Project Scope management processes

Alternative identification - Technique used to see if the project requirement can be completed in some different way.

Ensure that the project includes all the work required and ensure that the only the work required to complete the project successfully.Project scope management is not only concern about what is in the scope but also insures that what is not in the scope is also clearly identified. It encompasses both product scope and project scopeThe key activities that happens as part of project scope management:- Constantly checking to make sure that all the which is the part of the project is being completed, Not letting people randomly add to the project scope (it is necessary to define project scope boundary), Preventing gold platting. .

product scope - Feature and function that characterize the product, well packaged service or results. In a bank service account/mutual fund are the product. Project scope management deals with both product and project scope. project scope involves managing the work of the project . It measure against project management plan, Project scope statement, WBS and WBS dictionary.

WBS - WBS is breaking the project work into smaller and more manageable pieces called workpackges. Each level of WBS is a smaller pieces of the level above. If and work is not part of WBS is not part of the project.WBS can be created with the help of the team. WBS is multilevel and the lowest level is call work package. Work package can be further subdivided. Work packages have meaningful conclusion and deliverables. This whole structure is called WBS.

WBS dictionary - Science the work can not be defined in detail in WBS, a WBS dictionary is created to explain the wprkpackages in more detail like: name of the work package, description of the work package, who is assigned to work on that work package, if there are any assumption or dependency to complete the work package, due date to finish the work package and so on.

Gold platting - Doing more than is required on the project. Actually less then 40% of the project are successful (as project is called successful if it is done with the time and cost limit) so one should focus on completing the project successfully by just doing what is required as a part of the project than dealing with something that is not required and increases the chances of project failure.

Scope planning/ Collect requirement - It defines and produce the documenting stakeholders needs to meet the project objective. The input to this process are project chart because project charter id high level description of the project and shatkholder register because the stakeholder register has t he list of all stakeholder who helps to complete project. The output to this process are Requirement document, Requirement management to know where the requirements are stored and in what format, and Requirement traceability matrix that is a table of trace requirement that show whether the work is done and when.

Scope definition - Process of developing detail description of the project and product. While collecting the requirement list all the different requirements of the project and resulting product or services, define scope detail with detailing the requirements. The input to this process are Project charter and requirement documentation. The output to this process are project scope statement ( that describe the detail of the project deliverables and work required to create those deliverables. The project scope statement has project, product scope description, product acceptation criteria, project deliverables and project constraints.) and updated project documents.

Create WBS - Create work breakdown structure by subdividing the project work into smaller, and more manageable components (work packs). The input to this process are project scope statement and requirement documents. The output to this process are WBS, WBS dictionary, scope baseline and updated project documents. Creating WBS is getting more clarity about the project scope.

Scope Verification - process of formalizing the acceptance of the completed project deliverables. It includes reviewing the deliverables with customs and sponsor that they are completed satisfaction and obtaining the approval of the deliverables by customer or sponsor. This process is different then quality control because Primary concern of scope verification is with acceptance of the deliverables. Quality control is related to correctness of the deliverables and meeting the quality requirement specified for the deliverables. Both the process can be performed togather.The input to this process are Project management plan, requirement documents and validated deliverables. The output to this process are Accepted deliverables, change requests and updated project documents.

Scope control - process of monitoring the status of project and product scope and managing changes to the scope baseline. The input to this process are project management plan. Requirement documents, requirement traceability matrix and work performance information as it has information like which deliverable is started which deliverables is under progress and which deliverable is completed.. The output to this process are work performing report (that is planned vs. actual technical performance), change requests, updated project documents, updated project management plan.

Project Time management processes

Time management - The purpose of time management is to insure that project completing on time. This knowledge area is concern about developing schedule and insuring that project goes on as per agreed schedule. If changes are required in schedule it should happened by following a proper change procedure. It estimate the duration of the project plan activities, devising project schedule, monitoring and controlling the deviation from project schedule.Key activities of time management: - 1. Identify the list of project activities.2. Estimate time and resources required to complete each activity.3. Sequencing the activities after one and other in a logical manner.

Schedule management plan - It is part of project management plan and has information about how project will be planed and how it will be managed and controlled. Schedule management plan defines how schedule contingencies will be reported and assessed.

Project schedule - It is time plan of the project and has the information about when the project will be started and when each of the project activity will happen and in what order and when the project will get completed.Usually schedule software is used to develop project schedule. Project team will input the list of activities to the software as well as dependency of between activity and the software will produce schedule as output. Project schedule and project management plan are different as PM plan is much more then project schedule as it has Risk management plan, HR plan, Procurement plan, Cost management plan and so on.GANTT chart - It is a Bar chart that displays start and end date of the project and illustrate the project schedule and also shows dependencies between the project activities and % completion. There are fore types of project activity dependencies 1. Finish to start - An activity must finish before the successor can start. This is most commonly used dependency.2. start to start - An activity must start before the successor can start.3. finish to finish - An activity must finish before the successor can finish.4. start to finish - An activity must start before the successor can finish. This is least used dependency

Network diagram - Network diagram are extensively used in project time management area to plat the activities dependency. There are two ways to draw a network diagram. This type of network has all four types of dependencies.1. Precedence diagramming model (PDM) or Activity on node(AON) - Boxes shows the activity and arrows shows relationships. 2. Activity on arrow AOA - Arrows represents activities and nodes represents dependencies. This type of network only finish to start dependency is possible.

Estimation - There are different techniques are used estimating the time required to complete a project activity.1. one time estimation - This technique is used to estimate the project schedule only at high level. This technique is the best guess of and double it to take care of any contingencies. This extra time is called padding or buffer. EX. a person estimating will say that this activity would take 2 weeks. 2. Analogous estimating - This technique is based on previous project (or activities). if the last 5 similar project took 6 months, so this one should also take 6 months. This activity is kind of expert judgement.3. parametric estimating - This technique uses a mathematical model to calculate projected time for an activity based on historical records from previous projects or other information. Some kind of common parameters are identical based on previous project data and that parameter is used predict time required to complete the next activity or project.4. Heuristics - This estimation made is based on trial and error. Rule of thumb. 80/20 rule 80% of the problem arise due to 20% of the reasons.

Define activities - Process of identifying specification to be performed to produce the project deliverables. Work package (lowest level of WBS) is decomposed into activities. Activities represents the work necessary to complete the work package. Activities provides the basis for estimating, scheduling, executing, monitoring and controlling the project work. The most important input to this process is Scope baseline. The output to this process are Activity list, Activity attributes and milestone list.

Sequence activities - process of identifying and documenting relationship among the project deliverables. All the activities are connected with 1 predecessor and 2 successor. The input to this process are Activity list, activity attributes and milestone list. The important tech is PDM and Leads and lags. The output to this process are Project schedule network diagram (PDM/AON) and project document upto having list of all activities.Estimate activity resources - Resource required to complete each type of activity. This is the process of estimating resources like the type and quantities of material, people, equipment or supplies required to perform each activity. The input to this process are Activity list, activity attribute, resource calendars as it has the availability of each of the resources. The techniques of this process are expert judgement, alternative analysis (thinking of another way to complete the activity), bottom-up analysis (decomposing the activity further down to understand it in more detail. The output to this process are Activity resource requirements, resource breakdown structure and project documents updates.

Estimate activity duration - Estimating the duration required to complete each activity. Process of approximating the number of work periods needed to complete individual activity with estimated resources (more resource = less time to complete the activity). It should be done by the person who is familiar with the project. Estimate activity duration should be updated continually after each activity completion because as the project progresses it will be more clarity on the project. The input to this process are Activity list, activity attribute, resource calendars and project scope statement. The output to this process are Activity duration estimates and project document updates. The techniques of t his process are expert judgement, analogous analysis, parametric analysis, reserve analysis and three point estimate.Three point estimate - Accuracy of the estimate can be improved by considering estimation of each activity duration by morelikly estimate, optimistic estimate and pessimistic estimate. Based on these three estimate the expected estimate is calculated. This estimate is also called PERT(programme estimate review technique).

