principles of project management - mycpm.org€¦ · principles of project management ipm 2012...
TRANSCRIPT
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Principles of Project Management
IPM 2012 Conference
1
David Radkovich, PMP, EVP
Subsystem Technologies
Karen Jordan, PMP
Subsystem Technologies
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• How many of you are attending your first EVM conference?
• How many of you are new to EVM?
• How many of you are Project Managers? Earned Value
Analyst?
About today's group
Analyst?
• Any Project Management Professionals (PMP’s)?
• Any Earned Value Professionals (EVP’s)
• Does anyone have over three years experience in EVM?
• How many of you support the Government? Other industries?
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• Brief introduction to Project Management and PMI
• Brief Intro to Earned Value
• Some Examples of how EVM can help with Project
Management
Agenda
Management
• Basic introduction to PMI’s Project Management processes and
how they relate to EVM
• We will cover as many of PMI’s 42 processes as we have time,
but I suspect we will not get through them all
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• PMI
– PMI is the world’s leading not-for-profit membership association
for the project management profession, with more than half a
million members and credential holders in more than 185
countries. Our worldwide advocacy for project management is
supported by our globally-recognized standards and credentials,
our extensive research program, and our professional
development opportunities.
Who is PMI and CPM
development opportunities.
• College of Performance Management
– We are an international, non-profit professional organization
dedicated to the disciplines of project management and
performance measurement. We assist the earned value
professional and project manager in professional growth and
promote the application of earned value management. We are a
growing body of professionals dedicated to managing projects on
time and on budget.
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PMI Facts
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• PMI’s definition:
– It’s a temporary group activity designed to produce a unique product, service
or result.
– A project is temporary in that it has a defined beginning and end in time, and
therefore defined scope and resources.
• From Wikipedia
– the discipline of planning, organizing, securing, and managing resources to
What is a Project?
– the discipline of planning, organizing, securing, and managing resources to
achieve specific goals. A project is a temporary endeavor with a defined
beginning and end (usually time-constrained, and often constrained by funding
or deliverables),[1] undertaken to meet unique goals and objectives,[2] typically
to bring about beneficial change or added value. The temporary nature of
projects stands in contrast with business as usual (or operations),[3] which are
repetitive permanent, or semi-permanent functional activities to produce
products or services. In practice, the management of these two systems is
often quite different, and as such requires the development of distinct
technical skills and management strategies.
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What is Project Management?
• The application of knowledge, skills and techniques to
execute projects effectively and efficiently. It’s a strategic
competency for organizations, enabling them to tie
project results to business goals — and thus, better
compete in their markets.
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http://www.pmi.org/en/About-Us/About-Us-What-is-Project-Management.aspx
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Portfolio, Program, and Project Management?
Portfolio
Program
Ford manufactures and sells different cars
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Project
Ford manufactures different models of Mustang
Ford has a project to manufacture Mustang GT
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Type of organizations?
Project Characteristic Functional Matrix Projectized
Project manager’s authority
None to little Limited to high High to full
Project manager’s role Part-time Part-time / full-time
Full-time
PM Administrative None to part- Part-time / Full-time
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PM Administrative staff
None to part-time
Part-time / full-time
Full-time
Project budget controlled by
Functional Manager
Functional Manager, Project Manager or both
Project Manager
Resource availability None to little Limited to high High to full
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Represents generally recognized good
practices in the profession while reflecting
project management’s continually
evolving knowledge
First developed as a white paper in the
Introduction to the PMBOKPMI’s Project Management Body of Knowledge (PMBOK)
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First developed as a white paper in the
1983 PMI Ethics, Standards and
Accreditation Report, the PMBOK® Guide
has become the foremost global standard
for the practice of project management
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• Members of PMI get access to electronic copy, but anyone
can buy it
• Please keep in mind the PMBOK is all about What to Do,
not How to do it.
Introduction to the PMBOK
not How to do it.
• Many third party study guides available
• Example of a source for templates
– /OHA/admin/bpm/pmo/docs/PCoE_PMBOK_4TH_EDITION_
TEMPLATES.doc
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• 42 Processes
– 5 Process groups
– 9 Knowledge area
– All have:
Introduction to the PMBOK
• Inputs
• Tool and Techniques
• Outputs
• Key points
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• Project Integration Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
Knowledge Area’s
• Project Quality Management
• Project Human Resource Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management
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Example of ITTO
Inputs
1. Project Scope
Statement
2. Cost Management
Plan
3. Schedule
Management Plan
4. Communications
Tools & Techniques
1. Planning meetings and
analysis
Outputs
1. Risk Management
Plan
Example ITTO
Example of ITTO
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4. Communications
Management Plan
5. EEFs
6. OPAs
PMBOK 4th Ed, P. 274
Plan Risk Management Process
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• PMI - Earned Value Management (EVM) -
Management methodology for integrating scope,
schedule, and resources for objectively measuring
project performance and progress.
