PMP Preparation Worksheets

Preparation Worksheet #1

Project Integration Management – Processes & activities  required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations.

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

4.1 Develop Project Charter which formally authorizes a project

¨  Contract

¨  SOW (includes business need, scope description, strategic plan)

¨  EEF

¨  OPA (templates, procedures)

¨  Project selection methods

¨  Project mgmt methodology

¨  PMIS

¨  Expert judgment

¨  Project Charter

Initiating

Sponsor initiates the charter; charter includes 1) requirements to satisfy needs (“what”) 2) business needs that the project addresses (“why”) 3) justification 4) named project manager 5) milestones 6) assumptions 7) constraints (“fixed dates”) 8) business case 9) summary budget

4.2 Develop Preliminary Project Scope Statement which provides a high level scope description

¨  Project charter

¨  SOW

¨  EEF

¨  OPA

¨  Project mgmt methodology

¨  PMIS

¨  Expert judgment

¨  Preliminary project scope statement

Initiating

Scope includes 1) objectives 2) product requirements 3) acceptance criteria 4) project deliverables 5) constraints & assumptions 6) project organization 7) initial risks 8) milestones 9) initial WBS 10) high level cost estimate 11) project configuration mgmt requirements 12) approval requirements

4.3 Develop Project Management Plan that documents what is needed to define, prepare, integrate & coordinate all subsidiary plans

¨  Preliminary project scope statement

¨  Project management processes

¨  EEF

¨  OPA

¨  Project mgmt methodology

¨  PMIS includes config mgmt system to identify changes to product and control changes

¨  Expert judgment

¨  Project management plan

Planning

Plan includes 1) processes selected 2) level of implementation 3) tools to be used 4) interactions 5) how to execute work 6) how to control changes 7) how to do configuration mgmt 8) baselines use 9) communication needs 10) project phases 11) key mgmt issues

4.4 Direct & Manage Project Execution by executing the work defined in the project management plan to meet requirements defined in the scope statement

¨  Project management plan

¨  Approved corrective actions

¨  Approved preventive actions

¨  Approved change requests

¨  Approved defect repair

¨  Validated defect report

¨  Administrative closure procedure

¨  Project mgmt methodology

¨  PMIS

¨  Deliverables

¨  Requested changes

¨  Implemented change requests

¨  Implemented corrective actions

¨  Implemented preventative actions

¨  Implemented defect repair

¨  Work performance information (status, budget, % complete)

Executing

Actions include 1) perform activities 2) spend money 3) train staff 4) manage vendors 5) implement standards 6) create, control & validate deliverables 7) manage risk & risk response activities 8) adapt scope changes as needed 9) manage communications 10) collect project data including cost & milestones 11) collect & document lessons learned and process improvement actions

4.5 Monitor & Control Project Work through the processes required to initiate, plan, execute & close a project to meet performance objectives defined in the project management plan

¨  Project management plan

¨  Work performance information

¨  Rejected change requests

¨  Project mgmt methodology

¨  PMIS

¨  Earned Value technique

¨  Expert judgment

¨  Recommended corrective actions

¨  Recommended preventative actions

¨  Forecasts

¨  Recommended defect repair

¨  Requested changes

Monitor & Control

Actions include 1) compare actual vs. plan 2) determine corrective actions needed 3) analyze risks & ensure corrective actions taken 4) maintain information base 5) status reporting 6) forecasting

4.6 Integrated Change Control by reviewing all change requests, approving changes & controlling changes to the deliverables & organizational process documents

¨  Project management plan

¨  Requested changes

¨  Work performance information

¨  Recommended preventative actions

¨  Recommended corrective actions

¨  Recommended defect repair

¨  Deliverables

¨  Project mgmt methodology

¨  PMIS

¨  Expert judgment

¨  Approved change requests

¨  Rejected change requests

¨  Project management plan (updates)

¨  Project scope management (updates)

¨  Approved corrective actions

¨  Approved preventative actions

¨  Approved defect repair

¨  Validated defect repair

¨  Deliverables

Monitor & Control

Change control is needed because projects seldom run according to plan.  Changes must be managed; also includes documenting changes and only releasing approved changes.  Defect repair must be validated and quality controlled.

