3. Project Management
Project Management Definition PMBOK.
A project is temporary in that it has a defined
beginning and end in time, and therefore defined
scope and resources.
Project management, is the application of
knowledge, skills, tools, and techniques to project
activities to meet the project requirements.
4. Project Management five groups
Project management processes fall into five
Monitoring and Controlling
5. Project Management Areas
Project management knowledge draws on ten areas:
6. Project Management Framework
The project lifecycle provides guidance on the common stages and steps which
apply to all projects. The aim is to establish a common framework for the
management of projects.
7. Project Control Cycle
The project lifecycle describes what needs to be done at each stage and the
project control cycle describes how each stage in planned and managed.
8. Project Management Vs Operations
Projects require project management whereas operations requires business process
management or operations management.
Project Manager Operational Manager
Role ends with project Routine
Temporary team Stable organisation
Many different skills Specialist skills
Work not done before Work repeatable
Time, cost and scope constraints Annual planning cycle
Difficult to estimate time and budget Budgets set and fixed events
9. Project Management Challenges
Misalignment between projects and their business objectives: The purpose of
a project is to advance one or more business objectives. Most projects start out
closely aligned with these objectives, but gaps inevitably appear. Projects drift
and business objectives change and evolve. Without redirection, projects and
deliverables end up failing to meet expectations.
Late or delayed projects: Late projects wreak havoc, delaying the time at which
a company can start reaping business benefits, thwarting precise payback
period calculations and disrupting the long term return on investment.
Dependency conflicts: Most projects are interrelated, sharing people,
equipment, resources and deliverables. These dependencies mean that a single
project delay has a significant ripple effect on related projects, disrupting
schedules, causing resource conflicts and even triggering expensive
contingencies, in order to minimise risks.
10. Project Management Challenges
Execution difficulties: Problematic execution wastes resources, time and
opportunities, diverts management attention and hinders project delivery.
Overlapping and redundant projects: Overlapping projects are responsible for
major inefficiencies and wasted budgets, time and resources. At their worst,
they undermine each other’s progress and potential benefits. Redundant and
duplicative projects are also unprofitable, increasing costs, prolonging
schedules and diverting resources from more deserving projects.
Resource conflicts: Companies rarely have sufficient resources to staff all
projects concurrently. As such, projects compete against each other for
resources, and people are often assigned to several projects at the same time.
Those with special expertise of scarce skills may be in high demand, causing
11. Project Management Challenges
Unrealised business value: A project is a means to an end. Ultimately, every
project generates deliverables that the company uses to derive business value.
When those deliverables arrive late or are incomplete, the business loses
opportunities – whether to earn revenues, acquire customers or perhaps fix a
Diffused decision making: Many executives are unable to obtain the right
information at the right time to effectively understand the present position of
the business in order to communicate unwelcome surprises and/or
communicate potential opportunities before the competition.
Fragmentation: Fragmented planning and resource processes and tolls lead to
an inability to systematically communicate and fine tune multiple project
scenarios, resulting in regular unforeseen slippages and problems.
12. Project Management Challenges
Inadequate Skills for the Project – A project sometimes requires skills that the
project's contributors do not possess. Project manager can help a project leader
determine the needed competencies, assess the available team members and
recommend training, outsourcing or hiring additional staff.
Lack of Accountability –Failure to continuously monitor and communicate
project milestones in real time, and budget performance, dilutes project
accountability and responsibility.
14. Project Management 5 Phases-PMBOK
1. Project Initiation
Goal of this phase is to define the project at a broad level
This phase usually begins with a business case, If feasibility testing
needs to be done, this is the stage of the project in which that will be
Project charter or a project initiation document (PID) that outlines the
purpose and requirements of the project. It include business needs,
stakeholders, and the business case
15. Project Management 5 Phases-PMBOK
2. Project Planning
This phase typically begins with setting goals
Specific – To set specific goals, answer the following questions: who,
what, where, when, which, and why.
Measurable – Create criteria that you can use to measure the success of
Attainable – Identify the most important goals and what it will take to
Realistic – You should be willing and able to work toward a particular
Timely – Create a timeframe to achieve the goal.
