Project management Overview

Ph. D VO QUOC BAO NATIONAL University of civil engineering Hanoi June 2009

content

i. introduction i.1 what is a project i.2 the project life cycle i.3 project stakeholders i.4 Project organizational structure i.5 what is project management I.6 project management processes i.7 areas of expertise I.8 Major Project Documents

Content 2. project management knowledge areas 2.1 project integration management 2.2 project scope management 2.3 project time management 2.4 project cost management 2.5 project quality management 2.6 Project human resource management 2.7 project communication management 2.8 project risk management 2.9 project procurement management

1. introduction
1.1 what is a project:

A Project is a temporary endeavor to create a unique product, service, or result. Temporary : every project has a definite beginning and a definite end A Project creates unique deliverables Projects are not ongoing efforts

Operations and Projects

Share many characteristics such as
Performed by people Constrained by limited resources Planned, executed and controlled

Operations are ongoing and repetitive Projects are temporary and unique

1.2 project life cycle and project phases

No single best way to define an ideal project life cycle Generally : initial phase; intermediate phase (s); final phase Construction projects: 5 phases: Initial and idea phase: Pre-Feasibility Study Development phase: FS, Agreements and Approval Execution phase: Design, Construction and Handover Operation phase and Maintenance: Exploitation Final phase and recycling: Renovation or Demolition

Typical Sequence of Phases in a Project Life Cycle

1.3 Project stakeholders Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion. Key project stakeholders are: PM, PM team and PMO or PMU Customer/user Performing organization Sponsors, financial and insurance organizations Influencers: local people, authorities

The relationship Between Stakeholders and the Project

Stakeholders Influence Over Time

1.4 Project organizational structure Project organizational structures can be: Functional Organization (Figure 2.7) Projectized Organization (Figure 2.8) Weak Matrix Organization (Figure 2.9) Balanced Matrix Organization (Figure 2.10) Strong Matrix Organization (Figure 2.11) Composite Organization (Figure 2.12) Organizational Structure Influence on Projects (Figure 2.6)

Functional Organization

Projectized Organization

Weak Matrix Organization

Balanced Matrix Organization

Strong Matrix Organization

Composite Organization

Organizational Structure Influence on Projects

1.5 What is project management

Definition Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of project management processes of initiating, planning, executing, monitoring and controlling, and closing.

PM is the person responsible for accomplishing the project objectives. Managing a project includes:
Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for Quality, Scope, Time and Cost. Adapting the specifications, plans , approach to the different concerns and expectations of various stakeholders

i.6 Project management processes

I.6.1 Project Management Process Concept The Plan-Do-Check-Act Cycle (Figure 3.1) Project Management Process Groups Mapped to the Plan-Do-Check-Act Cycle (Figure 3.2) Project Boundaries (Figure 3.5) I.6.2 Project Management Process Groups Summary of Process groups Interactions (Figure 3.4) Initiating Process groups (Figure 3.6) Planning Process Groups (Figure 3.7) Execution Process Groups (Figure 3.8) Monitoring and Controlling Process Groups (Figure 3.9) Closing Process Groups (Figure 3.10) I.6.3 Process Interactions (Figure 3.11) I.6.4 Project Management Process Summary (Table 3.45)

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The Plan-Do-Check-Act Cycle Defined by Shewhart Modified by Deming Approved by ASQ

The Plan-Do-Check-Act Cycle

Project Management Process Groups Mapped to the Plan-Do-Check-Act Cycle

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Project Boundaries

Summary of Process groups Interactions

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Initiating Process groups

Planning Process Groups

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Execution Process Groups

Monitoring and Controlling Process Groups

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Closing Process Groups

Process Interactions

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1.7 areas of expertise

1. 2.

3. 4. 5.

