LESSON 3

PLAN THE
PROJECT
• Planning Projects
• Scope
• Schedule
• Budget
• Resources
• Quality
• Risks

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Planning Projects
TOPIC A

2
Topic Coverage

Differentiation of planning in predictive and

adaptive approaches

3
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Planning Starts with a
Project Management Plan
Enables project managers to ....
• Execute
The document that describes how the • Monitor
project will be executed, monitored and • Control
controlled, and closed.
• Close
It includes:
• Subsidiary plans
• Baselines
• Establishes guardrails to maintain controls,
• Additional components so ....
• Teams can tailor their way of working and
act quickly and flexibly!

*See definition tab for list

5
Project
Documents*

Documentation and content created by the team to plan and manage the
project effectively

Some documents are project artifacts, which need to be maintained and

then archived at the end of the project.

They are not components of the project management plan.

*See definition tab for list

6
Adaptability and
Resilience in Planning

Rolling Wave Planning

• A form of progressive elaboration
applied to work packages, planning
packages and release planning
• Used in adaptive or predictive
approaches

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Milestones*

• Markers for big events, reviews, due

dates, payments or decision-making
• Prompts for reporting requirements or
sponsor/customer approval
• Created by project managers,
customers or both
A milestone list identifies all milestones
and indicates which are:
• Mandatory - required by contract, or
• Optional (estimated on historical
information)

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Product Roadmap*

• Envisions and plans the “big picture”

• Displays product strategy and direction
and the value to be delivered
• Leads with the overarching product
vision and uses progressive elaboration
to refine vision
• Uses themes (goals) to provide structure
and associations
• Provides short-term and long-term
visualization

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ECO Coverage

3.2 2.1 Execute project with the urgency

required to deliver business value
• Assess opportunities to deliver value
incrementally (2.1.1)

10
Incremental
Development An incremental development approach can:

 Deliver most valuable features first

 Deliver value sooner.

 Deliver value partially ( or previews) to customers

 Deliver value frequently

 Seek early feedback and make adjustments to the direction,

priorities, and quality of the product.

• Note: Concepts relating to incremental delivery such as MVP and

MBI will be discussed in detail later.

11
MVP or MBI?
Planning for
Work
Incrementally

12
Scope
TOPIC B

13
ECO Coverage

2.8 Plan and manage scope

• Predictive vs Adaptive approach for
scope
• Determine and prioritize requirements
(2.8.1)
• Break down scope (e.g., WBS, backlog)
(2.8.2)

14
Scope Click me!

PROJECT
SCOPE
• Project scope or product

PRODUCT
scope?

SCOPE
• Is it fixed or flexible?

FIXED
FLEXIBLE
Let’s use the Shawpe Lifestyle Centre
project—the independent case study
part of this course—to understand these
terms better.
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15
Requirements
Management
Plan
• Prioritization criteria/process
Plan, Track and
• Configuration management & requirements
Report on
Requirements • Product metrics and accompanying rationale
Activities • Traceability structure

16
Requirements
What Are They
and Why Do We
Need Them?
• A requirement is a condition or capability that is necessary to be present
in a product, service or result, to satisfy a business need.

Guidelines for use:

• Start at a high level before providing details

• Must be unambiguous , measurable and testable, traceable,

complete, consistent and acceptable to key stakeholders

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17
Document Requirements

Requirements traceability matrix

• A grid that links requirements to
the deliverables that satisfy the
requirements.

18
Types of Requirements
Type Describes the...

Features and characteristics of the product, service or result that will meet the business and
stakeholder requirements
Product • Functional – Product features
• Nonfunctional - Supplemental environmental conditions/qualities that make the product
effective

Conditions or criteria needed to validate the successful completion of a project deliverable

Quality
or fulfilment of other project requirements

Business Higher-level organizational needs, reasons for the project

Stakeholder Stakeholder (or stakeholder group) needs

Transition/
Temporary capabilities needed to transition successfully to the desired future state
Readiness

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19
Collect
Requirements • Expert Judgment • Data Analysis
Process • Interpersonal/Team Skills • Document analysis
• Nominal group technique • Alternatives analysis
• Observation • Product analysis (if
deliverable is a product)
• Facilitation
• Decision-Making Techniques
• Data Gathering
• Voting
• Brainstorming
• Multi-criteria decision
• Interviews
analysis
• Focus groups
• Questionnaires and surveys • Data Representation
• Benchmarking • Mind mapping
• Affinity diagram
• Context or use case diagram
• Prototyping — e.g.,
storyboarding

20
 Scope Planning: How to Collect Requirements
Interviews Questionnaires/Surveys Observations Focus Groups Facilitated Workshops

• Identify/define • Sessions organized

• Casual/interactive
features and • Written format by project managers
• Physical technique information-sharing
functions of • Captures information to determine
used learn about a • Moderator-guided
Characteristics deliverables from large groups requirements and
specific job role, • Includes stakeholders
• Can be structured, • Yields quantitative enable stakeholder
task or function and SMEs
unstructured or data agreement on project
• Yields qualitative data
asynchronous outcomes

• Handles sensitive/ • Quick turnaround

• Pre-selected • Team can capture
confidential • Effective with varied
participants for varied requirements
information and geographically • Team can
opinions • Stakeholders can
• Helps identify dispersed understand where
Advantages • Small group for understand the
stakeholder respondents changes might be
focused approach concerns and
requirements, • Yields quantifiable beneficial
and gathering requirements of
goals or data for statistical
specific information others
expectations analysis

• Time consuming • Must prequalify

Considerations • Captures only a
• Answer/ data quality stakeholders • Facilitation is
(potential single point of
drawbacks) depends on question • SMEs and facilitation essential
view
quality are essential

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21
Data
Gathering
Use Benchmarks to generate product requirements
The comparison of actual or planned products, processes,
and practices to those of comparable organizations to
identify best practices, generate ideas for improvement,
and provide a basis for measuring performance.

• Requires best practices to make comparisons

• Evaluates and compares an organization’s or project’s practices
with others
• Identifies best practices in order to meet or exceed them
• Can you remember the other methods for data gathering?

• Why do you think benchmarking is effective in gathering data

for scope planning?

• Why would you choose it instead of the other methods?

22
Represent Data

• Mind Mapping – Consolidate ideas

created through individual brainstorming
sessions into a single map to reflect
commonality and differences in
understanding and to generate new
ideas
• Affinity Diagram – Allows large
numbers of ideas to be classified for
review and analysis

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23
 Books Fiction

Manage LIBRARY
ment Furnitur
e

AGile
LIBRARY Waterfa Softa
ll

Reclining

Books Furniture

Reclining Sofa
Fiction Management

AGile
Waterfall

BACK
24
Context Business Context Diagram Example
Diagrams*
GOVERNMENT PRIVATE SECTOR

REQUEST FOR REQUEST FOR

FUNDING FUNDING FUNDING FUNDING

HARDWARE, SOFTWARE
AND SUPPORT EDUCATIONAL
SERVICES
USER COMMUNITY UNIVERSITY INDUSTRY
REQUEST FOR HARDWARE, REQUEST FOR
SOFTWARE AND SUPPORT EDUCATIONAL SERVICES

REQUEST FOR EDUCATIONAL

EDUCATIONAL SERVICES
SERVICES

EDUCATION
COMMUNITY

25
Prototyping

• Evaluation and experimentation tool

• Enables early feedback for further
development and to develop a detailed
list of project requirements
• Storyboarding is a type of prototyping
that uses visuals or images to illustrate a
process or represent a project outcome.

