurred of the product by investment in

preventing nonconformance to requirements, appraising the product or service for
conformance to requirements, and failing to meet requirements (rework).

Output:
• Cost Estimates
• Basis of estimates
• PD – Assumption Log, LLR, RR

7.3 Determine Budget

Process of aggregating the estimated costs of individual activities or work packages to
establish an authorized cost baseline.

Input:
• PMP - Cost Mgt plan, Resource Mgt plan, Scope baseline
• PD - Basis of estimates, Cost estimates, Project schedule, Risk register
• Biz Doc
Business case - identifies the critical success factors for the project
Benefits management plan - target benefits, such as net present
value calculations, timeframe for realizing benefits, and the metrics associated
with the benefits.
• Agreements
• EEF, OPA

Tools and Technique:

1. Expert judgment
2. Cost aggregation
3. Data analysis - Reserve analysis (Management Reserves)
Management reserves
- for unforeseen work that is within scope of the project
- are intended to address the unknown unknowns that can affect a project.
- not included in the cost baseline but is part of the overall project budget and
funding requirements
- the amount added to the cost baseline, required an approved change to the cost
baseline.

4. Historical information review

5. Funding limit reconciliation
6. Financing

Output:
• Cost baseline
• Project funding requirements
• PD – Cost estimates, project schedule, RR
7.4 Control Cost

Tools and Technique:

1. Expert judgment
2. Data analysis
• Earned value analysis
- compares the baseline to the actual schedule and cost performance
• Variance analysis
• Trend analysis
- to forecast future performance based on past results.
- Chart, Forecasting: EAC, BAC, ETC

EAC forecast for ETC work performed at the budgeted rate: EAC = AC + (BAC – EV).
EAC forecast for ETC work performed at the present CPI: EAC = BAC / CPI.
EAC forecast for ETC work considering both SPI and CPI factors:
EAC = AC + [(BAC – EV) / (CPI × SPI)].

• Reserve analysis - to monitor the status of contingency and management reserves

3. To-complete performance index (TCPI) -

4. PMIS

Input: Output:
• PMP, PD • Work performance information
• Project funding requirements • Cost forecasts
• Work performance data • Change requests
• OPA • PMP updates, PD updates
CHAPTER 8: QUALITY MANAGEMENT

Quality –
Gred –

The actual result must;

• Equivalent to benchmark
• Meet customer specification

Prevention - keeping errors out of the process

Inspection - keeping errors out of the hands of the customer

Attribute sampling - the result either conforms or does not conform

variable sampling - the result is rated on a continuous scale that measures the degree of
conformity

Tolerances - specified range of acceptable results

Control limits - the boundaries of common variation in a statistically stable process or process
performance

Cost of Quality (CoQ) - includes all costs incurred of the product by investment in preventing
nonconformance to requirements, appraising the product or service for conformance to
requirements, and failing to meet requirements (rework).

Failure cost = Cost of poor quality

5 levels of effective Quality Management:

1. Defect → warranty issues, recalls, loss of reputation, and rework costs.
2. Detect and correct the defects before the deliverables (Appraisal cost & failure cost)
3. Use QA for the whole process, not just special defect
4. Incorporate quality into the planning and designing phase
5. Create a culture that is aware and committed to quality in processes and products.

Goal of Quality Management:

• Customer satisfaction
• Continual improvement
• Management responsibility
• Mutually beneficial partnership with suppliers

Tailoring:
• Policy compliance and auditing.
• Standards and regulatory compliance.
• Continuous improvement.
• Stakeholder engagement.

Agile:
• Recurring retrospectives
• look for the root cause of issues then suggest trials of new approaches to improve quality.

