Training program on

Computer based Project Management Using MS Project 2010

Day 2

The Project Management Knowledge Areas

The Project Management Knowledge Areas, organizes the 44 project management processes from the Project Management Process Groups into nine Knowledge Areas, as described below. Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management

Project Human Resource Management

Project Communications Management Project Risk Management

Project Procurement Management

These processes are aggregated into five groups, defined as the Project Management Process Groups:
Initiating Process Group. Defines and authorizes the project or a project phase. Planning Process Group. Defines and refines objectives, and plans the course of action required to attain the objectives and scope that the project was undertaken to address. Executing Process Group. Integrates people and other resources to carry out the project management plan for the project. Monitoring and Controlling Process Group. Regularly measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectives. Closing Process Group. Formalizes acceptance of the product, service or result and brings the project or a project phase to an orderly end.

Initiating Process Group

The Initiating Process Group consists of the processes that facilitate the formal authorization to start a new project or a project phase.
1. Develop Project Charter
2. Identify Stakeholders

Planning Process Group

The project management team uses the Planning Process Group and its constituent processes and interactions to plan and manage a successful project for the organization. The Planning Process Group includes the following project management processes:
1. Develop Project Management Plan 11. Determine Budget

2. Collect Requirements
3. Define Scope 4. Create WBS 5. Define Activities

12. Plan Quality

13. Develop Human Resource Plan 14. Plan Communications 15. Plan Risk Management

6. Sequence Activities
7. Estimate Activity Resources 8. Estimate Activity Durations 9. Develop Schedule

16. Identify Risks

17. Perform Qualitative Risk Analysis 18. Perform Quantitative Risk Analysis 19. Plan Risk Responses

10. Estimate Costs

20. Plan Procurements

Executing Process Group

The Executing Process Group consists of the processes used to complete the work defined in the project management plan to accomplish the project's requirements. The project team should determine which of the processes are required for the team's specific project. This Process Group involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan.
1. Direct and Manage Project Execution 2. Perform Quality Assurance 3. Acquire Project Team

4. Develop Project Team

5. Manage Project Team 6. Distribute Information 7. Manage Stakeholder Expectations

8. Conduct Procurements

Monitoring and Controlling Process Group

The Monitoring and Controlling Process Group consists of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project. The project team should determine which of the processes are required for the team's specific project. The key benefit of this Process Group is that project performance is observed and measured regularly to identify variances from the project management plan. The Monitoring and Controlling Process Group also includes controlling changes and recommending preventive action in anticipation of possible problems.
1. Monitor and Control Project Work 2. Perform Integrated Change Control 3. Verify Scope 6. Control Costs 7. Perform Quality Control 8. Report Performance 9. Monitor and Control Risks 10. Administer Procurements

4. Control Scope
5. Control Schedule

Closing Process Group

The Closing Process Group includes the processes used to formally terminate all activities of a project or a project phase, hand off the completed product to others or close a cancelled project. This Process Group, when completed, verifies that the defined processes are completed within all the Process Groups to close the project or a project phase, as appropriate, and formally establishes that the project or project phase is finished.
1. Close Project or Phase 2. Close Procurements

Now we will discuss the Body of Knowledge

Project Integration Management

The Project Integration Management Knowledge Area includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups. In the project management context, integration includes characteristics of unification, consolidation, articulation, and integrative actions that are crucial to project completion, successfully meeting customer and other stakeholder requirements, and managing expectations. The integrative project management processes include: Develop Project Charter Develop Project management Plan Direct and Manage Project Execution Monitor and Control Project Work Perform Integrated Change Control

Close Project or Phase

1 Develop Project Charter The process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders needs and expectations.

2 Develop Project management Plan

The process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.

3 Direct and manage Project execution The process of performing the work defined in the project management plan to achieve the projects objectives.

4 monitor and Control Project work The process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.

5 Perform Integrated Change Control The process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and the project management plan.

6 Close Project or Phase The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.

Project Scope Management

Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Project scope management is primarily concerned with defining and controlling what is and is not included in the project. In the project context, the term scope can refer to: Product scope. The features and functions that characterize a product, service, or result Project scope. The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. Collect Requirements

Define Scope
Create WBS Verify Scope Control Scope

1 Collect Requirements

The process of defining and documenting stakeholders needs to meet the project objectives.