 

Configuration management also occurs – identify changes, determine if changes have been implemented, and verify changes after complete.

 

Every documented change must either be accepted or rejected by some authority.

4.7 Close Project by finalizing all activities across all of the project process groups to formally close the project

¨  Project management plan

¨  Contract documentation

¨  EEF

¨  OPA

¨  Work performance information

¨  Deliverables

¨  Project mgmt methodology

¨  PMIS

¨  Expert judgment

¨  Administrative closure procedure

¨  Contract closure procedure

¨  Final product, service or result

¨  OPA (updates)

Closing

Updates after project completion include 1) formal acceptance documentation (written) 2) project files updated 3) project closure documents prepared (even for projects halted before completion) 4) historical information is used to update the “lessons learned” database

  

Preparation Worksheet #2

Project Scope Management – Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully; focus on what is and what is not included in the project

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

5.1 Scope Planning by creating a project scope management plan which includes how the WBS will be created & defined

¨  EEF

¨  OPA

¨  Project charter

¨  Preliminary project scope statement

¨  Project management plan

¨  Expert judgment

¨  Templates, forms, standards

 

¨  Project scope management plan

Planning

Project scope management plan includes 1) process to prepare detailed scope based on preliminary scope 2) process to create WBS from scope 3) process to specify verification of deliverables 4) process to control scope changes

5.2 Scope Definition by developing a detailed project scope statement

¨  OPA

¨  Project charter

¨  Preliminary project scope statement

¨  Project scope management plan

¨  Approved change requests

¨  Product analysis

¨  Alternatives identification

¨  Expert judgment

¨  Stakeholder analysis

¨  Project scope statement

¨  Requested changes

¨  Project scope management plan (updates)

Planning

Preparation of a detailed scope statement is critical to the project success.  Includes 1) objectives 2) scope description 3) requirements 4) boundaries (excluded items) 5) deliverables 6) acceptance criteria 7) constraints 8) assumptions 9) organization 10) risks 11) milestones 12) funding 13) cost estimate 14) configuration management requirements 15) project specifications 16) approval requirements

5.3 Create Work Breakdown Structure (WBS) by subdividing the deliverables & work into smaller, more manageable components

¨  OPA

¨  Project scope statement

¨  Project scope management plan

¨  Approved change requests

¨  WBS templates

¨  Decomposition

¨  Project scope statement (updates)

¨  WBS

¨  WBS dictionary

¨  Scope baseline

¨  Project scope management plan (updates)

¨  Requested changes

Planning

Decomposition divides work into smaller elements by 1) identify deliverables 2) structure and organize WBS 3) decomposing upper WBS into lower level detailed components 4) assign ID codes to WBS components 5) verifying that degree of decomposition is sufficient.

 

Each component must be assigned, and defined in terms of how the project will actually be executed and controlled.

5.4 Scope Verification through formal acceptance of the completed project deliverables

¨  Project scope statement

¨  WBS dictionary

¨  Project scope management plan

¨  Deliverables

¨  Inspection

¨  Accepted deliverables

¨  Requested changes

¨  Recommended corrective actions

Monitor & Control

Scope verification is primarily concerned with acceptance of the scope by stakeholders

5.5 Scope Control by controlling changes to the

project scope

¨  Project scope statement

¨  WBS

¨  WBS dictionary

¨  Project scope management plan

¨  Performance reports

¨  Approved change requests

¨  Work performance information

¨  Change control system

¨  Variance analysis

¨  Replanning

¨  Configuration management system

¨  Project scope statement (updates)

¨  WBS (updates)

¨  WBS dictionary (updates)

¨  Scope baseline (updates)

¨  Requested changes

¨  Recommended corrective action

¨  OPA (updates)

¨  Project Management Plan (updates)

Monitor & Control

Uncontrolled changes called “scope creep”.  Change is inevitable, thus this process is needed

 

 Preparation Worksheet #3

Project Time Management - Processes required to ensure timely completion of the project

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

6.1 Activity Definition by identifying the specific activities that must be performed to produce the various project deliverables

¨  EEF

¨  OPA

¨  Project scope statement

¨  WBS

¨  WBS dictionary

¨  Project management plan

¨  Decomposition

¨  Templates

¨  Rolling Wave planning

¨  Expert judgment

¨  Planning component (control account, planning package)

¨  Activity list

¨  Activity attributes

¨  Milestone list

¨  Requested changes

Planning

The activity list does not include any schedule activities that are not required as part of the project scope.  

