Chapter2-4 Project Management Framework

 project :
 Temporary endeavor with a beginning and an end
 Create a unique product ,service or result
 Done for a purpose
 Has interrelated activities
 Is progressively elaborated

 Program: is a group of projects managed in coordinated way.

 PMI defines stakeholders as :

 Project Manager
 Customer
 Performing Organization , government agencies
 Sponsor
 Team
 Internal / External
 End users
 Society, Citizens
 Others – owners, funders, sellers

 Stakeholder Management is made up of the following steps :

 Identifying stakeholders
 Assessing their knowledge and skills
 Analyzing the project to make sure their needs will be met
 Getting and keeping them involved in the project through assigning them work, using them as experts, reporting to them,
involving them in changes and the creation of lessons learned
 Getting their sign-off ad formal acceptance during closure

 Forms Of Organization
 Functional : (Power rests with the functional manager)
 Matrix : (In strong matrix, power rests with the project manager . In week matrix, power rests with the functional
manager . In a balanced matrix, the power is shared between the functional manager and the project manager .
 Projectized : All organization is by projects. The project manager has total control of projects. Personnel are assigned and
report to a project manager .

 Advantages and Disadvantages of each organizational form :

 Projectized
Advantages Disadvantages
Efficient project organization No "home" when project is completed
Loyalty to the project Lack of professionalism is disciplines
More effective communications than functional Duplication of facilities and job functions
Less efficient use of resources

 Matrix
Advantages
Highly visible project objectives
Improved project manager control over resources
More support from functional organizations
Maximum utilization of scarce resources
Better coordination
Better horizontal and vertical dissemination of information
than functional
Team members maintain a "home"
Disadvantages
Not cost effective because of extra administrative personnel
More then one boss for project teams
More complex to monitor and control
Tougher problems with resource allocation
Need extensive policies and procedures
Functional mangers may have different priorities than project
managers
Higher potential for conflict and duplication of effort

 Functional
Advantages
Easier management of specialists
Team members report to only one supervisor
Similar resources are centralized, companies are grouped
by specialties
Clearly defines career path in areas of work specialization
Disadvantages
People place more emphasis on their functional specialty to the
detriment of the project
No career path in project management
Project manager has no authority
 Chapter5 Integration Management

 Constraints: are factors that limit the project team's options.

 Lessons learned: is a document that talks about what was done right, wrong and what be done differently if the project could
be redone. It should cover three areas :
 Technical aspects of the project.
 Project management (how did we do with WBS creation, risk etc.?)
 Management (how did we do with communications and leadership as a project manager? )

 Project management information system (PMIS) : is an all-encompassing phrase to mean the system set up in advance that
keep the project manager informed of the status of all project tasks. A PMIS is critical to now what is really happening on the project
and the real status of the project . it may contain manual and automated tools , techniques and procedures including reporting
,meetings, management by walking around ,asking questions and using a Gantt chart.

 Project plan components :

Project charter Budget
Project management approach Schedule
Scope statement Resources
WBS Change control plan/system
Responsibility chart/assignments Performance measurement baselines
Network diagram/ major milestones Management plans (scope, schedule, cost, quality, staffing,
communications, risk response, procurement )

 Baseline : every time you see the word baseline, think of the original project plan with approved changes .

 Kickoff meeting : a meeting of all parties to the project (customers, sellers, project team, senior management, agencies,
functional management, sponsor). It is held at the end of the planning phase just before beginning work on the project .

 Work authorization system : a formal procedure for sanctioning project work to ensure that work is done at the right time
and in the proper sequence .

 Change control board : is formed to review change requests to determine if additional analysis is warranted . they also
approve or reject project changes. the board may include the project manager, customer, experts, sponsor ad others .

 Change control system : a collection of formal, documented procedures, paperwork, tracking systems and approval levels
for authorizing changes .

 The exam has many situational questions, dealing with hw to make changes.
For example :
A functional manger wants to make a change to the project .what is the first thing a project manager should do? Or , a senior manager
wants to make a change to the scope of work . what is the best thing to do first?
The answers are the same in either case . generally, the team should follow these steps :
1. evaluate (assess) the impact of the changes to the project
2. create (compute) alternatives including cutting other tasks, crashing, fast tracking, etc .
3. meet with management ,sponsor and internal stakeholders
4. meet with customer as necessary
 Chapter6 Scope Management

 Scope Management: Includes the processes required to ensure that the project includes all the work and only the work
required to complete the project successfully .It is primarily concerned with what is ad what is not in the project.