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26
Storyboarding
Storyboarding* A prototyping method that can use visuals or images to
illustrate a process or represent a project outcome.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
27
Institute Inc., 2017.
 Scope Planning – Requirements Prioritization

Tool or Technique Description Benefits

Used to reach a common understanding with • Compares several points of view
stakeholders on the importance of each requirement. • Used with timeboxing to focus on the most
They indicate: important requirements
MoSCoW Analysis • M - Must have • Common in agile software development, Scrum,
developed by Dai Clegg • S - Should have RAD and DSDM
• C - Could have
• W - Won't have (for now)

Understand and classify all potential customer • Development efforts can then be prioritized by the
requirements or features into four categories of need: things that most influence customer satisfaction
Kano Model • Delighters/exciters and loyalty.
(Product management technique) • Satisfiers
developed by Noriaki Kano • Dissatisfiers
• Indifferent

Paired Comparison Analysis Rate and rank alternatives by comparing one against • Good for small range of subjective requirements
developed by LL Thurston the other

100 Points Method Vote for importance of requirements in a list; • Good for any size group, even large ones
(aka fixed sum or fixed allocation stakeholders distribute 100 points in any way they • Gives priority to stakeholder decision- making
method) wish (Like “Monopoly money” method) because they must exercise depth of thought
developed by Dean Leffingwell and Don
Widrig

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28
Kano model
• ‘Kano model’ is the theory and model of customer
satisfaction and product development developed by
Professor Noriaki Kano.
• This theory classifies customer preferences into four
categories.
1. Basic – When basic features are not present they cause
dissatisfaction, but when present do not cause satisfaction.
Ex: Clean hotel room.
2. Performance – Customers expect what they want and it is
possible to meet them. The more the better in a linear way.
Ex: Longer the battery life the more the performance; faster
the internet the more the performance. These are known
needs.
3. Excitement: Wow factors, unexpected. Example : A cell
phone that can read Blood pressure. Unstated. Can be used
as differentiators.
4. Indifferent: Does not impact customer preference. Like a
100 page user manual, instead of a one page instruction.
Can be used for cost cutting.
With passage of time exciters could become basic.
This Photo by Unknown Author is licensed under CC BY
29
MoSCoW

• This is a product development model used for requirements prioritization. The product features
are ranked in hierarchy of value to the customer.

Must Have
• Non-negotiable needs that are mandatory for the product. Minimum Business
Increment. Ex: A clean hotel room with a good restaurant, reliable WIFI

Should Have
• Important features that are not vital, but add significant value.
• Ex: Proximity to airport and shopping malls.

Could have
• Nice to have features, but if left out, will only have a small impact. Ex: Pick up
& Drop to and from airport.

Won’t have
• Not a priority for the specific time frame: Ex: Having a Sauna and gym.

30
 PAIRED COMPARISON
OPTION A B C D E F G H I
A. Room size A A A A A A A A
B .WIFI C B B B G B B
C. Cuisine C C C G C C
D. airport drop D F G H I
E. Pool F G E I
F. Bar G F I
G.Sauna G I
H.Guest Lounge I
I. Health centre
COUNT 8 5 6 1 1 1 6 1 5
RANK 1 3 2 5 5 5 2 5 3
31
 100 point method

• Generally when we ask stakeholders what are the

Feature John James Lisa TOTAL Priorty most valuable features they would like to find in a

Customer sign up 35 30 60 125 1 product, they might say “All”. So this is a method
that compels them to give weights.
Social media sharing 15 40 30 85 2
• Used to prioritize user stories in product backlog
Customer profile 20 20 10 50 3
• Stakeholders are distributed 100 points or fictional
Track order 30 10 0 40 4 100 $.
Total 100 100 100 300 • They are asked to distribute among features.

• Points awarded to each feature is added up and

prioritization is made on the count.

32
Product backlog - An ordered list of user-centric requirements that a team maintains for a product.

fe ct
y De
alit
on rk
nct i al wo
f u Bu hic g
w Cha g ec inin
Ne n fix et Tra
ge r
equ d uc Res
ear
e
es t o r debt ch w
r kt or k
Wo
This Photo by Unknown Author is licensed under CC BY-SA-NC 33
Backlogs

• Prioritized list of user

stories • The product owner is responsible for prioritizing work according to
value.
• Includes all work
content • The product owner and team collaborate to move work items to the
iteration/sprint backlog.

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34
Scope
Management
Plan*

• Guides in preparing a project scope statement

• Enables the creation of the WBS from the detailed project scope
statement
• Establishes how the scope baseline will be approved and maintained
• Specifies how formal acceptance of the completed project deliverables
will be obtained

35
Project Scope
Statement
Includes –

• Scope description - project and product

• Acceptance criteria
• All deliverables
• Exclusions
• Constraints and assumptions

Once it has been approved and baselined, changes are only

permitted in accordance with the change management plan.

36
Product Analysis Methods

PRODUCT BREAKDOWN REQUIREMENTS ANALYSIS

Splits a product and its requirements into Identifies, validates and documents
components to achieve a clear understanding specifications for projects
of work

VALUE ENGINEERING
SYSTEMS ENGINEERING
Optimizes value in a structured way
Approaches design, integration, and
management, and the life cycle of complex
systems in a multi-disciplinary way VALUE ANALYSIS
Examines factors affecting product/service
cost in a systematic, interdisciplinary way
SYSTEMS ANALYSIS
towards success with the lowest cost and
Studies a product /service to identify its goals required quality and reliability standards
and purposes and create systems/ procedures
to achieve them efficiently

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Product Breakdown

Every component has a function to

perform; and comes with a cost.
Depending on the purpose and
planned economic life designers
should maximize function and
minimize cost, at the same time not
failing to preserve the basic function.

Microsoft smart band : Contains 10

chipsets. Tracks fitness, heart rate,
calorie burn, uses GPS and blue tooth.
Also shows time.

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Decomposition
Decomposition* A technique used for dividing and subdividing the project scope and
project deliverables into smaller, more manageable parts.

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition,
Project Management Institute, Inc., 2017, Page 158.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
39
Institute Inc., 2017.
Control Account, Planning Packages and Work Packages
Top of WBS
• Planning package* A WBS 1.0
Project name or
Project Name
component below the control account primary deliverable

with known work content but without

detailed schedule activities.
Management control point
1.1
• Control account* A management Control Account
Integrate scope, budget, and
schedule to compare to EV
control point where scope, budget,
actual cost, and schedules are
integrated and compared to earned 1.1.2
Works needed further plan
value for performance measurement. Planning Package
Integrate scope, budget, and
schedule to compare to EV
• Work package* Work defined at the
lowest level of WBS for which cost and
duration are estimated and managed. 1.1.1 1.1.2.1
Planned works
Group scheduled and
Work Package Work Package
estimated activities
• Rolling Wave Planning* : The
process of planning for the near term
in detail and for medium to long term at Each work package is
WBS code
part of only one financial
a higher level. control account.
(numbering system)

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
40
Institute Inc., 2017.
Code of Accounts
Code of accounts* A numbering system used to uniquely identify each component of
the WBS.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
41
Institute Inc., 2017.
WBS
Dictionary
Decompose work and include:
• WBS code identifier
Provides detailed • Description of work
deliverable, activity • Assumptions and constraints
and scheduling
• Responsible organization
information about
each component in • Schedule milestones
the WBS • Associated schedule activities
• Resources required to complete the work
• Cost estimations
• Quality requirements
• Acceptance criteria
• Technical references
• Agreement information

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42
WBS DICTIONARY

Code of account

43
Scope
Baseline
• Approved version of a scope statement, WBS and its associated WBS
dictionary, that can be changed only using formal change control
procedures
• Used as a basis for comparison to actual results

Components include:

• Project scope statement

• WBS
• Work packages
• Planning package
• WBS dictionary

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44
Scope
Planning
Tools and Used to consider possible potential
Techniques for Document options or approaches to execute and
Analysis analysis perform project work

Analyze the information needed to

Match the Alternatives
requirements develop the project scope statement or
analysis analysis any technical detail
tool/technique with
the correct Derive new project requirements from
description. Product
existing documents
analysis

Ask questions about a product and form

Expert judgment answers to describe use, characteristics,
and other relevant aspects

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45
Schedule
TOPIC C

46
ECO Coverage

2.6 Plan and manage schedule

• Predictive vs adaptive approach for
schedule
• Estimate project tasks (milestones,
dependencies, story points) (2.6.1)
• Utilize benchmarks and historical data
(2.6.2)
• Prepare schedule based on methodology
(2.6.3)

47
Schedule Project schedule
• Methodology/tool for schedule development
Management model
• Includes maintenance planning, including status updates and
progress during execution
Plan • Acceptable range used to determine realistic activity duration
Components Accuracy estimates
• May include risk contingency
Units of
Defined for each resource – e.g., staff hours, days and weeks
measure
Organizational
Use of WBS to ensure consistency with estimates and schedules
procedural links

• For monitoring schedule performance before taking action – e.g.,

Control escalation/reviews
Discuss how the thresholds • Expressed as percentage deviations from the baseline — e.g.,
schedule management percent ahead or behind schedule
plan can be a beneficial
tool in hybrid projects. Rules
Performance measurement — e.g., earned value management (EVM)
Who would it benefit? rules
Reporting Frequency and formats for schedule-related reports

Process
Describes how schedule management processes are documented
descriptions

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Start with Benchmarks
and Historical Data

Benchmarking
Develop benchmarks for assessing relative
sizes of user stories.