6.2 Activity Sequencing by identifying and documenting dependencies among schedule activities

¨  Project scope statement

¨  Activity list

¨  Activity attributes

¨  Milestone list

¨  Approved change requests

 

¨  Precedence diagramming method (PDM)

¨  Arrow diagramming method (ADM)

¨  Schedule network templates

¨  Dependency determination

¨  Applying leads and lags

¨  Project schedule network diagrams

¨  Activity list (updates)

¨  Activity attributes (updates)

¨  Requested changes

Planning

PDM (a.k.a  Activity on Node) uses 4 types of dependencies (F-S, F-F, S-S, S-F). 

 

ADM (a.k.a.  Activity on Arrow) uses only F-S dependencies.  Allows dummy activities to show logical relationships.  (Usually shown as a dashed line.)

 

3 types of dependencies - mandatory, discretionary (best practices) and external.

6.3 Activity Resource Estimating through estimating the type & quantity of resources needed to complete each activity

¨  EEF

¨  OPA

¨  Activity list

¨  Activity attributes

¨  Resource availability

¨  Project management plan

¨  Expert judgment

¨  Alternatives analysis

¨  Published estimating data

¨  Project management software

¨  Bottom-up estimating

¨  Activity resource requirements

¨  Activity attributes (updates)

¨  Resource breakdown structure

¨  Resource calendars (updates)

¨  Requested changes

Planning

 

6.4 Activity Duration Estimating by estimating the number of work periods which will be needed to complete individual activities

¨  EEF

¨  OPA

¨  Project scope statement

¨  Activity list

¨  Activity attributes

¨  Activity resource requirements

¨  Resource calendars

¨  Project management plan (risk register, activity cost estimates)

¨  Expert judgment

¨  Analogous estimating (use actual duration of similar activity from past)

¨  Parametric estimating (hours per meter)

¨  Three-point estimates (average of most likely, optimistic & pessimistic)

¨  Reserve analysis

¨  Activity duration estimates

¨  Activity attributes (updates)

Planning

 

6.5 Schedule Development by analyzing activity sequences, activity durations, and resource requirements to create the project schedule

¨  OPA

¨  Project scope statement

¨  Activity list

¨  Activity attributes

¨  Project schedule network diagrams

¨  Activity resource requirements

¨  Resource calendars

¨  Activity duration estimates

¨  Project management plan (risk register)

¨  Schedule network analysis

¨  Critical path method

¨  Schedule compression

¨  What-if scenario analysis

¨  Resource leveling

¨  Critical chain method

¨  Project management software

¨  Applying calendars

¨  Adjusting leads and lags

¨  Schedule model

¨  Project schedule

¨  Schedule model data

¨  Schedule baseline

¨  Resource requirements (updates)

¨  Activity attributes (updates)

¨  Project calendar (updates)

¨  Requested changes

¨  Project management plan (updates, including schedule management plan)

Planning

Critical Path is the longest path through a network diagram and shows earliest completion of a project. 

 

CPM uses the most likely estimate to calculate the float to determine project duration and scheduling flexibility.

 

Critical chain modifies schedule to account for limited resources.  Define critical path, then apply resources – often path changes. 

 

Schedule can be showed as a network diagram, bar chart (gantt), or milestone chart.

6.6 Schedule Control – controlling changes to the project schedule including 1) determining current status of project schedule 2) influencing factors that cause changes 3) determining that the schedule has changed 4) managing changes as they occur

¨  Schedule management plan

¨  Schedule baseline

¨  Performance reports

¨  Approved change requests

¨  Progress reporting

¨  Schedule change control system

¨  Performance measurement

¨  Project management software

¨  Variance analysis

¨  Schedule comparison bar charts

¨  Schedule model data (updates)

¨  Schedule baseline (updates)

¨  Performance measurements

¨  Requested changes

¨  Recommended corrective actions

¨  OPA

¨  Activity list (updates)

¨  Activity attributes (updates)

¨  Project management plan (updates)

Monitor & Control

Key measures include Schedule Variance (SV) and Schedule Performance Index (SPI).

