PROJECT MANAGEMENT TRAINING GUIDE

TABLE OF CONTENT

CHAPTER 1 – PROJECT MANAGEMENT FRAMEWORK

CHAPTER 2 – PROJECT MANAGEMENT PROCESS/PROJECT
LIFESTYLE
CHAPTER 3 – PROJECT INTEGRATION MANAGEMENT
CHAPTER 4 – PROJECT SCOPE MANAGEMENT
CHAPTER 5 – PROJECT TIME MANAGEMENT
CHAPTER 6 – PROJECT COST MANAGEMENT
CHAPTER 7 – PROJECT HUMAN RESOURCE MANAGEMENT
CHAPTER 8 – PROJECT QUALITY MANAGEMENT
CHAPTER 9 – PROJECT COMMUNICATION MANAGEMENT
CHAPTER 10 – PROJECT RISK MANAGEMENT
CHAPTER 11 – PROJECT PROCUREMENT MANAGEMENT

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CHAPTER 1
PROJECT MANAGEMENT FRAMEWORK

INTRODUCTION
Project management is an integrative endeavor composed of five interlinked process groups and their
component process. This course comprises of five process groups that you will perform on virtually every
project you manage. You’ll discover how to initiate, plan, execute, control and close a project.
Critical steps in project’s success.

Successful project management has several significant characteristics. To understand the value of project
management, it is necessary to understand the fundamental nature of a project
* The core characteristics of project management processes
* How success is evaluated
* The roles, responsibilities and activities of a project manager and the expertise required
* And the contexts in which projects are performed.

What exactly is meant by a “Project”?

Although project management has been around for quite some time, there still seems to be some
confusion regarding the definition of a “project”, sometimes even among the more experienced project
managers. People may use the word “project” with reference to a lot of things such as designing software
or a new car, to constructing a new building or home, planning an event, implementing a new IT system
in an organization, figuring out solutions to a major problem, or opening a new restaurant. A Project is a
temporary endeavor undertaken to create a unique product, services or result.
Temporary Endeavor
To be temporary signifies that there is a discrete and definable commencement and conclusion; the
management of a project requires tailored activities to support this characteristics , as such a key indicator
of project success is how it performs against its schedule- that is, does it start and on time. Temporary
does not necessarily mean short in duration.
Unique Deliverables
The uniqueness of the deliverable, whether it is a product, services , or result requires a special approach
in that there may not be pre-existing blueprint for the project’s execution and there may not be need to
repeat the project once it is completed, Uniqueness does not mean there are no similarities to other
projects but that the scope for a particular project has deliverable that must be produced within
constraints, through risks, with specific resources, at a specific place, and within a certain period;
therefore, the process to produce the deliverable as well as the deliverable itself is unique.
An ongoing work effort is generally a respective process because it follows an organization existing
procedures. In other world because of the unique nature of projects, there may be uncertainties about the
products, services, or results that the project creates. Project task can be new to a project team which
necessitates more dedicated planning than other routine work.
Furthermore, projects are undertaken at all organizational levels. A project can involve a single person, a
single organizational unit, or multiple organizational units.
A project can be following:
• A product that can be either a component of another item or an end item in itself.
• A capability to perform a service (e.g. a business function that supports production or
distribution), or
• A result such as an outcome or document (e.g. a research project that develops knowledge that
can be used to determine whether a trend is present or new process will benefit the society)
Examples of project include, but are not limited to:
• Developing a new product or service,
• Effecting a change in the structure, staffing or style of an organization.
• Developing or acquiring a new or modified information system
• Constructing a building or infrastructure
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• Implementing a new business process or procedure.
Now, let’s have a look at some of the typical features of a project.
A project should have the following characteristics:
• A Project is temporary in nature. It has a definite start and a definite end (if a project runs for a very
long time or never ends, then it is not a project but rather a program or an ongoing operation).
• As we discussed earlier, projects are undertaken with the purpose of creating a unique product,
service or result (even if a project has been done before, there is always something different about
it, such as the place, people, materials etc.).
• A project has (or should have) clearly defined goals and objectives (In case it is open ended or its
objective changes over time, it is likely a program or a continuous operation).
• A project may be declared closed when its approved objectives have been fulfilled.
Since there isn’t any hard-and-fast rule on what is called a “project”, don’t correct your employer or project
sponsor when they ask you to go manage a “project” that may not look like one by definition. Just smile
and take comfort in the fact that you’re one of the few who knows the difference.
What is project Management?
Project management is the application of knowledge, skills, tools, and technique to project activities to
meet project requirement.

Project Management is an interrelated group of processes that enables the project team to achieve a
successful project. These processes manage inputs to and produce outputs from specific activities. The
progression from input to output is the nucleus of project management and requires integration. For
example: A feasibility report could be an input to a design phase; the output of a design phase could be a
set of plans and specifications.

This progression requires project management, expertise, tools and techniques, including risk
management, contingency development and change control.
The five (5) project management process groups are
• Initiating defines and authorizes the project or a project phase.
• Planning 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 –integrates people and other resources to carry out the project management plan for the
project.
• Monitoring and Controlling- 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 - formalizes acceptance of the product, service, or result and brings the project or a project
phase to an end.
Project Success
A standard must be established to define and measure project success. Fundamentally, project success is
the delivery of the required product, services or result on time and within budget. The stages of
implementation must be articulated at the project planning phase. Disaggregating the project at its early
point assists in the successful development of the project.
Projects normally involve the introduction of a new system of some kind and in most cases new methods
and ways of doing things. User consultation is an important factor in the success of project and the degree
of user involvement can influence the extend of support for the project or its implementation plan (please
note: A user may be internal or external)

Program Management
A program is a group of related projects managed in a coordinated way to obtain benefits and control not
available from managing them individually. A project may or may not be part of a program but program
will always have projects.
An example of a program would be a new communications satellite system with projects for design of the

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satellite and of the ground stations, construction of each, integration of the system, and launch of the
satellite.
Portfolio Management
A portfolio can be generally described as a group of programs to achieve a specific strategic business goal.
The program may not be related other than the fact they are helping to achieve that common strategic
goal.

For example, an infrastructure firm that has the strategic objective of “maximizing the return on its
investments” may put together a portfolio that includes a mix of project in oil and gas, power, water etc.
From the mix, the firm may chose to manage related projects as one program. All of the power projects
may be grouped together as a power program. Portfolio management focuses on ensuring that projects
and program are reviewed to prioritize resource allocation, and that the management of the portfolio is
consistent with and aligned to organizational strategies.