Project management body of knowledge Application area knowledge, standard and regulation Understanding the project environment General management knowledge and skills Interpersonal skills

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Areas of Expertise needed by Project Team

1.7.1 PM body of knowledge

The Knowledge of Project Management described in the PMBOK GUIDE consists of: Project life cycle definition Five project management process groups Nine Knowledge Areas

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1.7.2 Application Area Knowledge, Standards and Regulations

Functional departments, and supporting disciplines such as legal, production and inventory management, marketing, logistics, and personnel Technical elements, such as software development or specific engineering, Management specifications, such as government contracting, community development, and new product development Industry groups such automotive, chemical, agriculture, and financial services

1.7.3 Understanding The Project Environment

Virtually all projects are planned and implemented in a social, economic, and environmental contexts and have intended and unintended positive and/or negative impacts: Cultural and social environment: how project affect people and how people affect the project International and political environment Physical environment

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1.7.4 General Management Knowledge and Skills

General management encompasses planning, organizing, staffing, executing, and controlling: Financial management and accounting Purchasing, procurement, logistics and supply chain Sales and marketing Contracts and commercial laws Strategic, tactical, and operational planning Organizational management (structure, behavior, personnel administration, compensation, benefits, and career paths) Health and safety practices Information technology

1.7.5 Interpersonal skills

Effective communication Influencing the organization Leadership Motivation Negotiation and conflict management Problem solving

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1.8 Major Project Documents

1.8.1 Project Charter: Formally authorizes the project. 1.8.2 Project Scope Statement: States what work is to be accomplished and what deliverables need to be produced. 1.8.3 Project Management Plan: States how the work will be performed. It includes:
Scope Management Plan; Time Management Plan Cost Management Plan; Quality Management Plan Human Resource Management Plan; Communication Management Plan Risk Management Plan; Procurement Management Plan

2. Project Management Knowledge Areas

Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communication Management Project Risk Management Project Procurement Management

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2.1 Project Integration Management

Project Integration management includes the processes needed to identify, define, combine, unify, and coordinate the various processes and project activities to ensure successfully meeting customer and other stakeholder requirements and managing expectations. Develop Project Charter Develop Preliminary Project Scope Statement Develop project Management Plan Direct and Manage Project Execution Monitor and Control Project Work Integrated Change Control Close Project

2.1.1 Develop Project Charter

The Project Charter is the document that formally authorizes a project or a project phase.
1.Inputs Contract (when applicable) Project statement of work Enterprise environmental factors Organizational process assets 2. Tools and Techniques Project selection methods Project management methodology Project management information system Expert judgment 3. Output Project charter

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2.1.2 Develop Preliminary Project Scope Statement

Developing the Preliminary Project Scope Statement that provides a high-level scope narrative. 1.Inputs Project Charter Project statement of work Enterprise environmental factors Organizational process assets 2. Tools and Techniques Project management methodology Project management information system Expert judgment 3. Output Preliminary project scope statement

2.1.3 Develop PM Plan

Documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a PMP 1.Inputs Preliminary project scope statement Project management processes Enterprise environmental factors Organizational process assets 2. Tools and Techniques Project management methodology Project management information system Expert judgment 3. Output Project management plan

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2.1.4 Direct and Manage Project Execution

Executing the work defined in the PMP to achieve the projects requirements defined in the project scope statement 1. Inputs Project management plan Approved corrective action Approved change requests Approved defect repair Validated defect repair Administrative closure procedure 2. Tools and Techniques Project management methodology Project management information system

2.1.4 Direct and Manage Project Execution

3. Outputs Deliverables Requested changes Implemented change requests Implemented corrective actions Implemented preventive action Implemented repair Work performance information

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2.1.5 Monitor and Control Project Work

Monitoring and Controlling the processes used to initiate, plan, execute, and close a project to meet the performance objectives defined in the PMP 1. Inputs Project management plan Work performance information Rejected change requests 2. Tools and Techniques Project management methodology Project management information system Earned Value technique Expert judgment

2.1.5 Monitor and Control Project Work 3. Outputs Recommended corrective actions Recommended preventive actions Forecasts Recommended defect repair Requested changes

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2.1.6 Integrated Change Control

Reviewing all change requests, approving changes, and controlling to the deliverables and organizational process assets
1. Inputs Project management plan Requested changes Work performance information Recommended corrective actions Recommended defect repair Deliverables 2. Tools and Techniques Project management methodology Project management information system Expert judgment

2.1.6 Integrated Change Control

3. Outputs Approved change requests Rejected change requests Project management plan (updates) Project scope statement (updates) Approved corrective actions Approved preventive actions Approved defect repair Validated defect repair Deliverables