• Wikipedia - a project management technique for
Definition of EVM
• Wikipedia - a project management technique for
measuring project performance and progress in
an objective manner
• Dave’s – Basic project management with an
emphasis on cost and schedule control
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EVMS
Building
Blocks
Plan
Budget
Planned Value
(PV)
“Should Do”
Status
Performance
Earned Value
(EV)
“Did Do”
BCWBCWBCWBCWPPPP
Actual Costs
(AC)
“Cost”
AAAACWPCWPCWPCWP
Estimate At
Complete
Latest Revised
Estimate
EACEACEACEAC
Budget At
Complete
Total Budget
& Work
BACBACBACBACBCWBCWBCWBCWSSSS
EVMS Introduction: we must compare…
Outputs
Schedule Variance (SV) =
BCWP – BCWS
SV% = SV / BCWS
SPI = BCWP / BCWS
Cost Variance (CV) =
BCWP – ACWP
CV% = CV / BCWP
CPI = BCWP / ACWP
Variance At Complete =
BAC - EAC
TCPI =
BAC – BCWP cum
EAC – ACWP cum
EAC – ACWP =
Estimate To Complete
(ETC)
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CPM’s knowledge
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BRAND IDENTITY GUIDELINES
Project Management InstituteProject Management Institute
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• Project managers are expected to know the progress of
their project at all times. Are you meeting expectations?
Staying within budget? Staying on schedule? These can be
tough questions to answer without the use of Earned
How does EVM Relate to Project Management?
tough questions to answer without the use of Earned
Value Management (EVM).
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http://www.projecttimes.com/articles/evm-project-management-with-the-lights-on.html
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• Project Integration Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
What PMBOK Knowledge area’s involve EVM?
• Project Quality Management
• Project Human Resource Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management
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Control Cost Process
Example of Process Flow diagram
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PMBOK page 180
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• CPI and SPI
• Cancellation of A-12 contract
Example of Using EVM in Project Management
• Example for Project David worked on
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• CPI = 1.322For every $1.00 we spent we got $1.32 worth of
work done
Good or Bad?
• SPI = 0.815For every $1.00 of work we had scheduled we
got $.81 worth of work done
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Help!!!
Slide: ‹#› 24
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Slide: ‹#› 25
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Contractor EAC
Government PM EAC
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Example from “real” project
In August 2006 BAC (Contract)was $30,063K
When Program was terminated in October 2009 contract value was
$54,900K with over $1,000K in additional change requests
submitted
Completion Data Statistical & Independent Forecast Data ($K)
% SPT BAC ($K) LRE ($K) VAC ($K) TCPI-BAC TCPI-EAC 3 PER AVG 6 PER AVG CUM CPI COST & SCH CPI*SPI
83.53 30,062.70 38,744.7 -8,682.00 1.96 0.713 87,658.10 55,050.90 37,958.70 40,298.20 56,685.00
79.16 30,062.80 37,371.5 -7,308.70 1.62 0.745 67,381.70 53,629.70 36,627.70 37,844.40 47,726.30
75.64 30,062.80 35,801.40 -5,738.60 1.40 0.71 599,789.50 50,168.30 35,117.40 36,575.00 45,809.10
71.52 30,062.80 34,270.70 -4,207.90 1.24 0.83 46,425.90 46,945.60 33,664.30 35,326.70 43,773.00
L A S T T H R E E M O N T H S
Was SCI-based EAC a reasonable floor? (SCI=CPI*SPI) (BAC/CPI*SPI)
Figures from August 2006 WinSight Report Figures from August 2006 WinSight Report
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• Project Management Professional (PMP)
– Project Management Institute (PMI) (www.pmi.org)
• Earned Value Professional (EVP)
– AACEi (www.aacei.org)
Some CertificationsSome Certifications
– AACEi (www.aacei.org)
– AACEi has several other certifications around cost
estimating
• CPM’s Certificate Program
– http://www.mycpm.org/about-us/professional-education-program/
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PMP RequirementsPMP Requirements
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PMI’s PMP Handbook
http://www.pmi.org/en/Certification/Project-Management-Professional-PMP.aspx
• 200 Question 4 hour exam
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• Experience requirements
At least 8 full years of professional experience, of which up to 4 years may be substituted by a
college/university degree. Related degrees include: engineering, building construction,
construction technology, business, economics, accounting, construction management,
architecture, computer science, mathematics, etc.
• Submit application and fees
AACE Members US$350.00 Non-Members US$500.00 for the regular fee, subtract $50 for the
early fee. Submit the application, work/education verification and fees, at least 40 days before
EVP RequirementsEVP Requirements
the next exam date to be scheduled at an exam site.
• Document experience/education
Applications are reviewed and verified. Please submit a copy of college degree(s) with your
application, plus any letters that could expedite the verification process.
• Pass the examination
To become EVP™ certified, an overall passing score must be achieved, as determined by the
Certification Board. Parts II, III and IV consist of a combination of compound questions and
multiple choice questions; all must be answered.”
