Advanced Project Management

Advanced Project Management

Unit 1 & Slide 1 Centre for Distance and Online

 Advanced Project Management

SYLLABUS : Unit-1

Baseline Cost Structure Introduction to cost structure,

Inputs for project costing, Project cost estimation,

categories of costs such as Labor cost, Equipment cost, Cost of supplies, Travel cost, Training cost, Overhead cost,
etc.

Project Procurement process: Plan procurement , Conduct procurement, Control procurement and Close

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 Advanced Project Management

Project Cost Management - It is defined as the process of planning and controlling the project cost and budget effectively
and efficiently. It defines what costs are required for each deliverable of the project. It includes various functions of Project
management like estimation, job controls, field data collection, scheduling, accounting, design etc.

The cost of the project can be estimated from various process sources (Examples below)

•Creating Work Breakdown Structure (WBS)

•Develop Schedule

•Plan human resources

•Identifying risks

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Advanced Project Management

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Advanced Project Management

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 Advanced Project Management

The inputs of cost management include,

Project management plan -A PMP is a formal document prepared by the project manager. This document
outlines an elaborate baseline of what are the project goals, what are the processes to be executed, and how
they will be monitored and controlled to accomplish these goals. The project management plan outlines the
scope, budget, goals, timeline, and project deliverables. 

•Project charter -A project charter is a short, straightforward document that serves as the foundation for a
project. The project charter functions as both the project’s internal marketing tool and reference guide.

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Advanced Project Management

The inputs of cost management include,

Enterprise environmental factors -Enterprise environmental factors are internal and external environmental
factors that can influence a project’s success, including:

•Organizational culture
•Organizational structure
•Internal and external political climate
•Existing human resources
•Available capital resources
•Regulatory environment
•Financial and market conditions

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 Advanced Project Management

The inputs of cost management include,

Organizational process assets- Organizational process assets include any of the organization’s process assets
that may be used to ensure project success.

They generally fall into two categories:

•Processes, guidelines, and procedures, such as: organizational standard processes, standardized guidelines,
templates

•The corporate knowledge base, such as, lessons learned, historical information, past project files

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 Advanced Project Management

While, the output of this is

•Cost Management Plan.

Creating estimation and costing for project is an extremely crucial part of any project management. Various
things are taken in consideration while calculating budget for project like labor costs, necessary equipment
acquisition, material costs, etc.

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 Advanced Project Management

What is Project Cost Estimation?

Project Cost Estimation is defined as the process of approximating the total expenditure of the project.

The accuracy of the cost estimation and budgeting in project management depends on the accuracy and details of the
project scope, which is the scope baseline. The scope will also define any constraints like date, resources or budget.

The risk register will help to calculate estimate types of costs, the expenses made behind the contingent action and the
expenses made to cope with risks.

To estimate the cost of project you have to categorize various cost types into categories like

•Labor cost
•Equipment cost
•Cost of supplies
•Travel cost
•Training cost
•Overhead cost, etc.

Unit 1 & Slide 9 Centre for Distance and Online

 Advanced Project Management

What is project procurement management?

Project procurement management is the creation and maintenance of relationships with external
resources needed to complete a project.

A project procurement manager communicates with vendors to buy, rent or contract products and
services needed to achieve project objectives.

The selection of vendors occurs after they have placed bids to partner with businesses seeking their
products or services.

A project procurement manager then determines which bid and partnerships are most beneficial to their
objectives. Further negotiation may take place to ensure fair representation of both party's interests.

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 Advanced Project Management

Who uses project procurement management?

Project procurement management may be necessary for a variety of industries where projects requiring outsourced
materials or services occur. The following industries commonly use project procurement management to meet their
project objectives:

•Construction

•Manufacturing

•Engineering

•Technology

•Finance

•Healthcare Etc.

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 Advanced Project Management

Benefits of project procurement management

Increased quality-Project procurement management allows organizations to negotiate detailed service

contracts to best suit their needs and could increase the certainty of high-quality goods and services

Decreased risk -The process of drafting and negotiating service contracts can help organizations more
clearly understand their vendor options by outlining costs, processes and service quality.

Controlled cost -Carefully negotiated procurement terms are a great way to reduce costs and control
spending.

Unit 1 & Slide 12 Centre for Distance and Online

 • Eight phases (Buy phases) of buying process:
1. Problem / Need recognition
2. Decide characteristics and quantity of needed product
3. Develop specifications / description of needed product
4. Search for potential suppliers
5. Obtain & analyze supplier proposals
6. Evaluate and select suppliers
7. Select an order routine
8. Performance feedback & post – purchase evaluation

Unit 1 & Slide 13

 Advanced Project Management

Processes in project procurement management

1. Planning procurement

Planning procurement involves a series of steps that help determine which resources an organization needs
for project completion and the extent of its budget. Project procurement managers often consider the
following aspects when planning for procurement:

•The materials and resources required to complete the project

•The materials and resources they already have and which need to be outsourced
•Contract requirements for outside purchases
•Delivery date requirements
•Key project milestones and their deadlines
•Legal terms and conditions
•Industry safety standards of materials and resources
•Researching providers and vendors
•Criteria for partnerships

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 Advanced Project Management

2. Conducting procurement

After planning for procurement, project procurement managers assess bids from vendors and select
partnerships based on their project needs.

Any vendor negotiations often take place during this phase of procurement and all involved parties sign
the agreed-upon contracts.

Project procurement managers may also make payments for products and services at this time.

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3. Controlling procurement

Once contracts become active, procurement control and management are important parts of maintaining
partnerships with vendors and ensuring the services and products function as they're intended throughout
the course of the project. Controlling procurement often includes:

•Evaluating regular internal status updates

•Reviewing contractor agreements

•Reviewing progress and performance updates from vendors

•Conducting inspections and audits

•Assessing work orders

•Issuing additional payment as necessary

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 Advanced Project Management

4. Closing procurement

Closing procurement involves all necessary steps in ending a partnership or contract.

This often involves a review of the work or services completed, renegotiation of any changes to original
contract terms and confirmation of payments issued and received.

Organizations may also file a formal release of liability upon procurement closing.

This contract confirms that the vendor has fulfilled the terms of the original contract and is no longer
responsible for any additional involvement in the project.

Unit 2 & Slide 17 Centre for Distance and Online

Advanced Project Management

Syllabus : Unit -2
Budgeting & activity costing Techniques to estimate project costs - Analogous Estimating, Parametric
estimating, Bottom-up estimating, Project Budget planning,

Identifying activities and Activity cost estimates, generation of Cost performance baseline,

Project funding requirements, Project document

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 Advanced Project Management

Techniques used to estimate project cost

There are some techniques used to estimate a project cost like: Expert Judgement, Three-Point Estimation, and Cost of
Quality.
However, to estimate project cost, formally there are few main methods (techniques) used as follows:

Analogous Estimating
This estimating technique is based on expert judgments and information based on similar previous projects. Where
previously done similar project cost is considered with plus or minus of 20% for existing project.