Historical data
Schedule databases from past analogous
projects.

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Predictive
Schedule
Planning

The project manager:

• Breaks down a work package into the required activities
• Determines dependencies and precedence relationships
• Estimates the duration of activities based on average resources
• Determines the critical path
• Resolves resource overallocations
• Compresses the schedule, if needed, to meet constraints

50
 Define activities

ACTIVITY LIST
A documented tabulation of schedule activities that shows
PROJECT ACTIVITY
the activity description, activity identifier, and a sufficiently
A distinct, scheduled portion detailed scope-of-work description so project team
of work performed during a
members understand what work is to be performed.
project.

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51
Activity Attributes
Activity attributes*

• Multiple attributes
attached with each
schedule activity that
can be included within
the activity list. Activity
attributes includes
activity codes,
predecessor activities,
successor activities,
logical relationships,
leads and lags, resource
requirements, imposed
dates, constraints and
assumptions.

•These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
Sixth Edition, Project Management Institute Inc., 2017.
52
Precedence Sequence activities using Precedence Diagramming Method
Relationships

• Activity dependencies
determine
ES DURATION EF ES DURATION EF
precedence
relationships (aka
logical relationships)
and the order in which Activity id Activity id
activities are
performed
• Show these using the LS TOTAL FLOAT LF LS TOTAL FLOAT LF
precedence
diagramming
method (PDM)

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53
Activity
Dependency DEPENDENCY TYPES
Types
Mandatory*

• A relationship that is contractually required or inherent in the nature of

the work.

Discretionary*

• A relationship that is established based on knowledge of best practices

within a particular application area or an aspect of the project where a
specific sequence is desired.

External*

• A relationship between project activities and non-project activities.

Internal

• Contingent on inputs within the project team’s control.

54
Types of Precedence Relationships
FINISH TO START

CONFIGURE HARDWARE INSTAL OS

START TO START FINISH TO FINISH

CONDUT LESSONS LEARNED

PERFORM TESTS
MEETING

DOCUMENT TEST COMPLETE PROJECT

RESULTS FILE

START TO FINISH

END NIGHT SHIFT BEGIN DAY SHIFT

55
Leads & Lags

LEAD LAG
Lead Lag delays
• F-S 3 DAYS LEAD Advances S-S 3 DAYS LAG next activity
next activity
5 DAYS
PREPARE GROUND
PREPARE GROUND

5 DAYS 5 DAYS

LANDSCAPE LANDSCAPE

5 DAYS
LAG : 3 DAYS
LEAD: 3 DAYS

TOTAL : 5 +5 -3 = 7 DAYS TOTAL : 5 +3 = 8 DAYS

56
Activity
Duration
Estimate
Terminology Activity Duration Estimate
• The quantitative assessment of the likely number of time periods
required to complete an activity

57
 Estimating Techniques

• Less costly and time

• Uses historical data from a similar activity or • May be inaccurate,
consuming
Analogous project to estimate duration (or cost)
• Used when project
depending on quality of
• aka “top-down estimating.” historical information
information is limited

• Uses an algorithm to calculate duration (or • Does not account for a

• Can produce higher levels
cost) based on historical data and project learning curve — i.e., work
of accuracy depending on
parameters. gets easier as team
Parametric • Durations can be quantitatively determined
sophistication of data from
becomes more expert
model
— multiply quantity of work to be performed • Uniform units of work are
• Scalable and linear
by the number of labor hours per unit of work not typical in projects

• Defines an approximate range of an • May improve accuracy of

• Requires detailed resource
activity’s duration, using most likely, single-point estimations by
information
Three-Point optimistic, and pessimistic estimates including risk and
• Requires expert knowledge
• Used when historical data is insufficient, or uncertainty factors
to estimate tasks
subjective

• May be very time

• Very accurate and gives consuming
• Uses aggregates of the estimates of the
Bottom-up lower level components of the WBS
lower-level managers more
responsibility • Can be used only after the
WBS has been well defined

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58
Three-Point Estimation PERT is based on a probability distribution;
Examples therefore, we can calculate a standard
deviation:

(P - O) / 6 = PERT Standard Deviation

Triangular Distribution (average) BETA Distribution (PERT average)

FORMULA FORMULA
E = (O + M + P) / 3 E = (O + 4M + P) / 6
• Optimistic = 3 weeks
• Most Likely = 5 weeks • Optimistic estimate = 3 weeks
• Pessimistic = 10 weeks • Weighted most likely estimate = 5 weeks
• Pessimistic estimate = 10 weeks
EQUATION
EQUATION
(3 + 5 + 10) / 3 = 6 weeks
[3 + 4 (5) + 10] / 6 = 5.5 weeks

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59
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

C
D

1 2 3 4 5 6 7

Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

C
D

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

C
D

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

C
D

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

B
ES (2) EF(2)
C
FLOAT
D

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

LS (6) C LF(6)
FLOAT
D

1 2 3 4 5 6 7

Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

FLOAT = LS-ES OR LF-EF

A 6-2 = 4
B
2 2
6
C 6
FLOAT
D

1 2 3 4 5 6 7
Gantt chart
 5
B

1 1 A,B,D = 7 DAYS
D A,C,D = 3 DAYS
A PROJECT DURATION = 7 DAYS
CRITICAL PATH =
1
LONGEST DURATION PATH =
C SHORTEST TIME TO COMPLETE
THE PROJECT = 7 DAYS

Delaying C by 4 days will not

A delay project (ACD IS NOT
CRITICAL PATH)
B

C
FLOAT
D

1 2 3 4 5 6 7
Gantt chart
CRITICAL PATH ANALYSIS

EF= ES+
(DUR-1)
Critical path
The sequence of
activities that
represents the
longest path
through a project,
which determines
the shortest
possible duration

LS=
LF-(DUR -1)

70
Total Float
Total float* The amount of time that a schedule activity can be delayed or extended from its early start date
without delaying the project finish date or violating a schedule constraint.

Total float of zero.

(ES - LS and EF - LF)

71
Free Float
Free float The amount of time that a schedule activity can be delayed without delaying the early start date of any
successor or violating a schedule constraint. Note that it does not mention anything about project final end date.

Free float for activity C

is ES of D – ES of C –
Duration of C
30-26-4 = 0

FF = 0 FF = 0 FF = 11

FF = 0 FF = 0 FF = 0

FF = 0 FF = 0`

72
Free Float
Free float The amount of time that a schedule activity can be delayed without delaying the early start date of any
successor or violating a schedule constraint. Note that it does not mention anything about project final end date.

Free float for activity C

is ES of D – ES of C –
Duration of C
30-26-4 = 0

FF = 0 FF = 0 FF = 11

FF = 0 FF = 0 FF = 0

FF = 0 FF = 0`

73
Free Float
Free float The amount of time that a schedule activity can be delayed without delaying the early start date of any
successor or violating a schedule constraint. Note that it does not mention anything about project final end date.