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http://www.aacei.org/educ/cert/EVP/
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Develop Project Charter (4.1)
Develop Project Management Plan
(4.2)
Direct and Manage Project Execution
(4.3)
Project Integration Management Project Integration Management –– Chapter 4Chapter 4
31
(4.2) (4.3)
Monitor and Control Project
Work (4.4)
Close Project or Phase (4.6)
Perform Integrated Change Control
(4.5)
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Inputs
• Project Statement of Work
Tools & Techniques
• Expert Judgment
Outputs
• Project Charter
Develop Project Charter 4.1Develop Project Charter 4.1
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Work
• Business Case
• Contract
• Enterprise Environmental Factors
• Organizational Process Assets
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Develop Project Charter 4.1Develop Project Charter 4.1
Importance Of The Project Charter
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Inputs
• Project Charter
• Outputs from Planning
Tools & Techniques
• Expert Judgment
Outputs
• Project Management Plan
Develop Project Management Plan 4.2 Develop Project Management Plan 4.2
Planning Processes
• Enterprise Environmental Factors
• Organizational Process Assets
Plan
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Develop Project Management Plan 4.2 Develop Project Management Plan 4.2
The Project Management Plan
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Inputs
• Project Management Plan
• Approved
Tools & Techniques
• Expert Judgment
• Project Management Information
Outputs
• Deliverables
• Work Performance Information
Direct and Manage Project Execution 4.3 Direct and Manage Project Execution 4.3
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• Approved Change Requests
• Enterprise Environmental Factors
• Organizational Process Assets
Management Information Systems
Information
• Change Requests
• Project Management Plan Updates
• Project Document Updates
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Direct and Manage Project Execution 4.3 Direct and Manage Project Execution 4.3
� During the Executing processes, you should continually compare
and monitor project performance against the baseline so that corrective
actions can be taken and implemented at the right time to prevent
disaster
�The PMBOK Guide says, this process also requires implementing
37
�The PMBOK Guide says, this process also requires implementing
corrective actions to bring the work of the project back into alignment
with the project plan, preventive actions to reduce the probability of
negative consequences, and defect repairs to correct product defects
discovered during the quality processes
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Inputs
• Project Management Plan
Tools & Techniques
• Expert Judgment
Outputs
• Change Requests
• Project
Monitor and Control Project Work 4.4 Monitor and Control Project Work 4.4
38
Plan
• Performance Reports
• Enterprise Environmental Factors
• Organizational Process Assets
• Project Management Plan Updates
• Project Document Updates
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� The process is concerned with monitoring all the processes in the
Initiating, Planning, Executing, and Closing process groups
� Using this process, you’ll collect data, measure results, and report
on performance information
Monitor and Control Project Work 4.4 Monitor and Control Project Work 4.4
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Inputs
• Project Management Plan
• Work
Tools & Techniques
• Expert Judgment
• Change Control Meetings
Outputs
• Change Requests Status Updates
• Project
Perform Integrated Change Control 4.5 Perform Integrated Change Control 4.5
40
• Work Performance Information
• Change Requests
• Enterprise Environmental Factors
Meetings • Project Management Plan Updates
• Project Document Updates
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Perform Integrated Change Control 4.5 Perform Integrated Change Control 4.5
41
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Inputs
• Project Management
Tools & Techniques
• Expert Judgment
Outputs
• Final Product, Service, or
Close Project or Phase 4.6 Close Project or Phase 4.6
42
Management Plan
• Accepted Deliverables
• Organizational Process Assets
Judgment Service, or Result Transition
• Organizational Process Assets Updates
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Collect Requirements
(5.1)
Define Scope (5.2)
Create WBS (5.3)
Project Scope Management Project Scope Management -- Chapter 5 Chapter 5
43
Verify Scope (5.4)
Control Scope (5.5)
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Why do we need scope Management?Why do we need scope Management?
44
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Why do we need scope Management?Why do we need scope Management?
•• Processes to ensure the project includes Processes to ensure the project includes allall the the
work required and work required and onlyonly the work required to the work required to
complete the project successfullycomplete the project successfully
–– Alleviates “gold plating,” which increases variability and Alleviates “gold plating,” which increases variability and
riskrisk
•• Primarily concerned with defining and controlling Primarily concerned with defining and controlling
what is and is not included in the projectwhat is and is not included in the project
45
what is and is not included in the projectwhat is and is not included in the project
•• The term scope refers to project and product scopeThe term scope refers to project and product scope
•• The 100% rule The 100% rule –– WBS represents all the work and WBS represents all the work and
nothing but the work that is required. All the work nothing but the work that is required. All the work
packages must roll up to the higher levels.packages must roll up to the higher levels.
This is where most projects fail!This is where most projects fail!
