Tuesday, February 17, 2009

PMP Tutorials


PMP Tutorials


PMP
Exams Overview

This chapter gives an overview of PMP
Certification Exams.

Project
Management Fundamentals

This chapter defines project, project
management and other concepts related to project management.

Project
Integration Management

This chapter covers the knowledge area
of Project Integration Management.

Project
Scope Management

This chapter covers the knowledge area of
Project Scope Management.

Project
Time Management

This chapter covers the knowledge area of
Project Time Management.

Project
Cost Management

This chapter covers the knowledge area of
Project Cost Management.

Project
Risk Management

This chapter covers the knowledge area of
Project Risk Management.

Project
Quality Management

This chapter covers the knowledge area of
Project Quality Management.

Project
Human Resource Management

This chapter covers the knowledge
area of Project Human Resource Management.

Project
Communication Management

This chapter covers the knowledge
area of Project Communication Management.

Project
Procurement Management

This chapter covers the knowledge area
of Project Procurement Management.

PMP
Professional Ethics

This chapter covers the PMP's code of
ethics.







PMP Professional Ethics

PMP Professional Ethics







This session will address the PMP Code of Professional Conduct, business ethics and cultural competencies. The information presented in this lesson is intended to provide you with all the knowledge competency you need to correctly answer PMP exam professional responsibility questions:


What is professional responsibility? It can mean different things to different people. As a PMP, professional responsibility involves:



  • Adhering to the PMP Code of Professional Conduct

  • Maintaining high professional ethics

  • Developing cultural competence in our emerging global society


NOTE: Most professional responsibility questions can be answered correctly by simply relying on your best common sense. Professional responsibility questions typically pose an ethical, professional or cultural scenario and ask you to choose the best response. In most cases, the correct answer can be selected by simply asking yourself, "What is the right thing to do."


The PMP Code of Professional Conduct


As a PMP you agree to support and adhere to the Code of conduct. It is described with two sections:



  • Responsibility to the Profession and
  • Responsibility to Customers and the Public

Responsibility to the Profession: Here you have six basic responsibilities



  1. Be truthful at all times and in all situations

  2. Report Code violations (with factual basis)

  3. Disclose conflicts of interest

  4. Comply with laws

  5. Respect other's intellectual property rights

  6. Support the Code


Responsibility to Customers and the Public: Here you have five basic responsibilities



  1. Be truthful at all times and in all situations

  2. Maintain professional integrity (satisfy the scope of your professional services)

  3. Respect the confidentiality of sensitive information

  4. Refrain from gift or compensation giving/receiving where inappropriate

  5. Ensure conflicts of interest do not interfere with client's interest or interfere with professional judgment


Business Ethics


Ethics in project management involves learning what is right or wrong, and then doing the right thing.


But in the real world, 'the right thing' is not as straightforward as conveyed in lots of business ethics literature.


Here are eight guidelines to help you establish a strong ethics foundation for your project.



  1. Recognize that managing ethics is a process. Ethics management is the process of reflection and dialog . that produces deliverables such as codes, policies and procedures.

  2. The goal of an ethics management initiative is preferred behavior in the project environment.

  3. The best way to manage ethical dilemmas, like negative project risks, is to avoid their occurrence in the first place

  4. Make ethics decisions in teams, and make decisions public, as appropriate.

  5. Integrate ethics management with other project practices. Define preferred ethical values directly in the project plan.

  6. Use cross-functional teams to develop your ethics management plan. Benefit from varied input.


  7. Value forgiveness Help project personnel recognize and address their mistakes and then support them to continue to try to operate ethically

  8. Give yourself credit for trying Attempting to operate ethically and making a few mistakes is better than not trying at all. All projects are comprised of people and people are not perfect.


Until recently, ethics in business typically meant philanthropy of some sort. However, in light of today's corporate scandals, ethics has surfaced as an important issue. As a result, values are increasingly becoming an integral part of effective project management.


How do project managers turn to values? Here are five areas to approach:



  1. Risk Management: This is fairly straightforward. Incorporating values into your project can help eliminate risks associated with organizational and individual misconduct.

  2. Organizational functioning: Planned-in values can build a well-functioning project organization by encouraging cooperation, inspiring commitment, nurturing innovation and energizing team members around a positive self-image.

  3. Civic positioning: Values can establish the project organization's standing in the community as a progressive force for social betterment and as a solid contributing citizen.

  4. Market positioning: Values can shape a project organization's identity and reputation. Values can help build the organization's brands and earn the trust of customers, suppliers and partners

  5. Simply a better way: Although values do provide financial benefits, this should not be the justification for ethics. Values are worthwhile and fundamental principles of responsibility, humanity and citizenship. They need no justification.


How to Face a Public Crisis:


Hopefully, you will never encounter the misfortune of having to deal with a public crisis. But, as project manager, you are the one that may be called upon to face the community. Here's how to handle it: Understand this is a formative experience and let these seven words be your guiding principle... Tell the Truth and Tell it Fast. Communicate frequently, invite everyone, answer all questions willingly and truthfully.


Cultural Competencies:


As modern business continues its evolution to becoming a world community, project managers increasingly find themselves managing multicultural teams. Many projects today are even global in scope, with project teams working from different locations around the world.


Today's project managers must add 'cultural competency' to their long list of general management skills.


To become truly expert and fluent in cultural competencies, you could spend a lifetime studying and traveling. For our purposes, maintaining a professional sensitivity to cultural differences and knowing a few basic 'rules' should be adequate.


There is no need to study this material meticulously. Simply read it to develop a general feel for the subject.


Differences:


Differences exist, not only between countries, but within a country's own borders as well. Some key differences between countries



  • Physical time
  • Perceived time
  • Monetary policies
  • Procurement practices
  • Negotiating practices
  • Language
  • Body language
  • Education
  • Governments
  • Management styles
  • Trust
  • Risk thresholds
  • Quality standards
  • Travel constraints (country infrastructure)

Some key cultural differences in perception and behavior:



  • Social groups
  • Religions
  • Races
  • Class structure
  • Genders
  • Local laws

Some key cultural differences in perception and behavior:



  • Environment
  • Time
  • Action
  • Communication
  • Space
  • Power
  • Individualism
  • Competitiveness
  • Structure
  • Thinking

Dos and Don'ts in Managing Global Projects:


In managing global projects, it is essential to develop cultural self-awareness. The first, and most important, step is becoming aware of your own cultural orientations and the impact they can make in managing projects across cultures. You must prepare for cross-cultural project encounters with purpose and thoroughness. Here are a few dos and don'ts to consider.


DO



  • Develop your cultural self-awareness.
  • Set realistic expectations for yourself and others.
  • Accept that you will make mistakes, but remain confident.
  • Be patient.
  • Slow down. Make relationships.
  • Keep your sense of humor.

  • Keep your integrity.
  • Stay objective . minimize blame.

DON'T:



  • Assume similarity.
  • Try to adopt the orientations of the other culture. Adaptation does not mean adoption.
  • Dwell on comparing the other culture with your own.
  • Evaluate the other culture in terms of good or bad.
  • Assume that just being yourself is enough to bring you cross-cultural success.

How to Develop Multicultural Excellence in Global Projects


As we rapidly evolve into a global community, many project managers find themselves managing project teams across vast geographical landscapes. To improve your success probability in such environments, it is essential to develop multicultural competencies.


Here are few things you can do to help develop multicultural excellence:




  • Multiple languages: Recruit core team members who speak multiple languages

  • Multicultural experience: Provide core team members with multicultural experiences.

  • Cross-cultural experience: Arrange cross-cultural experiences for extended team members.

  • Continuous improvement: Acknowledge the continuous need to improve cross-cultural experiences for all team members.


Across the Miles, Keep Team Members Feeling Connected:


It is important to let offsite project team members know they mean more to the project than just deliverables, an email address or a teleconference voice. Although personal events have little to do with work, make it a routine practice to acknowledge events such as birthdays, weddings, births and graduations. This level of thoughtfulness sends a powerful message and helps to enhance overall team performance


Project Procurement Management

Project Procurement Management








Definition


Procurement Management is a groups of processes required to to purchase or acquire the products, services, or results needed from outside the project team to perform the work.


Processes


There are following processes which are part of Project Procurement Management.




  • Plan Purchases and Acquisitions

  • Plan Contracting

  • Request Seller Responses

  • Select Sellers

  • Contract Administration

  • Contract Closure




Plan Purchases and Acquisitions



The Plan Purchases and Acquisitions process identifies which project needs can best be met by purchasing or acquiring products, services, or results outside the project organization, and which project needs can be accomplished by the project team during project execution. This process involves consideration of whether, how, what, how much, and when to acquire.


Plan Purchases and Acquisitions process is a part of "Project Planning Phase".




(1) Procurement Management - Inputs



(1.1) Enterprise Environmental Factors: Enterprise environmental factors that are considered include the conditions of the marketplace and what products, services, and results are available in the marketplace, from whom and under what terms and conditions.


(1.2) Organizational Process Assets: Organizational process assets provide the existing formal and informal procurement-related policies, procedures, guidelines, and management systems that are considered in developing the procurement management plan and selecting the contract types to be used.