 Project Selection Methods :

1. Benefit Measurement method (comparative approach )
 Murder board – a panel of people who try to shoot down anew project idea
 Peer review
 Scoring models
 Economic models
 Benefit compared to cost
2. Constrained optimization methods (mathematical approach)
 Linear programming
 Integer programming
 Dynamic programming
 Multi-objective programming

 Project Charter Components :

 Project title and description (what is the project? )
 Project manager assigned and authority level (who is given authority to lead the project ,and can he
determine budget, schedule, staffing, etc. ?)
 Objectives (what numerical criteria related to the triple constraint will be used to measure project
success ?)
 Business case (why is the project done?)
 Product description / deliverables (what are the specific deliverables are wanted and what will be the end
result of the project ?)
 Signed and approved by
 Senior management (a person who is high enough in the organization to warrant everyone on the team to
him or her. )

 Constraints : factors that limit the team's options such as resources , budget, schedule and scope .

 Scope Statement : provides a basis for common understanding of the scope among the stakeholders and to determine if the
project phase has been completed .

 Scope management Plan : a document that describe how scope and scope changes will be managed .

 Management By Objectives (MBO) : A management philosophy that says an organization should be managed .It has three
steps :
1. Establish unambiguous and realistic objectives .
2. Periodically evaluate if objectives are being met
3. Take corrective action
 Delphi technique : A method most commonly used to obtain expert opinions on technical issues, scope of work needed,
estimates or risks .
To use Delphi technique, a request for information is sent to experts, the responses they return are compiled, and the results
are sent back to them for further review. The Delphi technique has three rules :
1. Do not get the experts in the same room
2. keep the experts identifies anonymous
3. Try to build consensus

 A WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project .

 Scope Definition and Decomposition : is subdividing the major project deliverables into smaller, more manageable
components. The best way to handle these terms is to think of scope definition and decomposition as what you are doing, and the
WBS as the tool to do it .

 Scope Verification : The process of formalizing acceptance of the project scope by the stakeholders .

 Scope verification focus is on the acceptance of the scope of the work while quality control involves analysis of the
correctness of the work .
 Chapter7 Time Management

 Scheduling Tools :
1. Milestone Charts
2. Flowcharts
3. Bar(Gantt) Chart
4. Network Diagram

Under what circumstances would you use a network To show interdependencies between tasks
diagram instead of a Gantt chart ?
Under what circumstances would you want to use a To report to senior management
milestone chart instead of a Gantt chart ?
Under what circumstances would you want to use a Gantt To track progress
chart instead of a network diagram ? To report to the team

 A network diagram is completed after the project charter ,project staffing and WBS .

 Methods to draw network diagrams :

1. Activity on Node (AON) or Precedence diagramming method (PDM) :
There can be 4 type of relationships between tasks :
Finish-to-start , Finish-to-finish , Start-to-start , Start-to-finish
2. Activity on Arrow (AOA) , Activity on Line or Arrow Diagramming Method (ADM)
This method uses :
• Only finish-to-start relationships between tasks
• May use dummy activities
• PERT and CPM estimating techniques can only be drawn on AOA diagram
3. GERT : A network diagram method that allows loops between tasks .

 Types Of Dependencies : The sequence of tasks depends on the following dependencies :

1. Mandatory Dependency (hard logic)
2. Discretionary dependency (Preferred , preferential or Soft logic ) ‫عقلني‬
3. External Dependency

 Estimating Methods :
1. CPM ( Critical Path Method ) :
It refers to estimating based on one time estimate per activity
2. PERT (Program Evaluation and Review Technique )
PERT formula : (P+4M+O)/ 6
Standard Deviation of a task using PERT : P-O/6
Variance of a task using PERT : (P-O/6)2
# in order to find standard deviation of a series of items ,there is a rule . You cant add standard deviations ; you must convert
standard deviations into variances and then take the square root of the total to convert back into standard deviation .
3. Monte Carlo Simulation .