Free float for activity C

is ES of D – ES of C –
Duration of C
30-26-4 = 0

FF = 0 FF = 0 FF = 11

FF = 0 FF = 0 FF = 0

FF = 0 FF = 0`

74
Free Float
Free float The amount of time that a schedule activity can be delayed without delaying the early start date of any
successor or violating a schedule constraint. Note that it does not mention anything about project final end date.

Free float for activity C

is ES of D – ES of C –
Duration of C
30-26-4 = 0

FF = 0 FF = 0 FF = 11

FF = 0 FF = 0 FF = 0

FF = 0 FF = 0`

75
RESOURCE LEVELLING
Can cause
critical path
to change

BEFORE LEVELLING AFTER LEVELLING

W T F S S M W T F S S M

BOB
8 8 8 8

BOB
8 8

BOB

8 8
RESOURCE SMOOTHING
Happens within
available total float
Hence will not
change CP

BEFORE SMOOTHING AFTER SMOOTHING

M T W T M T W T

6 7 5 6 6 6 6 6

No predetermined limits fixed Predetermined limit 6 hours fixed

within available float
DEVELOP SCHEDULE -
SCHEDULE COMPRESSION

FAST TRACKING : Performing

activities in parallel. NORMAL 1 2 3 4 5
Increases risk of rework and 6 7 8 9 10
quality.
Involves greater coordination
among activities being fast tracked.
FAST 1 2 3 4 5
TRACKING
CRASHING: Shorten schedule 3 4 5 6 7 HIGH RISK
duration by adding resources.
Through approving overtime and
adding resources.
CRASHING 1 2 3
Crashing works only on critical
paths. + 4 5 HIGH COST
Crashing may increase cost.
+
Crashing works only for activities
that effort driven.
Question
The project schedule shows a duration of 47 weeks
Customer has advanced the constraint by 5 weeks.
You are asked to consider crashing the schedule appropriately
There are 5 activities on the critical path that can be crashed
Current duration Weeks saved by crashing Cost of crashing
A 8 2 4000
F 9 4 16000
J 12 1 2000
K 5 2 2000
R 8 3 9000

ANSWERS : Crashing required only for 5 weeks

Option A A+J+K 4000+2000+2000 8000
Option B F+J 16000 + 2000 18000
Option C A+R 4000+9000 13000
Option D K+R 2000+9000 11000
ANSWER: OPTION A IS THE LEAST EXPENSIVE
The Project
Schedule

• Includes start and finish activities

• Uses specific dates and in a certain sequence
• Sets dates for project milestones
• Coordinates activities to ensure on-time project completion
• Tracks project progress based on schedule performance and provides
visibility of project status to upper management and project
stakeholders

80
Schedule
Presentation
Formats
Select the type of schedule to suit your project!

• Roadmap
• Gantt Chart
• Milestone Chart
• Project Schedule Network Diagram

81
Gantt Chart
Visualize and Track the Project Over a Time Line

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
82
 Milestone Schedule
Present Milestones with Planned Dates

ID Task Name April May June July

3/14 3/21 3/28 4/4 4/11 4/18 4/25 5/2 5/9 5/16 5/23 5/30 6/6 6/13 6/14 6/20 6/27 7/4 7/11 7/18 7/25

30 Begin Phase 1
31 Deliverable A
32 Deliverable B
33 Phase Gate Review
34 Begin Phase 2
35 Deliverable C
36 Deliverable D
37 Phase Gate Review

Remember that milestones have

zero duration Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
83
Gantt Chart
Gantt chart* A bar chart of schedule information where activities are listed on the vertical axis, dates are shown
on the horizontal axis, and the activity durations are shown as horizontal bars placed according to start and finish
dates.

84
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017.
Project Schedule Network Diagram
Visualize Interrelationships of Activities

Notations are for graphical

example only!

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
85
Schedule Baseline*

• Retain the approved schedule as baseline

for comparing actual progress
• Use the formal change control process to
make changes to the baseline

Copyright
Copyright2023©
2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
86
Adaptive Scheduling Approaches
Comparative View
On-Demand (Kanban/Lean-based) Time-boxed/Iterative

• Team pulls work from queue. • Time boxed

• Has an on demand cadence, not a time • Unfinished items are restored to product
box. backlog
• Uses WIP that Levels out work of team
members.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
87
KANBAN
88
 VISUALIZE WORKFLOW
NEXT ANALYSIS DEVELOPMENT ACCEPTANCE PREPROD

DOING DONE DOING DONE DOING DONE

 LAY DOWN POLICIES
NEXT ANALYSIS DEVELOPMENT ACCEPTANCE PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 DEFINE WIP LIMITS
NEXT (12 ) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD
DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 BOTTLENECK ACTIVITY
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 • Slack downstream
• Queue upstream

NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

How How
can we can we
help help

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 • Slack downstream
• Queue upstream

NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 MANAGE FLOW
NEXT (12) ANALYSIS (2) DEVELOPMENT (2) ACCEPTANCE (2) PREPROD

DOING DONE DOING DONE DOING DONE

Definition of Ready Definition of Done Definition of Done

Goal is clear Code clean & checked in on trunk Customer accepted
First tasks defined Integrated and regression tested Ready for preproduction
Story split (if necessary) Running on UAT environment
 THROUGHPUT
ANALYSIS

WIP=4
1 2

3 4
 THE CYCLE TIME WILL BE 4 DAYS
Cycle time increases as WIP increases.
CYCLE TIME = WIP / THROUGHPUT Example: If WIP increases to 8, cycle time will increase from 4 to 8 days
(This is called Little’s Law) To decrease cycle time, you must decrease WIP, increase team or
production capacity

IF WIP IS 4

WIP=4
IF ONE UNIT GETS “DONE” EVERY
DAY (THROUGHPUT)
Budget
TOPIC D

123
ECO Coverage

2.5 Plan and manage budget and resources

• Estimate budgetary needs based on the
scope of the project and lessons learned
from past projects (2.5.1)
• Anticipate future budget challenges
(2.5.2)
• Monitor budget variations and work with
governance process to adjust as
necessary (2.5.3)
• Plan and manage resources (2.5.4)

124
 Cost Estimates
• Develop an approximation of the cost for
each activity in a project.
• Cost should include:
• Direct labor
• Materials
• Equipment
• Facilities
• Services
• Information technology
• Contingency reserves
• Indirect costs
• Realistic estimates provide basis for
making sound decisions and they establish
baselines.
125
Advantages and Disadvantages of Estimating Techniques

Technique Advantage Disadvantage

Analogous estimate Consumes less Example may not be exactly similar.
Rough estimate (Rough Order of Magnitutde estimate) time. Least accurate.
Based on past similar projects. Top down. Must be Range -25 to + 75 %
adjusted for known differences.
Bottom-up estimate or definitive estimate Detailed and time consuming.
Accurate
After the WBS has been well-defined. Range -5 / + 10%
Parametric estimate
Standard rates (eg cost per lunch), or, Published rates, Scaleable. Not detailed enough. -10% / + 25
Or, Unit rates : eg $100 daily labor rate; or rates based on %
previous phases of the project.

126
Cost Baseline

Cost baseline* The approved version of the time-phased project budget, excluding any management reserves,
which can be changed only through formal change control procedures and is used as a basis for comparison to
actual results.

