Planning Project Budget Quality and Communications Plan Project

Planning Project Budget, Quality, and Communications § § § Plan Project Cost Management Estimate Project Costs Determine the Project Budget Plan Quality Management Plan Human Resource Management Plan Communications Management Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 1

Plan Cost Management A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 196 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 2

What Is a Cost Management Plan? Copyright © 2013 Logical Operations, Inc. All rights

The Plan Cost Management Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 195 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 4

Plan Cost Management Inputs § § Project management plan Project charter Enterprise environmental factors Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 5

Plan Cost Management Tools and Techniques § Expert judgment § Analytical techniques § Meetings

Plan Cost Management Outputs § The cost management plan Copyright © 2013 Logical Operations,

Guidelines to Develop a Cost Management Plan § § § § Review the project management plan. Review the project charter for summary budget information. Review the enterprise environmental factors. Review the organizational process assets. Use tools and techniques. Use analytical techniques for decisions on how the project will be funded. Hold meetings to develop the cost management plan. Document the cost management plan for the project. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 8

Estimate Project Costs A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 201 OV 7 - 9 Copyright © 2013 Logical Operations, Inc. All rights reserved.

The Estimate Costs Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 200 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 10

Estimate Costs Inputs § § § § The cost management plan The human resources management plan Scope baseline Project schedule Risk register Enterprise environmental factors Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 11

Estimate Costs Tools and Techniques § § § § § Expert judgment Analogous estimating Parametric estimating Bottom-up estimating Three-point estimating Reserve analysis Cost of Quality (COQ) Project management software Vendor bid analysis Group decision-making techniques Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 12

Estimate Costs Outputs § Activity cost estimates § Basis of estimates § Project document

Guidelines to Estimate Costs § Gather cost figures that go into the cost estimates for individual work packages. § Check with the resource supplier to make sure no incorrect assumptions have been made. § Gather any relevant input information that may help you prepare the estimates. § Determine which estimating technique to use. § Look for alternative costing options. § Determine the units of measure that will be used. § Consider possible risks that may impact cost. § Ensure that all cost estimates are assigned to the appropriate account. § Make sure estimates include costs for resources, level of estimate, and a list of assumptions. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 14

Determine the Project Budget A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 209 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 15

Cost Baselines § § Tie-phase budget Monitors and measures cost performance Includes a budget contingency Vary from project to project Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 16

Determine Budget Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 208 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 17

Determine a Budget Inputs § § § § § Cost management plan Scope baseline Activity cost estimates Basis of estimates Project schedule Resource calendars Risk register Agreements Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 18

Determine a Budget Tools and Techniques § § § Cost aggregation Reserve analysis Expert judgment Historical relationships Funding limit reconciliation Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 19

Funding Limit Reconciliation § Method of adjusting, spending, scheduling, and resource allocation § Bring expenditures into alignment with budgetary constraints § Funding limits regulate the outgoing capital flow and protect against overspending Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 20

Determine a Budget Outputs § Cost baseline § Project funding requirements § Project documents

Guidelines to Determine a Budget § Review the cost management plan. § Review the human resource management plan. § Review the scope baseline for the project scope statement, WBS, and WBS dictionary. § Check the project schedule for type, quantity, and duration of resources. § Review the risk register to consider any risks that may impact cost estimation. § Review the enterprise environmental factors. § Review the organizational process assets. § Use appropriate tools and techniques. § Document the project budget, creating a cost baseline. § Understand project funding requirements or cash flow to enable the project. § Update project documents, as needed. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 22

Plan Quality Management A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 232 OV 7 - 23 Copyright © 2013 Logical Operations, Inc. All rights reserved.

What Is Quality? “Totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs. ” –PMBOK® Guide Quality should be: § Feasible § Modifiable § Measurable Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 24

What Is a Quality Management Plan? Copyright © 2013 Logical Operations, Inc. All rights

The Plan Quality Management Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 232 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 26

Plan Quality Management Inputs § § § Project management plan Stakeholder register Risk register Requirements documentation Enterprise environmental factors Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 27

Plan Quality Management Tools and Techniques § § § § Cost-benefit analysis COQ Seven basic quality tools Benchmarking Design of experiments Statistical sampling Additional quality planning tools Meetings Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 28

COQ A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 235 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 29

The Seven Basic Quality Tools A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 239 OV 7 - 30 Copyright © 2013 Logical Operations, Inc. All rights reserved.

DOE can determine: § Which variable has the greatest effect. § What the relationship is between each variable and the customer-focused quality specifications. § What the best value is for each variable, ensuring optimal quality or value. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 31

Additional Quality Planning Tools § § Brainstorming Force field analysis Nominal group technique Quality management and control tools Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 32

Plan Quality Management Outputs § § § Quality management plan Process improvement plan Quality metrics Quality checklists Project documents updates Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 33

Process Improvement Plan Sample business process improvement plan Copyright © 2013 Logical Operations, Inc.

