PMP On-Demand Course Slides - PMP Training & Exam...
Transcript of PMP On-Demand Course Slides - PMP Training & Exam...
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PMP On-Demand Course Slides Based on the PMBOK® Guide Fifth Edition
Course ID: PMTONDEMAND35 Contact Hours / PDUs: 35
For more information on project management certification training, please visit www.PMTraining.com
PMP 2016 Exam Prep
Course ID: PMTONDEMAND35
Contact Hours / PDUs 35
Course Structure
Application & Exam
Types of Questions
PM Basics
Ten Knowledge Areas
Professional Responsibility
Practice Exams
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PMP Application & Exam
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PMP Application & Exam
What do the letters PMP mean?
• Project Management Professional.
What are the benefits of being a PMP?
• Higher income potential.
• Shows knowledge of international standards.
• Is required by a growing number of employers.
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PMP Application & ExamHow Do I Become A PMP?
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WorkExperience
ContactHours
ApplicationSubmission
90 Days
ApplicationCompleteness
Review
ApplicantPaymentProcess
Pass Exam(1 year)
ReceiveCertification
PMP
PMP Application
Applying online is the fastest way
http://www.pmi.org/certification/project‐management‐professional‐pmp.aspx
Mailing Address
PMI Certification Department
Fourteen Campus Boulevard
Newtown Square, PA. 19073
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PMP Exam
DomainPercentage of Questions
Initiation 13%
Planning 24%
Executing 31%
Monitoring & Controlling 25%
Closing 7%
Total Number of Scored Questions 175
Total Number of Unscored Questions 25
Total Questions on Exam 200
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PMP ExamTask Initiating – 13%
Task 1 Perform project assessment based upon available information, lessons learned from previous projects, & meetings with relevant stakeholders in order to support the evaluation of the feasibility of new products or services within the given assumptions and/or constraints.
Task 2 Identify key deliverables based on the business requirements in order to manage customer expectations & direct the achievement of project goals.
Task 3 Perform stakeholder analysis using appropriate tools & techniques in order to align expectations & gain support for the project.
Task 4 Identify high level risks, assumptions, & constraints based on the current environment, organizational factors, historical data, & expert judgment, in order to propose an implementation strategy.
Task 5 Participate in the development of the project charter by compiling & analyzing gathered information in order to ensure project stakeholders are in agreement on its elements.
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PMP Exam
Task Initiating – 13%Task 6 Obtain project charter approval from the sponsor, in order to formalize the
authority assigned to the project manager & gain commitment & acceptance for the project.
Task 7 Conduct benefit analysis with relevant stakeholders to validate project alignment with organizational strategy & expected business value.
Task 8 Inform stakeholders of the approved project charter to ensure common understanding of the key deliverables, milestones & their roles & responsibilities.
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PMP ExamTask Planning – 24%
Task 1 Review & assess detailed project requirements, constraints, & assumptions with stakeholders based on the project charter, lessons learned, & by using requirements gathering techniques in order to establish detailed project deliverables.
Task 2 Develop a scope management plan, based on the approved project scope & using scope management techniques, in order to define, maintain, & manage the scope of the project.
Task 3 Develop the cost management plan based on the project scope, schedule, resources, approved project charter & other information, using estimating techniques, in order to manage project costs.
Task 4 Develop the project schedule based on the approved project deliverables & milestones, scope & resource management plans in order to manage timely completion of the project.
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PMP Exam
Task Planning – 24%Task 5 Develop the human resource management plan by defining the roles &
responsibilities of the project team members in order to create a project organizational structure & provide guidance regarding how resources will be assigned & managed.
Task 6 Develop the communications management plan based on the project organizational structure & stakeholder requirements, in to define & manage the flow of project information.
Task 7 Develop the procurement management plan based on the project scope, budget, & schedule, in order to ensure that the required project resources will be available.
Task 8 Develop the quality management plan & define the quality standards for the project and its products, based on the project scope, risks & requirements, in order to prevent the occurrence of defects & control the cost of quality.
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PMP ExamTask Planning – 24%
Task 9 Develop the change management plan by defining how changes will be addressed & controlled in order to track & manage change.
Task 10 Plan for risk management by developing a risk management plan; identifying, analyzing, & prioritizing project risk; creating the risk register; & defining risk response strategies in order to manage uncertainty & opportunity throughout the project life cycle.
Task 11 Present the project management plan to the relevant stakeholders according to applicable policies & procedures in order to obtain approval to proceed with project execution.
Task 12 Conduct kick‐off meeting communicating the start of the project, key milestones, & other relevant information in order to inform & engage stakeholders & gain commitment.
Task 13 Develop the stakeholder management plan by analyzing needs, interests, & potential impact in order to effectively manage stakeholders’ expectations & engage them in project decisions.
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PMP ExamTask Executing – 31%
Task 1 Acquire & manage project resources by following the human resource & procurement management plans in order to meet project requirements.
Task 2 Manage task execution based on the project management plan by leading & developing the project team in order to achieve project deliverables.
Task 3 Implement the quality management plan using the appropriate tools & techniques in order to ensure that work is performed in accordance with required quality standards.
Task 4 Implement approved changes & corrective actions by following the change management plan in order to meet project requirements.
Task 5 Implement approved actions by following the risk management plan in order to minimize the impact of the risks & take advantage of opportunities on the project.
Task 6 Manage the flow of information by following the communications plan in order to keep stakeholders engaged & informed.
Task 7 Maintain stakeholder relationships by following the stakeholder management plan in order to receive continued support & management expectations.
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PMP ExamTask Monitoring & Controlling – 25%
Task 1 Measure project performance using appropriate tools & techniques in order to identify & quantify any variances & corrective actions.
Task 2 Manage changes to the project by following the change management plan in order to ensure that project goals remain aligned with business needs.
Task 3 Verify that project deliverables conform to the quality standards established in the quality management plan by using appropriate tools and techniques to meet project requirements and business needs.
Task 4 Monitor & assess risk by determining whether exposure has changed & evaluating the effectiveness of response strategies in order to manage the impact of risks & opportunities on the project.
Task 5 Review the issue log, update if necessary, & determine corrective actions by using appropriate tools & techniques in order to minimize the impact on the project.
Task 6 Capture, analyze, & manage lessons learned, using lessons learned management techniques in order to enable continuous improvement.
Task 7 Monitor procurement activities according to the procurement plan in order to verify compliance with project objectives.
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PMP ExamTask Closing – 7%
Task 1 Obtain final acceptance of the project deliverables from relevant stakeholders in order to confirm that project scope & deliverables were achieved.
Task 2 Transfer the ownership of deliverables to the assigned stakeholders in accordance with the project plan in order to facilitate project closure.
Task 3 Obtain financial, legal, & administrative closure using generally accepted practices & policies in order to communicate formal project closure & ensure transfer of liability.
Task 4 Prepare & share the final project report according to the communications management plan in order to document & convey project performance & assist in project evaluation.
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PMP ExamTask Closing – 7%
Task 5 Collate lessons learned that were documented throughout the project & conduct a comprehensive project review in order to update the organization’s knowledge base.
Task 6 Archive project documents & materials using generally accepted practices in order to comply with statutory requirements & for potential use in future projects & audits.
Task 7 Obtain feedback from relevant stakeholders using appropriate tools & Techniques & based on the stakeholder management plan in order to evaluate their satisfaction.
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PMP Exam
Must get 61% or better
There is no penalty for wrong answers
Fees:
PMI members pay $405
Non‐members pay $555
Each applicant has one (1)
year to take exam
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PMP Exam The exam is NOT based on the PMBOK Guide®.
The exam requires more than memorization.
Almost half of the exam requires you to identify what you would do in a given situation.
The exam emphasizes the five (5) process groups, ten (10) knowledge areas and 47 processes.
Exam requires you to answer the questions from PMI’s perspective based on the RDS.
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PMP Exam Rarely will the answer be a direct quote from the PMBOK Guide.
Questions can be series based, i.e. you must answer the first question correctly to answer the next three (3) or four (4) questions.
A small percentage of the questions will be based on the inputs and outputs from the PMBOK Guide.
Earned Value, Critical Chain, PERT, EMV, and CPM will almost certainly be on the test.
Approximately 10%‐15% of the exam will require the use of other formulas.
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Types of Exam Questions
Types of Questions
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Two Right Answers Remember, what would you do first.
Made up Terms Failing to know the key terms &
acronyms will = failure.
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Types of QuestionsSituational Questions
Jun is a project coordinator for a large textile company. She is currently working on three separate projects and most of her resources are also not dedicated to only one project. One day she receives an e-mail from one of her customers complaining that one of her projects is largely failing to deliver what the customer had expected and they are likely going to be canceling the contract. What is the most likely cause of this problem?
A. The customers in question were not involved early enough in the process.
B. Customer sign-off was not obtained for the scopestatement.
C. Scope definition happened too late in the process.D. The customer did not read their e-mail.
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Types of QuestionsExtraneous Information
You are the project coordinator for a project that currently has a CPI of .93 and an SPI of 1.09. Your project has an EV of $101,197 and an ETC of $247,000. You are more than halfway through your project. Your sponsor has just requested a major shift in project scope what should you do?
A. Try to convince the sponsor to change their mind.B. Agree to implement the changes immediately.C. Evaluate the changes for impacts to the cost and
schedule.D. Stop the project until the issue is resolved.
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Types of Questions
Understanding vs. Memorization A new project manager is complaining to a coworker about the development methodology they are being forced to use. The coworker suggests the project manager make more use of a work breakdown structure. Which of the following statements best justifies this recommendation?
A. The WBS is a great communication tool.
B. The WBS shows the relationships between resources and deliverables.
C. The WBS shows the relationships between functional managers and resources.
D. The WBS allows for progressive elaboration using placeholder workpackages.
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Recurring ThemesPMI’isms
There is a basic assumption that you keep historical records for all your projects.
You must understand the process of project management (what to do first, second, etc.).
You must not only understand the topics, but also why you should care about them.
Everything should be coordinated with the stakeholders of a project and expectations managed.
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Recurring ThemesPMI’isms
All roles and responsibilities must be clearly defined.
A project plan is not a Gantt chart.
A WBS is not an org chart but is a wonderful and key element of successful project management.
Project managers are awesome and are very skilled.
PMI does not support gold plating (adding extra functionality).
Expert judgment and bottoms up is preferred.
Environmental factors are influencing the project.2/9/2016 v. 8.0 - © Copyright and all rights reserved –
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The Exam – Why People Fail Belief that they can pass the test from their experience (not studying).
A lack of PM experience.
Failure to read the questions.
Failure to read all of the choices.
Not trusting their knowledge.
Nervousness.
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Organizations and Project Management
Organizations
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Differentiation vs. IntegrationThe need for specialized areas ofexpertise (Production,Marketing, Finance, etc.). Thelevel of differentiationhinges on the needs of theorganization.
The need for coordinated andcross-functional efforts to accomplish organizational tasks.
Organizations
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ProjectCoordinator
Accounting Dept.
Chief Executive
Sales Dept. Marketing Dept. Engineering Dept.