• Time-phased budget
• Monitors and measures cost performance
• Includes a budget contingency
• Excludes management reserve
• Varies from project to project

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition,
Project Management Institute, Inc., 2017, Page 255.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
127
Institute Inc., 2017.
Reserve Analysis
• MANAGEMENT RESERVE:

• An amount of project budget held outside of the performance

measurement baseline (PMB) for management control purpose,
that is reserved for unforeseen cost or work that is within scope of
the project.
• As these are for activities which cannot be scheduled, management
reserve is not therefore part of cost or schedule baseline, but is
within the overall project duration or project budget.
• CONTINGENCY RESERVE

• Contingency reserve which is for planned should be clearly

identified in cost documentation.
• Contingency reserves are part of cost baseline and overall project
funding requirements.
• As more precise information become available contingency
reserves can be used, reduced or eliminated.
DETERMINE BUDGET

Contract price $2000 Contract Price

Project Budget $1500

Project Budget
Management Reserve (meant for unforeseen
$500
work within existing scope)

Cost baseline (includes

Contingency reserve for risks in relation to $1000
scheduled activities within existing scope)
Budget At
CA Estimates
Completion
CA 1 - $300 CA 2 - $700

WP1 WP2 WP3

Work package estimates including
$80 $80 $80
contingency reserves at WP level
+20 +20 +20

Activity estimates including $15 $15 $15 $15

Contingency reserve for risk of rework +5 +5 +5 +5
Funding Limit Reconciliation – meet budget challenges

• Planned expenditure
should be reconciled with
funding limits based on
commitment for funds.
• A variance between
funding limit and planned
expenditure will
necessitate rescheduling
of work to level out
planned expenditure.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth
Edition, Project Management Institute Inc., 2017.

130
AGILE COST ESTIMATION – ITERATION COST USING SPECIFIC
LABOR RATES

ROLE ANNUAL COST

(in $)
FULLY LOADED
COST
LOADED COST PER
ITERATION
ALLOCATED TIME ON
PROJECT
(in $)
FIXED BURN RATE PER
ITERATION
(in $)
(in $) (in $)

PO 70000 120000 10000 100% 10000

ANALYST 50000 60000 5000 100% 5000
UX DESIGNER 50000 60000 5000 50% 2500
DBA 60000 72000 6000 50% 3000
ARCHITECT 70000 84000 7000 100% 7000
SENIOR TESTER 70000 84000 7000 50% 3500
TOTAL 30500
AGILE BUDGET

A fixed iteration burn rate for labor costs is

calculate and multiplied with projected Nope, top 50 features in
number of iterations: Just as many in as many sprints as it
features, as we can, may take !
There are two approaches to deciding on
in 12 sprints !
the number of iterations and releases.
FEATURE BASED RELEASE PLAN
Determine the minimum number of
features, that a product should have, and
plan to have as many iterations as would
be required to reach the targeted features,
or;
TIME BASED RELEASE PLAN
Determine a target time frame, and within
this, plan to build as many value based
features as possible.
Agile budget
Use incremental guidance and funding for agile projects

• Instead of predefined project durations or annual

budgets, consider more frequent reviews (such as
quarterly) and funding for the next quarter.
• You can iteratively assess value delivery more often.
• Gives managements opportunity to continue
successful ventures while curtailing investment on
ventures that do not seem to be paying off.

134
Quality
TOPIC D

135
ECO Coverage

2.7 Plan and manage quality of products /

deliverables
• Determine quality standard required for
project deliverables (2.7.1)

136
Quality
Standards and
Regulations
Words are used widely in
De facto standards or Widely accepted and adopted
groups, like slang or
regulations through use
jargon.

De jure standards or Mandated by law or approved by a Word enters dictionary and

regulations recognized body of experts. becomes a defined word.

A number of international institutes are devoted to quality, including:

• American Society for Quality (ASQ) - ISO 9000 Series
• The Chartered Quality Institute (CQI)
• ASTM International

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
137
Quality

The degree to which a set of inherent

characteristics fulfill requirements.
Quality Management reflects:
• Stakeholder expectations of quality
• Compliance with standards and
regulations

Copyright
Copyright2023
2023© Project Management Institute, Inc. All rights reserved.
This
Thismaterial
materialis isbeing
beingprovided
providedasaspart
partofofa aPMI
PMI®
Workshop.
course.
138
Quality
Metrics
Metrics measure desired quality attributes for product or project through
testing, use of tools, processes.

Examples:

• Defect density

• Defect removal efficiency

• Schedule variance

• Test coverage ( what % of requirements will be covered)

• Meantime between failure and Mean time to repair

May include a tolerance level.

139
Cost of Quality
(CoQ)
Cost of conformance Cost of non conformance
• Prevention costs (Build a quality product) • Internal failure costs
• Training • Rework
• Document processes • Scrap
• Equipment • External failure costs
• Time to do work “right” – resources, • Liabilities
infrastructure expenses
• Warranty work
• Appraisal (quality assessment)
• Lost business
• Testing
• Inspections

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
140
Control
Quality Tools
Data gathering
• Checklists/check sheets
• Statistical sampling
• Questionnaires and surveys

Data analysis
• Performance reviews
• Root cause analysis

Data representation
• Cause-and-effect diagram
• Scatter diagrams
• Control charts
• Histograms
• Pareto chart

141
Data Gathering
Questionnaires and Surveys
• Written set of questions, quickly accumulates information from a large number of
respondents.
• Useful for varied audiences, for quick turnaround, or geographical dispersion of respondents

Checklists
A structured tool, usually component-specific
• Verifies performance of required steps or completion of requirements
• Used to organize facts to facilitate data collection about a potential quality problem
• Useful for gathering attribute data and variable data while performing inspections for defects.

Statistical sampling
• Choosing part of a population of interest for inspection.
• Determine characteristics of an entire population based on representative
sample.

Check sheet
A template for gathering data about potential quality problems.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
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Data
Visualization
Quality Tool -
Cause and
Effect Diagram

Break down the problem

statement to identify
causes in discrete
branches
Keep asking “why” to
help identify the main or
root cause of the - Kaoru Ishikawa
problem

Example fishbone diagram (aka Ishikawa or Why-Why)

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143
Data
Visualization
Quality Tool

QUALITY CHARACTERISTICS
Scatter Diagram

Shows the relationship

between two variables
Demonstrates
relationships among any
element of a process,
environment, or activity
on one axis and a quality
defect on the other

PROCESS INPUT

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144
Data Visualization Quality
Tool
Control Chart

• A tool used to determine the predictability, SPECIFICATION LIMIT

behavior and stability of a process over time CONTROL LIMIT
• Ideal for repetitive processes with predictable
MEAN
results
• Shows a mean and established control CONTROL LIMIT
limits and specification limits SPECIFICATION LIMIT
• Follow the “rule of seven” = investigate
increases/decreases of seven consecutive
points, indicating a trend/potential issue

145
Data
Visualization 100%

Quality Tools 90%

Histogram and 80%

Pareto Chart

Results of retail fabric showroom

70%

• A Pareto chart is a 60%

Bad light

customer survey
type of histogram
50%
• Uses 80/20 rule
40% 44
• Demonstrates No parking
frequency of problem space
30%
occurrence Poor
counter Limited
• Analyzes data sets 20%
23 service Slow
range of
related to a specific fabric colors moving Fabric
problem or issue, but 10% fabrcs quality
14
does not define the 9
0% 6 4
root cause of a
problem Local Resident Needs
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146
Verified
• Project team verifies deliverables based on quality standards and
Deliverables requirements:
The verified deliverables are presented to and accepted (validated) by
the customer – resulting in accepted deliverables

• Implement corrections and controls when quality standards are neither

met nor within acceptable ranges

• Team, customer and product owner are responsible for

setting and meeting quality goals and metrics
Definition of Done
Acceptance criteria
• Feedback from iterations continuously monitor quality

147
Quality Audit*

May be scheduled or conducted ad hoc

Topics include:
• Quality management policy
• Collection and use of information
• Analytical methods
• Cost of quality
• Quality process design

Use audits to enhance or formalize the quality

management complement in adaptive development
approaches.

148
Discussion
Quality Standards and
Regulations

What standards and regulations are

relevant in your industry?

Copyright
Copyright2023
2023© Project Management Institute, Inc. All rights reserved.
This
Thismaterial
materialis isbeing
beingprovided
providedasaspart
partofofa aPMI
PMI®
Workshop.
course.
149
Resources
TOPIC E

150
ECO Coverage

1.6 Build a team

• Deduce project resource requirements
(1.6.2)
2.11 Plan and manage procurement
(resources)
• Define resource requirements and needs
(2.11.1)
• Communicate resource requirements
(2.11.2)
• Manage suppliers/contracts (2.11.3)
• Plan and manage procurement strategy
(2.11.4)
• Develop a delivery solution (2.11.5)

151
Resources
People and Equipment

• Value and empower internal human

resources
• Leverage external sources to ensure
you have the best team and equipment
possible!