During this phase, the scope of the project is defined and a project
management plan is developed. It involves identifying the cost, quality,
available resources, and a realistic timetable. The project plans also includes
establishing baselines or performance measures. These are generated using
the scope, schedule and cost of a project. A baseline is essential to
determine if a project is on track.
16. Project Management 5 Phases-PMBOK
3. Project Execution
• A “kick-off” meeting usually marks the start of the Project Execution phase where the teams
involved are informed of their responsibilities.
Tasks completed during the Execution Phase include:
• While the project monitoring phase has a different set of requirements, these two
phases often occur simultaneously
• Develop team
• Assign resources
• Execute project management plans
• Procurement management if needed
• PM directs and manages project execution
• Set up tracking systems
• Task assignments are executed
• Status meetings
• Update project schedule
• Modify project plans as needed
• While the project monitoring phase has a different set of requirements, these two phases often
17. Project Management 5 Phases-PMBOK
4. Project Performance/Monitoring
• This Phase is for measuring project progression and performance and ensuring that
everything happening aligns with the project management plan.
• Project managers will use key performance indicators (KPIs) to determine if the project is on
• A PM will typically pick two to five of these KPIs to measure project performance:
• Project Objectives: Measuring if a project is on schedule and budget is an
indication if the project will meet stakeholder objectives.
• Quality Deliverables: This determines if specific task deliverables are being
• Effort and Cost Tracking: PMs will account for the effort and cost of
resources to see if the budget is on track. This type of tracking informs if a
project will meet its completion date based on current performance.
• Project Performance: This monitors changes in the project. It takes into
consideration the amount and types of issues that arise and how quickly
they are addressed. These can occur from unforeseen hurdles and scope
• During this time, PMs may need to adjust schedules and resources to ensure the
project is on track.
18. Project Management 5 Phases-PMBOK
This phase represents the completed project. All stockholder meeting is held and
announcement of project closure is made. Once a project is complete, a PM will often hold
a meeting – sometimes referred to as a “post mortem” – to evaluate what went well in a
project and identify project failures. This is especially helpful to understand lessons
learned so that improvements can be made for future projects.
PM will perform a final project budget and prepare a final project report for Knowledge
Management for future similar type projects is done. Finally, PMO Team will need to
collect all project documents and deliverables and store them in a single place.
Close Project or Phase finalizes all activities across all process groups to formally
close-out the project or project phase.
A project manager must get a formal acceptance of the project. He should issue a
final report that shows the project is successful. Issue the final lessons learned.
Finally, index and archive all the project records.
A few steps to be done by project manager while he is confirming to closing the
Confirming that the work is completed as per the baseline
Completing closure formalities
Gaining final acceptance on the product
19. Project Lifecycle characteristics
Project Life Cycle divides the project into phases that provide
better management control and the appropriate links to the
ongoing operations of the organization and defines the
beginning and end of the project.
Some important characteristics of Project Life Cycle are:
Defines the beginning and end of the project.
Deliverables usually approved before work starts on
the next phase.
Sometimes a subsequent phase is begun prior to
approval of the previous phase. This is called fast
Defines technical work and implementers.
Cost and staffing levels are low at the start, higher
towards the end, and drop as project closes.
Probability of project success is low at the start of the
project and gets progressively higher as the project
Cost of changes and of error correction generally
increases as the project continues.
20. Project Management Triple Constraints
• Cost, time and scope, These three factors
(commonly called 'the triple constraint') are
represented as a triangle.
• Projects must be delivered within cost
• Projects must be delivered on time
• Projects must meet the agreed scope – no
more, no less
• Projects must also meet customer quality
22. Integrated Change Control
• In the Perform Integrated Change Control, changes accepted or rejected basis
their evaluation and impact. Whenever a change is requested, it is advisable to
identify the impact of proposed change on project cost, quality, risks,
resources, scope, and also on customer satisfaction.
• Two pre-requisites to be measured for impact of change:
• A realistic project management plan to be used as baseline
• A complete product and process scope (as applicable)
• Since changes are inevitable, project manager should work to prevent the
root causes of changes whenever possible. Most cases indicate improper
planning of the project results in change requests. Although changes can
happen, they are not encouraged and the handling of possible changes must be
planned, managed and controlled.
