Advanced PMP Preparation Course Guide
Advanced PMP Preparation Course Guide
Program1
Portfolio
Project2
Project1
Project3
Program
Product Scope:
The Features an functions that characterize a product, service or results
Project Scope:
The work need to be accomplished to deliver a product, service or results with specified
features & functions
Copy righted for Hosam Eid Mohammed (kandeel)
Is a Temporary, Unique , budgeted & time framed
endeavor (event) , that applies the concept of
progressively elaboration to develop an end product
progressively
elaboration
Project concept
Established
By
Unique:
will never be Planning the next part of
repeated the project according to
new available data
Budgeted:
Have a fixed budget Organization Planning the next part of
the project according to
Budgeted & time new available data
framed:
Have a fixed budget & Planning Part of the project according to the
duration available data
progressively elaboration concept
Summary level planning package: are the aggregation of work & budget for far‐term effort
that can be assigned within reporting level WBS elements but not down to the CA level (have
scope, schedule &budget) & reflect dollars, hours & other measurable quantities
Cost
Management Management
Management
reserve reserve
reserve
Stakeholder Impact Matrix for the project STH. Interest in The Project
PMO “Project management office”
Types of PMO
Supportive Controlling Directive
Key Function
Supplying templates, Best
Provide support and Directly managing the
practices, access to information
and lessons learned require compliance (KPIs) projects
Primary Function
Manage shared resources across all projects
Identifying and developing project management methodology
Coaching, mentoring, training and oversight
Monitoring compliance with project management standards
Developing and managing project policies, procedures and templates
Coordinating communication across the project
Project Management Frame work & Organization Structure
(Organization Structure)
Engineering
Coordinators Site Engineers Site Engineers Site Engineers Site Engineers
Procurement (one for 2 Buildings) (one for 1 Buildings) (one for 1 Buildings) 2+2Engineers
Coordinators
process
process
process
Initiation
Process Group
3. Determine Budget
2. Estimate Cost
1. Develop HR Plan
Process Group
Planning
Executing
Process Group
2. Perform Quality
Assurance
2. Manage
Communication
3. Manage Stakeholder
Engagement
2. Conduct
Procurement
5. Validate Scope
6. Control Scope
3. Perform Quality
Control
6. Monitor & Control
Risks
Closing Process
Group
6. Close Project or
phase
Project Management Standard Process & Knowledge areas (The Matrix)
Communication
Management
Management
Management
Management
Management
Management
Management
Management
Management
Procurement
Stakeholder
Management
Integration
Quality
scope
Time
Cost
Risk
HR
Initiation
1. Plan Procurement
1. Plan Scope Quality 2. Develop Project
Communications
Management
2. Define 2. Identify
Stakeholder
Management 2. Estimate Management plan
Activities Risks
Planning
2. Plan
1. Plan
2. Collect 3. Sequence Cost 3. Perform
Requirement Activities Qualitative
3. Determine Risk Analysis
4. Estimate Activity Budget
3. Define Resources 4. Perform
Scope 5. Estimate Quantitative
Activities Durations Risk Analysis
4. Create
WBS 6. Develop 5. Plan Risk
Schedule Responses
2. Acquire
Communication
Engagement
Stakeholder
Procurement
Executing
3. Manage
2. Conduct
2. Manage
Quality 3. Develop Project Work
Project Team
Assurance
4. Manage
Project Team
Procurement
Scope
& controlling
communication
Engagement
3. Perform
Stakeholder
Control Risks
Monitoring
3. Control
4. Control
Work
Quality 3. Control
6. Control Control 5. Perform
Scope Integrated Change
Control
Procurement
6. Close Project or
Closing
4. Close
phase
Project Management Standard Process & Knowledge areas
(The process)
Initiation
Planning
Select project manager
Determine company culture and existing system
Det. How you will do planning part of all management plan
Collect processes, procedures and historical information
Finalize Requirement
Divide large project into phases
Create project scope statement
Understand the business case
Determine what to purchase
Uncover initial requirements and risks
Determine team
Create measurable objectives
Create WBS and WBS dictionary
Develop project charter
Create activity list
Identify stake holder
Create network diagram
Develop stake holder management strategy
Estimate resource requirement
Executing Estimate time
Estimate cost
Execute the work according to PM plan Determine critical path
Produce product scope Develop schedule
Request change Develop budget
Implement only approved change Det. Quality standard, process and metrics
Ensure common understanding
Create Process improvement plan
Use work authorization system
Det. All roles and responsibility
Continuously improve
Fallow process Plan communications
Perform QA Risk identification
Perform Quality Audits Risk identification and analysis
Acquire final team Risk response planning
Manage people Go‐back iteration
Evaluate team and project perform Prepare procurement
Hold team building activities Finalize how to execute and control
Give recognition and rewards Define find PM planned performance measurement baseline
Use issue log Formal approval for plan
Facilitate conflict resolution
Hold kick off meeting
Send and receive information
Hold meeting
Select sellers
Project Management Standard Process & Knowledge areas
(The process)
Teaming Agreement
Question (1)
Question (2)
Question (3)
Project scope Management
Copy righted for Hosam Eid Mohammed (kandeel)
Project scope Management
Why do the
Summary Description
organization need the
of the Project,
project to be
outlines module
established ?