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Inputs
• Project Charter
• Stakeholder Register
Tools & Techniques
• Interviews
• Focus Groups
• Facilitated Workshops
Outputs
• Requirements Documentation
• Requirements Management Plan
Collect Requirement 5.1Collect Requirement 5.1
46
• Group Creativity Techniques
• Group Decision Making Techniques
• Questionnaires and Surveys
• Observations
• Prototypes
Plan
• Requirements Traceability Matrix
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Inputs
• Project Charter
• Requirements
Tools & Techniques
• Expert Judgment
Outputs
• Project Scope Statement
Define Scope 5.2Define Scope 5.2
47
• Requirements Documentation
• Organizational Process Assets
Judgment
• Product Analysis
• Alternative Identification
• Facilitated Workshops
Statement
• Project Document Updates
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Inputs
• Project Scope Statement
Tools & Techniques
• Decomposition
Outputs
• WBS
• WBS Dictionary
Create WBS 5.3Create WBS 5.3
48
Statement
• Requirements Documentation
• Organizational Process Assets
• WBS Dictionary
• Scope Baseline
• Project Document Updates
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Control Account Level
ACME Housing Corporation
1
House Building
Project
1.1
Concrete
1.1.1
Framing
1.1.2
Plumbing
1.1.3
Electrical
1.1.4
Interior
1.1.5
Roofing
1.1.6
Level 1
Level 2
Level 3
Sample WBS Sample WBS
49
Work Package / Planning Package Level
Pour Foundation
1.1.1.1
Install Patio
1.1.1.2
Stairway
1.1.1.3
Frame Exterior
Walls
1.1.2.1
Frame Interior
Walls
1.1.2.2
Install Roofing
Trusses
1.1.2.3
Install Water
Lines
1.1.3.1
Install Gas Lines
1.1.3.2
Install B/K
Fixtures
1.1.3.3
Install Wiring
1.1.4.1
Install Outlets/
Switches
1.1.4.2
Install Fixtures
1.1.4.3
Install Drywall
1.1.5.1
Install Carpets
1.1.5.2
Install Painting
1.1.5.3
Install Felt
1.1.6.1
Install Shingles
1.1.6.2
Install Vents
1.1.6.3
Level 4
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Inputs
• Project Management Plan
• Requirements
Tools & Techniques
• Inspection
Outputs
• Accepted Deliverables
• Change Request
Verify Scope 5.4Verify Scope 5.4
50
• Requirements Documentation
• Requirements Traceability Matrix
• Validated Deliverables
• Change Request
• Project Document Updates
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Inputs
• Project Management Plan
• Work Performance
Tools & Techniques
• Variance Analysis
Outputs
• Work Performance Measurements
• Organizational Process Assets
Control Scope 5.5Control Scope 5.5
51
Performance Information
• Requirements Documentation
• Requirements Traceability Matrix
• Organizational Process Assets
Process Assets Updates
• Change Requests
• Project management Plan Updates
• Project Document Updates
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Hardware Training Project Mgt Data Spares
System (Contract Level)Work
Breakdown Structure(WBS)
OrganizationBreakdown
Structure (OBS)
Tooling Factory
Major
Subsystem 2
Improper
(WBS/OBS
Sub Sub Sub Sub Sub Sub 1A 1B 2A 2B 3A 3B
Sheet Metal
Shop
MachineShop
52
Company
Manufacturing
Tooling Factory
Mfg.
Eng.
(WBS/OBS
interface too low)ElectSubassembly
FinalAssembly
52
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Hardware Training Project Mgt Data Spares
System (Contract Level)
Manufacturing
Tooling Factory
Major
Subsystem 2
Desirable with
higher
WorkBreakdown Structure(WBS)
OrganizationBreakdown
Structure (OBS)
53
Company
Manufacturing
Tooling Factory
Mfg.
Eng.
higher
level of WBS and
OBS
53
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Define Activities (6.1)
Sequence Activities (6.2)
Estimating Activity
Resources (6.3)
Project Time Management Project Time Management
Overview Overview –– Chapter 6Chapter 6
54
Estimating Activity
Duration (6.4)
Control Schedule (6.6)
Develop Schedule (6.5)
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Inputs
• Scope Baseline
Tools & Techniques
• Decomposition
Outputs
• Activity List
Define Activities 6.1Define Activities 6.1
55
• Scope Baseline
• Enterprise Environmental Factors
• Decomposition
• Rolling Wave Planning
• Templates
• Expert Judgment
• Activity List
• Activity Attributes
• Milestone list
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Inputs
• Activity List
• Activity Attributes
Tools & Techniques
• Precedence Diagramming Method (PDM)
Outputs
• Project Schedule Network
Sequence Activities 6.2Sequence Activities 6.2
56
Attributes
• Milestone List
• Project Scope Statement
• Organizational Process Assets
Method (PDM)
• Dependency Determination
• Apply Leads and Lags
• Schedule Network Templates
Network Diagrams
• Project Document Updates
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Sample Network diagramSample Network diagram
I Recommend:
57
I Recommend:CPM-300-BCritical Path
Scheduling
Techniques
Harry
Sparrow
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Inputs
• Activity List
• Activity Attributes
• Resource Calendar
Tools & Techniques
• Expert Judgment
• Alternative Analysis
• Published
Outputs
• Activity Resource Requirements
• Resource Breakdown
Estimate Activity Resources 6.3Estimate Activity Resources 6.3
58
Calendar
• Enterprise Environmental Factors
• Organizational Process Assets
• Published Estimating Data
• Bottom-Up Estimating
• Project Management Software
Breakdown Structure
• Project Document Updates
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Inputs
•Activity list
•Activity Attributes
•Activity Resource Requirements
•Resource
Tools & Techniques
•Expert Judgment
•Analogous Estimating
•Parametric Estimating
Outputs
•Activity Duration Estimates
•Project Document Updates
Estimate Activity Durations 6.4Estimate Activity Durations 6.4
59
•Resource Calendars
•Project Scope Statement
•Enterprise Environmental Factors
•Organizational Process Assets
Estimating
•Three-Point Estimating
•Reserve Analysis
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Inputs
• Activity List
• Activity Attributes
• Project Schedule Network Diagrams
• Activity Resource Requirements
Tools & Techniques
• Schedule Network Analysis
• Critical Path Method
• Critical Chain Method
Outputs
• Project schedule
• Schedule baseline
