PMBOK Chapter 10

1

• PMBOK Chapter 10
• Communications

2
The Process Groups
(Arrows represent flow of information)
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
3
Mapping the Processes
4
Mapping the Processes (cont.)
5
10.1 Communications Planning
Tools Techniques
Outputs

• Communications Mgmt Plan

• Stakeholder Analysis

Determining the information and communications
needs of the stakeholders.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
6
Selected Communications Planning Inputs

• Communications Requirements
• Sum of the information required for the project
  stakeholders
• Type and format of information
• Communications Technology
• Technology used to transfer information back and
  forth among stakeholders. Communication factors
  that may affect projects
• Immediacy of the need for information
• Availability of Technology
• Expected project staffing
• Length of project

7
Communications Planning Tools and Techniques

• Stakeholder Analysis
• Develop methodical and logical view of their
  information needs
• KEY Dont waste time and resources on
  unnecessary information
• Understand what they are expecting
• Understand how they prefer to receive information
• Understand how and when they will need or use the
  information
• Avoid wasting resources. If a call will work,
  dont send a report

8
Communications Planning Outputs

• Communications Management Plan
• Method used to gather and store information
• Method used to determine distribution
  requirements.
• Type and format
• Level of detail
• Production schedule for the information
• Methods for accessing and approving
• Requirements for updating and refining the
  Communication Management Plan

9
10.2 Information Distribution
Tools Techniques

• Communication skills
• Info retrieval systems
• Info distribution systems

Making needed information available to project
stakeholders in a timely manner.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
10
Information Distribution Inputs

• Work Results Raw data to be processed for
  distribution and processed data
• Communication Management Plan Describes how the
  information will be distributed
• Project Plan Basic project information

11
Selected Information Distribution Tools and
Techniques

• Information Retrieval Systems
• Electronic databases
• Project Management Software
• Systems that give access to technical documents
  (engineering drawings,specifications.etc.)

12
Selected Information Distribution Tools and
Techniques

• Information distribution methods
• Formal written
• Complex problems, Project Plans, Charter
• Formal verbal
• Presentations, Speeches
• Informal written
• Memos, E-mail, Notes
• Informal verbal
• Meetings, Conversations
• Channels (Lines) of Communications N (N-1)/2
• i.e. with 10 people you have 10(10-1)/2 45
  lines

13
Selected Information Distribution Outputs

• Project Records
• Memos
• Correspondence
• Personal records

14
10.3 Performance Reporting
Collecting and disseminating performance
information
Tools Techniques
Outputs

• Performance Reports
• Change Requests

• Performance Reviews
• Variance Analysis
• Trend Analysis
• Earned Value Analysis
• Techniques

This Section is covered in PMBOK Cost and Time
Chapters
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
15
Performance Reporting

• This process includes
• Status reporting
• Describing where the project now stands
• Status related to schedule and budget metrics
• Progress reporting
• Describing what the project team has accomplished
• What is completed versus what is in progress
• Forecasting
• Predicting future project status and progress

16
10.4 Administrative Closure
Tools Techniques
Outputs

• Project Archives
• Project Closure
• Lessons Learned

• Performance Reporting Tools and Techniques
• Project Reports
• Project Presentations

Documenting project results to formalize
acceptance of the project results by the sponsor,
or customer
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
17
Administrative Closure Inputs

• Performance Measurement Documentation Review all
  documents relating to deliverables including
  those that establish the process for measurement
• Product Documentation Review product description
  documents (tech. specs., drawings, files, etc.)
  to ensure compliance
• Other Project Records Review other documents
  (contracts, formal correspondence, agreements,
  etc.)