(1.3) Project Scope Statement: The project scope statement describes the project boundaries, requirements, constraints, and assumptions related to the project scope. Constraints are specific factors that can limit both the buyer.s and seller.s options.


(1.4) Work Breakdown Structure: The Work Breakdown Structure provides the relationship among all the components of the project and the project deliverables.


(1.5) WBS Dictionary: The WBS dictionary provides detailed statements of work that provide an identification of the deliverables and a description of the work within each WBS component required to produce each deliverable.


(1.6) Project Management Plan








(2) Procurement Management - Tools & Techniques



(2.1) Make-or-Buy Analysis: Both direct and indirect costs. Project need and urgency.


(2.2) Expert Judgment: Expert purchasing judgment can be used to develop or modify the criteria that will be used to evaluate offers or proposals made by sellers.


(2.3) Contract Types: Different types of contracts are more or less appropriate for different types of purchases.




  • Fixed-price or lump-sum contracts: This category of contract involves a fixed total price for a well-defined product.


  • Cost-reimbursable contracts: This category of contract involves payment (reimbursement) to the seller for seller.s actual costs, plus a fee typically representing seller profit.


    Three common types of cost-reimbursable contracts are CPF, CPFF, and CPIF



    • Cost-Plus-Fee (CPF) or Cost-Plus-Percentage of Cost (CPPC): Seller is reimbursed for allowable costs for performing the contract work and receives a fee calculated as an agreed-upon percentage of the costs. The fee varies with the actual cost.



    • Cost-Plus-Fixed-Fee (CPFF): Seller is reimbursed for allowable costs for performing the contract work and receives a fixed fee payment calculated as a percentage of the estimated project costs. The fixed fee does not vary with actual costs unless the project scope changes.


    • Cost-Plus-Incentive-Fee (CPIF): Seller is reimbursed for allowable costs for performing the contract work and receives a predetermined fee, an incentive bonus, based upon achieving certain performance objective levels set in the contract. In some CPIF contracts, if the final costs are less than the expected costs, then both the buyer and seller benefit from the cost savings based upon a pre-negotiated sharing formula




  • Time and Material (T&M) contracts: T&M contracts are a hybrid type of contractual arrangement that contains aspects of both cost-reimbursable and fixed-price type arrangements. These types of contracts resemble cost reimbursable type arrangements in that they are open ended.









(3) Procurement Management - Output



(3.1) Procurement Management Plan: The procurement management plan describes how the procurement processes will
be managed from developing procurement documentation through contract closure.



  • Types of contracts used

  • Managing multiple providers


  • How procurement will be coordinated

  • Standardized documents used

  • Identifying pre-qualified selected sellers, if any, to be used

  • Constraints and assumptions that could affect planned purchases and acquisitions

  • Establishing the form and format to be used for the contract statement of work

  • Who will prepare independent estimates and if they are needed as evaluation criteria

  • Procurement metrics to be used to manage contracts and evaluate sellers


(3.2) Contract Statement of Work: The statement of work (SOW) for each contract is developed from the project scope statement, the project work breakdown structure (WBS), and WBS dictionary. The contract SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item.



(3.3) Make-or-Buy Decisions: The documented decisions of what project products, services, or results will be either be acquired or will be developed by the project team.


(3.4) Requested Changes: Requested changes to the project management plan and its subsidiary plans and other components may result from the Plan Purchases and Acquisition process.





Plan Contracting


The Plan Contracting process prepares the documents needed to support the Request Seller Responses process and Select Sellers process.


Plan Contracting process is a part of "Project Planning Phase".





(1) Plan Contracting - Inputs



(1.1) Procurement Management Plan


(1.2) Contract Statement of Work


(1.3) Make-or-Buy Decisions: The make-or-buy decisions are documented in the issued list of items to be purchased or acquired and those items to be produced by the project team.


(1.4) Work Breakdown Structure: The Work Breakdown Structure provides the relationship among all the components of the project and the project deliverables.


(1.5) Project Management Plan








(2) Plan Contracting - Tools & Techniques



(2.1) Standard Forms: Standard forms include standard contracts, standard descriptions of procurement items, non-disclosure agreements, proposal evaluation criteria checklists, or standardized versions of all parts of the needed bid documents.


(2.2) Expert Judgment: Expert purchasing judgment can be used to develop or modify the criteria that will be used to evaluate offers or proposals made by sellers.








(3) Plan Contracting - Output



(3.1) Procurement Documents : Procurement documents are used to seek proposals from prospective sellers. A term such as bid, tender, or quotation is generally used when the seller selection decision will be based on price, while a term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount.


(3.2)Evaluation Criteria: Evaluation criteria are developed and used to rate or score proposals. Evaluation criteria are often included as part of the procurement documents.





Request Seller Responses



The Request Seller Responses process obtains responses, such as bids and proposals, from prospective sellers on how project requirements can be met.


Request Seller Responses process is a part of "Project Planning Phase".




(1) Request Seller Responses - Inputs



(1.1) Organizational Process Assets: Some organizations, as part of their organizational process assets, maintain lists or
files with information on prospective and previously qualified sellers, sometimes called bidders, who can be asked to bid, propose, or quote on work.


(1.2) Procurement Management Plan


(1.2) Procurement Documents








(2) Request Seller Responses - Tools & Techniques



(2.1) Bidder Conferences : Bidder conferences are meetings with prospective sellers prior to preparation of a bid or proposal . They are used to ensure that all prospective sellers have a clear, common understanding of the procurement


(2.2) Advertising: Existing lists of potential sellers can often be expanded by placing advertisements in general circulation publications such as newspapers or in specialty publications such as professional journals.


(2.3) Develop Qualified Sellers List: Qualified sellers lists can be developed from the organizational assets if such lists
or information are readily available. Whether or not that data is available, the project team can also develop its own sources. General information is widely available through the Internet, library directories, relevant local associations, trade catalogs, and similar sources.








(3) Request Seller Responses - Output



(3.1) Qualified Sellers List : The qualified sellers list are those sellers who are asked to submit a proposal or quotation.


(3.2)Procurement Document Package: The procurement document package is a buyer-prepared formal request sent to each seller and is the basis upon which a seller prepares a bid for the requested products, services, or results that are defined and described in the procurement documentation.


(3.3) Proposals: Proposals are seller-prepared documents that describe the seller.s ability and willingness to provide the requested products, services, or results described in the procurement documentation.





Select Sellers


The Select Sellers process receives bids or proposals and applies evaluation criteria, as applicable, to select one or more sellers who are both qualified and acceptable as a seller.


Select Sellers process is a part of "Project Execution Phase".




(1) Select Sellers - Inputs



(1.1) Organizational Process Assets: The organizational process assets of the organizations involved in project procurement typically have formal policies that affect the evaluation of proposals.


(1.2) Procurement Management Plan


(1.3) Evaluation Criteria: Evaluation criteria can include samples of the supplier.s previously produced products, services, or results for the purpose of providing a way to evaluate the supplier.s capabilities and quality of products.


(1.4) Procurement Document Package


(1.5) Proposals


(1.6) Qualified Sellers List


(1.7) Project Management Plan








(2) Select Sellers - Tools & Techniques



(2.1) Weighting System : A weighting system is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selection.


(2.2) Independent Estimates:For many procurement items, the procuring organization can either prepare its own independent estimates or have prepared an independent estimate of the costs as a check on proposed pricing.


(2.3) Screening System: A screening system involves establishing minimum requirements of performance for one or more of the evaluation criteria, and can employ a weighting system and independent estimates.


(2.4) Contract Negotiation: Contract negotiation clarifies the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract.


(2.5) Seller Rating Systems: Seller rating systems are developed by many organizations and use information such as the seller.s past performance, quality ratings, delivery performance, and contractual compliance.


(2.6) Expert Judgment: Expert judgment is used in evaluating seller proposals.


(2.7) Proposal Evaluation Techniques: Many different techniques can be used to rate and score proposals, but all will use some expert judgment and some form of evaluation criteria.







(3) Select Sellers - Output



(3.1) Selected Sellers : The sellers selected are those sellers who have been judged to be in a competitive range based upon the outcome of the proposal or bid evaluation, and who have negotiated a draft contract, which will be the actual contract when an award is made


(3.2) Contract: A contract is awarded to each selected seller. The contract can be in the form of a complex document or a simple purchase order. Regardless of the document.s complexity, a contract is a mutually binding legal agreement that obligates the
seller to provide the specified products, services, or results, and obligates the buyer to pay the seller.


(3.3) Contract Management Plan : For significant purchases or acquisitions, a plan to administer the contract is prepared based upon the specific buyer-specified items within the contract such as documentation, and delivery and performance requirements that the buyer and seller must meet


(3.4) Resource Availability: The quantity and availability of resources and those dates on which each specific
resource can be active or idle are documented.


(3.5) Procurement Management Plan updates: The procurement management plan is updated to reflect any approved change requests that affect procurement management.


(3.6) Requested Changes: Requested changes to the project management plan and its subsidiary plans and other components, such as the project schedule and procurement management plan, may result from the Select Sellers process.





Contract Administration


Both the buyer and the seller administer the contract for similar purposes. Each party ensures that both it and the other party meet their contractual obligations and that their own legal rights are protected. The Contract Administration process ensures that the seller.s performance meets contractual requirements and that the buyer performs according to the terms of the contract.