Develop Schedule - Process of anglicising activity sequence, duration, resource requirements and schedule constraints to create the project schedule. Usually the scheduling software is used to developing schedule. Revising updating the schedule is the continue process throughout the project. The input to this process are Activity list, activity attribute, project schedule network diagrammed, activity resource requirements, resource calendars, activity duratation estimates, project scope statement. The output to this process are project schedule, schedule baseline, schedule data and project document updates.

Tool and techniques of developing schedule:- There are various tool and technique to develop schedule1. Schedule network analysis techniques - is a technique to generate project schedule. These all technique produce project schedule as output. Project schedule has minimum plan start date and plan finish date for each activity. The final schedule that is the output of developing schedule is called schedule baseline. Once the baseline is schedule it can only be change by approved changes. Meeting the schedule baseline is one of measure of the project success.Difference between schedule development and time estimate - Schedule is calendar based so not only arriving at time estimate of each activity is important but it also important to know if required resources are available at that time.

Schedule network analysis include the following techniques.1. PERT (programme evolution and review technique) - This tech. is based on three time estimate of an activity these three estimates are optimistic, most likely and pessimistic. IF the optimistic estimate of an activity is 10 day pessimistic estimate will be 20 days that the activity will definitely finish in 20 days and the mostlikelt estimate will be 15 days. Below are some formulas.:-Expected duration = P+4M+O/6Standard deviation of an activity = P-O/6Variance of an activity = [(P-O/6)]^2 (^ = SQUARE ROOT)EX - REFER NOTES

2. Critical path method - This is popular technique. It is a longest duration path through a network diagram and determines the shortest time to complete the project.Float (slack) - Float can be calculated once the network diagram is ready. There are three types of float.1. Total float - It is amount of time an activity can be delayed with delaying the project end date or imtermidiatery milestone. It is total amount of time a scheduled activity is delayed from its early start date without delaying it project finish date.2. Free float - It is amount of time an activity can be delayed with delaying its successors early start date. It is amount of time a scheduled activity is delayed without delaying the early start date of any immi9diately following schedule activities.3. Project float - The amount of time a project can be delayed without delaying the externally imposed project completion date required by the customer or previously promised by PM.

3. Schedule compression - Optimization the schedule or to meet some extremely imposed deadline on the project. Schedule compression is done to see if the desired compression date can be met and what will have to change to meet the date. EX. you follow critic path method and arrive that project duration is 100days but customer what the project completion in 95days so you will compressed the schedule to deliver the project 5 days early. there are to techniques to compress the schedule 1. Fast tracking - To think if the activities are happening in sequence can happen parallel to fast track the project. 2. Crashing - Increase resources in critical path activities while making cost and schedule tradeoffs to determine how to obtain the greatest amount of schedule compression for the least incremental cost while maintaining the project scope. Schedule compression example in notes.Impact of schedule compression:-

4. What-if scenario analysis - In this method following question is asked to produce a realistic scheduleWhat if a particular scenario changed on the project, would that produce a shorter schedule.5. Critical chain method - It takes into account both activities and resource dependencies.6. Monte Carlo analysis - This method of analysis uses a computer to simulate the outcomes of a project making 3 point estimate.7. Resource levelling - Resource levelling is used to produce a resource limited schedule. It results in a more even spread of the workload of resource used in project.

Control Schedule - process of monitoring the status of the project to update project progress and managing changes to schedule baseline. Schedule control is concerned with determining the current status of t he project schedule. Determining is the project schedule is changed and managing the actual changes as they occur. The input to this process are Project management plan, Project schedule and work performance information. The output to this process are Work performance measurement, change request, project management plan updates and project document updates.

Project cost management processesCost management - It deals with managing the cost of the project. It estimate the cost of the each project activities and controlling the cost to ensuring that the project activities get done with the define budget. The first activity of project cost management in the come up with project cost management plan that has information like how the project with go about planning in cost and how with this cost be managed and controlled. Project cost management plan is a part of project management plan. The methods used in estimating the cost of each of the activities should be the same as estimating the time of each activities. It establish the cost estimate for resources, establish budgets and keep watch over the cost to ensure that the project stays within the budget approved.

There are 3 cost management processes:-1. Estimate costs - Process of developing approximation of monitory resources needed to complete project activities. This is the Process of estimating monetary resources required to complete project activities. Cost of the specific activity is estimated base on the information available at that point so as project team gets more information about the project activity, cost information may change.The most important input to this process is Scope baseline as it provide actual detail of project scope. Other inputs are project schedule, HR plan, Risk register. The output to this process are Activity cost estimates, Basis of estimate and project document updates.

2. Determine budget - Once the estimate of each activity is complete next is the to determine budget. This is the process of aggregating the estimated cost of individual activities or work package to established an authorized cost baseline.This is where the control account come to play. This cost budget once approved become the cost baseline of the project. Project cost performance measured against the cost baseline (This is how much more the project is costing compare to original cost baseline).The most important input to this process are Activity cost estimates, Basis of estimates, The other input are project schedule, resource calendars.The output to this process are Cost performance baseline, project funding requirement and project document updates.

3. Control costs - This is the last process of project cost management. It is the process of monitoring the status of the project to update project budgets and managing changes to cost baseline. Updating the budget is the recording the cost to date.The key activities happen as a part of control cost are:1. Ensuring the cost expenditure are not exceeding the authorised budget.2. Monitoring the cost performance variance3. Monitoring the work performance (Project progress) and the fund spent.The input to this process are project management plan, project funding requirement and work performance information (project progress).The output to this process are work performance measurement, budget forecasts, change requests, updated project management plan.

Some other related terms:-1) Control account - Control account is important term in understanding project cost management. Project cost is estimated at each activity level, and typically each project has large number of activities so it become difficult to do cost management at individual activity level and hence cost is managed at higher level. Some related activities are club together and their cost is managed together as one unit. This unit is called control account. It is done at one level higher then the work package.While estimating the project time, WBS is created to breakdown the project into smaller deliverables. These deliverables are further broken-down into work packages. The work packages are further broken-down into activities (WBS dictionary).2) Baseline - 1st approved value so schedule baseline means 1st approved schedule.

3) Earned valve management technique - It is a excellent way to trace project process group against project plan. It is a method of objectivity measuring project performance against project baseline. Result form earned valve analysis indicate deviation of the project from the cost and schedule baseline. Following are the terms used for earned valve management techniques1. Planned value PV - Estimated valve of the work planned to be done. It measures in currency. If the planed value is 340$ , it is planned to do work worth 340$.2. Earned valve EV - Estimated value of the work actually accomplished. To calculate earned valve, Just add the budget allocate to each of the activity completed at that point of time. Resulted value is EV at that point of time.3. Actual cost AC - Actual cost incurred in work accomplished.4. Budget at completion BAC - The budget amount of total work.5. Estimate at completion EAC - The current estimate for the total project cost.6. Estimate to complete ETC - From this point, how much more the project would cost to complete.7. Variance at completion VAC - How much over or under budget we expect to be at the end of the project.

4) Cost performance indicator (CPI) and schedule performance indicator (SPI) - These are important parameters. There valve varies between 0-1. If CPI is 0.8 it means we are getting 80 cents out of each $ spent on the project. If SPI is 0.9 it means that project is progressing only 90% of the speed originally planned.

