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1. A Project is Temporary endeavor that produces Unique product or service in a non-repetitive way that elaborates progressively.

2. Operational Works are quite opposite in nature to Projects. They are continuous, and repetitive work and never produces a uniqueproduct.

3. Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet projectrequirements

4. A Program is group of related Projects Managed in a coordinated way. A Portfolio is group of associated Programs, Projects andother works to achieve strategic business goals. Larger Projects are divided in to more manageable sub projects

5. PMO, Project Management Office or Program Management Office is an organizational structure used to oversee management ofprojects. It also can be used to provide reports, as a mentoring group for other project managers.

6. Projectized, Matrix and Functional are different types of Organizational structures. Matrix organizations can be weak Matrix(Leaning towards functional) or Strong Matrix (leaning towards projects) or Balanced Matrix.

7. Project stakeholders are individuals or units those are directly or indirectly affected by Project outcomes. Sponsors, customers,users, performing organizations, project team members and influencers are stakeholders.

8. At the end of each project phase, reviews against a set of metrics are performed. If the project fails to meet these metrics, theproject may not be allowed to continue. These phase end reviews are called Stage gates or Phase exits.

9. Project Management process is iterative and cyclic. 4 steps in the process are "Plan", "Do", "Check", Act".

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10. Projects or Subprojects can be divided into discrete Phases to provide better management control or to assign specific skilledgroups. For example in a small construction project "Painting Phase".

11. Product life cycle span is much bigger than that of a Project. Organizations run many "Projects" with in a "Product".

12. Organizational cultures and styles will impact projects too.

13. At the beginning of the Project, Costs are low and Risks are High. Those percentages change as Project progresses. At theend Costs reach maximum and Risks will be zero

14. Project documents: PMBOK suggest managers to produce at-least 3 major documents for each project

1. Project Charter2. Project Scope Statement3. Project Management Plan. (Notice, MS Project Plan is just one section of the bigger document)

Process Groups & Knowledge areas

(Based on PMBOK 3rd Edition. For PMP Certification Exam preparation)

To manage Projects effectively those should be divided Phases and smallest possible sub phases. Thisiterative process should go up to the level where further division creates chaos rather than helping theproject. In database terminology we call this as "Atomic" level.

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Projects can be managed easily by Phased approach. PMBOK defined and explained processes to manage these sub atomic processes. As perPMBOK3rd edition

guide there are 44 processes and grouped in to 5 major Process Groups.5 Process groups are

1. Initiation2. Planning3. Executing4. Monitoring & Control

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5. Closing.

Certain INPUTS are given to the process. Managers use said TOOLS available for that process to produce OUTPUTS.PMBOK guide also defines Knowledge Areas for the Project Managers. Managers will use these skills (Knowledge) to work on given INPUTS usingTOOLS to produce OUTPUTS. Those are

1. Project Integration Management2. Project Scope Management3. Project Cost Management4. Project Time Management5. Project Risk Management6. Project Quality Management7. Project HR Management8. Project Communication Management9. Project Procurement Management

Effective Project Management requires knowledge and skills from following 5 areas

1. The Project Management Body of Knowledge (5 process groups and 9 knowledge areas)2. Application area knowledge, standards, and regulations

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3. Understanding the project environment4. General management knowledge and skills5. Interpersonal skills.

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Initiation Planning ExecutingMonitorin andControlling

Closing

Integration4.1 Develop Project Charter

4.2 Develop PreliminaryProject Scope Statement

4.3 Develop ProjectManagement Plan

4.4 Direct & ManageProject Execution

4.5 Monitor & ControlProject Work4.6 Integrated ChangeControl

4.7 CloseProject

Scope

5.1 Scope Planning5.2 Scope Definition5.3 Create Work BreakdownStructure (WBS)

5.4 Scope Verification5.5 Scope Control

Time

6.1 Activity Definition6.2 Activity Sequencing6.3 Activity ResourceEstimating6.4 Activity Duration Estimation6.5 Schedule Development

6.6 Schedule Control

Cost7.1 Cost Estimating7.2 Cost Budgeting

7.3 Cost Control

Quality 8.1 Quality Planning8.2 Perform Quality

Assurance8.3 Perform Quality

Control

HR9.1 Human ResourcesPlanning

9.2 Acquire ProjectTeam9.3 Develop ProjectTeam

9.4 Manage ProjectTeam

Communications 10.1 Communication Planning 10.2 InformationDistribution

10.3 Performance

Reporting10.4 ManageStakeholders

Risk

11.1 Risk ManagementPlanning11.2 Risk Identification11.3 Qualitative Risk Analysis11.4 Quantitative Risk Analysis

11.6 Risk Monitoringand Control

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Integration Management Knowledge Area(Based on PMBOK 3rd Edition. For PMP Certification Exam preparation)One of the major & important roles performed by Project Manager is to integrate different pieces developed by the teams of theProject. This task will become more critical when the size of the project is getting bigger and bigger. PMBOK helps us by defininglists of key activities those needs to be performed in this area:

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Following table lists all 7 Processes in this Knowledge Area, spread across '5 Process Groups' (means life cycle of the project)

1. A Process is nothing but Steps/Activities operates on given Inputs and produces defined Outputs. Process or PM Methodology provides Tools tooperate on Inputs.

These tools can be Formulas, Spreadsheets, or Templates in word format or any thing that can control the Outcome. Don't think that Tools arespecial

software that needs to be installed to perform

2. First Process in this knowledge area is Develop Project Charter. The name itself suggests that we need to develop some thing called Charter.So what is the Charter? It is the document that formally authorizes the existence of the project. Specifies the reasons to do this project, justifies themoney and time that is going to be spend. Known requirements, outline of outcome. Most importantly authorizes a Project Manager to drive thiseffort.

3. Will this Project Charter have detailed definitions of requirements? And complete specifications of the product or service of the project? No. No.

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Dont think that. This document is very simple and small enough to kick start the project. Project team will elaborate requirements in detail in laterphases. For example: This document tells you that you will get an Airplane once this project is completed. And top features that need to beincluded, but will not explain in detail functionality or specifications of each body part.

4. Other possible sections of this document are: Description, Outline Deliverables, Business Need, Justifications, Key Project Stakeholders and theirtop requirements (In software projects, in many cases stakeholders don't know what they want. Then Project Manager formulates those outlinerequirements working with them), Key Assumptions.

5. Normally in project environments Stakeholders might be different than the Sponsor of the project. Charter will always be issued by Sponsor andshould be broad enough to avoid changes to that document.

6. OK, lets talk about artifacts of this process "Develop Project Charter". As usual it has Inputs, tools and output (s). Above picture depicts all ofthose.

Contract is applicable when external organizations are providing serves or products.