Parametric estimating
This technique uses independent measurable variables from the project work.  For example,

1)the cost for construction of a building is calculated based on the smallest variable as the cost to build a square feet area,

2)the effort required to build a work packet is calculated from the variable as lines of codes in a software development project

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 Advanced Project Management

Bottom-up estimating
Once you have defined the scope of the project, it is the most reliable form of technique. In this technique, based on
WBS, you estimate the cost for each resource or deliverables.
Likewise, there are other methods (techniques) which could be useful for estimating cost like PERT estimating, vendor
bid analysis, etc.

Three-point Estimating

This technique uses a mathematical approach as the weighted average of an optimistic, most likely and
pessimistic estimate of the work package.

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 Advanced Project Management

Project Budget Planning

The main purpose of this activity is to allocate and authorize the monetary resources required to complete the project. The
main output for determining the budget includes cost performance baseline. It not only specifies what cost will be incurred
but also when costs will be incurred. The inputs for determining budget includes following Project management budgeting
methods:

•Activity cost estimates

•Basis for estimates
•Scope baseline
•Project Schedule
•Resource calendars
•Contracts
•Organizational process assets

The output of this process is

•Cost performance baseline
•Project funding requirements
•Project document updates

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 Advanced Project Management

Project Budget Planning

The output of this process is

•Cost performance baseline

•Project funding requirements

•Project document updates

The project budgeting is performed in parallel with the project scheduling process. It is highly dependent on three
component –

•Cost estimation
•Task durations
•Allocated resources

Unit 2 & Slide 5 Centre for Distance and Online

 Project funding requirements, Project document

During project budgeting and costing, project manager communicates with different people responsible for managing
the work efforts as well as estimating project costs.

He / She will use various project prospects like

a)work breakdown structure of the project,

b)the cost estimates,
c)historical data and records,
d) resource information, and policies.

Without risk assessment, the budgeting process is not completed. Risk assessing process considers factors like time
shortage, availability of resources, development team experience, the technology used, etc.

The risk assessment can be an amount between 25 and 30 percent of the overall project cost.

Unit 2 & Slide 6

Project Documentation

Project Documentation lays the foundation for quality, traceability, and history for both the individual
document and for the complete project documentation. It is also essential that the documentation is well
arranged, easy to read, and adequate.

Project management usually follows major phases: Initiation, Planning, Control, and Closure.

Unit 2 & Slide 7

Advanced Project Management

Syllabus : Unit -3

Project Monitoring General aspects of project monitoring, Importance of project monitoring and control,

Monitoring and control method, Project monitoring activities, Project monitoring process,

Project Monitoring Steps, Monitoring and control techniques, control with Gantt Chart, Earned Value
Analysis

Unit 3 & Slide 1 Centre for Distance and Online

Definition of project monitoring

Project monitoring is defined as a process which is performed to track the progress of project execution so
that potential problems can be identified well in time for the taking of the corrective actions for the purpose of
controlling the execution of the project.

It is a continuing function during project implementation which provides management of an ongoing

development intervention with indications of the extent of progress and achievement of objectives and
progress in the use of allocated funds.

It is a key part of project cycle management. It is to be built into the project at the planning stage.

It is not an ‘add on’ tool which can be used during mid-way of the project implementation. On the other hand, it
is to be woven throughout the project.

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Some key Points

 Project monitoring provides opportunities at regular predetermined points to validate the logical progress of
the project, its activities and their implementation and to make adjustments as needed.

 Information from monitoring needs to be used to encourage improvements or reinforce plans.

 Information from systematic monitoring also provides critical input for project evaluation.

 Project monitoring provides records of activities and results, and signals problems to be remedied along the
way. It is normally descriptive in nature and does not explain why a particular problem has arisen, or why a
particular outcome has occurred or failed to occur.

 It helps the management for the fine-tuning of the implementation activities, reorientation of the project
implementation by making appropriate changes in future planning.

 Without effective monitoring it is normally impossible to judge if work is going in the right direction, whether
progress and success can be claimed and how further efforts can be improved.

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Project monitoring activities involve

(i) the monitoring of actual project progress as compared to the planned project progress and the collection of key
progress metrics such as risks, issues, changes and dependencies, and

(ii) the reporting of project status, costs and outputs and other relevant information, at a summary level, to the
management. The format and timing of project monitoring and reporting varies in each organization and also
depends upon such items as the size, duration, risk and complexity of the project.

Project monitoring is carried out

(i) measuring progress of project activities against established schedules and indicators of success,

(ii) identifying factors affecting the progress of project activities,

(iii) measuring the response of the decision taken on the project activities and its effect on the progress of project
implementation
(iv) to minimize the risks of project failure.

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Unit 3 & Slide 5
What is a Gantt Chart?

Polish engineer Karol Adamiecki IN 1800 developed a visual work flow chart that he called a
"harmonogram."

In around 1910, Henry Gantt, a management consultant and engineer, took Adamiecki's concept to
the next stage.

His chart was designed to help manufacturing supervisors see whether their work was on, ahead of,
or behind schedule, and it formed the foundation of the tool we use today.

Gantt charts convey this information visually. They outline all of the tasks involved in a project, and
their order, shown against a timescale. This gives you an instant overview of a project, its associated
tasks, and when these need to be finished.

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Step 1: Identify Essential Tasks

Gantt charts don't give useful information unless they include all of the activities needed for a project
or project phase

To start, list all of these activities. Use a work breakdown structure

If needed establish what the tasks are. Then, for each task, note its earliest start date and its estimated
duration… Example

Task Length
A. High level analysis 1 week
B. Selection of server hosting 1 day
C. Configuration of server 2 weeks

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Step 2: Identify Task Relationships

In Gantt charts, there are three main relationships between sequential tasks:

•Finish to Start (FS) – FS tasks can't start before a previous (and related) task is finished. However, they can start
later.

•Start to Start (SS) – SS tasks can't start until a preceding task starts. However, they can start later.

•Finish to Finish (FF) – FF tasks can't end before a preceding task ends. However, they can end later.

A fourth type, Start to Finish (SF), is very rare.

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Step 3: Input Activities Into Software (MS Project, Excel, Gantto etc. ) Or
create a Template

Step 4: Chart Progress

Unit 3 & Slide 10

What is Earned Value Analysis?

Earned Value Analysis (EVA) is a method that allows the project manager to measure the amount
of work actually performed on a project beyond the basic review of cost and schedule reports.

EVA provides a method that permits the project to be measured by progress achieved.