• Schedule data
• Project document updates
Develop Schedule 6.5Develop Schedule 6.5
60
Requirements
• Resource Calendars
• Activity Duration Estimates
• Project Scope Statement
• Enterprise Environmental Factors
• Organizational Process Assets
• Resource Leveling
• What-if scenario analysis
• Appling leads and lags
• Schedule compression
• Scheduling tool
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Inputs
•Project Management Plan
•Project schedule
•Work Performance information
Tools & Techniques
•Performance reviews
•Variance analysis
•Project management software
Outputs
•Work performance measurement
•Organizational process assets
•Change requests
Control Schedule 6.6Control Schedule 6.6
61
information
•Organizational process assets
software
•Resource leveling
•What-if scenario analysis
•Adjusting leads and lags
•Schedule compression
•Scheduling tool
•Change requests
•Project management plan updates
•Project document updates
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Estimate Costs (7.1)
Determine Budgets (7.2)
Project Cost Management Overview Project Cost Management Overview ––
Chapter 7Chapter 7
62
Control Costs (7.3)
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Inputs
• Scope baseline
• Project schedule
• Human Resource Plan
• Risk Register
• Enterprise
Tools & Techniques
• Expert Judgment
• Analogous Estimating
• Parametric Estimating
• Bottom-Up
Outputs
• Activity Cost Estimates
• Basis of Estimates
• Project Document Updates
Estimate Costs 7.1Estimate Costs 7.1
63
• Enterprise Environmental Factors
• Organizational Process Assets
• Bottom-Up Estimating
• Three-Point Estimates
• Reserve Analysis
• Cost of Quality
• Project Management Estimating Software
• Vendor Bid Analysis
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Inputs
• Activity Cost Estimates
• Basis of Estimates
Tools & Techniques
• Cost Aggregation
• Reserve Analysis
Outputs
• Cost Performance Baseline
• Project
Determine Budget 7.2Determine Budget 7.2
64
Estimates
• Scope Baseline
• Project Schedule
• Resource Calendars
• Contracts
• Organizational Process Assets
Analysis
• Expert Judgment
• Historical Relationships
• Funding Limit Reconciliation
• Project Funding Requirements
• Project Document Updates
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Inputs
•Project Management Plan
•Project Funding Requirements
•Work
Tools & Techniques
•Earned Value Management
•Forecasting
•To-Complete Performance
Outputs
•Work Performance Measurements
•Budget Forecasts
•Organizational
Control Costs 7.3Control Costs 7.3
65
•Work Performance Information
•Organizational Process Assets
Performance Index(TCPI)
•Performance Reviews
•Variance Analysis
•Project Management Software
•Organizational Process assets Updates
•Change requests
•Project Management Plan Updates
•Project Document Updates
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Plan Quality (8.1)
Perform Quality
Assurance (8.2)
Project Quality Management Overview Project Quality Management Overview ––
Chapter 8Chapter 8
66
Perform Quality Control
(8.3)
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Total Cost of Quality“The cost of quality.”
It’s a term that’s widely used – and widely misunderstood.
The “cost of quality” isn’t the price of creating a quality product or service. It’s the cost of NOT creating a
quality product or service.
Source: http://www.asq.org/learn-about-quality/cost-of-quality/overview/overview.html
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Inputs
• Scope Baseline
• Stakeholder Register
• Cost Performance Baseline
• Schedule Baseline
Tools & Techniques
• Cost-Benefit Analysis
• Cost of Quality
• Control Charts)
• Benchmarking
• Design of
Outputs
• Quality Management Plan
• Quality Metrics
• Quality Checklists
• Process Improvement Plan
Plan Quality 8.1Plan Quality 8.1
68
• Schedule Baseline
• Risk Register
• Enterprise Environmental Factors
• Organizational Process Assets
• Design of Experiments
• Statistical Sampling
• Flowcharting
• Proprietary Quality Management Methodologies
• Additional Quality Planning Tools
Improvement Plan
• Project Document Updates
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Inputs
• Project Management Plan
• Quality Metrics
• Work
Tools & Techniques
• Plan Quality and Perform Quality Control Tools and Techniques
• Quality Audits
Outputs
• Organizational Process Assets Updates
• Change Request
• Project
Perform Quality Assurance 8.2Perform Quality Assurance 8.2
69
• Work Performance Information
• Quality Control Measurements
• Quality Audits
• Process Analysis• Project
Management Plan Updates
• Process Improvement Plan
• Project Document Updates
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Inputs
•Project Management Plan
•Quality Metrics
•Quality Checklist
•Work
Tools & Techniques
•Cause and Effect Diagrams
•Control Charts
•Flowcharting
•Histogram
Outputs
•Quality Control Measurements
•Validated Changes
•Validated Deliverable
Perform Quality Control 8.3Perform Quality Control 8.3
70
•Work Performance Measurements
•Approved Change requests
•Deliverables
•Organizational Process Assets
•Histogram
•Pareto Chart
•Run Chart
•Scatter Diagram
•Inspection
•Approved Change Requests
Deliverable
•Organizational Process Assets Updates
•Change Requests
•Project Management Plan
•Project Document Updates
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BRAND IDENTITY GUIDELINES
Project Management InstituteControl Chart: Examples
Control Chart ExampleControl Chart Example
Project Management InstituteControl Chart: Examples
Source: http://syque.com/quality_tools/toolbook/Control/example.htm
•Any Point outside limits (Upper or Lower) indicates a problem
•Rule of Seven – Indicates problem if seven consecutive points
are above or below the average
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BRAND IDENTITY GUIDELINES
Project Management Institute
Pareto Chart Example
What is
causing
delays in
processing
credit card
applications
Project Management Institute
Source: http://www.isixsigma.com/library/content/c010527a.asp
What Questions The Pareto Chart Answers•What are the largest issues facing our team or business?
