PROJECT QUALITY MANAGEMENT OVERVIEW Market expectation and global competition on quality Factors influence in quality improvements :

– Salability - Produceability – Social acceptability - Operability– Availability - Reliability– Maintainability

PQM DEFINITIONQuality : The totality of feature and characteristics of a product or service that bears on its ability to satisfy implied or stated needs (ISO 9000)CHANGING VIEWS OF QUALITY

Quality− The degree to which a set of inherent characteristics fulfill requirements− Stated and implied needs are the inputs to developing project requirements− Turn stakeholder needs, wants, and expectations into requirements (stakeholder

analysis – project scope management) Grade− A category assigned to products or services having the same functional use by

different technical Characteristics (low quality is always a problem, low grade may not be)

UNDERSTANDING QUALITYQuality can be a confusing concept, partly because people view quality in relation to differing criteria based on their individual roles in the value chain, such as:– perfection, - delighting or pleasing the customer,– eliminating waste, - doing it right the first time, and/or– consistencyPRINCIPLES OF TOTAL QUALITY– A focus on customers and stakeholders,– A process focus supported by continuous improvement and learning, and– Participation and teamwork by everyone in the organization.PROJECT QUALITY MANAGEMENT Strategic Quality Management– Quality is defined by the customer– Quality is linked with profitability– Quality : competitive weapons– Quality is an integral part of strategic planning– Quality requires an organization-wide commitment

Modern quality management :– Customer satisfaction (understanding, defining, and managing expectation)

Understanding, evaluating, defining, and managing expectations so that customer’s requirements are met :– Conformance to requirements - Fitness for use

– Prevention over inspection (planned, designed and built in)– The cost of preventing mistakes is generally much less than the cost of

correcting them, as revealed by inspection/assessment– Build quality in vs. Inspect quality in

– Continuous improvements : Plan – do – check – act (Deming cycle for improvements)Quality improvement initiatives can improve the quality of project management as well as the quality of the product

– Management responsibilitySuccess requires the participation of all members of the team, but management is responsible to provide the resources to succeed

PROJECT QUALITY MANAGEMENT (PMBOK)includes the processes and activities of the performing organization that determine quality policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken.Introduction Project quality management includes the process required to ensure that the

project satisfies the needs for which it is undertaken. PQM includes all the activities of the overall management function that determine

the quality policy, objectives, and responsibilities and implement them within the quality system.

PQM OVERVIEW8.1 QUALITY PLANNING is identifying which quality standards are relevant to the

project and determining how to satisfy them8.2 QUALITY ASSURANCE is evaluating the overall project performance on a regular

basis to provide a confidence that the project will satisfy the relevant quality standards

8.3 QUALITY CONTROL is the monitoring of specific project results to determine if they comply with the relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance

8.1 QUALITY PLANNING Quality Planning involves identifying with quality standards It is a key facilitating process during the Project planning Process In modern quality management quality is planned in and not inspected in Prior to the development of ISO 9000 series, quality planning concepts were

widely discussed as part of quality assurance.8.1.1 Quality Planning InputsScope Statement is a key input to quality planning because it documents major project deliverables as well as project objectives which serve to define important stakeholder requirementsProduct description, Although the elements of the product description may be embodied in the scope statement, the product description often contains details of technical issues and other concerns that may affect quality planningStandards and Regulations, The project management team any application-area-specific standards or regulations that may affect the projectOther Process Outputs, In addition to the scope statement and product description, processes in other knowledge areas may produce outputs that should be considered as part of the quality planningExample: procurement planning outputs may identify contractor quality requirements that should be reflected in the overall Quality Management Plan8.1.2 Tools and Techniques for Quality PlanningBenefit / cost analysis The planning process must consider benefit/cost tradeoffs The Primary Benefit: Is less work, higher productivity, lower costs, and increased

stakeholder satisfaction The Primary Cost: Is the expanses associated with PQM activitiesNote: it is elementary that the benefit should outweigh the cost8.1.2 Tools and Techniques for Quality Planning

BenchmarkingBenchmarking involves comparing actual or planned project practices to those of other projects to generate ideas to: 1- Generate ideas for improvement 2- provide a standard for measurement of performanceNote: other projects compared may be within the same organization or out side and may be within the same application area or in anotherFlow charting The flowcharting techniques in quality management generally include

- cause and effect diagram - System or process flow charts Flowcharting can help in anticipating probable quality problems and thus

helps to develop approaches for dealing with themDesign of Experiments This is an analytical technique which aims to define variables that have

most influence on the overall outcome This technique is commonly applicable to the product of the project issues. However this technique can also be used in project management issues

such as cost and schedule tradeoffs to allow for optima solutions.8.1.3 Outputs from Quality PlanningQuality Management Plan The quality management plan should describe how a project management

team will implement its quality policy Also called Quality System, (in ISO terminology), the plan should define :- The organizational structure- Roles and responsibilities- Resources needed for implementation of quality management

The Quality Plan should address:- Quality Control of the project - Quality Assurance - Quality Improvement of the project

Note: the project quality plan can be highly detailed or broadly framed based on the needs of the projectOperational Definitions An operational definition describes what something is and how it is measured by

the quality control process. For example:- the project management team must indicate the start and end of every

activity in a detailed schedule - Weather the whole activity or certain deliverables are to be measured

Operational definitions are also called Metrics in some areas of applicationChecklists A checklist is a structured tool used to verify that a set of required steps or

requirements have been performed. Many organizations have standard checklists to ensure consistency of frequently

performed activitiesInputs To Other ProcessesThe quality planning process may identify need for further activity in another area8.2 QUALITY ASSURANCE Quality assurance encompasses all the planned and systematic activity

implemented in a quality system to provide confidence that the project will satisfy the relevant quality standards

Quality assurance is provided by a Quality Assurance dept. Quality assurance can be INERNAL ( from the project management team to the

performing organization) Quality assurance can be EXTERNAL (provided to the customer and other parties

actively involved in the work of the project8.2.1 Inputs To Quality Assurance Quality management plan as previously described Results of quality control measurements which are records of quality

control testing and measurement in a format of comparison or analysis Operational definitions as previously described in the output of the Quality

Planning8.2.2 Tools and Techniques For Quality Assurance Quality Planning tools and techniques , which can be used for quality

assurance as well Quality Audits which are a structured review of other quality management

activities:- they may be timely or carried out randomly - They may be carried out by properly trained Internal-auditors or by third

parties such as quality systems registration agencies 8.2.3 Outputs From Quality Assurance Quality improvement includes taking action to increase the effectiveness and

efficiency of the project to be provide added benefits to the stakeholders of that project

In many cases the implementation of quality improvements will require preparation of change requests or taking corrective actions and will be handled according to procedure for overall change control

8.3 QUALITY CONTROL Quality control involves monitoring specific project results to determine if they

comply with relevant standards and identifying ways to eliminate causes of unsatisfactory results.