The project manager is then able, using the progress measured, to forecast a project’s total cost
and date of completion, based on trend analysis or application of the project’s “burn rate”.

This method relies on a key measure known as the project’s earned value.

The term “earned value” is defined as the “budgeted cost of worked performed” or BCWP. 

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EVM Foundational Concepts

Earned Value Management Systems allow the project manager to answer the following three questions, as they
relate to the project:

1.Where have we been?

2.Where are we now?
3.Where are we going?

In Earned Value Management, unlike in traditional management, there are three data sources:
•– the budget (or planned) value of work scheduled
•– the actual value of work completed
•– the “earned value” of the physical work completed

Earned Value takes these three data sources and is able to compare the budgeted value of work scheduled with
the “earned value of physical work completed” and the actual value of work completed.

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Planned Value

Planned Value describes how far along project work is supposed to be at any given point in the project schedule
and cost estimate. Planned Value (PV). PV can be looked at in two ways: cumulative and current.

PV, also known as Budget Cost of Work Scheduled (BCWS), can be defined as:

1.Define Scope: What you are tasked to do (Scope Statement)

2.Assign Scope: Breakdown scope into manageable parts (WBS)

3.Schedule Scope: Time-phased, logic driven with critical path (Project Schedule)

4.Budget Scope: develop cost (budget) for all approved scope (Performance Measurement Baseline)

5.Baseline: Snap-shot in time, frozen. What performance measurement will be based upon

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Actual Costs
Actual Cost (AC), also called actual expenditures, is the cost incurred for executing work on a project.

This figure tells you what you have spent and, as with Planned Value, can be looked at in terms of cumulative
and current.

Cumulative AC is the sum of the actual cost for activities performed to date.

Current AC is the actual costs of activities performed during a given period.

This period could represent days, weeks, months, etc. AC is also called Actual Cost of Work Performed
(ACWP).

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How to calculate earned value

Earned value (EV), also called budgeted cost of work performed (BCWP), measures the accuracy of a
budget in relation to the project's completion.

EV is essential to EVA, and project managers can calculate and track it easily. Here's the formula for
calculating EV:

Earned value = % of completion x project budget

For example, if you have a project budget of $4 million and your team has completed 20% of your
project, you would multiply $4 million by 20% for an earned value of $800,000.

If your team has spent $800,000 or less on the project so far, you can confirm the project aligns with
the budget.

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Syllabus : Unit -4

Project Quality Management Project Quality Management Plan ,

identifying quality metrics and standard measures for project processes, regulatory compliance
requirements, product functionality, documentation, etc.,

Development of Quality management plan, Process improvement plan,

Quality metrics, Quality checklists, Project documents

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What is quality in Project management?

For project management, quality is simply what the customer or stakeholder needs from
the project deliverables.

By keeping the definition tied to the customer or stakeholder, quality management can
have a narrower focus, which means it's more likely to achieve its goals.

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What is the definition of “quality” in “project quality management”? 

The definition of quality is central to understanding these three processes. To be able to define quality, you
need to be clear about the meaning of the following terms:

•Validation: assurance that the product meets the agreed-upon needs

•Verification: compliance with requirements

•Precision: repeatable measures in a tight grouping

•Accuracy: closeness of a measure to the true value

•Tolerance: range of acceptable results

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What are the different phases in project quality management? 

Project quality management consists of three major processes:

1.Quality management planning: This involves identifying the quality requirements and standards for the project and
product. The goal of the project quality management should be clearly shared with all stakeholders, and appropriate tasks
should be delegated to those responsible.

2.Quality assurance: This involves auditing the quality requirements and quality control results to ensure appropriate
quality standards are used. When standards are not met or goals aren’t achieved, necessary steps and corrective actions
should be employed to fix these issues.

3.Quality control: This involves monitoring and recording the results of quality activities to assess performance and
recommend necessary changes.

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Project Quality Management Project Quality Management Plan

A quality management plan is an essential component to delivering a successful project

for your stakeholders.

But it’s not just one project that benefits from a quality management plan.

Customers expect consistency, and by having a plan in place to maintain a quality

production for whatever product or service you’re manufacturing, you can consistently meet
their quality expectations.

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Who’s Involved in Planning, Executing and Maintaining a Quality Management Plan?

A quality management plan is created by the project manager, who can seek guidance from some team members,
stakeholders and customers.
Everyone on the project team has some role to play in order to make sure that deliverables meet quality
expectations:

•The Project Manager: The PM develops the quality management process in order to make sure all deliverables
meet quality expectations.

•Team Members: The team is responsible for meeting the quality expectations of the plan as they execute their
tasks by following the standards designed by the project manager.

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Who’s Involved in Planning, Executing and Maintaining a Quality Management Plan?

•The Organization: The org standardizes quality controls across all projects and makes sure that its staff is
trained with the skills needed to deliver quality products or services.

•Stakeholders: Stakeholders need to explain clearly what their quality expectations are and they are responsible
for approving the delivery of that product or service.

•Customers: Customers and users should be consulted like stakeholders if the project is designed to create a
product or service for customers.

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A general framework for quality management plans includes four elements:

1.Quality policy — This expresses the intended direction of a performing organization with regard to quality.
One of the best examples of a clear, concise quality policy (though probably not so named at the time) is “We
shall build good ships here; at a profit if we can, at a loss if we must, but always good ships” (Collis P.
Huntington, Newport News Shipbuilding and Dry Dock Company, 1893).
The project team may simply apply the existing organizational quality policy, but only if it is a good fit. Needs of
the project may demand a quality policy that is more specific than a generally stated organizational quality
policy.

2. Who is in charge? — This question is one of three that lie at the heart of quality management. The answer is
neither trivial nor simple; it is not just the name of the project manager. A complete answer — one essential to
project success — addresses project and organizational infrastructure and describes participants, reporting
chains, and responsibilities. There are few more certain paths to project failure than an ambiguous collection of
participants in which everyone is in charge, but no one is responsible.

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3. Where are we going? — Managing quality effectively depends on specific performance targets.

Goals provide broad descriptions of what the project is expected to achieve.

Requirements provide more detailed descriptions. Operational definitions, which describe what something is
and how it is measured, provide the means for understanding goals and requirements that may be vague or
ambiguous.

4. How are we going to get there? — The answer to this question should address processes, resources, and
standards.
Processes define the things the project team will do to meet requirements and achieve project goals.

The quality management plan may include a lengthy list of processes covering many different aspects of
project work. Resources include money, people available, participating organizational elements, tools to be
used, and, of course, the budget that provides funding for all quality activities.

Standards to be applied to project work are an important element of this part of the plan.

Unit 4 & Slide 9

The set includes the seven basic tools of quality described by Ishikawa in his book Guide to Quality Control.