Scope
Quality
Project scope Management
Planning
Inputs
1. Plan Scope Management
Outputs
Tools & Techniques
Project Charter
The Birth Authorization of a project , Signed by the Sponsor & provides a High level project
requirements & high level project description, the Project charter names the Project manager & can
name the high level Roles in the project & the high level vendors & suppliers for special items, the
document includes as well a top level estimating budget for the project
Stakeholder Register
Planning
Inputs
2. Collect Requirement
Outputs
Tools & Techniques
Planning
Inputs
3. Define Scope
Outputs
Tools & Techniques
Example of a WBS
PROJECT
Level (0 – or Control Account level – Div 03 ) 0
End Level (work Package level) after which the WBS 1 WBS 2 WBS 3
Listing of the activities is being developed [Link].1 [Link].2 [Link].3
Project scope Management
The Philosophy of defining & detailing the definition of scope is to try to tend
the project to a manageable form, as we cant use the requirement nor the scope
definition to Manage the project or to achieve the goals of the project
Scope
Project scope Management
Resulted in
Being Done upon
release of
4. Validate the finishing of a
payment &
Scope part , phase, stage
official
or sub‐product
approval
There is no
need of
Being Done releasing
5. Control payment, it is
Periodically to just
Scope avoid scope creep monitoring
the
performance
Project Time Management
Copy righted for Hosam Eid Mohammed (kandeel)
Project Time Management
The Concept & the
target
500$
Summary Level (work package1) – Rolling Up for Activities Duration & Logic 300$
200$ Summary Level (work package2) – Rolling Up for Activities Duration & Logic
Resource (2) – Machines (hours & Dollars) Total Hours = X Total Cost=Y
Resource (3) – Materials (Quantity & Dollars) Total Q.= X Total Cost=Y
Planning
Inputs
1. Plan Schedule
management Outputs
Tools & Techniques
Project management plan
Project Charter Expert Judgment
Schedule Management plan
OPA and EEF Analytical techniques
Meetings
Decomposition
Scope Baseline Activity List
Rolling Wave Planning
Schedule Management plan Activity Attribute
Expert Judgment
Milestones list
OPA and EEF
Planning
Inputs
3. Sequence Activities
Outputs
Precedence diagram
Schedule Management plan Project Schedule Network
Dependency Determining Diagram
Activity Attribute
Apply Leads & Lags
Project Document Update
Milestones list
Scope Management Project Scope Statement
Planning
Inputs
5. Estimate Activities Durations
Outputs
Tools & Techniques
Activity List Expert Judgment
Activity Attribute Parametric Analysis
Activities Durations Estimates
Schedule Management plan Analogous Estimate
Project Document Update
Resource Calendar 3 – Point Estimate
Activity Resource requirements
Group Decision making techniques
Resource breakdown structure
Reserve Analysis
Project Scope Statement
Risk Register
EEF & OPA
Project Time Management
Planning
Inputs
6. Develop Schedule
Outputs
Activity List Tools & Techniques
Project Schedule and schedule data Performance review Work Performance Measurements
Schedule tool
Project Cost Management
Copy righted for Hosam Eid Mohammed (kandeel)
Project Cost Management 500$
WBS level (1) – Rolling Up for Activities Duration & Logic
Summary Level (work package1) – Rolling Up for Activities Duration & Logic 300$
Activity (A) – Duration = XX
S F 100$
Planning
Inputs
1. Plan Cost management
Outputs
Tools & Techniques
Project management plan
Project Charter Expert Judgment
Cost Management plan
OPA and EEF Analytical techniques
Meetings
Planning
Inputs
3. Determine Budget
Outputs
10
10
10
10
10
10
10
10
Cost of Item (budgeted)
1 2 3 4 5 6 7 8
Terms Item To be Finished
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
PV BCWS Budgeted Cost of Work Scheduled 30
AC ACWP Actual Cost of Work Performed 40 Planed Time Line (Assigned Baseline)
BAC Total Budget for the Project as Baseline
Actual Time
