PMBOK Chapter 10

1

• PMBOK Chapter 10
• Project Communications Management

2
Mapping the Processes
Process Group
PM Knowledge Area
3
Mapping the Processes (cont.)
Process Group
PM Knowledge Area
4
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
5
Project Communications Management Process Flow
PMP
Organizational Process Assets
Communications Planning
Develop Project Management
Lessons learned Knowledge base Historical
information
Approved change requests Approved corrective
actions
Communications Management Plan
Enterprise Environmental Factors
Communications technology
Information Distribution
Project Scope statement
Scope Definition
Requested changes
Requested changes Recommended corrective actions
Work performance information Deliverables
Performance Reporting
Direct and Manage Project Execution
Approved change requests
Performance reports Forecasts
Communications Management Plan (updates) PMP
(updates)
Organizational process assets Resolved issues
Manage Stakeholders
Integrated Change Control
Close Project
6
Project Communications Management Process Flow
PMP
Organizational Process Assets
Communications Planning
Develop Project Management
Lessons learned Knowledge base Historical
information
Approved change requests Approved corrective
actions
Communications Management Plan
Enterprise Environmental Factors
Communications technology
Information Distribution
Project Scope statement
Scope Definition
Requested changes
Requested changes Recommended corrective actions
Work performance information Deliverables
Performance Reporting
Direct and Manage Project Execution
Approved change requests
Performance reports Forecasts
Communications Management Plan (updates) PMP
(updates)
Organizational process assets Resolved issues
Manage Stakeholders
Integrated Change Control
Close Project
7
10.1 Communications Planning
Tools Techniques
Outputs
Inputs

• Communications Mgmt Plan

• Communications
• requirements analysis
• Communications
• technology

• Enterprise
• environmental factors
• Organizational
• process assets
• Project scope statement
• PMP

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
8
Communications Planning Tools and Techniques

• Communications Requirements Analysis
• Results in the sum of the information needs of
  the project stakeholders
• PM should consider number of potential
  communication channels or paths
• Total number of communication channels is
• n(n-1)/2 where n of stakeholders
• e.g. 10 stakeholders 45 channels

9
Communications Planning Tools Techniques

• Communications Technology
• Methodologies used to transfer information among
  project stakeholders
• Communication technology factors that may affect
  projects
• Urgency of the need for information
• Availability of Technology
• Expected project staffing
• Length of project
• The project environment

10
Communications Planning Outputs

• Communications management plan provides
• Stakeholder communication requirements
• Information to be communicated
• Person responsible for communicating the
  information
• Person or persons who will receive the
  information
• Methods or technology used to convey the
  information
• Frequency of the communication
• Escalation process-identifying time frames and
  the management chain for escalation of issues
• Method for updating and refining communications
  management plan

11
Executing Process Group
INITIATING PROCESS GROUP
MONITORING CONTROLLING PROCESS GROUP
Perform Quality Assurance
Acquire Project Team
Direct and Manage Project Execution
Develop Project Team
Information Distribution
PLANNING PROCESS GROUP
Request Seller Responses
CLOSING PROCESS GROUP
Select Sellers
12
Project Communications Management Process Flow
PMP
Organizational Process Assets
Communications Planning
Develop Project Management
Lessons learned Knowledge base Historical
information
Approved change requests Approved corrective
actions
Communications Management Plan
Enterprise Environmental Factors
Communications technology
Information Distribution
Project Scope statement
Scope Definition
Requested changes
Requested changes Recommended corrective actions
Work performance information Deliverables
Performance Reporting
Direct and Manage Project Execution
Approved change requests
Performance reports Forecasts
Communications Management Plan (updates) PMP
(updates)
Organizational process assets Resolved issues
Manage Stakeholders
Integrated Change Control
Close Project
13
10.2 Information Distribution
Inputs
Tools Techniques
Outputs