◆ Check sheet

◆ Graph

◆ Histogram

◆ Pareto chart

◆ Scatter diagram

◆ Control chart

◆ Cause and effect diagram

Unit 4 & Slide 10

Check Sheet A check sheet is a simple yet powerful tool for collecting data. It is used to compile and record data from
contemporaneous observations or historical data, nothing more. Using a check sheet involves four steps:

1. Define events and data. It is important to describe precisely what will be collected and to establish the boundaries of the
collection effort. Failure may result in collecting the wrong data, not enough data, or irrelevant data.

2. Decide who, what, when, where, how, and why. These aspects of the collection effort are essential to its ultimate success.
Who collects the data establishes responsibility.
What data will be collected is determined by adding detail to the definition of events and data in the previous step
When and where aspects determine the conditions under which the data will be collected.
How aspect describes the collection method and specific instructions for use of the check sheet.
Why aspect, is so that data collectors may understand the goal and may then respond appropriately to unexpected situations.

3. Design the check sheet. The check sheet should be clear and easy to use. Instructions and terms should be unambiguous.
Physical layout should facilitate easy navigation by users and should follow the logical order of the collection sequence of
actions.
4. Collect data. When all preparations are complete, take action to collect the data

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Unit 4 & Slide 12
Graphs- These are one of Ishikawa’s seven basic tools. The purpose of a graph is to organize, summarize, and display
data, usually over time. Ishikawa described three different types of graphs, including line graphs, bar graphs, and circle
graphs. Four steps are involved in preparing graphs

Histograms A histogram is a type of bar graph that deals with data that exist in a continuous range from a low number to
a high number. Histograms display frequency distribution, or how often (frequency) individual data points occur across
the range of the data from low to high (distribution). Histograms summarize data in a form that is more easily
understood than a table of collected numbers

Pareto Charts A Pareto chart is a helpful tool to identify the greatest opportunity for improvement among a number of
possibilities and to identify the small number of most influential causes (the “vital few”) among the complete set of
possible sources of error. It is named for Vilfredo Pareto, an Italian economist, who determined through study that
wealth seems to be distributed in populations according to an 80/20 rule: 80 percent of the wealth is controlled by 20
percent of the population. This rule also seems to be valid for defects in administrative and production processes: 80
percent of the defects are caused by 20 percent of the possible sources of error.

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Scatter Diagrams

A scatter diagram identifies possible

relationships between two variables.
Understanding relationships among data
elements is essential to understanding the data
as a whole.

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Control Charts –These are very powerful tools for monitoring, controlling, and
improving processes over time. They are one of the most complex quality tools and
probably the most little used outside of manufacturing domains. Control charts are
applicable to administrative processes. These are useful to analyze repeatable
processes in which results are expected to be stable over time.
It is a mistake to attempt to apply control charts to processes in which results may
change over time.
Control charts:

◆ Disclose the nature of variation in the process

◆ Indicate what should be expected
◆ Indicate what lies outside of expectations

Unit 4 & Slide 15

How to Create a Quality Management Plan for a Project

1. Plan Development of Quality Management Plan

Identify the quality objectives of your customers by researching and interviewing them.

Get them to express their needs clearly and objectively.

Then, you’ll look at the professional standards around your product or service, such as legal, environmental, economic,
code, life safety and health.

2. Execute the Quality Management Plan

Execute tasks in accordance with the approved quality management plan and standards.

Communication is essential during this phase, in order to respond quickly to changing dynamics in the project.

Document everything and explore them in a lessons-learned meeting after the completion of the project.

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3. Perform Quality Checks
In order to make sure you’re meeting quality objectives, it’s imperative to perform quality checks,
Technical reviews,
Management oversight and verification that quality standards are being met.

Check them against your customer quality objectives. Project managers will report these findings to stakeholders
in regular meetings. Continuous improvement is the goal of this process.

4. Take Corrective Action

If, during monitoring for quality in your project, you capture anomalies,

it’s necessary for you to respond in order to bring the project back to its quality baseline.

Document these changes, as such quality improvements could alter the quality management plan, procedures
and resources allocation.

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1. Productivity
This metric looks at overall capabilities of a company—how well it uses its resources. Productivity shows the
relationship between inputs and outputs. How much are you getting out after all that you put into a project?
The ideal productivity outcome is creating more for less.
Productivity = Units of Input/Units of Output

2. Gross Profit Margin

Numbers speak louder than words. Metrics directly tied to the bottom line communicate success or failure
more quickly than other metrics. 
The higher the margin, the better the business is doing. Any program or work performed should contribute to
the financial profit of a business. Margin is the percentage of each dollar earned after costs have been
subtracted.
Gross Profit Margin = (Total Profit-Total Costs)/100

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3. Return on Investment (ROI)
Return on investment specifically looks at the dollar amount earned for the amount invested in a project. Like gross margin,
this is a financial equation. Instead of looking at overall profit, it looks at the specific benefit from the project divided by the
costs.
To use this metric, a dollar amount needs to be assigned to each unit of data to determine the net benefits—benefits may
include contribution to profit, cost savings, increased output, and improvements. Costs may include resources, labor, training,
and overhead.

ROI = (Net Benefits/Costs) x 100

4. Earned Value
Earned value provides strategic guidance by showing how much value you have earned from the money spent to date on a
project. It compares the value of the work completed by a specific date in relation to the approved budget for the project.
Earned value is also called Budgeted Cost of Work Performed (BCWP). This metric provides a reality check during the
process of a project.
Earned Value (EV) = % of Completed Work / Budget at Completion (BAC)

Unit 4 & Slide 20

5. Customer Satisfaction
A customer satisfaction score provides a measure of quality for your service or product. Customer survey data results guide this metric. The
Center for Business Practices outlines this as a score on a scale from one to 100.
Each company can develop a score unique to its business by weighing each variable based on its importance. Variables may include
customer survey results, revenue generated from clients, repeat or lost clients, and complaints. 
The Customer Satisfaction Index (CSI) is the most widely used system for measuring customer satisfaction. The Net Promoter Score
(NPS) is another method to capture customer satisfaction.

NPS reveals customer loyalty = Promoters – detractors .

Customer Satisfaction Score = (Total Survey Point Score / Total Questions) x 100

6. Employee Satisfaction Score

Similar to customer satisfaction, survey data determines the employee satisfaction score.  
A satisfied employee creates better work more efficiently. The high costs of employee turnover—totaling 50% to 200% of an employee’s
salary—should be motive enough to pay attention to the people closest to the project.