Example:
• Plan quality – standard yang ditetapkan/ kita selalu rujuk
• Manage Quality – To ensure follow the standard, Prepare tes script
• Control Quality – Use test script, monitor according to test result, make sure deliverable
comply
 8.1 Plan Quality Management

Input:
• Project Charter
• PMP
• PD
• EEF, OPA

Tools and Technique:

1. Expert judgement
2. Data gathering – Benchmarking, Brainstorming, Interviews
3. Data analysis
• Cost Benefit Analysis – financial analysis tool used to estimate the strengths and
weaknesses of alternatives in order to determine the best alternative in terms of
benefits provided

• Cost of Quality (CoQ):

Cost to avoid failure/
Prevention cost – Costs related to the prevention of poor quality
conformance Appraisal cost – Costs related to evaluating, measuring, auditing, and testing
Cost because of failure/ Failure cost – Costs related to non-conformance
non conformance →

4. Decision making
• Multicriteria decision analysis (prioritization matrix)
- identify the key issues and suitable alternatives to be prioritized as a set of decisions
for implementation

5. Data representation
• Flowchart
- also know as process map
- the sequence of steps and the branching possibilities that exist for a process that
transforms one or more inputs into one or more outputs
- SIPOC model: suppliers, inputs, process, outputs, and customers

• Logical data Model

- to identify where data integrity or other quality issues can arise.

• Matrix Diagrams
- help find the strength of relationships among different factors, causes, and
objectives

• Mind Mapping
- rapid gathering of project quality requirements, constraints, dependencies, and
relationships.

6. Test and inspection planning

7. Meetings

Output:
• Quality management plan
• Quality metrics - describes a project or product attribute and how the Control Quality
process will verify compliance
• PMP, PD updates
8.2 Manage Quality (QA)
- Process translating the quality plan into executable quality activities

Inputs:
• PMP
• PD – LLR, QC Measurement, Quality metrics, RR
• OPA

Tools and Technique:

1. Data gathering – Checklist

2. Data analysis
• Alternative analysis
- Identified options in order to select the options/approaches to to execute the work

• Document analysis
- identifying lessons learned and knowledge sharing for future projects

• Process analysis
- identifies opportunities for process improvements.
- examines problems, constraints, and non-value-added activities that occur during a
process.

• Root Cause analysis

- analytical technique used to determine the main reason that causes a variance,
defect, or risk.

3. Data representations
• Affinity diagrams - organize potential causes of defects into groups showing areas
• Cause-and-effect diagrams - fishbone diagrams, why-why diagrams, Ishikawa
• Flowcharts - show a series of steps that lead to a defect.
• Histograms - show a graphical representation of numerical data. Histograms can
show the number of defects per deliverable, a ranking of the cause of defects, the
number of times each process is noncompliant, or other representations of project or
product defects
• Matrix diagrams - numbers of ideas to be classified into groups for review & analysis
• Scatter diagrams - shows the relationship between two variables

4. Audit
• Identifying all good and best practices being implemented
• Identifying all nonconformity, gaps, and shortcomings
• Sharing good practices implemented in similar projects
• Proactively offering assistance to improve the implementation of processes to help
raise team productivity
• Highlighting contributions of each audit in the lessons learned repository

5. Design for X – POC, prototype, pilot

6. Problem Solving

7. Quality Improvement Method

- To analyse & evaluate opportunities for improvement → Plan-do-check-act & Six Sigma.

Outputs:
• Quality reports –include issue, recommendation, corrective action & summary from QC
• Test and evaluation documents – Checklist & RTM
• CR
• PMP & PD updates
8.3 Control Quality

QC - To measure the completeness, compliance, and fitness for use of a product or service prior
to user acceptance and final delivery

Agile - QC activities performed by all team members throughout the project life cycle.

Waterfall - QC performed at specific times, toward the end of the project by specified team
members.

Inputs:
• PMP
• PD – LLR, Quality metrics, Test and evaluation documents.
• CR
• Deliverables
• Work Performance Data
• EEF, OPA

Tools and Technique:

1. Data gathering
• Checklist
• Check Sheet/ Tally sheet
• Statistical sampling - choosing part of a population of interest for inspection
• Questionnaires and Surveys - to gather data about customer satisfaction after
deployment

2. Data analysis
• Performance reviews
- compare the quality metrics defined by the Plan Quality Management process
against the actual results

• Root Cause analysis

- analytical technique used to determine the main reason that causes a variance,
defect, or risk.