Contract Administration process is a part of "Project Controlling Phase".





(1) Contract Administration - Inputs



(1.1) Contract


(1.2) Contract Management Plan


(1.3) Selected Sellers


(1.4) Performance Reports


(1.5) Approved Change Requests


(1.6) Work Performance Information







(2) Contract Administration - Tools & Techniques



(2.1) Contract Change Control System :A contract change control system defines the process by which the contract can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes.


(2.2) Buyer-Conducted Performance Review :A procurement performance review is a structured review of the seller.s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. It can include a review of seller-prepared documentation and buyer inspections, as well as quality audits conducted during seller.s execution of the work.


(2.3) Inspections and Audits: Inspections and audits required by the buyer and supported by the seller as specified in the contract documentation, can be conducted during execution of the project to identify any weaknesses in the seller.s work processes or deliverables.


(2.4) Performance Reporting: Performance reporting provides management with information about how effectively the seller is achieving the contractual objectives. Contract performance reporting is integrated into performance reporting.


(2.5) Payment System: Payments to the seller are usually handled by the accounts payable system of the buyer.


(2.6) Claims Administration: Contested changes and constructive changes are those requested changes where the buyer and seller cannot agree on compensation for the change, or cannot agree that a change has even occurred. These contested changes are variously called claims, disputes, or appeals. Claims are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the terms of the contract.


(2.7) Records Management System: A records management system is a specific set of processes, related control functions, and automation tools that are consolidated and combined into a whole, as part of the project management information system.


(2.8) Information Technology: The use of information and communication technologies can enhance the efficiency and effectiveness of contract administration by automating portions of the records management system, payment system, claims administration, or performance reporting and providing electronic data interchange between the buyer and seller.







(3) Contract Administration - Output



(3.1) Contract Documentation : Contract documentation includes, but is not limited to, the contract along with all supporting schedules, requested unapproved contract changes, and approved change requests.


(3.2) Requested Changes: Requested changes to the project management plan and its subsidiary plans and other components, such as the project schedule and procurement management plan may result from the Contract administration process. Requested changes are processed for review and approval through the Integrated Change Control process.


(3.3) Recommended Corrective Actions: A recommended corrective action is anything that needs to be done to bring the seller in compliance with the terms of the contract.


(3.4) Organizational Process Assets updates:


(3.2) Project Management Plan updates





Contract Closure


The Contract Closure process supports the Close Project process, since it involves verification that all work and deliverables were acceptable. The Contract Closure process also involves administrative activities, such as updating records to reflect final results and archiving such information for future use. Contract closure addresses each contract applicable to the project or a project phase. In multi-phase projects, the term of a contract may only be applicable to a given phase of the project.


Early termination of a contract is a special case of contract closure, and can result from a mutual agreement of the parties or from the default of one of the parties.


Contract Closure process is a part of "Project Closing Phase".




(1) Contract Closure - Inputs



(1.1) Procurement Management Plan


(1.2) Contract Management Plan


(1.3) Contract Documentation


(1.4) Contract Closure Procedure







(2) Contract Closure - Tools & Techniques



(2.1) Procurement Audits :The objective of a procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project, or on other projects within the performing organization


(2.2) Records Management System







(3) Contract Closure - Output



(3.1) Closed Contracts : The buyer, usually through its authorized contract administrator, provides the seller with formal written notice that the contract has been completed. Requirements for formal contract closure are usually defined in the terms of the contract, and would be included in the contract management plan, if one was prepared.


(3.2) Organizational Process Assets updates:



  • Contract file: A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion with the final project files.


  • Deliverable acceptance: The buyer, usually through its authorized contract administrator, provides the seller with formal written notice that the deliverables have been accepted or rejected.


  • Lessons learned documentation: Lessons learned analysis and process improvement recommendations are developed for future purchasing and acquisition planning and implementation.






Last Moment Revision:



  • Buyer:The acquirer of products, services, or results for an organization.


  • Contract: A contract is a mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.


  • Contract Administration: The process of managing the contract and the relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract related changes and, when appropriate, managing the contractual relationship with the outside buyer of the project.


  • Contract Closure: The process of completing and settling the contract, including resolution of any open items and closing each contract.


  • Contract Management Plan: The document that describes how a specific contract will be administered and can include items such as required documentation delivery and performance requirements.


  • Contract Statement of Work (SOW): A narrative description of products, services, or results to be supplied under contract.


  • Contract Work Breakdown Structure (CWBS): A portion of the work breakdown structure for the project developed and maintained by a seller contracting to provide a subproject or project component.


  • Procurement Documents: Those documents utilized in bid and proposal activities, which include buyer.s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal and seller.s responses.


  • Procurement Management Plan: The document that describes how procurement processes from developing procurement documentation through contract closure will be managed.


  • Request for Information: A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.


  • Request for Proposal (RFP): A type of procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.


  • Request for Quotation (RFQ): A type of procurement document used to request price quotations from prospective sellers of common or standard products or services.


  • Request Seller Responses: The process of obtaining information, quotations, bids, Glossary offers, or proposals, as appropriate.


  • Seller: A provider or supplier of products, services, or results to an organization.


  • Select Sellers: The process of reviewing offers, choosing from among potential sellers, and negotiating a written contract with a seller.


  • Standard: A document established by consensus and approved by a recognized body that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.


  • Statement of Work (SOW): A narrative description of products, services, or results to be supplied.


  • War Room: A room used for project conferences and planning, often displaying charts of cost, schedule status, and other key project data.



Project Communication Management

Project Communication Management







Definition


Communication Management is a groups of processes required to ensure timely and appropriate development, collection, dissemination, storage, and ultimately, disposition of project information.


Processes


There are following four processes which are part of Project Communication Management.



  • Communications Planning

  • Information Distribution

  • Performance Reporting

  • Manage Stakeholders




Communications Planning


Determining the information and communications needs of the stakeholders. It includes to identify the following:


  • Who needs what information


  • When they will need it


  • How it will be given to them



Communications Planning process is a part of "Project Planning Phase".




(1) Communications Planning - Inputs



(1.1) Enterprise Environmental Factors


(1.2) Organizational Process Assets


(1.3) Project Scope Statement: The project scope statement provides a documented basis for future project decisions and for confirming a common knowledge of project scope among the stakeholders. Stakeholder analysis is completed as part of the Scope Definition process.


(1.4) Project Management Plan: The project management plan provides background information about the project, including dates and constraints that may be relevant to Communications Planning.



  • Constraints: Factors that limit project team's options. Examples of constraints include team members situated in different geographic locations, incompatible communication software versions, or limited communications technical capabilities.


  • Assumptions : Specific assumptions that affect Communications Planning will depend upon the particular project..








(2) Communications Planning - Tools & Techniques



(2.1) Communications Requirements Analysis : The analysis of the communications requirements results in the sum of the information needs of the project stakeholders. The project manager should consider the number of potential communication channels or paths as an indicator of the complexity of a project's communications.


The total number of communication channels is n(n-1)/2, where n = number of stakeholders. Thus, a project with 10 stakeholders has 45 potential communication channels.


(2.2) Communications Technology: The methodologies used to transfer information among project stakeholders can vary significantly. Communications technology factors that can affect the project include:



  • The urgency of the need for information

  • The availability of technology

  • The expected project staffing

  • The length of the project

  • The project environment







(3) Communications Planning - Output



(3.1) Communication management plan:The communications management plan can also include guidelines for project status meetings, project team meetings, e-meetings, and e-mail. It provides following



  • Stakeholder communication requirements


  • Person or groups who will receive the information


  • Methods or technologies used to convey the information, such as memoranda, e-mail, and/or press releases


  • Frequency of the communication, such as weekly


  • Collection and filing structure: Methods used to gather, update, and store various types of information.


  • Distribution structure : Specifies to whom information will flow and what method will be used to distribute various types of information.


  • Description of information to be distributed: Includes format, content, level of detail, and conventions and definitions to be used.


  • Production schedules : It shows when each type of communication will be produced.


  • Methods for accessing information between scheduled communications.


  • Updation Method: A method for updating and refining the communications management plan as the project progresses and develops.






Information Distribution


Information distribution is making needed information available to project stakeholders in a timely manner.


This is implementation of the communications management plan.


Information Distribution process is a part of "Project execution Phase".




(1) Information Distribution - Input



(1.1) Communications Management Plan






(2) Information Distribution - Tools & Technology



(2.1) Communications skills: Skills for exchanging information.


Communication has many dimensions:



  • Written, oral, listening, and speaking


  • Internal and external communication


  • Formal reports, briefings and informal memos, ad hoc conversations


  • Vertically, up an down the organization, and horizontally, with peers.



(2.2) Information Gathering and Retrieval Systems : Manual filing systems, databases, project management software.


(2.3) Information-distribution systems : Methods such as project meetings, hard-copy document distribution, shared access to project databases, fax, electronic mail, voice mail, and video conferencing.


(2.4) Lessons Learned Process: Project managers have a professional obligation to conduct lessons learned sessions for all projects with key internal and external stakeholders, particularly if the project yielded less than desirable results.