The Gallup Q12 Employee Engagement Survey is a popular tool to collect employee data. An Employee Satisfaction Index (ESI) processes
results into an index score.
Employee Satisfaction Score = (Total Survey Point Score / Total Questions) x 100

Unit 4 & Slide 21

7. Actual Cost

The Actual Cost is a simple number that shows how much money is spent on a project—not an estimate. This
cost is determined by adding up all the expenses for a specific project over the timeline.
Actual Cost (AC) = Total Costs per Time Period x Time Period

8. Cost Variance

Cost variance shows the difference between the planned budget and actual costs within a specific timeframe. Is
the estimate above or below the actual costs? A project is over budget if the cost variance is negative. A positive
cost variance shows a project is under budget.
Cost Variance (CV) = Budgeted Cost of Work – Actual Cost of Work

Unit 4 & Slide 22

9. Schedule Variance
Schedule variance looks at budgeted and scheduled work. Is the project running ahead or behind of the planned
budget?
The schedule variance is the budgeted cost of work performed minus the budgeted cost of work scheduled—the
difference between work scheduled and completed. A negative schedule variance means the project is behind
schedule.
Schedule Variance (SV) = Budgeted Cost of Work Performed – Budgeted Cost of Work Scheduled

10. Cost Performance

Cost performance is a cost efficiency metric. Divide the value of the work actually performed (earned value) by
the actual costs it took to accomplish the earned value. Forecasting cost performance allows for accurate budget
estimations.
Cost Performance Index (CPI) = Earned Value / Actual Costs

Unit 4 & Slide 23

11. Schedule Performance Index (SPI): This measure is similar to SV It is often preferred as it translates the
numbers into a value that is easily compared across tasks or projects.

• The SPI calculation is: SPI = EV/PV. When SPI is above 1.00, you’re ahead of schedule.

• If it’s below 1.00, you’re behind. To take the example from above, SPI would be 1/2 = 0.5.

• Using SPI is different than simply comparing your progress against your baseline. Comparing your actual
schedule against your plan may indicate you’re behind on two tasks. So, you know where your immediate
problem is, but not necessarily how it impacts the overall project or your expected completion date.
• Using earned value, you can calculate your SPI both by task and for the project as a whole. When you take
the SPI for each task and look at the bigger picture, you can see that your project is ahead of schedule, even
with two late tasks.

• This helps you better understand the overall impact of the late tasks on the project.
12. A Requirements Traceability Matrix (RTM).

• This maps, or traces, the project’s requirements to the deliverables.

• The matrix correlates the relationship between two baseline documents. This makes the project’s tasks
more visible. It also prevents new tasks or requirements being added to the project without approval.

• This makes the project’s tasks more visible. It also prevents new tasks or requirements being added to
the project without approval.
Why Use Process Improvement Tools

Every organization, there are hundreds or even thousands of processes that teams follow to plan, execute,
and deliver their work.

Whether you’re onboarding a new employee, fulfilling a customer order, or developing a new feature for
your product, you likely follow a process.

In order to consistently meet the demands of customers in an ever-evolving world, organizations have to be
able to evolve those processes. But understanding how to improve existing processes, and how to implement
those changes successfully, is a process in itself.

Without some structure or framework for how to map out, analyze, and improve upon our processes, it can
be difficult to affect real change or know where to begin. This is where process improvement tools can be
helpful.
Process Improving
There are three main categories of process improvement tools:
• Tools used for process mapping
• Tools used to solve problems
• Tools used to improve processes

Process mapping
• Process mapping tools, such as value stream mapping, are used to define each of the steps in our processes.

Problem solving
• Problem solving tools, such as a cause and effect analysis or the 5 Whys, are meant to help you get to the root cause of a
problem and identify potential solutions.
Improving processes
• Finally, tools meant to improve processes are just that: Tools to take an existing process, and make it faster, more efficient,
etc.
Cause-and-Effect Chart for Flight Departure
Delays

This diagram is sometimes called a “fishbone

diagram” because of its shape and sometimes
called an “Ishikawa diagram” in honor of its
developer, Dr. Kaoru Ishikawa.

It is used to identify, explore, and graphically

display all possible causes related to a problem,
including root causes

Unit 4 & Slide 16

• Pillar Diagrams –
• Sometimes a project team may want to analyze a
situation in which multiple problems are related to
multiple causes, all of which are generally known or can
be identified readily and exist in limited number.
• A pillar diagram allows a project team to do just that. A
pillar diagram is a combination of a cause and effect
diagram and another quality tool, the interrelationship
digraph.
• It addresses multiple problems and it shows
relationships among a limited set of causes and results.
An interrelationship digraph is used to determine
relationships among all contributing elements of a
system.
• The purpose of a pillar diagram is to identify root
causes related to multiple results. To create a pillar
diagram
SIPOC diagram
• A SIPOC diagram is a Six Sigma tool used for documenting business processes. It provides
a birds’ eye view of everything involved in a process or set of processes: Suppliers, Inputs,
Process, Outputs, and Customers.
• To create a SIPOC diagram, start by creating a column in a table with each of the following
labels:

Suppliers Inputs Process Outputs Customers

Then, work with your team to fill in each of the columns for the process you’re trying to map out.
5 Whys
• The 5 Whys is among several process improvement tools that can be used for problem solving.

• Whereas a fishbone diagram encourages divergent thinking, the 5 Whys helps teams zero in on
a specific root cause for the problem they’re trying to solve.

• The answer to each additional “Why?” helps teams drill down a bit further, until both the nature
of the problem becomes clear.

• It’s important to first make sure that you have clearly identified the problem before beginning
this or other process improvement tools focused on problem solving.
Error-proofing / Poka-Yoke

• Error-proofing, or poka-yoke, is a process improvement tool rooted in Lean manufacturing.

• Poka-yoke is a Japanese term referring to any mechanism in a process or product that helps a person prevent mistakes.
• If you drive a car, you’ve experienced error-proofing in action: For example, if you try to turn off your ignition without
first putting your car in “park,” your car will sound a warning noise until you have shifted into park.
• Many tools with rotating blades will not operate unless all safety measures are in place – for example, a high-speed
blender that will not operate unless the top is securely on. All of these are examples of error-proofing.