•What 20% of sources are causing 80% of the problems (80/20 Rule)?
•Where should we focus our efforts to achieve the greatest improvements?
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Develop Human Resource Management (9.1)
Acquire Project Team (9.2)
Project Human Resource Management Project Human Resource Management
Overview Overview –– Chapter 9Chapter 9
73
Develop Project Team (9.3)
Manage Project Team (9.4)
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Inputs
• Activity Resource Requirements
Tools & Techniques
• Organizational Charts and Position
Outputs
• Human Resource Plan
Develop Human Resource Plan 9.1Develop Human Resource Plan 9.1
74
Requirements
• Enterprise Environmental Factors
• Organizational Process
Position Descriptions
• Networking
• Organizational Theory
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Inputs
• Project Management Plan
Tools & Techniques
• Pre-Assignment
• Negotiations
Outputs
• Project Staff Assignments
• Resource
Acquire Project Team 9.2Acquire Project Team 9.2
75
Plan
• Enterprise Environmental Factors
• Organizational Process
• Negotiations
• Acquisition
• Virtual Teams
• Resource Calendars
• Project Management Plan Updates
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Inputs
• Project Staff Assignments
• Project
Tools & Techniques
• Interpersonal Skills
• Training
Outputs
• Team Performance Assessments
Develop Project Team 9.3Develop Project Team 9.3
76
• Project Management Plan
• Resource Calendars
• Training
• Team-Building Activities
• Ground Rules
• Co-Location
• Recognition and Rewards
• Enterprise Environmental Factors Updates
• Project Management Plan Updates
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Inputs
• Project Staff Assignments
• Project Management Plan
Tools & Techniques
• Observation and Conversation
• Project Performance
Outputs
• Enterprise Environmental Factors Updates
• Organizational Process Assets
Manage Project Team 9.4Manage Project Team 9.4
77
Plan
• Team Performance Assessments
• Performance Reports
• Organizational Process Assets
Performance Appraisals
• Conflict Management
• Issue Log
• Interpersonal Skills
Process Assets Updates
• Change Requests
• Project Management Plan Updates
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Identify Stakeholders
(10.1)
Plan Communications
(10.2)
Distribute Information (10.3)
Project Communications Management Project Communications Management
Overview Overview –– Chapter 10Chapter 10
78
Manage Stakeholder
Expectations (10.4)
Report Performance
(10.5)
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• 90% of a Project Managers job is
communication
Project Communications ManagementProject Communications Management
Slide: ‹#› 79
• 65% to 70% of our communications is
transmitted non-verbally.– It’s not what you say but how you say it – most listeners will believe the
non-verbal actions over the verbal.
– Paralanguage: Pitch and tone of voice. It is a powerful form of non-
verbal communication that conveys attitude, intentions and emotions.
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Inputs
• Project Charter
• Procurement Documents
Tools & Techniques
• Stakeholders Analysis
• Expert
Outputs
• Stakeholder Register
• Stakeholder
Identify Stakeholders 10.1 Identify Stakeholders 10.1
80
Documents
• Enterprise Environmental Factors
• Organizational Process Assets
• Expert Judgment
• Stakeholder Management Strategy
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Stakeholder Analysis Quadrant
High
Keep
Satisfied
.A
.B
Manage
Closely
.H
Stakeholders Stakeholders
Slide: ‹#› 81
POWER
Low
Low INTEREST High
Example: Power / Interest Grid with Stakeholders
.A .H
.F
.G
Monitor
(Minimum Effort)
.D
.C
Keep
Informed
.E
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Inputs
•Stakeholder Register
•Stakeholder Management
Tools & Techniques
•Communications Requirements Analysis
•Communication
Outputs
•Communications Management Plan
•Project Document Updates
Plan Communications 10.2Plan Communications 10.2
82
Management Strategy
•Enterprise Environmental Factors
•Organizational Process Assets
•Communication Technology
•Communication Models
•Communication Methods
Updates
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Inputs
• Project Management Plan
Tools & Techniques
• Communication Methods
Outputs
• Organizational Process Assets Updates
Distribute Information 10.3Distribute Information 10.3
83
Plan
• Performance Reports
• Organizational Process Assets
• Information Distribution Tools
Updates
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Inputs
• Stakeholder Register
• Stakeholder Management Strategy
Tools & Techniques
• Communication Methods
• Interpersonal Skills
• Management
Outputs
• Organizational Process Assets Updates
• Change Requests
Manage Stakeholders Expectations 10.4Manage Stakeholders Expectations 10.4
84
Strategy
• Project Management Plan
• Issue Log
• Change Log
• Organizational Process Assets
• Management Skills
Requests
• Project Management Plan Updates
• Project Document Updates
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Inputs
• Stakeholder Register
• Stakeholder Management Strategy
Tools & Techniques
• Communication Methods
• Interpersonal Skills
• Management
Outputs
• Organizational Process Assets Updates
• Change Requests
Report Performance 10.5Report Performance 10.5
85
Strategy
• Project Management Plan
• Issue Log
• Change Log
• Organizational Process Assets
• Management Skills
Requests
• Project Management Plan Updates
• Project Document Updates
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Plan Risk Management
(11.1)
Identify Risks (11.2)
Perform Qualitative Risk Analysis (11.3)
Project Risk Management Overview Project Risk Management Overview ––
Chapter 11Chapter 11
86
Perform Quantitative Risk
Analysis (11.4)
Monitor and Control Risks
(11.6)
Plan Risk Responses (11.5)
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Project Risk ManagementProject Risk Management
• Project risk management
includes the processes
concerned with conducting risk
management planning,
identification, analysis,
responses, and monitoring and
control on a project; (PMBOK 4th
Ed, P. 273).