 The critical path is the longest duration path through a network diagram and determines the shortest time to complete the
project .

 LAG : inserted waiting time between tasks

 SLACK ( FLOAT) : the a mount of time a task can be delayed without delaying the project .
Slack is found using either LS-ES or LF-EF . LS is the latest a task can start, ES is the earliest a task can start , LF
is the latest a task can finish and EF is the earliest a task can finish .

 The general definition of slack can be refined further to the following subcategories of slack :
1. Free Slack (float) : the a mount of time a task can be delayed without delaying the early start date of its successor .
2. Total Slack (float) : the amount of time a ask can be delayed without delaying the project completion date .
3. Project Slack(float) : the amount of time a project can be delayed without delaying the externally imposed project
completion date required by the customer or management , or previously committed to by project manager .

 Shortening the Schedule ( Duration compression ) :

 1. Re-Estimating
2. Crashing : Adding more resources to critical path tasks while maintaining scope
3. Fast Tracking : doing critical path tasks in parallel that were originally planned in series

 Resource Leveling : Leveling lets schedule and cost slip in favor of having a stable number of resources each month .

 Heuristics : means a rule of thumb

 Variance analysis : comparing actual dates with planned .

 Chapter8 Cost Management

 Inputs To Estimating : (or what do you need before you estimating cost or time ) :
1. WBS
2. Network Diagram
3. Schedule
4. Historical information
5. Resource pool
6. Risk management plan
7. Risks

 Resource Planning involve :

1. Review WBS
2. Identify potentially available resources
3. Review historical information a bout the use of resources in past or similar projects .
4. Review organizational policies on resource use
5. Solicit expert judgment on what resources are needed and available .
6. Quantify resource requirement by task
7. Develop a plan to what types of resources are needed , in what numbers , when

 Cost estimating methods :

1. Analogous ‫ متجانس ممتماثل‬estimating (top-down) :
top or middle managers use expert judgment or the actual time and cost of previous ,similar projects as the basis for estimating
the current project . analogous estimating is a form of expert judgment .
2. Bottom-Up estimating :
with this technique ,the people doing the work create cost and schedule estimates. Estimates ,based on the WBS ,are rolled up to
get a project total
3. Parametric Estimating : .
Use a mathematical model to predict project costs and it has two types :
• Regression ‫ تقهقر‬، ‫( انحسار‬or scatter diagram )
• Learning curve – the 100th room printed will cost less than the first room because of improved efficiency .
4. Computerized estimating tools


Advantages of analogous estimating Disadvantages
Quick Less accurate
Tasks need not be identified Estimates prepared with a limited amount of detailed
information and understanding of the project
Less costly to create Requires considerable experience to do well
Gives the project manager an idea of the level of Infighting at the highest management levels to gain the
management's expectations biggest piece of the pie without knowing what the pie is
Overall project costs will be capped Extremely difficult for projects with uncertainty

Advantages of bottom-up estimating Disadvantages

More accurate Takes time and expenses to do this form of estimating
Gains buy-in from the team Tendency for the team to pad estimates
Based on a detailed analysis of the project Requires that the project be defined and understood
Provides a basis for monitoring and control Team infighting to gain the biggest piece of the pie

 EARNED VALUE ANALYSIS

Acronym Term Interpretation Arabic
PV Planned Value What is the estimated value of the work ‫ما هي القيمة المقدرة للعمل المخطط له ؟‬
planned to e done ? Budgeted cost
EV Earned Value What is the estimated value of the work ‫ما هي القيمة المقدرة للعمل المنجز فعليا ؟‬
actually accomplished ? Budgeted cost
AC Actual Cost What is the actual cost incurred ? ‫ما هي التكلفة الفعلية ؟‬
BAC Budget at How much did we budget for the total job ? ‫ما هي الميزانية لكل العمل ؟‬
Completion
EAC Estiamte at What do we currently expect the total ‫ما هي التكلفة المتوقعة لكل العمل ؟‬
Completion project to cost ?
 ETC Estimate to From this point on,how much more do we ‫من هذه النقطة كم تتوقع التكلفة لكمال العمل ؟‬
complete expect it to cost to finish the job ?
VAC Varience at How much over or under budget do we ‫ تحت الميزانية ؟‬/ ‫ما هو المتوقع بالنسبة لتكون فوق‬
completion expect to be at the end of the project ?