Quality Metrics and Checklists § Quality metric describes a project attribute and how it will be measured. § Quality checklists are used to confirm that a set of steps has been performed. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 35

Guidelines to Plan Quality Management § Review the organization’s quality policy and determine how your project team will implement the policy. § Review the product description to identify customer/stakeholder quality requirements. § Determine the cost of quality trade-offs. § Use tools and techniques such as cost-benefit analysis, COQ, seven basic quality tools, benchmarking, design of experiments, statistical sampling, additional quality planning tools, and meetings to develop the quality management plan. § Document the quality management plan, process improvement plan, quality metrics, quality checklists, and update any project documents as needed. § Review the quality management plan to make sure it meets all the project requirements. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 36

Plan Human Resource Management A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 258 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 37

What Is Human Resource Management? Contains the processes to organize, manage, and lead the

What Is a Human Resource Management Plan? § Subsidiary plan of the project management plan § Defines: § § § Project roles Responsibilities Required skills Reporting relationships Staff management plan for the project Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 39

The Plan Human Resource Management Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 258 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 40

Plan Human Resource Management Inputs § § Project management plan Activity resource requirements Enterprise environmental factors Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 41

Plan Human Resource Management Tools and Techniques § § § Organization charts and position descriptions Networking Organizational theory Expert judgment Meetings Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 42

Organization Charts and Position Descriptions A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 261 Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 43

Networking § § PMI conferences Symposiums Lunch meetings Other professional events Copyright © 2013

Organizational Theory § § Copyright © 2013 Logical Operations, Inc. All rights reserved. Maximizing

Plan Human Resource Management Outputs § Human resource management plan Copyright © 2013 Logical

Guidelines to Plan Human Resource Management § Review the project management plan for information on the project life cycle and how work will be completed and controlled. § Review the activity resource requirements for the types and quantities of resources. § Review the enterprise environmental factors. § Review the organizational process assets, such as organizational processes; policies, and role descriptions; templates; lessons learned; and escalation procedures for team issues. § Use organization charts and position descriptions, networking, organization theory, expert judgment, and meetings to develop the human resource management plan. § Create a human resource management plan. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 47

Plan Communications Management A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 289) OV 7 - 48 Copyright © 2013 Logical Operations, Inc. All rights reserved.

Project Communications § § § Internal or external Formal or informal Vertical or horizontal Official or unofficial Written or oral Verbal or nonverbal Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 49

Communications Management Plan Stakeholder Communication Method Project Kickoff Meeting Frequency Start of project Responsibility Notes Project Management Office Both team and client kickoff meetings recommended Key Stakeholders Extranet Ongoing Project Management Office Includes project schedule, key project deliverables, meeting minutes, change request log, issues log Client Executive Steering Committee Monthly – first Wednesday of each month Account Manager Review, status, milestones met, earned value indicators, key issues Client Sponsor Status Meetings Status Report (Email) Weekly – Friday 2 p. m. Project Manager Review project status, schedule, change requests, issues Development Team Status Meetings Weekly – Friday 11 a. m. Project Manager Provides input for subsequent meetings with client sponsor Client Managers Newsletter (Email) Weekly – Friday Project Management Office Client Sponsor/Key Client Stakeholders Client Satisfaction Survey Monthly/end of each phase Account Manager/Project Manager Copyright © 2013 Logical Operations, Inc. All rights reserved. Informal (Monthly) Formal (End of each phase) OV 7 - 50

The Plan Communications Management Process A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc. , 2013, p. 289) Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 51

Plan Communications Management Inputs § § Project management plan Stakeholder register Enterprise environmental factors Organizational process assets Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 52

Plan Communications Management Tools and Techniques § § § Communication requirements analysis Communication technology Communication models Communication methods Meetings Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 53

Communication Requirements Analysis § Investigation that leads to a clear articulation of the stakeholders’ communications needs § Helps the project manager make effective choices regarding the technologies to be recommended § Taken in a form of a grid, questionnaire, or survey that documents the communications and technology requirements for each stakeholder Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 54

Communication Technologies § § § The urgency of the need for information The availability to technology The ease of use The project environment Sensitivity and confidentiality of the information Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 55

Communication Models § § § Encode Transmit message Decode Acknowledge Feedback/response Copyright © 2013

Communication Methods § Interactive communications § Push communications § Pull communications Copyright © 2013

Plan Communications Management Outputs § Communications management plan § Project document updates Copyright ©

Guidelines to Plan Communications Management § Gather and distribute contact information for all involved parties. § Determine the communication needs of project stakeholders. § As a rule of thumb, project team members require more detail on a more frequent basis. Senior management typically requires summary information on a less frequent basis. § Analyze the value to the project of providing the information. § Evaluate any constraints and assumptions to determine their possible impact on communication planning. § Determine the appropriate communications technologies to use for communicating project information. § Make sure your communications management plan includes all key elements. § Integrate the communications management plan into the overall project plan. § Distribute the plan to project stakeholders. Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 59

Reflective Questions 1. How do you think the ability to estimate costs effectively will improve your performance on the job? 2. Why is communication such an important and central knowledge area for project management? Copyright © 2013 Logical Operations, Inc. All rights reserved. OV 7 - 60