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Table 1-1: Comparative Overview of Project, Programs, and Portfolio Management

PROJECTS PROGRAMS PORTFOLIOS

SCOPE Projects have defined Programs have a Portfolios have a
objectives. Scope larger scope and business scope that
progressively elaborates provide more changes with the
throughout the project life significant benefits. strategic goals of
cycle. the organization
CHANGE Project managers expect The program Portfolio managers
change and implement manager must continually monitor
processes to keep change expect change from changes in the
managed and controlled. both inside and broad environment
outside the
program and be
prepared to
manage it
PLANNING Project managers Program managers Portfolio managers
progressively elaborate high develop the overall create and maintain
level information into program plan and necessary processes
detailed plans throughout create high-level and communication
the project life cycle. plans to guide relative to the
detailed planning at aggregate portfolio
the component
level.
MANAGEMENT Project managers manage Program managers Portfolio managers
the project team to meet the manage the may manage or
project objectives program staff and coordinate portfolio
the project management staff.
managers; they
provide vision and
overall leadership.
SUCCESS Success is measured by Success is Success is measured
product and project quality, measured by the in terms of
timeliness, budget degree to which the aggregate
compliance, and degree of program satisfies performance of
customer satisfaction. the needs and portfolio
benefits for which it components.
was undertaken.
MONITORING Project managers monitor Program managers Portfolio managers
and control work of monitor the monitor aggregate
producing the products, progress of performance and
services or results that the program value indicators.
project was undertaken to components to
produce. ensure the overall
schedules,
budget, and
goals, benefits.

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Projects and Strategic Planning
Projects are often utilized as a means of achieving an organizational strategic plan.
Projects are typically authorized as a result of one or more of the following strategic consideration:
• Strategic opportunity/business needs (e.g. a training company authorizing a project to create a
new course to increase its revenues).
• Legal requirement (e.g. a chemical manufacturer authorizes a project to establish guidelines for
the handling of a new toxic material).
• Technological advance (e.g. an electronic firm authorizing a new project to develop a faster,
cheaper and smaller laptop) etc

Project Management Office (PMO)

A project management officer (PMO) is an organizational body or entity assigned various responsibilities
related to the centralized and coordinated management of those projects under its domain. Its primary
function includes but is not limited to:
• Manage the interdependences between projects
• Monitor compliance with organizational processes
• Help gather lessons learned and make them available to other projects.
• Be more heavily involved during project initiating than later in the project.
• Be a stakeholder
• Be a part of the change control board
• Provide templates (i.e., for work breakdown structures).
• Coaching, mentoring, training and oversight

Table 1-2: Differences between PM and PMO

PM Manages the constrains (Scope, PMO Manages the methodologies,
Schedule, Cost and quality etc) of the standards, overall risk/opportunity
project. among projects at the end level

PM controls the assigned project resources PMO optimizes the use of shared
to best meet project objective organizational resources across all
projects.
The PM focuses on the specific project PMO manages major program scope
Objectives changes which may be seen as potential
opportunities to the better achieve
business objectives.

Responsibilities of the Project Manager

The project manager is the person assigned by the performing organization to achieve the project
objectives.
A project manager is the person who keeps all the elements of a project together. He is the “man in charge”
of the project and must take responsibility as the project leader. In order to be a good leader, the PM must
possess good communication skills, always be prepared and organized, play well with team members, and
have the ability to build and motivate a team. The PM should not be afraid to take calculated risks, always
be there for his team, be solution oriented, and able to understand the requirements and expectations of
the stakeholders.
• The key responsibility of the project manager is to successfully accomplish the project objectives by
balancing the competing demand for quality, scope, time and cost.
• The project manager must lead team to operate crises functionally towards a common objective
while assuring cohesiveness and continuity as the project progress through project process and
project phases.
• The project manager acts as the key catalyst to stimulate effective communication and
coordination between design, procurement and construction activities.

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Being the person in charge for a project’s success, the PM must look after every aspect of a project,
including but not limited to the following:

• Crafting an effective project management plan and improving it as necessary to guarantee

currency, consistency and applicability.
• Keeping the different variables of a project such as cost, schedule, scope, and deliverables on track.
• Managing risk and offering regular and accurate reports about project status/metrics.
• Managing the needs and expectations of the stakeholders.

If possible, the Project Manager should be allotted to a project early on in the project life cycle to help
with the development of the project charter, planning the paperwork, and assembling the right team for
the project. The PM has a specific role to play and should focus his energies on the project. If, for
instance, a person is designated the PM role in addition to being a functional manager, there will most
probably be conflicting demands on their time and priorities.
Becoming a good project manager requires a number of specific skills. According to the Project
Management Institute, there are three dimensions of project management competency:

• Knowledge – This refers to what the PM knows about project management.

• Performance – This refers to the ability of the project manager to apply their project management
knowledge to do or accomplish a project task.
• Personal – This refers to the behavioral aspect of project management in performing a project
related activity. A persons attitudes, character, and leadership style etc. determine his competency
level – the capacity to drive the project team in the right direction while realizing project
objectives and handling the project constraints.

Although the role of the PM may change depending upon the size, type, and nature of the operation, the
elementary skills needed are universal. The basic PM skills and disciplines can be applied to virtually any
field. This isn’t to imply – “one size fits all”, due to the fact that projects by definition are unique. Having
said that, project management as a skill is incredibly versatile and can be utilized in a wide array of
applications.
Last but not least, to be a good project manager one must be a strong leader to effectively control the
project. Being a leader means taking complete charge of the project.

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CHAPTER 2
PROJECT MANAGEMENT PROCESS/PROJECT LIFE CYCLE

Two methodologies are needed to complete a project: The first is project life cycle for what you need to
do to complete the work and the second is a project management methodology/process for managing the
project. There are many different types of project life cycles, depending on the industry you work for or
the company’s preference. Some examples of life cycles are:

• Constructions: Feasibility, Planning, design, production turnover and start-up

• Information technology: High level design, detailed design, coding, testing, installation, conversion
and turnover to operations.

In IT project, the high- level design might by handled as a project, and follow the full project
management process from the project charter to closing. The detailed design might be handled as
another separate project while the project life cycle describes what you need to do to complete the
work; the project management process describes what you need to do to manage the project.

There are five (5) Project Management Processes.

• Initiating the project (start)
• Planning the project (plan)
• Executing the project (Do)
• Monitoring and controlling (check and act)
• Closing the project (End)

INITIATING PROCESS
The initiating process formally starts a new project or project phase by officially authorizing the project
and providing the project manager with the information necessary to begin the project.

The initiating process includes the followings:

• Select Project Manager
• Determine company culture and existing systems
• Collect processes, procedure and historical information
• Develop project charter-- This is the process of developing a document that formally authorizes a
project or a phase and documenting initial requirements that satisfy the stakeholder’s need and
expectation. In multi-phase projects, this process is used to validate or refine the decisions made
during the previous iteration of Developing Project Charter.
• Identify stakeholder
• Understand the business case
• Divide large projects into phases

Inputs to the Initiating Process Group

1. Project statement of work
2. Business case
3. Contract
4. Enterprise environment factors
5. Organization process assets.