5) Some important formulas of earned valve - 1 Cost variance CV= EV- AC Negative cost variance means that the project is over budget. Positive cost variance means the project is under budget.2. Schedule Variance SV= EV-PV Negative schedule variance means the project is behind the schedule and positive schedule variance means the project is ahead the plane schedule.3. CPI= EV/AC4. SPI= EV/PVEAC=BAC/CPI How much do we expect the project cost.ETC= EAC-AC How much more the project would cost.VAC=BAC-EAC How much over or under budget we expect to be at the end of the project.

6) Cost aggregation - Adding up the cost together and aggregated them at the control account level so that the cost can be managed in a better way.7) Reserve analysis - Once the cost are estimated, some extra amount is added to the estimate as a management reserve to take care of unplanned activities, that might required to be done.8) Expert Judgement - This tech helps to solve estimate cost. Expert is someone who might work on similar project in past and have a good idea to help estimate the activity cost involved.9) Historical relationship - Historical relationship are used to arise some mathematical model to predict the total cost of the project. This is similar to analogous estimating or parametric estimating.10)Funding limit reconciliation - This tech. is use to insure that the cost on the project is budgeted or spent as per the cost of the availability of the fund.

11) Analogous estimating12) Parametric estimating13) Bottomup estimating14) Three point estimates15) Cost of quality16) Vendor bid analysis

17) Project selection methods- Due to limited resources, organizations can not execute all the projects that come their way so they select the project make financial sense to the organization. There are various parameter to such decision.1. Present valve- means value today of future cash flow (if you are getting 250$ benefit in 3 years what is the current value of that cash.2. Net present valve - present value of the total benefit less the costs over time period. Examples :- 3. Internal rate of return IRR - It is like putting money in a bank account and earning interest, so you will put the money in a bank that gives max. interest. It is the same with the project if the project A is with an IRR 25% and project B is with an IRR 15%. The IRR of project A is greater so you will choose project A.4. Payback period - It is the number of time period it takes to cover your investment in the project before you start making profit on the investment made on the project. If the project A has payback period of 5 months and project B has payback period of 12 month you will choose project A.5. Opportunity cost - It the opportunity given up by selecting one project over another. Opportunity cost is the cost related to the next best choice available to pickup among several choices. If the project A is with an NPV of $55,000 and project Bus with an NPV of $85,000. What is the opportunity cost of selecting project B The answer is $55,000, the NPV of project A.6. Benefit cost ratio - It compares benefits to costs (benefit/cost). A benefit cost ratio (BCR) of more than 1 means the benefits are greater than the costs. If the BCR of project A is 2.5 and BCR of project B is 1.5 The project A will be selected as the BCR is higher for the project A.

18) Law of diminishing return - The more you put in something , the less you get out of it. Doubling the number of resources working on the project, will not necessarily get it done in half of the time.19) working capital - The amount of the money the company has to invest in the project, as well as the day to day company operations.20) Depreciation - Large assets purchased by the company lose valve over time. This is called depreciation. There are two forms of depreciation. Straight line depreciation - The same amount of the depreciation is provided for every year, A car of $10,000 and useful life of 10 years, is depreciated by $1,000 per year. Accelerated depreciation - The asset depreciate faster than straight line depreciation. A car with the price tag of $10,000 depreciate $3,000 the first year, $15,00 next year, $1000 the third year and so on.

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Project Quality management processesDefine Quality - Quality is the degree to which the project fulfils the requirments.Project manager along with project team is responsible for the project quality.

List of specification actions required to ensure quality on the project

Importent terms for quality management

3. Continuous improvement or Kaizen - It involves continuous looking for small impovement in the quality. The plan-do-check-act cycle is the basis for quality improvement.4. Gold platting - It refers to giving the customer extras or better performance, but it is not recommonded by PMI.It is better to achive the object (product), instead of gold platting.5. Just in Time JIT - Holding raw material in inventory is too expensive and unnecessory, instead get the deliveory of raw material just when it is needed , thus decreasing inventory is close to zero.

8. Optimal quality / Marginal analysis -Reaching for the point where the incremental revenue or benefit to be received from impoving quality equals to incremental cost to achieve quality.

Define Quality management - Quality management includes creating and following all agreed policies and procedures that meet project's defined quality needs. The aim of the quality management is to ensure that all specified approach to quality is implemented on the project. Project quality management includes the processes and activity that determines quality policies, objectives and responsibilities so that project meets the requirements that was undertaken to produce the product. Three aspects to quality management are:Quality planning, Quality assurance and Quality control. The difference between Quality plan, Quality Assurance and Quality control is :-1. quality planning - planning group. It determine the plan of the quality and major task is prepare quality management plan.2. Quality assurance - Execution group. It determines if the project and organisation is following the policies and procedures. Its major task isto conducts regular project audits. The result of audit are corrective and preventive actions3. quality control - Monitoring and controlling group.Quality control masures project results against project standards(Quality management plan). Its major task is to compares project results against the standards. It inspacts and verify the project's product, defect repairs and measure the quality indicators are inproving or not.

1. Customer satisfaction - Understanding, evaluating, defining and manageing the expectation so that customenr requirment are met. This requires combination of conformance to requirment and fitness for use.

2. Prevention over inspection - It is better to prevent the problem rather then inspect work to find problem.The cost of preventing mistakes is much lesser then the cost of correcting them whenb they are found by inspection.. The modern quality management states that quality is planned, desined and built it - not inspect in.

6. Responsibility for quality / Management responsibility - Theentire organisation has responsibleties relating to quality. The PM has ultimate responsibility for the quality of the product of the project, but each team member must check their work by inspecting it themselves.Senior management has ultimate responsibility for the quality in the organisation as a whole.7. Impact to poor quality - Impact of poor quality results: Increased costs, Low morale, Low customer satisfection, Increases risks, Rework, Schedule delay. Increase the quality can result in increased productivity and cost effectiveness and decreased cost risks.

9. Cost of the quality - It is commenly the all costs incurred for making the quality product that meets the quality requirments.. The cost of the quality can be broken down into 2 catogories. 1. Cost of conformence - This is the money spend during the project to avoid the failoure like Quality taining for team, inspection and testing the product.2. Cost of non-conformance - This is the money spend during and after the project because of the failoure like Rework because work done is not approved by costomer or not meeting the requirments, Scrap and worrenty cost.

Define Plan quality, Input and output - Plan Quality - process of identifying standards and quality requirement to achive quality level of the project and product, and documenting how the project demonstrate compliance. Identifing the standards means the agreed process to work or achive the project result.Once all the standard for the project identified, the aim of quality planning activity invalves and determing what work needs to be done to meet the standard.The major task of quality pan is the creation of quality management plan.

define quality assurance, Input and output - Perform quality assurance - Once quality pan is over the next perfomance of project quality management is to perform quality assurance. It is a process of determining whether the quality standards are being met, work is inproving and deficiencies and deviation are being corrected. It determines if the project and organisation is following the policies and procedures. Its major task is to conducts regular project audits. The result of audit are corrective and preventive actions.

Define quality Control, Input and output - Key focus of quality control areon correction of work. Quality control answer like - is everything ok? whether recommented necessory changes are sucussefully executed? Will the project suceed? Quality control is done through project so the project deliverables are inspected and check against he checklist. Quality matrix management continuously measures whether project quality is improving or not. Qualy control is the Process of monitoring and recording the result of executing the quality activities to assess performance and recommend necessary changes.Its major task is to compares project results against the standards. It insspacts and verify the project's product, defect repairs and measure the quality indicators are inproving or not.

Seven basis tools of quality - There are 7 tools and techniques used to control the quality activities these are collectively known as 7 basic tools of quality.

3. Flow charting - Flow charting - It shows how a process system flows from the begining to end and how the elements interrelate.Its graphical represention helps to analyze how the problem occur.