18
Selected Administrative Closure Outputs

• Project archives
• Set of Indexed project records
• All official project information needs to be
  included
• Any project-specific information is important

19

• PMBOK Chapter 11 Project Risk Management

20
Mapping the Processes
21
Mapping the Processes (cont.)
22
The Planning Processes
Planning Processes
From theInitiatingProcesses
To theExecutingProcesses
From theControllingProcesses
23
Risk Management
Risk Uncertain event or condition that , if it
occurs, has a positive or negative effect on a
project objective.
24
11.1 Risk Management Planning
Tools Techniques
Outputs

• Risk Management Plan

• Planning meetings

The process of deciding how to approach and plan
the Risk Management activities for a project
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
25
Risk Management Planning Outputs

• Risk Management Plan includes
• Methodology defines approach, tools and data
  source
• Roles Responsibilities defines lead, support
  and team
• Timing How often will it be performed
• Scoring and interpretation
• Thresholds
• Reporting format
• Tracking content and format

look at http//www.risksig.com/
26
11.2 Risk Identification
Tools Techniques
Outputs

• Risks
• Triggers
• Inputs to other processes

• Documentation Reviews
• Information-gathering techniques
• Checklists
• Assumptions Analysis
• Diagramming Techniques

Identification involves determining which risks
might affect the project and documenting their
characteristics.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
27
Selected Risk Identification Inputs

• Risk Categories
• Technical, quality or performance risks
• Reliance on unproven or complex technology
• Project Management risk
• Poor allocation of time and resources
• Organizational
• Cost, time, and scope objectives that are
  internally inconsistent
• External Risk (next slide)

28
Selected Risk Identification Inputs (cont.)

• Internal Risks
• Lots of stakeholders
• Varied stakeholders
• Stakeholders approach
• Complex project
• Scope, Schedule and Cost
• Staffing, materials, equipment
• Innovative solutions
• Rushed results

• External risks
• Political
• Cultural
• Social
• Environmental
• Economic

29
Selected Risk Identification Tools and Techniques

• Information Gathering Techniques
• Brainstorming most frequently used
• Delphi Technique solicit ideas from experts,
  anonymously, using a questionnaire
• Interviewing Subject Matter Experts or other
  with experience with the same type of project or
  environment
• Strengths, Weaknesses, Opportunities and Threats
  (SWOT) Analysis

30
Selected Risk Identification Tools and Techniques
(cont.)

• Checklists
• Based on historical information from similar
  previous projects
• Quick and simple
• Assumptions analysis
• Explore validity of assumptions
• Diagramming techniques
• Cause and effect diagrams
• System or process flow charts
• Influence diagrams graphical representation of
  a problem showing
• Causal influences
• Time ordering of events, etc.

31
Selected Risk Identification Outputs

• Triggers also known as Risk Symptoms or Warning
  signs
• Milestones missed
• Cost or Schedule Variance of 10

32
11.3 Qualitative Risk Analysis
Tools Techniques
Inputs
Outputs

• Risk Probability and Impact
• Probability/Impact Risk Rating Matrix
• Project Assumptions Testing
• Data Precision Ranking

• Risk Management Plan
• Identified Risks
• Project Status
• Project Type
• Data Precision
• Scales of Probability and Impact
• Assumptions

• Overall Risk Ranking for the project
• List of Prioritized Risks
• List of Risks for Additional Analysis and
  Management
• Trends in Qualitative Risk Analysis Results

Process of assessing the impact and likelihood of
identified risks. This process prioritizes risks
according to their potential effect on project
objectives.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
33
Selected Qualitative Risk Analysis Tools and
Techniques

• Risk probability and impact - the likelihood that
  a risk will occur and the effect on project
  objectives if the risk occurs
• Probability/impact rating matrix

34
11.4 Quantitative Risk Analysis
Inputs
Outputs
Tools Techniques

• Risk Management Plan
• Identified Risks
• List of Prioritized Risks
• List of Risks for Additional Analysis
• Historical Information
• Expert Judgment
• Other planning inputs

• Prioritized List of Quantified Risk
• Probabilistic Analysis of the Project
• Probability of Achieving the Cost and Time
  Objectives
• Trends

• Interviewing
• Sensitivity Analysis
• Decision Tree analysis
• Simulation

Process aims to analyze numerically the
probability of each risk and its consequence on
the project objectives.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
35
Selected Quantitative Risk Analysis Tools and
Techniques

• Interviewing - Used to quantify the probability
  and consequences of risks on project objectives.
• Sensitivity Analysis Examines the extent to
  which the uncertainty of each project element
  affects the objective being examined when all
  other uncertain elements are held at their
  baseline values.
• Helps determine which risks have most potential
  impact

36
Selected Quantitative Risk Analysis Tools and
Techniques (cont.)

• Decision Tree Helps determine the implications
  of choosing different alternatives.
• Identifies the decisions with the greatest
  expected value.