• Organizational process
• Requested changes

• Communications
• management plan

• Communications skills
• Information gathering and
• retrieval systems
• Information distribution
• methods
• Lessons learned process

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
14
Selected Information Distribution Tools and
Techniques

• Information Distribution Methods
• Formal written
• Complex problems, Project Plans, Charter
• Informal written
• Memos, E-mail, Notes
• Formal verbal
• Presentations, Speeches
• Informal verbal
• Meetings, Conversations

15
Monitoring Controlling Process Group
Scope Verification
INITIATING PROCESS GROUP
Scope Control
Schedule Control
Monitor And Control Project Work
Cost Control
Perform Quality Control
PLANNING PROCESS GROUP
Manage Project Team
Performance Reporting
Integrated Change Control
Manage Stakeholders
Risk Monitoring Control
CLOSING PROCESS GROUP
Executing PROCESS GROUP
Contract Administration
16
Project Communications Management Process Flow
PMP
Organizational Process Assets
Communications Planning
Develop Project Management
Lessons learned Knowledge base Historical
information
Approved change requests Approved corrective
actions
Communications Management Plan
Enterprise Environmental Factors
Communications technology
Information Distribution
Project Scope statement
Scope Definition
Requested changes
Requested changes Recommended corrective actions
Work performance information Deliverables
Performance Reporting
Direct and Manage Project Execution
Approved change requests
Performance reports Forecasts
Communications Management Plan (updates) PMP
(updates)
Organizational process assets Resolved issues
Manage Stakeholders
Integrated Change Control
Close Project
17
10.3 Performance Reporting
Inputs
Tools Techniques
Outputs

• Performance reports
• Forecasts
• Requested changes
• Recommended
• corrective actions
• Organizational process
• assets (updates)

• Work Performance
• information
• Performance
• measurements
• Forecasted completions
• Quality control
• measurements
• PMP
• Approved change
• requests
• Deliverables

• Information presentation
• tools
• Performance information
• gathering and compilation
• Status review meetings
• Time reporting systems
• Cost reporting systems

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
18
Selected Performance Reporting Tools and
Techniques

• Information Presentation Tools
• Software packages that include table reporting,
  spreadsheet analysis, presentations, or graphic
  capabilities
• Performance Information Gathering and Compilation
• Information gathered from a variety of media
  including manual file systems, electronic
  databases, project management software, and
  engineering drawings
• Status Review Meetings
• Regularly scheduled events to exchange
  information about the project

19
Selected Performance Reporting Outputs

• Performance reports
• Organize and summarize the information gathered,
  and present the results of any analysis as
  compared to the performance measurement baseline
• Forecasts
• Forecasts are updated and reissued based on work
  performance information provided as the project
  is executed

20
Monitoring Controlling Process Group
Scope Verification
INITIATING PROCESS GROUP
Scope Control
Schedule Control
Monitor And Control Project Work
Cost Control
Perform Quality Control
PLANNING PROCESS GROUP
Manage Project Team
Performance Reporting
Integrated Change Control
Manage Stakeholders
Risk Monitoring Control
CLOSING PROCESS GROUP
Executing PROCESS GROUP
Contract Administration
21
Project Communications Management Process Flow
PMP
Organizational Process Assets
Communications Planning
Develop Project Management
Lessons learned Knowledge base Historical
information
Approved change requests Approved corrective
actions
Communications Management Plan
Enterprise Environmental Factors
Communications technology
Information Distribution
Project Scope statement
Scope Definition
Requested changes
Requested changes Recommended corrective actions
Work performance information Deliverables
Performance Reporting
Direct and Manage Project Execution
Approved change requests
Performance reports Forecasts
Communications Management Plan (updates) PMP
(updates)
Organizational process assets Resolved issues
Manage Stakeholders
Integrated Change Control
Close Project
22
10.4 Manage Stakeholders
Tools Techniques
Outputs