Project results mentioned include both PRODUCT results such as deliverables and MANAGEMENT results such as cost and schedule performance

Quality control is often performed by a quality control department

The project management team should have a working knowledge of statistical quality control especially sampling and probability to help evaluate and control outputs.

The project management should be aware of the following among other subjects: - prevention ( keeping errors out of the process)- Inspection (keeping errors out of the customers hand- Attribute sampling (for conformity of results)- Variable sampling (where the results are rated on a continuous scale that

measures the degree of conformity or non conformity- Special cause ( unusual events)- Random causes ( normal process variations)- Tolerances ( where results should fall with in a defined tolerance range- Control limits ( the process is in control if it falls within these defined limits

8.3.1 Inputs To Quality Control Work results : including both product results and process results The quality management plan Operational definitions Checklists8.3.2 Tools And Techniques Quality Control Tools :o Identification :- Data figures - Pareto Analysis- Cause-and-effect diagram - Trend analysis

o Analysis :- Histogram - Scatter diagram - Process control chart

Inspection Inspection includes activities such as measuring, examining and testing undertaken

to determine whether results conform to requirements Inspection can be carried out on the level of a single activity or a final product Inspections can be called reviews, product reviews, audits, and walk-throughs Control Charts These charts are graphical representations that display the result of a process over

time and are used to determine if the process is “in control” When in control the process should not be adjusted , however it may be changed

in order to provide improvements Control charts may be used ot monitor any type of output variable Control charts are most often used to monitor repetitive activity in production but

can also be used to monitor cost and schedule variancesPareto Diagram A Pareto diagram is a histogram ordered by frequency of occurrence which

shows how many results were generated by what category or identified cause The project management team should take action to fix the problems that are

causing the greatest number of defects first Typically the Pareto diagram reflects that a relatively small number of causes

are responsible for the majority of the problems or defects.Statistical Sampling Statistical sampling involves choosing a part of a population of interest for

inspection Appropriate sampling can effectively reduce the cost of quality control There is a vast body of knowledge related to statistical sampling and therefore the

management must be aware of the various sampling techniquesFlowchartingFlowcharting is used in quality control to help analyze how a problem occursTrend AnalysisThe trend analysis involves the use of mathematical techniques to forecast future outcomes based on historical results it is often used to monitor:- Technical performance – how many defects have been identified and how many remain uncorrected- Cost and schedule performance – how many activities in a certain period were completed with significant variances8.3.3 Outputs for Quality Control Quality improvement ( previously described) Acceptance decisions, where the inspected items will either be accepted or

rejected and those rejected may be reworked Rework, which is an action taken to bring defects or nonconforming items into

compliance with requirements and specifications. Rework is a frequent cause of project over-runs and the project management team must make an effort to minimize it

Completed Checklists, which become a part of a project record when they are used

Process Adjustments, which involves immediate corrective or preventive action as a result of quality control measurements. In some cases the adjustment may need to be handled according to procedures for overall change control

CONCLUSION In conclusion we find that in order to achieve PQM or Project Quality Management

, one has to integrate the concepts of Project management with the processes of quality management at the project scale and throughout its different phases.

for effective PQM it is essential that the project management team be aware of the concepts of quality management to be able to make use of the described processes and implement them to achieve the required end product

PROJECT HUMAN RESOURCE MGT

• Project Human Resource Management includes the processes that organize and manage the project team.

• The project management team is a subset of the project team and is responsible for project management activities such as planning, controlling, and closing.

Making the most effective use of the people involved with a project. Processes include :9.1 Developing human resource planning: Identifying and documenting project roles, responsibilities, and reporting relationships.9.2 Acquiring project team: Getting the needed personnel assigned to and working on the project.9.3 Developing project team: Building individual and group skills to enhance project performance.9.4 Managing project team: Tracking team member performance, motivating team members, providing timely feedback, resolving issues and conflicts, and coordinating changes to help enhance project performance.1. Developing Organizational Planning Involves identifying and documenting project roles, responsibilities, and

reporting relationships. Outputs include:- Project organizational charts- Staffing management plans- Responsibility assignment matrixes- Resource histograms

Organization Structure- Project management structures are used to implement project- Types of P.M. Structures :

Functional organization structure Dedicated project team Matrix structure

Functional Organization structure

Advantages :No change, Flexibility, Expertise, Easy post-project transition Disadvantages :Lack of focus, Poor integration, Slow, Lack of

ownershipHierarchical-type chart Advantages :Simple, Fast, Cohesive, Cross-functional

integration Disadvantages :Expensive, Internal strive, Limited

technological expertise, Difficult post-project transitionMatrix forms : 1.Weak matrix, 2.Balanced matrix, 3.Strong matrix Advantages :Efficient, Strong focus, Flexible, Easier post-project transition Disadvantages :Dysfunctional conflict, Infighting, Stressful, SlowHow to choose the best suited structure ?Organization consideration How important is project management to the success of the

firm ? Resource availabilityProject consideration Size of project, Strategic importance, Novelty and need for improvement, Need for

integration, Environmental complexity, Budget and time constrain, Stability of resource requirement

Organization Culture It refers to a system of shared norms, beliefs, values, and assumptions

which binds people together, thereby creating shared meanings. It manifests the personality of the organization and the members as well.