Employee 1
Employee 2
Employee 3
Employee 4
Employee 5
Employee 6
Employee 7
Employee 8
Employee 9
Employee 10
Employee 11
Employee 12
A Functional Organization
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OrganizationsPotential Advantages of a Functional
Organization Clear reporting relationships.
Highly specialized expertise.
Homogeneous groups.
Drive for technical excellence.
Clear career path.
Creates high quality organizational knowledge within the functional area.
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OrganizationsPotential Issues with a Functional
Organization Conflicting priorities from overlapping projects.
Project boundaries limited to discipline.
Barrier to customer influence & satisfaction.
Employee development opportunities limited.
Project Manager is dependent on personal influence.
Hierarchical decision and communication processes.
Overwork technical issues vs. build to a standard.
Fosters part‐time roles.
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Organizations
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Chief ExecutiveOr Program Mgr.
Project 1 Project 2 Project 3
Accounting Staff Accounting Staff Accounting Staff
Sales Staff Sales Staff Sales Staff
Marketing Staff Marketing Staff Marketing Staff
Engineering Staff Engineering Staff Engineering Staff
A Projectized Organization (PBO)
Project Manager Project Manager Project Manager
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OrganizationsPotential Advantages of a Projectized
Organization Strong project manager role.
Full‐time administrative staff clear accountability.
Fosters collocation.
Improves focus.
Cost & performance tracking of projects.
Decision‐making based on overall project view.
Customer relationships tied to various projects
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OrganizationsPotential Issues with a Projectized
OrganizationReduction of employee’s professional identity.
Reduced focus on technical competence.
Leadership by the non‐technically skilled.
Focus on administrative work vs. technical work.
De‐valuing of functional managers.
Process vs. deliverable emphasis.
Creates redundancy of efforts.
Project end can be traumatic event.
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OrganizationsThe Matrix Organization
Are a blend of Functional and Projectizedorganizations.
They are described as WEAK if they moreclosely align to Functional Organizations.
They are described as STRONG if they moreclosely align to Projectized Organizations.
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Organizations
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A Weak Matrix OrganizationChief Executive
Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.
Employee 1
Employee 2
Employee 3
Employee 4
Employee 5
Employee 6
Employee 7
Employee 8
Employee 9
Employee 10
Employee 11
Employee 12
ProjectCoordinator Resources Assigned to a Given Project
Organizations
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A Balanced Matrix OrganizationChief Executive
Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.
Employee 1
Employee 2
Employee 3
Employee 4
Employee 5
Employee 6
Employee 7
Employee 8
Employee 9
Employee 10
Employee 11
Project Mgr
Resources Assigned to a Given Project
Organizations
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A Strong Matrix OrganizationChief Executive
AccountingDept.
SalesDept.
EngineeringDept.
Mgr of ProjectManagers (PMO)
Employee 1
Employee 2
Employee 3
Employee 4
Employee 5
Employee 6
Employee 7
Employee 8
Employee 9
Project Mgr 1
Project Mgr 2
Project Mgr 3
Resources Assigned to a Given Project
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OrganizationsPotential Advantages of a Matrix
OrganizationVisibility to project objectives.
Improved control of resources by project managers.
Rapid response to contingencies.
Greater support from functional managers.
Coordination of efforts across organization.
Project end is not a traumatic event.
Strong technical base.
More effective dissemination of information.
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OrganizationsPotential Issues with a Matrix
OrganizationProject personnel report to more than one boss.
Complex to monitor and control.
Conflicts with resource allocation and projectpriorities.
Potential for duplication of effort with“independent” projects.
Power struggles and competition for scarceresources.
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Organizations
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Functional Projectized
Project Manager’s Authority Little or None Limited
Low to Moderate
Moderate to High
High to Almost Total
Resource Availability Little or None LimitedLow to
ModerateModerate to
HighHigh to Almost
Total
Who Controls The Project budget
Functional Manager
Functional Manager Mixed
Project Manager Project Manager
Project Manager’s Role Part‐Time Part‐Time Full‐Time Full‐Time Full‐Time
Common Titles For Project Manager’s Role
Project Coordinator/ Project Leader
Project Coordinator/ Project Leader
Project Manager/ Project Officer
Project Manager/ Program Manager
Project Manager/ Program Manager
Project Management Administrative Staff Part‐Time Part‐Time Part‐Time Full‐Time Full‐Time
ProjectCharacteristics
Weak Matrix
Balanced Matrix
Strong Matrix
Organizational StructuresOrganization
Structure
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The Basics of Project Management
The Basics of PM
What is Project Management? The management of a temporary endeavor undertaken to create a unique product or service.
It requires the project team to deliver the agreed upon service or product with the agreed upon functionality on time and on budget with the agreed upon level of quality.
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The Basics of PM
Projects Have unique charter & goals
Might have unique organization
Develops a unique product or service
Defined start & end dates
Mostly heterogeneous teams
Operations Usually has semi‐permanent
charter
Semi‐permanent organization
Maintains an existing set ofpractices
Provides a standard product or service (e.g. an assembly line)
Are continuous
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The Basics of PM
A program is a group of related projectsmanaged in a coordinated way to obtainbenefits and control.
A portfolio is a grouping of related andunrelated projects and programs managed &grouped for visibility and control purposes.
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Organizational Project Management
Projects Programs Portfolios
ScopeProjects have defined objectives. Scope is progressively elaborated throughout the project lifecycle.
Programs have a larger scope and provide more significant benefits.
Portfolios have an organizational scope that changes with the strategic objectives or the organization
Change
Project managers expect change & implement processes to keep change managed & controlled.
Program managers expect change from both inside & outside the program & are prepared to manage to it.
Portfolio managers continuously monitor changes in the broader internal & external environment.
Planning
Project managers progressively elaborate high‐level information into detailed plans throughout the project lifecycle.
Programmanagers develop the overall program plan & create high‐level plans to guide detailed planning at the component level.
Portfolio managers create & maintain necessary processes & communication relative to the aggregate portfolio.
Management
Project managers manage the project team to meet the project objectives.
Program managers manage the program staff & the project managers; they provide vision & overall leadership.
Portfolio managers may manage or coordinate portfolio management staff, or program and project staff that may have reporting responsibilities into the aggregate portfolio,
Success
Success is measured by product &project quality, timeliness, budget compliance, & degree of customer satisfaction.
Success is measured by the degree to which the program satisfies the needs & benefits for which it was undertaken.
Success is measured in terms of the aggregate investment performance & benefit realization of the portfolio.
Monitoring
Project managers monitor & control the work of producing the products, services, or results that the project was undertaken to produce.
Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, & benefits of the program will be met.
Portfolio managers monitor strategic changes & aggregate resource allocation, performance results, & risk of the portfolio,
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The Basics of PMKey Terms
Project Management Office (PMO) —Centralizes the management of projects. Typical 3 structures:Supportive – Providing a consultative role by providing templates, best practices, training, access to information, & lessons learned.
Controlling – Provide support & require compliance.
Directive – Take control of the projects by directly managing the projects.
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The Basics of PMKey Terms
Management by Objectives (MBO) — Requires allprocesses, initiatives and operations to be trackedagainst specific, defined objectives. MBO only worksif management strongly supports it. MBO has threebasic steps:
– Establish unambiguous and realistic objectives.
– Regularly evaluate if the objectives are being met.
– Implement corrective action.2/9/2016 v. 8.0 - © Copyright and all rights reserved –
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The Basics of PMKey Terms
Work Performance Data — The raw observations &measurements identified during activities performed to carry out project work: % work physically completed, start & finish dates & technical measures.
Work Performance Information – The performance data collected from controlling processes: status ofdeliverables, status of change requests, forecasted ETC.
Work Performance Reports – The physical orelectronic representation of work performanceinformation.
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The Basics of PMKey Terms
Project Life Cycle — A series of phases that aproject passes through from its initiation toits closure. It provides the basic frameworkfor managing the project.
Project Phases – Represent a collection oflogically related project activities thatculminate in the completion of one or moredeliverables.
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The Basics of PMKey Terms – Life Cycles
Predictive — Also known as fully plan driven, areones where the scope, time & cost aredetermined as early as possible – Waterfall.
Iterative & Incremental – Project phasesintentionally repeat one or more project activitiesas the team’s understanding increases.
Adaptive – Change driven or agile are intended torespond to high levels of change & stakeholderinvolvement with fixed time & cost.
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The Basics of PMKey Terms
Constraints — Represent factors that limit options of the project manager and project team. • Common constraints include time, budget, requirements, resources and/or risks.
• Management’s responsibility to set the priority of each constraint.• Project manager and project team’s responsibility to analyze the impacts of changes against the project constraints.
Organizational Project Management Maturity Model (OPM3) — Is PMI’s model to help organizations determine their level of project management maturity.
Stakeholders & Stakeholder Management —Stakeholders represent anyone with a vested interest in the project.
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The Basics of PM
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It’s all about managing six (6) things. It’s simple
really…Scope
Quality
Schedule
Budget
Resources
Risk
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The Basics of PMPMBOK® Guide Knowledge Areas
Knowledge Areas describe project management knowledge and practice in terms of their component processes.
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Integration Management
Scope Management
Time Management
Cost Management
Quality Management
HR Management
Communications Management
Risk Management
Procurement Management
Stakeholder Management
The Basics of PM
4 Integration Management 5 Scope Management 6 Time Management 7 Cost Management 8 Quality Management 9 Human Resource Management 10 Communications Management 11 Risk Management 12 Procurement Management 13 Stakeholder Management
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6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activities Resources6.5 Estimate Activity Durations6.6 Develop Schedule6.7 Control Schedule
Ten Knowledge Areas Extended
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The Basics of PM
Inputs Tools & Techniques Outputs
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The Basics of PM
4 Integration Management 5 Scope Management 6 Time Management 7 Cost Management 8 Quality Management 9 Human Resource Management 10 Communications Management 11 Risk Management 12 Procurement Management 13 Stakeholder Management
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6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activities Resources6.5 Estimate Activity Durations6.6 Develop Schedule6.7 Control Schedule
Ten Knowledge Areas Extended
6.3.1 Inputs6.3.2 Tools & Techniques• 6.3.2.1 PDM• 6.3.2.2 Dependency Determination• 6.3.2.3 Leads & lags6.3.3 Outputs
The Basics of PM
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Plan
CheckAct
Do
Initiating
Processes
Planning Processes
Executing Processes
Closing
Processes
Monitoring &
Controlling Processes
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The Basics of PM
ProjectInitiator/Sponsor
ProjectInputs
Project
Boundaries
InitiatingProcesses
Monitoring &Controlling Processes
Planning Processes
Executing Processes
ClosingProcesses
ProjectDeliverables
ProjectRecords
EndUsers
ProcessAssets
*Source: PMBOK Guide 2008 p.44
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The Basics of PM
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The Process Groups & Knowledge Areas Combined
Integration
PlanningInitiating Executing
Monitoring &
Controlling Closing
Scope Scope
Time Time
Cost Cost
Quality
Human Resources
Communication
Risk Risk
Procurement
Stakeholder Management
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Project Integration Management
Integration Management
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*Note: Not all process interactions & data flows among the process groups are shown.
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.
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Integration Management4.1 Develop Project Charter
Names the project manager & sponsor.