4. Histogram - Histogram - It is a vertical chart showing how often a perticular variable occured. The hight of each column represents the relative frequency of the variable.

6. Run chart - It is used to identify trend and pattern of variation.

7. Scatter diagram - It tracks two variables to see if they ate correlated.

1. control charts - 1. Control charts - control chart graphically helps to determine if the processes is within acceptable limit. (+- 10%) if it is beyond the limit project is called out of control and the caused to be determined.

2. Cause and effect diagram or fishbone diagram - . Cause and effect diagram - It is also known fishbone diagram as it looks like bone of the fish, it is also known as Ishikawa diagram as it is firstly is dentified be the person name Ishikawa.It is uesd to find the root cause of a defect.It helps to istimulate thinking and organizes thoughts.It can be used in quality planning as well as quality control.

5. Pareto chart - It is also called 80/20 rule, 80% problems occur because of the 20% reasons. It helps to focus attention on most critical issues and cause of the problem. It helps to identify the critical few from the uncrital many.

Introduction to Six Sigma - If the data volume is huge, it is difficult to study the whole volume od data, so the random sample will be studied. Generally if large volume of data are plotted, thegrapg will be belll shaped. Such distribution is called normal distribution. The line corresponding to the top of the bell curve is the median of the data sample.Standard deviation is used to measure how far the data is from the man. In any such distribution, if you go one sigma above and below the man, it cover 68% data. At six sigma, the distribution covers 99.99985% of the data.

Project Human management processesHuman resource - It is all about best the project management team can be handled. It deals with Organize, manage, and lead the project team. Even the project management team is a part of the project team and they are responsible for the project management functions like initiating, planning, executing, monitoring, controlling and closing the various project phases. Key thing about the project Human resource managerment is that each of the project team member should have clear assignment of their roles and responsibilities to avoid the conflict. It deals with all aspects of people management and personal interaction including leading, coaching, dealing with conflict, conducting performance appraisals.An important human resource function is to create recogonition and reward systems.HR management is primiraly done in the execution process group.There should be a formal roles and responsibilies on the project, and these will include assesting PM, responsibilities at meetings and other non-activity related work.. Projects are planned by team and co-ordinate by PM. If the project is large PM may need some of the team help with project management activities. This team is called project management team.

Role and responsibilities:-1. Project sponsor - How is the project sponsor is depend upon type of the project is being executed. if the project is under contract the customer contact person is sponsor. If the project is organisational internal project, the organisation senior management is the sponsor. The key responsibilitie of the sponsor are:-a. During initiation - Provide finincial resources to the project, Issue project charter, Provide authority to PM, priortise between the project constraint.b. During planning - Determine the reprts needed by management to oversee the project, approve scope baseline and project management plan.c. During execution and Monitoring and control - Enforce quality policies, protect project from outside influences, provide clarity on project scope, approve changes to project management plan, ensure viability of the business cased. During closing - Formal acceptance of project deliverables.e. After project closeout - Ensure the realization of the benifits from the project

2. Functional manager - Functional manager manages and owns the resources in a specific department such as IT, HR, C&A etc.Functional manager is Subject matter expert. Functional managers responsibilies are depands upon the organisational products or services. Negotiates with Project manager regarding resources and assign them to the project team.3. Project manager - In charge of the project. May or may not be technical expert. Negotiate with functional manager regarding best available resources. Responsible for the project quality. Accountable for project failoure however the sucess of the project belongs to whole team.

Project manager - PM is incharge of the project but not necessariliy incharge of resources. PM may or may not be subject expert. PM negociate with FM regarding best available resources. PM is responcible for project quality. PM is accountable for project failure: however the project sucess belongs to the whole team.

Conflict management - Conflict is an ineviatable consquence of any organisation. The best way to resolve conflict is to invalve the invalved people and their immidiate manager. Conflict can be benificial too. Conflict can be avoided by:1. Keeping project team informed of the exact project status. 2. Clearly assign the work with no overlapping of responsibiities.3. Continously motivating the team about the work challanges.Seven sources of conflict in order of frequency are:- Schedule, project priorrities, resources, technical opinion, adinistrative procedures, cost, personality.The following are the main conflict resolution techniques:- confronting (problem solving) confroning leads to win-win situation, compromising it is not the best choice as it is a lose-lose situation, Withdrawal(Avoidance), smoothing (accomodating), collaborating it is incorporating multiple viewpoints, Forcing it is pushing the one viewpoint at the expense of other.

Expectancy theory - Employees who believes their efforts will leads to effective performance and who expect to be rewarded for their accompolishments remains productive as rewards meet their expectations.Arbitration - A neutral party helps and resolves the disputes.Perquisites (Perkjs) - Some employees receives special rewards, such as assigned parking spaces, corner offices and executive dining.Fringe benifits - Standard benifits formally given to all employees such as education benifits, insurence, and profit sharing.

Motivation theory - The best way to gain co-opration is to give rewards. McGeorge theory of Xand Y - He believes the all workers fits into two groups X and Y. Theory X - Managers who accept theory X believes that people need to be watched every minute. People are incapable, avoid responsibility and avoid work whenever possible.Theory Y - Manager who accept theory Y believs that people are willing to work without supervision and want to achieve. People can direct their own efforts.Maslow's Hiearrchy of needs - Maslows message is that people are not most motivated to work by sequrity or money. Instead, the highest motivation is to contributing and use their skills, this is call self- actualization.. He created a pyramid to show how people are motivated and said that one can not ascend to the next level until the levels below are fulfilled.Devid McClellands theory of needs - This theory states that people are motivated by one of t he three needs. A person falling into one catogory would be managed differently than a person falling into another catogory. 1. Need of achievement - These peoples are chellanging but are reachable. They like recogonition.2. Need of affitiation - These people work best when cooperating with others. They seek approvel for their work rather than recogonition.3. Need for power - These people are socially oriented rather than personally oriented, they are effective leaders and like to manage others. They like to organise and influence others.

Hygine factors - Poor hygine can destroy motivation like working condition, salary, personal life, relationship at work, security, status. Improving hygine factor will not improve motivation. Hygine factros are not sufficient to motivate people.Motivating agents - Motivating agents are responsibility, self-actualization, professional growth and recogonition

RACl chart - this chart is a type of responsibility assignment matrix that defines the roles assignment more clearly than responsility assignment matrix.Virtual team - Not all the team meet face to face. Team that do not meet face to face are called virtual team.Halo effect - It is something to be aware when dealing with team members. There can be tendancy to rate the team members high or low on all factors due to the impression of a high or low rating on some specfic factors.Issue log- Many PM keep a log of the issues to be resolved on the project. Such logs tell people, that their needs will be considerd, even if they are not considered at the time the issue arises.Power of project manage - The best power of PM are expert and referent. These are based on PM knowladge and personality.Following are the power of PM:-Formal (Legitimate), (formal), Reward, Penalty (coercive) Penalty is worst way to influencing and managing team, Expert- Expert power exist whem PM is an expert in subject matter , Referent. The best form of power are expert and referent. Penely is the worst choice. Formal, reward and penelty are the power derived from the PM's position in the company. Expert power is earned on your own.Management and leadership styles:- Directing,facilitating, coaching, supporting, Autocratic-where the manager has power to do what he want, consultative, consultative-autocratic, consensus - making desicion on group agreement, delegating, bureaucratic- following the procedure exactly, charismatic- enerzige and encourage the tam, particiative, Laissez-faire - Manager is not directly involve in the work of the team but manages and consult as necessary (allow to act(, Analytical, Driver, Influencing.