The Statement of Work (SOW) is description of the outcome of the Project. If Project is acquiring services from External vendors thisdocument might go with Contract or as the part of bidding documents. This document specifies Business need, Product Scope definitionsand Organization Strategy.

In the tools section, Project selection Methods is the first one. This tool can help the Organizations to select which project to execute. Otherinputs like Environmental Factors, Organizational Assets come handy over here. Organizational goals, Strategic plan plays major role in thisselection. There are several scientific methods available out there to prioritize projects. But all of them might fall into 2 broad categories; theyare Benefits Measurement and Mathematical models. Generally those approaches use 3 parameters: costs, Benefits and Risks.

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Few popular non-numeric models are: Sacred cow, Operating necessity approach, Competitive necessity approach, Comparative benefitsmodel.

Few mathematical approaches are: Payback method, Accounting rate of return, Internal rate of return, NPV (net Present Value), ProfitabilityIndex.

7. OK, lets talk about artifacts of this process "Develop Preliminary Project Scope Statement". As usual it has Inputs, tools and output (s). Abovepicture depicts all of those.

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8. OK, lets talk about artifacts of this process "Develop Project Management Plan". As usual it has Inputs, tools and output (s). Above picturedepicts all of those.

9. OK, lets talk about artifacts of this process "Direct and Manage Project Execution". As usual it has Inputs, tools and output (s). Above picturedepicts all of those.

10. OK, lets talk about artifacts of this process "Monitor and Control Project Work". As usual it has Inputs, tools and output (s). Above picturedepicts all of those.

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11. OK, lets talk about artifacts of this process "Integrated Change Control". As usual it has Inputs, tools and output (s). Above picture depicts allof those.

12. OK, lets talk about artifacts of this process "Close Project". As usual it has Inputs, tools and output (s). Above picture depicts all of those.o As much as PMI recommends to Start Project formally, it also recommends to Close Project in similar fashion. Close Project process

establishes procedures to verify Project results and other artifacts. Even if the project should terminate abruptly Project Managers are supposedto close the Project properly and formally. Need to document reasons to terminate the project. In case of multi Phased Project, Closure Process

is mandatory at end of each Phase.o Administrative Closure: Like Collect Project Records, Project Analysis (Success or failure), and Documented Lessons Learned. One of

the outputs of this Process is Administrative Closure Procedure, which explains how a Project Team would close their project.o Contract Closure: All exit criteria for both parties to come out of terms and conditions. A contract in first place defines acceptance criteria,

Product/Service verification methods, or steps to take to early terminate the project. Contract should always detail terms and conditions tooperate the project and acceptance criteria. The out come of this process provides steps to close those terms and conditions in formalway.

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Scope management(Based on PMBOK 3rd Edition. For PMP Certification Exam preparation)

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Initiation

PlanningExecution

Monitoring&Control

Closing

ScopePlanningScopeDefinitionCreateWBS

ScopeVerificationScopeControl

ment

1. Scope Management is the process of defining what work is to be done and making sure only that work is done nothing extra (Gold Plating) isdone

2. Product scope is not Project scope. A Product can have multiple projects3. Project Scope: The work that you need to deliver. Includes meetings, reports, analysis which becomes project scope management plan4. Scope baseline: Consists of Project scope statement, WBS, WBS Dictionary. If scope baseline is met then project is successful.5. Scope Planning: - "How will I do this?" - results into Project Scope Management Plan6. Scope management plan should contain - How will scope be planned, executed and controlled7. Scope Definition: Take Preliminary scope statement from initiation process group and develop full blown scope statement. Includes all the

needs to stakeholders, constraints and assumption - results into Project Scope Statement8. Stakeholders Analysis: Convert their needs, wants and expectations into requirements9. Product analysis is to analyze objective said by customer and turn them into tangible requirements.10.Work Breakdown Structure: WBS: It breaks project into smaller and more manageable pieces called "Work Packages". This is known as Top-

Down approach11.Work packages are divided further into Scheduled activities.

1. WBS is hierarchical Chart2.

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Identify the work needs to be performed. If it is not in WBS then it is not in Project

3. Can be reused to other projects4. Does not show dependencies

12.Control Account: While calculating costs, we don't and can't calculate up to work package level. A level above the work package is known asControl Account

13.WBS Dictionary provides a description of the work to be done for each WBS work package.14.Manager uses this tool to avoid scope creep.15.WBS Dictionary contains

1. A number identifier2. Related control account3. A statement of the work to be done4. Who is responsible5. Any schedule mile stones6. Interdependencies

16.WBSD can be uses as the part of work authorization system

Project Time Management(For PMP Certification Exam preparation, based on PMBOK 3rd Edition)

In this tutorial I explain, Project Time Management that provides a basis to activity definition, Sequencing them in an order,Estimate Resource and Duration, Develop schedule and control it.

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Intiation Planning Execution Montitoring and Controlling Closing

Processes

Activity DefinitionActivity SequencingActivity Resource Estimation

Activity Duration EstimationSchedule Development

Schedule Control

In a simplest way to understand the Project, it is a collection of different Activities/Tasks those are needed to be performed in an order to achieveprojected results. To execute/perform those tasks certain resources (material or/and labor) are required for a period of time. And those resourcesshould operate in a Controlled way. All of these specifications are achieved by Time Management Knowledge Area of PMBOK Guide. Look atProcesses listed in the above table, they exactly satisfy these requirements. Even those names are self explanatory. The Major out come of thisKnowledge Area will be Time Management Plan which is part of the big Project Plan document. (Please note the difference between the MS ProjectPlan and PMI Project Plan. MS Project Plan that we lay down to run the project is just sub-set of the Project Plan suggested PMI. PMI Project Plan isan elaborative document constituting all strategies to run the project)

6.1 Activity Definition Process

Inputs

Enterprise environmental FactorsOrganizational Process AssetsScope StatementWBSWBS DictionaryProject Management Plan

Tools

DecompositionTemplatesRolling wave planningExpert judgmentPlanning component

Outputs

Activity ListActivity attributesMilestone ListRequested Changes

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Apart from all other factors involved to make a Successful Project, Tight Schedule is the foundation for well managed project. Schedule can betreated as a tool that identifies and organizes different required project tasks in a sequence and presented in the form of a Plan.

Schedule Management Plan is one of Plans part of the big Project Management Plan is major out come of this Knowledge Area. (Click hereto see all other documents part of Project Management Plan).

Benefits of Schedule Management: (few them are listed below)

It can be used as basis for monitoring, controlling and tracking. How to use resources effectively and in most efficient way Which activities are crucial to finish the project (Critical Path)

To develop a proper schedule we need to breakdown bigger work packages of WBS (Work Breakdown structure) to Activities. Activities areshould be at such a granular level where further breakdown is meaning less.