Line Point of Study & analysis
Case (1) What has happened has happened & we can bring the
Value project on track again
Measured from the real The monitored performance is the best the contractor
work Done Case (2)
(vendor/Supplier) can do
Financial Measurement Estimate AT
EAC AC BAC EV
Completion
EV
We Are on Time On
Budget
0
SPI CPI
PV > 1 ok
Schedule Case (3) The monitored performance is the best the contractor
Performance We Are Ahead of
Schedule Under Budget
>0 (vendor/Supplier) can do & there will be a problem regarding
Indicator
< 1 Not the time As well
EV ok
CPI Estimate AT
We Are Behind of <0 EAC AC BAC EV
Cost
AC Schedule Over Budget Completion
Performance
Indicator CPI SPI
Project Quality Management
Copy righted for Hosam Eid Mohammed (kandeel)
Project Quality Management
Quality
A set of inherent characteristics
implemented to fulfill requirements
Grade
Category assigned to products or service having
the same functional use but different technical
characteristics
Project Quality Management
4. Ishakawa Theory
Cause & effect Diagram
Project Quality Management
Planning
Inputs
1. Plan Quality
Outputs
Tools & Techniques
Scope Baseline Cost – Benefit An. Flowcharting
Cost Performance baseline Quality Management plan
Design of experiments
Schedule Baseline Quality Matrices
Control Charts Bench marking
Stakeholder Register Processes Improvement plan
Statistical sampling
Risk Register Project Document Update
Cost Of Quality
EEF & OPA Proprietary quality management
Quality Matrices
Operational definition that describes, in very Specific terms, a project or
product attribute and how the Quality control process will measure it
EX. on‐time Defect
budget control Test Coverage failure rate
performance frequency
Cost Of Quality
Refer to total cost of all effort related to Quality
through out the Product lifecycle
Cost Of
Cost Of Conformance
Nonconformance
Money spent during the Project to avoid failure Money spent during & After the Project Because
of failure
Prevention (Build Quality – error out of the
processes ) Internal Failure Cost
Inspection
Approved Chang e Request Review
Quality Audit
Processes Analysis
Inspection
Average of the
process data
Precision
Consistency that the Value of repeated measurements
are clustered & have a little scatter
Accuracy
Correctness that the measured value is very close
to the true value
Project Quality Management
Principle (4) The calculation of the Standard Deviation has many ways &
many equations all are right according to the industry
Principle (5) Standard Deviation has many applications in Quality, Risk &
lessons learned recording
Project Quality Management
Standard Deviation analysis for quality control/Assurance
Application (1):
evaluating the accuracy & the precession of a product of a project item
Statistical sampling ‐ QA/QC tool
Important Formulas Mean (μ) = (Sum of Samples reading) / (Number of Samples) X=the reading
Variance = Sum of squared differences between mean and each value, (x‐ μ)2,
divided by number of samples less one (n‐1)
Application (1):
evaluating the accuracy & the precession of a product of a project item
The average
(the mean)
6 3 2 1 4.645 1 2 3 6
Rang (4)
The range represents the scattering of the readings & the closing to the
Rang (3) target value or the true value
The wider range we ASSUME the higher possibility of having the right
Rang (2) value represents the true location of the target within my readings
Rang (1) The range is also answering the question about what is the rang of my
actual item value
The standard deviation is ultimately calculating the range as previous, &
the value of the STDV itself can judge the process
If your widest range (6STDV) is narrow the process achieved the goal by
99.9999% in a good accuracy & precession
Project Quality Management
3. Perform Quality Control
Statistical sampling ‐ QA/QC tool
(2)
You have the right to refuse other people’s
excessive demands on your time