3. Inspection
4. Testing/product evaluations

5. Data representations
• Cause-and-effect diagrams - fishbone diagrams, why-why diagrams, Ishikawa
• Control charts – to determine whether process is stable
• Histograms.
• Scatter diagrams.

Outputs:
• Quality Control Measurements
• Verified deliverables - to determine the correctness of deliverables
• Work Performance Information
• CR
• PMP & PD updates
CHAPTER 9: RESOURCE MANAGEMENT

Physical resources - equipment, materials, facilities, and infrastructure.

Team resources/ personnel - human resources

Trends and emerging practices in resource management

• Resource management methods.
• Emotional intelligence – improving competencies on:
- inbound (self-management and self-awareness)
- outbound (relationship management)
• Self-organizing teams
• Virtual teams/distributed teams

Tailoring
• Diversity.
• Physical location.
• Industry-specific resources.
• Acquisition of team members.
• Management of team.
• Life cycle approaches.

9.1 Plan Resource Management

Inputs
• Project charter
• PMP – QMP, Scope baseline
• PD – Project schedule, Req doc, RR, SH register
• EEF, OPA

Tools & Techniques

1. Expert judgment

2. Data representation
Hierarchical charts – WBS, OBS, RBS

Responsibility assignment matrix

- shows the project resources assigned to each work package
- shows all activities associated with one person and all people associated with
one activity.
- to ensure clear assignment of roles and responsibilities when the team consists
of internal and external resources. (Task assignment)

Text-oriented formats
- Different name : position descriptions, role-responsibility-authority forms.
- provide information such as responsibilities, authority, competencies, and
Qualifications

3. Organizational theory
- provides information regarding the way people, teams, and organizational units behave.

4. Meetings

Outputs
• Resource management plan
• Team charter → decrease misunderstanding, increase productivity
• Project documents updates
9.2 Estimate Activity Resources

Inputs
• PMP
• PD
• EEF, OPA

Tools & Techniques

• Expert judgment
• Bottom-up estimating
• Analogous estimating
• Parametric estimating
• Data analysis – Alternative analysis
• PMIS
• Meetings

Outputs
• Resource requirements
• Basis of estimates
• RBS
• PD updates

9.3 Acquire Resources

Acquire internal resources – functional/resources manager

Acquire external resources – procurement process

Inputs
• PMP
• PD
• EEF, OPA

Tools & Techniques

• Decision making – multicriteria decision analysis
• Interpersonal and team skills - negotiation
• Pre-assignment
• Virtual teams – comm management very important

Outputs
• Physical resource assignments
• Project team assignments
• Resource calendars
• CR
• PMP & PD updates
• EEF & OPA updates
9.4 Develop Team
Tuckman Ladder
Inputs
• PMP
• PD
• EEF, OPA

Tools & Techniques

• Colocation
• Virtual teams
• Communication technology
• Interpersonal and team skills
• Recognition and rewards
• Training
• Individual and team assessments
• Meetings

Outputs
• Team performance assessments
• CR
• PMP & PD updates
• EEF & OPA updates

9.5 Manage Team

Inputs
• PMP
• PD
• EEF, OPA
• Team performance assessments
• Work Performance Report

Tools & Techniques

• Interpersonal and team skills – Conflict Management
• PMIS

Outputs
• CR
• PMP & PD updates
• EEF & OPA updates
9.6 Control Resources

Inputs
• PMP
• PD
• OPA
• Agreement
• Work Performance Data

Tools & Techniques

• Data analysis
Alternatives analysis
Cost-benefit analysis – to determine best corrective action
Performance reviews
Trend analysis – based on current performance information to forecast future need
• Problem solving
• Interpersonal and team skills – negotiation, influencing
• PMIS

Outputs
• Work performance information
• CR
• PMP & PD updates
CHAPTER 10: COMMUNICATION MANAGEMENT

Communication objective
• Changing information, idea, instruction, emotion
• Develop relationship

Communication dimension:
• Internal – SH within the organization
• External – customer, vendor, government
• Formal – Reports, formal stakeholder briefings, presentations.
• Informal – General communications activities using emails, social media, ad hoc
discussions.
• Hierarchical focus:
Upward - Senior management stakeholders.
Downward - The team and others who will contribute to the work of the project.
Horizontal - Peers of the project manager or team.
• Official – Annual reports; reports to regulators or government bodies.
• Unofficial – building relationships between the project team and its stakeholders
• Written and oral.