Explains how the project supports the organizational strategy.
Explains the business need & why the need exists.
Defines any constraints and assumptions that exist (this includes any deadlines, budget limitations, resource limitations, any known risks, and scope must haves).
Defines the project success criteria (it is always recommended that success criteria be quantitative in nature as subjective success criteria usually leads to failure.
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4. Project IntegrationManagement
Initiating Process Group
4.1Develop Project
Charter
Integration Management4.1 Develop Project Charter
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Inputs.1 Project statement of work
.2 Business case
.3 Agreements
.4 Enterprise environmental factors
.5 Organizational process assets
Tools & Techniques.1 Expert judgment
.2 Facilitation factors
Outputs.1 Project charter
Integration ManagementThe Business Case
Benefit Measurement Methods – subjective measures.
Constrained Optimization Methods – linear, integer, dynamic or multi‐objective programming.
Economic Models– Payback Period
– Future Value
– Present Value
– Net Present Value (NPV)
– Internal Rate of Return (IRR)
– Benefit / Cost ratio (BCR or BCI)
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www.PMTraining.com 22
Integration ManagementThe Business Case
Discounting or Present Value – Value today of funds available in the future.
PV = FV / (1 + i)n
– If you want $1,000 in three (3) years how much do you have to invest today at 8% to receive your $1,000?
– End of Yr. 1 = $1,000 / (1 + 8%) = $925.93
– End of Yr. 2 = $925.93 / (1 + 8%) = $857.34
– End of Yr. 3 = $857.34 / (1 + 8%) = $793.83
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Integration Management
The Business CaseNet Present Value – Present Value minuspresent cost.
Internal Rate of Return ‐ Average rate of returnearned over the life of the project. It is wherediscounted cash flow – up front cost = 0.
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Integration Management
4.2 Develop Project Management Plan The Project Management Plan is a key project document that is a collection of the outputs of the planning processes of the Planning Process Group.
Describes which project management processes will be used.
Describes how the project is executed, monitored and controlled, and closed.
Updated throughout the project.
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Planning Process Group
4. Project IntegrationManagement
4.2Develop Project
ManagementPlan
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Integration Management
4.2 Develop Project Management Plan
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Inputs.1 Project charter.2 Outputs from planning
processes.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Facilitation
Outputs.1 Project management
plan
Integration Management
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StaffingManagement Plan
CommunicationManagement Plan
RiskManagement Plan
ProcurementManagement Plan
ScopeManagement Plan
ScheduleManagement Plan
CostManagement Plan
QualityManagement Plan
ProjectManagement
Plan
RequirementsManagement Plan
ChangeManagement Plan
ConfigurationManagement Plan
Process ImprovementMgmt. Plan
StakeholderManagement Plan
Integration ManagementThe Project Management Plan Can
Also IncludeScope baselineMilestone listResource calendarsSchedule baselineCost baselineRisk register
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www.PMTraining.com 24
Integration Management
4.3 Direct & Manage Project WorkProject Manager, with project team, directsperformance and manages interfaces with therest of the organization
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Executing Process Group
4. Project IntegrationManagement
4.3Direct & Manage
ProjectWork
Integration Management4.3 Direct & Manage Project Work
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Inputs.1 Project management
plan.2 Approved change
requests.3 Enterprise
environmental factors
.4 Organizational process assets
Tools & Techniques.1 Expert judgment.2 Project management
information system.3 Meetings
Outputs.1 Deliverables.2 Work performance
data.3 Change requests.4 Project management
plan updates.5 Project document
updates
Integration Management4.4 Monitor & Control Project Work
Monitoring processes – collect, measure, disseminate, assess.
Control via corrective actions.
Compare actual work to plans/baselines.
Analyze, track, forecast.
Monitor implemented changes.
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Monitoring and Controlling Process Group
4. Project IntegrationManagement
4.4Monitor &
Control ProjectWork
4.5Perform
IntegratedChange Control
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Integration Management
4.4 Monitor & Control Project Work
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Inputs
.1 Project management plan
.2 Schedule forecasts
.3 Cost forecasts
.4 Validated changes
.5 Work performance information
.6 Enterprise environmental factors
.7 Organizational process assets
Tools & Techniques
.1 Expert judgment
.2 Analytical techniques
.3 Project managementinformation systems
.4 Meetings
Outputs.1 Change requests.2 Work performance
reports.3 Project management
plan updates.4 Project document
updates
Integration Management4.5 Perform Integrated Change Control Performed from the very beginning to the very end.
Identify that a change has occurred.
Influence factors that circumvent the integrated changecontrol process.
Review, approve (or reject), monitor change requests.
Maintain integrity of the baselines.
Review and approve all recommended corrective and preventive actions.
Assess impact of proposed changes.
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Monitoring and Controlling Process Group
4. Project IntegrationManagement
4.4Monitor &
Control ProjectWork
4.5Perform
IntegratedChange Control
Integration Management
4.5 Perform Integrated Change Control
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Inputs.1 Project management plan.2 Work performance reports.3 Change requests.4 Enterprise environmental factors.5 Organizational process assets
Tools & Techniques.1 Expert judgment.2 Meetings.3 Change control tools
Outputs.1 Approved change
requests.2 Change log.3 Project management
plan updates.4 project documents
updates
www.PMTraining.com 26
Integration Management
4.6 Close Project or PhaseAll the activities necessary to finalize projectactivities
Close a phase or the whole project – verifyproject deliverables and coordinateacceptance
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4. Project IntegrationManagement
Closing Process Group
4.6Close Project
Or Phase
Integration Management
4.6 Close Project or Phase
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Inputs.1 Project management
plan.2 Accepted deliverables.3 Organizational process
assets
Tools & Techniques.1 Expert Judgment.2 Analytical techniques.3 Meetings
Outputs.1 Final product,
service or result transition
.2 Organizational process assets updates
Integration ManagementSummary
Six (6) processes.
Role and components of the charter.
Charter issued by party external to the project.
Project management plan is collection of other plans –level of detail depends on the project.
Change control throughout the project.
Closure = deliverables AND project records.
Environmental factors are at play.
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www.PMTraining.com 27
Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Scope Management
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. (PMBOK Guide p.105)
No project is ever conducted without a plan.
A WBS must be created for all projects.
Involve all the project stakeholders in requirements
You must obtain approval of the project scope before execution begins.
Do not ever gold plate the project.
Scope changes allowed so long as they
follow the agreed upon change
management process.
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Monitoring and Controlling Process Group
5. Project ScopeManagement
5.5ValidateScope
5.6ControlScope
Planning Process Group
5. Project ScopeManagement
5.1Plan Scope
Management
5.2Collect
Requirements
5.3DefineScope
5.4CreateWBS
Scope ManagementThe Product vs. Project Scope:
Project Scope –The work that must beperformed to deliver a product, service orresult with the specified features andfunctions. PMBOK Guide 2012 p. 555
Product Scope – The features and functionsthat characterize a product service or result.PMBOK Guide 2012 p. 552
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Scope Management
5.1 Plan Scope Management Process of creating a scope management plan that documents how the project scope will be defined, validated & controlled.
It tells everyone how scope will be
managed throughout the project.
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Planning Process Group
5. Project ScopeManagement
5.1Plan Scope
Management
5.2Collect
Requirements
5.3DefineScope
5.4CreateWBS
Scope Management5.1 Plan Scope Management
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Inputs.1 Project management
plan.2 Project charter.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Meetings
Outputs.1 Scope management
plan.2 Requirements
management plan
Scope Management
5.2 Collect Requirements Process of defining and documenting stakeholders’ need to meet the project objectives.
This process is directly tied to
managing expectations.
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Planning Process Group
5. Project ScopeManagement
5.1Plan Scope
Management
5.2Collect
Requirements
5.3DefineScope
5.4CreateWBS
www.PMTraining.com 29
Scope Management5.2 Collect Requirements
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Inputs.1 Scope management
plan.2 Requirements
management plan.3 Stakeholder
management plan.4 Project charter.5 Stakeholder register
Tools & Techniques.1 Interviews.2 Focus groups.3 Facilitated workshops.4 Group creativity
techniques.5 Group decision-making
techniques.6 Questionnaires and
surveys.7 Observations.8 Prototypes.9 Benchmarking10. Context diagrams11. Document analysis
Outputs.1 Requirements
documentation.2 Requirements
traceability matrix
Scope Management
5.3 Define Scope
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Inputs.1 Scope management
plan.2 Project charter.3 Requirements
documentation.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Product analysis.3 Alternatives generation.4 Facilitated workshops
Outputs.1 Project scope
statement.2 Project documents
updates
Scope Management
5.4 Create WBSWork Packages
Decomposition
Progressive elaboration
Placeholder work packages
Control account
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www.PMTraining.com 30
Scope ManagementComponents of the WBS
The WBS Structure – resembles an organizationchart or decision tree.
The WBS Dictionary – A brief synopsis of theproject and each major component or workpackage.
The Code of Accounts – The numbering systemused to reference and roll‐up the WBS.– The highest level is 1
– The next level is 1.x
– The next level is 1.x.x and so on2/9/2016 v. 8.0 - © Copyright and all rights reserved –
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Effective WBS’s
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Basement FinishProject
Design&
Inspections
Design
Rough Design
Final Design
Inspections
Rough Electrical
Rough HVAC
Rough Frame
Final
HVAC
Trunk Line
Branch Lines
Plumbing Electrical
Rough Electrical
Outlets
Fixtures
Box Connections
FramingDrywall
&Finish
Drywall
Mud & Tape
Texture
Paint
Carpet
Scope Management
5.4 Create WBS
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Inputs.1 Scope management plan .2 Project scope statement.3 Requirements
documentation.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Decomposition.2 Expert judgment
Outputs.1 Scope baseline.4 Project document
updates
www.PMTraining.com 31
Scope Management
5.5 Validate ScopeFormalizing acceptance of deliverables.
Review deliverables with stakeholders.
Is binary in nature.
Often in parallel with quality control.
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Monitoring and Controlling Process Group
5. Project ScopeManagement
5.5ValidateScope
5.6ControlScope
Scope Management
5.5 Validate Scope
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Inputs.1 Project management plan.2 Requirements
documentation.3 Requirements traceability
matrix.4 Verified deliverables.5 Work performance data
Tools & Techniques.1 Inspection.2 Group decision-
making techniques
Outputs.1 Accepted deliverables.2 Change requests.3 Work performance
information .4 Project document
updates
Scope Management
5.6 Control ScopeInfluence the factors that create projectscope changes.
Control the impact of those changes.
Ensure use of Integrated Change Control.
Manage changes.
Scope creep.
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Monitoring and Controlling Process Group
5. Project ScopeManagement
5.5ValidateScope
5.6ControlScope
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Scope Management
5.6 Control Scope
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Inputs.1 Project management
plan.2 Requirements
documentation.4 Requirements
traceability matrix.5 Work performance
data.6 Organizational
process assets
Tools & Techniques.1 Variance analysis
Outputs.1 Work performance
information.2 Change requests.3 Project management
plan updates.4 Project document
updates.5 Organizational
process assets updates
Scope Management
Project Scope Management ‐Summary
Six (6) processes.
Project and product scope.