• Resolved issues
• Approved change requests
• Approved corrective
• actions
• Organizational process
• assets (updates)
• PMP (updates)

• Communications methods
• Issue logs

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
23
Manage Stakeholders Tools Techniques

• Issue logs
• Action-item log is a tool to document and monitor
  the resolution of issues

24

• PMBOK Chapter 11 Project Risk Management

25
Mapping the Processes
Process Group
PM Knowledge Area
26
Mapping the Processes (cont.)
Process Group
PM Knowledge Area
27
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
28
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
29
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
30
11.1 Risk Management Planning
Risk Uncertain event or condition that , if it
occurs, has a positive or negative effect on a
project objective.
31
11.1 Risk Management Planning
Inputs
Tools Techniques
Outputs

• Risk Management Plan

• Planning meetings
• and analysis

• Enterprise environmental factors
• Organization process assets
• Project scope statement
• PMP

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
32
Risk Management Planning Outputs

• Risk Management Plan includes
• Methodology defines approach, tools and data
  source
• Roles Responsibilities defines lead, support
  and team
• Budgeting assigns resources and estimates cost
• Timing defines when and how often
• Risk categories provides a structure to
  systematically identify risk consistently
• Definitions of risk probability and impact
• Probability and impact matrix risks are
  prioritized on their implications
• Revised stakeholders tolerances
• Reporting formats
• Tracking How all facets of risk activities will
  be recorded

33
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
34
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
35
11.2 Risk Identification
Tools Techniques
Inputs
Outputs

• Risk register

• Documentation Reviews
• Information-gathering techniques
• Checklist analysis
• Assumptions analysis
• Diagramming techniques

• Enterprise environmental factors
• Organizational process assets
• Project scope statement
• Risk management plan
• PMP

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
36
Selected Risk Identification Tools and Techniques

• Information Gathering Techniques
• Brainstorming most frequently used
• Delphi Technique solicit ideas from experts,
  anonymously, using a questionnaire
• Interviewing Subject Matter Experts or other
  with experience with the same type of project or
  environment
• Root cause identification inquiry into
  essential causes of a projects risks
• Strengths, Weaknesses, Opportunities and Threats
  (SWOT) Analysis

37
Selected Risk Identification Tools and Techniques

• Checklist analysis
• Based on historical information from similar
  previous projects
• Quick and simple
• Assumptions analysis
• Explore validity of assumptions
• Diagramming techniques
• Cause and effect diagrams
• System or process flow charts
• Influence diagrams graphical representation of
  a problem showing
• Causal influences
• Time ordering of events, etc.

38
Selected Risk Identification Outputs

• Risk register
• List of identified risks
• List of potential responses
• Root causes of risks
• Updated risk categories

39
Risk Identification Possible Sources

• Internal Risks
• Lots of stakeholders
• Varied stakeholders
• Stakeholders approach
• Complex project
• Scope, Schedule and Cost
• Staffing, materials, equipment
• Innovative solutions
• Rushed results

• External risks
• Political
• Cultural
• Social
• Environmental
• Economic

40
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
41
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
42
11.3 Qualitative Risk Analysis
Tools Techniques
Inputs
Outputs

• Risk probability and impact assessment
• Probability and impact matrix
• Risk data quality assessment
• Risk categorization
• Risk urgency assessment

• Organizational process assets
• Project scope statement
• Risk management plan
• Risk register

• Risk register (updates)

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
43
Selected Qualitative Risk Analysis Tools and
Techniques

• Risk probability and impact - the likelihood that
  a risk will occur and the effect on project
  objectives if the risk occurs
• Probability/impact rating matrix

44
Selected Qualitative Risk Analysis Tools
Techniques

• Example Risk Categories
• Technical, quality or performance risks
• Reliance on unproven or complex technology
• Project Management risk
• Poor allocation of time and resources
• Organizational
• Cost, time, and scope objectives that are
  internally inconsistent
• External Risk (next slide)