Project Human Resources Management
Planning
Inputs
1. Plan HR management
Outputs
Tools & Techniques
Activity Resource requirements
Meetings
Expert Judgment
Networking
Org. Hierarchal type
Organization theory
Matrix – Based Resp. Chart
Text Oriented format
RAM : Responsibility
Assignment Matrix
Project Human Resources Management
HR Plan
Role
Authority
Roles & Responsibility
Responsibility
Competency
Project Organization
Chart
Staff Acquisition
Safety
Resource Calendar
Compliance
Project Human Resources Management
Executing
Inputs
2. Acquire Project Team
Outputs
Tools & Techniques
Executing
Inputs
3. Develop Project Team
Outputs
Tools & Techniques
Co‐ Location
Self ‐ Actualization
Perquisites Self – Fulfillment, growth, Learning
Some Employees receive special
rewards for their efforts
Esteem
Accomplishment, Respect, Attention, Appreciation
Fringe Benefits
All Employees receive Normal Social
Benefits as Standard Company Love, Affection, Approval, Friends, association
formal benefits
Safety
Security, Stability, Freedom from harm
Physiological Needs
Need for Air, Water, Food, Housing, clothing
2. Expectancy Theory
Employees who believe their effort will lead to effective performance & who expect to be rewarded for their
accomplishments remain productive as rewards meet their expectations
Project Human Resources Management
Human Resources Important Theories
3. Motivation Theory “what do people really want..?”
4. McGregor’s
g Theoryy of X&Y
Theory X Theory Y
Managers who accept this theory Managers who accept this theory
believe that people need to be believe that people are willing to
watched every minute, people are
incapable, avoid responsibility &
avoid work whenever possible
y work without supervision, and want
to achieve. People can direct their
own effort
OPA
Conflict Management
Win – Lose
Project Human Resources Management
5. Compromise
Compromise is a solution acceptable to both parties. It is often
Lose – Lose – lose felt like that although the solution isn’t ideal, it is reasonable in
the circumstances
Win‐lose / win‐Lose
6. Consensus
A consensus is based on a new solution that has been
developed by both parties. In contrast to a compromise, it is a
Win – Win Situation for both parties,
Win – Win
Project Human Resources Management
You need
to Know
Yes Maybe No
Don’t Want To Do
Want To Do & Want To Do But
& Don’t Have to
Have to do Don’t Have to do
do
Have to do But
Don’t want to do
Personal Arrangement for the daily Tasks & Role definitions for the general
organization chart will clearly define the location of each task for each person
in the organization under one of the three categories & drive to an effective
time management & stress decrease
Project Human Resources Management
Urgent
Project Human Resources Management
PURE
SMART CLEAR
P Positively stated
S Specific
f C Challenging
g g
U Understood
M Measureable L Legal
g
R Relevant
A Attainable E Environmentally
E Ethical sound
R Realistic
A Agreed
g
T Time Phased
R Recorded
The More Right Goal You have the less stress you will suffer
Project Human Resources Management
Less Subjected to stress & can More Subjected to stress & usually
regularly deal with stress unable to deal with stress regularly
Project Communication
Management Copy righted for Hosam Eid Mohammed (kandeel)
Project Communication Management
Successful Communication
Sending the right Information
Communication
requirements Analysis
Stakeholder Analysis
STH.
Impact on
the project
communication
Direction of
Push Communication Mails, memos, letters & faxes
Communication models
Communicate Information
Communication Media
Control communication
Is the process of monitoring and controlling
the communication throughout the entire
project life cycle to ensure the information
needs of the project stakeholders are met.
The key benefit of this process is that it
ensures an optimal information flow among
all communication participants, at any
moment of time.