Scope is revised throughout project.
WBS – know its importance and that it isused in many other processes; and it isdeliverables based.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Time Management
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Time Management
All the processes required to ensure timelycompletion of the project.
The major output of these processes is theproject schedule.
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Monitoring and Controlling Process Group
6. Project TimeManagement
6.7Control
Schedule
Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time Management6.1 Plan Schedule Management
Defines the “rules” for developing &managing the schedule.
The benefit of this process is that itprovides guidance & direction
on how the schedule will be
managed.
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Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time Management
6.1 Plan Schedule Management
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Inputs.1 Project management
plan.2 Project charter.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings
Outputs.1 Schedule Management
plan
www.PMTraining.com 34
Time Management6.2 Define Activities
Creating a “list” of all the work that needs to be done to produce the project deliverables.
Work packages are decomposed into schedule activities.
These schedule activities provide a
basis for estimating, scheduling,
executing, and monitoring and
controlling.
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Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time Management
Rolling Wave Planning
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ProjectInitiation
AnalyzeExistingSituation
Define NewSystem
Requirements
PurchaseAnd InstallPackage
Construct &Test SystemComponents
Test &ImplementSystem
PlanningDetails
MoreDetails
TimeProjectStart
LessDetails
Time Management
6.2 Define Activities
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Inputs.1 Schedule management
plan.2 Scope baseline.3 Enterprise
environmental factors.4 Organizational process
assets
Tools & Techniques.1 Decomposition.2 Rolling wave planning.3 Expert judgment
Outputs.1 Activity list.2 Activity attributes.3 Milestone list
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Time Management
6.3 Sequence ActivitiesOrdering the activities that have been definedand assigning logical dependencies.
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Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time ManagementPDM
Finish to Start
Start to Start
Finish to Finish
Start to Finish
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F - F
S – F is not common
S - S
F - S
A
C
B D
EG
F H
Time Management
Conditional DiagrammingGERT is most common.
Allows for probability.
Allows for looping.
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Eyeball Diagram
A B C
20%
80%
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Time Management
Types of DependenciesMandatory (hard logic) – inherent in the work.
Discretionary (soft logic) – from best practicesor as desired.
External – From outside the team ororganization. Does not necessarily haveanything to do with the requirements.
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Time ManagementOther Terms
Lead Time – Dependency relationship which allows the second task to start prior to the completion of the first.
Lag Time – Dependency relationship which requires the second task to wait.
One‐Point Estimate – A single value estimate.
Regression Analysis – a graphic analysis to track if two variables are related.
Heuristic – A rule of thumb.
Learning Curve – The improvement achieved by doing an activity more than once.
Monte Carlo Simulation – A computer model which allows the analyst to simulate an activity 1,000 or more times to achieve a probability of a result.
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Time Management
6.3 Sequence Activities
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Inputs.1 Schedule management
plan.2 Activity list.3 Activity attributes.4 Milestone list.5 Project scope statement.6 Enterprise
environmental factors.7 organizational process
assets
Tools & Techniques.1 Precedence
diagramming method (PDM)
.2 Dependency determination
.3 Applying leads and lags
Outputs.1 Project schedule
network diagrams.2 Project document
updates
www.PMTraining.com 37
Time Management
6.4 Estimate Activity Resources
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Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Resource calendars.5 Risk register.6 Activity cost estimates.7 Enterprise environmental
factors.8 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Alternatives analysis.3 Published estimating
data.4 Bottom-up estimating.5 Project management
software
Outputs.1 Activity resource
requirements.2 Resource breakdown
structure.3 Project document
updates
Time Management6.5 Estimate Activity Durations
Compilation (not the sum) of activity durationestimates results in the project duration.
All supporting data is documented.
Uses identified risks & cost estimates.
Accuracy improves over time.
Ranges, e.g. 280 days ± 10%.
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Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time Management
6.5 Estimate Activity Duration
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Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Activity resource
requirements.5 Resource calendars.6 Project scope statement.7 Risk register.8 Resource breakdown
structure.9 Enterprise environmental
factors.10 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Three point estimating.5 Group decision-making
techniques.6 Reserve analysis
Outputs.1 Activity duration
estimates.2 Project document
updates
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Project Evaluation & Review Technique (PERT)
Time Management
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Project Evaluation & Review Technique (PERT)
Effective Budgets & Schedules
PERT
Weighted =
Average
Optimistic +
4X
Most
Likely + Pessimistic
6
PERT
Standard =
Deviation
Pessimistic ‐ Optimistic
6
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Effective Budgets & Schedules
Agile Estimation• Ideal Time ‐ Assumes resources 100% dedicated
• Relative Sizing – Often called T‐Shirt sizing.
• Story Points – Aggregates complexity & time.
• Fibonacci Sequence – Another comparisontechnique.
• Affinity Estimating – Process of groupingrequirements into categories or collections. Usedto group similarly sized user stories together.
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Time Management6.6 Develop Schedule
Iterative.
Determines planned start and end dates foractivities and the whole project.
Baseline for measuring progress.
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Planning Process Group
6. Project Time Management
6.2Define
Activities
6.4Estimate Activity
Resources
6.3SequenceActivities
6.5Estimate Activity
Durations
6.6DevelopSchedule
6.1Plan ScheduleManagement
Time ManagementCPM
The Critical Path is the project path which willbe the longest duration or where all activitieshave zero float.
The Critical Path does not necessarily have thegreatest risk.
The Critical Path determines the earliestcompletion of the project.
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CPM ES ‐ Early Start is the earliest the task can begin.
Dur – Duration is the amount of calendar time the task will take.
EF ‐ The Early Finish is the earliest the task can end.
LS – The Late Start is the latest the task can begin.
LF – The Late Finish is the latest the task can end.
Float ‐ The Slack, slip or float is amount of time the task can delay without impacting the project end date. Also called Total Float.
Near Critical Path – A network path close in length to the critical path.
Free Float – The amount of time a task can delay without delaying the early start date
Project Float – The amount of time the project can be delayed without impacting an externally imposed completion date.
Time Management
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ES DUR EF
Deliverable
LS Float LF
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Deliverable F2
Deliverable E2
Deliverable B4
2Deliverable C
Deliverable A
20
Effective Budgets & SchedulesThe Critical Path Method
ES DUR EF
Deliverable
LS Float LF
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LS = LF – DUR = Backward Pass
EF = ES + DUR = Forward Pass
Float = LF – EF or LS – ES
2 4
3Deliverable D
2 5
2 2 6 6 8
8 10
200
5 3 8
02 6 06 8
8 0 10
46 8
Time Management
Resource OptimizationAfter CPM.
Redistribute resource assignments where aresource is needed on more than one task inthe same time period.
Can change the critical path.
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Time ManagementCritical Chain Method
Critical Chain = Longest chain of dependent tasks with zero slack taking into consideration resource constraints.
Progress equal burn rate of the buffers vs. work complete.
Measurement is done against the Project Buffer.
Using CPM would take an estimated 75 units. Which is then missed by 100%.
CCPM allows for more accurate estimates with smaller misses.2/9/2016 v. 8.0 - © Copyright and all rights reserved –
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10 15 10
15 30 10
30 10
20
PDM/CPM
PR 10OR 10 BL 15
BL 30 Y 10
Y 20OR 30R 15 GR 10
FB 10
FB 17
FB 5
PB 27
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Time Management
Story
Sequence
TheBackbone
WalkingSkeleton
LessOptional
MoreOptional
Op
tion
alit
y
Story
Story StoryStory
StoryStory
StoryStory
StoryStory
StoryStory
Story
Story
Story
Story
StoryStory
Story
Story
Story Story
Story Story
Story Story
Story
Story
Story
Story Story
Story Story
Story Story
Story Story
Story Story
Story Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
Story
A Sample Story Map
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Time Management6.6 Develop Schedule
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Inputs
.1 Schedule management plan
.2 Activity list
.3 Activity attributes
.4 Project schedule network diagram
.5 Activity resource requirements
.6 Resource calendars
.7 Activity duration estimates
.8 Project scope statement
.9 Risk register
.10 Project staff assignments
.11 Resource breakdown structure
.12 Enterprise environmental factors
.13 Organizational process assets
Tools & Techniques
.1 Schedule network analysis
.2 Critical path method
.3 Critical chain method
.4 Resource optimization techniques
.5 Modeling techniques
.6 Leads and lags
.7 Schedule compression
.8 Scheduling tool
Outputs
.1 Schedule baseline
.2 Project schedule
.3 Schedule data
.4 Project calendars
.5 Project management plan updates
.6 Project document updates
Time Management6.7 Control Schedule
Part of Integrated Change Control.
Determine the current status of the projectschedule.
Influence the factors that create schedule changes.
Determine that the project schedule has changed.
Manage the changes as they occur.
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Monitoring and Controlling Process Group
6. Project TimeManagement
6.7Control
Schedule
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Time Management
6.7 Control Schedule
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Inputs.1 Project management plan.2 Project schedule.3 Work performance data.4 Project calendars.5 Schedule data.6 Organizational process
assets
Tools & Techniques.1 Performance reviews.2 PM software.3 Resource optimization
techniques.4 Modeling techniques.5 Leads & lags.6 Schedule compression.7 Scheduling tool
Outputs.1 Work performance
information.2 Schedule forecasts.3 Change requests.4 Project management
plan updates.5 Project documents
updates.6 Organizational process
assets updates
Time ManagementProject Time Management – SummarySeven (7) processes.
PERT, GERT, PDM, CPM, CCPM.
Crashing, fast tracking.
Decomposition, baseline, float or slack.
Schedule development is iterative.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Cost Management
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Cost Management
All the process involved in planning, estimating, budgeting and controlling costs so that the project can be completed within the approved budget.
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Monitoring and Controlling Process Group
7. Project CostManagement
7.4ControlCosts
Planning Process Group
7. Project CostManagement
7.2Estimate
Costs
7.3Determine
Budget
7.1Plan Cost
Management
Cost ManagementPrimarily concerned with cost of resources.
Also concerned with– Life‐cycle costing
– Opportunity cost
– Sunk costs
The Cost Management Plan is part of
overall project management plan.– Control thresholds
– Earned value rules
– Reporting formats
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Cost Management
7.1 Plan Cost ManagementDefining the rules which are used to manageproject costs.
It defines how the team will
manage the money.
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Planning Process Group
7. Project CostManagement
7.2Estimate
Costs
7.3Determine
Budget
7.1Plan Cost
Management
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Cost Management7.1 Plan Cost Management
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Inputs.1 Project management
plan.2 Project charter.3 Enterprise
environmental factors.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings
Outputs.1 Cost management
plan
Cost Management
7.2 Estimate CostsDeveloping an approximation of the costs ofthe resources needed to complete eachschedule activity
Cost Estimating ≠ Pricing
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Planning Process Group
7. Project CostManagement
7.2Estimate
Costs
7.3Determine
Budget
7.1Plan Cost
Management
Cost Management7.2 Estimate Costs
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Inputs.1 Cost management plan.2 Human resource
management plan.3 Scope baseline.4 Project schedule.5 Risk register.6 Enterprise
environmental factors.7 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point
estimating.6 Reserve analysis.7 Cost of quality.8 Project management
software.9 Vendor bid analysis.10 Group decision
making techniques
Outputs.1 Activity cost
estimates.2 Basis of estimates.3 Project documents
updates
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Cost Management
Accuracy of estimates increases as the project progresses
Rough Order of Magnitude+50%
Budget Estimate or the Budget+10%
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Cost Management
7.3 Determine Budget
Aggregating the cost estimates of individual activities or work packages to establish a total Cost Baseline.