45
Selected Qualitative Risk Analysis Outputs

• Risk register updates
• Relative ranking or priority of project risks
• Risks grouped by categories
• List of risks requiring response in the near-term
• List of risks for additional analysis and
  response
• Watch lists of low priority risks
• Trends in qualitative risk analysis

46
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
47
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
48
11.4 Quantitative Risk Analysis
Inputs
Outputs
Tools Techniques

• Organizational process assets
• Project scope statement
• Risk management plan
• Risk register
• PMP

• Risk register (updates)

• Data gathering and
• representation techniques
• Quantitative risk analysis
• and modeling techniques

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
49
Selected Quantitative Risk Analysis Tools and
Techniques

• Data gathering and representation techniques
• Interviewing - Used to quantify the probability
  and consequences of risks on project objectives
• Probability distributions represent uncertainty
  in values, such as durations of schedule
  activities and costs of project components
• Expert judgment SME validate data and techniques

50
Selected Quantitative Risk Analysis Tools and
Techniques

• Quantitative risk analysis and modeling
  techniques
• Sensitivity Analysis determines which risks
  have the most potential impact on the project
• Expected monetary value analysis a statistical
  concept that calculates he average outcome when
  the future includes scenarios that may or may not
  happen
• Decision tree analysis

51
Selected Quantitative Risk Analysis Tools and
Techniques

• Decision Tree Helps determine the implications
  of choosing different alternatives.
• Identifies the decisions with the greatest
  expected value.

SCHEDULE
Over P 0.20
5
According to historical data, each project has a
25 chance of actually completing over budget.
For project actually ended up over budget, 80
will be within time, while project within budget,
70 will be within time.
Over Budget .25
20
Within P 0.80
Within Budget .75
Over P 0.30
22.5
Within P 0.70
52.5
52
Selected Quantitative Risk Analysis Outputs

• Risk register updates
• Probabilistic analysis of the project
• Probability of achieving cost and time objectives
• Prioritized list of quantified risks
• Trends in quantitative risks analysis results

53
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
54
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
55
11.5 Risk Response Planning
Inputs
Outputs
Tools Techniques

• Risk management plan
• Risk register

• Risk register (updates)
• PMP (updates)
• Risk-related contractual agreements

• Strategies for negative
• risks or threats
• Strategies for positive
• risks or opportunities
• Strategy for both
• threats and opportunities
• Contingent response
• strategy

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
56
Risk Response Planning Tools and Techniques

• Strategies for Negative Risks or Threats
• Avoidance Change PMP to eliminate the threat by
  eliminating the cause
• Transference - Make another party responsible for
  the risk through allocation, purchasing of
  insurance, or outsourcing the work
• Mitigation Reduction in the probability or
  impact the risk

57
Risk Response Planning Tools and Techniques

• Strategies for Positive Risks or Threats
• Exploit Ensures the opportunity is realized
• Share allocating ownership to a third party who
  is best able to capture the opportunity
• Enhance Modifies the size of an opportunity by
  increasing the probability or positive impacts

58
Risk Response Planning Tools and Techniques

• Strategies for both threats and opportunities
• Acceptance - Do nothing and say if it happens,
  it happens
• Contingent response strategy
• Designed for use only if certain events occur

59
Selected Risk Response Planning Output

• Risk register updates
• Identified risks
• Risk owners and assigned responsibilities
• Qualitative and quantitative analysis information
• Agreed response strategies (avoidance,
  transference, mitigation, or acceptance)
• Specific actions to implement the chosen response
  strategy
• Budget and schedule activities required to
  implement the chosen responses
• Contingency reserves of time and cost
• Contingency plans and fallback plans
• Residual risks that are expected to remain after
  planned responses have been taken
• Secondary risks that arise as a direct outcome of
  implementing a risk response