2 Define Scope The process of developing a detailed description of the project and product.

3 Create WBS

The process of subdividing project deliverables and project work into smaller, more manageable components.

Using the Work Breakdown Structure to Plan a Project The most useful tool for project planning is the Work Breakdown Structure (WBS). The idea behind the WBS is simple: You can subdivide a complicated task into smaller tasks, until you reach a level that cannot be further subdivided. At that point, it is usually easier to estimate how long the small task will take and how much it will cost to perform than.

Note that we do not worry about the sequence in which work is performed when we do a WBS. That will be worked out when we develop a schedule.

WBS level
The typical WBS has three to six levels. It is, of course, possible to have projects that require a lot more levels.

Guidelines for Developing the WBS

One important question in constructing a WBS is When do you stop breaking down the work? The general guideline is that you stop when you reach a point where either you can estimate time and cost to the desired degree of accuracy or the work will take an amount of time equal to the smallest units you want to schedule. If, for instance, you want to schedule to the nearest day, you break down the work to the point where tasks take about a day to perform. If you are going to schedule to the nearest hour, then you stop when task durations are in that range. Remember the rule that the people who must do the work should participate in planning it? That applies here. Usually a core group identifies top-level parts of the WBS; those parts are further refined by other members of the team and then integrated to obtain the entire WBS.

4 Verify Scope The process of formalizing acceptance of the completed project deliverables.

5 Control Scope The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

Project Time Management

Project Time Management includes the processes required to accomplish timely completion of the project. The Project Time Management processes include the following: Define Activities Sequence Activities Estimate Activity Resources

Estimate Activity Durations

Develop Schedule Control Schedule

1 Define Activities The process of identifying the specific actions to be performed to produce the project deliverables.

2 Sequence Activities The process of identifying and documenting relationships among the project activities.

3 Estimate Activity Resources The process of estimating the type and quantities of material, people, equipment, or supplies required to perform each activity.

4 Estimate Activity Durations The process of approximating the number of work periods needed to complete individual activities with estimated resources.

Estimating Time, Costs, and Resources Once the work is broken down, you can estimate how long it will take.

5 Develop Schedule The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

Scheduling Techniques
1. Ensure that all activities are planned for 2. Their order of performance is accounted for 3. The activity time estimates are recorded 4. The overall project time is developed

Scheduling Techniques
Gantt chart Critical Path Method (CPM) Program Evaluation and Review Technique (PERT)

A Simple Gantt Chart

J
Design

Time A M J

Prototype
Test Revise Production

PERT and CPM

Network techniques Developed in 1950s
CPM by DuPont for chemical plants (1957) PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)

Consider precedence relationships and interdependencies Each uses a different estimate of activity times

Six Steps PERT & CPM

1. Define the project and prepare the work breakdown structure 2. Develop relationships among the activities - decide which activities must precede and which must follow others 3. Draw the network connecting all of the activities

Six Steps PERT & CPM

4. Assign time and/or cost estimates to each activity 5. Compute the longest time path through the network this is called the critical path 6. Use the network to help plan, schedule, monitor, and control the project

Variability in Activity Times

CPM assumes we know a fixed time estimate for each activity and there is no variability in activity times PERT uses a probability distribution for activity times to allow for variability

Variability in Activity Times

Three time estimates are required
Optimistic time (a) if everything goes according to plan Pessimistic time (b) assuming very unfavorable conditions Most likely time (m) most realistic estimate

EXTENSIONS TO PERT/CPM

Precedence Diagramming
Finish-to-start linkage Start-to-start linkage Finish-to-finish linkage Start-to-finish linkage

 Graphical Evaluation and Review Technique (GERT)

combines flowgraphs, probabilistic networks, and decision trees allows loops back to earlier events and probabilistic branching

6 Control Schedule

The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.

Project Cost Management

Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. Cost Estimating Cost Budgeting Cost Control

1 Estimate Costs The process of developing an approximation of the monetary resources needed to complete project activities.