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Planning Process Group
7. Project CostManagement
7.2Estimate
Costs
7.3Determine
Budget
7.1Plan Cost
Management
Cost ManagementAccounting Terms
Variable Costs – Costs that change as the units produced changes.
Fixed Costs – Costs that do not change with changes tovolume produced.
Direct Costs – Costs that are directly attributed to project work.
Indirect Costs – Items that benefit more than one project and are not attributed to a specific activity.
Value Analysis or Engineering – Finding less costly ways to do the same work.
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Cost Management
7.3 Determine Budget
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Inputs.1 Cost management plan.2 Scope baseline.3 Activity cost estimates.4 Basis of estimates.5 Project schedule.6 Resource calendars.7 Risk register.8 Agreements.9 Organizational process
assets
Tools & Techniques.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationships.5 Funding limit
reconciliation
Outputs.1 Cost baseline.2 Project funding
requirements.3 Project document
updates
Cost Management
Funding Requirements
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The difference between the maximum funding and the end of the cost baseline is Management Reserve.
Time
Cost Baseline
Actual Costs
Funding Requirements
Cumulative $
Cost ManagementDepreciation
Straight Line Depreciation – Present valueminus present cost.
Production Method ‐
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cost – residual value estimated units of useful life (production)
Depreciation amt. to = deduct each year till
salvage value is reached
Depreciation amt. to deduct = each year till salvage value
is reacheduseful lifecost – residual value
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Cost ManagementDepreciation
Double Declining Balance (DDB) – Accelerated depreciation method. Begin by dividing 100% by the term of the asset and doubling the result. Each subsequent year, that same percentage is multiplied by the remaining balance to be depreciated. Using a purchase price of $100,000 and a residual of $25,000 on a five (5) year schedule:
100% / 5 Year Term = 20%
Double the 20% rate or 40%
Year 1 value = $100,000 ‐ ($100,000 * 40%) = $60,000
Year 2 value = $60,000 – ($60,000 * 40%) = $36,000
Year 3 value = $36,000 – ($36,000 * 40%) = $21,600
Since this is less than the salvage value it is $25,000
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Cost ManagementDepreciation
Sum of the Years Digits (SYD) – Accelerated depreciation method. Begin by adding the number of years in the schedule. For example, for a five (5) year schedule add 1+2+3+4+5 = 15. Next, take the asset value minus the residual value and divide it by this result (15). If the salvage value is $25,000 then:
Year 1 value = $100,000 – (5/15 * $75,000) = $75,000
Year 2 value = $75,000 – (4/15 * $75,000) = $55,000
Year 3 value = $55,000 – (3/15 * $75,000) = $40,000
Year 4 value = $40,000 – (2/15 * $75,000) = $30,000
Year 5 value = $30,000 – (1/15 * $75,000) = $25,000
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Cost Management7.4 Control Costs
Influencing the factors that create changes to the cost baseline.
Ensuring requested changes are agreed upon.
Managing the actual changes when and as they occur.
Assuring that potential cost overruns do not exceed the authorized funding periodically and in total for the project.
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Monitoring and Controlling Process Group
7. Project CostManagement
7.4ControlCosts
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Cost Management7.4 Control Costs
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Inputs.1 Project
management plan.2 Project funding
requirements.3 Work performance
data.4 Organizational
process assets
Tools & Techniques.1 Earned value
management.2 Forecasting.3 To-complete
performance index.4 Performance reviews.5 Project management
software.6 Reserve analysis
Outputs.1 Work performance
information.2 Cost forecasts.3 Change requests.4 Project management
plan updates.5 Project document
updates.6 Organizational process
assets updates
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Cost Management
PV
AC
EV
EAC
SLIPPAGE
COSTVARIANCE
SCHEDULEVARIANCE
NOW
BAC VALUE
TIME
Cumulative Cost Curve
Cost Management
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Actual Costs Earned Value Planned Value
CV = = SVMinus Minus
Divided By Divided ByCPI = = SPI
In Alphabetical Order
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Cost ManagementForecasting ‐ ETC
ETC based on new estimate.
ETC based on atypical variances.
ETC = BAC‐EV
ETC based on typical variances.
ETC = (BAC‐EV)/CPI
ETC based on both the CPI & SPI.
ETC = (BAC‐EV)/(CPI*SPI)
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BAC = Budget at CompletionBAC-EV = Remaining WorkVAC = Variance at CompletionCPI*SPI = Critical Ratio
Cost Management
Forecasting ‐ EACUsing a new estimate
– EAC = AC + ETC
Using remaining budget– EAC = AC + (BAC‐EV)
Using CPI– EAC = AC + ((BAC‐EV)/CPI)
Using both CPI & SPI– EAC = AC + ((BAC‐EV)/(CPI*SPI))
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Cost ManagementForecasting ‐ TCPI
The calculated projection of cost performancethat must be achieved on the remaining workto meet a specified management goal.
Using BAC– TCPI = (BAC – EV) / (BAC – AC)
Using EAC– TCPI = (BAC ‐ EV) / (EAC ‐ AC)
VAC = BAC ‐ EAC
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Cost ManagementCost Management – Summary
Four (4) processes.
Earned Value concepts & calculations.
Life cycle costing.
Cost baseline.
Estimating vs. budgeting.
Types of estimates & estimating.
Contingency and management reserve.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Quality Management
Quality ManagementAll the activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.
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Planning Process Group
8. Project QualityManagement
8.1Plan QualityManagement
Executing Process Group
8. Project QualityManagement
8.2Perform Quality
Assurance
Monitoring and Controlling Process Group
8. Project QualityManagement
8.3Control Quality
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Quality ManagementKey Terms
Project Quality Management must address the management of the project & product.
Quality ‐ “the degree to which a set of inherent characteristics fulfill requirements.” (American Society for Quality, 2000)
Gold Plating – Giving the customer extra functionality, adds no value to the project; PMI argues against gold plating.
Marginal Analysis – Finding the point where the cost of the incremental improvement in quality equals the value of the improvement.
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Quality Management
International Organization for Standardization(ISO)
Total Quality Management (TQM)
Six Sigma
Kaizen
Quality vs. Grade
Precision vs. Accuracy
PDCA
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Quality ManagementThought Leaders
W.E. Deming: (PDCA), Quality = results of work efforts /total costs
J.M. Juran: quality planning, control & improvement. People are cause. Fitness for Use
P. Crosby: Quality is Free, 0 Defects Conforming to Rqmts, Doing It Right the First Time" (DIRFT)
K. Ishikawa: Cause‐Effect (Fishbone) Diagram, Design Statistics, introduced quality circles
G. Taguchi: Quality as part of the Design, not Inspection, Taguchi Method.
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Quality Management8.1 Plan Quality
Identifying which quality standards arerelevant to the project, and determining howto satisfy them.
Performed in parallel with other planningprocesses.
Quality is planned, designed, and built in,not inspected in.
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Planning Process Group
8. Project QualityManagement
8.1Plan
Quality
Quality Management8.1 Plan Quality Management
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158
Inputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements
documentation .5 Enterprise environmental
factors.6 Organizational process
assets
Tools & Techniques.1 Cost-benefit analysis.2 Cost of Quality.3 Seven basic quality
tools.4 Benchmarking.5 Design of the
experiments.6 Statistical sampling.7 Additional quality
planning tools.8 Meetings
Outputs.1 Quality management
plan.2 Process
improvement plan .3 Quality metrics.4 Quality checklists.5 Project documents
updates
Quality Management
Conformance NonconformancePrevention Planning Scrap Failure
Appraisal Training Rework
Auditing Expediting
Testing Warranty Service
Controlling Recalls
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Cost of Quality
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Quality Management
7 Basic Quality ToolsAlso know as 7QC Tools.
Used within PDCA cycle to solve qualityproblems.
They are:
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• Cause‐and‐effect diagrams • Flowcharts
• Checksheets • Pareto diagrams
• Histograms • Control charts
• Scatter diagrams
Quality ManagementSIPOC
Sometimes called COPIS.
Tool that summarizes the inputs and outputs of one or more processes in table form.
Acronym SIPOC stands for suppliers, inputs, process, outputs, and customers which form the columns of the table.
First used in TQM programs.
Used today in Six Sigma and Lean manufacturing.
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Quality ManagementSIPOC
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Supplier CustomerProcessInput Output
Requirements & Feedback Loop
Requirements & Feedback Loop
Requirements List•______________•______________•______________•______________•______________
Measurements List•______________•______________•______________•______________•______________
Requirements List•______________•______________•______________•______________•______________
Measurements List•______________•______________•______________•______________•______________
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Quality Management In Control – When ‘in control’ a process should not be adjusted.
Specification Limits – Customer expectations or contract requirements.
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What is ‘out of control’ ? What is the ‘rule of 7’?
X
UCL
LCL
x
xx
x
xx
x
x
x
x
x
x
3ơ2ơ1ơ
-1ơ-2ơ-3ơ
Quality Management
BenchmarkingUsed for process and product improvement.
Can be done within the organization or withother organizations that have similarprocesses.
Can disrupt a project if improperly done.
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Quality Management
Design of Experiments (DOE) Statistical method used to identify which factors may influence specific variables in a process.
Provides statistical framework to systematically change all the important factors in a system, instead of changing one at a time.
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Quality ManagementStatistical Sampling Terms
Attribute – A quality or characteristic of a thing.
Variable – A quantity or function that may assumeany given value or set of values.
Producer’s Risk – (Alpha) chance of rejecting agood lot. Type I error.
Consumer’s Risk – (Beta) chance of accepting a badlot. Type II error.
Sampling Plan – Sample size (n) and acceptancecriteria (c).
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Quality ManagementStatistical Terms
Mean – Sum of the values divided by the count.Median – the middle value.Mode – the most commonlyoccurring value.
Standard Deviation:
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Σ(x – x)2
n - 1
Quality Management
Statistical ExampleYou have a sample with 5 cases with values of 1,2,3,4,5
The mean= Σ(values)/number of cases or 15/5 = 3
Variance and Standard Deviation
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(1‐3)2+ (2‐3)2 + (3‐3)2 + (4‐3)2 + (5‐3)2 =
4 + 1 + 0 + 1 + 4 = 10
10 / (5‐1) = 2.5 (variance)
sqrt. of 2.5 = 1.58 (standard deviation)
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Quality Management
8.2 Perform Quality AssuranceAnswers the question are we following theright standards. e.g. if we follow thesestandards what will the results be?
Provides an umbrella for ContinuousImprovement . . .
Completed during execution.