Outputs to the initiating process

1. Project Charter Identification- (Stakeholders) A project charter is a document issued by the
project initiator /sponsor that formally authorizes the existence of project and provides the project
manager with the authority to apply organization resources to project activities. Identifying
stakeholder is the process of identifying all people or organization impacted by the project, and
documenting relevant information regarding their interest, involvement, and impact on project success.

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Table 2-2: Identify Stakeholders: Inputs and Outputs

INPUTS OUTPUTS

1. Project character 1. Stakeholders register

2. Procurement documents 2. Stakeholder management strategy
3. Enterprise
environmental
factors

PLANNING PROCESS
Project planning determines whether the objectives as stated in the project charter can be achieved, as
well as how the project will be accomplished, and addresses all appropriate process management
processes and knowledge areas. This means that the project manager and the project team will determine
what processes are appropriate for the needs of the project, to avoid wasting project resources on
activities that are not relevant to the particular project. The results of the planning process are project
management plan and project documentation.

The Project planning process includes:

• Develop the project management plan (integration)
• Collect requirements (scope)
• Define scope (scope)
• Create WBS (scope)
• Define activities (Time)
• Estimate costs (cost)
• Plan quality (Quality) etc.
It is important that once risk identification, qualitative and quantitative risk analysis and risks response
planning is complete, go back to finalize all the component of the project management plan and project
documents. This approach to planning saves time and is efficient. This procedure is important because it
is only after risk management is complete that the final cost and schedule can be determined.

Who is in the planning process?

Everyone! The project management plan and project documents are compiled by the project manager
with input from stakeholders, historical records from previous project, companies polices, magazines,
gazettes, articles about the project and so on. Project planning does not just occur when the project is
beginning, project planning continues at various stages during the execution of the project.

EXECUTING PROCESS
The purpose of the executing processes is to complete work defined in the project management plan and
to meet the project objective(s). The focus is on:
• Managing people
• Following up on processes
• Distributing information/ giving instructions
It is essentially a guiding, procreative role accomplished by constant referral back to the project
management plan and project document.

The project executing processes/activities includes

• Set and manage the expectation of all stakeholders.
• Complete work package
• Establish and manage communication channels
• Evaluate the team’s effectiveness

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• Implement quality assurance procedure
• Produce project reports
• Follow ground rules at team meetings
• Hold progress meeting
• Send and receive information
• Review bids and quotes and select contractors
• Review and monitor available project funds
• Guide, assist, communicate, lead and negotiate with the executing team
MONITORING AND CONTROLLING PROCESS
Monitoring and controlling can be measuring the performance of the project to the project management
plan and approving change requests, including recommended corrective and preventive actions and
defect repair.
Activities in the monitoring stage include:
• Monitor and control project work
• Perform integrated change control
• Verify scope
• Control scope
• Control schedule
• Control costs
• Perform Quality control
• Report performance etc

CLOSING PROCESS GROUP

A project is not complete when the final product scope is done; it is completed only when closure is
complete. The closing process group is where the project is finished/ended. This effort will include
administrative activities such as collecting and finalizing all the paperwork needed to complete the
project, and technical work to verify that the product of the project is acceptable/unacceptable. It will
also include any work needed to transfer the completed project/work to those who will use it and to
return all resources back to the performing organization, customer or clients.
Activities in the closing stage include:
• Confirm work is done to requirements/not.
• Obtain formal (Legal) sign- off and final acceptance of the product of the project
• Monitor and Update project records.
• Index and achieve project records
• Hand off the completed project deliverables to the client.
• Release resource

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CHAPTER 3
PROJECT INTEGRATION MANAGEMENT

If you were asked, what is a project manager’s main role?” The answer is to put all the pieces of a project
together into aches whole. Integration balances all the process in the knowledge area (scope, time, qualify,
human resource, communications, and procurement management) with either. These processes do not
happen independently.

Imagine the project manager flying over a project everyday a thousand feet in the air and keeping an eye
on how everything is progressing. That’s what Project Integration Management basically is, the project
manager keeping a close eye on the project, getting a bird’s eye view of the entire project on a regular
basis and check whether everything is going according to plan. The project manager must make sure that
all the boats are rowing in the right direction. It is the duty of the project manager to ensure that the
barriers (levies, dikes, and dams) are all holding properly; otherwise a flood could break down the
barriers and ruin the project.
The project manager is expected to be the pilot in command, the eye in the sky if you will, the person who
keeps the project moving forward according to plan. It is the project manager’s job to provide a clear
direction and support to the stakeholders while keeping everyone focused on the achievement of the
project objectives. It is also important to report the progress and overall status of the project accurately
and in a timely way so that adjustments can be made if necessary. This aspect of Project management falls
under the scope of Project Integration Management.

Project Integration Management 



Ensures that the various elements of the project processes are properly coordinated.
The 3 major processes of PIM include
A. Project Plan Development
B. Project Plan Execution
C. Overall Change Control
In most cases, historical Records are needed to perform project management well, they are inputs
to continuous improvements and this includes:
• Files
• Lessons Learned
• Actual Costs
• Time Estimates
• WBS
• Benchmarks
• Risks
 A. Project Plan Development 
Uses outputs from other planning processes to create consistent document to guide project execution
and control. It may include Documents planning assumptions, Documents planning decisions that are
chosen, It also facilitates communications, Defines key management reviews and Provides a baseline to
track progress measurement and project controls.
B. Project Plan Execution
It is the Primary process for carrying out the project plan. In most cases scenarios, it’s the most costly
aspect of project management processes. It is also the direction of organizational resources and interface.
Project Plan Execution Inputs:
• Project Plan
• Supporting Detail
• Organizational Policies
• Corrective Action – anything to bring expected performance in line with the project plan.

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Tools & Techniques for Plan Execution
• General Management Skills
• Product Skills and Knowledge – defined as part of planning, provided by staffing
• Work Authorization System – formal procedure for sanctioning work to ensure completion –
written or verbal authorization
• Status review meetings – regular exchanges of information
• Project Management Information System
• Organizational Procedures
C. Overall Change Control
Influencing factors that create change to ensure beneficial results; ensure that change is beneficial.
Determining that change has occurred, Managing actual changes as they occur, Evaluate impact of
change, Meet with team to discuss alternatives, Meet with management to present decision.

Change control requires maintaining integrity of performance measurement baselines (project plan),
Ensuring changes to scope are accurately recorded, Coordinating changes across knowledge areas
(Scheduling, risk, cost, quality, etc.), determine all factors that control change and pro-actively preventing
the occurrence, evaluate the impact of change(s), Inputs to Change Control, Project Plan, Performance
Reports, Change Requests – orally or written, externally or internally initiates, legally mandated or
optional.