SCHEDULE
Over P 0.20
5
According to historical data, each project has a
25 chance of actually completing over budget.
For project actually ended up over budget, 80
will be within time, while project within budget,
70 will be within time.
Over Budget .25
20
Within P 0.80
Within Budget .75
Over P 0.30
22.5
Within P 0.70
52.5
37
11.5 Risk Response Planning
Inputs
Outputs
Tools Techniques

• Risk Management Plan
• Identified Risks
• Risk Ranking of the Project
• Prioritized List of Quantified Risks
• Probabilistic Analysis of the Project
• Probability of Achieving the Cost and Time
  Objectives
• Trends
• Common risk Causes
• Risk Thresholds
• Risk Owners

• Risk Response Plan
• Residual Risks
• Secondary Risks
• Contractual Agreements
• Contingency
• Inputs to other processes

• Avoidance
• Mitigation
• Acceptance
• Transference

Process of developing options and determining
actions to enhance opportunities and reduce
threats to the projects objectives
38
Risk Response Planning Tools and Techniques

• Avoidance - Eliminate the threat by eliminating
  the cause
• Mitigation Affect the probability of the impact
  of the risk
• Acceptance - Do nothing and say if it happens,
  it happens
• Transference - Make another party responsible for
  the risk through allocation, purchasing of
  insurance, or outsourcing the work

39
Selected Risk Response Planning Output

• Risk Response Plan (also known as Risk
  Register) includes
• Identified risks
• Risk owners and assigned responsibilities
• Qualitative and quantitative analysis information
• Agreed responses (avoidance, transference,
  mitigation, or acceptance)
• Levels of residual risk remaining after risk
  response
• Specific actions to implement the chosen response
  strategy
• Budget and times for responses
• Contingency plans and fallback plans

40
11.6 Risk Monitoring and Control
Outputs
Techniques

• Workaround Plans
• Corrective Actions
• Project Change Requests
• Updates to Risk Response Plan and supporting
  documents

• Project Risk Response Audits
• Periodic Project Risk Reviews
• Earned Value Analysis
• Technical Performance Measurement
• Additional Risk Response Planning

Process of keeping track of the identified risks,
monitoring residual risks and identifying new
risks, ensuring the execution of risk plans and
evaluating their effectiveness in reducing risk.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
41

• PMBOK Chapter 12
• Project Procurement Management

42
Mapping the Processes
43
Mapping the Processes (cont.)
44
12.1 Procurement Planning
Tools Techniques
Outputs

• Procurement Management Plan
• SOWs

• Make-or-Buy Analysis
• Expert Judgment
• Contract Type

Process of identifying which project needs can be
best met by procuring products or services
outside the project organization.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
45
Procurement Planning

• What forms a Contract?
• An offer
• Acceptance
• Consideration something of value
• Legal Capacity separate legal parties
• Legal purpose sale of legal goods
• Contract also refers to legal and business terms
  and conditions as well as scope of work,
  marketing literature, drawings, charts,etc.

46
Selected Procurement Planning Tools and Techniques
Make or Buy Analysis

• Make
• Cost
• Internal expertise
• Integration of Operations
• Existing Capacity
• Direct Control
• Design Secrecy

• Buy
• Cost
• Supplier Skill Set
• Small Volume Requirement
• Limited Capacity
• Augment Labor Force
• Maintenance of Multiple Sources

47
Selected Procurement Planning Tools and
Techniques (cont.)
Contract type selection
48
Selected Procurement Planning Tools and
Techniques (cont.)