Name Formula Interpretation

Cost Variance (CV)
Schedule Variance (SV)
Cost Performance Index
(CPI)
Schedule performance
Index (SPI)
Estimate at completion
(EAC)
Note : There are many
ways to calculate EAC.
The first formula to the
right is the one most often
asked on the exam
Estimate to Complete
(ETC)
Variance at completion
EV-AC Negative is over budget ,positive is under budget
EV-PV Negative is behind schedule , positive is a head of schedule
EV / AC We are getting $____________out of every $1
EV / PV We are [only] progressing at ______% of the rate originally
planned .
As of now how much do expect the total project to cost ?
$_____ .
BAC / CPI • Used if no variances from the BAC have
occurred or you will continue at the same rate of
AC + ETC spending
AC + BAC – EV
• Actual plus a new estimate for remaining
work. used when original estimate was fundamentally
flawed.
AC + (BAC-EV) / CPI • Actual to date plus remaining budget .used
when current variances are thought to be a typical of
the future
• Actual to date plus remaining budget
modified by performance. used when current
variances are thought to be typical of the future .
EAC – AC How much more will the project cost ?
BAC – EAC How much over budget will we be at the end of the project ?

Today
Original
Plan PV BAC

AC ETC EAC

Old Term Old Acronym New Acronym

Budgeted Cost of work scheduled BCWS PV
Budgeted cost of work performed BCWP EV
Actual cost of work performed ACWP AC

Revise Page 141 of ritta Book

 Accuracy of estimates : there is three levels :

1. order of magnitude estimate : this type of estimate is usually made during the initiating phase and is in the range of -25% to
+75% from actual .
2. Budget estimate : this type of estimate is usually made during the planning phase and is in the range of -10% to +25% from
actual
3. Definitive estimate : this type of estimate is also made during the planning phase and is in the range of -5% to + 10% from
actual.

 Present Value : means the value today of future cash flows and can be found by the formula :
PV = FV / (1+r)n
FV : future value r: interest rate n : number of time periods

 Net Present Value (NPV) :means the present value of the total benefits (income or revenue ) less the costs .
You have two projects to choose from .project A will take three years to complete and has an NPV of US $45000. project B will take
six years to complete and has an NPV of US $85000 which one would you prefer ?
The answer is project B

 Internal Rate of Return (IRR) :

You have two projects to choose from : project A with an IRR of 21% or Project B with an IRR of 15% which one you would prefer ?
the answer is project A

 Benefit Cost Ratio (BCR) : compares the benefits to the costs of different projects where benefits are the same as revenue, or
sometimes referred to as "payback" . Remember that revenue is not the same as profit . a BCR of >1 means the benefits are greater
than the costs . a BCR of <1 means the costs are greater than the benefits . a BCR of 1 means the costs and benefits are the same .

 Opportunity Cost : The opportunity given up by selecting one project over another .
You have two projects to choose from : Project A with NPV of US$ 45,000 or Project B with an NPV of US$
85,000 what is the opportunity cost of selecting project B ?
The answer is $45,000

 Print Page 148 , 149 and attach them

Chapter9 Quality Management

 Print Page 168 , 169 and attach them

 Impact of Poor Quality :

1. Increased Costs
2. Low morale ‫حكمة‬
3. lower customer satisfaction
4. Increased risk


Cost Of Conformance Cost Of Non Conformance
Quality training Rework
Studies Scrap
Surveys Inventory costs
Warranty costs

 Tricks for understanding the difference between quality planning ,assurance, and control
Quality Planning Quality Assurance Quality Control
Plan Implement ,check overall Measure details
What quality standards should we What lessons can we find to Let's measure (test) the
use on the project ? improve quality – quality audit ? number of errors in the
Tricks to program .
understand the How will we meet those standards Let's take the outputs of quality
difference control measurement and see if Let's measure schedule
we will meet the overall quality performance.
standards.
Did we meet the specific
Are our quality standards still quality standards ?
appropriate ?
Mostly done
during Planning Executing controlling

 Quality planning includes :

1. identifying quality standards relevant to the project and determining how to satisfy them
2. Benchmarking
3. Benefit/Cost analysis
4. flowchart
5. design of experiments
6. cost of quality
7. fishbone diagram

 Quality Assurance includes:

1. the process of evaluating overall performance on a regular basis to provide confidence that the project will satisfy the
relevant quality standards
2. re-evaluating quality standards , methods and procedures used on the project
3. quality audits – a structured review of quality activities that identifies lessons learned .