It is reflected by customs and habits There is a strong connection between project management structure,

organization culture and project success.Primary characteristics of organization culture : Member identity, Team emphasis, Management focus, Unit integration,

Control, Risk tolerance, Reward criteria, Conflict tolerance, Means vs end orientation, Open system focus

Responsibility Assignment Matrixes- A responsibility assignment matrix (RAM) is a matrix that maps the work of the

project, as described in the WBS, to the people responsible for performing the work, as described in the OBS.

- Can be created in different ways to meet unique project needsStaffing Management Plans and Resource Histograms- A staffing management plan describes when and how people will be added to and

taken off the project team.- A resource histogram is a column chart that shows the number of resources

assigned to a project over time.2. Acquiring Project Team Acquiring qualified people for teams is crucial. The project manager who is the smartest person on the team has

sometimes done a poor job of recruiting! Staffing plans and good hiring procedures are important, as are incentives

for recruiting and retention.- Some companies give their employees one dollar for every

hour that a new person who they helped hire works.- Some organizations allow people to work from home as an

incentive.Resource Loading Resource loading refers to the amount of individual resources an existing

schedule requires during specific time periods. Helps project managers develop a general understanding of the demands

a project will make on the organization’s resources and individual people’s schedules.

Overallocation means more resources than are available are assigned to perform work at a given time.

Resource Leveling Resource leveling is a technique for resolving resource conflicts by

delaying tasks. The main purpose of resource leveling is to create a smoother distribution

of resource use and reduce overallocation.Benefits of Resource Leveling : When resources are used on a more constant basis, they require less

management. It may enable project managers to use a just-in-time inventory type of

policy for using subcontractors or other expensive resources. It results in fewer problems for project personnel and the accounting

department (less paper work). It often improves morale.Tools & Techniques• Pre-assignment• Negotiation : Functional manager/other project manager • Acquisition: outsourcing• Virtual teams: teleconference 3. Developing Project Team Training can help people understand themselves and each other, and

understand how to work better in teams. Team building activities include: Physical challenges, &

Psychological preference indicator tools

Team-building activities, theory states that there are 5 stage of development that teams may go through; Forming, Storming, Norming, Performing, Adjourning.Reward and Recognition Systems Team-based reward and recognition systems can promote teamwork. Focus on rewarding teams for achieving specific goals. Allow time for team members to mentor and help each other to meet

project goals and develop human resources.4. Managing the Project Team Project managers must lead their teams in performing various project

activities. After assessing team performance and related information, the project

manager must decide:- If changes should be requested for the project.- If corrective or preventive actions should be recommended.- If updates are needed to the project management plan or organizational

process assets.The human plan includes, but is not limited to : roles and responsibilities, project organization, the staffing management plan.Organiozational process assets that can influence the Manage Project Team process include, but are not limited to : certificates of appreciation, newsletters, websites, bonus structures, corporate apparel, other organizational perquisites.When handling conflict in a team environment, project managers should recognize the following characteristics of conflict and the conflict management process:- Conflict is natural and forces a search for alternatives- Conflict is a team issue- Openness resolves conflict- Conflict resolution should focus on issues, not personalities, and- Conflict resolution shoul focus on the present, not the past.Factors that influence conflict resolution methods include :- Relative importance and intensity of the conflict- Time pressure for resolving the conflict- Position taken by players involved- Motivation to resolve conflict on a long-term or a short-term basisThere are 6 general techniques for resolving conflict :- Withdrawing/avoiding. Retreating from an actual or potential conflict situation- Smooting/accommodating. Emphasizing areas of agreement rather than areas of

difference- Compromising. Searching for solutions that bring some degree of satisfaction to all

parties- Forcing. Pushing one’s viewpoint at the expense of others; offers only win-lose

solutions- Collaborating. Incorporating multiple viewpoints and insight from differing

perspectives; leads to consensus and commitment- Confronting/problem solving. Treating conflict as a problem to be solved by

examining alternative; require a give-and-take attitude and open dialogue.Interpersonal skill Leadership. Succesful project require strong leadership skills. Leadership is

important through all phases of the project life cycle. It is especially important to communicate the vision and inspire the project team to achieve high performance.

Influencing. Since project managers often have little or no direct authority over their team members in a matrix environment, their ability to influence stakeholders on a timely basis is critical to project success. Key influencing skills include: ability to be persuasive and clearly articulate points and positions, high levels of active and effective listening skills, consideration of the varios perspective in any situation, and gathering relevant and critical information to address important issues and reach agreements while maintaining mutual trust.

Effective decision making. Some guidelines for decision making include :Focus on goals to be served, follow a decision-making process, study the environmental factors, develop personel qualities of the team members, stimulate team creativity, and manage opportunity and risk.

Project Resource Management Involves Much More Than Using Software Project managers must: Treat people with consideration and

respect, Understand what motivates people, Communicate carefully with people. Focus on your goal of enabling project team members to deliver their best

workLeadership Project success does not just depend on the performance of the

(individual) project team. It often depends on the contributions of all participants. An effective project manager (PM) builds cooperative relationships among

different group of people to complete projects successfully. PM is responsible for integrating and inspiring assigned resources to

complete the projects as planned PM plays a pivot role in a balanced management and leadership aspect. Supportive social network is essential in determining success. Managing upward and downward relation as means of getting support

from all participantsGeneral Advice on Teams- Be patient and understanding with your team.- Fix the problem instead of blaming people. - Establish regular, effective meetings.- Allow time for teams to go through the basic team-building stages. - Limit the size of work teams to three to seven members

Plan some social activities to help project team members and other stakeholders get to know each other better.

identify stressed-team. Nurture team members and encourage them to help each other. Take additional actions to work with virtual team members.Organizational process assets that may require updates as result of the manage project team process include, but are not limited to: historical information and lessons learned documentation, templates, organizational standart processes.