• CPFF - Cost Plus Fixed Fee
• CPPC - Cost Plus Percentage of Costs (illegal in
  US government)
• CPIF - Cost Plus Incentive Fee
• T M - Unit price
• FPIF - Fixed Price Incentive Fee
• FFP - Firm Fixed Price

Seller Risk
High
Low
Buyer Risk
Low
High
CPFF CPIF FPIF
FFP
49
Procurement Planning Outputs

• Procurement Management Plan answers the
  following questions
• Types of contract(s) to be used
• If independent estimates will be needed
• What actions can project management team take in
  procurement actions, and are standard procurement
  documents going to be used
• How will multiple providers be managed
• How will procurement be integrated into other
  project functions
• Statement of work
• A narrative description of products or services
  to be supplied under the contract - defines What,
  NOT How or Who

50
12.2 Solicitation Planning
Tools Techniques
Outputs

• Procurement Docs
• Evaluation Criteria
• SOW Updates

• Standard Forms
• Expert Judgment

Preparation of the documents needed to support
the solicitation.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
51
Selected Solicitation Planning Outputs

• Procurement Documents
• Request for Quotation (RFQ) price quote per
  item, hour, etc.
• Request for Proposal (RFP) How the work will be
  accomplished, who will do it, etc.
• Request for Information (RFI)
• Request for Clarification (RFC)
• Invitation for Bid (IFB) One price to do all
  work

52
Selected Solicitation Planning Outputs (cont.)

• Special Provisions
• Adding or changing the standard contract so that
  it addresses the particular needs of the project.
  
• Evaluation Criteria
• Using a rating or scoring system on proposals
• Items rated or scored are
• Understanding
• Technical Capability
• Management approach
• Financial capacity

53
12.3 Solicitation
Tools Techniques
Outputs

• Proposals

• Bidder Conferences
• Advertising

Obtaining responses (bids and proposals) from
prospective sellers on how project needs can be
met
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
54
Selected Solicitation Tool and Technique

• Bidder Conference
• Watch for
• Collusion
• Sellers asking questions in private
• Make sure ALL questions and answers are in
  writing and issued to all potential sellers

55
12.4 Source Selection
Outputs
Tools Techniques

• Contract

• Weighting System
• Screening System
• Independent Estimates
• Contract Negotiation

Receipt of bids or proposals and the application
of the evaluation criteria to select a provider.
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
56
Source Selection Tools and Techniques

• Contract negotiation
• Purposes
• Obtain a fair and reasonable price
• Develop a good relationship with seller
• Main items to Negotiate
• Responsibilities
• Authority
• Applicable Law
• Technical and business management approaches
• Contract financing
• Price

57
Source Selection Tools and Techniques (cont.)

• Weighting System weighting the sellers
  according to each of the proposal criteria
• Screening System Eliminating sellers
• Independent Estimate Comparing cost

58
12.5 Contract Administration
Outputs
Tools Techniques

• Correspondence
• Contract Changes
• Payment Requests

• Contract change
• control system
• Performance reporting
• Payment system

• Written Documentation

Ensuring that the sellers performance meets
contractual requirements
Project Management Institute, A Guide to the
Project Management Body of Knowledge (PMBOK
Guide) 2000 Edition, Project Management
Institute, Inc., 2000
59
Contract Administration Notes

• Conflict
• When there is a conflict or dispute on a
  contract, the ONLY one with authority to change
  the contract is the Contracting Officer or
  Contract Administrator
• Warranty
• Implied Warranty The mere act of sale implies
  (1) general fitness for use and (2) fitness for
  special uses that the user intends if the seller
  knows of these special conditions
• Express Warranty Beyond the mere act of the
  sale, the seller makes specific representation
  (oral, ads, literature, specs, markings, time,
  etc.)

60
12.6 Contract Close-Out
Tools Techniques
Outputs
Inputs

• Contract File
• Formal Acceptance
• Formal Closure

• Procurement Audits

• Contractdocumentation

Involves both product verification and
administrative closeout
61
Procurement Management Overview
Procurement Management Process Procurement
planning ---------------------- Make or
buy Solicitation planning ------------------------
RFP Solicitation --------------------------------
---- Q A Source selection ----------------------
------ Pick one Contract administration
------------------- Admin Contract closeout
--------------------------- Finish