87
Ed, P. 273).
– The objectives of project risk
management are to
• Increase the probability and
impact of positive events
• Decrease the probability
and impact of negative
events
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What is Risk?What is Risk?
• Project Risk is an uncertain event or condition that
can have a positive or negative affect on the
project objective.
• It includes both threats to the project objective as
well as opportunities to improve on the objective
88
well as opportunities to improve on the objective
• It’s origins are in the uncertainty that is in all
projects.
Can anyone give me an example of a positive risk?
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Inputs
•Project Scope Statement
•Cost Management Plan
•Schedule Management Plan
Tools & Techniques
•Planning Meetings and Analysis
Outputs
•Risk Management Plan
Plan Risk Management 11.1Plan Risk Management 11.1
89
Management Plan
•Communications Management Plan
•Enterprise Environmental Factors
•Organizational Process Assets
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Inputs
• Risk Management Plan
• Activity Cost Estimates
• Activity Duration Estimates
• Scope Baseline
• Stakeholder Register
Tools & Techniques
• Documentation Reviews
• Information Gathering Techniques
• Checklist Analysis
• Assumptions Analysis
Outputs
• Risk Register
Identify Risks 11.2Identify Risks 11.2
90
• Stakeholder Register
• Cost Management Plan
• Quality Management Plan
• Project Documents
• Enterprise Environmental Factors
• Organizational Process Assets
• Assumptions Analysis
• Diagramming Techniques
• SWOT Analysis
• Expert Judgment
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Identify Risks 11.2Identify Risks 11.2
• Developing a list of what
could go wrong – within
reason (but seriously,
dude, the rain will never
get that bad)
91
get that bad)
– Risk Register
• List of identified risks
• List of potential
responses
• Root causes of the risk
• Updated risk categories
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Identify Risks 11.2Identify Risks 11.2
• Technology
• Contractor capability
• Regulations
• Number of participants
• Resource skill level
• Funding
• Time
• Interfaces
• Environment issues
• Political issues
• Labor productivity
92
• Funding
• Site location, ownership
• Safety
• Errors and omissions
• Labor productivity
• Quality requirements
• Magnitude of
assumptions and
constraints
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Inputs
•Risk Register
•Risk management Plan
•Project Scope Statement
Tools & Techniques
•Risk Probability and Impact Assessment
•Probability and Impact matrix
Outputs
•Risk Register Updates
Perform Qualitative Risk Analysis 11.3 Perform Qualitative Risk Analysis 11.3
93
Statement
•Organizational Process Assets
Impact matrix
•Risk Data Quality Assessment
•Risk Categorization
•Risk Urgency Assessment
•Expert Judgment
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Risk ScoreRisk Score
EventProbability of Occurrence
Impact of Occurrence
Threat or
Opportunity Risk Score
Risk A 0.60 0.20 0.12
94
Risk A 0.60 0.20 0.12
Risk B 0.40 0.80 0.32
Risk C 0.20 0.20 0.04
Risk D 0.60 1.00 0.60
Risk E 0.50 0.50 0.25
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Probability and Impact MatrixProbability and Impact Matrix
Proba
1.00 0.20 0.40 0.60 0.80 1.00
0.80 0.16 0.32 0.48 0.64 0.80
0.60 0.12 0.24 0.36 0.48 0.60
95
Impact
ability
0.60 0.12 0.24 0.36 0.48 0.60
0.40 0.08 0.16 0.24 0.32 0.40
0.20 0.04 0.08 0.12 0.16 0.20
0.20 0.40 0.60 0.80 1.00
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Inputs
• Risk Register
• Risk management Plan
• Cost
Tools & Techniques
• Data Gathering and Representation Techniques
• Quantitative
Outputs
• Risk Register Updates
Perform Quantitative Risk Analysis 11.4Perform Quantitative Risk Analysis 11.4
96
• Cost Management Plan
• Schedule Management Plan
• Organizational Process Assets
• Quantitative Risk Analysis and Modeling Techniques
• Expert Judgment
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Inputs
• Risk Register
• Risk Management Plan
Tools & Techniques
• Strategies for Negative Risks or Threats
• Strategies for Positive Risks
Outputs
• Risk Register Updates
• Risk-Related Contract Decisions
Plan Risk Responses 11.5Plan Risk Responses 11.5
97
Positive Risks or Opportunities
• Contingent Response Strategies
• Expert Judgment
Decisions
• Project Management Plan Updates
• Project Document Updates
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Plan Risk Responses 11.5Plan Risk Responses 11.5
� We know something is going to happen.