 

Progress reporting includes actual start and finished dates, and remaining durations for unfinished activities..

 

Schedule revisions are a special category of schedule updates – generally incorporated in response to approved change requests.  The original schedule baseline and model are saved to prevent loss of data.

 

Preparation Worksheet #4

Project Cost Management – processes in planning and controlling costs so that the project can be completed within budget

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

7.1 Cost Estimating through

approximating the costs of the resources needed to complete project activities

¨  EEF

¨  OPA

¨  Project scope statement

¨  WBS

¨  WBS dictionary

¨  Project management plan (schedule & staffing mgmt plan, risk register)

¨  Analogous estimating

¨  Determine resource cost rates

¨  Bottom-up estimating

¨  Parametric estimating

¨  Project management software

¨  Vendor bid analysis

¨  Reserve analysis

¨  Cost of quality

¨  Activity cost estimates

¨  Activity cost estimate supporting detail (description, basis of estimate, assumptions, constraints, ROM)

¨  Requested changes

¨  Cost management plan (updates)

Planning

Top down / analogous estimating is generally less costly and less accurate than other techniques.

Bottom-up estimating accuracy is driven by size of work items being estimated.  Reserve analysis includes “known unknowns”.

Project in initiation phase as rough order of Magnitude (ROM) of –50/+100%, later could go to –10%/+15%

7.2 Cost Budgeting by aggregating estimated costs of individual activities or work packages to establish a cost baseline

¨  Project scope statement

¨  WBS

¨  WBS dictionary

¨  Activity cost estimates

¨  Activity cost estimate supporting detail

¨  Project schedule

¨  Resource calendars

¨  Contract

¨  Cost management plan

¨  Cost aggregation

¨  Reserve analysis

¨  Parametric estimating

¨  Funding limit reconciliation

¨  Cost baseline

¨  Project funding requirements

¨  Cost management plan (updates)

¨  Requested changes

Planning

Cost baseline is a time-phased budget to measure and monitor cost performance.

 

Reserve are budgeted for unplanned, but potentially required, changes to project scope and cost – not part of the project cost baseline or earned value.

 

Project funding requirements are derived from the cost baseline.

7.3 Cost Control by influencing factors that create cost variances & controlling changes to the project budget

¨  Cost baseline

¨  Project funding requirements

¨  Performance reports

¨  Approved change requests

¨  Project management plan

¨  Cost change control system

¨  Performance measurement analysis

¨  Forecasting

¨  Project management reviews

¨  Project management software

¨  Variance management

¨  Cost estimate (updates)

¨  Cost baseline (updates)

¨  Performance measurements

¨  Forecasted completion

¨  Requested changes

¨  Recommended corrective actions

¨  Organizational process assets (updates)

¨  Project management plan (updates)

Monitor & Control

¨  PV - Planned Value (also Budget at Completion BAC)

¨  EV - Earned Value

¨  AC - Actual Cost

¨  ETC – Estimate to Complete

¨  EAC – Estimate at Completion

Formulas to remember:

¨  Schedule Variance = EV-PV 

¨  Cost Variance = EV-AC  

¨  Schedule Performance Index = EV/PV  

¨  Cost Performance Index = EV/AC  (<1.0 overrun, 1.0 on budget, > 1.0 underrun)

¨  SPI, CPI used to forecast completion date and project cost projection

 


Preparation Worksheet #5

Project Quality Management – processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

8.1 Quality Planning by

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

¨  EEF

¨  OPA

¨  Project scope statement

¨  Project management plan

¨  Cost-benefit analysis

¨  Benchmarking

¨  Design of experiments

¨  Cost of quality (COQ)

¨  Additional quality planning tools

¨  Quality management plan

¨  Quality metrics

¨  Quality checklists

¨  Process improvement plan (steps to analyze processes to identify waste & non-value added items

¨  Quality baseline

¨  Project management plan (updates)

Planning

Quality is “the degree to which a set of inherent characteristics fulfill requirements”

Customer Satisfaction: Conformance to requirements, specifications, and fitness for use.