(3) Information Distribution - Outputs



(3.1) Organizational Process Assets updates: It includes following:



  • Lessons learned documentation.: Documentation includes the causes of issues, reasoning behind the corrective action chosen, and other types of lessons learned about Information Distribution.


  • Project records : Organized storage and maintenance of correspondence, memos, reports, and documents describing the project.


  • Project reports : Formal reports showing status or issues.


  • Project presentations : Information provided to the project stakeholders as required.


  • Feedback from stakeholders: Information received from stakeholders concerning project operations can be distributed and used to modify or improve future performance of the project.


  • Stakeholder notifications: Information may be provided to stakeholders about resolved issues, approved changes, and general project status.



(3.2) Requested Changes: Changes to the Information Distribution process should trigger changes to the project management plan and the communications management plan.





Performance Reporting


Collecting and disseminating performance information. Keep stakeholders informed how resources are used on the project.


Performance Reporting includes



  • Status reporting, progress measurement, and forecasting.


  • Provides information on scope, schedule, cost, and quality, and possibly on risk and procurement.



Performance Reporting process is a part of "Project Controlling Phase".




(1) Performance Reporting - Input



(1.1) Work Performance Information: Work performance information on the completion status of the deliverables and what has been accomplished is collected as part of project execution, and is fed into the Performance Reporting process.


(1.2) Performance Measurements


(1.3) Forecasted Completion


(1.4) Quality Control Measurements


(1.5) Project Management Plan: The project management plan provides baseline information.


(1.6) Approved Change Requests: Approved change requests (Section 4.6.3.1) are requested changes to expand or contract project scope, to modify the estimated cost, or to revise activity duration estimates that have been approved and are ready for implementation by the project team.


(1.7) Deliverables: Deliverables are any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project.






(2) Performance Reporting - Tools & Techniques



(2.1) Information Presentation Tools: Software packages that include table reporting, spreadsheet analysis, presentations,
or graphic capabilities can be used to create presentation-quality images of project performance data.


(2.2) Performance Information Gathering and Compilation


(2.3) Status Review Meetings: Status review meetings are regularly scheduled events to exchange information about the project.


(2.4) Time Reporting Systems: Time reporting systems record and provide time expended for the project.


(2.5) Cost Reporting Systems: Cost reporting systems record and provide the cost expended for the project.






(3) Performance Reporting - Outputs



(3.1) Performance report : Organizes and summarizes the information gathered and presents the results.


(3.2) Forecasts: Forecasts are updated and reissued based on work performance information provided as the project is executed.


(3.3) Requested Changes: Requests for changes to some aspect of the project. Handled by the change control processes.


(3.4) Recommended Corrective Actions


(3.5) Organizational Process Assets updates: Lessons learned documentation includes the causes of issues, reasoning behind the
corrective action chosen, and other types of lessons learned about performance reporting.



Manage Stakeholders


Stakeholder management refers to managing communications to satisfy the needs of, and resolve issues with, project stakeholders. The project manager is usually responsible for stakeholder management.


Manage Stakeholders process is a part of "Project Controlling Phase".




(1) Manage Stakeholders - Inputs



(1.1) Communications Management Plan: Stakeholder requirements and expectations provide an understanding of stakeholder
goals, objectives, and level of communication during the project. The needs and expectations are identified, analyzed, and documented in the communications management plan


(1.2) Organizational Process Assets: As project issues arise, the project manager should address and resolve them with
the appropriate project stakeholders.







(2) Manage Stakeholders - Tools & Techniques



(2.1) Communications Methods: The methods of communications identified for each stakeholder in the communications management plan are utilized during stakeholder management. Face-to-face meetings are the most effective means for communicating and resolving issues with stakeholders. When face-to-face meetings are not warranted or practical then telephone calls, electronic mail, and other electronic tools are useful for exchanging information and dialoguing.


(2.2) Issue Logs: An issue is clarified and stated in a way that it can be resolved. An owner is assigned and a target date is usually established for closure. Unresolved issues can be a major source of conflict and project delays.







(3) Manage Stakeholders - Outputs



(3.1) Resolved Issues: As stakeholder requirements are identified and resolved, the issues log will document concerns that have been addressed and closed.


(3.2) Approved Change Requests: Approved change requests include stakeholder issue status changes in the staffing management plan, which are necessary to reflect changes to how communications with stakeholders will occur.


(3.3) Approved Corrective Actions: Approved corrective actions include changes that bring the expected future performance of the project in line with the project management plan.


(3.4) Organizational Process Assets updates


(3.5) Project Management Plan updates: The project management plan is updated to reflect the changes made to the communications plan.



Last Moment Revision:



  • Active Listening: The receiver confirms that she is listening, confirms agreement and asks for clarification if required,


  • Administrative Closure: Generating, gathering, and disseminating information to formalize phase or project completion.


  • Channels of communication:



    • Upward communication (vertically or diagonally): For higher management


    • Downward communication (vertically or diagonally): For higher management


    • Lateral communication (horizontally): For peers




  • Communications Planning: Determining the information and communications needs of the project stakeholders. This includes who needs it, when they will need it, and how it will be given to them.


  • Information Distribution: Making needed information available to project stakeholders in a timely manner.


  • Communication Blockers:



    • Noise


    • Distance


    • Improper encoding of messages


    • Saying "that is a bad idea"


    • Hostility


    • Language


    • Culture




  • Communication Methods:



    • Formal Verbal: Presentation, speeches.


    • Informal Verbal: Meetings, Conversations


    • Non-Verbal: Encoding a message without using words. Usually done through body language. Total Message Impact = Words (7%) + Vocal tones (38%) + Facial expressions (55%)


    • Formal Written: Project Plan, Project charter, Specifications


    • Informal Written: Memos, Email, Notes.




  • Effective Listening: Watching the speaker to pick up physical gestures and facial expressions, thinking about what you want to say before responding, asking questions, repeating and providing feedback.


  • Filtering : A phenomenon that occurs when a large portion of the message is lost in vertical/horizontal communication.


  • Noise: Anything that interferes with the transmission and understanding of the message (e.g., distance).


  • Paralingual: means the pitch and tone of your voice. This also helps to convey a message.


  • Memos, emails are examples of non-formal communication.


  • Reports, Metrics are example of formal communication.


  • Approximately 70-90% of project manager's time is spend communicating.


  • PM's spend ~50% of their time in meetings.


  • Three basic elements of interpersonal communication:



    • The sender (or encoder) of the message.


    • The signal or the message.


    • The receiver (or decoder) of the message.




  • Number of communication channel will be calculated using formula n*(n-1)/2 where n is the number of people involved in the communication. So if there are ten stakeholders in a project, there are 10*9/2 = 45 channels of communication.



Human Resource Management

Human Resource Management







Definition


Human resource Management is a groups of processes required to make the most effective use of the people involved with the project.


Processes


The Project Human Resource Management processes include the following:



  • Human Resource Planning

  • Acquire Project Team

  • Develop Project Team

  • Manage Project Team




Human Resource Planning


Planning, identifying, documenting, and assigning project roles, responsibilities, and reporting relationships to individuals or groups.



  • Individuals and groups may be part of the organization performing the project or may be external to it.


  • Internal groups are often associated with a specific functional department, such as engineering, marketing, or accounting.



Human Resource Planning process is a part of "Project Planning Phase".




(1) Human Resource Planning - Inputs



(1.1) Enterprise Environmental Factors:The definition of project roles and responsibilities is developed with an understanding of the ways that existing organizations will be involved and how the technical disciplines and people currently interact with one another.


(1.2) Organizational Process Assets : Templates and checklists reduce the amount of planning time needed at the beginning of a project and reduce the likelihood of missing important responsibilities.


(1.3)Project Management Plan: The project management plan includes the activity resource requirements, plus descriptions of project management activities, such as quality assurance, risk management, and procurement, that will help the project management team identify all of the required roles and responsibilities.







(2) Human Resource Planning - Tools & Techniques



(2.1) Organization Charts and Position Descriptions : Various formats exist to document team member roles and responsibilities. Most of the formats fall into one of three types



  • Hierarchical-type charts: The traditional organization chart structure can be used to show positions and relationships in a graphic, top-down format.


  • Matrix-based charts: A responsibility assignment matrix (RAM) is used to illustrate the connections between work that needs to be done and project team members. RACI is an example of RAM.


  • Text-oriented formats: Team member responsibilities that require detailed descriptions can be specified in text-oriented formats.



(2.2) Networking: Human resources networking activities include proactive correspondence, luncheon meetings, informal conversations, and trade conferences


(2.3) Organizational theory : Body of literature describing how an organization can, and should be structured.







(3) Human Resource Planning - Output



(3.1) Role and responsibilities : The following items should be addressed addressed when listing the roles and responsibilities needed to complete the project:



  • Role: The label describing the portion of a project for which a person is accountable.


  • Authority: The right to apply project resources, make decisions, and sign approvals.


  • Responsibility: The work that a project team member is expected to perform in order to complete the project.s activities.


  • Competency: The skill and capacity required to complete project activities.



(3.2) Organization Chart : A project organization chart is a graphic display of project team members and their reporting relationships.