Schedule Management Software: For scheduling purposes we can use Computer based software. I used manyScheduling and Tracking software. But out of all I like Microsoft Project. Now it is available in Server Edition to trackEnterprise Projects. I bet this is the best software in the world for this purpose. (Disclaimer: Im no where associated withMicrosoft. I just showed my affection towards the best software)

5 ProcessGroups

Initiation Planning ExecutingMonitoring andControlling

Closing

Processes

1. Develop Project Charter

2. Develop Preliminary ProjectScope statement

3. Develop ProjectManagement Plan

4. Direct and ManageProject execution

5. Monitor and controlProject work

6. Integrated changecontrol

7. CloseProject

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Rolling Wave Planning: When we start breaking down the Work packages of WBS into Activities we might know details for few work

packages. At that time we might leave those work packages as it is at higher level and plan accordingly. When we really come to executethose work packages then we can further break down in to activity level. Estimating at higher level needs lot of "Expert Judgment" techniques.

Milestone List: Project can't be tracked against single end point. There should be some intermediate control points (significantlydistinguishable). Management can check the Project performance against those intermediate Milestones. Examples: Ground level designcompletion, First pass build completion, .. so on. One should not mistake milestones with Phases. Milestones are intermediate touch pointswithin a Phase.

Activity Definition: Team has to break big chunks of work packets into smaller activities which are manageable in all sense like scheduling,resourcing and tracking. In this process Activity List is on of major outcomes.

after this Activity Sequencing is next process, and following table shows inputs, tools and outputs of that process.

6.2 Activity Sequencing Process

Inputs

Project Scope Statement

Activity ListActivity AttributesApproved CRsMilestone List

Tools

Arrow Diagram Method

Precedence Diagram MethodSchedule Network TemplatesDependency DeterminationApplying leads and lags

Outputs

Project Schedule Network DiagramActivity List (Updates)Activity Attributes (Updates)Requested Changes

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Triple Constraints: Time, Cost, Scope are initially known as Triple constraints. Which means if you change one of these three there will bedirect impact on other 2. As project Management methodology is evolving Quality and Risk were also added to those constraints.Activity Sequencing: All Activities those defined and listed can't start at one time. (At least resourcing wise i t would be impossible). Normallythere will dependencies between activities. One activity will occur after other activity. Putting activities on Activity List in a Sequence is majorpurpose of this process. This can be in tabular format by showing successors and predecessors (MS Project has this feature). Morecommonly it can be represented in pictorial format. It is similar to "Flow Chart". See following diagram.

Activity Dependencies: There are 4 types of Activity dependencies

1. Finish to Start: Preceding activity must finish before successor starts.2. Finish to Finish: Preceding activity must finish to finish successor activity.3. Start to Start: Preceding Activity must start to Start Successor4. Start to Finish: Preceding Activity must Start before successor can finish. For example, Get an approval to start constructing a house.

But in this dependency we start construction and get an approval before finishing the construction. Rarely used dependency.

These dependencies can be Categorized as Hard dependencies or Soft Dependencies. Hard Dependencies are mandatory to follow whereas Soft Dependencies are good to follow but they are not mandatory.

Drawing Sequencing Diagrams also called Network Diagrams: Many methods are provided but 2 methods are most common and anothermethod is worth mentioning.

1. Activity on Node2. Activity on Arrow

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Activity on Node (AON) or Precedence Diagram Method (PDM): Nodes represent activities and draw arrows to show the dependencies.The above Sequence diagram is an example of this method.Activity on Arrow (AOA) or Arrow Diagram Method (ADM): Nodes are transition points (Dependencies) and Arrows represents theactivities. Some time this is so confusing to understand. In those cases those nodes are given a names and activities are treated asprocesses.

6.3 Activity Resource Estimating Process

InputsActivity ListActivity AttributesResource AvailabilityProject Management PlanEnterprise Environmental factorsOrg. Process Assets

Tools

Alternatives AnalysisPublished Estimating DataBottom-up EstimatingProject Management SoftwareExpert Judgment

Outputs

Resource Breakdown StructureActivity Attributes (updates)Activity Resource RequirementsResource Calendar (updates)Requested Changes

Activity Resource Estimation:

By now you might have completed listing all activities in the projects and sequenced those. Now you have to identify what kind of resources isrequired to execute those activities those can be People, equipment, or material. The goal of this process is to generate Activity ResourceRequirement. We are not yet ready for effort estimation yet. In this process we are identifying only required resources.

Bottom-up Estimating is a tool used here. This technique is used in various processes in different contexts. Here if we are using this to identifywhat kind of resources are needed at Activity level so that similar kind of activi ties can be assigned to same resource. So when you ask for

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cross team resources you can tell exact number or quantity.

Resource Breakdown Structure (RBS): This is another hierarchy structure used for projects. It helps you to group similar resources at a placethat way you can build specialty teams with in project. It defines assignable resources such as personnel, from a functional point of view; itidentifies "who" is doing the work. The total resources define the Top Level, and each subsequent level is a subset of the resource category (orlevel) above it. Each descending (lower) level represents an increasingly detailed description of the resource until small enough to be used inconjunction with the Work Breakdown Structure (WBS) to allow the work to be planned, monitored and controlled.

6.4 Activity Duration Estimation Process

Inputs

Project Scope StatementActivity ListActivity AttributesActivity Resource RequirementsResource CalendarPM Plan- Risk Register- Activity Cost Estimates

Enterprise Env. FactorsOrg. Process Assets

Tools

Analogous EstimatingParametric EstimatingThree-point EstimatingReserve AnalysisExpert Judgment

Outputs

Activity Duration EstimatesActivity Attributes (Updates)

The main goal for Activity Duration Estimating process is to provide effort estimation for all activities developed in during Activity DefinitionProcess. Also know as Effort estimation, means how many hours/days are required to complete an activity. Duration is totally different than thework effort

Effort: Just effort to complete an activity. We will not consider how many resources are working on this activity or when they are start orwhen they finish.

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Duration: The effort which was estimated above can be split among several resources or span across multiple days. For example, theeffort for an activity is estimated as 24 hours. This is typically 3 working 8 hour days. If you assign 3 resources to perform this activitythe duration will be just 1 day. Or you assign only one resource and estimate 1 hour work per day then the duration would be 24business days which might even longer calendar days considering weekends and holidays.

There are several techniques are used in real world to estimate the effort. Out of all Expert judgment is the most important technique. Which isthe core technique used in all other forms. Some subject matter expert should know what it takes to do it. PMBOK suggest few other

techniques to refine the Expert judgment

Analogous Estimating Parametric Estimating Three-point estimating Reserve Analysis

Analogous Estimating: Comparing to similar activity on the other project is the concept of this technique. This particular technique requireshistorical data to compare. In cases where there is no historical data, you would rely on other techniques and cant perform AnalogousEstimating

Parametric Estimating: Dependent on various parameters used for an activity. Multiplication of base unit of a parameter times of parametersize would give effort. For example 100 lines of code can be developed in 8 hours; then to develop 1000 lines of code it will take 80 hours.And if you need this in a weeks duration you will assign 2 resources.