Quality is planned in, not inspected in.

Cost of quality is total cost of all efforts related to quality.  Project may not reap benefits since they are later in product lifecycle (i.e. lower returns)

8.2 Perform Quality Assurance by employing activities to ensure the project employs all processes needed to meet requirements

¨  Quality management plan

¨  Quality metrics

¨  Process improvement plan

¨  Work performance information

¨  Approved change requests

¨  Quality control measurements

¨  Implemented change requests

¨  Implemented corrective actions

¨  Implemented defect repair

¨  Implemented preventative actions

¨  Quality planning tools and techniques

¨  Quality audits

¨  Process analysis

¨  Quality control tools and techniques

¨  Requested changes

¨  Recommended corrective actions

¨  Process analysis

¨  Quality control tools and techniques

Executing

Deming: Plan, Do, Check, Act

Kaizen (Continuous Improvement): Small improvements in products or processes to reduce costs and ensure consistency of products or services.

ISO 9000:  An international standard that describes a recommended quality system.  Does not include quality procedures or forms.

Heuristic is a rule of thumb (e.g. Rule of Seven)

8.3 Perform Quality Control by monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance

¨  Quality management plan

¨  Quality metrics

¨  Quality checklists

¨  OPA

¨  Work performance information

¨  Approved change requests

¨  Deliverables

¨  Cause and effect diagram

¨  Control charts

¨  Flowcharting

¨  Histogram

¨  Pareto chart

¨  Run chart

¨  Scatter diagram

¨  Statistical sampling

¨  Inspection

¨  Defect repair review

¨  Quality control measurements

¨  Validated defect repair

¨  Quality baseline (updates)

¨  Recommended corrective actions

¨  Recommended preventative actions

¨  Requested changes

¨  Recommended defect repair

¨  OPA

¨  Validated deliverables

¨  Project management plan (updates)

Monitor & Control

¨  +/- 1 sigma = 68.26%

¨  +/- 2 sigma = 95.46%

¨  +/- 3 sigma = 99.73%

¨  +/- 6 sigma = 99.99 %

Variable:  Characteristic to be measured (e.g. size, shape)

Attribute:  The measurement (e.g. inches, pounds)

Statistical Independence:  The probability of 1 event occurring does not affect the probability of another event occurring.

Preparation Worksheet #6

Project Human Resource Management – process the organize & manage the project team

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

9.1 Human Resources Planning by identifying, documenting project roles, responsibilities & reporting relationships as well as creating the staffing management plan

¨  EEF (organizational, technical, interpersonal, logistical & political)

¨  OPA (templates, checklists)

¨  Project management plan (activity resource requirements)

¨  Organization charts and position descriptions (hierarchical charts, matrix charts, text formats) – responsibility assignment matrix (RAM)

¨  Networking

¨  Organizational theory

¨  Roles and responsibilities (role, authority, responsibility, competencies required)

¨  Project organization charts

¨  Staffing management plan

Planning

Staff management plan includes 1) staff acquisition 2) timetable 3) release criteria 4) training needs 5) recognition & rewards 6) compliance 7) safety

9.2 Acquire Project Team by getting the human resources needed to complete the project

¨  EEF

¨  OPA

¨  Roles and responsibilities

¨  Project organization charts

¨  Staffing management plan

¨  Pre-assignment

¨  Negotiation

¨  Acquisition

¨  Virtual teams

 

¨  Project staff assignments

¨  Resource availability

¨  Staffing management plan (updates)

Executing

Conflict Resolution Techniques:

¨  Problem Solving (Address interests)

¨  Compromising (Middle ground)

¨  Forcing (Impose judgement)

¨  Withdrawal (Avoidance)

¨  Smoothing (Peace keeping)

PMI recommends Problem Solving as best choice followed by compromising.  Forcing is last.