Develop human resource plan - process of identifying and documenting project roles, responsibility, and required skills, reporting relationship, and creating staff management plan.It has the detail role and responsibilities of each project team member. In addition to that finalising the project hirarcy in who is reproting to who and coming up with project staff management plan is also the part of HR plan process. Staff management plan is a document discribing where and how the team member whould be added and released from the project. In addition to staff management plan also has recogonition and rewards system.Recogonition and rewards system helps Project manager to motivate and charge team to produce wonderful results.The human resource plan includes roles and responsibilities, project organisation charts and staffing management plan.Input to This process is Activity resource assignment.It contains organisational chart and position description. It has responsibility assignment matrix.The output of this process is hrman resource plan and staff management plan.

Acquire project team - process of confirming human resource availability and obtaining the team necessary to complete the project assignments.Acquire project team is a requirment of execution phase and not the requirment of planning phase as you may not require all the team member during the planning of the project but definately requir during the execution of the project. Acquiring the project team involves:- Knowing which resources are preassinged and confirming their availability, Negociating for best possible resources, hiring new employees, outsourceing, managing the risk of resources unavailable. The input to this process is project management plan. The output to this process is updated project management plan, project staff assignment and resource calander.

Develop project team - Develop project team process of improving competencies, team interaction, overall team environment to enhance project performance. Project manager should focus on developing the project team, as great team can produce excellent result. Co-locaton (war rooming) all team member can also help tp develop communications, team bonding and reduces conflict. PM should set some groun pronts like, Each team member has to reach at 8 AM for daily meeting, If more than 10% delay in the project should be immidiate convey to the PM, Unforced circumtance should to noticed to PM immidiately.A major role of PM to insure that all the team is working togather as effectively and efficiently as possible.Establish the trust between the Pm and team members and between all stakeholders.Capitilize on cultural differences. Hold team building activities.Gai trainning for team. Create team culture. There are 5 stages for team formation and development - forming - people are brought togather as a team. Stormin - There are disagreement as people learn to work togather. Norming - team members begin to build good working relationship. Performing - The team become efficient and work effectivelt togather.Adjurning - The project ends, and the team is disanded.The input to this process are Project management plan and project team assignment. The output of this process is team performance assessment.

Manage project team - process of tracking members performance, providing feedback, resolving issues, and managing changes t optimize project performance.This process is done during execution process group and involves all the day-to-day management of people.It involves encouraging good communication, using issue log, keeping in touch, compleing project performance appraisal, making good decision, Influencing stakeholders, being the leader, Actively looking for and helpin resolve conflicts that the team members cannot resolve on their own.

Project management processes

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Communication - It is two way process of transfering information or exchanging comunication from one intites to another. cIf the project is intity, project needs to communicate with other intites in the organisation like other PM, senior management, stakeholders etc. Same the other intites also need to communicate with project because it the two way process. PM is responsible for insuring proper communication to and from the project. A PM spend 90% time on communication. A good PM create a communication management plan, provide reoprt more than just status, ask stakeholders what they need communicated to them, Identifies what communication they need from stakeholders and frequently revisit communications at team meetings to limit communication problems.WBS could be used as communication tool. Risk response stratgies chould be communicated to the stakrholders.

Comunication technology - Communication can take place many ways, including face to face, email, fax, telephone, are some of the popular communication methods.Communication model - Communication model are framed around three parts: the sender, the message, the receiver.Each message is encoded by senderand decoded bt receiver. Factors like receivers education, experience, language and culture affect the way the receiver decodes the message. These type of fectors are called Noise. Medium is the communication method to convey the message.

Communication methods - Communication methods can be grouped into following catogories1 Interactive communication This method can involve two or many people. One person provide the information , other receivers the information and then respond to the information.2. Push information - This method involve one way stream of information. Sender provide information to the people but does not expect the feedback on the communication.3. Pull communication - In this method, PM places the information in a central location. The recipients are then responsible for retrieving or pulling the information from that location.

Communication chennels - If there are 4 people in a project there are 6 ways to communicate. Formula is n*(n-1)= result, result/2 = communication chennels. so if there are 10 people in the project there are 45 chnnels to communicate, it is very complicated if everyone start to communicate with eachother. So there should be a proper method to communicate in a project.It related to general communication skills but they encompasses more then an exchange the information.Communication skill are considered as general skills that project manager utilizes on daily basis.It ensure that all the project information including project plan, rick assessment meeting notes is collect, documented and archived. Also ensures that information is distributed and shared with stakeholders, management and project team on time.

Communication blockers - Communication blockers include such phrases as "what is your game plan", " Getting down to the nitty gritty", "Zero in on problems". These phreses can couse miscommunication with people from other cultures. Sch comments as "what a bad idea" also hamper effective communication. Nisy surroundings, distance between those trying to communicate, Improper encoding the message, making negative comments, hostility, language and culture can become a communication blocker.

Effective communication - The sender should encode the message carefully, determine which communication method to use to send it, and confirm the message is understood by receiver. When encoding themessage, the sender needs to be aware of the following communication factors:- Nonverbal- about 55% of all the comm. is nonverbal, based on physical mannerisms. therefore, most of what is communicated is nonverbal. Paralingual-pitch and tone of voice also help to convey the message. To confirm the message is understood, the sender should ask for feedback, saying things like do you understand what I have explained.Effective listening - The receiver should decode the message carefullyy and confirm the message is understood. If the message is not understood, the receiver should still acknowledge the message by saying I am not sure I understand, can you explain that again.

Identify stakeholders - This the process of identifying all the peoples or organization, Impected by project and doucmenting releventing information regarding their interents, involvement and impect on project success. Prject manager should be expert in project management and stakeholders are technical experts in what need to be done and how it need to be done. Identify stakeholder process is part of initiating a project along with develop project charter. Proper project management requires to identify stakeholders, determine their requirments, expectations and influences, and then incorporte that information into the product and project scope as needed.The PM records this informantion to stakeholders register and use it to develop stakeholder management strategy Al requirments should be gather from all stakeholders before starting the work. Stakeholder management process includes identify stakeholders, planning communications, distributing informations, managing stakeholders and reporting performance are importent espects of stakeholder management.PM should gather following information from stakeholders:- Identify all of them, determine all their requirments, determine thier expectations, determine their interests, determine their level of influences, play how you will communicate with them, communicate with them, manage their expections and influence.Intial list from project charter can be use to identify stakeholders. All the information about stakeholders is complied in stakeholder register.The project manager need to develop stakeholder management strategy to manage all individuals. Stakeholders can be manage individually or in groups. Managing them in groups is easier and less time consuming. Input to this process is project charter and procurement documents.The output to this process is Stakeholder register and stakeholders management strategy.

Plan Communication - process of identifying the information needed by stakeholder and defining communication approach. Follwing should be done for communication:- Ask people what they need and when, planning communication with all stakeholders, customize communication stds within your organization, use multiple methods of communication, confirm communication is actually received and understood, realize that communication is two sided, to and from stakeholders, planning communication with each stakeholder based on the individual's needs and interests, do not forget to include such people as team members bosses in the list of stakeholders.Following information and documents need to be communicated on the project:- Project charter, project management plan and project documents, Impact of other projects, how this project will impect on other pojects, WBS, when resources will be needed, meeting schedule, work assignments, status, new risks uncoved, uncertainities, problems, successes, change to project scope and produt scope, update to project management plan or project documents, upcoming works, delays, The date of the next milestone complition party, performance reports, lesson learned, issue logs, configuration management issues, what type of e-mals will be sent to each stakeholders, lists of planned reviews of project management plan and when updates are likely to be issed, contact information for all stakeholders, method of updating the communication managment plan.The input to this process is Stakeholder register, stakeholders management strategy. The output to this process is Communication management plan and updated project documents.Communication management plan documents how to manage and control communications. Communication managment plan should be writting for all the projects. It must address needs of all stakeholders. Communication management plan is a part od project management plan.