Project Communication Management
Time Series method : Use historical information for future forecasting (EVM)
Causal / Econometric methods : Use Assumptions (What if – Scenarios)
Judgment Method : Use Expert Judgment as Delphi Technique
Reporting system
Trends : Comparing the performance to a fixed periods of the project (updating Cycle)
Project Risk Management
Copy righted for Hosam Eid Mohammed (kandeel)
Project Risk Management
Planning
Inputs
1. Plan Risk Management
Outputs
Tools & Techniques
Project Charter Analytical techniques
Score
Risk Factors ‐ QL Factors‐ QN Risk Potential
S co re
ID Action Notes
Owner Response
Cause Description effect P I P I Owner
As we don’t have which wil cause a
On a small scale (1 to 3)
R_001 the proper existing delay of 10 days &
Quantitative Rank
existing cable Qualitative Rank
utilities drawings penalty of 1000 SR
Score
R_002
R_003
R_00X
Risks Definitions
Business Risk Risk of gain or loss – Ex. Product that can be lose money or gain money
Analytical technique
Used to understand and define the overall risk management context .
‘The ostrich approach ‘ where you burry your head in the sand and amuse
2 everything will be alright, that somehow you will muddle through
‘the intuitive approach’ that say don’t trust all the fancy analysis, trust your
3 intuition and gut feel
‘The brute force approach’ that focuses on the uncontrollable risk and says
4 we can force things to be controlled, which of course they cannot
We have COP directors in many various fields with
PMI‐AGC does not have a fixed office in Riyadh
high experience & well Educated
We are working in a booming era in the filed of
SWOT Analysis
PMI‐AGC does not have a fixed training Schedule
project management
The market is hungry for project management PMI‐AGC does not have a fixed training place in
Riyadh
We have a well established relations with the
The service of the PMI‐AGC especially in trainings
largest clients & Contractors in many fields
in Riyadh is week
We have well Experienced members of the COP
Providing Practical application in specified
board in the training filed
industries is not strong enough
We know that the most wanted service now ins
Surveys for the market needs (PM) tools are not
trainings
strong enough
PMI‐AGC is an official representative of PMI
Opportunities Threats
Planning
Inputs
4. Perform Quantitative Risk Analysis
Outputs
Tools & Techniques
Risk Management Plan
Data Gathering & Representing Tec.
Risk Register Information Gathering Tec. (project documents ) Risk
Register Update
Cost management plan Quantitative Risk Analysis Modeling
Techniques
Schedule management plan Updated List of Potential Risks
Expert Judgment
Risk Rating
Is A number Between 1 & 10 chosen to evaluate the Probability or Impact of a Risk
Important Single Formula – Risk Factors
Quantitative Amount
Qualitative Score
(Money or Time)
Identify the total Project Risk Identify the total Project Risk
Score & Go/No Go Decision Score & Go/No Go Decision
After every single group of analysis The previewed curve took place Target
Sensitivity Analysis
Project Risk Management
PM Plan Update
Exploit Transfer
Avoid
Enhance
Mitigate
Share
Accept
Project Risk Management
Change Request
PM Plan Update
Customer
Risk Team , Risk manager & RAM As out put
All Risk
Engineering Dep. Qualitative scales of Probability
information are
available & Risk Analysis & impacts
Outside Experts
As out put
Evaluated with Probability &
Estimation Dep. acceptable quality impact for Each risk
Choose for
Cost Control Dep. Identify Further Score & ranking
YES
Analysis
Procurement Dep. Risks Watch List
Create Risk
Construction Dep. Quantitative
Breakdown Simulations
out put
structure Risk Analysis
As
HR Dep. Detailed
Risk Register RBS Sub Decisions
Coordinators
Probabilistic Scenarios Management
As out put Plan Risk Contingency &
Top Management
Reserves & Management Responses Fallback Plans