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2.1.7 Close Project

Finalizing all activities across all of the Project Management Process Groups to formally close the project or project phase. 1. Inputs Project management plan Contract documentation Enterprise environmental factors Organizational process assets Work performance information Deliverables

2.1.7 Close Project

2. Tools and Techniques Project management methodology Project management information system Expert judgment 3. Outputs Administrative closure procedure Contract closure procedure Final product, service, or result Organizational process assets (updates)

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2.2 Project Scope Management

Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully Scope Planning Scope Definition Create WBS Scope Verification Scope Control

2.2.1 Scope Planning

Creating a project scope management plan that documents how the project scope will be defined, verified, controlled, and how the WBS will be created and defined. 1. Inputs Enterprise environmental factors Organizational process assets Project charter Preliminary project scope statement Project management plan 2. Tools and Techniques Expert judgment 3. Output Project scope management plan

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2.2.2 Scope Definition

Developing a detailed project scope statement as a basis for future project decisions 1. Inputs Organizational process asset Project charter Preliminary project scope statement Project scope management plan Approved change requests

2.2.2 Scope Definition

2. Tools and Techniques Product analysis Alternatives identification Expert judgment Stakeholder analysis 3. Outputs Project scope statement Requested changes Project scope management plan (updated)

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2.2.3 Create WBS

Subdividing the major project deliverables and project work into smaller, more manageable components. 1. Inputs Organizational process assets Project scope statement Project scope management plan Approved change requests

2.2.3 Create WBS

2

3.

Tools and Techniques Work breakdown structure templates Decomposition Outputs Project scope statement (updates) WBS and WBS Dictionary Scope baseline Project management plan (updates) Requested changes

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2.2.4 Scope Verification

Formalizing acceptances of the completed project deliverables
1. Inputs Project scope statement WBS Dictionary Project scope management plan Deliverables 2. Tools and Techniques Inspection 3. Outputs Accepted deliverables Requested changes Recommended corrective actions

2.2.5 Scope Control

Controlling Changes to the project scope.
1. Inputs Project scope statement WBS and WBS Dictionary Project scope management plan Performance reports Approved change requests Work performance information 2. Tools and Techniques Change control system Variance analysis Replanning Configuration Management system

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2.2.5 Scope Control

3. Outputs Project scope statement (updates) Work breakdown structure (updates) WBS dictionary (updates) Scope baseline (updates) Requested changes Recommended corrective action Organizational process assets (updates) Project management plan (updates)

2.3 Project Time Management

Project Time Management includes the processes required to accomplish timely completion of the project. The Project Time Management processes are: Activity Definition Activity Sequencing Activity Resource Estimating Activity Duration Estimating Schedule Development Schedule Control

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2.3.1 Activity Definition

Identifying the specific schedule activities that need to be performed to produce the various project deliverables.
1. Inputs Enterprise environmental factors Organizational process assets Project scope statement Work breakdown structure WBS dictionary Project management plan

2.3.1 Activity Definition

2. Tools and Techniques Decomposition: subdividing the project work packages into smaller, more manageable component called activities. Templates: a standard activity list or portion of an activity list from previous project is often usable as a template for a new project Rolling Wave Planning: Progressive elaboration planning, near term is planned more detailed, far in the future is planned less detailed. Expert Judgment Planning Component: Control Account, Planning Package

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2.3.1 Activity Definition

3. Outputs: Activity List Activity Attributes: identifier, description, predecessors, successors, logical relationships, Leads and lags resource requirements, imposed dates, constrains and assumptions. Milestone List Requested changes

2.3.2 Activity Sequencing

Identifying and documenting dependencies among schedule activity. 1. Inputs: Project Scope Statement Activity List Activity Attributes Milestone List Approved Change Requests

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2.3.2 Activity Definition

2. Tools and Techniques: Precedence Diagramming Method (PDM) Or Activity-on-node (AON): PDM includes 4 types of dependencies: - Finish-to-Start - Finish-to-Finish - Start-to-Start - Start-to-Finish

2.3.2 Activity Definition

Arrow Diagramming Method (ADM) Or Activity-on-arrow (AOA) ADM uses only finish-to-start dependencies and can require the use of Dummy relationship called dummy activities, which are shown as dashed lines, to define logical relationships correctly. Since dummy activities are not actual schedule activities (no work content), They are given to zero value duration for schedule network analysis purposes.