2 Determine Budget The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

3 Control Costs The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.

Project Quality Management

Project Quality Management processes include all the 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. It implements the quality management system through the policy, procedures, and processes of quality planning, quality assurance, and quality control, with continuous process improvement activities conducted throughout, as appropriate.
The Project Quality Management processes include the following: Quality Planning Perform Quality Assurance Perform Quality Control

Modern quality management complements project management. For example, both disciplines recognize the importance of: Customer satisfaction. Understanding, evaluating, defining, and managing expectations so that customer requirements are met. This requires a combination of conformance to requirements (the project must produce what it said it would produce) and fitness for use (the product or service must satisfy real needs). Prevention over inspection. The cost of preventing mistakes is generally much less than the cost of correcting them, as revealed by inspection. Management responsibility. Success requires the participation of all members of the team, but it remains the responsibility of management to provide the resources needed to succeed. Continuous improvement. The plan-do-check-act cycle is the basis for quality improvement. In addition, quality improvement initiatives undertaken by the performing organization, such as TQM and Six Sigma, can improve the quality of the project's management as well as the quality of the project's product. Process improvement models include Malcolm Baldrige, CMM, and CMMISM

The word quality has many meanings:

A degree of excellence
Conformance with requirements The totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs Fitness for use Fitness for purpose Freedom from defects imperfections or contamination

Delighting customers

Customer
Organization that receives a product or service includes: Purchaser, consumer, client, end user, retailer or beneficiary

Employees
Employees may not be interested in the products and services, but are interested in the conditions in which they are required to work. Employees are stakeholders because they can withdraw their labour.

Stakeholder.
The individuals and constituencies that contribute, either voluntarily or involuntarily, to an organizations wealth-creating capacity and activities, and that are therefore its potential beneficiaries and/or risk bearers.

Suppliers
Suppliers are interested in the success of the organization because it may in turn lead to their success. However, suppliers are also stakeholders because they can withdraw their patronage. They can choose their customers. If you treat your suppliers badly such as delaying payment of invoices for trivial mistakes, you may find they terminate the supply at the first opportunity putting your organization into a difficult position relative to its customer commitments.

Quality
Quality can be defined as the degree to which a set of inherent characteristics fulfils a need or expectation that is stated, general

implied or obligatory.

Quality characteristics
Any feature or characteristic of a product or service that is needed to satisfy customer needs or achieve fitness for use is a quality characteristic. Accessibility Availability Appearance Adaptability Cleanliness Consumption Durability Disposability Emittance Flammability Flexibility Functionality Interchangeability Maintainability Odour Operability Portability Producibility Reliability Reparability Safety Security Size Susceptibility Storability Strength Taste Testability Traceability Toxicity Transportability Vulnerability Weight

Service quality characteristics

Accessibility Accuracy Courtesy Comfort Competence Credibility Dependability Efficiency Effectiveness Flexibility Honesty Promptness Responsiveness Reliability Security

Quality parameters
Quality of design is the extent to which the design reflects a product or service that satisfies customer needs and expectations. All the necessary characteristics should be designed into the product or service at the outset. Quality of conformance is the extent to which the product or service conforms to the design standard. The design has to be faithfully reproduced in the product or service. Quality of use is the extent by which the user is able to secure continuity of use from the product or service. Products need to have a low cost of ownership, be safe and reliable, maintainable in use and easy to use.

Dimensions of quality
The business quality dimension. This is the extent to which the business serves the needs of all interested parties and is the outward facing view of the organization. The interested parties are not only interested in the quality of particular products and services but judge organizations by their potential to create wealth, the continuity of operations, the sustainability of supply, care of the environment, and adherence to health, safety and legal regulations. The product quality dimension. This is the extent to which the products and services provided meet the needs of specific customers. The organization quality dimension. This is the extent to which the organization maximizes its efficiency and effectiveness and is the inward facing view of the organization. Efficiency is linked with productivity which itself is linked with the motivation of personnel and the capability and utilization of resources. Effectiveness is linked with the utilization of knowledge focusing on the right things to do. This directly affects all aspects of quality.

Achieving sustaining and improving quality

Several methods have evolved to achieve, sustain and improve quality; they are quality control, quality improvement and quality assurance, which collectively are known as quality management.

Quality management
There are two schools of thought on quality management.