Distribute information - process of making relevant information available to project stake holders as planned. This process involves implementing the communication management plan, which is the part of project management plan. It is not only sending the informantion to the shakeholders but also the receiving the information from the stakeholders.The input to this processis project management plan and performance reports. THe output to this process is updated organizational process assets.

Manage stakeholders expectations - process of communicating and working with stakeholders to meet their needs and addressing the issues as they occur. In this process PM reviews the stakeholder register, stakeholders management strategy, communication management plan, issue logs and changes to determine what to do to manage stakeholders expectations.. Managing stakeholders expectations requires attention to stakeholders needs while working the work is being done and making sure trust is built, conflicts are resolved and problems are prevented. The input to this process is Stakeholder register, stakeholder management strategy, project management plan, issue logs, change olgs. The output to this process are change request, project management plan updates, project document updates.

Report performance - process of collecting work performance information,analyze it, and send it to stakeholders Theperformance information including status reports, progress measurement and forecasts.The input to this process are Project management plan, work performance information, work performance measurements and budget forcasts. The output to the process are performance reports ans chage requests.

Project Risk management Define risk - Risk is an uncertain event or condition that has positive or negative effect on a project.

Risk management - Risk Management is a key responsibility of project manager. Better risk management plan for unforeseen surcumtances, prepare the project team if actually the problem arises team can handle it well. Risk management identifies, analyse and plan for potential risk both positive and negative that might impact the project. Risk management includes Risk. Management planning, Risk identification, qualitative analysis, quantitative analysis of risk, monitoring and controlling the risk responses. Through risk management we should increase the probability and impact of positive events (opportunities), while decreasing the possibility and impact of negative events(threats).Minimize the probability and impact of negative risks while maximize and impact of positive risks

Some important terms for risk management :-1. Positive risk - Positive risk are called opportunities2. Negative risk - Negative risk are called bad risk also called Threat. Up to 90% of the threats that are identified and investigated in the risk management process and can be eliminated3. Risk averse - One who does not take risk called Risk averse.4. Risk Tolerance -The degree of risk that organisation or stakeholders are ready to accept. or the amount or risk is acceptable.5. Risk threshold - This helps identify those risk for which specific responses are needed. A threshold is a point at which risk is become unacceptable. It also identifies the positive consequences of risk and exploit them to improve project objectives and discover efficiencies that might improve project performances.

6. Uncertainty - It is a lack of knowledge about an event that reduces the confidence in conclusion drawn from the data. The investigation of uncertainties may help identify risks.7. Risk factors - 1. Probability do risk, 2. range of positive outcomes,3. Expected timing of the risk in the project life cycle, 4. Frequency of the risk from the source.8. Input to risk management processes - Project background information, Historical record from previous project, Past lesson learnt, company processes and procedures, organizational risk tolerances, organizational risk thresholds, company culture, project charter, project scope statement, team, WBS, Network diagram, time and cost estimates, communication management plan, Staffing management plan, procurement management plan, stakeholders.9. Project manager responsibility to manage risk - Monitor and control various aspects of the project, Implement reward system, Keep stakeholders informed of project progress, stay ahead of the project.

10. Decision tree - If you have to choose between many alternatives, you need to analyse how each choice benefits or hurts the project. Decision tree helps to analyse this. It is the Calculation of the risk over period of the time between two or more choices. formula is to choose between two is :- (Negative %*impact$) + ( positive %*Impact $) + setup cost (see the example in book)11. Risk weighing - If you hany risks and few resources to manage you can measure the risk quantitatively to measure the impact. Risk weighting (Value of risk" Monetary")= Probability of risk* Impact of risk.

12. Risk categorisation - It is the lists of broad, common area or sources of risk experienced by the company or on similar projects. There are many ways to categories risk.A. Risk can be categorised into External = Regulatory, Governmental, Subcontractors, Suppliers, EnvironmentalInternal = Funding, resource, prioritizationTechnical = Requirement, technological, Quality.Project management = Estimating, planning, schedule, communication

B. Risk can also be categories based on origin of risk.Schedule riskCost riskQuality riskScope risk - not understood the work properly and you might have to redo the whole thing.Resource risk - Person is asked to work on another project instead of completing the project in hand.Customer satisfactionC. The batter way is based on specific categories of risk - The customer, Lack of PM efforts, Lack of knowledge of project management, The customs customer, suppliers, Resistance to change, Cultural differences

13. Risk reserve - Activates are gathered in work packages. If their are many work packages it is difficult to manage. Managing cost of each work package is quite inconvenient, therefore WP are club together to create Control account. Costs are managed in control account level means how much is planned for work package within that control account and how much is actually spent and so on are accounted for that level.Amount of activities are added to work packages, amount of work package are added to Control account. There will be many control account within one project. Once the project cost is calculated. Risk reserve is added to take care of any uncertainty because some assumption may made to during calculating the cost of the activities. This reserve can be announced to be you to take care of any known uncertaininite this is called contingency reserve. Once the planed cost is calculated another reserve come to take care of of unknown uncertainties this reserve is called management reserve. This reserve is based on expert judgement.

14. Project risk management processes - This is the process of risk management planning, risk identification, risk analysis, risk response planning and risk monitoring and control on a project. The key activities of risk management is to increase the probability and impact of positive events and decrease the probability and impact of negative events. There are 6 project risk management processes.

15. Risk data quality assessment - This is to assess how accurate and well understood is the risk information. Before PM use the risk information PM should analyze the precision of the data by determining understanding of the risks, data available about the risk, quality of data and reliability and integrity of data.Expected monetary value analysis - To evaluate risk, look at the probability or impact. But calculating the expected monetary valve is a better measure to determine an overall ranking of risks. Expected monetary value (EMV) = P*I

16. Monte Carlo Analysis (simulation technique) - Imagine if you could prove the sponsor that even the project was done 5.000 times, there is only low probably that the end date they desire will be met? This type of result is what Monte Carlo analysis. It is a computer based programme to evaluate overall risk of the project. It uses the network diagram and estimate to perform the project many times and to simulate the cost or schedule result to the project.Workaround - Workarounds are unplanned responses developed to deal with the occurrence of unanticipated risk events. PM who do not perform risk management plan spend most of the time creating workaround. Risk triggers - These are the events that triggers the contingency response. A PM should identify the early warning signs (indirect manifestations of actual risk events) for each risk on a project so the PM will know when to take action.

Risk management processes - The six sequential risk management processes are:- Plan risk management, Identifies risk, Perform qualitative risk analysis, Perform quantitative risk analysis, Plan risk response, Monitor and control risk responseAlthough the processes are done in sequence, but they are often done during the course of the project, staring in the initiating all the way through the end of the project.. Risk can be identified any time, as can the responses for what to do about the new risks. So if the risk is uncovered after the initial risk identification process, it must be analyzed, response must be planned.

Plan Risk management - Risk management is one of the project management key activity and it requires proper planning. This is the process of defining how to conduct Risk management activities for the project. This is such an important process that requires involvement of PM, project sponsor, team, customer, experts and other key stakeholders. The out put of this activity is Risk management plan (contains Methodology, roles and responsibilities, budgeting, timing, risk categories, probability and impact, tolerances, report formatting, tracking). Input to Risk management pan are Project scope statement, cost management plan, schedule management plan, communication management plan.