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2.3.2 Activity Definition

Schedule Network Templates Dependency Determination: 3 types of dependencies are used to define sequence among the activities: Mandatory dependencies: inherent in the nature of work being done (physical or hard logic) Discretionary dependencies (preferential or soft logic) External dependencies: relationships between project activities and non-project activities

2.3.2 Activity Definition

-

Applying Leads and Lags: A lead allows an acceleration of successor activity A lag directs a delay in successor activity

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2.3.3 Activity Resource Estimating

Estimating the type and quantities of resources required to perform each schedule activity. 1. Inputs: Enterprise environmental factors Organizational process assets Activity list Activity attributes Resource availability Project management plan

2.3.3 Activity Resource Estimating

2. Tools and Techniques: Expert judgment Alternative analysis Published estimating data Project management software Bottom-up estimating

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2.3.3 Activity Resource Estimating

3. Outputs: Activity resource requirement Activity attributes (updates) Resource breakdown structure Resource calendar (updates) Requested changes

2.3.4 Activity Duration Estimating

Estimating the number of work periods that will be needed to complete individual schedule activities. 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Activity list Activity attributes Activity resource requirements Resource calendars Project management plan: - risk register, - Activity Cost estimates

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2.3.4 Activity Duration Estimating

2. Tools and Techniques: Expert judgment Analogous estimating Parametric estimating Three points estimating: - Most likely - Optimistic - Pessimistic Reserve analysis

2.3.4 Activity Duration Estimating

3. Outputs: Activity attributes (updates) Activity Duration Estimates: Include some indication of the range of possible results: - 2 days (assuming a five-day workweek) - 15 percent of probability of exceeding

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2.3.5 Schedule Development

Analizing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule. 1. Inputs Organizational process assets Project scope statement Activity list Activity attributes Project Schedule network diagrams Activity resource requirements Resource calendars Activity duration estimates Project management plan: - risk register

2.3.5 Schedule Development

2. Tools and Techniques: Schedule network analysis Critical path method Schedule compression: Crashing, Fast tracking. What-if scenario analysis Resource leveling Critical chain method Project management software Applying calendars Adjusting leads and lags Schedule model

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2.3.5 Schedule Development

3. Outputs: Project schedule Schedule model data Schedule baseline Resource requirement (updates) Activity attributes (updates) Project calendar (updates) Requested changes Project management (updates) - Schedule management plan (updates)

2.3.6 Schedule Control

Controlling changes to the project schedule. 1. Inputs: Schedule Management Plan Schedule Baseline Performance Reports Approved Chance Requests

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2.3.6 Schedule Control

2. Tools and Techniques: Progress reporting Schedule Change Control System Performance Measurement Project management Software Variance Analysis Schedule Comparison Bar Chart

2.3.6 Schedule Control

3. Outputs: Schedule Model Data (updates) Schedule Baseline (updates) Performance Measurements Requested Changes Recommended Corrective Actions Organizational Process Assets (updates) Activity List (updates) Activity attributes (updates)

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2.4 Project Cost Management

Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling cost so that the project can be completed within the approved budget. Cost Estimating Cost Budgeting Cost Control

2.4.1 Cost Estimating

Developing an approximation of the costs of resources needed to complete the project activities. 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Work breakdown structure WBS dictionary Project management plan: - Schedule management plan - Staffing management plan - Risk register

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2.4.1 Cost Estimating

2. Tools and Techniques: Analogous estimating Determine resource cost rates Bottom-up estimating Parametric estimating Project management software Vendor bid analysis Reserve analysis Cost of quality

2.4.1 Cost Estimating

3. Outputs: Activity cost estimates Activity cost estimate supporting detail Requested changes Cost management plan (updates)

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2.4.2 Cost Budgeting

Aggregating the estimated costs of individual activities or work packages to establish a cost baseline. 1. Inputs: Project scope statement Work breakdown structure WBS dictionary Activity cost estimates Activity cost estimate supporting detail Project Schedule Resource calendars Contract Cost management plan

2.4.2 Cost Budgeting

2. Tools and Techniques: Cost aggregation Reserve analysis Parametric estimating Funding limit reconciliation

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2.4.2 Cost Budgeting

3. Outputs: Cost baseline Project funding requirement Cost management plan (updates) Requested changes

2.4.3 Cost control

1.