1 What are you trying to do? 2 How do you make it happen? 3 How do you know its right? 4 How do you know its the best way of doing it? 5 How do you know its the right thing to do?
1 How do you know what is needed? 2 What could affect your ability to do it right? 3 What checks are made to verify achievement? 4 How do you ensure the integrity of these checks? 5 What action is taken to prevent a recurrence of failure?

Customer focus
Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations.

Inward seeking focus to Outward seeking focus

Leadership
Leaders establish unity of purpose and direction for the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organizations objectives.

Aggravation to Motivation

Involvement of people
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organizations benefit.

Operate to Cooperate

Process approach
A desired result is achieved more efficiently when related resources and activities are managed as a process.

Procedure approach to Process approach

System approach to management

Identifying, understanding and managing interrelated processes as a system contributes to the organizations effectiveness and efficiency in achieving its objectives.

Functional approach to Systems approach

Continual improvement
Continual improvement of the organizations overall performance should be a permanent objective of the organization.

Error correction to Course correction

Factual approach to decision making

Effective decisions are based on the analysis of data and information.

Subjective to Objective

Mutually beneficial supplier relationships

An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.

Adversarial approach to Alliance approach

The Project Quality Management processes include the following: Quality Planning - identifying which quality standards are relevant to the project and determining how to satisfy them. Perform Quality Assurance - applying the planned, systematic quality activities to ensure that the project employs all processes needed to meet requirements. Perform Quality Control - monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

Modern quality management complements project management. For example, both disciplines recognize the importance of:
Customer satisfaction. Understanding, evaluating, defining, and managing expectations so that customer requirements are met. This requires a combination of conformance to requirements (the project must produce what it said it would produce) and fitness for use (the product or service must satisfy real needs). Prevention over inspection. The cost of preventing mistakes is generally much less than the cost of correcting them, as revealed by inspection. Management responsibility. Success requires the participation of all members of the team, but it remains the responsibility of management to provide the resources needed to succeed. Continuous improvement. The plan-do-check-act cycle is the basis for quality improvement. In addition, quality improvement initiatives undertaken by the performing organization, such as TQM and Six Sigma, can improve the quality of the project's management as well as the quality of the project's product. Process improvement models include Malcolm Baldrige, CMM, and CMMISM.

Quality control (QC)

Quality management systems

ISO 9000 defines a quality management as a set of interrelated or interacting processes that achieve the quality policy and quality objective.

Safety systems to serve safety objectives Environmental systems to serve environmental objectives Security systems to serve security objectives Human resource systems to serve human resource objectives Marketing systems to serve marketing objectives Innovation systems to serve innovation objectives Financial systems to serve financial objectives

The QMS is not part of the management system IT IS the management system

Process management
The 1994 version of ISO 9000 created a notion that quality management was about following procedures. The procedural approach is about how you do things and processes are about what you do. The procedural approach is about doing a task, conforming to the rules, doing what we are told to do. The process approach is about, understanding needs, doing whatever it takes to make it happen, finding the best way of fulfilling these needs even if it means changing the way we do our job.

ISO 9000 Quality Management Systems

To ensure that the necessary quality processes are in place, quality management systems (QMS), which may well cover the whole spectrum of an organization, have to be established and regularly monitored. Guidelines for quality management and quality assurance standards are published by BSI in the ISO 9000, 9001 and 9004 series of standards.
ISO 9000 Quality management systems Fundamentals and vocabulary ISO 9001 Quality management systems Requirements ISO 9004 Quality management systems Guidelines for performance improvements

Quality Planning: Tools and Techniques

.1 Cost-Benefit Analysis .2 Benchmarking .3 Design of Experiments .4 Cost of Quality (COQ) .5 Additional Quality Planning Tools

.1 Cost-Benefit Analysis Quality planning must consider cost-benefits tradeoffs. The primary benefit of meeting quality requirements is less rework, which means higher productivity, lower costs, and increased stakeholder satisfaction. The primary cost of meeting quality requirements is the

expense associated with Project Quality Management activities.

.2 Benchmarking

Benchmarking involves comparing actual or planned project practices to those of other projects to generate ideas for improvement and to

provide a basis by which to measure performance. These other

projects can be within the performing organization or outside of it, and can be within the same or in another application area.