Identify risk - It is the process of determining which risks may effect the project and documenting those risks characteristics. This processes need involvement of all. Identification of risk can also be done by brainstorming, Delphi technique, Interviewing and by root cause analysis.Input are all the management plans, stakeholders registers, scope baseline. The major identification of risk occurs during planning, as the scope baseline (WBS, WBS dictionary, Project scope statement) is an imported input for risk identification. Risks can also be identified by SWOT analysis - identify project strengths and weakness and thereby identify opportunities and threats. Identification of risks can also be done by checklist analysis, Assumption analysis and diagramming Technique.The output is Risk register. Risk register is the place where most of the risks information's are kept. Risk register should be constantly updated with information as identify risk later risk management processes are completed. Risk register contains lists of risks, list of potential responses, root causes of risks, updated risk categories.

Perform qualitative risk analysis - It involves shorlisting of identified risks. After risk identification There will be some of the risks are so negligible to work on, so which one we should be worry about to work on priority bases, that can be done after analyzing the risks and categorised them by high, medium and low risk. It also involves noting the risks that move more quickly through the process then others. Reason for the=is could include the fact that the risk may occur soon or will require a long time to plan the response.This is the process of prioritizing risk for further analysis or action by assessing their probability of occurrence and impact on the project.The input for this process are Risk management plan and Risk register. The output of this process is updated Risk register (that includes risk ranking the project compared to other projects, List of prioritized risks, prepare the risks watchlist( list of risks that need further analysis or non-critical risks).

Perform quantitative risk analysis -This is process of numerically analysing the effect of identified risks on overall project objectives. It should be done if it is worth spending time and analyse the risk otherwise qualitative analysis is good enough. Numerical risk data is usually contacted by analysing by past project data or by expert judgement. Some times numerical data is also used for simulation and one of the simulation technique is montecarlo analysis (to check project is executed 100 times). Numerical data is also used for decision tree concept. Qualitative analysis is done for large multiyear's projects.The input of this process is updated risk register while qualitative analysis, Risk management plan, cost management plan. The output of this process is quantified list of prioritised risk register (updated risk register).

Plan risk responses - Once the risks are identified and analyses, the next step is planning what can be done about these risks (like do something to eliminate threats before it happens, do something to make sure the opportunities happen, Decrease the probability and impact of negative risks or increase the probability and impact of positive risks. For the remaing threats that can not be eliminated those should have contingency plan or reserves (do something if the risk happen) and fallback plan (do something if the contingency plans are not effective. Strategies are different for passive risks and negatives risks. For negative risk: 1. one of the strategy is to avoid the risk. 2. Transfer the risk to someone else (insurance company). 3. Mitigate the probability and impact of the risk. 4. Accept the risk and do something about it when it occurs.For positive risk statgies are: 1. Exploit the risk it is result of avoid. 2. Share the risk with joint venture. 3. Enhance the risk is the result of mitigate. 4. accept the risk. Process of developing options and actions to enhance opportunities and to reduce threats to project objectives.Input for This process are Risk register and risk management plan.The output of the process are Updated project management plan cos change in the risk management will be the change in project management plan too. Updated project documents, Updated risk register.

Monitoring and controlling risks - This is the process of implementing risks response plan, look for the occurrence of risk triggers, tracking identified risks, monitoring residual risks, identifying new risks, develop new reis responses, collect and communicate risk status, communicate with stakeholders about the risks, ensure the risk management plan is being followed, revisit the watchlist to see if additional risks responses need to be determined, loos for unexpected effects or consequences of risk events, re-evaluating risks identification and the process effectiveness throughout the project. The other works involved for monitor and control risks are workarounds, risk assessment, risk audits, reserve analysis and status meetings. Input for this process are Risk register and risk management plan. In this process risk audits , risk re-assessment to review if new risk are arise, reserve analysis if new risk need reserve cost, are important.The output of this process is updated risk register. The output of this process is updated risk register where new risks are added and risk those are no more applicable are removed. Change request is also can be the output of this process as new risk arises that may need attention of stakeholder and may need reserve cost.

Integration management

PIM management involves unification, consolidation, articulation and intregative actions that are crucial for successfully completing the project.PIM is high level work that PM does.It invlaves manageing interdependecies among aother knowladge areas.Progect management processes does not happens independently ex. adding new resources in project may require changes in in cos or schedule or both. Dealing with such situation PM is integrating the processes of project management and It is an example of project Integration management.roject manager may play many roles to manage the project but the key role of the PM is to perform integration. As the project progresses the role ofthe project team is to concentrate on completing the project activities. The key role of project sponsor is to protect the project team from unneecessary changes and to insure that the project has the sufficient resources to complete the project. It is the Pm to put all the pieces togather to get the project done faster, cheaper, and with few resources while meeting project objectives.Why the project is started at all?THere are two bases cotogries of the project 1 contract - Organisation that takeup the contract so, one organisation signs the contact with another to execute the project under the terms and conditions witten in the contract.2. Business - It is driven by the business need of the organisation itselfThere is no external contract as such here. (organisation maytakeup a project to increase its costomer response time. What ever type of the project there should be a formal process of selecting a project in all organisation. To take better use of limited resources if the organisation has 1 or 2 project with use of same corporate resources, organisation will take the 1 with more profitable to work on.There are two ways of selection method:1. Benifit measurement methods - Comparing project with another with more profit. It involve different methods such as Murder board, peer review, scoring models, economic models, benefit compared to cost.2. Contraint Optimisation methods - It is a mathamatical approch that the project is finincial vivel or not. such as Linear programming.This knowledge area is concerned coordinating all the aspects of the project plan.It involves identifying and defining the work of the project and combining and unifying appropriate process.Satisfying the customer, stakeholders requirements and expectations.Sojme New Key term - to understand the processes - 1. Work Authrization system - There should be a formal process of authrizing work within the project. To be a internal project team member or a project contractor there should be formal process of go ahead to start work on the project.2. Corrective action - Any action taken to bring expected future performance of work in line with the PM plan. EX. if the milestone is delayed corrective action is to add additional resourcs to ensure the final project deadline is not delayed.Corrective action invalves of implementing action is to deal with the action deviation from the performance baseline.3. Preventive action - It deals with the inticepated or possible deviation from performance baseline. ex. to ensure the project are not delayed you do the estimation of the work and assign enough resourses into the project so that project do not ger delayed because of the lack of the resources.4. Change control system - There are chances to change in project requirment. The change control system are the formal document procedure, paper work, tracking system system for authorizing changes. It analyses all incoming change request and decide whether to except the changes or reject the change request.

Develop project charter - Project charter formally stablish the existitance of the project and provide the authrity to Pm to commit the money and other cooperate resources to the project. It contains high level of project requirment and it should be created by Project sponsor and handed over to PM. PM can do the ground work to prepare Project charter but it need to signed by project sponsor. I some of the organisation Prjeoct charter need to be cover detail risk, schedule, cost etc.but all of these are the part of Project management plan and it should be done during planning phase when more detail of the project is available to do.

Project management plan - It is the process of documenting the actions necessary to define, prepare and integrate and coordinate all the subsidiary plans. Subsidiary plans are cost management plan, Schedule M p, Human resource mp, Quality mp and Risk mp. Project Management plan not only describe when the project will be started, what activity should be done and when the project whould get over but also the project management plan is a detail document and it discribes how the project whould be executed, monitored & controlled and closed.Not only the project schedule develop by microsoftproject is project management planbut the PM plan contains all subisidiry plan and their baseline valve Ex. Time management plan section of project management plan would also mantion how long the project will take to get over, if it say 180 days also called Baseline project time value. Baseline valve is initial agreed valve in project management plan.PM plan also contains the allowed varience in the baseline value.ex. if the evarience is 10% the totel days are 198 days. This project time mNGEMENT VALUE WITH VARIENCE COLLECTIVELY CALLED pERFORMANCE MEASUREMENT OF THE PROJECT TIME. The input to Project management plan is project charter and Out put form planning process group.