(3.3) Staffing Management Plan: The staffing management plan, a subset of the project management plan describes when and how human resource requirements will be met.





Acquire Project Team


Acquire Project Team is the process of obtaining the human resources needed to complete the project.


Staff Acquisition process is a part of "Project Execution Phase".




(1) Acquire Project Team - Input



(1.1) Enterprise Environmental Factors: Project team members are drawn from all available sources, both internal and external. When the project management team is able to influence or direct staff assignments, characteristics to consider include:



  • Availability: Who is available and when are they available?


  • Ability: What competencies do people possess?


  • Experience: Have the people done similar or related work? Have they done it well?


  • Interests: Are the people interested in working on this project?


  • Cost: How much will each team member be paid, particularly if they are contracted from outside the organization?



(1.2) Organizational Process Assets : One or more of the organizations involved in the project may have policies, guidelines, or procedures governing staff assignments


(1.3) Roles and Responsibilities : Roles and responsibilities define the positions, skills, and competencies that the project demands.


(1.4) Project Organization Charts: Project organization charts provide an overview regarding the number of people needed for the project

(1.5) Staffing Management Plan: The staffing management plan, along with the project schedule, identifies the time periods each project team member will be needed and other information important to acquiring the project team.






(2) Acquire Project Team - Tools & Technology



(2.1) Pre-Assignment: Staff have been assigned because they were promised in the proposal or were defined in the project charter (e.g. internal projects).


(2.2) Negotiations : With Functional Managers or other project management teams; to ensure receiving needed resources when required.


(2.3) Acquisition : When the performing organization lacks the in-house staff needed to complete the project, the required services can be acquired from outside sources.


(2.4) Virtual Teams: Virtual teams can be defined as groups of people with a shared goal, who fulfill their roles with little or no time spent meeting face to face.







(3) Acquire Project Team - Outputs



(3.1) Project Staff Assignments: Appropriate people have been assigned to work on the project full-time, part-time, or variably, based on project needs.


(3.2) Resource Availability : Resource availability documents the time periods each project team member can work on the project.


(3.3) Staffing Management Plan updates: As specific people fill the project roles and responsibilities, changes in the staffing management plan may be needed because people seldom fit the exact staffing requirements that are planned.





Develop Project Team


Team Development involves



  • Enhancing the ability of stakeholders to contribute as individuals.


  • Enhancing the ability of the team to function as a team.



Team Development process is a part of "Project Execution Phase".




(1)Develop Project Team - Input



(1.1) Project Staff Assignments: Team development starts with a list of the project team members. Project staff assignment documents identify the people who are on the team.


(1.2) Staffing Management Plan : The staffing management plan identifies training strategies and plans for developing the project team.


(1.3) Resource Availability: Resource availability information identifies times that project team members can participate in team development activities.






(2) Develop Project Team - Tools & Techniques



(2.1) Team-building activities : Actions taken to improve team performance. (e.g. Outward bound)


(2.1) General Management Skills: Interpersonal skills sometimes known as .soft skills,. are particularly important to team development


(2.2) Training: Training includes all activities designed to enhance the competencies of the project team members. Training can be formal or informal. Examples of training methods include classroom, online, computer-based, on-the-job training from another
project team member, mentoring, and coaching.


(2.3) Team-Building Activities: Team-building activities can vary from a five-minute agenda item in a status review meeting to an off-site, professionally facilitated experience designed to improve interpersonal relationships.


(2.4) Ground Rules: Ground rules establish clear expectations regarding acceptable behavior by project team members.


(2.5) Co-Location: Co-location involves placing many or all of the most active project team members in the same physical location to enhance their ability to perform as a team.


(2.6) Reward and recognition systems : Formal management actions that promote or reinforce desired behavior. Clear, explicit and achievable.






(3) Develop Project Team - Outputs



(3.1) Team Performance Assessment: As development efforts such as training, team building, and co-location are implemented, the project management team makes informal or formal assessments of the project team.s effectiveness. The evaluation of a team.s effectiveness can include indicators such as



  • Improvements in individual skills


  • Improvements in team behaviors


  • Improvements in either individual skills or team capabilities






Manage Project Team


Manage Project Team involves tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance.




(1) Manage Project Team - Inputs



(1.1) Organizational Process Assets: The project management team should utilize an organization.s policies, procedures,
and systems for rewarding employees during the course of a project.


(1.2) Project Staff Assignments: Project staff assignments provide a list of the project team members to be evaluated during this monitoring and controlling process.


(1.3) Roles and Responsibilities: A list of the staff.s roles and responsibilities is used to monitor and evaluate
performance.


(1.4) Project Organization Charts: Project organization charts provide a picture of the reporting relationships among
project team members.


(1.5) Staffing Management Plan: The staffing management plan lists the time periods that team members are expected to work on the project, along with information such as training plans, certification requirements, and compliance issues.


(1.6) Team Performance Assessment: The project management team makes ongoing formal or informal assessments of the project team.s performance.


(1.7) Work Performance Information: As part of the Direct and Manage Project Execution process, the project management team directly observes team member performance as it occurs.


(1.8) Performance Reports: Performance reports provide documentation about performance against the project management plan.







(2) Manage Project Team - Tools & Techniques



(2.1) Observation and Conversation: Observation and conversation are used to stay in touch with the work and attitudes of project team members.


(2.2) Project Performance Appraisals: The need for formal or informal project performance appraisals depends on the length of the project, complexity of the project, organizational policy, labor contract requirements, and the amount and quality of regular communication.


(2.3) Conflict Management: Successful conflict management results in greater productivity and positive working relationships.


(2.4) Issue Log: As issues arise in the course of managing the project team, a written log can document persons responsible for resolving specific issues by a target date.


(2.5) Staffing Management Plan: The staffing management plan lists the time periods that team members are expected to work on the project, along with information such as training plans, certification requirements, and compliance issues.


(2.6) Team Performance Assessment: The project management team makes ongoing formal or informal assessments of the project team.s performance.


(1.7) Work Performance Information: As part of the Direct and Manage Project Execution process, the project management team directly observes team member performance as it occurs.


(1.8) Performance Reports: Performance reports provide documentation about performance against the project management .







(3) Manage Project Team - Outputs



(3.1) Requested Changes: Staffing changes, whether by choice or by uncontrollable events, can affect the rest of the project plan.


(3.2) Recommended Corrective Actions : Corrective action for human resource management includes items such as staffing changes, additional training, and disciplinary actions.


(3.3) Recommended Preventive Actions: Preventive actions can include cross-training in order to reduce problems during project team member absences, additional role clarification to ensure all responsibilities are fulfilled, and added personal time in anticipation of extra work that may be needed in the near future to meet project deadlines.


(3.4) Organizational Process Assets updates: Lessons learned documentation and Input to organizational performance appraisals.


(3.5) Project Management Plan updates: Approved change requests and corrective actions can result in updates to the
staffing management plan



Last Moment Revision:



  • Concurrent Engineering: An approach to project staffing that, in its most general form, calls for implementers to be involved in the design phase. (Sometimes confused with fast tracking)


  • Functional Manager: A manager responsible for activities in a specialized department or function. (e.g., engineering, manufacturing, marketing)


  • Functional Organization: An organization structure in which staff are grouped hierarchically by specialty


  • Halo Effect is the assumption that because the person is good at a technology, he will be good as a project manager.


  • Line Manager: The manager of any group that actually makes a product or performs a service. ie. A functional manager.


  • Leadership Styles:



    • Directing: Telling others what to do


    • Facilitating: Coordinating the input of others


    • Coaching: Instructing others


    • Supporting: Providing assistance along the way


    • Autocratic: Making decisions without input


    • Consultative: Inviting ideas from others


    • Consensus: Problem solving in a group with decision-making based on group agreement




  • Matrix Organization: Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project.


  • Organizational Breakdown Structure: A depiction of the project organization arranged so (OBS) as to relate work packages to organizational units.


  • Project Management Team: The members of the project team who are directly involved in project management activities. On some smaller projects, the project management team may include virtually all of the project team members.


  • Project Manager: The individual responsible for managing a project.


  • Project Team Members: The people who report either directly or indirectly to the project manager.


  • Projectized Organization: Any organizational structure in which the project manager has full authority to assign priorities and to direct the work of individuals assigned to the project.


  • Responsibility Assignment Matrix (RAM): defines who does what. The Staffing Management Plan defines when will people get added and removed from the project.


  • Team Conflicts: Conflicts in the team are caused due to the following reasons in decreasing order of occurrences.



    • Schedules


    • Project Priorities


    • Resources


    • Technical Opinions



    So the most common cause of conflicts in projects are issues related to schedules.


  • Problem Solving Techniques: There are standard conflict resolution techniques available to resolve conflicts. These are (from best to worst):



    • Problem Solving or Confrontation: (look at the facts, analyze them and find a solution). This is an example of win-win situation.


    • Compromising: (Find the middle route). This is an example of loose-loose situation.


    • Withdrawal or Avoidance


    • Smoothing (Emphasize the agreements)


    • Forcing :(Do it my way). This is an example of win-loose situation.



  • Project Manager's Power A Project Manager may yield authority over the project team in one of the following ways:



    • Referent - project team knows the PM


    • Formal Power - Power due to Project Managers position


    • Technical Power - Project Manager has strong technical skills in the projects domain.