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Executing Process Group
8. Project QualityManagement
8.2Perform Quality
Assurance
Quality Management
8.2 Perform Quality Assurance
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Inputs.1 Quality management plan
.2 Process improvement plan
.3 Quality metrics
.4 Quality control measurements
.5 Project documents
Tools & Techniques.1 Quality management &
control tools
.2 Quality audits
.3 Process analysis
Outputs.1 Change requests
.2 Project management plan updates
.3 Project documents updates
.4 Organizational process assets updates
Quality Management
8.3 Control QualityMonitoring specific project results to determinewhether they comply with relevant standards.
Identifying ways to eliminate causes ofunsatisfactory results.
Quality standards include project processes andproduct goals.
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Monitoring and Controlling Process Group
8. Project QualityManagement
8.3Control Quality
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Quality Management8.3 Control Quality
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Inputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process
assets
Tools & Techniques.1 Seven basic quality
tools.2 Statistical sampling.3 Inspection.4 Approved change
requests review
Outputs.1 Quality control
measurements.2 Validated changes.3 Validated
deliverables.4 Work performance
information.5 Change requests.6 Project management
plan updates.7 Project documents
updates.8 Organizational
process assets updates
Quality Management
Cause and Effect Diagram(Ishikawa or fishbone Diagram)
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Major
Defect
Time Machine Method Material
Energy Measurement Personnel Environment Effect
Potential Causes
Quality ManagementPareto Diagrams
A histogram that contains both bars & a line graph, where individual values are represented in descending order by bars, & the cumulative total is represented by the line.
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Quality ManagementRun Charts
Used for trend analysis
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Quality Management
Project Quality Management –Summary
Three (3) processes.
Assurance vs. Control.
Principles advocated by Deming, Juran,Ishikawa, Crosby, Taguchi.
Control Chart & rule of seven.
PM & team have primary responsibility forconformance to standards.
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Quality Management
Project Quality Management –Summary
Importance of Continuous Improvement
7 basic quality tools
Variable vs. Attribute sampling
Gold Plating – not recommended
Metrics
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Human Resource Management
Human Resource Management
The Processes that Organize and Manage the Project Team
Project team (staff) are the people who have assigned roles and responsibilities for completing the project
They should be involved
in planning as soon as
possible.
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Planning Process Group
9. Project HumanResources
Management
9.1Plan Human
Resource Mgmt
Executing Process Group
9. Project HumanResources
Management
9.2Acquire
Project Team
9.3Develop
Project Team
9.4Manage
Project Team
Human Resource Management
9.1 Plan Human Resource ManagementDetermine project roles, responsibilities and reporting relationships.
Create the Human Resource Plan.
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Planning Process Group
9. Project HumanResources
Management
9.1Plan Human
Resource Mgmt
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Human Resource Management
9.1 Plan Human Resource Management
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Inputs.1 Project management plan.2 Activity resource
requirements.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Organization charts &
position descriptions.2 Networking.3 Organizational theory.4 Expert judgment.5 Meetings
Outputs.1 Human resource
management plan
Human Resource Management
Organization Chart – Helps in identifying communication/ information channels
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Human Resource Management
Responsibility Assignment Matrix – helps define roles and responsibilities
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Sally Bob Jim Kate Fran Cal …
Feature 1 S R A P PFeature 2 S A P PFeature 3 S R A I PFeature 4 R S A P PFeature 5 S P I A P
DeliverablesPerson
P = Participant A = Accountable R = Review Req’d I = Input Req’d S = Sign-off Req’d
RACI = Responsible, Accountable, Consult, Inform
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Human Resource Management
Common TheoriesMaslow’s Hierarchy of Needs
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Self-Actualization
Esteem
Social
Safety
Physiological
Self-fulfillment, growth, learning
Accomplishment, respect, attention, appreciation
Love, affection, approval, friends, association
Security, stability, and freedom from harm
Need for air, water, food, housing & clothing
Human Resource Management
Common TheoriesMcGregor’s Theory of X and Y – all workers fitinto one of two groups, X and Y.
Theory X – Suggests that people need to bewatched every minute and that they areincapable, avoid responsibility and avoid workwhenever possible.
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XXX
Human Resource Management
McGregor’s Theory of X and YTheory Y – Suggests that people are willing towork without supervision and want toachieve. People can direct their own efforts
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YYY
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Human Resource ManagementCommon Theories
Hertzberg’s Theory – Deals with hygiene factors and motivating agents.
Poor hygiene factors may destroy motivation but improving them, under most circumstances, will not improve motivation.
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Motivator Factors Hygiene Factors
•Achievement•Recognition•Work Itself•Responsibility•Promotion•Growth
•Pay and Benefits•Company Policy and Administration•Relationships with co‐workers•Supervision•Status•Job Security•Working Conditions•Personal life
Human Resource ManagementTheory Z
Theory Z is often referred to as the“Japanese” management style.
It places a large amount of freedom andtrust with workers, & assumes workershave a strong loyalty & interest in theorganization.
Workers become generalists, rather thanspecialists to increase their knowledge ofthe company & its processes through jobrotations & continual training.
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Human Resource Management
Human Resource PlanAcquisition of team (staff).
Criteria for release from project.
Training needs.
Compliance and safety.
Recognition and reward plans.
Impact of staffing on the organization.
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Human Resource Management
9.2 Acquire Project TeamObtaining the human resources needed to complete the project.
The project team may or may not have control over these people.
Halo Effect – Rating someone high or
low based on a single driver.
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Executing Process Group
9. Project HumanResources
Management
9.2Acquire
Project Team
9.3Develop
Project Team
9.4Manage
Project Team
Human Resource Management
9.2 Acquire Project Team
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Inputs.1 Human resource
management plan.2 Enterprise environmental
factors.3 Organizational process
assets
Tools & Techniques.1 Pre-assignment.2 Negotiation.3 Acquisition.4 Virtual teams.5 Multi-criteria
decision analysis
Outputs.1 Project staff
assignments.2 Resource calendars.3 Project management
plan updates
Human Resource Management
9.3 Develop Project TeamGoal is to improve skills, team interaction & overall team environment.
Teamwork is a critical factor to any successful project.
Team development is a PM’s
responsibility.
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Executing Process Group
9. Project HumanResources
Management
9.2Acquire
Project Team
9.3Develop
Project Team
9.4Manage
Project Team
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Human Resource Management
9.3 Develop Project Team
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Inputs.1 Human resource
management plan.2 Project staff
assignments.3 Resource calendars
Tools & Techniques.1 Interpersonal skills.2 Training.3 Team-building
activities.4 Ground rules.5 Colocation.6 Recognition and
rewards.7 Personnel
assessment tools
Outputs.1 Team performance
assessments.2 Enterprise
environmental factors updates
Human Resource Management
9.4 Manage Project TeamTracking team member performance.
Providing feedback.
Resolving issues.
Coordinating changes to
enhance project performance.
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Executing Process Group
9. Project HumanResources
Management
9.2Acquire
Project Team
9.3Develop
Project Team
9.4Manage
Project Team
Human Resource Management
9.4 Manage Project Team
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Inputs.1 Human resource
management plan.2 Project staff assignments.3 Team performance
assessments.4 Issue log.5 Work performance reports.6 Organizational process
assets
Tools & Techniques.1 Observation &
conversation.2 Project performance
appraisals.3 Conflict management.4 Interpersonal skills
Outputs.1 Change requests.2 Project management
plan updates.3 Project documents
updates.4 Enterprise
environmental factors updates
.5 Organizational process assets updates
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Human Resource Management
Resolution Concern
Mode StylePersonal
Goals Relationships• Withdrawal • Lose ‐ Leave • Low • Low
• Smoothing • Yield – Lose • Low • High
• Compromising • Compromise • Medium • Medium
• Forcing • Win – Lose • High • Low
• Problem Solving
(Confronting)
• Integrative • High • High
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Human Resource ManagementLeadership Styles
Autocratic – They solicit little or no informational input from their group and make managerial decisions solely by themselves.
Consultative Autocratic – Intensive information input is solicited, but these leaders keep all substantive decision‐making authority to themselves.
Consensus Manager – They throw open the problem to the group and encourage the entire team to make the relevant decision.
Shareholder Manager – (Poor Management) little or no information input and exchange takes place within the group context, yet the group is provided the authority for the final decision.
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Human Resource Management
Theories of Management StyleThe Leadership Contingency Model (Fielder)
–Holds that there is no best overall style.– Style is contingent on the situation.–Variables affecting the situation.
• Team Leader ↔ Team Member relations• Degree of task structure• Position of power
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Human Resource Management
Theories of Management StyleThe Situational Leadership Theory(Hersey and Blanchard)
– Identifies four (4) leadership styles
• Delegating
• Participating
• Selling
• Telling
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Human Resource Management
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Sources of Power
Total Power = Positional + Personal Power
Power Source Power Base Commitment Compliance Resistance Meaning
Position Legitimate Possible Likely Possible Formal authority to direct, a boss
Position Reward Possible Likely Possible The ability to give value like raises
Position Coercive Possible Possible Likely The right to punish, reprimand or fire
Personal Informational Possible Possible Possible Ability to give facts, reasoning or logic
Personal Expert Likely Possible Possible Seen as having superior knowledge or experience
Personal Referent Likely Possible Possible Goodwill, team members admire the person
Human Resource Management
Human Resources Management –Summary
Four (4) processesSources of powerTypes of conflict & conflict resolutionPurpose & value of team buildingOrganizational theoriesTheories of management style
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Communications Management
Communications ManagementEmploying the processes required to ensure timely and appropriate generation, collections, distribution, storage, retrieval, and ultimate disposition of project information.
Provides critical links among people and information.
Everyone involved should understand how communications effect the project as a whole.
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Planning Process Group
10. Project Communications
Management10.1Plan
CommunicationsManagement
Executing Process Group
10. Project Communications
Management
10.2Manage
Communications
Monitoring and Controlling Process Group
10. Project Communications
Management
10.3Control
Communications
Communications Management
Communications TermsResponse
Channel
Nonverbal
Para Lingual
Active Listening
Effective Listening
Feedback
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Communications Management
The Communication Model is made up of four parts within a circle: the sender, the message, the receiver, the response.
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Sender ReceiverThe MessageTransmit
(Encode)Receive
(Decode)
Transmit(Encode)
Receive(Decode)
Filters& Noise
Response(Feedback)
Communications ManagementAs the number of people involved in communication increases the number of communication channels increases geometrically.
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The Formula forOne-to-one Communications
N(N-1)2
2(1)/2 = 1 Channel 10(9)/2 = 45 Channels
Communications ManagementDidactic Communication Example
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N(N-1)2
Team of 7
7(7-1)2
7(6)2
422= = = = 21
You Get Behind Schedule & Add 2 Resources To Catch Up
N(N-1)2
Team of 9
9(9-1)2
9(8)2
722= = = = 36
36 21 15 Additional Channels=-
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Communications ManagementStyles
Authoritarian – gives expectations and specific guidance.
Promotional – cultivates team spirit.
Facilitating – gives guidance as required, non‐interfering.
Conciliatory – friendly and agreeable, builds compatible team.
Judicial – uses sound judgment.
Ethical – Honest, fair, by the book.
Secretive – not open or outgoing (to the project’s detriment).
Disruptive – Breaks apart unity of group, agitator.
Intimidating – “Tough guy,” can lower morale.