Direct and manage project execution - process of performing the work defined in the project management plan to achieve the project objectives.Input to this process is PM plan , Approved corrective or preventive action & any changes. The out put to this process id project deliverables, New changes, Implementation of corrective or preventice actions and approved changes.

Monitor and control project work - process of tracking, reviewing, regulating the progress to meet the performance objectives defined In the project management plan. Monitoring include progress reporting, project measurement, and frocasting. Performance reports provides information on the project performance with regards to scope, schedule, cost resources, quality, and risk which can be used to input to other processes.Monitor and control project work is not the process area that track whether 180 + 10% days are met or not The out put of this process is corrective and preventive actions. This process insure the PM should take appropriate corrective and preventive actions to close preformance measurement baseline. This process also identified defects. Defect repair actions are similar to change control system.Key input to this process is PM plan, work perfdormance information.

Perform Integrated project control - process of reviewing all change requests, approve changes and managing changes to the deliverables, organisational process assets, project documents, and project management plan.This is where all the recommondation changes, corrective actions, preventive actions, and defect repairs are evaluated accroess all the knowladge areas and either approved or rejected.Process of change - Any change when it comes to the project the first thing to do is to evaluated its impact on the project after PM look for various options to accomodate the change, only when the impact analysis and possible options are over the PM should present the internal (project sponsor) and external customer for their approval. Change control board - Team that takes up the analysis each of the incoing changes and also does the impact analysis of each changes and finally approves or rejects. The PM/PS and couple of project team members are generally are the part of the change control board. The input to this process is PM plan, work performance information, change request.

Close project - process of finalizing all activities across all of the management process groups to formally complete the project or phase. This process insure that the project or the phase is formally completed when all the technical work of the project is completed. THe important part is this process insures the completion of the projects even if it is terminated. The input to this process is PM plan , the key deliverable is Acceppeted deliverables.

Project Procurement management processesProcurement - means procureing or buying. Generally companies has different department for handling the procurement outside. PM should be aware of procurement activities therefore he can help procurement epartment to buy right items for the project. Procurement knowladge also helps to manage supplier or seller.It involves purchasing goods or services from the Vendors, contractors, suppliers and others outside the project team.When discussing the procurement processes it is assumed that the discussion is taking place from your assepect as buyer., while seller are external project team.The seller might manage their work as a project and you as a buyer become key stakeholder in their project.

Contract - It has a terms and conditions to buy or sell something. It has the details like what item need to buy and how much money it will cost.It is a mutual binding legal agreement that obligate seller to provide the specified products, services or results, and obligate buyer to provide monetary or other valvble consideration. A contract also called agreement. an understanding, an undertaking, or a purchase order. Contract always has minimum two parties. A contract should formal and in writing. If something is not specified in contract then it requirs contract change and approval for inclusion. Changes to contracts should be reduced to writing and signed by all parties involved. A contract manager is responsible for creating and managing the contract also called contract officer, procurement officer or procurement manager.Contracting can be done by two types

1. Centrilized contract - In this a single contract manager handles multiple projects and is expert in contrating.It has standrized company practises. Difficult to get contracting help as this person may be busy on multiple projects.

2. decertilized contract - A contract manager is assigned to the project full time and more loyal to the project but may not be expert. This person will report to project manager. PM has more control and the procument process can be speeded up. There will be less standrdization of contracting practise from one project to another.

There are basicly three types of contracts - Cost based/Fixed price/Time and material.1. Costbased - These can be various type like cost+fee (CPF), cost+pecentage of costs (CPPC), cost+fixed fee (CPFF). The biggest diadvantage of cost based contract is that seller makes more money if the cost goes higher so there is no insentive to seller to contol the cost. other disadvantages are that it requires auditing all sellers invoices and that increases buyers afforts.The advantages of cost based contract are that it is easier to get seller work on such contract, such contract are easy to draft and It is less costly than fixed price because seller does not have to accout for their risk.EX:- (fixed fee + % of project cost as fee more the cost of project more the fee)

Time and material - this type of contract generally used for smaller projects. Thesr are based on per item/per hour/per day. Seller has no incentives to control cost so it is suitable for small projects. It is a popular contract. Disadvantage is it requires monitoring of daily output. the advantage is it is easy to creat.

Fixed price (FP) - These type of contracts are signed when the work scope is very clear. In fixed price contract sometimes incentive are also introduce for finishing the project before time. The advantage is that the seller try to control the cost and seller has strong incentives to control cost thus these contracts are efficient. The disadvantages are that seller may under quote to get the contract and later try to make high margins on change requests, even if seller is not making money they stop working on it, so as a buyer be careful and reasonable while signing the contract do not sign the contract just because the seller quoted low. The other disadvantage are not having a proper SOW can result in seller not providing some of the deliverables.

Some Key terms:-1. RFI: Request for information - To know the requirments.2. RFP: Request for purchase - issue praposal after knowing the requirments3. RFB: Request for bids - some times RFP called RFB.4. RFQ: Request for quotation - this is also RFI for standard items.5. PO: Purchase order - simplest contract.6. SOW: statement of work - define the scope of t he deliverables as per contract by project team.7. NDA: Non-discloser agreement - 8. LOI: letter of intent - Generally issue from buyer to seller that buyer is interestd in buying items.9 T&C: terms and conditions - In any contract there are term and condition read theT&C before signing the contract.

Project procurement management - It includes the processes required to pruchase or acquire products, or services or results needed form outside the project team. By following the procurement processes you can determine whether to issue fixed price contract or time and material base contract. THere are 4 types of procurement processes.

1. Plan procurements - In this process what need to procured from outside need is indentified once the item to be procure from identified the next step is to documenting project purchase decision, specify the approach, and identifying potential sellers. The input to this process are scope baseline, risk register, requirment documentatiuon, teaming agreement, project schedule cost performance baseline. The technique to the process are make or buy decision and contract type that which type of contract is best suited.The output to this process are procuement management plan, make or buy decision (clearly spicified what need to be procure externally in the of scope of work), procument related document such as RFI, RFP and so on, seller selection criteria and procument statement of work.

Make or buy analysis - It is to decide that the items need to be percured from out side or make in internally. If you are not expert in this ask any seller to do this for you. In procurement planning it is also importent to know which type of contract is best suited

2. Conduct procurements - process of obtaining sellers responses selecting a seller and awarding the contract. This is the process of selecting the seller be evaluating the proposal submitted by different sellers. The input to this process are all output of plan procurement.The importent input to this process is sellers praposals.Once the procurement document and list of qualified sellers are ready as a part of procurment planning process the next step is to ask seller to submit their praposal against the RFP. The techniques for this process are having a bidder conference to get equal information to all selected vendors, Independent estimates to get evaluation of cost of each item as all vendor quote different cost for each item, procurement negotiation (it should be done by nero down the qualified vendors but there should be 3/4 vendors). The output to this process are sellced seller and procurement contract award. Contract has scop of work schedule of the deliverables buyer, roles and responsibities of seller and pricing.

Administer procurements - Once the seller is selected and contract is awarded the next step to adminter the procurement.This is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. The input to this process are contract, procurement documents project management plan and work performance information (this has the information about the progress of the work,who much work is completed and how much money is spent to complete this work as per the contract, performance report (created by the seller that what they have completed) and approved change request. The out put to this process are procurement documentation, project management paln updates and change requests.

Close procurement - process of completing all project procurements. This is the process of formally colsing the project the input to this process are project management plan and procurement document like contract, RFP prformance reprot and so on this need to be archive for the need of future references. The techniques to this process are procument audits to identifiy sucess and failure of the contract adminstration process and finding the documentation for lesson learnt, negotiotion settlements and records management system. The output to this process is close procurement that is a actual letter handed over by buyer to seller about the closing of the contract.