• Contact method: Contact methods involve testing/inspecting for product parameters and other physical attributes such
as size, shape, color, etc. to identify if any error exists.
• Motion or sequence method: The motion method determine that whether the defined sequence of operation has been
followed. 
• Counting or Fixed-value method: The counting method alerts the machine operator if the number of items,
movements, or events is not followed or made.
Q1. You are the project manager on a project that has Rs 8 Cr, software development effort. There are two teams
of programmers that will work for six month for a total of 10,000 hours. According to the project schedule your
team should be done with 38% of the work. As of today, the project is 40% complete while 50% budget has been
used. Calculate and share your conclusion

• Solution : Budgeted Actual Cost(BAC) = Rs. 800,00,000 (given) Actual Cost(AC) = Rs.400,00,000 (50% budget used)
• Planned Value(PV) = BAC * Planned % Complete = 800,00,000 * 38 % = Rs 304,00,000
• Earned Value(EV) = BAC * Actual % Complete = 800,00,000 * 40 = Rs 320,00,000
• Cost Variance(CV) = EV – AC= 320,00,000 – 400,00,000 = -8000,000
• Cost Performance Index (CPI) = EV / AC= 320,00,000 / 400,00,000 = 0.8 or 80 %
• Scheduled Variance (SV)= EV – PV= 320,00,000 – 304,000 = 16,000
• Scheduled variance index (SPI) = EV / PV= 320,000 / 304,000 = 1.05 or 105 %
• Since CPI is less than 1, the project is over budget
• And since SPI is more than 1, the project is ahead of schedule
 Activity Chart : TEAM A
Activity Durations No Of Cost Per Total Cost
hours (%) day (Rs)
(Rs) Planned Value(PV) = BAC * Planned % Complete =
A 1 month 1666 (16) 13,33,333 1408000 800,00,000 * 38 % = Rs304,00,000

B 2 month 3333(33) 26,66,667 1408000

C 3 month 5000 (50) 40,00,000 1408000 Earned Value(EV) = BAC * Actual % Complete =
800,00,000 * 40 = Rs 320,00,000
D 4 month 6666 (66) 53,33,333 1408000
E 5 month 8333 (83) 66,66,667 1408000
Cost Variance(CV) = EV – AC
F 6 month 10000(100) 800,00,000 1408000 = 320,00,000 – 400,00,000 =-8000,000
TOTAL 800,00,000

Assumptions : Work for 8 hours a day for 22 days in a month

• Cost Performance Index (CPI) = EV / AC= 320,00,000 / 400,00,000 = 0.8 or 80 %

• Scheduled Variance (SV)= EV – PV= 320,00,000 – 304,00000 = 16,00000

• Scheduled variance index (SPI) = EV / PV= 320,00000 / 304,00000 = 1.05 or 105

%

Conclusion
• Since CPI is less than 1, the project is over budget
• And since SPI is more than 1, the project is ahead of schedule
 Syllabus: Unit-5

Project Audit Quality Assurance - analyzing project quality, improve project quality, checking whether
the quality standards are met, Quality control measurements,

Work performance information, checking Project management plan, Project documents updates,
Organizational process assets updates

Unit 5 & Slide 1

Quality Assurance vs. Quality Control

•Quality assurance creates the systems to measure and control quality, in order to create
confidence that quality products will be produced.

•Quality control measures the quality level of individual products/deliverables, and accepts/rejects

them based on the criteria developed by quality assurance.

If you’re measuring the outputs, it’s QC.  If you’re measuring the process, it’s QA.

Quality Control Data is an input into the Quality Assurance process, since the processes to measure
quality might need to change to provide better assurance of quality.

Unit 5 & Slide 2

Audit Project Quality

A quality Audit is a standard, systematic review of project activities to recognize whether these activities
are executed in line with business processes and tactical decisions.

The goal of executing a project quality audit is to show the missing or inefficient policies, procedures
and/or processes that decreases quality levels and increases the probability of project failure.

During a supervised conventional quality audit session under Project Manager can review

1)Quality metrics such as defect frequency,

2)Budget deviation, failure rate,

3)On-time performance, and gauge project activities against the quality baseline.

Unit 5 & Slide 3

Audit Project Quality

Auditing quality permits recognition and correction of any deficiencies in project activities.

As a process it leads to minimize cost of quality management and highly improved product acceptance
and customer satisfaction.

The Quality Assurance activity generates

1)A formal confirmation document that proves required changes to the execution process

2)Acts as a foundation for formulating corrective actions.

3) Acts as process assets for the organization to be used as policy formulation or as guidance
tools for other projects

Unit 5 & Slide 4

THE THREE ELEMENTS OF QUALITY ASSURANCE (QA)

QA consists of three crucial elements: objectives, specifications, and measurement

.

1.Objectives are closely tied to business goals and business strategy.

2.Specifications describe how you translate goals into specific actions for job roles within a certain context.

3.Measurement is a part of QA that provides a clear link between projections and realization. 

Unit 5 & Slide 5

Quality Assurance Audits

Quality systems should be consistently audited to ensure the processes being used are producing quality products. 
These audits involve:

•Analyzing quality control data to determine if quality problems exist (and revising the minimum quality standards
if necessary).
•Identifying process improvements that will increase quality.
•Performing root cause analysis to determine necessary improvements.

•Determining preventative actions to deter future quality issues.

The project management team should always be on the lookout for improvements to the processes being used. 
The root causes can often be difficult to determine, so it is important to perform the necessary background
research.

Unit 5 & Slide 6

ASSURANCE REVIEWS

• Audits tend to focus on conformance and compliance, while assurance reviews are used as an assurance
tool by senior managers to determine whether a programme/project should continue.

• Without reviews, the findings of audits or other forms of assessment cannot be evaluated properly by
leadership.

Review activities include

• Inspection of information, meetings with key individuals or attendance at any meeting where decisions that
affect the efficiency of the programme are taken. The review should determine:
• How well the programme is controlling and enabling its projects, and whether the level of overhead is
appropriate?
• Are internal processes and governance strategies working effectively and optimally for the purpose of the
programme.

Unit 5 & Slide 7

Develop a Quality Assurance Plan

Quality Assurance activities includes planning the overall process for assuring quality.

Its purpose is to

1)Formulate a Quality Assurance plan template which is a highly efficient tool to assure quality in a
project and surveil problems and drawbacks that may come up during the project execution process.

The quality team is required to utilize such a plan to do the rest of the Quality Assurance activities, such
as Audit and Analysis.

The fundamental steps in creating a Quality Assurance plan template are sequential and start off with
setting up goals of project assurance as to why the project would need Quality Assurance.

Unit 5 & Slide 8

Develop a Quality Assurance Plan

The next step would be to designate responsibilities to members of the quality team and decide the hierarchy of
management such as who will carry out the Quality Assurance activities.

Following steps can be used

• Collect the relevant project standard information

• Define compliance criteria such as how to make Quality Assurance.

• Recognize a set of measurements and metrics to be utilized

• Use the metrices to gauge quality levels and performance which involves checking whether the project is
performed under appropriate quality levels.

Unit 5 & Slide 9

Checking whether the quality standards are met?

To ensure effective decisions are made during the assurance process, accurate data and analysis of reliable information
is required. The following activities will ensure effective measures are in place:

• Baselining- To measure progress and assess performance, inputs, resources, activities, and outputs prior to any planned
change activity need to be measured. These will form the baseline.

• Analysis and review of data against baseline- Similar data will be taken at different points throughout the programme’s
and projects lifecycle.

• Effective decision-making- Assurance should ensure that measurements, analysis procedures, and systems are effective.
There are two types of measurements:

• Those concerned with the management and control, e.g. cost and budget reports

• Those concerned with the outcomes to assess whether acceptable benefits are materialising.

Unit 5 & Slide 10

FOUR LINES OF DEFENCE The 'four lines of defense' model is essentially the same as the ‘three lines of defense’
assurance model but adds in a fourth line: the external assurances provided by an external organization.

Each line or group is responsible for effective assurance or risk management. The four lines of defense are:

• First line (Project): Assurance comes directly from those responsible for delivering specific objectives or processes. It
may lack independence but its value is that it comes from those who know the business, culture and day-to-day
challenges.

They own and manage the risks. The first line monitors and controls at a project level, using the specified governance
frameworks, tools and templates and reports against baselines for cost scope time and budget.

• Second line (Programme): The way the organization oversees the control framework so that it operates effectively.
The assurance provided is separate from those responsible for delivery, but not independent of the management chain.
They oversee the risks. The second line ensures compliance, by the first line of defense, and reports upwards on
deviations

Unit 5 & Slide 11

• Third line (PMO): Objective and independent assurance, providing reasonable (not absolute) assurance of the
overall effectiveness of governance, risk management and controls. The third line provides independent assurance

• Fourth line (P3M3-Portfolio, Programme, and Project Management Maturity Model ):

1)Assurance from external independent bodies such as the external auditors and other external bodies.

2) External bodies may not have the existing familiarity with the organisation that an internal audit function has, but
they can bring a new and valuable perspective.

3) Additionally, their outsider status is clearly visible to third parties, so that they can not only be independent but be
seen to be independent.

Each line of defence has a purpose and can provide robust assurance. There is no one line which provides better
assurance than any of the others. A range of assurance activities from across all lines of defence will add value.

Unit 5 & Slide 12

Unit 5 & Slide 13
Work Performance Information

Work performance information is the raw data of the project’s status. It refers to what percentage of work has
been completed, how much time has elapsed, the cost incurred, and more.

It provides us with the current status of the project. You use this information to create work performance
measurements and then the work performance report.

A few examples of work performance information are as follows:

•How much of the work has been completed?

•What is the schedule’s progress?
•What cost has been incurred to date?
•What are the quality metrics of the product?
•What is the risk status?
•What is the procurement performance?

Unit 5 & Slide 14

Work Performance Measurements
Once you get the status, you compare it with your planned progress and come up with work performance
measurements. They are the comparison between the planned progress and the current status of the project.

Schedule Performance –In this we compare the planned schedule with the actual schedule.
For example, for an activity that was scheduled to be completed in five days, work performance measurements show
how long it actually took to complete.
Cost Performance –In this we compare your planned expenditure with the actual expense.
For example, what was the planned cost for the activity, and how much did you actually spend to complete it?

Quality Performance –In this we compare the planned performance with the actual performance.
For example, you will measure how many defects, tolerance, and threshold were allowed and how many occurred.

Risk Performance –In this we see the effectiveness of your risk management plan.
For example, you will see how many risks have occurred, versus your identified risks, how effective your risk response
plan was, etc.
Procurement Performance –In this we compare the seller’s actual performance against the planned performance.

Unit 5 & Slide 15

 It has been highlighted where enterprise environmental factors, organizational process assets, work
performance data, information and reports, as well as change requests are used.

However, the Project Management Body of Knowledge (PMBOK® Guide) has improved the Project
documents by hiding specific inputs and outputs under the generic heading “project documents”.
The project documents inputs and the project documents updates outputs have a certain logic to them.

 One will need to understand the process well and ask yourself if such an input or output would be plausible.

The only thing we can say for definite about project documents is that project documents are always
inputs and project documents updates are always outputs.
Project Document

Activity Attributes Project Team Assignments

Activity List Quality Control Measurements
Assumption Log Quality Metrics
Basis of Estimates Quality Report
Change Log Requirements Documentation
Cost Estimates Requirements Traceability Matrix
Cost Forecasts Resource Breakdown Structure
Duration Estimates Resource Calendars
Issue Log Risk Register
Lessons Learned Register Risk Report
Milestone List Schedule Data
Physical Resource Assignments Schedule Forecasts
Project Calendars Stakeholder Register
Project Communications Team Charter
Project Schedule Test and Evaluation Documents
Project Schedule Network Diagram Project Team Assignments
Project Scope Statement   Project Documents for the PMP Exam (
velopi.com)
What are Organizational Process Assets (OPA)?

Most organizations have developed a range of templates, contracts, registers, and assessment tools to assist
the management of their projects.

Organizations have also acquired knowledge in the form of lessons learned—and the organization’s knowledge
base that can be very useful.

Organizational Process Assets would include anything the organization has acquired that you can use in the
management of the project.

They include formal and informal plans, policies, procedures, and guidelines. These are very important for the
planning stage, irrespective of the nature of the project. Whether your project is long-term or short-term, OPAs
are a must. 
Common OPAs:

•Standardized guidelines
•Proposal evaluation criteria

•Work breakdown structure templates

•Project schedule network diagram templates

•Risk templates

•Organizational standard processes

•Project closure guidelines

•Defect management processes

•Lessons learned and historical databases

•Change control procedures

•Financial control procedures

•Project files
Project Human Resource Management

Develop human resource plan with the help of Activity resource requirements, Enterprise environmental factors,
Organizational processes

Acquire project team - Project staff assignments, Resource calendars, Develop project team - improving the team
efficiency, team member interaction and enhancing overall team and project performance

Manage project team - tracking team member performance, resolving issues, Communication Management: Organizing
for Communication, Feedback communication. Reporting system

Unit 6 & Slide 1

Planning for the human resource is a crucial project management process where it refers to the process of determining and
documenting the project roles, required skills, responsibilities and relationship of the project team members.

It is also involved in creating the staffing management plan.

This particular project management process is under the Project Human Resource Management  which is responsible for
organizing, managing and leading the project team.

It is an important process because  it helps the project manager determine the type of team members he or she should
welcome based on what was indicated in the Plan Human Resource Management documentation.
After employing individuals to work for your company, you must create a proper Project Management procedure that
allows feedback and maximum productivity to occur.

A staffing management plan or process is ultimately a document that explains the various

human resources requirements that will be met for both staff management and employees alike.

The plan is essentially a portion of the project management plan in which allows projects to be successful by properly
managing various teams to complete tasks effectively and efficiently.

A project management plan is created to showcase specific target goals as well as project deadlines for various tasks
that your company may need to complete.
 A staffing management plan can be created in two ways – whether informal and broad, or formal and details, each
staffing management plan is tailored to the various needs of each specific project.

The information provided within said staffing management plan is determined by the application being completed as well
as the size of the project.

Thus, creating a staffing management plan that is tailored to your business is imperative to its overall success in your
daily operations.
• What is Project Human Resource Management?