 
GUIDE TIPS 
What have we done, how can we do it better
• Technical Aspects of the project
• Project Management (WBS, plans, etc.)
• Overall Management (communications, leadership)
• Best to have whole team complete and available
• “Post – Mortem”- A project post-mortem is a process, usually performed at the conclusion
of a project, to determine and analyze elements of the project that were successful or
unsuccessful. The Project Management Body of Knowledge (PMBOK) refers to the process
as lessons learned.

Project Integration Management

Project Integration Management 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.
Example: - In order to complete cost estimate, risk reserves, number of resources, scope etc should be
taken into account in any project management process.

Table 3-1: The integration management processes

INTERGRATION MANAGEMENT PROCESSES DONE During
Develop Project Charter Initiating
Develop Project Management plan Initiating
Direct and Manages project Execution Executing
Monitor and Control Project Work Monitoring
Perform Integrated Change Control Monitoring & Control
Close Project Closing

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CHAPTER 4
PROJECT SCOPE MANAGEMENT

Scope management is the process of defining what work is required and then making sure all of that
work and only that work is done, to complete the project successfully.

Scope management deals with the processes of defining and documenting all the work that is required
to successfully complete a project. The Scope of a project is its essence — it determines what the project
is all about, the deliverables that are to be provided, and the groundwork upon which the project team
shall build. After the scope has been defined for a project, it should be documented in the form of a project
scope statement, the purpose of which is to not only describe the objectives and purpose for the project
but also the specific business problem or problems that the project is meant to solve. The project scope
statement should include key contacts and milestones related to the project, the project target completion
date, and so on. The next part is to determine what should be included in the project scope statement and
what is to be excluded. The final and perhaps the most intensive part of scope management is to constantly
keep checking the various elements to ensure all the work is being completed and managed effectively.
This is important to ensure the integrity of the approved scope for any given project.

If you don’t know where you’re

going…

…. You’ll go Everywhere!

SCOPE MANAGEMENT HAS 5 PROCESSES 

1. INITIATION
2. SCOPE PLANNING
3. SCOPE DEFINITION
4. SCOPE VERIFICATION
5. SCOPE CHANGE CONTROL

1. INITIATION
Initiation – process of formally recognizing that a new project exists, or an existing project continue
to next phase
Involves feasibility study, preliminary plan, or equivalent analysis authorized as a result of:
2. Market Demand
3. Business Need
4. Customer Request
5. Technological Advancement
2. SCOPE PLANNING
Scope Planning – process of developing a written statement as a basis for future decisions. It is also a
criteria to determine if the project or phase is / will be successful in any project management process.

Scope Planning Inputs:

1. Product description
2. Project Charter: It provides a preliminary delineation of roles and responsibilities. It outline
projects objectives, identify the main stakeholders and defines the authority of project
management.
3. Constraints

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4. Assumptions
5. Product Analysis - developing a better understanding of the product of the project.

3. SCOPE DEFINITION
Scope Definition is the process which generates (refines) the Project Scope Statement as basis for future
project decisions. The Project Charter as initially generated 'wish-list' of the project owner / sponsor and
the Preliminary Project Scope Statement as first answer of the project manager are the base of this
process: Scope Definition builds the detailed Project Scope Statement upon the major deliverables,
assumptions, and constraints that are documented during project initiation. Subdividing major
deliverables into smaller, manageable components, improve accuracy of cost, time, and resource
estimates.

Scope definition - define a baseline for performance measurement, clear responsibility assignments,
critical to project success, reduces risk of higher cost, redundancy, time delays, and poor productivity,
defines “what” you are doing.

A typical example of a scope definition in a typical project management setting is the Work Breakdown
Structure (WBS) – a deliverable-oriented grouping of project assignments that organizes and defines the
scope of the project.

Each descending level represents further detail; smaller and more manageable pieces, each item is
assigned a unique identifier collectively known as “code of accounts”, work element descriptions included
in a WBS dictionary (work, schedule and planning information). Other formats include;
Contractual WBS – seller provides the buyer
Organizational (OBS) – work elements to specific org. units
Resource (RBS) – work elements to individuals
Bill of Materials (BOM) – hierarchical view of physical resources
Project (PBS) – similar to WBS

4. SCOPE VERIFICATION:

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Scope Verification is the process by which the project manager gets the formalized acceptance of the
completed project deliverables. The scope of the project in its inherent sense is the work that must
be done to meet the required targets. But whether the work has successfully been done or not can
only be measured by comparing the generated targets of the project with the required targets.
Nevertheless, scope verification is "obtaining the stakeholders' formal acceptance" by commonly
reviewing the deliverables to ensure that each is completed satisfactorily".

5. SCOPE CONTROL CHANGE:

Scope Control is the process of controlling changes to the project scope. Naturally the project
management has to manage scope changes too. The world is a collection of changes. Therefore
changes are allowed. But they must be integrated into the existing project scope statement by
referring to a defined change process. Undocumented 'by the way'-changes are not state of the art.
Hence scope control is both: avoiding of "unaccepted" new work packages and integrating "accepted"
new work packages into the project scope statement and/or into the WBS.

WHAT MUST BE DONE?

•
WHY MUST IT BE DONE?
•
WHEN MUST IT BE DONE?
•
WHO SHOULD DO IT?
•
WHERE SHOULD IT BE DONE?
•
HOW SHOULD IT BE DONE?

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CHAPTER 5
Project Time Management

Often when we read project management magazines, journals and books, the one common and real
measure of success that’s often talked about is completing the project on time. The other measure of a
project’s success is off course being on budget. The two areas of time and cost are very closely related and
are the biggest constraints or challenges a project manager encounters during the course of a project. It is
often said that the schedule is the biggest source of conflict during a project. A lot of projects miss their
target schedule dates and the misses are often due to changes to the scope or deliverables that directly
affect the scheduled completion date of a project.
Planning and Execution both form an integral part of Time management. Time, unlike money, once gone
cannot be re-obtained. So, time is a much more valuable commodity than money. That’s why the
knowledge area of time management is a critically important one. But unfortunately, a universally agreed-
upon way to manage time doesn’t exist. The management of time and prioritization of activities depends
upon the discretion of the project manager. Fortunately though, there are some standard processes that
can help in this regard.

Processes required to ensure timely completion of the project.

5 Major processes in developing the project time schedule are:
1. ACTIVITY DEFINITION
2. ACTIVITY SEQUENCING
3. ACTIVITY DURATION ESTIMATING
4. SCHEDULE DEVELOPMENT
5. SCHEDULE CONTROL

ACTIVITY DEFINITION: identifying and documenting specific activities to produce project

deliverables identified in the WBS. Time must be defined to meet the project objectives. Activity
Definition includes the followings:


a. Activity List – all to be performed; extension to the WBS and includes description to ensure
team members understand work to be performed
b. Supporting Detail – organized as needed and include all assumptions and constraints
c. WBS Updates – identify missing deliverables and clarify deliverable descriptions. WBS updates

often called refinements; more likely using new technologies in project

ACTIVITY SEQUENCING – identifying and documenting interactive dependencies among activities.