9.3 Develop Project Team by improving competencies & interactions to enhance project performance

¨  Project staff assignments

¨  Staffing management plan

¨  Resource availability

¨  General management skills

¨  Training

¨  Team-building activities

¨  Ground rules

¨  Co-location

¨  Recognition and rewards

¨  Team performance assessment includes 1) improvements in skills for individuals 2) improvements in competencies for the group as a whole 3) reduce staff turnover rate

Executing

Maslow’s Hierarchy of Needs (in order):

¨  Physiological (Lowest)

¨  Safety

¨  Social

¨  Esteem

¨  Self-Actualization (Highest)

MacGregor’s Theory X – People must be constantly watched.  They are incapable, avoid responsibility, and avoid work.

MacGregor’s Theory Y – People are willing to work without supervision and want to achieve.

Ouchi's Theory Z - People work effectively when secure, consulted and held collectively responsible.

9.4 Manage Project Team by tracking member performance, providing feedback, resolving issues and coordinating changes to enhance project performance

¨  OPA

¨  Project staff assignments

¨  Roles and responsibilities

¨  Project organizational charts

¨  Staffing management plan

¨  Team performance assessment

¨  Work performance information

¨  Performance reports

¨  Observation and conversation

¨  Project performance appraisals

¨  Conflict management

¨  Issue log

¨  Requested changes

¨  Recommended corrective actions

¨  Recommended preventative actions

¨  OPA (updates)

¨  Project management plan (updates)

Monitor & Control

Lessons learned documentation can include 1) org charts as templates 2) rules or techniques that were particularly successful 3) virtual teams, location items that were successful 4) special skills discovered during the project

 

Preparation Worksheet #7

Project Communications Management – Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information; provide the critical links among people & information that are needed for successful communications

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

10.1 Communication Planning by determining the information and communications needs of the stakeholders

¨  EEF

¨  OPA

¨  Project scope statement

¨  Project management plan (constraints, assumptions)

¨  Communications requirements analysis

¨  Communications technology

¨  Communications management plan (provides 1) stakeholder requirements 2) info to be communicated 3) responsibility 4) methods & frequency 5) escalation 6) updating )

Planning

Communication Methods:

¨  Formal Written – Project Plans/Charters

¨  Formal Verbal – Presentations, Speeches

¨  Informal Written – Memos, e-mail

¨  Informal Verbal – Meetings, Conversations

Comm. Channels:  N(N-1)/2 where N is equal to the number of people.

¨   

10.2 Information Distribution through making needed information available to project stakeholders in a timely manner

¨  Communications management plan

¨  Communications skills

¨  Information gathering and retrieval systems

¨  Information distribution methods

¨  Lessons learned process

¨  OPA

¨  Requested changes

Executing

PM should spend 70 - 90% of their time communicating.

Basic elements of communication:

¨  Sender (or encoder)

¨  Message.

¨  Receiver (or decoder)

10.3 Performance Reporting by collecting and disseminating performance information including status reporting, progress measurement & forecasting

¨  Work performance information

¨  Performance measurements

¨  Forecasted completion

¨  Quality control measurements

¨  Project management plan (performance measurement baseline)

¨  Approved change requests

¨  Deliverables

¨  Information presentation tools

¨  Performance information gathering and compilation

¨  Status review meetings

¨  Time reporting systems

¨  Cost reporting systems

¨  Performance reports

¨  Forecasts

¨  Requested changes

¨  Recommended corrective actions

¨  OPA

Monitor & Control

Performance Reporting Tools:

¨  Status Report

¨  Progress Report

¨  Trend Report

¨  Forecasting Report

¨  Variance Report

¨  Earned Value**

10.4 Manage Stakeholders by managing communications to satisfy he requirements of, and resolve issues with, project stakeholders

¨  Communications management plan

¨  OPA

¨  Communications methods

¨  Issue logs

¨  Resolved issues

¨  Approved change requests

¨  Approved corrective actions

¨  OPA

¨  Project management plans (updates)

Monitor & Control

 

 

Preparation Worksheet #8

Project Risk Management – processes concerned with planning, identifying, analyzing and responding to project risk; objective is  to increase the probability & impact of positive events and to decrease the probability and impact of adverse events

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

11.1 Risk Management Planning by deciding how to approach, plan & execute the risk management activities for a project

¨  EEF

¨  OPA

¨  Project scope statement

¨  Project management plan

¨  Planning Meetings and analysis

¨  Risk Management Plan

Planning

Risk management plan includes methodology, roles, responsibilities, budget, timing, scoring / interpretation, thresholds, reporting, tracking, etc.