    • Coercive Power - The project team is afraid of the power the Project Manager holds.



  • Organizational Theories: There are many organizational theories. Some of the main ones are - Expectancy Theory, McGregory Theory, Herzberg Theory, Maslow's Hierarchy of needs.


  • Expectancy Theory : People accept to be rewarded for their efforts. This is a motivation factor. People put in more efforts because they accept to be rewarded for their efforts.


  • McGregory Theory of X and Y : There are two type of employees. Employees of type X need to be always watched. They cannot be trusted and need to be micro managed. Employees of type Y, on the other hand, are self-motivated. They can work independently.


  • Herzberg Theory: Hygiene factors (salary, cleanliness etc.) if not present can destroy motivation. However good hygiene alone does not improve motivation. What motivates people is the work itself. The motivation factors for employees include responsibility, self-actualization, growth, recognition etc.


  • Maslow's Hierarchy of needs: There are various levels of needs for an employee. When a lower level is met, employee attempts to reach the next higher level. The maximum satisfaction is achieved when the employee reaches the highest level of satisfaction - self-fulfillment. These level of needs from the highest to lowest are:



    • Self-fulfillment


    • Esteem


    • Social


    • Safety


    • Physiology



  • War room: is a technique for team building. As part of this the project team meets in one room. It helps to create a project identity.



Project Quality Management

Project Quality Management







Definition


Project Quality Management is a group of processes necessary to ensure that the project will satisfy customer requirements.


Processes


There are following three processes which are part of Project Quality Management.



  • Quality Planning

  • Quality Assurance

  • Quality Control


Modern quality management complements project management. For example, both disciplines recognize the importance of:

Customer satisfaction: Understanding, evaluating, defining,and managing expectations so that customer requirements are met.


Prevention over inspection: The cost of preventing mistakes is generally much less than the cost of correcting them, as revealed by inspection.


Management responsibility: Success requires the participation of all members of the team, but it remains the responsibility of management to provide the resources needed to succeed.


Continuous improvement: The plan-do-check-act cycle is the basis for quality improvement as defined by Shewhart and modified by Deming.




Quality Planning


Identifying which quality standards are relevant to the project and determining how to satisfy them.


"Quality is planned in - not inspected in"


Quality Planning process is a part of "Project Planning Phase".




(1) Quality Planning - Inputs



(1.1) Enterprise Environmental Factors: Governmental agency regulations, rules, standards, and guidelines specific to the application area may affect the project.


(1.2) Organizational Process Assets: Organizational quality policies, procedures and guidelines, historical databases and lessons learned from previous projects specific to the application area may affect the project. Quality policy is overall intentions and direction of an organization with regard to quality as formally expressed by top management.


(1.3) Project Scope Statement


(1.4) Project Management Plan







(2) Quality Planning - Tools & Techniques



(2.1) Benefit/cost analysis: Cost and benefit tradeoffs of meeting quality requirements. (Less rework).


(2.2) Benchmarking: Comparing actual or planned project practices to other projects, in order to generate ideas for improvement.


(2.3) Design of experiments: Analytical technique that helps identify which variables have the most influence on the overall outcome.


(2.4) Cost of Quality : Total cost of all quality efforts. Includes : Prevention costs, appraisal costs and failure costs.


(2.5) Additional Quality Planning Tools: These include brainstorming, affinity diagrams, force field analysis, nominal group techniques, matrix diagrams, flowcharts like Ishikawa diagram, and prioritization matrices.







(3) Quality Planning - Output



(3.1) Quality Management Plan Describes how the Project Management team will implement quality policy.


(3.2) Quality Metrics: Describes what something is and how it is measured by the quality control process.


(3.3) Quality Checklists : Used to verify that a set of required steps has been performed.


(3.4) Process Improvement Plan: The process improvement plan details the steps for analyzing processes that will facilitate the identification of waste and non-value added activity, thus increasing customer value, such as:



  • Process boundaries: Describes the purpose, start, and end of processes, their inputs and outputs, data required, if any, and the owner and stakeholders of processes.


  • Process configuration: A flowchart of processes to facilitate analysis with interfaces identified.


  • Process metrics: Maintain control over status of processes.


  • Targets for improved performance: Guides the process improvement activities.



(3.5) Quality Baseline: The quality baseline records the quality objectives of the project.


(3.6) Project Management Plan updates: The project management plan will be updated through the inclusion of a subsidiary quality management plan and process improvement plan.





Quality Assurance


Planned and systematic activities implemented within the quality system in order to provide confidence that the project will satisfy the relevant quality standards.


Quality Assurance process is a part of "Project Execution Phase".




(1) Quality Assurance - Input



(1.1) Quality Management Plan


(1.2) Quality Metrics


(1.3) Process Improvement Plan


(1.4) Work Performance Information


(1.5) Approved Change Requests


(1.6) Quality Control Measurements


(1.7) Implemented Change Requests


(1.8) Implemented Corrective Actions


(1.9) Implemented Defect Repair


(1.10) Implemented Preventive Actions






(2) Quality Assurance - Tools & Technology



(2.1) Quality-planning tools and techniques: include but not limited to:


  • Benefit/cost analysis


  • Benchmarking


  • Flowcharting


  • Design of experiments



(2.2) Quality audits : Structured review of Quality Management activities to identify the lessons learned that can improve the performance of this project and of other projects.


(2.3) Process Analysis: Process analysis follows the steps outlined in the process improvement plan to identify needed improvements from an organizational and technical standpoint.


(2.4) Quality Control Tools and Techniques







(3) Quality Assurance - Outputs



(3.1) Requested Changes: Quality improvement includes taking action to increase the effectiveness and efficiency of the policies, processes, and procedures of the performing organization, which should provide added benefits to the stakeholders of all projects.


(3.2) Recommended Corrective Actions


(3.3) Organizational Process Assets updates


(3.4) Project Management Plan updates





Quality Control


Monitoring results to determine if they comply with relevant quality standards and identifying ways to eliminate problem causes or unsatisfactory results.


Project results are deliverables and management results, such as cost and schedule performance.


Quality Control process is a part of "Project Controlling Phase".




(1) Quality Control - Input



(1.1) Quality Management Plan


(1.2) Quality Metrics


(1.3) Quality Checklists


(1.4) Organizational Process Assets


(1.5) Work Performance Information


(1.6) Approved Change Requests


(1.7) Deliverables






(2) Quality Control - Tools & Techniques



(2.1) Cause and Effect Diagram: Cause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams, illustrate how various factors might be linked to potential problems or effects.


(2.2) Control Charts: Control charts are graphic display of the results over a time of a process. They are used to determine if the process is "in control".


(2.3) Flowcharting: Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process and shows how various elements of a system interrelate.


(2.4) Histogram: A histogram is a bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. The height of each column represents the relative frequency of the characteristic. This tool helps identify the cause of problems in a process by the shape and width of the distribution.


(2.5) Pareto Diagram: is a histogram and ordered by frequency of occurrence, that shows how many results were generated by type or category of identified case. Pareto diagrams are conceptually related to Pareto's law which holds that a relatively small number of causes will typically produce a large number of the problems or defects. This is commonly referred to as the 80/20 principle where 80% of the problems are due to 20% of the causes.


(2.6) Run Chart: A run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time.


(2.7) Scatter Diagram: A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables.


(2.8) Statistical Sampling: Choosing part of a population of interest for inspection. Decision made thereafter on quality.


(2.9) Inspection (reviews): Measuring, examining, and testing to determine whether results conform to requirements.


(2.10) Defect Repair Review: Defect repair review is an action taken by the quality control department or similarly titled organization to ensure that product defects are repaired and brought into compliance with requirements or specifications.






(3) Quality Control - Outputs



(3.1) Quality Control Measurements: Quality control measurements represent the results of QC activities that are fed
back to QA to reevaluate and analyze the quality standards and processes of the performing organization.


(3.2) Validated Defect Repair: The repaired items are re inspected and will be either accepted or rejected before
notification of the decision is provided. Rejected items may require further defect repair.


(3.3) Quality Baseline updates


(3.4) Recommended Corrective Actions


(3.5) Recommended Preventive Actions


(3.6) Requested Changes


(3.7) Recommended Defect Repair


(3.8) Organization Process Assets updates:



  • Completed checklists

  • Lessons learned documentation.


(3.9) Validated Deliverables: A goal of quality control is to determine the correctness of deliverables. The results
of the execution quality control processes are validated deliverables.


(3.10) Project Management Plan updates



Last Moment Revision:



  • Control: The process of comparing actual performance with planned performance, analyzing variances, evaluating possible alternatives, and taking appropriate corrective action as needed.


  • Control Charts: A graphic display of the results, over time and against established control limits, of a process. They are used to determine if the process is in control or in need of adjustment.


  • Corrective Action: Changes made to bring expected future performance of the project into line with the plan.


  • Cost of Quality: The cost incurred to ensure quality. Includes quality planning, quality control, quality assurance, and rework.


  • Pareto Diagram: A histogram ordered by frequency of occurrence that shows how many results were generated by each identified cause.