.3 Design of Experiments Design of experiments (DOE) is a statistical method that helps identify which factors may influence specific variables of a product or process under development or in production. It also plays a role in the optimization of products or processes. An example is where an organization can use DOE to reduce the sensitivity of product performance to sources of variations caused by environmental or manufacturing differences. The most important aspect of this technique is that it provides a statistical framework for systematically changing all of the important factors, instead of changing the factors one at a time. The analysis of the experimental data should provide the optimal conditions for the product or process, highlighting the factors that influence the results, and revealing the presence of interactions and synergisms among the factors. For example, automotive designers use this technique to determine which combination of suspension and tires will produce the most desirable ride characteristics at a reasonable cost.

.4 Cost of Quality (COQ) Quality costs are the total costs incurred by investment in preventing nonconformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework). Failure costs are often categorized into internal and external. Failure costs are also called cost of poor quality.

The total cost of curing a problem once it has occurred is generally higher than the cost of preventing the problem in the first place. It is apparent that the potential savings between the cost of defects and the cost of prevention are great. Generally, many of the costs of defects are not recognized in an organized way to reflect their true cost. This is because when some of the costs of these defects are recognized, the project has been turned over to a maintenance and support function. The project team may have been dissolved, and the members may be working on other projects.

Costs of Prevention
Education and training of project team and stakeholders Inspection and testing of the internal and external deliverables of the project Improved designs for quality purposes Quality staff Quality audits Quality plan and execution

Costs of Defects
Scrap Rework Repair Replacement of defective parts and inventory Repairs after the delivery of the product Loss of future business with the stakeholder Legal issues for nonconformance Liability for defect Risk to life and property

The PMBOK Project Quality management system

1 Plan Quality
The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.

2 Perform Quality Assurance The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

3 Perform Quality Control The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

Quality Control: Tools and Techniques

.1 Cause and Effect Diagram .2 Control Charts .3 Flowcharting .4 Histogram .5 Pareto Chart .6 Run Chart .7 Scatter Diagram .8 Statistical Sampling .9 Inspection .10 Defect Repair Review .11 Checklists .12 Kaizen .13 Benchmarking The first seven of these are known as the Seven Basic Tools of Quality.

.1 Cause and Effect Diagram

Cause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams, illustrate how various factors might be linked to potential problems or effects.

.2 Control Charts
A control chart's purpose is to determine whether or not a process is stable or has predictable performance. Control charts may serve as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition.

.3 Flowcharting
A flowchart is a quality management tool that allows the team to look more closely at certain processes, to identify the events and steps in the processes, and to show places for data collection and possible interdependency and points of complexity. Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process. There are many styles, but all process flowcharts show activities, decision points, and the order of processing.

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

.5 Pareto Chart
A Pareto chart is a specific type of histogram, ordered by frequency of occurrence, which shows how many defects were generated by type or category of identified cause. The Pareto technique is used primarily to identify and evaluate nonconformities. In Pareto diagrams, rank ordering is used to guide corrective action. The project team should take action to fix the problems that are causing the greatest number of defects first. Pareto diagrams are conceptually related to Pareto's Law, which holds that a relatively small number of causes will typically produce a large majority of the problems or defects. This is commonly referred to as the 80/20 principle, where 80 percent of the problems are due to 20 percent of the causes. Pareto diagrams also can be used to summarize all types of data for 80/20 analyses.

.6 Run Chart
A run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time. Trend analysis is performed using run charts. Trend analysis involves using mathematical techniques to forecast future outcomes based on historical results. Trend analysis is often used to monitor:
Technical performance. How many errors or defects have been identified, how many remain uncorrected? Cost and schedule performance. How many activities per period were completed with significant variances?

.7 Scatter Diagram
A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points are to a diagonal line, the more closely they are related.

.8 Statistical Sampling
Statistical sampling involves choosing part of a population of interest for inspection (for example, selecting ten engineering drawings at random from a list of seventy- five). Appropriate sampling can often reduce the cost of quality control. There is a substantial body of knowledge on statistical sampling; in some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques.

.9 Inspection
An inspection is the examination of a work product to determine whether it conforms to standards. Generally, the results of an inspection include measurements. Inspections can be conducted at any level. For example, the results of a single activity can be inspected, or the final product of the project can be inspected. Inspections are also called reviews, peer reviews, audits, and walkthroughs. In some application areas, these terms have narrow and specific meanings. Inspections are also used to validate defect repairs.