Risk Categories:

¨  Technical

¨  Project management

¨  Organizational

¨  External

11.2 Risk Identification by determining which risks might affect the project and documenting their characteristics

¨  EEF

¨  OPA

¨  Project scope statement

¨  Risk management plan

¨  Project management plan

¨  Documentation reviews

¨  Information gathering techniques

¨  Checklist analysis

¨  Assumptions analysis

¨  Diagramming techniques

¨  Risk register (includes list of risks, potential responses, root causes, and updated risk categories)

Planning

Risk Components:

¨  Risk event

¨  Risk event probability

¨  Risk event consequence

¨  Risk event status

11.3 Qualitative Risk Analysis by prioritizing risks for further analysis or action by assessing & combining their probability of occurrence & impact

¨  OPA

¨  Project scope statement

¨  Risk management plan

¨  Risk register

¨  Risk probability and impact assessment

¨  Probability and impact matrix

¨  Risk data quality assessment

¨  Risk categorization

¨  Risk urgency assessment

¨  Risk register (updates)

Planning

Use of low precision data may lead to faulty analysis.

Risks calculated as high or moderate would be prime candidates for further analysis.

11.4 Quantitative Risk Analysis through numerically analyzing the effect on overall project objectives of identified risks

¨  OPA

¨  Project scope statement

¨  Risk management plan

¨  Risk register

¨  Project management plan (schedule management plan, cost management plan)

¨  Data gathering and representation techniques

¨  Quantitative risk analysis and modeling techniques (sensitivity analysis, expected monetary value analysis, and decision tree analysis, modeling & simulation)

¨  Risk register (updates) including 1) probabilistic analysis of the project for schedule & cost outcomes 2) prioritized list of quantified risks 3) trends in quantitative risk results)

Planning

Quantitative analysis follows qualitative analysis. 

Objectives include:

¨  Determine probability of reaching project objectives

¨  Determine size of contingency needed

¨  Identify risks requiring most attention based on their priority

¨  Identify realistic cost and scope targets

11.5 Risk Response Planning by developing options & actions to enhance opportunities & reduce threats to project objectives

¨  Risk management plan

¨  Risk register

¨  Strategies for negative risk or threats (avoid, transfer or mitigate)

¨  Strategies for positive risks or opportunities (exploit, share or enhance)

¨  Strategy for both risks and opportunities (acceptance)

¨  Contingency response strategy

¨  Risk register (updates)

¨  Project management plan (updates)

¨  Risk-related contractual agreements

Planning

Contingency Plan is a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.

Fallback plan is a management plan that identifies alternative project approaches if the risk has high impact, or if the strategy might not be fully effective. 

Contingency Reserve accounts for known risks that have been accepted.

Secondary risks arise from implementing the contingency plan. 

11.6 Risk Monitoring and  Control by keeping track of identified risks, monitoring residual risks and identifying new risks, executing risk response plans and evaluating their effectiveness throughout the project life cycle

¨  Risk management plan

¨  Risk register

¨  Approved change requests

¨  Work performance information

¨  Performance reports

¨  Risk reassessment

¨  Risk audits

¨  Variance and trend analysis

¨  Technical performance measurement

¨  Reserve analysis

¨  Status meetings

¨  Risk register (updates)

¨  Requested changes

¨  Recommended corrective actions

¨  Recommended preventative actions

¨  OPA

¨  Project management plan (updates)

Monitor & Control

Purpose of Risk Monitoring is to determine if:

¨  Risk responses implemented as planned

¨  Risk response actions were as effective as planned

¨  Project assumptions are still valid

¨  Risk trigger has occurred

¨  Risk exposure has changed

 

 