  • Performance Reporting: Collecting and disseminating information about project performance to help ensure project progress.


  • Project Quality Management: The processes required to ensure that the project will satisfy the needs for which it as undertaken.


  • Quality Assurance (QA): The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. Also, the organizational unit that is assigned responsibility for quality assurance.


  • Quality Control (QC): The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Also, the organizational unit that is assigned responsibility for quality control.


  • Quality Plan: A document setting out the specific quality practices, resources and sequence of activities relevant to a particular product, service, contract or project.


  • Quality Policy: The overall quality intentions and direction of an organization as regards quality, as formally expressed by top management.


  • Quality Planning: Identifying which quality standards are relevant to the project and determining how to satisfy them.


  • Total Quality Management (TQM): A common approach to implementing a quality improvement program within an organization.


  • Deming suggested a process of Plan-Do-Check-Act to improve quality. According to Deming, each process should go through these steps to improve the quality.


  • Kaizen Theory : Apply continuous small improvements to reduce costs and ensure consistency.


  • Marginal Analysis : You compare the cost of incremental improvements against the increase in revenue made from quality improvements. Optimal quality is reached when cost of improvements equals the costs to achieve quality.


  • Rule of seven : In control charts, if there are seven points on one side of mean, then an assignable cause must be found.


  • Customer Satisfaction: Customer expectations met. Conform to requirements.


  • Prevention vs. Inspection The cost of preventing mistakes/defects is much less than the cost of correcting them later when identified by inspection.


  • Quality is Management's responsibility


  • The aim of quality is to ensure "Conformance to requirements" and "fitness for use".


  • Giving extras i.e. doing more than the project scope is called gold-plating. PMI does not recommend gold-plating.


  • Quality must be planned in and not inspected in. Prevention is more important than inspection.


  • In Just-In-Time (JIT) Quality, the amount of inventory is zero. The inputs are made available, just when they are required. This reduces the storage cost.



Monday, February 16, 2009

Project Risk Management

Project Risk Management







Definition


Project Risk Management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives.


Project Risk is an uncertain event or condition that, if occurs, has a positive or a negative effect on a project objective.


Processes


There are following six processes which are part of Project Risk Management.



  • Risk Management Planning

  • Risk Identification

  • Qualitative Risk Analysis

  • Quantitative Risk Analysis

  • Risk Response Planning

  • Risk Monitoring and Control




Risk Management Planning



Process of deciding how to approach and plan the risk management activities for a project.


Risk Management Planning process is a part of "Project Planning Phase".




(1) Risk Management Planning - Inputs



(1.1) Enterprise Environmental Factors: The attitudes toward risk and the risk tolerance of organizations and people involved in the project will influence the project management plan.


(1.2) Organizational Process Assets: Organizations may have predefined approaches to risk management such as risk
categories, common definition of concepts and terms, standard templates, roles and responsibilities, and authority levels for decision-making.


(1.3) Project Scope Statement


(1.4) Project Management Plan







(2) Risk Management Planning - Tools & Techniques



(2.1) Planning Meetings and Analysis: Attendees are the PM, leadership team, key stakeholders and those in the organization responsible to manage project risks.







(3) Risk Management Planning - Output



(3.1) Risk Management Plan Describes how risk identification, analysis, response planning and monitoring will take place.


The Risk Management Plan may include the following:



  • Methodology: Defines the approaches, tools, and data sources that may be used to perform risk management on the project.

  • Approach and tools to be used

  • Roles and responsibilities

  • Budgeting

  • Timing

  • Thresholds

  • Reporting and tracking





Risk Identification



Determining which risks might affect the project and documenting their characteristics.


Risk Identification is an iterative process, involving the project team, management team, stakeholders and subject matter experts (if required).


Risk Identification process is a part of "Project Planning Phase".




(1) Risk Identification - Input



(1.1) Enterprise Environmental Factors: Published information, including commercial databases, academic studies, benchmarking, or other industry studies, may also be useful in identifying risks.


(1.2) Organizational Process Assets: Information on prior projects may be available from previous project files, including actual data and lessons learned.


(1.3) Project Scope Statement: Project assumptions are found in the project scope statement. Uncertainty in project assumptions should be evaluated as potential causes of project risk.


(1.4) Risk Management Plan: Risk Management Plan Key inputs from the risk management plan to the Risk Identification process are the assignments of roles and responsibilities, provision for risk management activities in the budget and schedule, and categories of risk, which are sometimes expressed in an RBS.


(1.5) Project Management Plan: The Risk Identification process also requires an understanding of the schedule,
cost, and quality management plans found in the project management plan.






(2) Risk Identification - Tools & Technology



(2.1) Documentation reviews: Review project plans, assumptions.


(2.2) Information Gathering Techniques: Delphi, brainstorming, interviewing, SWOT analysis.


(2.3) Checklists Analysis: can be developed based on historical information and knowledge.


(2.4) Assumptions analysis: Explores the validity of each assumption made.


(2.5) Diagramming Techniques: It may include



  • Cause-and-effect diagram or Ishikawa or fishbone diagrams: This is useful for identifying causes of risks


  • System or process flow charts: Shows how various elements of a system inter-relate and the mechanism of causion


  • Influence diagram: A Graphical representation of a problem showing casual influences, time ordering of events and other relationships among variables and outcomes.








(3) Risk Identification - Outputs



(3.1) Risks Register: The risk register ultimately contains the outcomes of the other risk management processes as they are conducted. The preparation of the risk register begins in the Risk Identification process with the following information, and then
becomes available to other project management and Project Risk Management processes.



  • List of identified risks

  • List of potential responses

  • Root causes of risk

  • Updated risk categories





Qualitative Risk Analysis



Process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on the project.


Qualitative Risk Analysis process is part of "Project Planning Phase".




(1) Qualitative Risk Analysis - Input



(1.1) Organizational Process Assets: Data about risks on past projects and the lessons learned knowledge base can be used in the Qualitative Risk Analysis process.


(1.2) Project Scope Statement


(1.3) Risk Management Plan: Key elements of the risk management plan for Qualitative Risk Analysis include roles and responsibilities for conducting risk management, budgets, and schedule activities for risk management, risk categories, definition of probability and impact, the probability and impact matrix.


(1.4) Risk Register: A key item from the risk register for Qualitative Risk Analysis is the list of identified risks.






(2) Qualitative Risk Analysis - Tools & Techniques



(2.1) Risk probability and impact Assessment: Probability is the likelihood the event will occurs. Impact is the effect on project objectives if the risk occurs.


(2.2) Probability/Impact risk rating matrix


(2.3) Risk Data Quality Assessment: A qualitative risk analysis requires accurate and unbiased data if it is to be credible. Analysis of the quality of risk data is a technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which the risk is understood and the accuracy, quality, reliability, and integrity of the data about the risk.


(2.4) Risk Categorization

(2.5) Risk Urgency Assessment: Risks requiring near-term responses may be considered more urgent to address.








(3) Qualitative Risk Analysis - Output



(3.1) Risk Register updates: The risk register is initiated during the Risk Identification process. The risk register is updated with information from Qualitative Risk Analysis and the updated risk register is included in the project management plan.




Quantitative Risk Analysis


Aims to analyze numerically the probability of each risk and its consequence of project objectives.


Quantitative Risk Analysis process is part of "Project Planning Phase".




(1) Quantitative Risk Analysis - Input



(1.1) Organizational Process Assets: Information on prior, similar completed projects, studies of similar projects by risk specialists, and risk databases that may be available from industry or proprietary sources.


(1.2) Project Scope Statement


(1.3) Risk Management Plan: Key elements of the risk management plan for Quantitative Risk Analysis include roles and responsibilities for conducting risk management, budgets, and schedule activities for risk management, risk categories, the RBS, and revised stakeholders's risk tolerances


(1.4) Risk Register: Key items from the risk register for Quantitative Risk Analysis include the list of identified risks, the relative ranking or priority list of project risks, and the risks grouped by categories.


(1.5) Project Management Plan






(2) Quantitative Risk Analysis - Tools & Techniques



(2.1) Data Gathering and Representation Techniques:



  • Interviewing: Interviewing techniques are used to quantify the probability and impact of risks on project objectives


  • Probability distributions.: Continuous probability distributions represent the uncertainty in values, such as durations of schedule activities and costs of project components. Discrete distributions can be used to represent uncertain events, such as the outcome of a test or a possible scenario in a decision tree.


  • Expert judgment: Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.



(2.2) Quantitative Risk Analysis and Modeling Techniques:



  • Sensitivity analysis: Sensitivity analysis helps to determine which risks have the most potential impact on the project.


  • Expected monetary value analysis: Expected monetary value (EMV) analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen.


  • Decision tree analysis: Decision tree analysis is usually structured using a decision tree diagram that describes a situation under consideration, and the implications of each of the available choices and possible scenarios.


  • Modeling and simulation: A project simulation uses a model that translates the uncertainties specified at a detailed level of the project into their potential impact on project objectives.








(3) Quantitative Risk Analysis - Outputs



(3.1) Risk Register updates: Risk Register is further updated in Quantitative Risk Analysis. The risk register is a component of the project management plan. Updates include the following main components:



  • Prioritized list of quantified risks


  • Probabilistic analysis of project : Forecast of schedule and cost results and confidence levels of achieving these.