.10 Defect Repair Review

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

.11 Checklists
Checklists are a sample tool that is used to keep from overlooking items of importance. A checklist is really just an instruction sheet for an inspector to use. The items in the checklist should be significant items. If a checklist is seen as a superfluous document, it will not be used.

.12 Kaizen
Kaizen is one of the many quality techniques that come to us from the work of the Japanese. The Japanese word for continuous improvement is kaizen. Using this method, the managers as well as the workers and everyone else are continuously on the lookout for opportunities to improve quality. Thus the quality of a process improves in small increments on a continuous basis. In this kaizen way of doing things, even the processes that are operating without problems are continuously under scrutiny. A process is observed to be making acceptable parts, but is seen to be slow, or there is an opportunity for even greater quality than is required.

.13 Benchmarking
Benchmarking is the process of comparing the performance of a current process to that of another similar process to determine the differences between them. If a machine can manufacture two hundred parts an hour and a new machine is compared to the old machine, the benchmark for the existing process on the old machine is two hundred parts per hour.

Project Human Resource Management

Project Human Resource Management includes the processes that organize and manage the project team. The project team is comprised of the people who have assigned roles and responsibilities for completing the project. While it is common to speak of roles and responsibilities being assigned, team members should be involved in much of the project's planning and decision-making. Early involvement of team members adds expertise during the planning process and strengthens commitment to the project. The type and number of project team members can often change as the project progresses. Project team members can be referred to as the project's staff. The Project Human Resource Management processes include the following: Human Resource Planning Acquire Project Team Develop Project Team Manage Project Team

1 Develop Human Resource Plan The process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.

2 Acquire Project Team The process of confirming human resource availability and obtaining the team necessary to complete project assignments.

3 Develop Project Team The process of improving the competencies, team interaction, and the overall team environment to enhance project performance.

4 Manage Project Team The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.

Project Communications Management

Project Communications Management is the Knowledge Area that employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The Project Communications Management processes provide the critical links among people and information that are necessary for successful communications. Project managers can spend an inordinate amount of time communicating with the project team, stakeholders, customer, and sponsor. Everyone involved in the project should understand how communications affect the project as a whole. The Project Communications Management processes include the following: Identify Stakeholders Plan Communications Distribute Information Manage Stakeholder Expectations Report Performance

1 Identify Stakeholders The process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success.

2 Plan Communications The process of determining the project stakeholder information needs and defining a communication approach.

3 Distribute Information

The process of making relevant information available to project stakeholders as planned.

4 Manage Stakeholder Expectations The process of communicating and working with stakeholders to meet their needs and addressing issues as they occur.

5 Report Performance The process of collecting and distributing performance information, including status reports, progress measurements, and forecasts..

Project Risk Management

Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective, such as time, cost, scope, or quality. Project Risk Management processes include the following: Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Monitor and Control Risks

Risks
Every day we take risks.

If we cross the street we risk being run over. If we go down the stairs, we risk missing a step and tumbling down. When we are moving in roads, there is a bomb risk.
Taking risks is such a common occurrence. Life would be unbearable if we constantly worried whether we should or should not carry out a certain task or take an action, because there is a risk associated with it.

Commonly what we do about these risks ???

Project Risks
With projects, however, this luxury of ignoring the risks cannot be permitted. By their very nature, because projects are inherently unique and often incorporate new techniques and procedures, they are risk prone and risk has to be considered right from the start.

It then has to be subjected to a disciplined regular review and investigative procedure known as risk management.

We will consider an example

A owner of a semi-detached house decides to replace part of his roof with solar panels to save on his hot water heating bill.

So what are the risks associated with this work ???

Risk 1 The installer may fall off the roof; Risk 2 The roof may leak after completion; Risk 3 The panels may break after installation; Risk 4 Birds may be foul the panels; Risk 5 The electronic controls may not work;

Risk 6 The heat recovered may not be sufficient to heat the water on a cold day;
Risk 7 It may not be possible to recover the cost if the house is sold within 23 years; Risk 8 The cost of the work will probably never pay for itself; Risk 9 The cost may escalate due to unforeseen structural problems.