Three-point estimation: Here you take pessimistic, optimistic, and realistic estimates for an activity. This approach can produce most closeestimate than single Expert Judgment estimate. Normally average of these 3 estimates and Standard deviation are used.

Activity duration estimates are major outcome of above "Activity Duration Estimating" process

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6.5 Schedule Development Process

Inputs

Project Scope StatementActivity ListActivity AttributesProject Schedule Network DiagramsActivity Resource RequirementsResource CalendarsActivity Duration EstimatesPM Plan- Risk Register

Org. Process Assets

Tools

Schedule Network AnalysisCPM (Critical Path Method)Schedule Compression

What-If Scenario AnalysisResource LevelingCritical Chain MethodAdjusted Leads and LagsSchedule ModelApplying CalendarsPM Software

Outputs

Project ScheduleSchedule Model DataSchedule Baseline

Resource Requirements (Updates)Activity Attributes (Updates)Project Calendar (Updates)Requested ChangesSchedule Management Plan (Updates)- PM Plan (Updates)

Schedule Development

Schedule in simplest form is a plan for an activity or event. We make schedules for every event of our life. The major ingredients are Activitylist and when those occur. Project Schedule development is no different than that. We identify when each and every activities occur. Wedefined activities and sequenced them in earlier phases. So we provide Calendar dates to all of those activities and that sums up to the projectstart and end dates too.

While developing Schedule development networking diagrams are very useful, this is a key input for this process.

Slack or Float: a float is amount of time you can use with out disturbing other planned activities. It tells how much of flexibility you have with inthe project schedule. It is important to have flexibility. There are 2 types of internal slacks and one external slacks for any project.

Free Slack: The amount of time an activity can be delayed by not affecting successor activity.

Total Slack: The amount of time an activity can be delayed with out delaying the end of project.

Project Slack: The amount of time a project can delay with out delaying other projects with in program

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In the above network diagram there are 3 possible paths

I) Start -> A -> C -> E -> END --- 5 + 3 + 2 = 10 DAYSII) Start -> B -> D -> E -> END --- 4 + 6 + 2 = 12 DAYSIII) Start -> B -> D -> F -> END --- 4 + 6 + 6 = 16 DAYS

Out of those 3 paths Path III is the longest path which needs 16 days to deliver all 3 Activities in it. We call this one as Critical path.

In the above network diagram For E both D and C are predecessors. It need 10 days to complete B+D and to reach E. And it just takes 8 daysfor A+C to complete to start E. So even if gets 2 days of delay the start date of E will not be changed. So activity C has 2 days of Free Slack.Path I) has 6 days of Total slack and still wont impact Projects end date.

The above process is called as Critical Path Method of Estimation. Observe that Activities on Critical Path doesnt have flexibility that is ZEROSLACK.

Other tool provided by PMBOK guide is Schedule Compression.

The above network diagram has total of 6 activities and just 3 activities in longest path. Imagine a real project with many activities and longercritical path. Some times you might get delayed in early stages and would like to shrink activities in later phases. We call it as Schedulecompression. We have to compress Critical Path activities only. We have 2 types of compression techniques.- Crashing: adding more resources to any activity on Critical path activities.- Fast Tracking: re-sequencing activities in the network diagram to gain time benefit.

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6.6 Schedule Control Process

Inputs

Schedule Management PlanSchedule BaselinePerformance ReportsApproved Change Requests

Tools

Progress ReportingSchedule Change Control SystemPerformance MeasurementVariance AnalysisSchedule Compression Bar ChartsPM Software

Outputs

Schedule Model Data (Updates)Schedule Baseline (Updates)Performance measurementsRequested ChangesRecommended Corrective ActionsActivity List & Attributes (Updates)PM Plan (Updates)Org. Process Assets (Updates)

Schedule Control has most important Tools and out puts for the projects which can be rolled up to Programs, Portfolios to ExecutiveManagement. That is Performance measurement and Variance analysis. This process iterative process through out the project execution.When changes are requested you have to monitor those using schedule Change Control System and recommended changes are suggested.

Project Cost Management(PMP Certification Preparation notes. Based on PMBOK 3rd Edition)

Cost is one of 3 Triple constraints of the project. Managing costs of theproject is very crucial and hardest part of the project. It spans acrossall phases of the project right from conception to closure of the project.

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Cost Management is not just controlling Costs, it involves definitive planning and preparing budgets. Collecting cost associated data.Comparing the data to prepared budgets and taking appropriate actions when needed.

Following table lists all 3 Processes in this Knowledge Area, spread across '2 out of 5 Process Groups'

5 Process Groups Intiation Planning Execution Monitoring and control Closing

Processes1. Cost Estimating

2. Cost Budgeting3. Cost Control

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7.1 Cost Estimating Process

Inputs

Enterprise environmental factorsOrganizational process assetsProject Scope StatementWork breakdown structureWBS dictionaryProject management plan- Schedule management plan- Staffing management plan- Risk register

Tools

Analogous estimatingDetermine resource cost ratesBottom-up estimating

Parametric estimatingProject management softwareVendor bid analysisReserve analysisCost of quality

Outputs

Activity cost estimates

Activity cost estimate supporting detailRequested changesCost management plan (updates).

There are 3 different types of estimation techniques listed over here under Tools section of Cost Estimation.- Analogous Estimation techniques- Bottom-up approach technique- Parametric approach technique

Both Analogous and parametric take Top-to-Down approach unlike Bottom-up approach.

Analogous estimation is mainly based on Expert Judgment or based on similar previous Projects. This approach is very useful in earlystages of the project where WBS and work packets are completely defined. The expert judgment success factor depends on similarity ofprevious projects too. The main disadvantage is that it is good for ball-park figures but not for precise project cost.

Parametric Estimation considers different project characteristics to calculate total costs of the project. For example, in the Telephone wiredigging project, if we know cost per meter we can estimate it to whole project. For a house construction, if we know cost to construct persquare feet, we can estimate total house project. For complex projects there will be multi dimensional parameters involved. When historicinformation is available these parametric estimation will be more accurate.

Bottom-up approach is elaborative estimation technique. We start estimating from the bottom most part of WBS hierarchy which is workpackage. Work packages are divided into activities. Summing up work packages to modules or groups, summing up different modules tostages, summing up different stages to project is the bottom-up approach method. The people who will actually do this work should create theestimates.