  • Probability of achieving cost and time objectives: Probability of achieving project objectives.


  • Trends in quantitative risk analysis results: As the analysis is repeated, a trend may become apparent that leads to conclusions affecting risk responses.





Risk Response Planning



Process of developing options to enhance opportunities and reduce threats to the project.s objectives.


Risk Response Planning process is a part of "Project Planning Phase".




(1) Risk Response Planning - Input



(1.1) Risk Management Plan: It includes



  • List of prioritized risks

  • Prioritized list of quantified risks

  • Probabilistic analysis of project

  • Probability of meeting time and cost objectives

  • Trends in risk analysis results


(1.2) Risk Register: It includes



  • Relative rating or priority list of project risks

  • A list of risks requiring response in the near term

  • A list of risks for additional analysis and response

  • Trends in qualitative risk analysis results

  • Root causes of risks

  • Risks grouped by categories







(2) Risk Response Planning - Tools & Techniques



(2.1) Strategies for Negative Risks or Threats: Three strategies typically deal with threats or risks that may have negative impacts on project objectives if they occur. These strategies are to avoid, transfer, or mitigate:



  • Avoidance: Changing the project plan to eliminate the risk and protect the project objectives.


  • Transference : Shift the consequence of the risk and ownership to a third party. (E.g. insurance)


  • Mitigation : To reduce the probability/impact of a risk to an acceptable threshold. (E.g. prototype).



(2.2) Strategies for Positive Risks or Opportunities: Three responses are suggested to deal with risks with potentially positive impacts on project objectives. These strategies are to exploit, share, or enhance.



  • Exploit: This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen. Directly exploiting responses include assigning more talented resources to the project to reduce the time to completion


  • Share: Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Examples of sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures.


  • Enhance: This strategy modifies the .size. of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks.



(2.3) Strategy for Both Threats and Opportunities:


Acceptance : Project plan will not be changed to deal with the risk. May develop a contingency plan if the risk does occur.


(2.4) Contingent Response Strategy: Some responses are designed for use only if certain events occur. For some risks, it is appropriate for the project team to make a response plan that will only be executed under certain predefined emergency conditions.







(3) Risk Response Planning - Outputs



(3.1) Risk Register updates: It includes following but not limited to:


  • Risk response plan: Risks, description, owners, responsibilities, agreed response.


  • Residual risks : Risks that remain after avoidance, transfer or mitigation done.


  • Secondary risks : Caused by implementing a risk response.


  • Inputs to other processes : Expenditure of additional time, cost or resources required.


  • Contractual agreements:Contractual agreements may be entered into specify each party's responsibility for specific risks.


  • Contingency reserve amount needed


  • Input to a revised project plan: The result of the response planning must be incorporated into the project plan.



(3.2) Project Management Plan updates: Risk response strategies, once agreed to, must be fed back into the appropriate processes in other Knowledge Areas, including the project.s budget and schedule.


(3.3) Risk-Related Contractual Agreements: Contractual agreements, such as agreements for insurance, services, and other items as appropriate, can be prepared to specify each party.s responsibility for specific risks, should they occur.





Risk Monitoring and Control





Process of keeping track of identified risks, monitoring residual risks, executing risk plans and evaluating the effectiveness in reducing risk.


Risk Monitoring and Control process is a part of "Project Controlling Phase".




(1) Risk Monitoring and Control - Input



(1.1) Risk Management Plan: This plan has key inputs that include the assignment of people, including the risk
owners, time, and other resources to project risk management.


(1.2) Risk Register: The risk register has key inputs that include identified risks and risk owners,
agreed-upon risk responses, specific implementation actions, symptoms and warning signs of risk, residual and secondary risks, a watch list of low priority risks, and the time and cost contingency reserves.


(1.3) Approved Change Requests: Approved changes can generate risks or changes in identified risks, and those changes need to be analyzed for any effects upon the risk register, risk response plan, or risk management plan.


(1.4) Work Performance Information: Work performance information, including project deliverables status, corrective actions, and performance reports, are important inputs to Risk Monitoring and Control.


(1.5) Performance Reports: Performance reports provide information on project work performance, such as an analysis that may influence the risk management processes.







(2) Risk Monitoring and Control - Tools & Techniques



(2.1) Risk Reassessment: Risk Monitoring and Control often requires identification of new risks and
reassessment of risks, using the processes of this chapter as appropriate.


(2.2) Risk Audits: Risk audits examine and document the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.


(2.3) Variance and Trend Analysis: Trends in the project.s execution should be reviewed using performance data.
Earned value analysis and other methods of project variance and trend analysis may be used for monitoring overall project performance.


(2.4) Technical Performance Measurement :Technical performance measurement compares technical accomplishments during project execution to the project management plan.s schedule of technical achievement.


(2.5) Reserve Analysis : Throughout execution of the project, some risks may occur, with positive or negative impacts on budget or schedule contingency reserves. Reserve analysis compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project, in order to determine if the remaining reserve is adequate.


(2.6) Status Meetings: Project risk management can be an agenda item at periodic status meetings.







(3) Risk Monitoring and Control - Outputs



(3.1) Risk Register updates


(3.2) Requested Changes


(3.3) Recommended Corrective Actions: Recommended corrective actions include contingency plans and workaround plans.


(3.4) Recommended Preventive Actions: Recommended preventive actions are used to bring the project into compliance
with the project management plan.


(3.5) Organizational Process Assets updates: The six Project Risk Management processes produce information that can be used for future projects, and should be captured in the organizational process assets.


(3.6) Project Management Plan updates: If the approved change requests have an effect on the risk management processes, then the corresponding component documents of the project management plan are revised and reissued to reflect the approved changes





Last Moment Revision:



  • A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive impact on the project. Project risks that are negative are called threats. Project risks that are positive are called opportunities.


  • Non-critical risks should be documented. They should be revisited and reviewed regularly.


  • Risks are identified in all phases.


  • Work-around refers to how to handle risks that have occurred but are not part of risk response plan. This happens in risk monitoring and control phase.

  • Amount at Stake: The extent of adverse consequences which could occur to the project. (Also referred to as risk impact).


  • Business Risk: The inherent chances for both profit or loss associated with a particular endeavor.


  • Contingency Planning: The development of a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.


  • Contingency Reserve: A separately planned quantity used to allow for future situations which may be planned for only in part ("known unknowns"). Contingency reserves are intended to reduce the impact of missing cost or schedule objectives. Contingency reserves are normally included in the project's cost and schedule baselines.


  • Deflection: The act of transferring all or part of a risk to another party, usually by some form of contract.


  • Expected Monetary Value: The product of an event's probability of occurrence and the gain or loss that will result. For example, if there is a 50% probability it will rain, and rain will result in a $100 loss, the expected monetary value of the rain event is $50 (.5 * $100).


  • Impact Analysis: The mathematical examination of the nature of individual risks on the project, as well as potential arrangements of interdependent risks. It includes the quantification of their respective impact severity, probability, and sensitivity to changes in related project variables, including the project life cycle.


  • Insurable Risk: A particular type of risk which can be covered by an insurance policy. Also referred to as a pure risk.


  • Management Reserve: A separately planned quantity used to allow for future situations which are impossible to predict. ("unknown unknowns") Management reserves are intended to reduce the risk of missing cost or schedule objectives. Use of management reserves requires a change to the project's cost baseline.


  • Mitigation: Taking steps to lessen risk by lowering the probability of a risk event's occurrence or reducing its effect should it occur.


  • Monte Carlo Analysis: A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results.


  • Opportunities: As related to risk, positive outcomes of risk.


  • Project Risk Management: Includes the processes concerned with identifying, analyzing, and responding to project risk.


  • Risk Event: A discrete occurrence that may affect the project for better or worse.


  • Risk Identification: Determining which risk events are likely to affect the project.


  • Risk Management Plan: A subsidiary element of the overall project plan which documents the procedures that will be used to manage risk throughout the project. Also covers who is responsible for managing various risk areas; how contingency plans will be implemented, and how reserves will be allocated.


  • Risk Quantification: Evaluating the probability of risk event occurrence and effect.


  • Risk Response Control: Responding to changes in risk over the course of the project.


  • Risk Response Development: Defining enhancement steps for opportunities and mitigation steps for threats.


  • Threats: As related to risk, negative outcomes of risk.


  • Total Certainty: All information is known.


  • Total Uncertainty: No information is available and nothing is known. By definition, total uncertainty cannot be envisaged.

  • Uncertainty: The possibility that events may occur which will impact the project either favorably or unfavorably. Uncertainty gives rise to both opportunity and risk.


  • Workaround: A response to a negative risk event. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event.


  • Avoidance: Changing the project plan to eliminate the risk and protect the project objectives.


  • Transference : Shift the consequence of the risk and ownership to a third party. (E.g. insurance)


  • Mitigation : To reduce the probability/impact of a risk to an acceptable threshold. (E.g. prototype).


  • Exploit: This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen. Directly exploiting responses include assigning more talented resources to the project to reduce
    the time to completion


  • Share: Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Examples of sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures.


  • Enhance: This strategy modifies the .size. of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks.