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Chapter 5: Planning Projects, Part II (Quality, Human Resource, Communications, Risk, and Procurement Management). Introduction to Project Management. Learning Objectives.

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Introduction to Project Management

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    1. Chapter 5:Planning Projects, Part II(Quality, Human Resource, Communications, Risk, and Procurement Management) Introduction to Project Management

    2. Learning Objectives • List several planning tasks and outputs for project quality, human resource, communications, risk, and procurement management. • Discuss the project quality management planning tasks, and explain the purpose and contents of a quality management plan, quality metrics, and quality checklists. • Explain the project human resource management planning tasks, and create a project organizational chart, responsibility assignment matrix, resource histogram, and staffing management plan.

    3. Learning Objectives (continued) • Describe the project communications management planning tasks, and describe the importance of using a project communications management plan and project Web site. • Discuss the project risk management planning tasks, and explain how a risk management plan, a probability/impact matrix, a risk register, and risk-related contractual agreements are used in risk management planning. • Discuss the project procurement management planning tasks, and explain a make-or-buy analysis, procurement management plans, requests for proposal/quote, contract statements of work, and supplier evaluation matrices.

    4. Introduction • Some project managers neglect planning in the quality, human resource, communications, risk, and procurement management knowledge areas. • It is important to skillfully plan allknowledge areas because they are all crucial to project success.

    5. Nine project management knowledge areas 5

    6. Project Management Process Groups and Knowledge Area Mapping

    7. Project Management Process Groups and Knowledge Area Mapping (continued)

    8. Planning Outputs for Project Quality, Human Resource, Communications, Risk, and Procurement Management

    9. Planning Outputs for Project Quality, Human Resource, Communications, Risk, and Procurement Management

    10. Project Quality Management Planning Tasks • Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. • Key outputs produced as part of project quality management include as outputs: (1) quality management plan, (2) quality metrics, and (3) quality checklists.

    11. What Is Quality? • The International Organization for Standardization (ISO) defines quality as “the degree to which a set of inherent characteristics fulfill requirements” (ISO9000:2000). • Other experts define quality based on conformance to requirements and fitness for use. • Conformance to requirements means that the project’s processes and products meet written specifications. • Fitness for use means that a product can be used as it was intended.

    12. Quality Planning and the Quality Management Plan • Quality planning includes identifying which quality standards are relevant to the project and how best to satisfy those standards. • It also involves designing quality into the products of the project as well as the processes involved in managing the project. • Like other plans, the size and complexity of quality management plans varies to meet project needs.

    13. Sample Quality Management Plan

    14. Quality Metrics • A metricis a standard of measurement. • They allow organizations to measure their performance in certain areas and to compare them over time or with other organizations. • Examples of common metrics used by organizations include failure rates of products produced, availability of goods and services, and customer satisfaction ratings.

    15. Sample Quality Metrics

    16. Exercise • Fill the template for your own project.

    17. Quality Checklists • A checklistis a list of items to be noted or consulted. • It helps project teams verify that a set of required topics or steps has been covered or performed. • A single project can have many different checklists, such as for: • Interviewing project team members • Selecting suppliers • Reviewing important documents • Ensuring a room is ready for training

    18. Sample Quality Checklist

    19. Exercise • Fill the template for your own project.

    20. Planning Outputs for Project Quality, Human Resource, Communications, Risk, and Procurement Management

    21. Project Human Resource Management Planning Tasks • Many corporate executives have said, “People are our most important asset.” People determine the success and failure of organizations and projects. • Project human resource management is concerned with making effective use of the people involved with a project. • Key outputs produced as part of project human resource management planning include as outputs a (1) project organizational chart, a (2) responsibility assignment matrix, a (3) resource histogram, and a (4) staffing management plan. • Other topics, such as motivation and dealing with people problems, are discussed in Chapter 6 (Execution).

    22. Project Organizational Charts • Similar to a company’s organizational chart, a project organizational chart is a graphic representation of how authority and responsibility is distributed within the project. • The size and complexity of the project determines how simple or complex the organizational chart is.

    23. Sample Project Organizational Chart

    24. Exercise • Fill the template for your own project.

    25. Responsibility Assignment Matrices • A responsibility assignment matrix (RAM) is a matrix that maps the work of the project as described in the work breakdown structure (WBS) to the people responsible for performing the work. • For smaller projects, it is best to assign WBS activities to individuals; for larger projects, it is more effective to assign the work to organizational units or teams. • RACI charts are a type of RAM that show Responsibility, Accountability, Consultation, and Informed roles for project stakeholders.

    26. Sample RACI Chart

    27. Exercise • Fill the template for your own project.

    28. Resource Histograms • A resource histogram is a column chart that shows the number of resources required for or assigned to a project over time. • In planning project staffing needs, senior managers often create a resource histogram in which columns represent the number of people needed in each skill category. By stacking the columns, you can see the total number of people needed each month. • After resources are assigned to a project, you can view a resource histogram for each person to see how his/her time has been allocated.

    29. Sample Resource Histogram

    30. Staffing Management Plans • A staffing management plan describes when and how people will be added (or hired) to and removed (or fired) from a project. • It describes the types of people needed to work on the project, the numbers needed for each type of person each month, and how these resources will be acquired, trained, rewarded, and reassigned after the project.

    31. Sample Staffing Management Plan

    32. Planning Outputs for Project Quality, Human Resource, Communications, Risk, and Procurement Management

    33. Project Communications Management Planning Tasks • Many experts agree that the greatest threat to the success of any project is a failure to communicate. • Many project managers say that 90% of their job is communicating, yet many project managers fail to take the time to plan for project communications. • Project communications management involves generating, collecting, disseminating, and storing project information. • Key outputs include a (1) communications management plan and a (2) project Web site.

    34. What Went Wrong? An amusing example of miscommunication comes from a director of communications at a large firm: I was asked to prepare a memo reviewing our company’s training programs and materials. In the body of the memo in one of the sentences, I mentioned the “pedagogical approach” used by one of the training manuals. The day after I routed the memo to the executive committee, I was called into the HR director’s office, and told that the executive vice president wanted me out of the building by lunch. When I asked why, I was told that she wouldn’t stand for perverts (pedophiles?) working in her company. Finally, he showed me her copy of the memo, with her demand that I be fired—and the word “pedagogical”—circled in red. The HR manager was fairly reasonable, and once he looked the word up in his dictionary and made a copy of the definition to send back to her, he told me not to worry. He would take care of it. Two days later, a memo to the entire staff came out directing us that no words that could not be found in the local Sunday newspaper could be used in company memos. A month later, I resigned. In accordance with company policy, I created my resignation memo by pasting words together from the Sunday paper.* Projectzone, “Humor” ( (2004).

    35. Communications Management Plans • Because project communication is so important, every project should include a communications management plan—a document that guides project communications. • The plan will vary with the needs of the project, but some type of written plan should always be prepared and address the following items: • Stakeholder communications requirements. • Information to be communicated, including format, content, and level of detail. • Identification of who will receive the information and who will produce it. • Suggested methods or guidelines for conveying the information. • Description of the frequency of communication. • Escalation procedures for resolving issues. • Revision procedures for updating the communications management plan. • A glossary of common terminology used on the project.

    36. Sample Communications Management Plan

    37. Sample Communications Management Plan (continued)

    38. Project Web Sites • Project Web sites provide a centralized way of delivering project documents and other communications. • Some project teams also create blogs—easy-to-use journals on the Web that allow users to write entries, create links, and upload pictures, while allowing readers to post comments to particular journal entries. • Project teams can develop project Web sites using Web-authoring tools, such as Microsoft FrontPage or Macromedia Dreamweaver; enterprise project management software, if available; or a combination of the two approaches. • Part of the Web site might be open to outside users, whereas other parts might be accessible only by certain stakeholders. • It is important to decide if and how to use a project Web site to help meet project communications requirements.

    39. Sample Project Web Site

    40. Exercise • You can develop a website for your project.

    41. Planning Outputs for Project Quality, Human Resource, Communications, Risk, and Procurement Management

    42. Project Risk Management Planning • PMI (Project Management Institute) defines a project riskas an uncertainty that can have a negative or positive effect on meeting project objectives. • Key outputs of project risk management planning include a (1) risk management plan, a (2) probability/impact matrix, a (3) risk register, and (4) risk-related contractual agreements.

    43. Risk Management Plans • A risk management plan documents the procedures for managing riskthroughout the life of a project. • The general topics that a risk management plan should address include the methodology for risk management, roles and responsibilities, budget and scheduleestimates for risk-related activities, risk categories, probabilityand impact matrices, and risk documentation.

    44. Other Risk Plans • Contingency plans are predefined actions that the project team will take if an identified risk event occurs. • Fallback plans are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective; sometimes called contingency plans of last resort. • Contingency reserves or contingency allowances are funds held by the project sponsor that can be used to mitigate cost or schedule overruns if unknown risks occur.

    45. Special Monitor to Help Manage Schedule Delays

    46. Sample Risk Management Plan

    47. Risk Events and Probability/Impact Matrices • Risk events refer to specific, uncertain events that may occur to the detriment or enhancement of the project. • Negative risk eventsinclude the performance failure of a product produced as part of a project, delays in completing work as scheduled, increases in estimated costs, supply shortages, litigation against the company, and strikes. • Positive risk eventsinclude completing work sooner than planned or at an unexpectedly reduced cost, collaborating with suppliers to produce better products, and obtaining good publicity from the project. • You can chart the probability and impact of risk events on a matrix.

    48. Sample Probability/Impact Matrix

    49. Exercise • Fill the template for your own project.

    50. Risk Registers • A risk register is a document that contains the results of various risk management processes and is often displayed in a table or spreadsheet format. • It is a tool for documenting potential risk events and related information, including: • An identification number for each risk event • A rank for each risk event (usually high, medium, or low) • The name of the risk event • A description of the risk event • The category under which the risk event falls • The root cause: The real or underlying reason a problem occurs • Triggers: Indicators or symptoms of actual risk events • Potential responses to each risk event • The risk owner, or person who will own or take responsibility • The probability of the risk event occurring • The impact to the project if the risk event occurs • The status of the risk event