Support later development of a realistic schedule Activity Sequencing also includes Precedence
Diagramming Method (PDM) – constructing network diagram using nodes to represent activities and
arrows to indicate dependencies; also called Activity On Node (AON). 

It Includes 4 types of dependencies:

• Finish to Start – “from” activity must finish before “to” activity can begin; most
commonly used 
• Finish to
 Finish – “from” activity must finish before the next may finish 
• Start to Start – “from” activity must start before next “to” activity can start 

• Start to Finish – task must start before next activity can finish 
Always use caution with the last 3 techniques - logical relationships often not consistently implemented
with project management software.
Activity sequencing also includes Arrow Diagramming Method (ADM) – uses arrows to represent
activities and connecting at nodes to illustrate dependencies It also called Activity On Arrow (AOA)
which only uses finish to start dependencies 


ACTIVITY DURATION ESTIMATING:

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Activity duration estimating is the process of taking information on project scope and resources and then
developing durations for input to schedules. The inputs for estimates of duration typically originate from the
person or group on the project team who is most familiar with the nature of a specific activity. The estimate is
often progressively elaborated, and the process considers the quality and availability of the input data. Thus,
the estimate can be assumed to be progressively more accurate and of known quality. The person or group on
the project team who is most familiar with the nature of a specific activity should make, or at least approve,
the estimate.
Estimating the number of work periods required to complete an activity will often require consideration of
elapsed time as well. For example, if “concrete curing” will require four days of elapsed time, it may require
from two to four work periods based on (a) which day of the week it begins on and (b) whether or not weekend
days are treated as work periods.
SCHEDULE DEVELOPMENT:
Essentially, driving without any idea of how you're going to get there is the same as working on a project
without a schedule. No matter the size or scope of your project, the schedule is a key part of project
management. The schedule tells you when each activity should be done, what has already been completed,
and the sequence in which things need to be finished.


Schedules also help do the followings:

• They provide a basis for you to monitor and control project activities.
• They help you determine how best to allocate resources so you can achieve the project goal.
• They help you assess how time delays will impact the project.
• You can figure out where excess resources are available to allocate to other projects.
• They provide a basis to help you track project progress.


SCHEDULE CONTROL: Influencing factors which create schedule changes to ensure changes are beneficial
determining that schedule has changed

Control Schedule is the process of monitoring the status of project activities to update project progress and
manage changes to the schedule baseline to achieve the plan. The key benefit of this process is that it provides
the means to recognize deviation from the plan and take corrective and preventive actions and thus minimize
risk.

Schedule Change Control System – defines procedures for schedule changes, paperwork, approval,
tracking systems

Performance Measurement – assess magnitude of variations to baseline; determine if corrective

action is needed or not.


Key Definitions: 


Slack (Float): float or slack is the amount of time that a task in a project network can be delayed
without causing a delay to subsequent tasks ("free float") and project completion date ("total float").

Slack: is calculated by the difference between Early Start and Late Start of a task

Free Slack (Float): the amount of time a task can be delayed without delaying the early start date of
its successor 

Total Slack (Float): the amount of time a task can be delayed without delaying the project completion
date 


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CHAPTER 6
PROJECT COST MANAGEMENT

Project cost management includes the processes involved in estimating, budgeting, and controlling costs
so that the project can be complete within approved budget. Below are the processes of Project Cost
Management.
✓
Estimate Costs (Planning Phase)
✓
Determine Budget (Planning)
✓
Control Costs (Monitoring and Control)
On some projects, especially ones of smaller scope, cost estimating and cost budgeting are so tightly linked
that they are viewed as a single and simple process that can be performed by a single person over a
relatively short period of time.
Project Cost Management ensures that the project is completed within the approved budget. It is
concerned with cost of resources needed to complete activities; consider effect of project and so on. 
It is always better and rational to use decisions of cost by using product “life-cycle costing” (a technique
used to reduce cost, time, improve quality and performance, and optimizes the decision making during
the execution process of the project.

Consider information needs of stakeholders, controllable and uncontrollable costs (budget

separately for reward and recognition systems
The 4 major processes of Project Cost Management are:
1. Resource Planning
2. Cost Estimating
3. Cost Budgeting
4. Cost Control
1. RESOURCE PLANNING:
Determining what resources (people, equipment, materials) and what quantities of each should be used
to perform activities.

Resource Planning also includes the followings listed

• Work Breakdown Structure
• Historical Information
• Scope Statement – justification & objectives
• Resource Pool Description – what resources are potentially available for resource planning
• Organizational Policies – staffing, procurement
Resource Planning also involves expert Judgment which in most cases required assessing the inputs to
the process. Such expertise may be provided by any group or individual with specialized knowledge or
training, and is available from many sources, other units within the performing organization, consultants
and professional and technical associations. Furthermore, Resource Planning includes resource
requirements i.e what type & how many resources are needed for each activity in the Work Breakdown
Structure. These resources will be either through staff acquisition or procurement.

2. COST ESTIMATING:
It is the process of developing an approximation (Estimate) of the costs of the resources needed to
complete project activities. It usually distinguishes estimating from pricing
i. Estimating – likely amount
ii. Pricing – business decision
It also identifies alternatives and consider realigning costs in phases to their expected savings
Usually 2 types of estimation can be identified in project management.

Analogous Estimating - also called top – down estimating means using the actual cost of a previous,
smaller project as the basis for estimating the cost of the current project.

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It is generally less costly than other techniques, but it is also generally less accurate. It is most reliable
when the previous projects are similar in fact and not just in appearance, and the individuals or groups
preparing the estimates have the needed expertise.

Bottom – up estimating - This technique involves the cost of individual activities or work packages, then
summarizing or rolling up the individual estimates to get a project total.

The cost and accuracy of bottom up estimating is driven by the size and complexity of the individual
activity or work package: smaller activities increase both cost and accuracy of the estimating process.
The project management team must weigh the additional accuracy against the additional cost.