 Quality Control Tools :

1. Inspection
2. Pareto diagram
3. Fishbone diagram
4. Checklists
 5. Statistical sampling
6. control charts
7. Flowcharting
8. Trend analysis

 Review page 175 for Control Chart

Chapter10 Human Resource Management

 Print Page 191 , 192 , 193

 Human Resource Responsibilities for Project Managers :

1. creating a project team directory
2. negotiating with resource managers for best resources
3. creating project job descriptions for team members and other stakeholders
4. understanding the team's and other stakeholders needs for training related to their work on the project and making sure they
get the training
5. creating a formal plan for team , management and other stakeholders ; how they will be involved in the project and what
roles they will perform – a staffing management plan

 Responsibility Chart :
1. Responsibility Matrix : this chart cross-reference team members with tasks they are to accomplish
2. Resource histogram :Is a graph that shows the number f resources used each month and is displayed in a bar chart format.
3. Resource Gantt chart . : Shows WHEN staff is allocated to tasks

 Halo Effect : The tendency to rate high or low on all factors due to impression of a high or low rating on some specific
factor. This can mean " you are a great programmer therefore we will make you a project manager and also expect you to be great "

 Powers Of Project Manager :

1. Formal (legitimate) ‫شرعي قانوني‬
2. Reward
3. Penalty (coercive) ‫قهري قسري‬
4. Expert
5. Referent (‫)مرجعية واسطة‬

 Leadership styles :
1. Directing : Telling others what to do
2. Facilitating : Coordinating the input of others
3. Coaching : Instructing others
4. Supporting : Providing assistance along the way
5. Autocratic ‫ استبدادي‬making decisions without input
6. Consultative : Inviting ideas from others
7. Consensus ‫ اجماع‬Problem solving in a group with decision making based on group agreement >

 Print 200,201,202,203 and attach them

 Chapter11 Communications Management

 The following terms sometimes show up on the exam :

1. Nonverbal : about 55% of all communications are nonverbal ( e.g. based on physical mannerisms )
2. Para lingual : means the pitch and tone of your voice .this also help to convey a message
3. Active Listening : The receiver confirms that she is listening ,confirms agreement and asks for clarification .
4. Effective listening : watching the speaker to pic up physical gestures ‫ ايماءات‬and facial ‫ حركات الوجه‬expressions, thinking
about what you want to say before responding asking questions repeating and providing feedback .
5. feedback : saying things like " Do you understand what I have explained " usually asked be the sender .


Communications Method When used
Formal written Complex problems , project plans , project charter ,
communicating over long distances
Formal verbal Presentations , speeches
Informal written Memos , email , notes
Informal verbal Meetings , conversations

 Communication Blockers :
1. Noise
2. Distance
3. Improper encoding of messages
4. Saying "that is a bad idea "
5. Hostility ‫عداء خصومة‬
6. Language
7. Culture

 Communication Channels :
N x (N-1) /2 where N equals the number of people

 Performance reporting :
1. Status report : describing where the project now stands .
2. Progress report : describing what has been accomplished .
3. Trend report : examining project results over time to see if performance is improving and deteriorating
4. forecasting report : predicting future project status and performance .
5. variance report : comparing actual results to planned .
6. earned value : integrating scope , cost and schedule measure to assess project performance .

 All projects must be closed out no matter the circumstances under which they stop , are terminated or complete . if the
project involves contracts , contract close out should occur before administrative closure .

 What activities are done during closure ?

1. Product verification
2. Financial closure
3. Lessons learned
4. Update records
5. Final project performance reporting
6. project archives
 Chapter12 Risk Management

 Definition of Risk or Risk event : a discrete occurrence that may affect the project for good or bad .

 Risk Factors :
1. The probability that it will occur (what)
2. The range of possible outcomes (impact or amount at stake )
3. Expected timing (when) in the project life cycle
4. Anticipated frequency of risk events from that source (how often )

 Risk averse ‫ كاره‬: some one who does not want to take risks .