23. Integrated Change Control
• Project manager should:
Identify all requirements at the earliest
Comprehensively identify all the risks related to the project
Establish time and cost factors
Establish Change Management Process
Follow the change management process
Have required templates in place to create change requests
Identify clear roles and responsibilities amongst stakeholders to approve
If number of changes become disproportionate, revaluate the business
Consider terminating a project (if required) if the number of changes are
Ensure only approved changes are added to the baselines
24. Integrated Change Control
Changes can have two categories
•Impact the project management plan, baselines, policies and procedures,
charter, contract, or statement of work
•Does not impact any of above.
Change Control Board
Review and analysis of change requests is done by the board. The board may
either approve or reject a change request. Board can include multiple
stakeholders including customers, experts, sponsors, functional managers,
project manager, etc.
25. Integrated Change Control
Process for Making Changes
It is extremely important to prevent the root cause that makes the changes happen. Managing
changes comes later, the prior thing to do for a project manager is to eliminate the need for changes.
The next step is to identify change. A change originator could be the project manager, the sponsor,
the team, the management, the customer or other stakeholders. The project manager can be
proactive to identify changes from all these sources. If he is able to identify the changes early, it will
decrease the impact of the changes. Identify the impact of the change is the third step. The fourth
step is to Create a Change Request. The process of making change should follow a change
management plan. The next step (fifth) is to perform integrated change control. The Perform
Integrated Change Control seeks answer to the key question: How will the change affect the other
project limitations? To resolve this, the first thing to be done is to Assess The Change. The next step is
to Look for Options. The third is to check if the change is approved or rejected and the last point is to
document the change in change control system.
Close Project or Phase
Close Project or Phase finalizes all activities across all process groups to formally close-out the project
or project phase.
26. Scope Management
‘Scope’ is the way to define what your project will deliver. Scope management is all about making
sure that everyone is clear about what the project is for and what it includes. It covers collecting
requirements and preparing the work breakdown structure.
The project scope management processes are:
• Plan scope management
• Collect requirements
• Define scope
• Create Work Breakdown
• Validate scope
• Control scope.
27. Scope Management
WBS : In scope management, project deliverables are subdivided into smaller and
more manageable components until the work and deliverables are defined to the work
package level. This is called as decomposition.
28. Time Management
Time and Cost are two sides of Coin. Good time management enables you to
work smarter – not harder – so that you get more done in less time, even
when time is tight and pressures are high. Failing to manage your time
damages your effectiveness and causes stress
• Time has least amount of flexibility and it passes no matter
• Much of Project Manager time taken by external communication
• Schedule issues are main reason for conflicts in projects
29. Time Management
Definition of activities. The project team needs to list the
activities and tasks that should be done during the project
life cycle so that they can be used for scheduling. Along with
the activities and action items, the methods to be used
during the processes should also be outlined.
Sequencing of activities. During this time, project managers
need to precede documents and map task dependencies.
The team may use some tools such as precedence
diagramming method and other techniques for
diagramming dependencies and in the end, produce a
30. Time Management
Estimating resources. Resources include people, tools and
equipments that are needed to execute various project
activities to produce the deliverables. A specialist
determines the type of resources required and the quantity
needed. Each activity resource needs to be estimated and
for this, an expert judgment is required.
Estimating activity durations. The project manager
estimates the time needed to complete an activity in
accordance to the scope and resource availability. To
estimate time, experts use formulas such as the PERT
(Program Evaluation Review Technique). Accuracy is
important to develop an exact schedule.
31. Time Management
Developing project schedule. There may be a need for resource
levelling to prevent over allocation of resources. During this stage,
the project team plots the start and end dates for each activity as
well as the entire project’s start and completion dates. The team
may use activity sequences, duration and resource estimation as
well as project schedule constraints to achieve an accurate
Controlling the project schedule. Since processes change, so does
the schedule. There is a need to create effective scheduling
processes so that it becomes manageable so that when there is a
need to change, it can be easily modified. A schedule’s
manageable components can help minimize the need for changes.
The schedule control process explains the project status
monitoring so that it is easy to find changes in the schedule and
the earlier it happens the more ways one can control the schedule
to let the team meet the planned schedule.