Combative – Eager to fight or be disagreeable.2/9/2016 v. 8.0 - © Copyright and all rights reserved –
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Communications Management
10.1 Plan Communications ManagementDetermine the information and communicationsneeds of the stakeholders.
Who, when, what, how.
Reviewed and updated throughout the project.
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Planning Process Group
10. Project Communications
Management
10.2Plan
Communications
Communications Management
10.1 Plan Communications Management
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Inputs.1 Project management plan.2 Stakeholder register.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Communication
requirements analysis.2 Communication
technology.3 Communication models.4 Communication
methods.5 Meetings
Outputs.1 Communications
management plan.2 Project documents
updates
www.PMTraining.com 70
Communications ManagementThe Communications Management
Plan Stakeholder communication requirements Format, content, level of detail Person responsible for communicating ReceiversMethods or technologies Frequency Escalation processUpdating processGlossary
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Communications Management
10.2 Manage Communications
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Inputs.1 Communications
management plan.2 Work performance
reports.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Communication
technology.2 Communication models.3 Communication
methods.4 Information
management systems.5 Performance reporting
Outputs.1 Project communications.2 Project management
plan updates.3 Project documents
updates.4 Organizational process
assets updates
Communications Management
10.3 Control Communications
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Inputs.1 Project management
plan.2 Project
communications.3 Issue log.4 Work performance
data.5 Organizational
process assets
Tools & Techniques.1 Information
management systems
.2 Expert judgment
.3 Meeting
Outputs.1 Work performance
information.2 Change requests.3 Project management
plan updates.4 Project documents
updates.5 Organizational
process assets updates
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Communications ManagementCommunications Management ‐
SummaryThree (3) processes.
Performance reporting – EV, baselines.
Stakeholder analysis results in description ofcommunication needs.
Formula for channels of communication.
Importance/role of project communication.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Risk Management
Risk Management The processes concerned with conducting risk management planning, identification, analysis, responses and monitoring and control on a project.
Updated throughout the project.
Increase the probability and impact of positive risks & decrease the probability and impact of negative risks.
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Monitoring and Controlling Process Group
11. Project RiskManagement
11.6Control Risks
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Risk Management
Risk – an uncertain event or condition that, ifrealized, has a positive or negative impact onat least one project objective (such as time,cost, scope or quality).
Risks can have one or more causes and one ormore impacts.
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Risk Management
Types of Risks Known Risks ‐ Can be analyzed, possible toplan. Contingency reserve or other plans.
Unknown Risks ‐ Cannot be managedproactively. General contingency ormanagement reserve.
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Risk Management
Key TermsRisk Tolerance
Risk Averse
Risk FactorsProbability & impact
The range of possible outcomes
Expected timing in the project life‐cycle
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Risk Management11.1 Plan Risk Management
The process of deciding how to approach & conduct risk management activities for a project.
Ensure that the level, type & visibility of risk management are commensurate with both the risk & importance of the project.
Provide sufficient resources & time for risk management activities.
Establish an agreed‐upon basis for evaluating risks.
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Risk Management
11.1 Plan Risk Management
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Inputs.1 Project management
plan.2 Project charter.3 Stakeholder register.4 Enterprise environmental
factors.5 Organizational process
assets
Tools & Techniques.1 Analytical techniques.2 Expert judgment.3 Meetings
Outputs.1 Risk management plan
Risk ManagementIncluded in the Risk Management PlanMethodologyRoles and ResponsibilitiesBudgetingTimingRisk Categories (RBS) . . .Revised stakeholder tolerancesReporting formatsTrackingDefinitions of probability and impactMatrices . . .
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Risk ManagementProject
Technical
Requirements
technology
Complexity & Interfaces
Performance & Reliability
Quality
External
Subcontractors & Suppliers
Regulatory
Market
Customer
Weather
Organizational
Project Dependencies
Resources
Funding
Prioritization
Project Management
Estimating
Planning
Controlling
Communication
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Sample RBS
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Risk Management
Scales for Impact and ProbabilityLinear
– .1, .3, .5, .7,.9
Non‐Linear– .05, .10, .20, .40, .80
Relative– Very low, low, medium,
high, very high
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Risk Management
Project Objectives Very Low / .05 Low / .10 Medium / .20 High / .40 Very High / .80
Cost Insignificant costincrease
<10% cost increase
10%‐20% cost increase 20%‐40% cost increase
>40% costincrease
Time Insignificant timeincrease
<5% Time increase
5%‐10% time increase 10%‐20% time increase
>20% timeincrease
Scope Scope decrease barely noticeable
Minor areas of scope affected
Major areas of scope affected
Scope reduction unacceptable to sponsor
Product of project is effectively unusable
Quality Quality degradation barely noticeable
Only very demanding applications are affected
Quality reduction requires sponsor’s approval
Quality reduction unacceptable to sponsor
Product of project is effectively unusable
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Sample Impact Matrix
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Risk Management
11.2 Identify RisksDetermine which risks might affect the project and documents their characteristics.
Project Manager
Project Team
Stakeholders
Subject matter experts
People outside the project
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Risk Management11.2 Identify Risks
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Inputs.1 Risk management plan.2 Cost management plan.3 Schedule management
plan.4 Quality management plan.5 Human resource
management plan.6 Scope baseline.7 Activity cost estimates.8 Activity duration estimates.9 Stakeholder register.10 Project documents.11 Procurement documents.12 Enterprise environmental
factors.13 Organizational process
assets
Tools & Techniques.1 Documentation reviews.2 Information gathering
techniques.3 Checklist analysis.4 Assumption analysis.5 Diagramming techniques.6 SWOT analysis.7 Expert judgment
Outputs.1 Risk register
Risk ManagementTools & Techniques
Information gathering‐ Brainstorming‐ Delphi Technique – reduce bias‐ Interviews
Assumption analysis SWOT Checklist analysis – be careful Diagramming
‐ Cause and effect‐ Flow charts‐ Influence diagrams
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Problem
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Risk Management
The Risk RegisterList of identified risks
And possibly…
– List of potential responses
– Root causes
– Updated risk categories
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Risk Management
11.3 Perform Qualitative Risk AnalysisPrioritizing the identified risks for furtheraction (including further analysis or responseplanning).
Uses the probability and impact scoringdefined in Plan Risk Management.
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Risk Management11.3 Perform Qualitative Risk Analysis
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Inputs.1 Risk management plan.2 Scope baseline.3 Risk register.4 Enterprise environmental
factors.5 Organizational process
assets
Tools & Techniques.1 Risk probability and
impact assessment.2 Probability and
impact matrix.3 Risk data quality
assessment.4 Risk categorization.5 Risk urgency
assessment.6 Expert judgment
Outputs.1 Project document
updates
www.PMTraining.com 77
Risk Management
Probability Risk Score = P x I0.05 0.10 0.20 0.40 0.80
0.9 0.045 0.09 0.18 0.36 0.720.7 0.035 0.07 0.14 0.28 0.560.5 0.025 0.05 0.10 0.20 0.400.3 0.015 0.03 0.06 0.12 0.240.1 0.005 0.01 0.02 .04 0.08
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Probability & Impact Matrix
Risk Management11.4 Perform Quantitative Risk
AnalysisAnalyzes the effect of those risk events that have been prioritized as potentially and substantially impacting the project’s competing demands, and assigns a numerical rating to those risks
Also presents a quantitative approach
to making decisions in the presence of
uncertainty
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Risk Management
11.4 Quantitative Risk Analysis
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Inputs.1 Risk management plan.2 Cost management plan.4 Schedule management
plan.5 Enterprise environmental
factors.5 Organizational process
assets
Tools & Techniques.1 Data gathering &
representation techniques.2 Quantitative risk analysis &
modeling techniques.3 Expert judgment
Outputs.1 Project documents
updates
www.PMTraining.com 78
Risk ManagementData Modeling ‐ Simulation
Monte Carlo Simulations‐ Cost ‐ Use WBS or similar breakdown
‐ Schedule ‐ Use PDM
Data Modeling ‐ Sensitivity Analysis‐ Determine the most potential impact.
‐ Impact of single element of uncertainty when
all other elements are held at baseline.
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Risk ManagementExpected Monetary Value (EMV)
Calculates the average outcome when future events are uncertain
Cost Probability ProductOptimistic Outcome $150,000 .20 $ 30,000Likely Outcome $225,000 .50 $112,500Pessimistic Outcome $300,000 .30 $ 90,000
$ 232,500
Risk Management
Decision Tree Analysis
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ChoiceEvent
ChanceEvent
ChanceEvent
60%
40%
20%
80%
Outcome EMV$250K $150K
-$100K -$40K
-$45K -$9K
$20K $16K
Conservative EMV = $7,000
Aggressive EMV = $110,000
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Risk Management
OTS or Develop
OTS
Develop
Well received
Rejected
Well received
Rejected
$ - 250K
$ - 350K
65%$550 K
35%$ -100K
85%$500 K
15%-60K
$ 300K
$ - 350K
$ 150K
$ - 410K
$ 195K
$ -123K
$ 128K
$ -61.5K
OTS$ 72.5K
Develop$ 66K
A.Cost ofChoice
B.Probability
&Outcome
C.Outcome
MinusCost
D.C * Probability
E.Final Outcomes
Risk Management
11.5 Plan Risk ResponsesDeveloping options and determining actions to enhance opportunities and reduce threats to the project’s objectives.
Addresses the risks by their priority,
inserting resources and activities
into the budget, schedule, and project
management plan, as needed.
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Planning Process Group
11. Project Risk Management
11.1Plan Risk
Management
11.3Perform
QualitativeRisk Analysis
11.2Identify Risks
11.4Perform
QuantitativeRisk Analysis
11.5Plan Risk
Responses
Risk Management
11.5 Plan Risk Responses
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Inputs.1 Risk management plan.2 Risk register
Tools & Techniques.1 Strategies for negative
risk or threats.2 Strategies of positive
risks or opportunities.3 Contingent response
strategy.4 Expert judgment
Outputs.1 Project management
plan updates.2 Project document
updates
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Risk Management
Response Strategies
Threats OpportunitiesAvoid Exploit
Transfer ShareMitigate Enhance
Accept
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Risk Management
Impacts to the project
Owner
Analysis data
Selected strategy
Action items
Fallback plans
Symptoms/warningsigns (Triggers).
Budget and scheduleupdates to be made.
Contingency requests,requirements, plans.
Risk Register Updates
Risk Management11.6 Control Risks
Identifying, analyzing, and planning fornewly arising risks.Keeping track of identified risks and thoseon the watchlist.Monitoring trigger conditions forcontingency plans.Reviewing the execution of risk responseswhile evaluating their effectiveness.Reanalyzing existing risks.Monitoring residual risks.
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Monitoring and Controlling Process Group
11. Project RiskManagement
11.6Control Risks
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Risk Management11.6 Control Risks
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Inputs.1 Project management
plan.2 Risk register.3 Work performance
data.4 Work performance
reports
Tools & Techniques.1 Risk reassessment.2 Risk audits.3 Variance & trend analysis.4 Technical performance
measurement.5 Reserve analysis.6 Meetings
Outputs.1 Work performance
information.2 Change requests.3 Project management
plan updates.4 Project document
updates.5 Organizational process
assets updates
Risk Management
Results of Risk Monitoring & Control
Workarounds
Contingency plans
Residual risks – expected to remain
Secondary risks – result of responses
Contractual updates
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Risk Management
Project Risk Management – SummarySix (6) processes.Activities of Monitor & Control Risks.