PROJECT COMMUNICATIONS MANAGEMENT

Effective project communication To get the right information, to the right person, at the right time, in a cost-effective manner

Effective communication include: An exchange of information, An act of transmitting information, A verbal or written message, A technique for expressing ideas.

DefinitionProject Communication Management is the Knowledge area that includes the process required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project informationThese processes include:10.1 Identify stakeholders – the process of identifying all people or organizations impacted by the project, and documenting relevant information regading their interests, involvement, and impact on project success.10.2 Communications Planning – determining the information needs of the project stakeholders10.3 Information Distribution – making needed information available to the project stakeholders in a timely manner.10.5 Performance Reporting – collecting and reporting on project performance through status reports, progress measurement and forecasting.10.4 Manage Stakeholders – managing communications to satisfy the requirements of, and resolve issues with, project stakeholdersCommunication activity has many potential dimensions, including:Internal & external, formal & informal, vertical & horizontal, official & unofficial, written & oral, verbal & non-verbalMost communication skills are common for general management & project management, such as, but not limited to: Listening actively & effectively Questioning, probing ideas & situations to ensure better understanding, Educating to increase team’s knowledge so that they can be more effective Fact-finding to identify or confirm information Setting & managing expectations Persuading a person or organization to perform an action Negotiating to achieve mutually acceptable agreements between parties Resolving conflict to prevent disputive impact Summarizing, recapping, & identifying the next steps10.1 Identify stakeholdersThe organizational process assets that can influence the identify stakeholders process include: stakeholder register templates, lessons learned from previos project, & stakeholder registers from previous project.10.1.2 Tool & techniques Stakeholder analysis , generally follows the step described below:

o Step 1, identify all otential project stakeholder and relevant information, suach as : their roles, departments, interests, knowledge levels, expectations, & influence levels.

o Step 2, identify the potential impact or support each stakeholder could generate, & classify them so as to define an approach strategy.

o Step 3, assess how key stakeholders are likely to react or respond in varios situations, in order to plan how to influence them to enhance their support & mitigate potential negative impacts.

Expert judgment, to ensure comprehensive identification & listing of stakeholders, judgment & expertise should be sought from grups or individuals with specialized training or knowledge on the subject area such as: senior management, other units within the organization, identified key stakeholders, project managers who have worked on projects in the same area, subject metter experts (SMEs) in business or project area, industry groups & consultants, professional & technical associations

10.1.3 outputs Stakeholder register. This contains all detail related to the identified stakeholders

including; identification information, assessment information (major requirement, main expectations, potential influence in the project, phase in the life cycle with the most interest), stakeholder classification (internal / external, supporter / neutral / resistor).

Stakeholder management stategy, defines an approach to increase the support & minimize negative impacts of stakeholders throughout the entire project life cycle. It include elements such as; key stekholder who can significantly impact the project, level of participation in the project desired for each identified stakeholder, stakeholder groups & their management.

10.2 Communications Planning Communications planning determines the information and

communications needs of the stakeholders. This includes identifying who needs what information, when they should receive it, and how it will be provided. Identifying the information needs of the stakeholders and determining a suitable means of meeting those needs is an important factor for project success.

10.2.2 Tool & techniquesCommunication requirement analysis, information typically used to determine project communicatin requirements includes: organization charts; project organization & stakeholder responsibility relationships; disciplines, department, & specialties involved in the project; logistics of how many persons will be involved with the project & at which locations; internal information needs; external information needs; stakeholder information from the stakeholder register & the stakeholder management strategy.Communication Technology, factors that can affect the project include;• The urgency of the need for information

Is project success depend on real time info?• The availability of technology• The expected project staffing

Compatible with experience & expertise• The length/duration of the project

Is the technology likely to change before the project over?• The project environment

Do the team members need face to face or virtual environment?Communication Models. The key components of the model include;Encode, message & feedback-message, medium, noise, decodeCommunicationmethods, these methods can be broadly classified into;Interactive comm., push comm., pull comm.The project managers decides, based on communication requirements, what, how, & when comm.. methods are to be used in the project.10.2.3 Outputs The communication management plan provides:- Stakeholder communication requirements- Information to be communicated, including format, content, and level of detail- Person responsible for communicating the information- Person or groups who will receive the information- Person or groups who are responsible for making decisions- Methods used to convey the information, such as memoranda and email- Frequency of the communication, such as weekly- Escalation process for resolving project issues that cannot be resolved at the

staff level Project document updates; project schedule, stakeholder register, &

stakeholder management strategy10.3 Information DistributionInformation distribution involves making information available to project stakeholders in a timely manner. Information distribution includes implementing the Communications Management Plan, as well as responding to unexpected requests for information.Effective information distribution includes a number of techniques including;Sender-reveiver models, choice of media, writing style, meeting management techniques, presentation techniques, facilitation techniques.10.3.2 Tools & techniquesCommunication methods, individual & group meetings, video & audio conferences, computer charts, & other.Information distribution tools. Project information can be distributed using a variety of methods, including:

Project meetings, hard-copy document distribution, manual filing systems, and shared-access electronic databases

Electronic communication and conference tools, such as e-mail, fax, voice mail, telephone, video and Web conferencing, and Web publishing

Electronic tools for project management, such as Web interfaces to scheduling and project management software, meeting and virtual office support software, portals, and collaborative work management tools

10.3.3 OutputsOrganizational process assets updatesStakeholder notifications, project report, project presentations, project records, feedback from stakeholder, lessons learned documentation10.4 Manage StakeholdersStakeholder management refers to managing communications to satisfy the needs of, and resolve issues with, project stakeholders. Actively managing stakeholders increases the likelihood that the project will not veer off track due to unresolved stakeholder issues, enhances the ability of persons to operate synergistically, and limits disruptions during the project. 10.4.2 Tools & techniquesCommunication methods, identified for each stakeholeder in the comm.. management plan are utilized during stakeholder management.Interpersonal skill, building trust, resolving conflict, active listening, overcoming resistance to change.Management skills, used by the project manager include; presentation skills, negotiating, writing skills, public speaking.10.4.3 OutputsOrganizational process assets updates; causes of issues, reasoning behind corrective actions chosen, lessons learned from managing stakeholder expectationsProject document updates; stakeholder management strategy, stakeholder register, issue log.10.5 Performance Reporting The performance reporting process involves the collection of all baseline data, and

distribution of performance information to stakeholders. Generally, this performance information includes how resources are being used to achieve project objectives. Performance reporting should generally provide information on scope, schedule, cost, quality, risk, and procurement.