Monitor & control Risks, Through Risk meetings Evaluate Responses Document the New Risks & create lessons
learned Starting From the risk Planning process
Agreed or ..? The Most Important Process of Risk management – if we will do RM – Is to Identify the Risks Processes of RM
Agreed or ..? Most of the Construction risks are linked to the construction schedule Construction Point
of View
Agreed or ..? Most of the Risks In Construction are with high Impact & Controlled Probability
Agreed or ..? Risk as A decision making tool & the Scenario management can be mostly Used in Construction Decide To Do RM &
Agreed or ..? Risk as A decision making tool Can not be done in the Detailed Level of Schedule
RM Planning
Identify Risks
Use a prompt list – List of Risk Categories
Analyze Risk
Review your Own Company’s historical
records and other documentation Score & Ranking for Risks Team
Plan Risk Responses
Brainstorming High Level Risk Analysis for Cost
Executives Simply How we are going
Conduct a ‘’ Pre‐mortem' Imagine the High Level Risk Analysis for Time to deal with risks
project is completed or failed
Matrices & Templates for Risk Categories Complicatedly What is the
Affinity diagrams – Grouping of Identified effect of our responses to
Detailed Level Scenarios Analysis for Time & Cost
Expert interviews the Risks probabilities &
All Time An cost Scenarios outputs Reviewed Impacts
Nominal group technique – Group thinking
Use the New Modified
Delphi technique – Individual Experts Probabilities & Impact To
Cause and effect diagram – Fish bone Re – Simulate the Project
outputs
Failure modes and effects analysis
Exploit Enhance Transfer Avoid Plan Risk Responses
Strengths, weaknesses , opportunities , and
Share Accept Mitigate Categories
threats (SWOT)
Monitor & control Risks, Through Risk meetings Evaluate Responses, Document the New Risks & create lessons learned
Starting From the risk Planning process
Group (C) ‐ Based & depend on the Identified risks & there Probability , Impact & Activity Sensitivity – Using
Risk Register & Qualitative & Quantitative Risk Analysis & Risk Responses
Qualitative Ranked
Identified RISK New Risks
Residual Risks
Pre – Mitigated Risks Data Post – Mitigated Risks Data
Mandatory Data To be
Mandatory Data To be Defined to Defined to Software or
Software or manual analysis manual analysis
Threat or Opportunity & Essay details Threat or Opportunity & Essay details
Cause & Effect ,Title & Description for Risk Cause & Effect ,Title & Description for Risk
Probability as Qualified (Low, Medium, High & Probability as Qualified (Low, Medium, High &
percentage) percentage)
Schedule Impact (Low, Medium, High & Value) Schedule Impact (Low, Medium, High & Value)
Project
Cost Impact (Low, Medium, High (Rank & Value) Cost Impact (Low, Medium, High (Rank & Value)
Cost Impact (Low, Medium, High (Rank & Value) Cost Impact (Low, Medium, High (Rank & Value)
Performance Impact Description Performance Impact Description
Categorized
By Division Awarding & ordering
Actual % of Actual % of
Planned EQ. the EQ. Planned EQ. the EQ.
Weight Weight Weight Weight
based on the based on based on the based on
cost & the contacting cost & the contacting
Categorized By Division & eliminated fixed the fixed the
to only The Items Supplied by Saudi duration Supplying duration Supplying
Oger or Oger Int. & corresponding the Dep. Dep.
Manufacturing & Shipping Time
Schedule with Equivalent weighting
system
Manufacturing Shipping
Actual % of
Planned EQ. the EQ.
Weight Weight
based on the based on
cost & the contacting
Categorized By Division & eliminated only to the Long lead items defined for each division by the fixed the
procurement dep. The ideal approach is to load the quantities on the delivery activities & track by duration Supplying
quantities delivered, the current tracking Approach is to depend on the construction % to roughly Dep.