• Making the most effective use of the people involved with a project

• Processes include
• Plan human resource management (Planning)
• Acquiring the project team (Executing)
• Developing the project team (Executing)
• Managing the project team (Control/Monitor)
Figure 9-1. Project Human
Resource Management
Summary
Ways to Influence that works and doesn’t work on Projects

• Projects are more likely to succeed when project managers influence with
• expertise
• work challenge

• Projects are more likely to fail when project managers rely too heavily on
• authority
• money
• penalty
• Organizational Planning

• Organizational planning involves identifying, documenting, and assigning

project roles, responsibilities, and reporting relationships

• Outputs and processes include

• project organizational charts
• work definition and assignment process
• responsibility assignment matrixes
• resource histograms
Using Software to Assist in Human Resource Management

• Software can help in producing RAMS and resource histograms

• Project management software includes several features related to human

resource management such as
• Assigning resources
• Identifying potential resource shortages or underutilization
• Leveling resources
Sample Organizational Chart for a Large IT Project
Work Definition and Assignment Process
• Responsibility Assignment Matrices
• A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as described in the
WBS to the people responsible for performing the work as described in the OBS
Sample RACI Chart

R = responsibility
A = accountability, only one A per task
C = consultation
I = informed
Staffing Management Plans and Resource Histograms
• A staffing management plan describes when and how people will be added
to and taken off the project team

• A resource histogram is a column chart that shows the number of resources

assigned to a project over time
Inputs into Acquiring Team
• Human Resource Plan

• Enterprise Environmental Factors

• Availability
• Competency
• Experience
• Interests
• Cost
Staff Acquisition
• Staffing plans and good hiring procedures are important in staff acquisition, as are incentives
for recruiting and retention

• Some companies give their employees one dollar for every hour a new person they helped hire
works

• Some organizations allow people to work from home as an incentive

• Research shows that people leave their jobs because they don’t make a difference, don’t get
proper recognition, aren’t learning anything new, don’t like their coworkers, and want to earn
more money
Resource Loading and Leveling

• Resource loading refers to the amount of individual resources an existing

project schedule requires during specific time periods

• Resource histograms show resource loading

• Over-allocation means more resources than are available are assigned to

perform work at a given time
Figure 8-7. Sample Histogram Showing an Overallocated
Individual
Resource Leveling

• Resource leveling is a technique for resolving resource conflicts by delaying

tasks

• The main purpose of resource leveling is to create a smoother distribution

of resource usage and reduce overallocation
Figure 8-8. Resource Leveling
Example
Improving Relationships Between Users and Developers

• Some organizations require business people, not IT people, to take the lead in determining
and justifying investments in new computer systems

• CIOs push their staff to recognize that the needs of the business must drive all technology
decisions

• Some companies reshape their IT units to look and perform like consulting firms
Figure 8-5. RAM Showing Stakeholder Roles
Team Development

• It takes teamwork to successfully complete most projects

• Training can help people understand themselves, each other, and how to work better in
teams

• Team building activities include

• physical challenges
• psychological preference indicator tools
• Planning Process Group: Developing the Project Team

• The main goal of team development is to help people work together more
effectively to improve project performance

• Team Development (progressive stages)

Developing the Project Team
DISC Profiles
• Also uses a four-dimensional model of normal behavior
• Dominance
• Influence
• Steadiness
• Compliance

• People in opposite quadrants can have problems understanding each other

Meyers-Briggs Type Indicator (MBTI)

• MBTI is a popular tool for determining personality preferences and helping teammates understand
each other

• Four dimensions include:

• Extrovert/Introvert (E/I)
• Sensation/Intuition (S/N)
• Thinking/Feeling (T/F)
• Judgment/Perception (J/P)

• NTs or rationales are attracted to technology fields

• IT people vary most from the general population in not being extroverted or sensing
Social Styles Profile
• People are perceived as behaving primarily in one of four zones, based on
their assertiveness and responsiveness:
• Drivers type
• Expressive type
• Analytical type
• Amiable type
• People on opposite corners (drivers and amiable, analytical and expressive)
may have difficulties getting along
Figure 8-9. Social Styles
Reward and Recognition Systems

• Team-based reward and recognition systems can promote teamwork

• Focus on rewarding teams for achieving specific goals

• Allow time for team members to mentor and help each other to meet project
goals and develop human resources
General Advice on Teams

• Focus on meeting project objectives and producing positive results

• Fix the problem instead of blaming people

• Establish regular, effective meetings

• Nurture team members and encourage them to help each other

• Acknowledge individual and group accomplishments

The Global IT Workforce

• Although there have been ups and downs in the IT labor market, there will
always be a need for good IT workers
• The Digital Planet 2010 study predicts that ICT spending will have an annual growth rate
of more than 6 percent each year through 2013, when it will reach almost $5 trillion

• Thirty-three percent of the world’s population is online, and 45 percent of

Internet users are below the age of 25
Conflict Handling Modes

1. Confrontation
2. Compromise
3. Smoothing
4. Forcing
5. Withdrawal
6. Collaborating

http://www.youtube.com/watch?v=6xCkhV7zhuw
• Conflict Can Be Good

• Conflict often produces important results, such as new ideas, better

alternatives, and motivation to work harder and more collaboratively

• Research suggests that task-related conflict often improves team

performance, but emotional conflict often depresses team performance
Common Sources of Conflict

• Work scope
• Resource assignments
• Schedule
• Costs
• Technical opinions
• Priorities of resource time
• Administrative procedures
• Responsibilities
• Personality clashes
Root Cause of Conflict

• The PM has final responsibility to resolve or manage any conflict that affects project
success.

For example, suppose two people are yelling at each other during a meeting. Asking them to not yell
fixes the symptom, but not the root cause of the conflict, which may be a difference of opinion
about an issue due to different assumptions being made by each person.
Five Dysfunctions of a Team
• The five dysfunctions of teams are
1. Absence of trust
2. Fear of conflict
3. Lack of commitment
4. Avoidance of accountability
5. Inattention to results

*Lencioni, Patrick, “Overcoming the Five Dysfunctions of a Team,” Jossey-Bass: San

Francisco, CA (2005), p. 3.
Improving Effectiveness - Covey’s 7 Habits

• Project managers can apply Covey’s 7 habits to improve effectiveness on

projects
• Be proactive
• Begin with the end in mind
• Put first things first
• Think win/win
• Seek first to understand, then to be understood
• Synergize
• Sharpen the saw
Empathic Listening and Rapport

• Good project managers are empathic listeners; they listen with the intent to understand

• Before you can communicate with others, you have to have rapport

• Mirroring is a technique to help establish rapport

• IT professionals often need to develop empathic listening and other people skills to improve
relationships with users and other stakeholders