60
Monitoring Controlling Process Group
Scope Verification
INITIATING PROCESS GROUP
Scope Control
Schedule Control
Monitor And Control Project Work
Cost Control
Perform Quality Control
PLANNING PROCESS GROUP
Manage Project Team
Performance Reporting
Integrated Change Control
Manage Stakeholders
Risk Monitoring Control
CLOSING PROCESS GROUP
Executing PROCESS GROUP
Contract Administration
61
Project Risk Management Process Flow
Organizational Process Assets
PMP
Risk Management Planning
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Approved change requests Approved corrective
actions Approved preventive actions
Risk Management Plan
Enterprise Environmental Factors
Commercial databases
Risk Identification
Approved change requests
Project Scope statement
Risk register
Scope Definition
Qualitative Risk Analysis
Cost management plan Schedule management plan
Risk register (updates)
Develop Project Management Plan
Quantitative Risk Analysis
Performance reporting
Performance Reporting
Risk register (updates)
PMP (updates)
Risk Response Planning
Direct Manage Project Execution
Work performance information
Risk register (updates)
Recommended preventive actions Recommenced
corrective actions Requested changes Risk
register (updates) PMP (updates)
Risk Monitoring And Control
Integrated Change Control
Close Project
Risk register Organizational process assets
(updates)
62
11.6 Risk Monitoring and Control
Outputs
Techniques

• Risk register (updates)
• Requested changes
• Recommended corrective actions
• Recommended preventive actions
• Organizational process assets (updates)
• PMP (updates)

• Risk reassessment
• Risk audits
• Variance and trend analysis
• Technical performance measurement
• Reserve analysis
• Status meetings

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
63

• PMBOK Chapter 12
• Project Procurement Management

64
Mapping the Processes
Process Group
PM Knowledge Area
65
Mapping the Processes (cont.)
Process Group
PM Knowledge Area
66
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
67
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
68
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
69
12.1 Plan Purchases and Acquisitions
Tools Techniques
Outputs
Inputs

• Enterprise environmental factors
• Organizational process assets
• Project scope statement
• WBS
• WBS dictionary
• PMP

• Procurement management plan
• Contract statement of work
• Make-or-buy decisions
• Requested changes

• Make-or-buy analysis
• Expert Judgment
• Contract types

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
70
Plan Purchases and Acquisitions

• What forms a Contract?
• An offer
• Acceptance
• Consideration something of value
• Legal Capacity separate legal parties
• Legal purpose sale of legal goods
• Contract also refers to legal and business terms
  and conditions as well as scope of work,
  marketing literature, drawings, charts,etc.

71
12.1Selected Plan Purchases and Acquisitions
Tools and Techniques
Make or Buy Analysis

• Make
• Cost
• Internal expertise
• Integration of Operations
• Existing Capacity
• Direct Control
• Design Secrecy

• Buy
• Cost
• Supplier Skill Set
• Small Volume Requirement
• Limited Capacity
• Augment Labor Force
• Maintenance of Multiple Sources

72
Selected Plan Purchases and Acquisitions Tools
and Techniques
Contract type selection
73
Selected Plan Purchases and Acquisitions Tools
and Techniques

• CPFF - Cost Plus Fixed Fee
• CPPC - Cost Plus Percentage of Costs (illegal in
  US government)
• CPIF - Cost Plus Incentive Fee
• T M - Unit price
• FPIF - Fixed Price Incentive Fee
• FFP - Firm Fixed Price

Seller Risk
High
Low
Buyer Risk
Low
High
CPFF CPIF FPIF
FFP
74
Plan Purchases and Acquisitions Outputs

• Procurement management plan includes
• Types of contract(s) to be used
• If independent estimates will be needed
• What actions can project management team take in
  procurement actions, and are standard procurement
  documents going to be used
• Managing multiple providers
• Coordinating procurement with other project
  functions
• Handling lead times
• Contract statement of work
• defines What, NOT How or Who