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152
Resource
Management • Identify resources - People and equipment
Plan* • How to acquire them
• Define Peoples’ roles and responsibilities
• Role – A person’s function in a project
• Authority - Rights to use resources, make decisions, accept
deliverables.
• Responsibility - Assigned duty
• Competencies and skills required
• Project Organization Chart – (Visual with resource categories and
reporting relationships)
• Project team resource management – Guidance on how to define,
select, manage and release resources
• Training - Strategies and requirements
• Resource controls – Tracking resource usage, reallocate resources
based on changing priorities, optimize usage to avoid under utilization
or overutilization, taking corrective and preventive actions.
• Recognition plan
153
Use Resource
Calendars*

• Document resource availability (people, equipment, material, etc.)

usuring resource calendar

Resource calendars can be used in any kind of

project!

154
The RACI Chart
RACI chart* A common type of responsibility assignment matrix (RAM) that uses responsible,
accountable, consult, and inform statuses to define the involvement of stakeholders in project
activities.”
It shows all activities associated with on person and all persons associated with each activity. These
can be modified as “Lead” “Resource” and so on.
Project Engineering Quality Assurance Purchasing Manufacturing
Responsible: Performer or
Manager Manager Manager Manager Manager Doer
Create blueprints A R C C

Manufacture circuit Accountable: Answerable –

I C C A
board Can agree, disagree or veto.
Test circuit board I R A R

Order components C C I A I
Consultative: Provides
Assemble
feedback and contributes to
I C A
activities – Adviser

R = Responsible A = Accountable C = Consulted I = Informed Inform: Needs to be informed

of decision or action: Kept
updated
These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017.
PROJECT ORGANIZATION CHART

A document that graphically depicts the project team members and their inter
relationships for a specific project.*

This Photo by Unknown Author is licensed under CC BY-SA-NC

157
WORK BREAKDOWN STRUCTURE

A work break down structure shows high

level areas of responsibility

158
ORGANIZATIONAL BREAKDOWN STRUCTURE

“ A hierarchical representation of the project organization, which illustrates the

relationship between project activities and the organizational units that will perform
those activities”

159
RESOURCE BREAKDOWN STRUCTURE

“ A hierarchical representation of resources by category and type”*.

• A resource
breakdown structure
provides a resource
inventory.

• It indicates current
availability.

• It’s a reference in
case a resource has
to be deployed,
replaced or
reacquired during the
course of the project..

160
PROCUREMENT
MANAGEMENT
Make or Buy? External sourcing considerations:
• What is the impact on cost, time or quality?
• Is there an ongoing need for the specific skill set?
• How steep is the learning curve?
• Are required resources available within the organization?
• Would outsourcing allow the team to focus?

Use a make-or-buy analysis to make the best decision for your team.

Make-or-buy decisions are part of a procurement strategy.

161
Procurement • Describes the process for obtaining and evaluating bids
Management
Plan* • Specifies the types of contracts that will be used
• Timetable of key procurement activities
• Deadline for submission of proposals
• Anticipated contract award dates
• Bidders conference

• Procurement budgets
• Stakeholder roles and responsibilities
• internal stakeholders like quality teams, evaluation committee members,
procurement team, external stakeholders

• Pre qualified sellers – whether can be used.

162
Source
Selection
Criteria* • Overall or life-cycle cost
• Understanding of need
• Technical capability
Work with external • Management approach
resources whose values, • Technical approach
skills and attributes are
aligned with your • Warranty
project’s. • Financial capacity
• Production capacity and interest
• Business size and type
• Past performance of sellers
• References
• Intellectual property rights

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163
Procurement
Documents
Bid and
Proposal
• Statement of Work (SOW): Details of work required
Activities • Derived from scope baseline.
• Contains all requirements – specifications, quantity,
location, quality, performance data, performance
report and others.
• May go through several changes before finalization.

164
Procurement
Documents
RFI (REQUEST FOR RFP (REQUEST RFQ (Request for
Bid and INFORMATION) FOR PROPOSAL) quotation) IFB
(Invitation for bid)
Proposal
Goal To gather vendor To create best To get best price for
Activities information project project
specifications.

Key Information about Statement of Pricing details

Deliverables suppliers work for project

Note: RFP is used when the solution is not easy to decide, which requires
customization or further elaboration of specifications. This should be stated in a
detailed manner so that responses are consistent from all vendors. But if vendors
suggest specific changes to deliver in a better manner, the process should be flexible
to accommodate changes.

165
Formal
Procurement
Processes

Bidder • To give clear and complete understanding of the

Conferences
procurement
• To ensure no bidders receive preferential treatment

166
Agreements
• Major components of agreements:
• Procurement statement of work
• Schedule information, milestones
• Performance reporting
requirements
• Pricing terms and terms of payment
• Inspection, quality and acceptance
criteria,
• Warranty
• Incentives and penalties
• Insurance and performance bond
requirements
• Sub contractor approvals
• Change request handling
• General terms and conditions
• Alternative dispute resolution

167
TYPES OF CONTRACTS

COST
FIXED PRICE REIMBURSABLE

contracts

AGILE
TIME & MATERIAL CONTRACTS
CONTRACTS
• COST REIMBURSABLE CONTRACTS

• All seller’s cost are reimbursed by the buyer, Seller’s profit stated as Fee is included.

• Cost is unknown at the beginning

• Buyer has the most cost risk, so generally bad for any buyer

• Used when precise description of goods or services cannot be developed

• Seller is responsible for detailing the scope of work

CONTRACTS – COST REIMBURSABLE

• CPFF: Actual Cost = $ 100,000 Fee = $ 10,000 Total buyer pays to Seller = 110,000

• CPPC: Actual Cost = $ 100,000 Fee = 25% of the cost Total buyer pays to Seller = 100,000 + 25% of 100,000 =
125,000

• Cost Plus Incentive Fee (CPIF)

 Target Cost: $100,000
 Fee: $10,000
 Share Ratio: 80/20 (Buyer/Seller)
Actual Cost + Fee + ((Target Cost - Actual Cost) * Share Ratio)
Scenario 1 : Actual Cost: $80,000
Seller receives: $80,000 + $10,000 + (20,000 * 20%) = $ 94,000

Scenario 2 : If Actual Cost: $120,000

Seller receives: $120,000 + $10,000 + (-20,000 * 20%) = $126,000
Cost reimbursable contracts

CPAF – Cost Plus Award Fee

• Similar with CPIF, but the bonus is based on

meeting specified performance metrics

• Based on sole discretion of buyer, generally

not subject to appeals.

FP-EPA – Fixed Price
Economic Price
Adjustment
 When contracts are for long
term
 Or When foreign currency is
involved
 When allowance needs to be
provided for inflation or cost
increase beyond supplier’s
control
 Allow for changes to final
price based on economic
indicators.

172
CONTRACTS – FIXED PRICE
• FFP – Firm Fixed price
• The most common form of contract

• Appropriate when buyer can describe the scope

of work

• Has the least cost risk for the buyer

173
 Agile considerations CONTRACT

Specific sellers may be used to form an agile

team.
Statement of work
Shared risk-reward models are used. PART A:
Master service agreement Schedule of
In larger projects, a stable approach services
Part a: features (subject
may be used for some deliverables
to review & change) Statement of work

and an adaptive approach for others.

Part b: Parties involved,
A Master Services Agreement (MSA) terms & conditions,
warranties, labour rate
for the overall work with appendices PART B:
Schedule of
services Statement of work
for adaptive work could be used.