Seven types of risk responses.Risk register.Definition of risk, positive and negative.Solving & interpreting decision trees & EMV.
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Risk ManagementProject Risk Management – SummaryDelphi technique.SWOT analysis.Risk data quality assessment.Sensitivity analysis.Qualitative vs. Quantitative analysis.Interpret quantitative probability andoutcome data chart.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Procurement Management
Procurement Management
Processes to purchase or acquire theproducts, services, or results needed fromoutside the project team to perform the work.
Unless otherwise noted,
consider yourself the BUYER.
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Planning Process Group12. Project
ProcurementManagement
12.1Plan
ProcurementsManagement
Executing Process Group
12. Project ProcurementManagement
12.2Conduct
Procurements
Monitoring and Controlling Process Group12. Project
ProcurementManagement
12.3Control
Procurements
12. Project ProcurementManagement
Closing Process Group
12.4Close
Procurements
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Procurement Management12.1 Plan Procurement ManagementIdentify which project needs can best be metby purchasing or acquiring products, servicesor results outside the project organization.
Consider potential sellers, permits, licenses.
Project schedule greatly influences, and isinfluenced by, purchase and acquisitiondecisions.
Review risks & types of contracts.
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Planning Process Group12. Project
ProcurementManagement
12.1Plan
ProcurementsManagement
Procurement Management12.1 Plan Procurement Management
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Inputs.1 Project management plan
.2 Requirements documentations
.3 Risk register
.4 Activity resource requirements
.5 Project schedule
.6 Activity cost estimates
.7 Stakeholder register
.8 Enterprise environmental factors
.9 Organizational process assets
Tools & Techniques.1 Make‐or‐buy analysis
.2 Expert judgment
.3 Market research
.4 Meetings
Outputs.1 Procurement management plan
.2 Procurement statements of work
.3 Procurement documents
.4 Source selection criteria
.5 Make‐or‐buy decisions
.6 Change request
.7 Project documents updates
Procurement ManagementA CONTRACT is an agreement between two or more parties for the doing or not doing of something specified enforceable by law which may be written or verbal.
Contract Type – The type of contract used is dependent on the degree of uncertainty facing the project.
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Seller’s Risk HighLow
CPPCCost Plus
PercentageOf Costs
CPFFCost PlusFixed Fee
CPIFCost PlusIncentive
Fee
FPPIFixed Price
Plus Incentive
FFPFirm-Fixed
Price orLump Sum
High Buyer’s RiskLowCost-Reimbursable / T & M Fixed Price
Contract Types
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Procurement ManagementProcurement Management Plan
Describes managing procurement from developing procurement documentation through contract closure.
Types of contracts.
Roles and responsibilities, authority.
Coordination.
Constraints and assumptions.
Timeframes.
Pre‐qualified sellers.
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Procurement Management
12.2 Conduct ProcurementsProcess of obtaining seller responses,selecting a seller, & awarding a contract.
Consider:– Project risks and contractual agreements.– Activities resource requirements.– Activity cost estimates.– Cost and schedule baselines.
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Executing Process Group
12. Project ProcurementManagement
12.2Conduct
Procurements
Procurement Management12.2 Conduct Procurements
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Inputs.1 Project management plan
.2 Procurement documents
.3 Source selection criteria
.4 Seller proposals
.5 Project documents
.6 Make‐or‐buy decisions
.7 Procurement statement of work
.8 Organizational process assets
Tools & Techniques.1 Bidder conferences
.2 Proposal evaluation techniques
.3 Independent estimates
.4 Expert judgments
.5 Advertising
.6 Analytical techniques
.7 Procurement negotiations
Outputs.1 Select sellers
.2 Agreements
.3 Resource calendars
.4 Change requests
.5 Project management plan updates
.6 Project document updates
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Procurement Management
Understanding of need.
Life-cycle cost.
Technical capability.
Management approach.
Production capacity &interest.
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Source Selection Criteria Financial capacity.
Technical approach.
Business size & type.
References.
Intellectual & otherproperty rights.
Procurement Management12.3 Control Procurements
Manage procurement relationships.
Monitor contract performance.
Make changes & corrections as needed.
Both the buyer & seller administer contract.
Both parties must meet obligations.
Manage interfaces among
providers on large projects.
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Monitoring and Controlling Process Group12. Project
ProcurementManagement
12.3Control
Procurements
Procurement Management
12.3 Control Procurements
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Inputs.1 Project management plan
.2 Procurement documents
.3 Agreements
.4 Approved change requests
.5 Work performance reports
.6 Work performance data
Tools & Techniques.1 Contract change control system
.2 Procurement performance reviews
.3 Inspections & audits
.4 Performance reporting
.5 Payment systems
.6 Claims administration
.7 Records management system
Outputs.1 Work performance information
.2 Change requests
.3 Project management plan updates
.4 Project document updates
.5 Organizational process assets updates
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Procurement Management12.4 Close Procurements
Process supports the Close Project or Phase Process.
Involves verification that all work & deliverable were acceptable.
Administrative activities such as finalizing open claims and updating records.
Could lead to litigation.
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12. Project ProcurementManagement
Closing Process Group
12.4Close
Procurements
Procurement Management
12.4 Close Procurements
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Inputs.1 Project management plan
.2 Procurement documents
Tools & Techniques.1 Procurement audits
.2 Procurement negotiations
.3 Records management system
Outputs.1 Closed procurements
.2 Organizational process assets updates
Procurement Management
Negotiate Settlements Special case of contract closure.
Mutual agreement or default.
Terms are in the contract.
Buyer may have to compensate seller.
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Procurement Management
Project Procurement Management – Summary
Four (4) Processes.
Know components in each process.
You are THE BUYER unless otherwise stated.
Recognize scenarios to use each type of contract.
Buyer/Seller risk for types of contracts.
Use and importance of evaluation criteria.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Project Stakeholder Management
Stakeholder ManagementProcess of identifying the people, groups, or organizations that could impact or be impacted by the project and then managing, influencing, and impacting them for the benefit of the project and the stakeholder.
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Planning Process Group
13. Project StakeholderManagement
13.2Plan
StakeholderManagement
Executing Process Group
13. Project Stakeholder Management
13.3Manage
StakeholderEngagement
Monitoring and Controlling Process Group
13. Project StakeholderManagement
13.4Control
StakeholderEngagement
Initiating Process Group
13. Project StakeholderManagement
13.1Identify
Stakeholders
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Stakeholder Management13.1 Identify Stakeholders
Process of determining who your stakeholdersare & in what are they interested.
This is an on‐going process throughout theproject.
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Initiating Process Group
13. Project StakeholderManagement
13.1Identify
Stakeholders
Stakeholder Management13.1 Identify Stakeholders
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Inputs.1 Project charter.2 Procurement documents.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Stakeholder analysis.2 Expert judgment.3 Meetings
Outputs.1 Stakeholder register
Stakeholder ManagementClassification Models for Stakeholder
AnalysisPower / Interest Grid.
Power / Influence Grid.
Influence / Impact Grid.
Salience Model – based on stakeholders’ power,urgency, legitimacy.
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Stakeholder ManagementStakeholder Prioritization
Power or Influence in the Organization
Level o
f Su
pport
Manage
Closely
Monitor(Minimum Effort)
Keep
Satisfied
Keep
Informed
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Stakeholder Management13.2 Plan Stakeholder Management
Process of developing a plan to manage theinterests and people with interests in theproject.
Provides a clear, actionable plan to manageinterests on the project.
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Planning Process Group
13. Project StakeholderManagement
10.2Plan
StakeholderManagement
Stakeholder Management13.2 Plan Stakeholder Management
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Inputs.1 Project management plan.2 Stakeholder register.3 Enterprise environmental
factors.4 Organizational process
assets
Tools & Techniques.1 Expert judgment.2 Meetings.3 Analytical techniques
Outputs.1 Stakeholder management
plan.2 Project document updates
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Stakeholder ManagementStakeholder Engagement Classification
Unaware – Does not know about the project.
Resistant – Aware of the project, but don’t likethe change it represents.
Neutral – Are of the project, but don’t care.
Supportive – Aware of the project & supportingit. This is the target level.
Leading – Aware of the project & actively workingto ensure success.
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Stakeholder Management13.3 Manage Stakeholder Engagement
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Inputs.1 Stakeholder management
plan.2 Communications
management plan.3 Change log.4 Organizational process
assets
Tools & Techniques.1 Communication
methods.2 Interpersonal skills.3 Management skills
Outputs.1 Issue log.2 Change requests.3 Project management plan
updates.4 Project document updates.5 Organizational process
assets updates
Stakeholder Management13.4 Control Stakeholder Engagement
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Inputs.1 Project management plan.2 Issue log.3 Work performance data.4 Project documents
Tools & Techniques.1 Information
management systems
.2 Expert judgment
.3 Meetings
Outputs.1 Work performance
information.2 Change requests.3 Project management
plan updates.4 Project document
updates.5 Organizational process
assets updates
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Stakeholder Management
Project Stakeholder Management –Summary
Four (4) Processes.
Know components in each process.
Focus on understanding why stakeholdersare important.
Focus on the importance of transparency& understanding each stakeholders’interest.
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Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
information@ lookingglassdev.com
Professional Responsibility
Professional ResponsibilityDuty to the Profession
Compliance with all organizational rules and policies.
Comply with code of conduct.
Advancement of the profession.
Manage conflict of interest situations & other prohibited professional conduct.
Balance Stakeholder interests.
Understand the culture of foreign project locations and follow their customs and rules.
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Professional ResponsibilityScope & Estimates
Involve the stakeholders in the development ofscope.
Don’t perform project tasks until the scope isverified.
Make scope changes through the scope managementprocess.
Don’t add any work without the sponsor’s approval.
Scope verification is done at the end of each phase.
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Professional ResponsibilityScope & Estimates
All deliverables must be quantifiable.
Develop tasks and assign resources all tasks tocomplete the scope.
Review all deliverables and don’t allow incomplete or incorrect deliverables to be released.
Prepare and publish accurate estimates ‐ If forced to cut budget, don’t make across the board reductions. Modify scope and quality to fit reduced budget.
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Professional Responsibility
AuthorityWork should not begin without a charter.
Understand the limits of your authority as theproject manager.
Take action within your limit of authority.
Escalate to management things that are outsidethe limits of your authority.
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Professional Responsibility
Above All Else…Evaluate the event.
Analyze the impact to cost, schedule, scope,quality, and customer satisfaction.
Develop alternatives with the team.
Go to management only after the above stepshave been completed.
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Professional Responsibility
Above All Else…Negotiations can involve items other thanmoney.
Never shortcut the defined processes.
Poorly planned projects are most likely to becancelled.
Milestone reports are the appropriate level ofdetail for management.
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PMP 2016 Exam Prep
Course ID: PMTONDEMAND35
Contact Hours / PDUs 35info rmation@ lookingglassdev.com
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