32. Time Management
PERT estimation technique
PERT (Program Evaluation and Review Technique) is one of the successful and
proven methods among the many other techniques, such as, CPM, Function Point
Counting, Top-Down Estimating, WAVE etc. There are three estimation times
involved in PERT; Optimistic Time Estimate (TOPT), Most Likely Time Estimate
(TLIKELY), and Pessimistic Time Estimate (TPESS).BETA probability distribution is
what works behind PERT.
The expected completion time (E) is calculated as below:
E = (TOPT + 4 x TLIEKLY + TPESS) / 6At the same time,
the possible variance (V) of the estimate is calculated as below:
V = (TPESS - TOPT)^2 / 6^2
33. Time Management
Now, following is the process we follow with the two values:
• For every activity in the critical path, E and V are calculated.
• Then, the total of all Es are taken. This is the overall expected completion time for the project.
• Now, the corresponding V is added to each activity of the critical path. This is the variance for
the entire project. This is done only for the activities in the critical path as only the critical path
activities can accelerate or delay the project duration.
• Then, standard deviation of the project is calculated. This equals to the square root of the
• Now, the normal probability distribution is used for calculating the project completion time with
the desired probability.
34. Cost Management
Cost management is all about handling the project’s finances. The
big activity in this knowledge area is preparing your budget which includes
working out how much each task is going to cost and then determining your
project’s overall budget forecast. And, of course, it covers tracking the
project’s expenditure against that budget and making sure that you are still
on track not to overspend
Resource Planning for cost estimating: Work Breakdown Structures (WBS)
and historical information of comparable projects can be used to define
which physical resources are needed. Once the resource types and quantities
are known the associated costs can be determined. Several cost estimating
technique can be applied to predict how much it will cost to perform the
35. Cost Management
Cost Budgeting: The cost estimate forms together with a project schedule
the input for cost budgeting. The budget gives an overview of the periodic
and total costs of the project. The cost estimates define the cost of each
work package or activity, whereas the budget allocates the costs over the
time period when the cost will be incurred. A cost baseline is an approved
time-phased budget that is used as a starting point to measure actual
Cost control: Cost control is concerned with measuring variances from the
cost baseline and taking effective corrective action to achieve minimum
costs. Procedures are applied to monitor expenditures and performance
against the progress of a project. All changes to the cost baseline need to be
recorded and the expected final total costs are continuously forecasted.
When actual cost information becomes available an important part of cost
control is to explain what is causing the variance from the cost baseline.
Based on this analysis, corrective action might be required to avoid cost
36. Cost Management
Cost Technique Description
Expert Judgment Expert judgment uses the experience and knowledge of
experts to estimate the cost of the project. This technique
can take into account unique factors specific to the project.
However, it can also be biased.
Analogous estimating uses historical data from similar
projects as a basis for the cost estimate. The estimate can be
adjusted for known differences between the projects. This
type of estimate is usually used in the early phases of a
project and is less accurate than other methods.
37. Cost Management
Cost Technique Description
Parametric estimating uses statistical modelling to develop a
cost estimate. It uses historical data of key cost drivers to
calculate an estimate for different parameters such as cost
and duration. For example, square footage is used in some
Bottom-up estimating uses the estimates of individual work
packages which are then summarized or "rolled up" to
determine an overall cost estimate for the project. This type of
estimate is generally more accurate than other methods since
it is looking at costs from a more granular perspective.
38. Cost Management
Three-point estimates originated with the Program Evaluation
and Review Technique (PERT).
Reserve analysis is used to determine how much contingency
reserve, if any, should be allocated to the project. This funding
is used to account for cost uncertainty.
Cost of Quality (COQ) includes money spent during the project
to avoid failures and money spent during and after the project
due to failures. During cost estimation, assumptions about the
COQ can be included in the project cost estimate.
39. Cost Management
Project management estimating software includes cost
estimating software applications, spreadsheets, simulation
applications, and statistical software tools. This type of
software is especially useful for looking at cost estimation
Vendor analysis can be used to estimate what the project
should cost by comparing the bids submitted by multiple
41. Techniques of Determine Budget
It is the summation of all the individual costs.
Tools and technique of estimate costs analogous
and parametric estimates can be used to help
determine total project costs. Actual costs from
previous projects of similar size, scope, and
complexity are used to estimate the costs for the
Contingency and Management reserve:
Contingency reserve is known to the project
manager and the team. It is assigned for known
risks in the project. Management reserves are kept
for any unknown risks.
The diagram clearly states the difference between
contingency reserve and management reserve
42. Cost Management
You can control costs by applying techniques using the budget,
schedule, baseline and earned value. As the project progresses according to
the schedule, the costs you incur have to match the scheduled costs
according to your baseline. As you complete an activity, its cost has to match
its budget. When your earned value identifies a given percent completion
for the project, you must have spent that percentage of your total budget.
For example, if you are eight months through a year long, $100,000
project, your baseline says you should have spent 65 percent of your
budget, your earned value indicates that you have completed two thirds of
your work and you have spent $65,000, everything matches and your
project is on track. If a value diverges, you have to investigate further where
the problem lies and possibly take corrective action.
43. Quality Management
Project quality management includes the processes and activities required
to ensure that the project will satisfy the needs for which it is undertaken. At
its most basic level, quality means meeting the needs of customers. This is
also known as "fit for use."
• Quality Planning
• Quality Assurance
• Quality control
• How poor Quality affects the project ?Who should be responsible for
44. Quality Management
• Project planning : Identifying which quality standards are relevant to the project
and determining how to satisfy them (panning). Plan Quality involves identifying
the quality requirements for both the project and the product and documenting
how the project can show it is meeting the quality requirements. The outputs of
this process include a Quality Management Plan, quality metrics, quality
checklists and a Process Improvement Plan. The quality requirements are defined
during the quality planning process. They include both project processes and
• Quality Assurance
Quality Assurance is used to verify that the project processes are sufficient so that
if they are being adhered to the project deliverables will be of good
quality. Process checklists and project audits are two methods used for project
• Quality control
Quality control verifies that the product meets the quality requirements. Peer
reviews and testing are two methods used to perform quality control. The results
will determine if corrective action is needed.
45. Project Management and Quality
Both disciplines recognizes the importance of
• Customer Satisfaction
• Prevention over Inspection
• Continuous Improvement
• Customer satisfaction is a key measure of a project's quality. It's important to keep
in mind that project quality management is concerned with both the product of
the project and the management of the project. If the customer doesn't feel the
product produced by the project meets their needs or if the way the project was
run didn't meet their expectations, then the customer is very likely to consider the
project quality as poor, regardless of what the project manager or team thinks. As
a result, not only is it important to make sure the project requirements are met,
managing customer expectations is also a critical activity that you need to handle
well for your project to succeed.
46. Project Management and Quality
• Prevention over Inspection
The Cost of Quality (COQ) includes money spent during the project to
avoid failures and money spent during and after the project because of
failures. These are known as the Cost of Conformance and the Cost of
The cost of preventing mistakes is usually much less than the cost of
• Continuous Improvement
Continuous improvement is a concept that exists in all of the major
quality management approaches such as Six Sigma and Total Quality
Management (TQM). In fact, it is a key aspect of the last
concept, prevention over inspection.
Continuous improvement is simply the ongoing effort to improve your
products, services, or processes over time. These improvements can be
small, incremental changes or major, breakthrough type changes.
47. Project Management and Quality
Cost of Conformance Cost of Non-conformance
Prevention Costs Internal Failure Costs
•Document Processes •Scrap
•Time To Do It Right
Appraisal Costs External Failure Costs
•Testing •Warranty Work
•Destructive Testing Loss •Liabilities
•Inspections •Lost Business
48. Quality Management
What is Quality Assurance?
American Society for Quality (ASQ) definition
• The planned and systematic activities implemented in a quality system so
that quality requirements for a product or service will be fulfilled.
• Simple term quality assurance as the activities and management
processes that are done to ensure that the products and services the
project delivers are at the required quality level. It is process driven and
focused on the development of the product or delivery of the service.
49. Quality Management
There are many tools and techniques that form the basis of the key quality
Some of these mentioned below
• Cost-Benefit Analysis
• Cost of Quality (COQ)
• Control Charts
• Design of Experiments (DOE)
• Statistical Sampling
• Flow Charting, Run Chart
• Quality Management Methodologies (i.e. Six Sigma, CMMI, etc)
• Cause and Effect Diagrams (i.e. Fishbone Diagram)
• Pareto chart
• Scatter Diagram
50. Quality Management
Quality Assurance Vs Quality Control
One of the key quality assurance principles that differentiates it from
quality control is that quality assurance is performed during the project
to help make sure the product meets the quality standards. For example,
creating a Project Quality Management Plan, following a quality
assurance process, and performing audits.
Quality control, on the other hand, evaluates whether the resulting
product produced by the project met the quality standards. Quality
control activities are performed after a product has been created to
determine if it meets the quality requirements. The results of the quality
control process are used by the quality assurance process to determine if
any changes are needed to the quality assurance process.
51. Quality Management
What is Quality Control?
American Society for Quality (ASQ) definition
Quality Control consists of the observation techniques and activities used
to fulfil requirements for quality.
You can think of quality control as the activities that are used to evaluate
whether your product or service meets the quality requirements specified
for your project. It's important to note that project quality control is
performed throughout the project.
52. Quality Management
Quality Control Tools & Techniques
• Cause and Effect Diagram (i.e. Fishbone Diagrams )
• Control Chart
• Flow Chart
• Parteo Chart
• Run Chart
• Scatter Diagram
• Statistical Sampling
Quality control tools and techniques can help you in three ways
• Confirm that your project is meeting the quality standards
• Provide a basis for corrective action
• Provide feedback about your quality assurance process
53. Quality Management
Characteristics of control chart : If a single
quality characteristic has been measured or
computed from a sample, the control chart
shows the value of the quality characteristic
versus the sample number or versus time. In
general, the chart contains a centre line that
represents the mean value for the in-control
process. Two other horizontal lines, called the
upper control limit (UCL) and the lower control
limit (LCL), are also shown on the chart. These
control limits are chosen so that almost all of
the data points will fall within these limits as
long as the process remains in-control.
Chart demonstrating basis of control chart
54. Quality Management
The general formula for the probability density
function of the normal distribution is
μ is the location parameter
σ is the scale parameter
The case where μ = 0 and σ = 1 is called
the standard normal distribution.
The equation for the standard normal distribution is
The general form of probability functions can be
expressed in terms of Standard deviation.
Distribution totally characterized by Mean and
The following is the plot of the
standard normal probability density
55. Quality Management
80% of the outputs/problems result from 20% of the
inputs/work which is 80/20 Rule and the Pareto
A Pareto Diagram has several key benefits.
• Helps the project team focus on the problems that will
have the greatest impact
• Displays in order of importance the problems that
matter in a simple, visual format
• Provides an easy way to compare before and after
snapshots to verify that any process changes had the
The chart lists the inputs along the horizontal axis in
descending order of output frequency. The left vertical
axis measures the number or frequency of the output
for each input and is charted using a bar graph. The
right vertical axis measures the cumulative percentage
of the outputs and is charted using a line graph
There are seven categories of Project Issues. It is evident that
most of the issues, 42% to be exact, are related to
"Installation." It is also very easy to see that three categories
account for 79% of the issues: Installation, Software Faults,
Based on this Pareto analysis, if you focused your efforts on
addressing just the Installation issues, you would have the
potential to cut your total issues by more than 40%
56. Quality Management
Fishbone Diagram (Ishikawa diagram )- Cause and Effect
Analysis : A fishbone diagram is a tool that can help you perform
a cause and effect analysis for a problem you are trying to solve.
• Draw Problem Statement: You want to make sure that you define
the problem correctly and that everyone agrees on the problem
• Draw Major Cause Categories
• the major cause categories on the left hand side and connect
them to the "backbone" of the fishbone chart
• Brainstorm Causes: Brainstorming the causes of the problem is
where most of the effort in creating your Ishikawa diagram takes
• Categorize Causes : Start to place them in the appropriate
category on the diagram
• Determine Deeper Causes : Each cause on the chart is then
analyzed further to determine if there is a more fundamental
cause for that aspect
• Identify Root Causes :Identifying the root causes of the problem
can be done in several ways...