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7.3 Cost Control Process

Inputs

Cost baselineProject funding requirements

Performance reportsWork performance informationApproved change requestsProject management plan

Tools

Const change control systemPerformance measurement analysis

ForecastingProject performance reviewsProject management softwareVarience management

Outputs

Cost estimate (Updates)Cost baseline (Updates)Performance measurementsForecasted competitionRequested changesRecommended Corrective actionsOrganizational process assets (updates)Project management plan (updates)

Cost control:Once you estimate Project costs and baseline those and prepare a Budget, you will be on cruise mode to control the costs. That doesnt meanit is easy there after. No not at all. You have to monitor your cost so closely. Your work performance information is key input for this process.You should have clear set templates to report the work progress. Otherwise all unwanted junk data might ruin the soup.

Cost Change Control System is from Tools and Techniques section of this Process. It is part of overall Change Control process of youProject Management Organization but only oversees those changes which are directly affect costs. Changes are very important to watch out.Uncontrolled changes can ruin whole projects with out mercy. So what is been asked to change and how much it would cost should bemanaged.

Project performance review is another Tools & Techniques provided. You will review project progress with your baseline plans and will providewhat youve earned against what you have planned. This is known as Earned Value Analysis and helps you to track your day to day progress.3 possible scenarios are: you are progressing ahead of plan that means you are getting more than what you have planned, or progress is asper the plan or not getting enough worth for your investment. Based on these 3 scenarios you can take according corrective actions.Corrective actions are what you are supposed to do in this process.

You can use Project Management software of your choice to help you in this regard. MS Project is popular one or even you can simply usewell planned out Excel sheets to track those costs.

First you will find variances and report those using Variance analysis. The terms you use over here are Cost Variance (CV) and ScheduleVariance (SV). From that point you might required to forecast rest of the project. This involves estimating rest of the work. You use terms likeEstimation to Completion (ETC) and Estimate at Complete (EAC). Those names are telling what you have to Estimate.

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Other terms you use here are Cost Performance Index (CPI) and SPI (Schedule Performance Index)

Project Quality Management

(Based on PMBOK 3rd Edition. For PMP Certification Exampreparation)


5 Groups Initiation Planning Execution Monitoring and Control Closing

Processes 8.1 Quality Planning 8.2 Perform Quality Assurance 8.3 Perform Quality Control

Project quality management involves making sure the project meets the needs that it was originally created to meet, or in other words, thatstakeholder expectations were met.Quality is the result of meeting the triple constraints. A guide to the Project Management Body of Knowledge (PMBOK Guide) states thatquality management ensures "that the project will satisfy the needs for which it was undertaken," not just to meet or exceed the requirements.

The PMBOK Guide also says, "Quality is the degree to which a set of inherent characteristics fulfill requirements." This statement means thatboth stated and implied needs are understood through stakeholder analysis and then addressed in project scope management.

The three processes of Project Quality Management knowledge area can be explained as below:

8.1 Quality Planning identifying which quality standards are relevant to the project and determining how to satisfy them.8.2 Perform Quality Assurance applying the planned, systematic quality activities to ensure that the project employs all processes needed tomeet requirements.8.3 Perform Quality Control monitoring specific project results to determine whether they comply with relevant quality standards andidentifying ways to eliminate causes of unsatisfactory performance.

Quality Planning:Quality Planning typically receives the least attention and yet is the most critical element of Project Quality Management. This lack of attentionprimarily occurs due to insufficient understanding about quality and how it is an integral part of a project. The lack of an adequate Quality Planinhibits the success of Quality Assurance and Quality Control efforts. This idea needs to be stressed: Quality is planned into projects to prevent

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errors rather than relying on inspections to catch them.

Project participants need to be encouraged to devote sufficient time to Quality Planning. Quality Planning must not be taken lightly andmanagement must be in full support of it.

Inputs Tools & Techniques Outputs

Enterprise environmentalfactorsOrganizational process assetsProject scope statementProject management plan

Cost- benefit analysisBenchmarkingDesign of experimentsCost of quality (COQ)Additional quality planning tools

Quality management planQuality metricsQuality checklistsProcess improvement planQuality baselineProject management plan (updates)

The Cost of quality includes all the costs to conform to the required quality of the project, including the cost to ensure conformance torequirements as well as the cost of nonconformance and finding the right balance. Modern quality management philosophy emphasizespreventing mistakes rather than detecting them later because the cost of nonconformanceThe costs associated with the cost of quality are:

Prevention costs: Costs associated with keeping defective product away from the customer: Examples could include quality training,quality planning, reliability engineering, test engineering, or data analysis.

Appraisal costs: Costs associated with checking the product to make sure i t is conforming, such as inspection testing, calibration,studies, or surveys.

Failure costs: Nonconformance that is found while the product is still within the performing organization is called internal failure costs,and includes things like rework or scrap. Nonconformance found when the product is at the customer is called external failure costs andincludes repair or returns. The cost of nonconformance can also be classified as direct or indirect. Direct failure costs would includescrap, warranty costs, rework, engineering changes, liability insurance, or inventory costs. Indirect failure costs include fewer sales, lost

customers, increased costs to get customers back, decreased team morale, or decreased project efficiency.

8.2 Perform Quality Assurance

Perform Quality Assurance is all the planned and systematic activities implemented within the quality system to provide confidence that

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the project will satisfy the relevant quality standards. It should be performed throughout the project. May be performed by an internal or external organization, or designated members of the project team. Prevention-oriented

Inputs Tools &Techniques

Outputs

Quality management planQuality metricsProcess improvement planWork performance informationApproved change requestQuality control measurementsImplemented change request

Implemented corrective actionsImplemented defect repairImplemented preventativeactions

Quality planning tools &techniquesQuality auditsProcess analysisQuality control tools and

techniques

Requested changesRecommended corrective actionsOrganizational process assets(updates)Project management plan (updates)

8.3 Quality Control

Involveso Monitoring specific project results to determine if they meet quality standardso Identifying ways to eliminate causes of unsatisfactory results

Is about prevention, not inspection Focuses on process Primary purpose is to prevent a process from producing a poor quality product or service Is continuously producing results that are fed back to the appropriate process or processes

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Is performed throughout the life of the project Is not the quality control organization

Inputs Tools & Techniques Outputs

Quality management planQuality metricsQuality checklistOrganizational process assetsWork performance informationApproved change requestDeliverables

Cause and effect diagramsControl chartsFlowchartsHistogramsPareto diagramsRun chartsScatter diagramsStatistical samplingInspectionsDefect repair review

Quality control measurementsValidated defect repairsQuality baseline (updates)Recommended corrective actionsRecommended preventive actionsRequested changesRecommended defect repairsOrganization process assets (updates)Validated deliverablesProject management plan (updates

Project Human Resource Management(Based on PMBOK 3rd Edition. For PMP Certification Exampreparation)The first thing that comes to the mind when you say Management is

People Management. No matter what when you say that you are amanager, you will be gauged based on your people skills. If you wantto be a successful project manager you need to have better peoplemanagement skills.