Performance reports organize and summarize the information gathered, and present the results of any analysis as compared to the performance measurement baseline. Reports should provide the status and progress information, and the level of detail required by various stakeholders as documented in the Communications Management plan.

More elaborate reports may include; analysis of past performance, current status of risks & issues, work completed during the period, work to be completed next, summary of changes approved in the period, other relevant information which must be reviewed & discussed.10.5.1 InputsWork performance information; is collected on performance result such as; deliverables status, schedule progress, cost incurredWork performance measurement, the metrics includes; Planned versus actual schedule performance, planned versus actual cost performance, planned versus actual technical performance.Organization process assets, that can influence the report performance process include; report templetes, policies & procedures that define the measures & indicators to be used, organizational defined variance limits10.5.2 Tools & TechniquesVariance analysis, is an after-the-fact look at what caused a difference between the baseline & the actual performance. The process for performing variance analysis may vary depending on the application area, the standard used & the industry.Common steps are: verify the quality of the information collected to ensure that it is complete; determine variances; determine the impact of the variances in the project cost & schedule as well as in other areas of the projectForecasting methods, time series methods, causal/econometric methods, judgmental methods, other methods10.5.3 OutputsPerformance report, idem with More elaborate reports may include + result of variance analysis; forecasted project completion (including time & cost)Change requests, are processed through the perform integrated change control process as follow; recommended corrective actions include changes that bring the expected future performance of the project in line with the project management plan, & recommended preventive actions can reduce the probability of incurring future negative project performance.Communication StrategyMedia; Email, Telephone, Web conference, Hard copy, MeetingsTypes of information and purpose, The type of information to be communicated and distributed will depend on the audience, and the purpose for which it is being conveyed. For instance, technical design documents will be of interest to the technical committee that is chartered with reviewing and approving design documentsCommunication Trap Occurs when customer loses trust to the contractor Consequence ; More documentation, More interchange

meetings, Frequent site inspection

PROJECT RISK MANAGEMENT

Project Risk Management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project; most of these processes are updated throughout the project.

The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of events adverse to the projectTypes of Risk: Uncertainty: - known, - known-unknown, - unknown-unknownImpact to: Scope, Quality, Schedule, CostSources of Risk: External; unpredictable; External predictable, uncertainty; Internal-non technical; Technical; LegalTingkat Risiko (Level Risiko), Tinggi rendahnya Risiko diukur berdasarkan : Akibat (consequences) : seberapa besar akibat yang timbul bila risiko itu benar-

benar terjadi? Kemungkinan terjadinya (likelihood) : Seberapa besar kemungkinan risiko itu dapat

terjadi? Jadi : suatu risiko dikategorikan rendah bila kecil akibatnya dan kecil kemungkinan terjadinya

Kategori Sumber/JenisRisiko

11.1 Plan Risk ManagementMemutuskan bagaimana melakukan pendekatan , merencanakan, dan

melaksanakan kegiatan manajemen risiko proyek. Menjelaskan bagaimana manajemen risiko akan distrukturkan dan dilaksanakan

pada proyek. 11.1.1 InputsOrganizational process assets, that can influence the plan risk management process include; risk categories, common definitions of concepts & term, risk statement formats, standart templetes, roles & responsibilities, authority levels for decision-making, lossons learned, stakeholder register11.1.3 OutputsIt becomes a subset of the project management plan. The risk management plan includes the following;- Methodology - Roles & Responsibilities - Budgeting- Timing - Risk Categories - Reporting

formats- Definitions of risk probability & impact - Tracking- Probability & impact matrix - Revised stakeholders’

tolerancesThe Risk Breakdown Structure (RBS) is a hierarchically organized depiction of the identified project risks arranged by risk category & subcategory that identifies the varios areas & causes of potential risk.11.2 Identify RiskIs the process of determining which risks may affect the project & documenting their characteristics. Participants in risk identification activities can include the following; project manager, project team members, risk management team (if assigned), customers, subject matter expert from outside the project team, end users, other project managers, stakeholder, & risk management experts.11.2.1 InputsProject document include; assumptions log, work performance reports, earned value reports, network diagrams, baseline, other project information proven to be valuable in identifying risksEnterprise environmental factors, that can influence the identify risk process include;Published information (including commercial databases), academic studies, published checklists, benchmarking, industry studies, risk attitudes.Organizational process assets; project files (including actual data), organizational & project process control, risk statement templates, lessons learned.11.2.2 Tools & TechniquesInformation Gathering Techniques

Brainstorming Delphi technique, is a way to reach a consensus of experts Interviewing Root cause analysis, is a specific technique to identify a problem, discover

the underlying causes that lead to it, and develop preventive actionDiagramming techniques Cause & effect diagrams; also known as Ishikawa or fishbone diagrams System or process flow charts; show how various elements of a system interrelate Influence diagrams; graphical representations of situations showing causal