identify the Delivery % complete
Delivery on site
Project Procurement Management
Planning
Inputs
1. Plan Procurement
Outputs
Tools & Techniques
1. Plan Procurement
Source Selection Criteria
Technical capability
Risk
Management Approaches
Technical Approaches
Warranty Period Summed to a number
compared to other Selected Seller / Vendor
Financial capacity vendors
Production capacity
1. Plan Procurement
Contract Types
Fixed Price Contract Cost Reimbursable contacts Time & Materials Contracts
Firm Fixed Price Contract (FFP) Cost Plus Fixed Fee (CPFF) Experts, Staff & acquisition
Fixed Price Incentive Fee Contract (FPIF) Cost Plus Incentive Fee (CPIF)
Procurement management Plan – Includes Guidance for: Procurement Statement of work (SOW)
Types of Contract To be used Identify Requirements for Performance Describes the procurement items in sufficient details to allow
prospective seller to determine if they are capable of providing
Risk Management Issues Procurement Documents Schedule Dates for each contract the product or service
Calculations
Cost Plus Incentive fee Contract Actual @ completion cost = 200,000 $ Final Fee = 25,000 + 2,000 = 27,000 $
Target Cost 210, 000 $
Target Fee 25,000 $ Saving =210,000 ‐ 200,000 $ = 10,000 $ Final Price = 200,000 + 27,000 = 227,000$
Sharing Ration 80/20 Seller Share = 10,000 * 20% = 2,000 $
Fixed Price Incentive fee Contract Final Fee = 30,000 ‐ 24,000 = 6,000 $
Target Cost 150, 000 $ Actual @ completion cost = 210,000 $
Final Price = 210,000 + 6,000 = 216,000$
Target Fee 30,000 $ Overage =150,000 ‐ 210,000 $ = (60,000) $
Sharing Ration 60/40 The seller will only receive = 200,000$
Seller Share = (60,000) * 40% = (24,000) $
Ceiling Price = 200,000 $
2. Conduct Procurement
Contract includes
Statement of work ‐ deliverables Fee & retentions
Schedule baseline Penalties
Performance reporting System Incentives
Period of Performance Insurance & performance Bonds
Roles & Responsibilities Subordinates approval
Seller’s place of Performance Subcontractors Approval
Pricing Change requests handling
Payment terms Termination & alternatives
Place of Delivery Alternative Disputes resolution (ADR)
Inspection criteria
Acceptance criteria
Warranty
Product Support
Limitation of Liabilities
Project Procurement Management
3. Control Procurement
Application of the appropriate project Management processes to the contractual
relations & integration of the outputs to overall management processes of the
project
Project Procurement Management
Closing
Inputs
4. Close Procurement
Outputs
Tools & Techniques
Project Management plan
Procurement Audit
Procurement documentation Close Procurement
Negotiation settlement
OPA Update
Record management system
Project Stakeholder
Management Copy righted for Hosam Eid Mohammed (kandeel)
Project Stakeholder Management
Successful Communication
Sending the right Information
Initiation
Inputs
1. Identify Stakeholders
Outputs
Tools & Techniques
Planning
Inputs
2. Plan Stakeholder
Management
Outputs
Tools & Techniques
STH.
Impact on
the project
Executing
Inputs
3. Manage Stakeholder
Engagement Outputs
Tools & Techniques
Manage Stakeholder
Engagement
Monitoring and
controllingg
Inputs
4. Control Stakeholder
Engagement Outputs
Tools & Techniques
We are
looking for
Project Integration Management
Initiation
Inputs
1. Develop Project Charter
Outputs
Tools & Techniques
Project Statement of work
Expert Judgment
Business case Project Charter
Facilitation techniques
Agreements
EEF & OPA Brain storming
Conflict resolution
Execution
Inputs
3. Direct & Manage Project work
Outputs
Tools & Techniques
Project Management Plan
Expert Judgment Deliverables
Approved Change Requests Project Management Information Work Performance Data
System (PMIS)
EEF & OPA Change Request
Meetings
PM plan & project Documents
Update
Includes the activities & process needed to identify, define, combine, unify & coordinate various process & Project
management activities with the project management process groups
Strategic plan
Implementation
Estimate to Estimated finish
Status of delivery status of change Forecasts
complete cost dates
requests
Project Integration Management
Project Integration Management
Closing
Inputs
6. Close Project or phase
Outputs
Tools & Techniques
Project Management Plan Final Product, service, or
Expert Judgment result transition
Accepted Deliverables
Analytical techniques OPA Update
OPA
Project Integration Management
Direct & Manage Project Execution
Corrective Action
Documented Direction for executing the project work to bring the expected future performance of the
project work in line with the project management plan
Preventive Action
Documented Direction to perform an activity that can reduce the probability of negative
consequences associated with project risks
Defect Repair
The formally documented identification of a defect in a project component with a recommendation to
ether repair the defect or completely replace the component
A system provides a standardized & effective way to centrally manage a proposed change
to the baseline (schedule, Budget or Scope)
Establish an evolutionary method that constantly identify & request changes
Provide opportunities to continuously validate & improve project by considering the inputs of each change
Provide mechanisms for the project management team to consistently communicate all approved &
reflected Change to all stakeholders