Inputs: Cost baseline Project funding requirements Performance reports Work performance information Approved change requests Project management plan

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2.4.3 Cost control

Influencing the factors that create cost variances and controlling changes to the project budget. 2. Tools and Techniques Cost control system Performance measurement analysis Forecasting Project performance reviews Project management software Variance management

2.4.3 Cost control

3. Outputs: Cost estimates (updates) Cost baseline (updates) Performance measurements Forecasted completion Requested changes Recommended corrective actions Organizational process assets (updates) Project management plan (updates)

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2.5.project Quality Management

Project Quality Management processes include all the activities of performing organization that determine quality policies, objectives, and responsibilities, so that the project will satisfy the needs for what it was undertaken. The project Quality Management processes include the following: Quality Planning Perform Quality Assurance Perform Quality Control

2.5.1 Quality Planning

Quality Planning: identifying which quality standards are relevant to the project and determining how to satisfy them. 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Project management plan

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2.5.1 Quality Planning

2.

Tools and techniques: Cost-benefit analysis Benchmarking Design of experiment Cost of quality (COQ) Additional quality planning tools

2.5.1 Quality Planning

3.

Outputs: Quality management plan Quality metrics Quality checklists Process improvement plan Quality baseline Project management plan (updates)

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2.5.2 Perform Quality Assurance

Quality Assurance is the application of planned, systematic, quality activities to ensure that the project will employ all processes needed to meet requirements. 1. Inputs: Quality management plan Quality metrics Process improvement plan Work performance information Approved change requests Quality control measurements Implemented change requests Implemented corrective actions Implemented defect repair Implemented preventive actions

2.5.2 Perform Quality Assurance

2.

Tools and Techniques: Quality planning tools and techniques Quality audits Process analysis Quality control tools and techniques

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2.5.2 Perform Quality Assurance

3.

Outputs: Requested changes Recommended corrective actions Organizational process assets (updates) Project management plan (updates)

2.5.3 Perform Quality Control

Performing quality control involves monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory results. 1. Inputs:

Quality management plan Quality metrics Quality checklist Organizational process assets Work performance information Approved change requests Deliverables

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2.5.3 Perform Quality Control

2.

Tools and Techniques: Cause and effect diagram Control charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical sampling Inspection Defect repair review

2.5.3 Perform Quality Control

3.

Outputs: Quality control measurements Validated defect repair Quality baseline (updates) Recommended corrective actions Recommended preventive actions Requested changes Recommended defect repair Organization process assets (updates) Validated deliverables Project Management Plan (updates)

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2.6 Project Human Resource Management

Project Human Resource Management (PHRM) includes the processes that organize and manage the project team effectively.

PHRM processes include the following: Human Resource Planning: Identifying and documenting
project roles, responsibilities, and reporting relationships, as well as creating the staffing management plan.

Acquire Project Team: Obtaining the human resources needed to complete the project Develop project Team: Improving the competencies and
interaction of team members to enhance project performance

Manage Project Team: Tracking team member performance,

providing feedback, resolving issues, and coordinating changes to enhance project performance.

2.6.1 Human resource planning

Inputs: Enterprise environmental factors Organizational process assets Project management plan - Activity resource requirement 2. Tools and Techniques: Organization charts and position descriptions Networking Organizational theory 3. Outputs: Roles and responsibility Project Organization charts Staffing management plan
1.

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2.6.2. Acquire Project Team

Inputs: Enterprise environmental factors Organizational process assets Roles and responsibilities Project organization charts Staffing management plan 2. Tools and Techniques: Pre-assignment Negotiation Acquisition Virtual teams 3. Outputs: Project staff assignment Resource availability Staffing management plan
1.

2.6.3 Develop Project Team

Inputs: Project staff assignment Staffing management plan Resource availability 2. Tools and Techniques: General management skills Training Team-building activities Ground rules Co-location Recognition and rewards 3. Outputs: Team performance assessment
1.

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2.6.4 Manage Project Team

1.