• Look for causes that appear repeatedly
• Select using group consensus methods
• Select based on frequency of occurrence
Fishbone diagrams are an excellent way to
explore and visually depict the causes of a
problem. They enable the root causes of a
problem to be determined. This will help
you be more effective by focusing your
actions on the true causes of a problem
and not on its symptoms.
57. Statistical Sampling
sampling is concerned with the selection of a subset
of individuals from within a Statistical population to
estimate characteristics of the whole population. Two
advantages of sampling are that the cost is lower and
data collection is faster than measuring the entire
Different type of sampling like Simple Random
Sampling ,Stratified Sampling etc are used in
58. Quality Gurus
Edward Deming :
PDCA (plan–do–check–act or plan–do–check–adjust) is an
iterative four-step management method used in business for the
control and continual improvement of processes and products. It is
also known as the Deming cycle or plan–do–study–act (PDSA).
Another version of this PDCA cycle is OPDCA. The added "O" stands for
observation or as some versions say "Grasp the current condition.“
• Plan: Design a consumer research methodology which will inform
business process components.
• Do: Implement the plan to measure its performance.
• Check: Check the measurements and report the findings to the
• Act/Adjust: Draw a conclusion on the changes that need to be made
and implement them.
Deming’s other chief contribution came in the form of his 14 Points for
Management, which consists of a set of guidelines for managers
looking to transform business effectiveness.
59. Quality Gurus
The Juran Quality Trilogy
Juran developed an approach for cross-functional management that
comprises three legislative processes for cost of poor quality.
Quality Planning, Quality Control, Quality Improvement
Three Steps to Progress
Juran also introduced the Three Basic Steps to Progress, which, in his
opinion, companies must implement if they are to achieve high
• Accomplish improvements that are structured on a regular basis
with commitment and a sense of urgency.
• Build an extensive training program.
• Cultivate commitment and leadership at the higher echelons of
Juran also devised ten steps for organizations to follow to attain
60. Quality Management
Crosby's principle, Doing It Right the First Time, was his answer to the quality crisis. He
defined quality as full and perfect conformance to the customers' requirements. The
essence of his philosophy is expressed in what he called the Absolutes of Quality
Management and the Basic Elements of Improvement.
Crosby defined Four Absolutes of Quality Management, which are
The First Absolute: The definition of quality is conformance to requirements
The Next Absolute: The system of quality is prevention
The Third Absolute: The performance standard is zero defects
The Final Absolute: The measurement of quality is the price of non-conformance
Crosby's Zero Defects is a performance method and standard that states that people should
commit themselves to closely monitoring details and avoid errors. By doing this, they move
closer to the zero defects goal.
He also formulated Fourteen Steps to Quality Improvement.
Kaizan, Japanese for "improvement" or "change for the best", refers to philosophy or
practices that focus upon continuous improvement of processes in manufacturing,
engineering, and business management.
63. Project HR Management
Conflict Management Techniques
Conflict situations are an important aspect of the workplace. A conflict is a situation
when the interests, needs, goals or values of involved parties interfere with one
another. A conflict is a common phenomenon in the workplace. Different
stakeholders may have different priorities; conflicts may involve team members,
departments, projects, organization and client, boss and subordinate, organization
needs vs. personal needs. Often, a conflict is a result of perception. Is conflict a bad
thing? Not necessarily. Often, a conflict presents opportunities for improvement.
Therefore, it is important to understand (and apply) various conflict resolution
Methods of Managing conflicts
• Problem solving(Confronting)
64. Project HR Management
People seem to have different wants. This is fortunate, because in markets this
creates the very desirable situation where, because you value stuff that I have
but you don't, and I value stuff that you have that I don't, we can trade in such
a way that we are both happier as a result we need to try to get a handle on
the whole variety of needs and who has them in order to begin to understand
how to design organizations that maximize productivity. Motivation the basic
perspective on motivation looks something like this,
65. Project HR Management
Maslow hierarchy example
Need Home Job
education, religion, hobbies,
training, advancement, growth,
approval of family, friends,
recognition, high status,
belongingness family, friends, clubs
teams, depts, coworkers, clients,
freedom from war, poison,
work safety, job security, health
physiological food water sex Heat, air, base salary
66. Project Risk Management
A risk is event that may happen that could have an unfavourable effect on your project's
The key characteristic of a risk is the uncertainty of its occurrence. Uncertainty is what
differentiates a risk from an issue. A risk has some probability of occurring whereas an issue has
occurred. You can think of an issue as a risk that has materialized.