Pros and Cons of Analogous Estimating

• Quick - Less Accurate
• Tasks don’t need to be identified – Estimates prepared with little detail and
understanding of project
• Less costly – Requires considerable experience to do well
• Gives PM idea of management expectations – Infighting at high levels of organization
• Overall project costs are capped – Difficult for projects with uncertainty

Pros and Cons of Bottom up Estimating

• More Accurate – Takes time and expense
• Gains buy-in from the team – Tendency for team to pad estimates
• Based on detailed analysis of project – Requires that project be defined and understood
• Provides a basis for monitoring and control – Team infighting to get biggest piece of pie

3. COST BUDGETING
Involves allocation of total estimate to individual work activities. Cost Budgeting is the process for
"aggregating the estimated costs of individual activities or work packages to establish a cost baseline":
it has to establish a total cost baseline for measuring project performance" by aggregating the
estimated costs of individual schedule activities or work packages".
Cost aggregation is the accumulation of single costs following the structure of the WBS (and the
distribution of payments with respect to the schedule base line)

4. COST CONTROL
Cost Control is the process for "influencing the factors that create cost variances and controlling
changes to the project budget". Like other controlling processes the process of project control
therefore includes such tasks as handling influencing factors, managing actual changes, detecting
wished und unwished changes by comparing the reported real values with the approved cost base line
and determining corrective actions.
Concerned with influencing factors that create changes to the cost baseline. Cost control helps in the
following ways:
• It also determining that the cost baseline has changed,
• it helps to Manage actual changes as they occur
• Monitor cost performance to detect variances
• Record all appropriate changes accurately in the cost baseline
• Preventing incorrect, unauthorized changes being included in the cost baseline
• Informing stakeholders of authorized changes
• Determine the “why’s” of positive and negative variances
• Integrated with other control processes (scope, change, schedule, quality)

PERFORMANCE REPORTS –
Performance reports are an output of the Monitor & Control Project Work process, and input to various
managing and controlling processes.
As the name suggests, performance reports have various information pertaining to project parameters,
and updates on the project’s progress.
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Also, performance report is “the physical or electronic representation of work performance information
compiled in project documents, intended to generate decision or raise issues, actions or awareness.”

In other words, you can say that the performance reports organize and summarize the information
collected through work performance data and work performance information, and represent it to the
stakeholders in such a way that they can understand the direction the project is going.
Performance reports show the stakeholders the current status of the project and its performance against
the planned baselines.

If the stakeholders see that the project is not progressing as planned, they may decide to take any
corrective action, such as if any extra funds or resources are required, or any time extension is needed to
complete the project, etc.

Performance reports can be given to stakeholders in a format desired by them and decided in the
communication management plan. They can be a detailed report or just a summary.

The content of the performance reports includes, but is not limited to:
• Percentage of the work completed during the reporting period
• Balance of the work to be completed
• Cost incurred during the reporting period
• Balance of funds available
• Balance of time available
• Major risks that have occurred, or passed without occurring
• Major remaining identified risks
• Results of variance analysis: e.g. schedule variance and cost variance
• Performance indexes: e.g. schedule performance index and cost performance index
• Forecasted fund required to complete the remaining work (if the project cost is overrun or underrun)
• Forecasted time required to complete the remaining work (if the project is delayed or ahead of
schedule)
• Summary of major approved change requests during the reporting period etc.

EARNED VALUE ANALYSIS

Earned Value Analysis (EVA) is an industry standard method of measuring a project's progress at any
given point in time, forecasting its completion date and final cost, and analyzing variances in the schedule
and budget as the project proceeds. It Integrates cost, schedule and scope.

TERMS:
• BCWS – Budgeted Cost of Work Scheduled (how much work should be done)
• BCWP – Budgeted Cost of Work Performed a.k.a. Earned Value (how much work is budgeted,
how much did we budget)
• ACWP – Actual Cost of Work Performed (how much did the completed work cost)
• BAC – Budget at Completion (how much did you budget for the total job)
• EAC – Estimate at Completion (what do we expect the total project to cost)
• ETC – Estimate to Completion (how much more do we expect to spend to finish the job)
• VAC – Variance at Completion (how much over/under budget do we expect to be)

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FORMULAS:
Variance (Plan – Actual)
Cost Variance (CV): BCWP – ACWP
Schedule Variance (SV): BCWP – BCWS
Cost Performance Index (CPI):BCWP
 ACWP
Schedule Performance Index (SPI): BCWP 
BCWS
Estimate at Completion (EAC): BAC 

CPI
Estimate to Complete (ETC): EAC – ACWP; how much will it cost from now to
completion 

Variance at Completion: BAC – EAC; when the project is over how much more or less did we spend
(most common way of calculating EVA 


Accounting Standards 

Present Value (value today of future cash flows): 

PV = FV 
(1 + r) n
FV = Future Value
r = Interest Rate
n = Number of time periods

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CHAPTER 7
Project Human Resource Management

Project Human Resource Management is the Processes required to make the most efficient use of people
(MANPOWER) in any project management processes.

3 major processes can be identified as:

▪
Organizational Planning
▪
Staff Acquisitions
▪
Team Development

Keep in mind of transient nature of projects, apply techniques that apply to current project needs, ensure
HR compliance with project management activities.

Project Human Resource Management ensures that Project managers know the identity of the employees,
know your team members, projectized organization, conflict between PM and Functional Managers, dual
allegiance of team members

1. ORGANIZATIONAL PLANNING
Identifying, documenting and assigning project roles, responsibilities, and reporting relationships
• Individual and group assignments
• Internal and external employees
• Linked with communication planning
Organizational Planning includes Organizational interfaces – formal and informal reporting relationships
among organizational units, Technical interfaces - formal and informal reporting relationships among
technical disciplines Engineers, manufacturers, electrical, etc, Interpersonal interfaces – formal and
informal reporting relationships among individuals and staffing Requirements – define skill sets from
individual/group within particular time frame.

Human Resource Planning is the process for "[...] identifying and documenting project roles,
responsibilities, and reporting relationships, as well as creating the staffing management plan" (comp.
PMBOK3, p. 199). The main task of this process is the creation of the staffing management plan which
includes at least the following points:
• How and when how many project team members will be required"
• The criteria for releasing them from the project"
• Identification of training needs"
• Plans for recognitions and rewards"
• Compliance considerations"
• Safety issues"
• Impact of the staffing management plan on the organization"

2. STAFF ACQUISITION/ACQUIRE PROJECT TEAM

Ensuring personnel resources are available for project work. Staff Acquisition includes staffing
Management Plan, Staffing Pool Description, Previous experience, Personal interests, Personal
characteristics, Availability of funds and other Recruitment Practices during the project execution.

3. TEAM DEVELOPMENT/DEVELOP PROJECT TEAM – is the process for improving the competencies
and interaction of team members to enhance project performance, which particularly includes the
"improvement of skills" and the "improvement of feelings of trust and cohesiveness among team
members".

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It includes enhancing stakeholders to contribute along with maintaining the project team’s functionality
Team members often balance responsibilities to a functional manager and project manager

Team Development include team-building activities, general Management Skills, reward and recognition
systems, promote desired behavior, must be achievable; apply to the project, cultural differences
recognition, place members in physical location, training – enhance skills, knowledge, and capabilities of
project team.