 Risk Tolerances : The amount of risk that is acceptable ( tolerance level ) .for example " a risk that affects our reputation
‫ سمعة‬will not be tolerated " or " a risk of two weeks delay is okay but nothing more .

 A risk management plan may include :

1. Methodology
2. Roles and responsibilities : non team members may be included
3. Budgeting for risk management process
4. Timing : hoe often the risk process will be performed throughout the project
5. scoring and interpretation
6. Thresholds : a method to determine which risks will and will not be acted upon
7. Reporting formats
8. Tracking

 Risk Categories : New

1. Technical , quality or performance risks
2. Project management risks
3. organizational risks
4. external risks

 Risk Categories : Old

1. External : regulatory , environmental , government , market shifts
2. Internal : Time , Cost , unforeseen conditions , scope changes , inexperience , poor planning , people , staffing , materials ,
equipment
3. Technical : Changes in technology
4. Unforeseeable : Only a small portion of risks ( some say a bout 10% ) are actually unforeseeable .
 Information-Gathering Techniques :
1. Brainstorming
2. Delphi technique
3. Interviewing
4. Strengths , weaknesses , opportunities and threats analysis

 Types Of Risk :
 1. Business : Risk of a gain or loss
2. Pure ( Insurable ) risk : Only a risk of loss ( e.g. fire ,theft , personal injury )

 Risk Triggers : (Symptoms ‫ )علمات اشارات‬: A PM should determine what are the early warning signs for each risk on a
project so that they will understand when to take action .

 Expected Monetary Value (or Expected Value ) : The product of two numbers , probability and consequences ( impact or the
amount at stake )

 Revise decision tree page 238

 Risk Response Strategies :

1. Avoidance
2. Mitigation ‫تخفيف‬
3. Acceptance
4. transference ( Deflection , Allocation )

 Print page 242

 Contingency Plans ‫ خطة طوارىء‬Planned response to risks or putting in place the contingency plans set up during risk
response planning

 Workarounds : unplanned responses to risks or dealing with risks that you could not or did not anticipate .

Chapter13 Procurement Management

 General Rules :
1. A contract is a formal agreement
2. All requirements should be specifically stated in the contract .
3. All contract requirements must be met
4. changes must be in writing and formally controlled
5. Most governments back all contracts by providing a court system for dispute resolution .

 Project manager role in procurement :

1. Identify risks and incorporate mitigation and allocation of risks into the contract
2. Help tailor the contract to the unique needs of the project .
3. Fit the schedule for completion of the procurement process into the schedule for the project .
4. Be involved during contract negotiation
5. Protect the integrity of the project and the ability to get the work done
6. Protect the relationship with the seller

 The Procurement Management Process

STEP What happens during What do you have when you are done
"BUZZWORDS"
1. Procurement planning Make or Buy Make or by , contract type selected , scope of
work drafted
2. Solicitation planning RFP created RFP ready
3. Solicitation Q&A Proposal created
4. Source selection Pick one Contract signed
5. Contract Administration Admin Substantially complete
6. Contract closeout Finish Done

 Print pages 262 , 263 , 264 , 266 , 267

 The difference between administrative closure and contract closeout :

1. Contract closeout occurs first. All contracts would be closed out before the project is closed out . Therefore, at the end of the
contract, the project manager would perform a procurement audit for each contract . administratively close out the contract , and
then administratively close out the project when the whole project is completed .
2. Administrative closure may be done at the end of each project phase and at the end of the project as a whole. Contract close
out is done only once , at the end of the contract .
3. Administrative closure uses the term " lessons learned " and contract closeout uses the term " procurement audit "
4. Contract closeout requires more documentation tan administrative closure .
 Chapter14 Professional Responsibility

 Professional Responsibility means :

1. Do the right thing
2. Follow the right process
3. Act ethically , fairly and professionally
4. Watch for conflicts of interests or the appearance of conflicts of interest
5. Report violations
6. Increase knowledge and practices
7. Deal with problems

 Professional responsibilities breaks down into the following categories :

1. Ensure individual integrity
2. Contribute to the project management knowledge base
3. Enhance individual competence
4. Balance stakeholders interests
5. Interact with team and stakeholders in professional and cooperative manner