Risk management is a systematic approach to managing project risk in order to increase the
likelihood of meeting project objectives.
There is a four step process for effective risk management...
• Identify Risks
• Risk Assessment
• Risk Response Development
• Monitor and Control Risks
67. Why Risk Management is Important
• Better Project Decisions
Including risk potential into your project decisions will help you make better
• Set Priorities
Risk probability and risk impact can help you prioritize project tasks.
• Effective Resource Allocation
Understanding which activities have greater risk impact to the project will help you
determine the best places to allocate your resources to meet project objectives.
• Improve Planning
Risk mitigation and contingency planning will make your plans more robust, and
maybe even bullet proof!
• Reduce Project Costs
Managing risks effectively can help your project avoid or minimize costs it may
have otherwise incurred.
• Reduce Your Stress
Risk mitigation and contingency planning will help reduce surprises and keep you
one step ahead. Being proactive will definitely reduce your stress.
Project Risk Management
68. Project Risk Management
Risk analysis is the process of prioritizing risks based on the probability of the risk
occurring and the impact it would have on the project.
There are two primary methods of risk analysis you can use on your project...
• Qualitative Risk Analysis
• Quantitative Risk Analysis
The main difference between qualitative and quantitative risk analysis is that the former
uses a relative or descriptive scale to measure the probability of occurrence whereas
quantitative analysis uses a numerical scale.
For example, a qualitative analysis would use a scale of "Low, Medium, High" to indicate
the likelihood of a risk event occurring.
A quantitative analysis will determine the probability of each risk event occurring. For
example, Risk #1 has an 80% chance of occurring, Risk #2 has a 27% chance of occurring,
and so on.
69. Project Risk Management
A Risk Assessment Matrix (RAM) is a tool to help you determine which risks you need to develop a
risk response for.
The first step in developing a RAM is to define the rating scales for likelihood and impact.
In a qualitative analysis, likelihood or probability is measured using a relative scale. Here's an
example Likelihood Scale and Impact Scale definition. With your rating scales prepared, you can
create a Risk Assessment Matrix to help you categorize the Risk Level for each risk event.
1 Very Low Highly unlikely to occur. May occur in exceptional
2 Low Most likely will not occur. Infrequent occurrence in past
3 Moderate Possible to occur.
4 High Likely to occur. Has occurred in past projects.
5 Very High Highly likely to occur. Has occurred in past projects and
exist for it to occur on this project.
No increase in
No change to schedule
2 Low < 5% increase in
< 1 week delay to schedule
5-10% increase in
1 - 2 weeks delay to schedule
4 High 10-20% increase in
2 - 4 weeks delay to schedule
> 20% increase in
> 4 weeks delay to schedule
70. Qualitative Risk Assessment
Using your RAM and Rating Scales, you can then analyze the likelihood of each risk event
occurring and its impact to determine what Risk Level it is at. This will give you the
information you need to prioritize your list of project risks.
A qualitative risk assessment can also help you determine if there are any specific types or
categories of risks that would require special attention or any risk events that need to be
handled in the near-term.
The most challenging aspect of performing a qualitative risk analysis is defining your rating
scales. But once that has been done, you can use them for the duration of the project to
effectively manage your project's risks in a timely manner.
Project Risk Management
72. Procurement Management
Some contracts are fixed price: no matter how much time or effort goes into
them, the client always pay the same. The cost to the client stays the same,
but as more effort is exerted the profit to the contractor goes down.
Some are cost reimbursable also called cost plus. This is where the seller
charges you for the cost of doing the work plus some fee or rate. As efforts
increase, costs to the client go up but the contractor’s profits stay the same.
The third major kind of contract is time and materials. That’s where the client
pays a rate for the time spent working on the project and also pays for all the
materials used to do the work. As costs to the client go up, so does the profit
for the contractor.