influence, time ordering of events,other relationships among variables & outcomes11.2.3 OutputsRisk register; Daftar risiko pada akhirnya berisi hasil proses manajemen risiko lain sebagaimana yang dilakukan, menghasilkan dalam satu peningkatan dalam level dan jenis informasi merupakan isi daftar resiko dari waktu ke waktu. Persiapan dari daftar risiko mulai di proses meng identifikasi risiko dengan informasi berikut; list of identified risks, list of potential responses, Sebab akibat risiko, Kategori risiko yang terbarukan.Typical Functional Distribution of Controllable Risk ItemsPM IntegrationRisk Events. Incorrect start of integrated PM relative to project life cycle.Risk Conditions.. Inadequate planning, integration or resource allocation.. Inadequate, or lack of post-project review.ScopeRisk Events. Changes in scope to meet project objectives, e.g. regulatory changes.Risk Conditions.. Inadequate planning, or planning lead time.. Poor definition of scope breakdown, or work packages.. Inconsistent, incomplete or unclear definition of quality requirements.. Inadequate scope control during implementation.TimeRisk Events. Specific delays, e.g. strikes, labor or material availability, extreme weather, rejection of work.Risk Conditions.. Errors in estimating time or resource availability.. Poor allocation and management of float.. Scope of work changes without due allowance for time extensions/acceleration.. Early release of competitive product.CostRisk Events. Impacts of accidents, fire, theft.. Unpredictable price changes, e.g. due to supply shortage.Risk Conditions.. Estimating errors, including estimating uncertainty.. Lack of investigation of predictable problems.. Inadequate productivity, cost, change or contingency control.. Poor maintenance, security, purchasing, etc.QualityRisk Events. Performance failure, or environmental impact.Risk Conditions.. Poor attitude to quality.. Substandard design/materials/workmanship.. Inadequate quality assurance program. Human ResourcesRisk Events. Strikes, terminations, organizational breakdownRisk Conditions.. Conflict not managed.. Poor organization, definition or allocation of responsibility, or otherwise absence of

motivation.. Poor use of accountability.. Absence of leadership, or vacilating management style.. Consequences of ignoring or avoiding risk.CommunicationsRisk Events. Inaction or wrong action due to incorrect information or communication failure.Risk Conditions.. Carelessness in planning or in communicating.. Improper handling of complexity.. Lack of adequate consultation with project’s “publics” (internal/external).

RiskRisk Events. The risk of overlooking a risk.. Changes in the work necessary to achieve the scope. Risk Conditions.. Ignoring risk or “ assuming it away”.. Inappropriate or unclear assignment of responsibility/ risk to employees/

contractors.. Poor insurance management.. Inappropriate or unclear contractual assignment of risk. Procurement/ContractRisk Events. Contractor insolvency. . Claim settlement or litigation.Risk Conditions.. Unenforceable conditions/clauses.. Incompetent or financially unsound workers/contractors.. Adversarial relations.. Inappropriate or unclear contractual assignment of risk.11.3 Perform Qualitative Risk AnalysisMembuat prioritas hasil analisis risiko atau tindakan lebih lanjut dengan cara mengkaji dan mengkombinasikan kemungkinan dari kejadian serta dampaknya Risk Event Status = Risk Probability x Amount at Stake11.3.1 InputsOrganizational process assets: information on prior, similar completed projects; studies of similar projects by risk specialists; risk databases that may be available from industry or proprietary sources.11.3.2 Tools & techniquesRisk Probability & Risk Impact Assessment: Risk Probability & Impact assessment investigates the likelihood that each

specific risk will occur. Risk Impact Assessment investigates the potential effect on a project

objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities.

Risk Probability Ranking, To rank risks by probability & impact: Set up a matrix to match a percentage (probability of risk) to a ranking

number. Use the sample matrix shown on the right, A different matrix can be set up if it would better suit the project. 11.3.2 OutputsRisk register updates from perform qualitative risk analysis include:- Relative ranking or priority list of project risks- Risks grouped by categories- Cause of risk or project areas requiring particular attention- List of risk requiring response in the near-term- List of risks for additional analysis & response- Watchlists of low-priority risks- Trends in qualitative risk analysis results11.4 Perform Quantitative Risk AnalysisNumerically analyzing the effect on overall project objectives of identified risks11.4.2. Tools & techniquesData gathering & representation techniques;- Interviewing; draw on experience & historical data to quantify the

probability & impact of risk on project objectives.- Probability distributions; used extensively in modeling & simulation

represent the uncertainty in values such as durations of schedule activities & cost of project components.

Quantitative risk analysis & modeling techniques- Sensitivity analysis; help to determine which risks have the most potential

impact on the project- 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.

- Modeling & simulation; uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives.

11.4.3 OutputsRisk Register Updates;- Probabilistic analysis of the project- Probability of achieving cost & time objectives- Prioritized list of quantified risks- Trends in quantitative risk analysis results11.5 Plan Risk Responses

Developing options and actions to enhance opportunities, and to reduce threats to project objectives11.5.2 Tools & techniques

11.5.3 OutputsRisk Register Updates;- Identified risks, their descriptions, area of the project (WBS element) affected,

their causes (RBS element), & how they may affect project objectives- Risk owners & assigned responsibilities- Outputs from the perform qualitative analysis process, including prioritized list of

project risks- Agreed-upon reponse strategies- Specifid actions to implement the choosen reponse strategy- Triggers, symptoms, & warning signs of risks’ occurrence- Budget & schedule activities required to implement the chosen reponses- Contingency plans & triggers that call for their execution- Fallback plans for use as areaction to a risk that has occurred & the primary

response proves to be inadequate- Residual risks that are expected to remain after planned responses have been

taken, as well as those that have been deliberately accepted- Secondary risks that arise as a direct outcome of implementing a risk response- Contingency reserves that are calculated based on the quantitative risk analysisi of

the project & the organization’s risk thresholdsElements of Project Management Plan Updates;Schedule management plan, cost management plan, quality management plan, procurement management plan, HRM plan, Work Breakdown Structure, Schedule baseline, cost performance baseline.Project Document Updates; Assumtions log updates, technical documentation updates.11.6 Monitor and Control RisksIs the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, & evaluating risk process effectiveness throughout the project.Other purposes of the monitor & control rosk process are to determine if;- Project assumptions are still valid- Analysis shows an assessed risk has changed or can be retired- Risk management policies & procedures are being followed- Contingency reserves of cost or schedule should be modified in alignment with the

current risk assessment

11.6.1 InputsWork performance information; deliverable status, schedule progress, cost incurred11.6.3 OutputsOrganizational process assets updates;- Templates for the risk management plan, including the probability & impact

matrix, & risk register- Risk breakdown structure- Lessons learned from the project risk management activitiesChange requests can include:- Recommended corrective actions- Recommended preventive actions