Inputs: Organizational process assets Project staff assignment Roles and Responsibilities Project organization charts Staffing management plan Team performance assessment Work performance information Performance reports

2.6.4 Manage Project Team

2 Tools and Techniques: Observation and conservation Project performance appraisals Conflict management Issue log 3. Outputs: Requested changes Recommended corrective actions Recommended preventive actions Organizational process assets (updates) Project management plan (updates)

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2.7. Project Communications Management

Project Communication Management (PCM) is the Knowledge area that employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. PCM processes include the following: Communication Planning Information Distribution Performance Reporting Manage Stakeholders

2.7.1 Communication Planning

1.

2.

3.

Inputs: Enterprise environmental factors Organizational process assets Project scope statement Project management plan Tools and Techniques: Communication requirement analysis Communication technology Outputs: Communication management plan

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2.7.2 Information Distribution

1. 2.

3.

Inputs: Communication management plan Tools and Techniques: Communication skills Information gathering and retrieval systems Information distribution systems Lessons learned process Outputs: Organization al process assets (updates) Requested changes

2.7.3 Performance Reporting

1.

Inputs: Work performance information Performance measurements Forecasted completion Quality control measurement Project management plan -Performance measurement baseline Approved change requests Deliverables

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2.7.3 Performance Reporting

2. Tools and Techniques: Information presentation tools Performance information gathering and compilation Status review meetings Time reporting systems Cost reporting systems

2.7.3 Performance Reporting

3. Outputs: Performance reports Forecasts Requested changes Recommended corrective actions Organizational process assets

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2.7.4. Manage Stakeholders

Stakeholder management refers to managing communication to satisfy the needs of, and resolve issues with, project stakeholders. The project manager is usually responsible for stakeholder management. 1. Inputs: Communications management plan Organizational process assets

2.7.4. Manage Stakeholders

2. Tools and Techniques: Communication methods Issue logs 3. Outputs: Resolved issues Approved change requests Approved corrective actions Organizational process assets (updates) Project management plan (updates)

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2.8. Project Risk Management

Project Risk Management (PRM) includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project. The PRM processes include the following: Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control

2.8.1. Risk Management Planning

Risk Management Planning: Deciding how to approach, plan, and execute the risk management activities for a project. 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Project management plan 2. Tools and Techniques: Planning meetings and analysis 3. Outputs: Risk management plan: methodology, roles and responsibilities, budgeting, timing, risk categories, definition of risk probability and impacts, probability and impact matrix, revised stakeholder tolerances, reporting formats, tracking.

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2.8.2. Risk Identification (RI)

Risk Identification: Determining which risks might affect the project and documenting their characteristics 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Risk management plan Project management plan 2. Tools and Techniques: Documentation reviews Information gathering techniques Checklist analysis Assumptions techniques Diagramming techniques 3. Outputs: Risk register

2.8.3. Qualitative Risk Analysis

Qualitative Risk Analysis: Prioritizing for subsequent further analysis or action by assessing and combining their probability of occurrence and impact. 1 Inputs: Organizational process assets Project scope statement Risk management plan Risk register 2. Tools and Techniques: Risk probability and impact assessment Risk categorization Risk urgency assessment 3. Outputs: Risk register (updates)

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2.8.4. Quantitative Risk Analysis

Quantitative Risk Analysis: Numerically analyzing the effect on overall project objectives of identified risks. 1. Inputs: Organizational process assets Project scope statement Risk management plan Risk register Project management plan (Schedule, Cost) 2. Tools and Techniques: Data gathering and representation techniques Quantitative risk analysis and modeling techniques 3.Outputs: Risk Register (updates)

2.8.5 Risk Response Planning

Risk Response Planning: Developing options and actions to enhance opportunities, and reduce threats to project objectives 1. Inputs: Risk management plan Risk register 2 Tools and Techniques: Strategies for negative risk or threats Strategies for positive risk and opportunities 3. Outputs: Risk register (updates) Project management plan (updates) Risk-related contractual agreements

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2.8.6 Risk Monitoring and Control

Tracking identified risks, monitoring residual risk, identifying new risks, executing risk response plans and evaluating their effectiveness throughout the project life cycle 1. Inputs: Risk management plan Risk register Approved change requests Work performance information Performance reports