5Cs of written communications:

• Correct grammar and spelling
• Concise expression and elimination of excess words
• Clear purpose and expression
• Coherent logical flow of ideas
• Controlling flow of words and ideas

Fundamental attributes of effective communication activities:

• Clarity on the purpose of the communication—defining its purpose
• Understanding as much as possible about the receiver of the communications, meeting
needs, and preferences
• Monitoring and measuring the effectiveness of the communications.

Trend and emerging practices:

• Inclusion of stakeholders in project reviews
• Inclusion of stakeholders in project meetings.
• Increased use of social computing.
• Multifaceted approaches to communication

Tailoring:
• Stakeholders
• Physical location
• Communications technology
• Language
• Knowledge management.

Agile:
• frequent team checkpoints
• collocating team members as
• Information Radiator - Posting project artifacts in a transparent fashion, and holding
regular stakeholder reviews are intended to promote communication with management
and stakeholders.

Successful Communication:
• Develop method/ strategy based on project & SH needs → develop communication plan
• Message of the information
10.1 Plan Communication Management

Inputs
• Project charter
• PMP – Resource & stakeholder engagement plan
• PD – requirement document, SH register
• EEF, OPA

Tools & Techniques

1. Expert judgment

2. Communication requirements analysis

3. Communication technology
Urgency of the need for information
Availability and reliability of technology
Ease of use
Project environment
Sensitivity and confidentiality of the information

4. Communication model
Sample basic sender/receiver communication model
▪ Encode → transmit → decode
▪ Challenges: Unfamiliar tech, Uncomplete infrastructure

Sample interactive communication model

▪ Acknowledge → feedback/ respond
▪ Challenges: variation of receiver perception, lack of knowledge/ interest

5. Communication Methods
Interactive communication – multidirectional exchange of information (social
media, vc, meetings), responding to each other
Push communication – send directly to specific recipients
Pull communication – large complex information sets, or for large audiences, and
requires the recipients to access content at their own discretion (portal, intranet,
repo, DB)

6. Communication Approach
Interpersonal – Info is exchanged between individuals, face-to-face.
Small group – Occurs within groups of around three to six people.
Public – A single speaker addressing a group of people.

Mass communication
– minimal connection between the person or group sending the message and the
large, sometimes anonymous groups for whom the information is intended.

Networks and social computing communication

– Supports emerging communication trends of many-to-many supported by social
computing technology and media.

7. Interpersonal and team skills

Communication styles assessment - to assess communication styles and identify
the preferred communication method
Political awareness – power relationship
Cultural awareness – understanding the differences

8. Data representation
• Stakeholder engagement assessment matrix - gaps between current and desired
engagement levels of individual stakeholders
Outputs
• Communications management plan
• PMP & PD update

10.2 Manage Communication

Inputs
• PMP, PD
• Work performance Reports – status progress
• EEF, OPA

Tools & Techniques

• Communication technology
• Communication Methods
• Communication skills
Communication competence
Feedback
Nonverbal
Presentations – 1) The audience, their expectations, The needs; 2) objectives
• PMIS
• Project reporting
• Meetings

• Interpersonal and team skills

Active listening
Conflict management

Cultural awareness
Political awareness
Meeting management
Networking

Outputs
• Project communications
• PMP & PD updates
• OPA updates
10.3 Monitor Communication

Inputs
• PMP, PD
• Work performance Data
• EEF, OPA

Tools & Techniques

• Expert judgment
• PMIS
• Data analysis - Stakeholder engagement assessment matrix
• Interpersonal and team skills – observation/ conversation
• Meetings

Outputs
• Work performance information
• CR
• PMP & PD Updates
CHAPTER 11: RISK MANAGEMENT

Risk Level
1. Individual project risk
- uncertain event/condition that has a positive or negative effect on one or more project
objectives.
Exploit or enhance positive risks (opportunities)
Avoid or mitigate negative risks (threats)

2. Overall project risk

- effect of uncertainty on the project as a whole, arising from all sources of uncertainty
including individual risks. Can be both positive and negative.
Risk threshold - the degree of acceptable variation for a project objective which
reflects the risk appetite of the organization and helps to define the risk exposure
of the project

Trend and emerging practices:

1. Non event risks:
• Variability risk – uncertainty about a planned event/decision/activity, can be
addressed using Monte Carlo simulation.