Peran PM dalam Pengadaan - Mengidentifikasi risiko dan menyertakan peringanan dalam kontrak.- Mencocokan jadwal pengadaan sesuai dengan jadwal penyelesaian proyek.- Terlibat sepanjang negosiasi kontrak - Melindungi integritas dalam proyek - Melindungi hubungan dengan penyedia jasa/barang.Pembeli/pengguna = Customer, Owner, ClientPenjual/penyedia = Consultant, Contractor/Sub-contractor, Vendor, Supplier 12.1 Plan Procurements Proses merencanakan pembelian dan memperolehnya. Memenuhi kebutuhan proyek dengan memelihan cara yang terbaik. Dengan menyesuaikan apa, bagaimana, berapa jumlahnya dan kapan harus

dibeli atau diadakan. Memperhitungkan potensi penyedia jasa. Schedule juga sangat mempengaruhinya. Risiko apa saja yang akan timbul didalam setiap pilihan keputusan untuk

membuat atau membeli. Juga jenis kontrak apa yang cocok dalam mengurangi atau memindahkan

risiko kepada penyedia jasa12.1.1 InputsEnterprise Envirinmental Factors;- Marketplace conditions- Product, services, & result that are available in the marketplace- Suppliers, including past performance or reputation- Typical terms & conditions for products, services & results or for the specific

industry- Uniqe local requirementOrganizational process assets;- Formal procurement policies, procedures, & guidelines- Mnagement systems that are considered in developinh the procurement

management plan & selecting the contract types to be used- As established multi-tier supplier system of pre-qualified sellers based on

prior experience

12.1.2 Tools & techniquesMake-or-buy analysisMaksud dan tujuan :- Menetapkan apakah produk yang dibutuhkan dapat diproduksi dengan biaya yang

efektif oleh perusahaan/institusi sendiri? - Suatu evaluasi dari manfaat dan keuntungan antara dikerjakan/dibuat sendiri atau

menggunakan sumberdaya dari luar organisasi seperti : tenaga ahli, kapasitas, biaya, kompetensi utama, kerahasiaan usaha. Dll.

- Besar pengaruhnya terhadap tujuan yang lebih luas yang dibutuhkan dengan segera

- Penyesuaian terhadap keamanan juga diperlukan untuk menggambarkan cara cara atau metode seperti pilihan untuk membuat sendiri ketika data sangat rahasia

Expert judgment- Tenaga ahli yang sering diperlukan untuk keahlian dalam bidang pembelian juga

dapat digunakan untuk mengembangkan atau memodifikasi kriteria yang akan dipakai untuk meng evaluasi penawaran atau proposal yang dibuat oleh penyedia jasa/ penjual.

- Membantu dalam pembelian/pengadaan dengan persyaratan dan kondisi tidak standar.

Contract types:Type contract• Fixed Price or Lump-Sum (Firm Fixed Price (FFP), Fixed Price Incentive Fee

(FPIF), Fixed Price with Economic Price Adjustments (FP-EPA))• Cost Reimbursable (Cost Plus Fee (CPF) or Cost Plus Percentage of Cost

(CPPC) or Cost Plus Award Fee (CPAF), Cost Plus Fixed Fee (CPFF) , Cost Plus Incentive Fee (CPIF))

• Time and Material (T&M) Hybrid type of contractual arrangement that contains aspect of cost reimbursable and fixed price (Example : In drilling operation, seller will charge at X $/hour. In case there is delay. Then the seller still charge the buyer for how long delay * haur rate.

Pembeli cenderung memilih Fixed Contract, yang akan menempatkan risiko pada penyedia/penjual.Dan penjual/penyedia cenderung memilih cost reimbursable contract yang akan menempatkan risiko pada Pembeli/Pengguna Contract TermsStandard contract :Standard of contract that used by the company. No need futher review Special Provision :Addition to standard terms and condition, what need to be added, changes or removed from standard provision so that the resulting contract addresses the particular needs of the project As a result of : Risk analysis, Requirements of the projects, Type of project, Administrative, legal, or business requirementsLetter of intent (LoI)It is not a contract, but a letter without legal binding, that says the buyer intends to hire the seller.Fixed Price Risk on seller since any cost overruns may not be passed to the buyer Buyer have experience and know the total price at project start Can be More expensive than cost reimbursable Two type :

Fix Price Incentive Fee : Incentive fee meeting a target specified in the contract; e.g. Completed ahead of schedule

Fixed Price Economic Adjustment: For case when fluctuations in the exchange rate/interest rate may impact to he project

Some Views of Lump Sum ContractOwner Advantages; Lower Price, Budget Control, Reduce Owner Staff, Better Contractor

Personnel Disadvantages; Reduceed involvement, First Cost versus Quality, Start-Up

SurprisesContractor Advantages; Higher Profit Potential, Minimum Owner Participation Disadvantages; Higher loss potential, Cost of Bidding, Probability of awardFix Price Plus Incentive Fee Contract Risk is shared by both the buyer and seller This enables the seller to develop production efficiency during the performance

of the contractFix Price Plus Incentive Fee Contract (Example)

Non Competitive Forms of ProcurementThis form is used when the scope is awarded to a seller without competition. This would be implemented in the following condition :Special Provision :- The project under schedule pressure- A seller has unique qualification- There is only one seller- A seller hold a patent- Other mechanism exist to ensure that the seller’s price are reasonableThe forms are : - Single source : contract directly to preferred seller. This might be a company that have worked before and for various reason don’t want to look for another - Sole Source : there is only one seller. This might be a company that owns a patentCost Reimbursable Risk on buyer Often used when the buyer can only describe what they need rather than what to

do Simpler scope of work Two type :

Cost Plus Fixed Fee : The seller passes the cost back to buyer and receive additional fix fee upon completion of project. Risk on Buyer

Cost Plus Incentive Fee : The seller passes the cost back to the buyer and gets an incentive fee for meeting a target (e.g. keep the cost remain low). Risk on Buyer and Seller