ROLES AND RESPONSIBILITIES OF STAKEHOLDERS

• Project Manager – plan, estimate and schedule of project

• Team – help prepare the WBS, Network Diagrams, and estimate time for tasks, complete tasks
• Senior Management – approve Overall project plan, budget and schedule and to approve any
changes that are made to those figures
• The person experiencing the problem must try to solve it themselves as long as means are in their
control

GUIDE TIPS
1. Conflict
• Inevitable consequence of organizational interactions
• Can be beneficial
• Resolved by identifying the causes and problem solving by people that are involved & their
immediate manager
• Nature of project
• Necessity for obtaining resources from functional managers

GUIDE TIPS
2. Avoid conflict
• Informing the team
• Clearly assigning tasks without ambiguity
• Challenging and interesting work assignments

GUIDE TIPS
3. Conflict Sources (in order of frequency)
• Schedules
• Project Priorities
• Resources
• Technical opinions
• Administrative Procedures
• Cost
• Personality

GUIDE TIPS
4. Motivational Theories
❖ Maslow’s Hierarchy of Needs – people work to get a chance to contribute and use their skills
• ‘self-actualization’

❖ McGregor’s Theory of X and Y

• X – people need to be watched every minute
• Y – people willing to work without supervision

❖ Herzberg’s Theory – poor hygiene factors destroy motivation but improving them will not
improve motivation
• Motivating Agents
▪ Responsibility
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▪ Self-actualization
▪ Professional growth
▪ Recognition

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CHAPTER 8
Project Quality Management

Project Quality Management: Processes required to ensure that the project will satisfy the
needs for which it was designed. Includes all activities of the overall management function that
determine the quality policy, objectives, and responsibilities. These are implemented by quality
planning, quality control, quality assurance, and quality improvement.



1. QUALITY PLANNING: Identifying quality standards that are relevant to the project (Plan) - Project
Manager, Project Owner.
Quality Planning is the degree to which project deliverables meet requirements". This general definition
places the focus on a need for well-defined requirements for project execution and deliverables. Quality
planning should occur as part of the development of project deliverable specifications and work planning.
Identification and characterization of quality as a basis for quality management procedures is helped by
reference to accepted standards. Consider taking a look at resources of the following organizations to get a
better understanding of accepted GIS-related standards:
Inputs to Quality Planning include the followings:
Quality Policy – the overall intentions and direction of an organization with regard to quality as
expressed by management for Scope Statement, Product Description and Standards and Regulations.
Other Process Outputs – processes from other knowledge areas (procurement planning)
Quality Management Plan – describes how team will implement its quality policy; describes the project
quality system – organizational structures, responsibilities, procedures, processes and resources needed
to implement quality management
Operational Definitions – defines how an item is measured by the quality control process. Also known
as Metrics.

2. QUALITY ASSURANCE : Evaluating overall project performance to provide confidence in which the
project will satisfy relevant quality standards (Implement or Execution)- Project Team

Quality Assurance includes all planned and systematic activities implemented within the quality system
to provide confidence that the project will satisfy quality standards
Quality Assurance (QA), references to tools and procedures used to assess adherence to specifications
and quality requirements after initial deliverable completion and in a final step to check and approve the
deliverables. QA checking should be performed as a separate step from deliverable
production/preparation and often by a separate group or people from those involved in deliverable
production.

3. QUALITY CONTROL: monitoring specific results to comply with quality standards and eliminating
unsatisfactory performance causes (Check or Control)- Project Manager, Project Team
It refers to the tools, processes, and range of automated and manual checks that are put in place to meet
quality requirements as deliverables are being prepared. The intent is to produce the deliverables that fully
meet standardized project specifications and quality requirements.

 Compatible with ISO 9000 and 10000 series 
•
 Proprietary and non-proprietary approaches (total quality management 
•
Must address the management of the project and the product of the project 
•
Checklists – structured tool used to verify that a set of required steps has been performed 
Other attributes of quality control includes:


• Includes project (deliverables) and management (cost and schedule performance) results
• Awareness of statistical quality control
•
Prevention (keep errors out of process) and inspection (keep errors from customers) 
•
Attribute sampling (result conforms) and variable sampling 
•
Special Causes (unusual events) and random causes 
•
Tolerances (acceptable range) and control limits (result falls within range) 

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CHAPTER 9
Project Communications Management

Project Communications Management


Project Communications Management: Processes to ensure timely and proper generation,

collection,

dissemination and disposition of project information 
4 main processes in Project communications management
 Communications Planning – determining informational needs, who needs what and when; 90%
of PM’s time is spent communicating 

  Information Distribution – making information available 
 Performance Reporting – collecting and disseminating project information 
  Administrative Closure – formalize project/phase completion 


COMMUNICATIONS PLANNING 


◦ Determining information requirements of stakeholders

◦ Tightly linked with organizational planning
◦ Communication requirements – sum of the information requirements of the stakeholders
 Define type and format of information with analysis of value of information 
  Project organization and stakeholder responsibility relationships 
 Disciplines, departments and specialties involved in project 
 Logistics of number of individuals at location 
  External communication needs (media) 
INFORMATION DISTRIBUTION – making information available in a timely manner by implementing
the communications plan; responding to requests for information 


◦ Work Results, Communication Management Plan and Project Plan 





Information Distribution 
◦ Communication Skills – used to exchange information. Sender is responsible for clarity;
receiver is responsible for receipt and understanding
◦ Information retrieval systems – filing systems, software
◦ Information distribution systems – meetings, correspondence, networked
databases, video/audio conferencing

◦ Project Records – maintained in an organized fashion

PERFORMANCE REPORTING 


◦ Collecting and disseminating performance indicators to provide stakeholders information how

resources are achieving project objectives. It includes:
◦ Status Reports (where project stands)
◦ Progress Reports (what has been accomplished)
◦ Trend Report (project results over time)
◦ Forecasting Report (projecting future status)
◦ Variance Report (actual results vs. planned)
◦ Project scope, schedule, cost and quality, risk and procurement


ADMINISTRATIVE CLOSURE 


◦ Projects/phases after achieving results or terminated require closure

◦ Verifying and documenting project results to formalize acceptance
◦ Collection of project records, analysis of effectiveness, reflect final specifications and archiving
of material
COMMUNICATION MODEL 


◦ Messages are encoded by sender and decoded by receiver based on receiver’s education,
experience, language and culture
 ◦ Sender should encode message carefully

Nonverbal 

Paralingual (pitch and tone) 


Active Listening – receiver confirms they are listening, confirms agreement and ask for
clarification 

Effective Listening–watching speaker, think before speaking, ask questions, repeat &
provide feedback

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 
COMMUNICATION METHODS 

◦ Choose the form of communication that is the best for the situation/project.
 
Formal Written – complex problems, All Plans, communicating over long distances 
 
Formal Verbal – Presentations, speeches 

Informal Written – memos, e-mail, notes 


Informal

Verbal – Meetings, conversations 
 
COMMUNICATION BLOCKERS 
◦ Noise, Distance, Improper en-coding, Hostility, Language, Culture


Communication Channels – communications grow at a linear rate 


◦ N (N-1)/2 where N = the number of people

◦ Example are: 4 people equals 6 communication channels.