• Ambiguity risk – due to imperfect knowledge, can be addressed by defining gap

areas & filling them via benchmarking & inputs or via incremental development,
prototype & simulation

2. Project resilience:
- For handling emergent risks or unknowable unknowns They are recognized only after
they occur.
- Resilience may be increased using appropriate budget schedule levels, flexible
processes, strong change management, team empowerment, frequent reviews of early
warning signs stakeholder inputs

3. Integrated risk management

- Risks exist at the program or portfolio level
- Risks identified at higher levels will be delegated to project team and some may be
escalated to higher levels
- They are best managed outside the project

Agile:
• More risks to be addressed, therefore frequent reviews
• Incremental work, thus risk or each iteration
• Cross functional teams
• Knowledge sharing
• Living requirements document

Tailoring:
• Project size
• Project complexity
• Project importance
• Development approach
11.1 Plan Risk Management

Inherent risk – tak buat apa2 pun memang ada risk

Input
• PMP, PD
• EEF, OPA

Tools & Techniques Outputs

• Expert judgment
• Data analysis - Stakeholder analysis
• Meetings

Outputs - Risk management plan

• Risk strategy - Describe the general approach to managing risk on the project
• Methodology - Defines the approaches, tools, and data sources that will be used
• Roles and responsibilities.
• Funding - Identifies the funds needed to perform activities
• Timing - Defines when and how often the risk management processes will be performed
• Risk categories – grouping (RBS)

• Stakeholder risk appetite – Measurable risk thresholds of each project objective, helps
determine acceptable level of project risk exposure

• Definitions of risk probability and impacts.

• Probability and impact matrix - prioritize

• Reporting formats.
• Tracking.
11.2 Identify Risks

Inputs:
• PMP, PD
• Agreement
• Procurement documentation
• EEF, OPA

Tools and Technique

• Expert judgment
• Data gathering – Brainstorming | Checklists | Interviews
• Data analysis
Root cause analysis
Assumption and constraint analysis
SWOT analysis
Document analysis
• Interpersonal and team skills - Facilitation
• Prompt lists – RISK TRIGGER
- predetermined list of categories.
- The lowest level of RBS is used as prompt list.
- For identifying overall project risks some common strategic frameworks such as
PESTLE, TECOP, VUCA may be used

EMV = % of chances x Path value

Output
• Risk Register:
- List of identified risks
- Potential risk owners
- List of potential risk responses.
• Risk Reports
• PD updates
• LLR
11.3 Perform Qualitative Risk Analysis

The process of prioritizing individual project risks for further analysis or action by assessing their
probability of occurrence and impact as well as other characteristics.

The key benefit of this process is that it focuses efforts on high priority risks. This process is
performed throughout the project.

Input
• PMP, PD
• EEF, OPA

Tools and Technique

• Expert judgment
• Data gathering - Interviews
• Data analysis
Risk data quality assessment
Risk probability and impact assessment
Assessment of other risk parameters

Parameter Description
Probability The likelihood of the risks occurring

Impact The potential effect on the project, positive or negative

Strategic impact The potential effect on the organization that’s beyond the project impact

Manageability The ability of the risk owner/stakeholders to tackle the risk effectively

Detectability The ability of the risk owner/ stakeholders to recognize the risk when
it occurs
Urgency The window of time available to effectively respond to the risk

Proximity The window of time in which a risk can effect one or more of the
project goals and objectives
Dormancy The window of time in which the risk has occurred, but its impact
went undiscovered
Controllability The ability of the risk owner to influence the risk impact and outcome

Connectivity The interconnectedness of this risk in relationship with other project,

program, and portfolio risks
Propinquity the perceived importance of risks by the stakeholders

• Interpersonal and team skills - Facilitation

• Risk categorization
• Data representation
Probability and impact matrix
Hierarchical charts
• Meetings

Output
• PD updates – AL, IL, RR, RP
11.4 Perform Quantitative Risk Analysis

The process of numerically analyzing the combined effect of identified individual project risks and
other sources of uncertainty on overall project objectives.