These risks can all be managed as follows:

Risk 1 Employ a builder who is covered by insurance; Risk 2 Insist on a two-year guarantee for the work (at least two season cycles); Risk 3 Add the panel replacement to the house insurance policy; Risk 4 Provide access for cleaning (this may increase the cost); Risk 5 Ensure a control unit is used which has been proven for a number of years; Risk 6 Provide for an electric immersion heater for cold spells; Risk 7 Wait 3 years before selling the house; Risk 8 This is a risk one must accept if the work goes ahead, or Risk 8 Dont go ahead with the work; Risk 9 Persuade the neighbour in the adjoining house to install a similar system at the same time.

Worth of equipment = Rs. 1,000,000

Project Risks
Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective, such as time, cost, scope, or quality.
A risk may have one or more causes and, if it occurs, one or more impacts. If any uncertain events occurs, there may be an impact on the project cost, schedule, or performance. Project risk has its origins in the uncertainty that is present in all projects. Risk has two primary components for a given event: A probability (likelihood) of occurrence of that event Impact of the event occurring (amount at stake)

Risk = f (probability of occurrence, Impact)

Known risks and Unknown risks

Known risks are those that have been identified and analyzed, and it may be possible to plan for those risks using the processes described in this.
Unknown risks cannot be managed proactively, and a prudent response by the project team can be to allocate general contingency against such risks, as well as against any known risks for which it may not be cost-effective or possible to develop a proactive response.

Balance between threats and opportunities

Organizations perceive risk as it relates to threats to project success, or to opportunities to enhance chances of project success. Risks that are threats to the project may be accepted if the risk is in balance with the reward that may be gained by taking the risk.

TOLERANCE FOR RISK

With the risk averter, utility rises at a decreasing rate. In other words, when more money is at stake, the project managers satisfaction or tolerance diminishes. With a risk neutral position, utility rises at a constant rate. With the risk lover, the project managers satisfaction increases when more money is at stake (i.e., an increasing slope to the curve). A risk averter prefers a more certain outcome and will demand a premium to accept risk. A risk lover prefers the more uncertain outcome and may be willing to pay a penalty to take a risk.

To be successful, the organization should be committed to addressing the management of risk proactively and consistently throughout the project.

1 Plan Risk Management The process of defining how to conduct risk management activities for a project.

2 Identify Risks The process of determining which risks may affect the project and documenting their characteristics.

3 Perform Qualitative Risk Analysis The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.

4 Perform Quantitative Risk Analysis The process of numerically analyzing the effect of identified risks on overall project objectives.

5 Plan Risk Responses

The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.

6 Monitor and Control Risks The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

Project Procurement Management

Project Procurement Management includes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work. This chapter presents two perspectives of procurement. The organization can be either the buyer or seller of the product, service, or results under a contract. The Project Procurement Management processes include the following: Plan Procurements Conduct Procurements Administer Procurements Close Procurements

1 Plan Procurements The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.

2 Conduct Procurements The process of obtaining seller responses, selecting a seller, and awarding a contract.

3 Administer Procurements The process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

4 Close Procurements

The process of completing each project procurement.

Project Management Software

There are several popular packages for managing projects
Primavera MacProject Pertmaster VisiSchedule Time Line Microsoft Project

MS Project 2010

The Project 2007 Screen

Creating a New Project Plan

You can create a new project in three ways:
open a new, blank project; open a project template that contains sample tasks; open a project based on an existing project.

General project information

Start Date : Specify the start date for the project. Finish Date : Finish date for the project. Schedule from : Project start date or Project finish date. Current date : Set the current date.

Status date : Set a status date.

Calendar : Set the working calendar for your project. Priority : Assign a priority to your project.

Project Properties

Saving a project
Save as Type field Project 2007 (.mpp) Project 20002003: Template: Excel: Text: XML:

workspace

Calendars
There are four types of calendars : Base Calendar Project Calendar Resource Calendar Task Calendar

Base calendar: This is the calendar template that all other calendars are built on top of.
Three Base calendars are available: Standard calendar 24 Hours calendar Night Shift calendar

Base Calendar
Standard: The default setting. It sets a working day as 8 a.m.5 p.m. with an hour for lunch and a five-day, MondayFriday workweek. 24 Hours: Allows work to go on around the clock every day of the week.