75
Planning Process Group
MONITORING CONTROLLING PROCESS GROUP
Scope Definition
Scope Planning
Develop Project Management Plan
Activity Definition
INITIATING PROCESS GROUP
Activity Resource Estimating
Create WBS
Activity Duration Estimating
Cost Estimating
Cost Budgeting
Risk Management Planning
Activity Sequencing
Human Resource Planning
Risk Identification
Schedule Development
Quality Planning
EXECUTING PROCESS GROUP
Qualitative Risk Analysis
Communications Planning
Quantitative Risk Analysis
Plan Purchases and Acquisitions
Plan Contracting
CLOSING PROCESS GROUP
Risk Response Planning
76
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
77
12.2 Plan Contracting
Tools Techniques
Outputs

• Procurement docs
• Evaluation criteria
• SOW (updates)

• Standard forms
• Expert judgment

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
78
Selected Plan Contracting Outputs

• Procurement Documents
• Request for Quotation (RFQ) price quote per
  item, hour, etc.
• Request for Proposal (RFP) How the work will be
  accomplished, who will do it, etc.
• Request for Information (RFI)
• Request for Clarification (RFC)
• Invitation for Bid (IFB) One price to do all
  work

79
Selected Plan Contracting Outputs

• Evaluation Criteria
• Using a rating or scoring system on proposals
• Items rated or scored are
• Understanding of need
• Lifecycle cost
• Technical capability
• Management approach
• Technical approach
• Financial capacity
• Production capacity and interest
• Business size and type
• References
• IP rights

80
Executing Process Group
INITIATING PROCESS GROUP
MONITORING CONTROLLING PROCESS GROUP
Perform Quality Assurance
Acquire Project Team
Direct and Manage Project Execution
Develop Project Team
Information Distribution
PLANNING PROCESS GROUP
Request Seller Responses
CLOSING PROCESS GROUP
Select Sellers
81
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
82
12.3 Request Seller Responses
Tools Techniques
Outputs

• Qualified sellers list
• Procurement
• document package
• Proposals

• Bidder Conferences
• Advertising
• Develop qualified
• sellers list

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
83
Selected Request Seller Responses Tool and
Technique

• Bidder Conference
• Meetings with prospective sellers prior to
  preparation of a bid or proposal
• Watch for
• Collusion
• Sellers asking questions in private
• Make sure ALL questions and answers are in
  writing and issued to all potential sellers

84
Executing Process Group
INITIATING PROCESS GROUP
MONITORING CONTROLLING PROCESS GROUP
Perform Quality Assurance
Acquire Project Team
Direct and Manage Project Execution
Develop Project Team
Information Distribution
PLANNING PROCESS GROUP
Request Seller Responses
CLOSING PROCESS GROUP
Select Sellers
85
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
86
12.4 Select Sellers
Inputs
Outputs
Tools Techniques

• Selected sellers
• Contract
• Contract management
• plan
• Resource availability
• Procurement management
• plan (updates)
• Requested changes

• Organizational
• process assets
• Procurement
• management plan
• Evaluation criteria
• Procurement document
• package
• Proposals
• Qualified sellers list
• PMP

• Weighting system
• Independent estimates
• Screening system
• Contract negotiation
• Seller rating system
• Expert judgment
• Proposal evaluation
• techniques

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
87
Select Sellers Tools and Techniques

• Weighting system assigning a numerical weight
  to each of the evaluation criteria proposal
  criteria
• Independent estimates Buyers estimate
• Screening system Eliminating sellers setting
  minimum requirements
• Seller rating system Use sellers past
  performance, quality ratings, delivery
  performance, and contractual compliance
• Proposal evaluation techniques technique used
  to rate and score proposal

88
Select Sellers Tools and Techniques

• Contract negotiation
• Purposes
• Obtain a fair and reasonable price
• Develop a good relationship with seller
• Main items to Negotiate
• Responsibilities
• Authority
• Applicable Law
• Technical and business management approaches
• Contract financing
• Price