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CHAPTER 10
Project Risk Management

Project Risk Management

This includes identifying, analyzing, and responding to risk areas; maximizing results of positive events
and minimizing consequences of adverse events. PRM has 6 processes.

• Risk Management Planning- deciding how to approach and plan the risk management activities for a
project.

Risk Identification– determining which risks are likely to affect the project and documenting their
characteristics.

• Qualitative Risk Analysis- performing a qualitative analysis of risks and conditions to prioritize their
effects on project objectives.

• Quantitative Risk Analysis– measuring the probability and consequences of risks and estimating their
implications for project objectives.

• Risk Response planning– developing procedures and techniques to enhance opportunities

and reduce threats to the project’s objectives.

• Risk monitoring and Control– monitoring residual risk, identifying new risks, executing risk
reduction plans.

Sources of Risk – categories of possible risk events, all-inclusive

• Changes in requirements
• Design errors, omissions, misunderstanding
• Poorly defined roles and responsibilities
• Insufficiently skilled staff
• Include estimate of probability, range of possible outcomes, expected timing, anticipated frequency
Potential Risk Events – discrete occurrences that may affect project
• New technologies obsolete need of product
• Socio, Political and Economic events
• Include estimate of probability, range of possible outcomes, expected timing, anticipated frequency
• Risk Symptoms – triggers that are indirect manifestations of actual risk events (e.g. poor morale).

Guide Tips
• Definition of risk: a discrete occurrence that may affect the project for good or bad
• Definition of uncertainty: an uncommon state of nature, characterized by the absence of any
information related to a desired outcome
• Definition of risk management: The process involved with identifying, analyzing, and responding to
risk. Maximize results of positive events; minimizing consequences of negative events

Guide Tips
Risk Management:
• All project background information
• Historical records
• Past Lessons Learned
• Project Charter
• Scope Statement
• Scope of work
• WBS

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• Network Diagram
• Cost and Time estimates
• Staffing Plan

Guide Tips
Risk Management Process
• Determination of top risks
• Opportunities to pursue
• Opportunities to ignore
• Threats to respond to
• Threats to ignore

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CHAPTER 11
Project Procurement Management

Processes required acquiring goods and services from outside the organization, to attain project scope,
from outside the performing organization. PPM is discussed from the buyer – seller relationship. The
relationship can exist at many levels on one project. Depending on the application area, the seller may
be called a subcontractor, a vendor, or a supplier. Buyer is the customer, thus a key stakeholder.

The 6 major processes of Project Procurement Management are:

1. Procurement planning
2. Solicitation planning
3. Source selection,
4. Solicitation
5. Contract administration
6. Contract closeout
Internal procurement does not always involve formal solicitation and contract

PROCUREMENT PLANNING
The first step is deciding which supplies and goods will need to be obtained from an outside source. Once
the project has been decided, a list of supplies needed to complete the project, is created. Once this is done,
the company will then specify what criteria the supplies need to meet such as timelines and specifications.
The following factors need to be considered in the procurement planning stage of any project
management:

• Identify project needs that can best be met by acquiring resources

• Consideration whether to procure, how to, how much, when to purchase and so on.
• Subcontractor decisions may provide flexibility
• Scope Statement – boundary for needs and strategies
• Product Description – broad technical issues, not to be confused with a statement of work
• Market Conditions – supply and demand, what services are available
• Other Planning Outputs – preliminary cost and schedule, quality management plans, cash flow,
WBS, risks, staffing
• Constraints – factors that limit buying options, Assumptions

PROCUREMENT DOCUMENTS – Used to solicit proposals from prospective sellers

• Bids, Request for Proposal, Request for Quotation, Contractor Initial Response, etc.
• Structure to receive complete and accurate responses
• Description of desired form of response and any required contractual provisions (e.g. non-
disclosure statements)
The document may be defined by regulation and also may be flexible to allow seller suggestions.

Evaluation Criteria – rate proposals; objective or subjective (previous experience)

• Price, Understanding of need by seller
• Overall/Life Cycle cost (purchase plus operating cost)
• Technical Capability, Management Approach and Financial Capacity

SOLICITATION PLANNING
• Preparing documents needed
• Procurement Management Plan
• Statement of Work, Expert Judgment
• Other Planning Outputs
• Standard Forms and Procedures

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SOLICITATION
• Obtaining information from prospective sellers
• Procurement Documents
• Qualified Seller Lists – preferred vendors
• Bidder Conferences – mutual understanding meetings
• Advertising – primarily with Government projects
• Proposals – seller prepared documents describing willingness and ability to provide the
service

SOURCE SELECTION
Once the supply list has been completed and specifications have been decided, it is time to reach out to
potential vendors and suppliers that can offer the items needed. This process can be done with
conferences and/or communication with potential suppliers so they are aware of the needs of the
company and are able to answer any questions. Bidders can then submit their proposals.

In most cases, some evaluation criteria are employed like price (lowest price may not always result in
lowest project cost), technical (approach) vs. commercial (price), multiple sourcing may also be needed
depending on the project. Other criteria using in selection includes proposals, organizational policies and
so on.

CONTRACT ADMINISTRATION
Ensuring that the seller’s performance meets contractual requirements of the project. A contract is ten
created that outlines all of the conditions of the relationship between the company and the supplier. It’s
the time when the timeframe is negotiated and decided so that the items are delivered on-time for project
completion deadlines. The project team must be aware of legal ramifications of all actions taken during
and after the project execution. They must apply project management processes to contractual
relationships and integrate outputs within the project.
• Project Plan Execution (authorize work)
• Performance Reporting (monitor cost, schedule)
• Quality Control (verify contractor’s output)
• Change Control
• Financial Management

CONTRACT CLOSE OUT

Contract closeout is the administrative procedure associated with the end of the business agreement with the
supplier and the archiving of documents in the contract file. Contract closeout occurs after the supplier has
successfully completed contract performance and has been accordingly compensated or when the contract is
terminated for default or convenience. The primary purpose of contract closeout is to ensure that the supplier
has complied with all contractual requirements and that the client’s needs have been met and fulfilled
1. Early termination is a special case
2. Contract terms and conditions may prescribe procedures.

Guide Tips
Project Manager’s role for procurement
1. Risk identification and evaluation
2. Work within the procurement process

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 PROJECT MANAGEMENT TRAINING GUIDE
Guide Tips
Procurement Process
1. Procurement Planning = Make or buy
2. Solicitation Planning = Request for Proposal
3. Solicitation = Questions and Answers
4. Source Selection = Pick vendor
5. Contract Administration = Admin
6. Contract Closeout = Finish

END

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