Changes to adaptive work can

progress without impacting overall
contract.
“Agile” Contract Types
Team Embed supplier’s services directly into the customer organization; Project Management
augmentation under Buyer’s supervision. Low risk for seller and high risk for buyer. Aims at
(T&M) collaboration with flexible scope. Popular in agile projects and for team augmentation.
Not-to-exceed Adding to T&M, Not To Exceed, acts as a schedule constraint and budget constraint. Within
time and fixed budget buyer should prioritize value, by adding features and removing equivalent amount
materials of work.

Fixed price Fixed price negotiated for deliverables. Reward for early delivery and reduce for late delivery.
incentive fee

Early If partial scope delivery satisfies buyer, contract can be cancelled for a fee. Money for nothing
cancellation change for free. Seller benefits in case of cancellation and buyer loses. Risky for buyer.
option

Fixed-price Decompose scope into smaller, fixed-price micro-deliverables (features), giving customer more
increments control over how the money is spent.High risk for seller and low risk for buyer

Copyright 2023© Project Management Institute, Inc. All rights reserved.

175
This material is being provided as part of a PMI® course.
Control Procurements Process

Control Procurements process* The process of managing procurement

relationships, monitoring contract performance, making changes and corrections as
appropriate, and closing out contracts.
Other processes applied to the contractual relationship and integrated include:
• Work orders to formally start work is issued.
• Seller cost, schedule, and technical performance is monitored through reports.
• Changes are managed through change control system
• Contracts are closing through mutual discharge
• Open issues are negotiated and closed. First option should be for negotiated
settlement and alternative dispute resolution should be the last resort.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017. 176
Risks
TOPIC F

177
Enablers

• Determine risk management approach. (ECO 2.3.1)

• Iteratively identify, assess and prioritize risks and risk responses. (ECO 2.3.2)
• Determine risk response.
• Implement risk response.

178
PROJECT RISK MANAGEMENT
The project management knowledge area that includes the processes of conducting risk management planning,
identification, analysis, response planning, response implementation, and monitoring risk on a project.

Perform Perform
Identify risks Qualitative Quantitative
analysis analysis

List Prioritize Numbers

Plan Risk Plan risk

Managemen responses
t
Strategie
Implement s
Monitor risk risk
responses

Review Act
179
Risk
Risk* An uncertain event or condition that, if it occurs, has a positive or negative
Conditions of effect on one or more project objectives.
Uncertainty
Primary components include:
A measure of probability that the risk event will occur.
The impact of the risk occurring on a project.

• Risk originates from a wide range of known and unknown causes

within and outside the business environment.
• Risk development is indicated by a trigger condition.
• Risks can be positive (opportunities) or negative (threats).
• If a risk becomes an issue, you must act!

180
Create Risk
Strategy • Which are too
How would you
describe the high to
organization/ accept?
project’s risk • Which are low
First, understand risk appetite? enough to just
parameters for the be accepted?
• Risk-
organization and the • What criteria
seeking? determines
project! • Risk-neutral? inclusion in the
• Risk-averse? risk register?
This Photo by Unknown Author is licensed under CC BY-SA-NC
The risk
threshold is tied
to individual and
organizational
risk appetites.
Do you know:

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181
Define/Refine
Risk Set initial risk strategy, then define In the plan:
and refine it!
Management • Risk strategy
Approach • Methodology
Factor in project characteristics: • Roles and responsibilities
• Size • Funding
• Complexity • Timing
• Importance • Risk categories
• Development approach • Stakeholder risk appetite
• Definition of risk probability and
impact
Create a risk management plan! • Probability and impact matrix
• Reporting formats
• Tracking documents

182
Risk breakdown structure
• Risk identification checklists can be
developed based on historical
information and knowledge that has
been accumulated from previous similar
projects and from other sources of
information.

back
183
Identify risks
Identify risks:
Project Management Plan
• Schedule & cost management plan – variance thresholds, estimating
1 of 2 methods and confidence levels.
• Quality Management plan – quality metrics, testing requirements to be met.
• Resource Management plan – activity resource requirements, etc.
• Risk Management Plan – adequacy of reserves
• Schedule baseline – milestones, key deliverable dates
• Cost baseline – funding limits.

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184
Identify risks
Identify risks:
Project Documents:
• WBS – the basic source of risk identification
2 of 2
• Duration estimates & cost estimates
• Requirements documentation – potential for frequent change
• Resource requirements – adequacy
• Risk register – stakeholders who will manage risks
• Agreement with vendors :
deliverable dates
quality performance
contract types
rewards and penalties
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This material is being provided as part of a PMI® course.
185
Use tools &
techniques to • Brainstorming
identify risks • Checklist
• Interviews
• Delphi technique
• Root cause analysis – to explore opportunities and threats
• SWOT analysis
• Assumptions & Constraints analysis
• Use interpersonal and team skills for facilitation for clear description of risks,
consistent understanding of probability and impact levels.

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186
Risk Register*

Risk Score
Risk Impact Impact Level Probability Planned
(probability and Trigger Condition Owner
Description Description Score Level Score Response
impact multiplied)
What will
(IMPACT X
happen if the Rate Rate
PROBABILITY) What indicates the Who’s
risk is not 1 (LOW) to 1 (LOW) to Action plan
Address highest risk will occur. responsible
mitigated or 5 (HIGH) 5 (HIGH)
first.
eliminated
Supply chain
Supplier
issues for 5 1 5 L. De Souza
notification
correct bricks
Building code
5 2 10 Pre-checks fail K. Ayoung
compliance
Working with
new vendors
3 3 9 Delays or conflict K. Ayoung
and building
processes

Copyright 2023© Project Management Institute, Inc. All rights reserved.

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187
Assess Risks
Qualitative then
Quantitative

Perform the subjective qualitative assessment first.

Prioritize risks for further analysis by assessing and combining their

probability of occurrence and impact in a probability/impact matrix.

Then, if further support is required, use a quantitative assessment.

Not every risk needs quantitative assessment.

188
Probability and Impact Matrix

Probability and Impact Matrix* A grid for mapping the probability of occurrence of
each risk and its impact on project objectives if that risk occurs.
IMPACT

P SCORE 1 2 3
R
O 1 1 LOW 2 LOW 3 LOW
B back
2 2 LOW 4 MED 6 MED

3 3 LOW 6 MED 9 HIGH

PROBABILITY IMPACT DEFINITIONS FOR PROJECT OBJECTIVES

PROBABILITY % SCORE PROJECT LOW (1) MEDIUM (2) HIGH (3)
OBJECTIVE
UPTO 10 % 1
COST $ UPTO 10000 10001-20000 20001 - 30000
11 -50 % 2 SCORE 1 SCORE 2 SCORE 3
SCHEDULE UPTO 1 WEEK 1 8 -15 DAYS 2 15- 30 DAYS 3
OVER 50 % 3
QUALITY BUG 1 DEFECT 2 FUNCTIONALITY MISSING
3 189
Quantitative Risk Analysis

Quantitative risk analysis: Technique used to assess the risk exposure events to
overall project objectives and determine the confidence levels of achieving the project
objectives.

• Helps to identify time and cost contingencies of a project

• Refines and enhances the prioritization and scoring of risks

190
Monte Carlo simulation

Activity level duration estimates from pessimistic and optimistic schedules are
randomly used to generate several schedules iteratively. Schedule outcomes are
represented in a range of uncertainty.
ACTIVITY P ML O
A 2 2 8
B 4 5 12
C 7 8 15
D 10 14 18
E 6 7 14
F 7 9 17
Monte Carlo simulation
• A more accurate
indication can be
derived by plotting the
cumulative curve
shown here.
• On what day is there
a 50 % of chance of
finishing the project ?
The answer is 40
days.
• Conversely what is
the chance of the
project finishing in 40
days. The answer is
50 %,
192
 RANGE OF UNCERTAINTY
100
100

90
90
C C
U 80
U
80
M TARGET $ 2.2 M M
U 70 U
70
L 70% CHANCE OF COSTING $ 2.40 M L
A OR LESS 60 A
60
T T
I 50 % CHANCE OF MEETING TARGET 50 I
50
V V
E 40 E
40

P 30 P
30
R R
O 20
20 O
B B
10
10
% %
0
0

$ 2M $ 2.1 M $ 2.2 M $ 2.3 M $ 2.4M $2.5 M $ 2.6M $2.7M

$ 2.8M
PREDICTED TOTAL PROJECT COST 193
Sensitivity Analysis – Used to identify most sensitive risks

Sensitivity Analysis for Profit

Risk factor Threat Oppor- Tornado Chart
tunity

5 -30 45

4 -20 10

3 -10 20

2 -5 20

1 -10 10

-40 -30 -20 -10 0 10 20 30 40 50

194
Decision Tree Analysis

Decision tree analysis* A diagramming and calculation technique for evaluating the
implications of a chain of multiple options in the presence of uncertainty.