89
Monitoring Controlling Process Group
Scope Verification
INITIATING PROCESS GROUP
Scope Control
Schedule Control
Monitor And Control Project Work
Cost Control
Perform Quality Control
PLANNING PROCESS GROUP
Manage Project Team
Performance Reporting
Integrated Change Control
Manage Stakeholders
Risk Monitoring Control
CLOSING PROCESS GROUP
Executing PROCESS GROUP
Contract Administration
90
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
91
12.5 Contract Administration
Inputs
Outputs
Tools Techniques

• Contract documentation
• Requested changes
• Recommended
• corrective actions
• Organizational process
• asset (updates)
• PMP (updates)

• Contract
• Contract
• management plan
• Selected sellers
• Performance reports
• Approved change
• requests
• Work performance
• information

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

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
92
Contract Administration Notes

• Conflict
• When there is a conflict or dispute on a
  contract, the ONLY one with authority to change
  the contract is the Contracting Officer or
  Contract Administrator
• Warranty
• Implied Warranty The mere act of sale implies
  (1) general fitness for use and (2) fitness for
  special uses that the user intends if the seller
  knows of these special conditions
• Express Warranty Beyond the mere act of the
  sale, the seller makes specific representation
  (oral, ads, literature, specs, markings, time,
  etc.)

93
Closing Process Group
INITIATING PROCESS GROUP
Close Project
PLANNING PROCESS GROUP
Contract Closure
MONITORING CONTROLLING PROCESS GROUP
94
Project Procurement Management Process Flow
Organizational Process Assets
PMP
Plan Purchases Acquisitions
Develop Project Management
Policies, procedures, and guidelines Lessons
learned Knowledge base
Procurement Management Plan Contract statement of
work Make-or-buy decisions
Approved change requests Approved corrective
actions
Enterprise Environmental Factors
Marketplace conditions Purchasing skills
Plan Contracting
Scope Definition
Procurement documents Evaluation
criteria Contract statement of work (updates)
Project scope statement WBS WBS dictionary
Request Seller Response
Activity Resource Estimating
Activity resource estimating Project schedule
Qualified sellers list Procurement document
package Proposals
PMP (updates) Requested changes Recommended
corrective actions
Cost Estimating
Activity cost estimating Cost budgets
Select Sellers
Risk Identification Risk Response Planning
Selected sellers Contract Contract management
plan Resource availability
Risk register Risk-related contractual agreements
Contract Administration
Performance Reporting
Performance reports
Contract documentation Procurement management
plan Contract management plan
Closed contracts
Work performance information
Direct Manage Project Execution
Integrated Change Control
Organizational process assets (updates)
Close Project
Contract Closure
Contracts closure process
95
12.6 Contract Closure
Tools Techniques
Outputs
Inputs

• Closed contracts
• Organizational process
• assets (updates)

• Procurement audits
• Records management
• system

• Procurement
• management plan
• Contract
• management plan
• Contractdocumentation
• Contract closure
• procedure

Note Underlined inputs, tools techniques, and
outputs have further explanation
Project Management Institute, A Guide to the
Project Management Body of Knowledge, Third
Edition (PMBOK Guide) 2004 Edition, Project
Management Institute, Inc., 2004
96
Examples test questions

• All of the following are part of a PMP EXCEPT?
• A. Project Charter
• B. Project Schedule
• C. Stakeholder list
• D. Lessons Learned

Lessons learned are a deliverable of integrated
change control that generally occur after the PMP
is completed.
97
Examples test questions

• You are beginning a new project that has been
  attempted, but unsuccessful, several times in the
  past few years. Previous projects were cancelled
  because of politics (differing views and
  direction by key stake holders of the project.)
  This is an example of
• A. stakeholder analysis
• B. project charter
• C. lessons learned
• D. risk identification