2.8.6 Risk Monitoring and Control

2. Tools and Techniques: Risk reassessment Risk audits Variance and trend analysis Technical performance measurement Reserve analysis Status meetings

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2.8.6 Risk Monitoring and Control

3. Outputs: Risk register (updates) Requested changes Recommended corrective actions Recommended preventive actions Organizational process assets (updates) Project management plan (updates)

2.9 Project Procurement Management

Project Procurement Management (PPM) includes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work. The PPM processes include the following: Plan Purchases and Acquisition Plan Contracting Request Seller Responses Select Sellers Contract Administration Contract Closure

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2.9.1 Plan Purchases and Acquisitions

Plan Purchases and Acquisitions: Determining what to purchase or acquire and determining when and how. 1. Inputs: Enterprise environmental factors Organizational process assets Project scope statement Work breakdown structure WBS dictionary Project management plan: risk register, risk-related contractual agreement, resource requirement, project schedule, activity cost estimates, cost baseline.

2.9.1 Plan Purchases and Acquisitions

2. Tools and Techniques: Make-or-buy analysis Expert judgment Contract types: - fixed-price or lump-sum contracts - Cost-reimbursable contracts (CPF or CPPC; CPFF; CPIF) - Time and Material (T&M) Contracts 3. Outputs: Procurement management plan Contract statement of work Make-or-buy decisions Requested changes

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2.9.2 Plan Contracting

The Plan Contracting process prepares the documents needed to support the Request Seller Responses process and select Sellers process 1. Inputs: Procurement management plan Contract statement of work Make-or-buy decisions Project management plan: risk register, risk-related contractual agreement, resource requirement, project schedule, activity cost estimates, cost baseline 2. Tools and Techniques: Standard forms Expert judgment

2.9.2 Plan Contracting

3. Outputs: Procurement documents Evaluation criteria: - Understanding of needs, - Overall or life-cycle cost, Financial capability, - Technical capability, Technical approach, - Management approach, - Production capability and interest, - Business size and type, - Intellectual property rights and proprietary rights - References from prior customers Contract statement of work (updates)

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2.9.3 Request Seller Responses

The Request Seller Responses process obtains responses, such as bids and proposals, from prospective sellers on how project requirements can be met. 1. Inputs: Organizational process assets Procurement management plan Procurement documents 2. Tools and Techniques: Bidder conferences Advertising Develop qualified sellers list 3. Outputs: Qualified sellers list Procurement document package Proposals

2.9.4 Select Sellers

The Select Sellers process receives bids or proposals and apply evaluation criteria, as applicable, to select one or more sellers who are both qualified and acceptable. 1. Inputs: Organizational process assets Procurement management plan Evaluation criteria Procurement document package Proposals Qualified sellers list Project management plan: - Risk register - Risk-related contractual agreements

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2.9.4 Select Sellers

2. Tools and Techniques Weighting system Independent estimates Screening system Contract negotiation Seller rating system Expert judgment Proposal evaluation techniques.

2.9.4 Select Sellers

3. Outputs: Selected sellers Contract Contract management plan Resource availability Procurement management plan (updates) Requested changes.

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2.9.5 Contract Administration

The Contract Administration processes ensures that the sellers performance meets contractual requirements and that the buyer performs according to the terms of the contract 1. Inputs: Contract Contract management plan Selected sellers Performance reports Approved change requests Work performance information

2.9.5 Contract Administration

Tools and Techniques: Contract change control system Buyer-conducted performance review Inspections and audits Performance reporting Payment system Claims administration Records management system Information technology

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2.9.5 Contract Administration

3. Outputs: Contract documentation Requested changes Recommended corrective actions Organizational process assets (updates) Project management plan (updates): - Procurement management plan - Contract management plan

2.9.6. Contract Closure

Contract Closure: Completing and settling each contract, including the resolution of any items, and closing each applicable to the project or project phase. 1. Inputs: Procurement management plan Contract management plan Contract documentation Contract closure procedure 2. Tools and Techniques: Procurement audits Records management system

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2.9.6. Contract Closure

3. Outputs: Closed contract Organizational process assets (updates): - Contract file - Deliverable acceptance - Lessons learned documentation

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