These definitions are taken from the Glossary of Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management
195
Institute Inc., 2017.
 INFLUENCE DIAGRAMS Weather Weather
forecast Condition

• In uncertain circumstances greater the amount of information

better will be the decision.
• Graphically represents alternative decisions.
• Value of information is extremely important concept in
Vacation activity Satisfaction
influence diagram.
• Holiday goer takes best vacation decision in Scenario 3 with
most information than others
Weather Weather
Weather Weather forecast Condition
forecast Condition

Vacation activity Satisfaction Vacation activity Satisfaction

Plan Risk Responses
• A trigger condition signals a risk can develop
Risk • Mudslide
• Team implements a risk response

• A secondary risk can arise as a direct result of

the risk response implementation
Contingency • Dig trench
• Residual risk can remain after risk responses plan
have been implemented

• Have a contingency (fallback) plan ready in

case the primary risk response fails Secondary • Accident
risk
• The contingency reserve (or allowance) is
the budget within the cost baseline that is
allocated for identified risks and their response
Fall back
strategies plan

Ambulance
197
Negative Risk Strategies

Escalate Avoid Transfer Mitigate Accept

198
198
Strategies for negative risks
ESCALATE AVOID TRANSFER ACCEPT MITIGATE
• Enterprise factor • Could increase • Risk doesn’t go • Passive • Reduce
( example: risk levels beyond away, Its managed • Low prob/ impact probability
compensation tolerance levels by another entity. • (any well known (ex: testing)
exceeds • Ex: Loose soil at • Insurance risk) • Reduce
delegated construction site • AMC • Ex: Risk of delay in impact (ex:
authority ) • Replan & avoid • Contract interface Building
• Or accept with • Acknowledge redundancy)
mitigants or • Find work around if • Do both
combine other it happens.
strategies • Active
• Contingency plan to
develop stub.
• Provide
Contingency
reserve of people,
days and cost.

199
Positive Risk Strategies

Escalate Exploit Enhance Share Accept

200
200
Strategies for Positive risks
ESCALATE EXPLOIT ENHANCE ACCEPT SHARE

• Out of project • Maximise • Make the • PASSIVE • Example:

scope (ex: new Probability & opportunity bigger • Allow it to • A project for
benefit not part of Impact • Example: An add happen implementation
project – like a • Ex: Assign most on product to an • Low prob/ and call centre
customer evincing talented resources existing offering – impact support
interest in an for early delivery like a BI software • Ex: An seller
internal product ) and save on time to a core banking response with • Joint Venture
and cost software. no high potential • Outsource
for realization.
• ACTIVE
• Contingency
reserve
• Contingency
plan

201
Contingency Plans

Contingency plan: A risk response strategy developed in advance, before things go

wrong; it is meant to be used if and when identified risks become reality.
Will you wait for a risk
to happen ? No watch Trigger portends an
out for triggers ! imminent risk. Expert
forecast on price rise, or a
good supplier’s tendency to
delay of late !

• Allows a project manager to react quickly and appropriately to the risk event,
mitigating its negative impact or increasing its potential benefits.
• May include a fallback plan for risks with high impact.

202
Guidelines to Determine and Implement Risk Responses

• Influence risk response owners to implement risk response plan

• Validate the continued relevance of strategy and risk response plan

Has the risk

I need help to tell me if profile of the
the risk response plan’s project changed ?
still relevant ?

This Photo by Unknown Author is

licensed under CC BY-NC

203
End of Lesson 3

204
RISK BURN DOWN CHART

RISK PROB % SIZE OF LOSS RISK EXPOSURE

(DAYS) (DAYS)

Back up restore may require third party products 50 % 20 10

Lack of production data will hamper validation by customer 40 % 20 8

Stakeholder may not be available for validating the design document 10 % 10 1

which may limit our ability to make timely release of the new feature

Customer team may require more end user documentation than 10 % 10 1

provided, which may slow down validation

Total 20
 20
RISK EXPOSUE (DAYS) REMAINING

15
ACTUAL BURN DOWN
10

5 TEAM BUDGETED EXTRA TIME IN SPRINT 2

FOR NEW RISKS

Back

1 2 3 4 5 6
DAYS
 SCHEDULING – TRENDS &
EMERGING PRACTICES
VISION

PRODUCT ROAD MAP - BIG PICTURE - EPICS

AGILE RELEASE PL ANNING

PRODUCT VISION DRIVES PRODUCT ROADMAP

PRODUCT ROADMAP DRIVES RELEASE PLANS
RELEASE 1
FEATURES
RELEASE 2
FEATURES
RELEASE 3
FEATURES
RELEASE PLAN ESTABLISHES ITERATIONS RELEASE PLAN
(FEATURES)
Iteratio Iteratio Iteratio Iteratio Iteratio
n n n n n
0 1 2 3 n Back

ITERATION PLANS SCHEDULE FEATURE

DEVELOPMENT ITERATION
ITERATIONPLAN
PLAN (DETAIL ORIENTED ROLLING WAVE)

FEATURE A FEATURE B FEATURE C FEATURE

PRIORITIZED FEATURES DELIVERED BY USER D
TASK: BUSINESS RULES 18
STORIES (ESTIMATED IN STORY POINTS)
HOURS
USER STORY 1 TASK : U.I.PROTOTYPE 4 HOURS
(20 STORY TASK : ACTIVITY DIAGRAM 2
TASKS (ESTIMATED IN HOURS) CREATED TO POINTS ) HOURS
DELIVER USER STORIES TASK: DATA BASE PROC 3
USER STORY
Copyright22023
HOURSInstitute, Inc. All rights reserved.
( Project Management
TASK
5 STORY POINTS)This material is being : REFACTORING
provided as part of a PMI4Workshop.
HOURS
Duration estimates

• History, past data bases

• Activity owner analysis and personal experience
• Experts ( peer review, work package managers, consultants, professional organizations)
• Parametric with complexity estimates:
• Code measurements such as Function point counts or Lines of code
• Complexity factors and learning curve
• Any unclear project specifications
• Any likely delays because of activity sequencing of predecessors
• Technical complexity
• Expectations of probable scope changes
• Requirements for unusually high reliability or performance
• Requirements for innovation or research

back

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
Question
The project schedule shows a duration of 47 weeks
Customer has advanced the constraint by 5 weeks.
You are asked to consider crashing the schedule appropriately
There are 5 activities on the critical path that can be crashed
Current duration Weeks saved by crashing Cost of crashing
A 8 2 4000
F 9 4 16000
J 12 1 2000
K 5 2 2000
R 8 3 9000

ANSWERS : Crashing required only for 5 weeks

Option A A+J+K 4000+2000+2000 8000
Option B F+J 16000 + 2000 18000
Option C A+R 4000+9000 13000
Option D K+R 2000+9000 11000
ANSWER: OPTION A IS THE LEAST EXPENSIVE
Question
Which is the best course of action you would prefer when there is a problem activity in a
Critical Path and the customer has advanced delivery date.

a) See if Finish to Start activities can be implemented with lead.

b) Time lost due to schedule slippages can be recovered from newer opportunities
to compress schedule during ensuing periods. You know this worked in the past.

c) Assign resources from noncritical path to problem activity

d) Negotiate for delivering critical priority functionalities as scheduled and the

remaining deliverables in a staggered way.