Night Shift: Sets Sunday as a nonworking day, three shifts Tuesday through Friday, two shifts on Saturday, and one on Monday.

Setting a Project Calendar

Adjusting Working Hours

Setting a Project Calendar

Adjusting Working Days

Setting a Project Calendar

Creating a Project Calendar Selecting the Project Calendar

Setting calendar options

View the project Calendar

Tasks

Entering a Task List

You can create tasks by using a few different methods: Enter task data in a Gantt Chart view sheet pane. Enter data in a Task Information dialog box. Enter task data in Network Diagram view Enter task data in Calendar view

To create a task, you enter information such as Task name Task duration Task type Task priority Constraints for scheduling the task

Creating a task in Gantt Chart view

Enter data in a Task Information dialog box

Import tasks from Excel

Copy

Paste

Enter task data in Network Diagram view

Enter Task Data in Calendar view

Durations for a Task

A tasks duration is the amount of time you expect it will take to complete the task. Project can work with task durations that range from minutes to months. Depending on the scope of your project, youll probably want to work with task durations on the scale of hours, days, and weeks.

If you enter this abbreviation

It appears like this

And it means

m
h d w mo

min
hr day wk mon

minute
hour day week month

Estimating Durations for a Task

MS Projects cant tell you how long each task in your project will take. Thats up to each project manager to figure out.

Estimating the duration of tasks isnt a science. A tasks duration is usually based on your experience with similar tasks and your knowledge of the specifics of your project.
Deciding how finely to break down your tasks can affect how efficiently youre able to track progress on those tasks. The Project Management Institute provides a suggestion that task durations range from 4 to 80 hours, as a rule of thumb.

Organizing Tasks into Phases

The more tasks you have in a project, the more confusing things can become. Therefore, it's helpful to organize your tasks into phases, or groups of related tasks. In Project, phases are grouped by summary tasks. Tasks underneath the summary tasks are called subtasks. By organizing the tasks into phases, it's easier to tell how the tasks are related to each other. Project calculates the duration of a summary task by the duration of its subtasks. So if you change information in your subtasks, the duration of your summary task will change.

Custom Gantt Chart View

There are three distinct ways to format Gantt bars: Format whole categories of Gantt bars in the Bar Styles dialog box, which you can open by clicking the Bar Styles command on the Format menu. Format whole categories of Gantt bars using the Gantt Chart Wizard, which you can start by clicking the Gantt Chart Wizard command on the Format menu. This wizard contains a series of pages in which you select formatting options for the most commonly used Gantt bars on the Gantt chart. Use the Gantt Chart Wizard to step you through some of the formatting actions that you can perform in the Bar Styles dialog box. Format individual Gantt bars directly. The formatting changes you make have no effect on other bars in the Gantt chart. You can doubleclick a Gantt bar on the Gantt chart to view its formatting options, or click Bar on the Format menu.

Bar Styles

Gantt Chart Wizard

Format Bars

Entering a Milestone
Milestones is a task with no duration.

Priority of a Task
This field is there to help you enter your own ranking of the importance of tasks in your project. Setting a high or low priority on your task doesnt influence timing of the task at all. You can set the Priority field to set a priority from 0 (lowest) to 1000 (highest).

Recurring tasks
Some tasks occur again and again in a projects. They are considered as recurring tasks.

Interrupting a Task
If work on a task is interrupted, you can split the task to stop work and begin it again at a later date. A task can be split multiple times if necessary.

Entering a Deadline
Deadlines are very helpful in project management, because they help Project indicate whether a task has been completed on schedule. It's important to understand that setting a deadline doesn't affect how tasks are scheduled; instead, the deadline is more like an indicator of the scheduling status of the project.

Documenting Tasks
Task notes are a valuable way to add detailed descriptions about what needs to be done in a task. A task's notes are easily viewed by everyone in the project, so as project manager you don't have to repeat the same information.

Outline Codes for Tasks

Project can assign outline numbers to the tasks in your schedule based on the tasks level in the outline; the outline numbers help you identify, visually, each tasks hierarchical position in the outline.
Project Assign Outline Numbers

Options

Using Project Guide

Help