The key benefit of this process is that it quantifies overall project risk exposure, and it can also
provide additional quantitative risk information to support risk response planning

This process is not required for every project, but wherever it is used, it is performed throughout
the project

Inputs
• PMP, PD
• EEF, OPA

Tools & Techniques Outputs

• Expert judgment
• Data gathering – Interviews
• Interpersonal and team skills – Facilitation
• Representations of uncertainty - Triangular, normal, lognormal, beta, uniform or discrete
• distributions
• Data analysis
Simulations
- Simulates the combined effects of individual project risks and other sources of
uncertainty
[Input = cost/ duration estimate]
[output = project end date/ project cost completion]

Sensitivity analysis - It helps to understand how the variations in project’s

objectives correlate with variations in different uncertainties
tornado diagrams

Decision tree analysis - Decision trees are used to support selection of the best of
several alternative courses of action.

Influence diagrams - Graphical aids to decision making under uncertainty. Outputs

are similar to S curves, tornado diagrams

Output
• PD updates – Risk Report
11.5 Plan Risk Responses

Inputs
• PMP, PD
• EEF, OPA

Tools & Techniques Outputs

• Expert judgment
• Data gathering – Interviews
• Interpersonal and team skills – Facilitation
• Strategies for threats

• Strategies for opportunities

• Contingent response strategies

• Strategies for overall project risk
• Data analysis
Alternatives analysis
Cost-benefit analysis
• Decision making – Multicriteria decision

Outputs
• CR
• PMP & PD updates
11.6 Implement Risk Responses

Inputs
• PMP, PD
• OPA

Tools & Techniques Outputs

• Expert judgment
• Interpersonal and team skills - Influencing
• PMIS

Outputs
• CR
• PD updates

11.7 Monitor Risks

Inputs
• PMP, PD
• Work performance data
• Work performance report

Tools & Techniques Outputs

• Data analysis - Technical performance analysis, Reserve analysis
• Audits
• Meetings

Outputs
• Work performance information
• CR
• PMP & PD updates
• OPA updates
CHAPTER 12: PROCUREMENT MANAGEMENT

Project manager is typically not authorized to sign legal agreements binding

Project managers should keep in mind the effect that culture and local law have upon contracts
and their enforceability, no matter how clearly a contract is written.

Procurement – purchase or acquire product, service, result which tied with legal obligation and
penalties

Agile
• Master Service Agreement (MSA) for all work
• Shared risk model with sellers

Tailoring:
• Procurement complexity
• Location
• Governance & regulation
• Availability of contractors

Terms
• Buyer – Client, Customer, Service requestor, Purchaser
• Seller – Contractor, Subcontractor, Vendor, Service provider, Supplier
• Contracts – Agreements, An understanding, A subcontract, PO (unilateral agreement)
• Procurement Contract includes the following primarily:
Capacity (competency)
Consideration (the service or product being exchanged)
Offer (proposition)
Legal purpose
Acceptance
• Tender – Open, Closed/ direct nego

Typical steps in procurement

• Prepare the procurement statement of work (SOW) or terms of reference (TOR).
• Prepare a high-level cost estimate to determine the budget.
• Advertise the opportunity.
• Identify a short list of qualified sellers.
• Prepare and issue bid documents.
• Prepare and submit proposals by the seller.
• Conduct a technical evaluation of the proposals including quality.
• Perform a cost evaluation of the proposals.
• Prepare the final combined quality and cost evaluation to select the winning proposal.
• Finalize negotiations and sign contract between the buyer and the seller.
12.1 Plan Procurement Management

Inputs
• Project Charter
• Biz Document (BC, Benefit mgt plan)
• PMP, PD
• EEF
• OPA
Preapproved seller lists.
Formal procurement policies, procedures, and guidelines.
Contract types.