Preparation Worksheet #9

Project Procurement Management – processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the project team by the contract

Area Process

Inputs

Tools and Techniques

Outputs / Deliverables

Process Group

Other Notes

12.1 Plan Purchases and Acquisitions by determining what to purchase or acquire and when to do it

¨  EEF

¨  OPA

¨  Project scope statement

¨  WBS

¨  WBS dictionary

¨  Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline)

¨  Make or buy analysis

¨  Expert judgment

¨  Contract types

¨  Procurement management plan

¨  Contract statement of work – needs to be clear, complete and concise

¨  Make or buy decisions

¨  Requested changes

Planning

Contract Type:

¨  FP – Fixed Price or Lump sum.  (Simplest form is PO) – risk on seller

¨  CR – Cost Reimbursable (cost plus fee, cost plus fixed fee or cost plus incentive fee) – place risk on buyer

¨  T&M – Time and Materials (aspects of FP and CR contracts)  - Moderate cost risk to buyer.)

 

12.2 Plan Contracting by

documenting products, services & results requirements and identifying potential sellers

¨  Procurement management plan

¨  Contract statement of work

¨  Make or buy decisions

¨  Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline)

¨  Standard forms

¨  Expert judgment

¨  Procurement documents

¨  Evaluation criteria (can include cost, technical capability, financial capacity, business type, references, etc…)

¨  Contract statement of work (updates)

Planning

Procurement management plan can include 1) type of contract 2) independent estimates 3) standardized procurement documents 4) constraints & assumptions 5) lead times for contracting coordination 6) make-or-buy documentation 7) scheduled dates in contracts 8) performance metrics for managing contracts

12.3 Request Seller Responses by obtaining information, quotations, bids offers or proposals

¨  OPA

¨  Procurement management plan

¨  Procurement documents

¨  Bidder conferences

¨  Advertising

¨  Develop qualified sellers list

¨  Qualified sellers list

¨  Procurement document package

¨  Proposals

Executing

All bidders conference Q&A should be put in writing and issued to all potential sellers as an addendum to the procurement docs.

12.4 Select Sellers by reviewing offers, choosing among potential sellers, and negotiating a written contract

¨  OPA

¨  Procurement management plan

¨  Evaluation criteria

¨  Procurement document package

¨  Proposals

¨  Qualified sellers list

¨  Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline)

¨  Weighting system

¨  Independent estimates

¨  Screening system

¨  Contract negotiation

¨  Seller rating systems

¨  Expert judgment

¨  Proposal evaluation techniques

¨  Selected sellers

¨  Contract

¨  Contract management plan

¨  Resource availability

¨  Procurement management plan (updates)

¨  Requested changes

Executing

Objectives of Negotiation:

¨  Obtain a fair and reasonable price

¨  Develop a good relationship with the seller (should be a win-win situation)

Items to negotiate include: Responsibilities, authority, applicable law, technical and business mgmt approaches, contract financing, and price.

12.5 Contract Administration by managing contract & relationship between the buyer & seller; documenting performance to establish corrective actions, and manage contract change

¨  Contract

¨  Contract management plan

¨  Selected sellers

¨  Performance reports

¨  Approved change requests

¨  Work performance information

¨  Contract change control system

¨  Buyer-conducted performance review

¨  Inspections and audits

¨  Performance reporting

¨  Payment system

¨  Claims administration

¨  Records management system

¨  Information technology

¨  Contract documentation

¨  Requested changes

¨  Recommended corrective actions

¨  OPA

¨  Project management plan (updates)

Monitor & Control

Contracts are often managed by a contract department who have authority and responsibility for contracts.  The PM must work closely with this group to ensure that project objectives are met.

12.6 Contract Closure through completing and settling each contract, including resolution of any open items

¨  Procurement management plan

¨  Contract management plan

¨  Contract documentation

¨  Contract closure procedure

¨  Procurement audits

¨  Records management system

¨  Closed contracts

¨  OPA (update contract file, deliverable acceptance, and lessons learned documentation)

Closing

Centralized Contracting – A separate contracting office handles contracts for all projects.

Decentralized Contracting – A contract administrator is assigned to each project.

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