First and foremost task for the project manger is to understand roles and responsibilities of the team and links to the team and should able tocommunicate that to all affected people. Few important roles associated with Project are: Sponsor, Management Team, executive/leadership

team, Project Team, Project Manager, functional manager.

The Project Human Resource Management processes include the following:

9.1 Human Resource Planning Identifying and documenting project roles, responsibilities, and reporting relationships, as well as creatingthe staffingmanagement plan.

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9.2 Acquire Project Team Obtaining the human resources needed to complete the project.

9.3 Develop Project Team Improving the competencies and interaction of team members to enhance project performance.

9.4 Manage Project Team Tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhanceproject

performance

Those above 4 processes can e organized into Process Groups as follows:

5 Process Groups Intiation Planning Execution Monitoring & Control Closing

Processes 9.1 Human Resources Planning9.2 Acquire Project Team9.3 Develop Project Team

9.4 Manage Project Team

Please enable JavaScript to view this page content properly.9.1 Human Resource Planning

Inputs

Enterprise environmental factorsOrganizational process assetsProject management plan-Activity resource requirements

Tools

Organization charts and position descriptionsNetworkingOrganizational theory

Outputs

Roles and responsibilitiesProject organization chartsStaffing management plan

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9.2 Acquire Project Team

Inputs

Enterprise Environmental factorsOrganizational process assetsroles and responsibilitiesProject organization charts

Staffing management plan

Tools

Pre-assignmentNegotiationAcquisition

Virtual teams

Outputs

Project staff assignmentsResource availabilityStaffing management plan (Updates)

9.3 Develop Project Team

Inputs

Project staff assignments

Staffing management planResource availability

Tools

General management skillsTrainingTeam-building activities

Ground rulesCo-locationRecognition and rewards

Outputs

Team performance assessment

9.4 Manage Project Team

Inputs

Organizational process assets

Project staff assignmentsRoles and responsibilitiesProject organization chartsStaffing management planTeam performance assessmentWork performance informationPerformance reports

Tools

Observation and conversationProject performance appraisalsConflict ManagementIssue Log

Outputs

Requested ChangesRecommended Corrective ActionsRecommended Preventative ActionsOrganizational Process Assets (updates)Project Management Plan (updates)

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Project Communications Management(Based on PMBOK 3rd Edition. For PMP Certification Exampreparation)


5 ProcessGroups

Initiation Planning ExecutionMonitoring andControl

Closing

Processes10.1 Communication

Planning

10.2 Information

Distribution

10.3 PerformanceReporting

10.4 ManageStakeholders

10.1 Communications Planning

Inputs

Enterprise Environmental FactorsOrganizational Process AssetsProject Scope StatementProject Management Plan- Constraints- Assumptions

Tools

Communications Requirements AnalysisCommunications Technology

Outputs

Communications Management Plan

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10.2 Information Distribution

Inputs

Communications Management Plan

Tools

Communications SkillsInformation Gathering and Retrieval SystemsInformation Distribution MethodsLessons Learned Process

Outputs

Organizational Process Assets (updates)Requested Changes

10.3 Performance Reporting

Inputs

Work Performance InformationPerformance MeasurementsForecasted CompletionQuality Control Measurements

Project Management Plan- Performance MeasurementBaselineApproved Change RequestsDeliverables

Tools

Status Review MeetingsTime Reporting SystemsCost Reporting Systems

Information Presentation ToolsPerformance Information Gathering andCompilation

Outputs

Performance ReportsForecasts

Requested ChangesRecommended Corrective ActionsOrganizational Process Assets(updates)

10.4 Manage Stakeholders

Inputs

Communications Management PlanOrganizational Process Assets

Tools

Communication MethodsIssue Logs

Outputs

Resolved IssuesApproved Change RequestsApproved Corrective ActionsOrganizational Process Assets (updates)Project Management Plan (updates)

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Project Risk Management

(Based on PMBOK 3rd Edition. For PMP Certification Exampreparation)As per PMBOK - "The whole point of undertaking a project isto achieve or establish something new, to venture, to take

chances, to risk." Risk can be 2 type which gives a positiveeffects or to give negative effects on the endeavors. Positiverisks are Opportunities and negative risks are losses,remember both risks are uncertain. Risk Managementpurpose is to manage (Plan and implement) these

uncertainties. Successful managers differentiate themselvesby identifying these uncertainties way before. That is whatthe Expert Judgment means.


Following are processes defined in Risk Management Knowledge Area:

5 Process Groups Initiation Planning Execution M & C Closing

Processes

11.1 Risk Management Planning11.2 Risk Identification11.3 Qualitative Risk Analysis11.4 Quantitative Risk Analysis11.5 Risk Response Planning

11.6 Risk Monitoring and Control

Let us talk about negative risks it is a multiplication of Probability of occurrence and impact of that event. For example: Consider chancesfor an event to occur is at 95% and impact would be very minimal say $100. The impact would be 95/100 * 100 = 95. Consider chances forother event to occur is at 10% but the impact is $10000. Then the impact is 10/100*10000 = 1000. Quite a high when compared to firs one.

So the whole project risk is summation of these impacts.Project Risk = Sum Of (Events * Probabilities * Impacts)After evaluating risks, one can choose a path of risk avoidance or risk mitigation and management. If we understand the risks on a project, wecan decide which risks are acceptable and take actions to mitigate or forestall those risks. If our project risk assessment determines risks areexcessive, we may want to consider restructuring the project to within acceptable levels of risk. One way to reduce risk is to gatherinformation about relevant issues to lower the level of uncertainty. Then we can look for ways to reduce probabilities of failures or to reduce

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My Certificates:|PMI|Stanford Advanced Project Management|Prince 2|& -- PMP TrainingAll rights reserved.

11.1 Risk Management Planning

11.1 Risk Management Planning

Inputs

Enterprise EnvironmentalFactorsOrganizational Process AssetsProject Scope StatementProject Management Plan

Tools

Planning Meetings and Analysis

Outputs

Risk Management Plan

Risk Management PlanThere is only one output of risk management planning, and that is the risk management plan. The plan describes how the risk process will beperformed during the project life cycle.

Methodology: Describes the approaches, tools, and data sources to be used when doing risk management.

Roles and responsibilities: Defines the team of people responsible for managing the identified risks and responses and outlines theirroles. People outside of the project team may be named, to keep the risk analysis unbiased.

Budgeting: Defines the budget for risk management for the project. This is included in the cost baseline. Timing: Defines when and howoften the risk management process will be performed. This process should begin early in the project life

cycle and be revisited throughout project execution. Risk categories: A good way of providing the structure necessary to identify risks consistently is to outline the categories of risks in a

RBS (Risk Breakdown Structure), which is further defined in the Figure 274. The risk categories could also simply be listed. Definitions of risk probability and impact: Outlines the scales that will be used during qualitative risk analysis to assess the probability

and impact of the risks that have been identified for a particular project. Scales could be qualitative, from "very low" to "very high," orquantitative, like a scale from 1 to 5.

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Probability and impact matrix: The combination of each risk's probability and impact will lead to an overall risk rating, which allows therisks to be prioritized. The combinations that lead to a risk with "high" importance vs. "low" is tailored for the specific project.

Revised stakeholder tolerances: Stakeholder tolerances will be defined and revised as necessary as they pertain to the specificproject.

Reporting formats: This component defines the risk register and other risk reports. Outlines how they will be created and distributed. Tracking: This component defines how risk will be recorded for the benefit of this project and future projects, as well as if and how the

risk processes will be audited.

11.2 Risk Identification

11.2 Risk Identification

Inputs

Enterprise EnvironmentalFactors

Organizational Process AssetsProject Scope StatementRisk Management PlanProject Management Plan

Tools

Documentation Reviews

Information Gathering TechniquesChecklist AnalysisAssumptions AnalysisDiagramming Techniques

Outputs

Risk Register

11. 3 Qualitative Risk Analysis

11. 3 Qualitative Risk Analysis

Inputs

Organizational Process AssetsProject Scope StatementRisk Management PlanRisk Register

Tools

Risk Probability and Impact AssessmentProbability and Impact MatrixRisk Data Quality AssessmentRisk CategorizationRisk Urgency Assessment

Outputs

Risk Register (updates)

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11.4 Quantitative Risk Analysis

Inputs

Organizational Process AssetsProject Scope StatementRisk Management PlanRisk RegisterProject Management Plan- Project Schedule ManagementPlan- Project Cost Management Plan

Tools

Data Gathering and Representation TechniquesQuantitative Risk Analysis and Modeling Techniques

Outputs

Risk Register (updates)

{{ Overview - 11.1 - 11.2 - 11.3 - 11.4 - 11.5 -11.6 }}11.5 Risk Response Planning

11.5 Risk Response Planning

Inputs

Risk Management PlanRisk Register

Tools

Strategies for Negative RisksStrategies for Positive RisksStrategies for BothContingent Response

Strategy

Outputs

Risk Register (updates)Project Management Plan (updates)Risk Related Contractual Agreements

{{ Overview - 11.1 - 11.2 - 11.3 - 11.4 - 11.5 -11.6 }}11.6 Risk Monitoring and Control

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11.6 Risk Monitoring and Control

Inputs

Risk Management PlanRisk Register

Approved Change RequestsWork Performance Information

Performance Reports

Tools

Risk ReassessmentRisk Audits

Variance and Trend AnalysisTechnical Performance Information

Reserve AnalysisStatus Meetings

Outputs

Risk Register (updates)Requested Changes

Recommended Corrective ActionsRecommended Preventative ActionsOrganizational Process Assets (updates)Project Management Plan (updates)

{{ Overview - 11.1 - 11.2 - 11.3 - 11.4 - 11.5 -11.6 }}Project Procurement Management

(Based on PMBOK 3rd Edition. For PMP Certification Exam

preparation)


Projects many times need services or products from the 3rd parties to fulfill the needs. 3rd parties mean external to the Project, either otherdepartment with in the organization / company or completely outside of the company. Here we are talking about external vendor who isproviding services to the Project. And we need to assume those vendor services are not resource augmentation.

Just like Project life cycle Procurement management has its own lifecycle. We plan, execute and properly close the services or productacquisition. Most of the Procurement time will fall under Planning Process group as Execution is done by the vendor. Monitoring is requiredto control costs and changes.

Following table shows 6 processes of this knowledge area and groups they belong to

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5 ProcessGroups

Initiation Planning Execution Monitoring & Control Closing

Processes-Plan Purchases andacquisitions-Plan Contracting

-Request SellerResponses

-Select Sellers

-ContractAdministration

-ContractClosure

In Procurement 3 objects are very important. In short they are SBC. (Seller Buyer Contract.)

Selleris the person or contracting company who sells products or services for the project. In general terms staff augmentation will also fallin this category. Here PMI doesnt deal that case for the project. PMI in this particular chapter treats seller as any 3rd party who providesproducts or services from outside of the organizations

Buyer: Is you, the project manager who purchases the services from Seller. Unless and otherwise it is asked the exams perspective istesting you the project manager. So in this particular case you will become buyer, so all exam questions are on buyer perspective only.

Contract: need not to say, a legal document which is a connecting point between Buyer and Seller. Both have to abide by that. You canadd any required clauses to the contract but following are important. To remember those use CCOLA

Capacity: The authorities those will be provided to Seller to do the work.Consideration: Clauses those will be considered by the BuyerOffer: Is provided to make a contract or deal.Legal Purpose: Jurisdiction and legal bondage.Acceptance: The time limit that the buyer has to make an agreement.

Lets discuss all 6 processes of this knowledge aera. Click on respective numbers below to see those processes one after other:


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12.1 Plan Purchasing and AcquisitionProject ProcurementManagement - PMI(Based on PMBOK 3rdEdition. For PMPCertification Exampreparation)

Plan Purchasing and Acquisition ITTO

Inputs

Enterprise Environmental FactorsOrganizational Process AssetsProject Scope StatementWork Breakdown StructureWBS DictionaryProject Management Plan- Risk Register- Risk Related Contractual Agreements

- Resource Requirements- Project Schedule- Activity Cost Estimates- Cost Baseline

Tools

Make or Buy AnalysisExpert JudgmentContract Types

Outputs

Procurement Management PlanContract Statement of WorkMake-or-Buy DecisionsRequested Changes

Various contract types are tools for Plan Purchasing and acquisition" process. Which means when you the Project Manager is buying someservices or Products for you Project you can use these techniques to negotiate better options for your project. PMI categorizes contracts into 3types.

Fixed prices contracts: This type of contracts has a fixed total price for the service or Product. Which means the Buyer pays EXACT amountwhich was agreed at the beginning to the Seller. Incentives and Awards bring little bit variations to Fixed price contracts. Seller bears the risk infixed price contracts.Time and Material contracts: These are cusp between FP and CR and have features of both. Work will quoted as per unit price or charges for

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Work Risk Term

FP Known Seller Short

T&M UnKnown Both Short

CR UnKnown Buyer LongPlease enable JavaScript to view this page content properly.

12.2 Plan Contracting

Project Procurement Management - PMI(Based on PMBOK 3rd Edition. For PMP CertificationExam preparation)

12.2 Plan Contracting

Inputs

Procurement Management PlanContract Statement of WorkMake-or-Buy DecisionsProject Management Plan- Risk Register- Risk Related Contractual Agreements

- Resource Requirements- Project Schedule- Activity Cost Estimates- Cost Baseline

Tools

Standard FormsExpert Judgment

Outputs

Procurement DocumentsEvaluation CriteriaContract Statement of Work (updates)

Plan Contracting is next step in procurement process after planning for purchase and acquisition (12.1 the previous process). For everycompany there will be few pre-defined forms or policies to acquire products/services or engaging vendors. Those Standard Forms will be

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used as Tools in this process. As usual Expert judgment will be counted for this process too.

The major outcome or the intent of this process is to generate Planning Documents and developing your own evaluation criteria. In de-centralized procurement organizations Project Manager (you) will directly engage vendors. So in this process you have to develop theevaluation criteria, measures to evaluate vendor responses.

Procurement Documents:

These documents are useful for the Buyer (You the Project Manager) to communicate the need in most possible efficient way to allprospective sellers. If Sellers can understand your needs, your process and clauses, they can clearly quote and meet your expectations.

Following are few documents you prepare:

- RFP (Request for Proposal) in this document you can ask for detailed plan for project execution and price. If it is a long term project andthe scope is not developed completely you can use these types of documents.- IFB (Invitation for Bid) or RFB (Request for Bid): You have developed the scope and you know the work and willing to get it done by vendorthen you will use this type of documents- RFQ (Request for Quotation): This is Price per item or hour labor.

In these procurement documents you can include- Your company information- Project information- Criteria which are important for the project and on which you will evaluate- Terms and conditions for the project, legal implications- Contract terms

Other documents you will need to develop are:NDA (Non-Disclosure agreement): To perform the Project work buyer has to disclose some confidential information to the sellers or evenprospective sellers. Sellers/Prospective sellers are bound by this document to protect Buyers confidential information.

Letter of Intent: This document intention is to communicate that the buyer, you are intended to purchase services or products from the seller.But this document is not legally binding document, means you can even decline to purchase in future date based on your changing criteria.

Privity of contract: The doctrine of privity in contract law provides that a contract cannot confer rights or impose obligations arising under iton any person or agent except the parties to it. Privity of contract occurs only between the parties to the contract, most commonly contract ofsale of goods or services. Horizontal privity arises when the benefits from a contract are to be given to a third party. Vertical privity involves a

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12.4 Select Sellers

Inputs

Organizational Process AssetsProcurement Management Plan

Evaluation CriteriaProcurement Document PackageProposalsQualified Sellers ListProject Management Plan- Risk Register- Risk Related Contractual Agreements

Tools

Weighting System

Independent EstimatesScreening SystemContract NegotiationSeller Rating SystemsExpert JudgmentProposal Evaluation Techniques

Outputs

Selected Sellers

ContractContract Management PlanResource AvailabilityProcurement Management Plan (updates)Requested Changes

As we discussed all of 6 processes of this knowledge area occur sequentially. It follows traditional waterfall model. By the time of this processyou the Project Manager might have completed Procurement & contract planning and might have requested and collected Seller Responses

(Quotations/Bids/Proposals).

Tip: Bids are for FP; Quotations are for T&M; Proposals are for CR;

The major goal/purpose of this process is Selecting Sellers for your project and making a contract with them. PMI provided several Tools andTechniques to fulfill this requirement.

Weighing System: Ranking all filtered prospective sellers.

Independent Estimate: Few companies call this estimation group as Shadow IT. Rough estimate with in your company.

Screening System: Weed out Sellers who doesnt even meet bare minimum criteria

Seller Rating System: Is an aid to Weighing System. You will provide your own rating system based on your project environment.

Sellers financial stability might be important aspect for a long term Project but that might not be true for a smaller project which willfinish in 6 months. So each project has to establish its own rating system.

Proposal Evaluation techniques: This is also another aid for weighing system.

Expert Judgment: You will inherit this quality based on your experience and exposure.

Example of Weighing System:

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Criteria 1 Criteria 2

Score

Weight Sub Total-1Score

Weight Sub Total-2Grand Total

Seller 1 2 3

Seller 2 2 3

1. Step1 you will define what all criteria are important for your project.2. Then you will quantify those criteria by giving a weight, based on a scale 1-5. These weights go in respective colunms3. By using different evaluation techniques and rating system, you will provide a score to seller and enter those in to appropriate cells.4. By multiplying score and weight you will arrive sub total for the seller.5. By adding all sub totals for a particular seller you will get Grand total for that seller.

Finally you will prepare a list of Selected Sellers and Ranks next to them. You have to keep this list as you company asset to use it for nexttime. But rankings on this list will not stay the same over years. You need to reevaluate all your sellers based on situation and time. The bestSeller will not remain the best all the time. They might change their policies or another best seller might emerge. But having a company assetis easy to start.

Contract Management Plan: This is one on PMI isms which we all are advocating. You will write a document which will say how youmanage this area. What all are your approaches, observations, pitfalls. In the modern era every thing should be documents. Nothing shouldbe kept in the mind. Organizations and Projects precede individuals. Project managers need not be powerful warlords. Organizations should

able replace them easily.Please enable JavaScript to view this page content properly.

12.5 Contract Administration

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Project Procurement Management(Based on PMBOK 3rd Edition. For PMPCertification Exam preparation)

12.5 Contract Administration

Inputs

ContractContract Management PlanSelected SellersPerformance ReportsApproved Change RequestsWork Performance Information

Tools

Contract Change Control SystemBuyer-Conducted PerformanceReviewsInspections and AuditsPerformance ReportingPayment SystemClaims AdministrationRecords Management System

Information Technology

Outputs

Contract DocumentationRequested ChangesRecommended Corrective ActionsOrganizational Process Assets (updates)Project Management Plan (updates)- Procurement Management Plan- Contract Management Plan

Contract Administration is important function of Procurement management and as a Project Manager you have greater responsibilities tomanage activities under this process. You the Project manager needs to monitor the progress of your investment and see if you are gettingwhat you are paying for.

Requested changes to the contract and Recommended corrective actions are 2 of expected out come of this process. Tools like Changecontrol system helps to monitor this process. As I have been explaining all along Changes need to be monitored all across either forschedule, or for scope or for costs or contracts. Those needed to be evaluated thoroughly and see how they are affecting other aspects ofthe project. Should be well documented and should be approved by key stakeholders.

In the following image Control Change covers CCB, the Change Control Board gate keepers of inflowing changes. Even though thechange is great and wonderful, the impact on the project needed to be assessed first.

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Typically Project Manager will be performing following jobs depicted in the picture

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Documents

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