Time and Material (or Time and

Means) Contracts (T& M):

A hybrid type of contractual

arrangement that contain aspects
of both cost reimbursable and fixed
price contracts.
Tools & Techniques
1. Expert judgment
2. Data gathering - Market research

3. Data analysis
A make-or-buy analysis is used to determine whether work or deliverables can best be
accomplished by the project team or should be purchased from outside source

4. Source Selection Analysis

• Least cost - for routine clearly defined work
• Qualification only - for small value procurements, based on seller qualifications,
experience, etc.
• Quality-based/highest technical proposal score – the highest ranked technical
proposal is considered for price negotiation
• Quality and cost based - both quality and price are considered
• Sole source - monopoly, but price negotiation also occurs
• Fixed budget - fixed and clear scope; in case of changes seller can change scope or
quality based on available budget

Output:
• Procurement management plan
• Procurement strategy
• Bid documents – RFI (market survey), RFQ, RFP
• Procurement statement of work – SOW, TOR
• Source selection criteria
• Make-or-buy decisions
• Independent cost estimates
• Change requests
• PD updates
• OPA updates

Delivery Method
1. For professional services:
• A Service provider with no subcontracting
• A Service provider with subcontracting allowed
• Joint venture between buyer and services provider
• A Service provider acts as a representative

2. For industrial or commercial construction projects:

• Turnkey, design build (DB), design bid build (DBB), design build operate (DBP), build own
operate transfer ( BOOT) etc.

Contract payment types:

• Fixed fee contracts are suitable when the type of work is predictable and the
requirements are well-defined and not likely to change
• Cost-plus contracts are suitable when the work is evolving, likely to change, or not well
defined
• Incentives and awards may be used to align the objectives of buyer and seller

Procurement phases
• Sequencing or phasing of the procurement
• Procurement performance indicators and milestones to be used in monitoring
• Criteria for moving from phase to phase
• Monitor and evaluation plan for tracking progress
• Process for knowledge transfer
12.2 Conduct Procurements

Inputs
• PMP, PD
• EEF, OPA
• Procurement documentation
• Seller proposals

Tools and Technique:

• Expert Judgement
• Advertising
• Bider Conferences
• Data Analysis - Proposal evaluation
• Interpersonal and team skills - Negotiation

Outputs
• Selected seller
• Agreement
• Change Request
• Project Management Plan – Comm plan, scope baseline, procurement plan
• Project document updates
• OPA

Cost estimates- as a benchmarks

12.3 Control Procurements
- monitoring payments to the seller
- Agreements can be amended at any time prior to contract closure by mutual consent,

Input
• PMP, PD
• Agreements
• Procurement documentation
• Approved CR
• Work performance data
• EEP, OPA

Tools and technique

• Expert judgment
• Claims administration - For additional claims. Alternative Dispute Resolution (ADR) if
mediation fails
• Data analysis
Earned value analysis
Trend analysis
• Inspection
• Audits – not specific to deliverables

Outputs
• Closed procurements
• Work performance Information
• Procurement documentation updates
• Change requests
• PMP, PD updates
• OPA updates
CHAPTER 13: STAKEHOLDER MANAGEMENT

Project Stakeholder
• People, groups and organizations and public that actively involved in the project
• May have positive or negative impact to the project
• Manage their influence and engagement
• Project team is a part of stakeholder, but NOT all stakeholders is a project team

Key concepts
• Identify all stakeholders
• Involve all team members in stakeholder engagement
• Review stakeholders along with risks
• Consult/co create with key stakeholders
• Value of positive & negative stakeholder engagements

Tailoring
• Stakeholder diversity.
• Complexity of stakeholder relationships.
• Communication technology.

Agile
• Direct engagement with stakeholders than through management channels
• Co create process with key SH
• Transparency (example information radiators)
• Remember the future – Innovation/ collaboration games to facilitate a discussion
• Project Pre-mortem – I/C games to identify failure points before happening

14.1 Identify Stakeholders

Stakeholders
Project Owner Custodian of the project

Project Sponsor Provides the financial resources

Project Customer Provide key project events, milestones, deliverables and expected timelines
Process Owner Owns a process and accountable for designing an effective and efficient process
Product Manager Identifies the customer need and the larger business objectives
Halo Effect, where we assume a person who is good at technical is also good as a
project manager – not true!