Some Views of Reimbursable ContractOwnerAdvantages; Involved, Competitive contractor mark-ups, Few surprises, Fast track potentialDisadvantages; Potential Overrun, High staff costs, Weaker contractor personnelContractorAdvantages; Normally will not lose money, Reasonable bidding costDisadvantages; Profit levels modest, Heavy owner participationThe Cost Plus Percentage of Cost Contract The most undesirable type of contract because the seller has no incentive to

decrease costs. The seller may be motivated to increase costs since, by increasing costs, the profit

potential will also increase. The buyer need to pay particular attention to control pf labor and material costs so

that the seller will not be able to purposefully increase these costs. 100% of the risk is borne by the buyer.The Cost Plus Percentage of Cost Contract (Example)Estimated Cost = 100,000Agreed upon percentage = 10%Estimated Total Price = 110,000If the seller increase cost to 110,000 then the total price would be 121,000Seller would increase a profit of 1,000The Cost Plus Fixed Fee Contract The seller receives as a profit a fixed fee payment usually based on a percentage of

estimated costs. Fixed fee does not vary with actual costs unless the scope of work is changed. No motivation for the seller to decrease costsThe Cost Plus Fixed Fee Contract (Example)Estimated Cost = 100,000 Agreed upon percentage = 10% = 10,000 Estimated Total Price = 110,000 Actual Cost = 110,000 The Fee remains = 10,000The Cost Plus Incentive Fee The seller is paid for allowable performance costs along with a predetermined fee

and an incentive bonus. The buyer and seller benefit by the cost savings based upon a pre-negotiated

sharing formula. The buyer and the seller share the risk but both can gain The Cost Plus Incentive Fee (Example) Expected Cost = 100,000 Fee to the seller = 10,000 Sharing Formula = 85/15 In the final Cost = 80,000 The seller final reimbursed cost = 80,000 + 10,000 + 15% * 20,000 = 93,000Time & Material In this case, seller charges for time, plus the cost of any materials needed to

complete the work. Form : contract is priced on a per hour or per item basis and has elements of a

fixed price contract ( matarial used, and total cost is unknown) Buyer has medium amount cost of risk Used when scope of work not completely defined, but everyone agrees that the

project is relatively small and the need is urgent Quick to create, good choice when you are hiring people to augment your staf Require the most day to day oversight from the buyer12.1.3 OutputProcurement management plan;- Types of contract to be used- Risk management issues

- Whether independent estimates will be used & if they are needed as evaluation criteria

- Those actions the project management team can take unilaterally, if the performing organization has a prescribed procurement, contracting, or purchasing department

- Standardized procurement document, f they are needed- Managing multiple suppliers- Coordinating procurement with other project aspects, sucha as scheduling &

performance reporting- Any constraints & assumptions that could affect planned procurement- Handling the make-or-buy decisions & linking them into the estimate activity

resource & develop schedule processes- Setting the scheduled dates in each contract for the contract deliverables &

coordinating with the schedule development & control processes- Identifying requirement for performance bonds & insurance contracts to mitigate

some forms of project risk- Establishing the direction to be provided to the sellers on developing &

maintaining a WBS- Establishing the form & format to be used for the procurement/contract

statements of work- Indentifying prequalified sellers, if any. To be used- Procurement metric to be used to manage contracts & evaluate sellersProcurement Documents; Bid and Quotation

Umumnya digunakan ketika keputusan pemilihan/seleksi atas dasar harga. Proposal

Umumnya digunakan ketika bukan atas pertimbangan finansial , seperti kecakapan teknis atau pendekatan yang tertinggi.

Biasanya nama dokumen pengadaan seperti :IFB : Invitation for Bid RFP : Request for ProposalRFQ : Request for Quotation IFN : Invitation for NegotiationCIR : Contractor Initial Response

Source Selection Criteria; can be identified & documented to support an assessment for more complex products, services, or result;-Understanding of need -overall or life-cycle cost-Technical capability -risk-Management approach -technical approach-Warranty -financial capacity-Production capacity & interest -business size & type-Past performance of sellers -references-Intellectual property rights -proprietary rights12.2 Conduct ProcurementsMemperoleh tanggapan dari Penjual/penyedia, pemilihan penjual/penyedia, dan memberikan kontrak12.2.2 Tool & TechniquesBidder ConferenceMeetings with prospective interested sellers prior to Bid/Proposal preparation to ensure common understanding of the procurement, e.g.:- Technical requirements - Contract requirements - EtcUsed to ensure that all prospective sellers have a clear and common understanding of the procurement, and that no bidders receive preferential treatment12.2.3 OutputProcurement Contract Award:The Contract usually includes:- Statement of work or deliverables - Schedule baseline- Performance reporting - Period of performance- Roles and responsibilities - Seller’s place of performance- Pricing - Payment terms- Place of delivery - Inspection and acceptance criteria- Warranty12.3 Administer ProcurementsMengelola hubungan pengadaan, memonitor kinerja kontrak, dan membuat perubahan dan pembenahan sesuai keperluan. The project management processes that are applied may include;- Direct and manage project execution - Report performance- Perform quality control - Perform integrated change control- Monitor & control risks12.3.3 OutputsOrganizational process assets updates- Correspondence - Payment schedules & requests- Seller performance evaluation documentationProject management plan updates- Procurement management plan - Baseline schedule12.4 Close ProcurementsThe process of completing each project procurement12.4.3 OutputsOrganizational Process Assets Updates• Procurement file

a complete set of indexed contract documentation, including the closed contract, prepared for inclusion with the final project

• Deliverable acceptanceformal written notice from buyer, noticing that the deliverables have been accepted or rejected

• Lessons learned documentation

lessons learned, what has been experienced, and process improvement recommendations should be developed for the project file to improve future procurements

LAMPIRAN –LAMPIRAN

Quality Tools & Techniques

Work Definition and Assignment Process

Risk Analysis process

HRM

WBS & OBS

Quantitative Risk analysis tools & techniques