› We’re not sure when but we know it will hurt when it happens
�So what are we going to do when the risk event occurs
› Make it “hurt” less – Mitigate
› Make it go away faster – Mitigate
98
› Make it go away faster – Mitigate
› Make it someone else’s problem – Transfer
› Don’t do the thing that is most likely to cause it – Avoid
› Suffer the pain – Acceptance
�Have a plan – Contingency response strategy
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Inputs
• Risk Register
• Project Management Plan
• Work
Tools & Techniques
• Risk Assessment
• Risk Audits
• Variance and Trend Analysis
• Technical
Outputs
• Risk Register Updates
• Organizational Process Assets Updates
Monitor & Control Risks 11.6Monitor & Control Risks 11.6
99
• Work Performance Information
• Performance Reports
• Technical Performance Measurement
• Reserve Analysis
• Status Meetings
Updates
• Change requests
• Project Management Plan Updates
• Project Documents Updates
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Monitor & Control Risks 11.6Monitor & Control Risks 11.6• We’ve figured it all out, we
have a plan, now its time to
watch, observe, and be
ready to act
– Identify, analyze and plan for
new risks
– Monitor triggers to see if a
100
– Monitor triggers to see if a
risk event has occurred
– Monitor the execution of our
risk response plans to make
sure that they really are
having the intended effect
– Determine if we need to
change how we are
managing risk
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Plan Procurements (12.1)
Conduct Procurements (12.2)
Project Procurement Management Project Procurement Management
Overview Overview –– Chapter 12Chapter 12
101
Administer Procurements (12.3)
Close Procurements (12.4)
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What is a Contract?What is a Contract?
• A contract is a legally binding
agreement between two or
more parties
– Non-verbal
– Verbal
102
– Verbal
– Written
• A contract has certain key
elements
– Offer
– Consideration
– Acceptance
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Inputs
• Scope baseline
• Requirements Documentation
• Teaming Agreements
• Risk Register
• Risk-Related Contract Decisions
Tools & Techniques
• Make-or-Buy Analysis
• Expert Judgment
• Contract Types
Outputs
• Procurement Management Plan
• Procurement Statements of Work
• Make-or-Buy Decisions
• Procurement Documents
Plan Procurements 12.1Plan Procurements 12.1
103
Decisions
• Activity Resource Requirements
• Project Schedule
• Activity Cost Estimates
• Cost Performance Baseline
• Enterprise Environmental Factors
• Organizational Process Assets
Documents
• Source Selection Criteria
• Change Requests
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Contract types Contract types –– Fixed PriceFixed Price
� Firm Fixed Price (FFP)
� Most commonly used contract type
� Any cost increase is the responsibility of the seller
� Fixed Price Incentive Fee (FPIF)
� Gives buyer and seller some flexibility
� All costs above the price ceiling are the responsibility of the
104
� All costs above the price ceiling are the responsibility of the
seller
� Fixed Price with Economic Price Adjustment (FP-EPA)
� Used when period spans a considerable period of years
� Protects both buyer and seller from external conditions
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Contract types Contract types –– Cost ReimbursableCost Reimbursable
� Cost Plus Fixed Fee (CPFF)
� Seller is reimbursed for allowable costs for performing work
� Received a fixed fee payment calculated as a % of initial estimated project costs
� Cost Plus Incentive Fee (CPIF)
� Seller is reimbursed for allowable costs for performing work
105
� Seller is reimbursed for allowable costs for performing work
� Received a predetermined incentive fee based on achieving certain performance objectives
� Cost Plus Award Fee (CPAF)
� Seller is reimbursed for all legitimate costs
� Majority of fee is earned based on satisfaction of performance criteria defined in contract
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Contract types Contract types –– Time and MaterialsTime and Materials
� Hybrid of both cost-reimbursable and
fixed-price contracts
� Resemble cost-reimbursable
�can be left open ended and increase in
106
�can be left open ended and increase in
contract value
• Resemble fixed unit price arrangements
�when specified in contract not-to-exceed
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Inputs
• Project Management Plan
• Procurement Documents
• Source Selection Criteria
Tools & Techniques
• Bidder Conferences
• Proposal Evaluation Techniques
• Independent Estimates
• Expert Judgment
Outputs
• Selected Sellers
• Procurement Contract Award
• Resource Calendars
• Change Requests
• Project
Conduct Procurement 12.2Conduct Procurement 12.2
107
Criteria
• Qualifies Seller List
• Seller Proposals
• Project Proposals
• Make-or-Buy Decisions
• Teaming Agreements
• Organizational Process Assets
• Expert Judgment
• Advertising
• Internet Search
• Procurement Negotiations
• Project Management Plan Updates
• Project Document Updates
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Inputs
• Procurement Documents
• Project Management Plan
• Contract
• Performance Reports
Tools & Techniques
• Contract Change Control System
• Procurement Performance Reviews
• Inspections and Audits
Outputs
• Procurement Documentation
• Organizational Process assets Updates
• Change Requests
Administer Procurements 12.3Administer Procurements 12.3
108
• Performance Reports
• Approved Change Requests
• Work Performance Information
Audits
• Performance Reporting
• Payment Systems
• Claims Administration
• Records Management System
• Change Requests
• Project Management Plan Updates
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Inputs
• Project Management Plan
Tools & Techniques
• Procurement Audits
• Negotiated
Outputs
• Closed Procurements
• Organizational
Close Procurements 12.4Close Procurements 12.4
109
Plan
• Procurement Documentation
• Negotiated Settlements
• Records Management System
• Organizational Process assets Updates
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Questions???
110Rights Reserved 110