Performing Org. Mgt Signs off the Project Charter, provides resources, resolves stakeholder conflict, and
protects the project from changes
Operations Mgt to support project management including maintaining and operating the production
of results and deliverables
PMO
Project Team
Process Manager Functional
Manager Sellers and Biz
Partners

Outputs 1. Identification Information

Inputs
2. Assessment Information
• Project Charter • SH register
3. SH Classification
• Biz Document • CR
• PMP, PD • PMP & PD updates
• Agreements
• EEF, OPA
Tools n technique:
1. Expert Judgment

2. Data Gathering (fact data)

• Questionnaires and surveys
• Brainstorming
• Brain writing- A refinement of brainstorming that allows individual participants time to
consider the question(s) individually before the group creativity session is held.

3. Data Analysis
• alternative analysis
• assumption analysis
• root-cause analysis
• stakeholder analysis – Interest, rights, ownership, knowledge, contribution

4. Data Representation
• Stakeholder mapping/ representation
Prioritize – complex stakeholders
Power/interest grid – power & concern
Power/influence grid – power & involvement

Stakeholder cube

** Keep people in green zone and orange zone

 Salience Model – classes SH based on power, urgency, legitimacy
(involvement is appropriate)

Formal recognition.
Actively in the project
Not spectator

Not in the project

Latent Stakeholders
1. Dormant: Have power to cause problems, need to be carefully managed
2. Discretionary (Weak Stakeholder): Their needs and issues should be heard and
understood by the project team, but incorporating those needs is likely to be discretionary
based on the needs of other stakeholders with greater power or urgency
3. Demanding: These are most likely to be project detractors if their demands are not
incorporated

Expectant Stakeholders
4. Dominant: Their power and legitimacy make them important for project success, but their
low urgency means they may not have to be part of the core project effort
5. Dangerous: Their power and urgency can make them threats to project success, and
they are often drivers of scope expansion or other changes that do not fall within the
legitimate needs of the project
6. Dependent: Their lack of power makes them dependent on the project team to ensure
their needs are heard and fully considered
7.  Core or Definitive: These are stakeholders who always take top priority and evaluated
as having power, legitimacy, and urgency [IDEAL POSITION]

Direction Of Influence
14.2 Plan Stakeholder Engagement

Inputs
• Project Charter
• PMP, PD
• Agreements
• EEF, OPA

Tool n techniques:
• Expert Judgment
• Meetings
• Data Gathering (Benchmarking)

• Data Analysis
Assumption and constraint analysis
Root cause analysis

• Decision Making - Prioritization/ranking

• Data representation - Stakeholder Engagement Assessment Matrix (show the current

level of engagement by SH compared with desired level of engagement)

Outputs
• Stakeholder engagement plan

14.3 Manage Stakeholder Engagement

Inputs
• PMP, PD
• EEF, OPA

Tools n techniques
• Expert Judgment
• Communication Skill - Feedback
• Interpersonal team skill
Conflict management
Cultural awareness
Negotiation
Observation/conversation
Political awareness
• Ground rules – to set the expected behaviour of stakeholders regarding stakeholder
engagement
• Meetings

Outputs
• PMP, PD updates
14.4 Monitor Stakeholder Engagement

Monitor stakeholders – monitor SH relationship and tailoring strategies (modification of

engagement)

Inputs
• PMP, PD
• Work performance data
• EEF, OPA

Tool n Techniques:
• Data analysis – alternative analysis, root-cause analysis and stakeholder analysis
• Decision Making – multicriteria decision making, voting
• Data representation – stakeholder engagement assessment matrix
• Communication skill – (feedback n presentation)
• Interpersonal team skill – (Active listening, leadership, networking, political awareness)
• Meetings

Power/interest grid

Outputs
• CR
• PMP, PD updates
• Work performance Information – status of SH engagement (Current level compare to
desired level)

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