PM Unit 3

Planning

developing a detailed roadmap of the project’s scope, goals, resources, and timelines

PMI defines “quality” as:

the degree to which a set of inherent characteristics fulfills requirements

Project Management Quality Plan

outlines how quality will be managed throughout a project.

project quality is achieved when a project’s deliverables and processes meet the project’s standards, specifications, and stakeholder expectations.

Three elements of a quality plan

• Quality Control

• Quality Management

• Quality Assurance

Quality Planning

the process of identifying quality standards and quality objectives and documenting how the project will achieve them

• quality objectives: defines measurable project quality goals

Quality Assurance (QA)

a proactive process that ensures the project’s processes are being followed correctly and deliverables will meet quality standards

• focuses on preventing defects

Quality Control (QC)

a reactive process that monitors and measures project deliverables to ensure they meet defined quality requirements

• detects defects in outputs and ensures deliverables meet the standards

Verification

a set or activities that compares a system or system element against the required characteristics

• is this system right

Validation

confirmation through the provision of objective evidence that the stakeholder requirements for a specific intended use or application have been fulfilled

• is this the right system

Key components of the quality plan

• setting quality objectives

• specifying roles and responsibilities

• outlining applicable standards: identifies applicable industry standards, company policies, and regulatory requirements

• outlining quality assurance activities: quality checks, audits, process reviews

• setting quality control activities: inspections and tests to identify defects in deliverables

• handling non conformance/implementing continuous improvement

Industrial Standard and Regulations

Industrial standards and regulations company standards have a major impact on quality assurance because they define minimum “quality” and safety standards

• define quality and safety regulations and acceptance criteria

  • establish inspection and testing methods

  • require documentation, traceability, and records

  • require certified personnel, inspections, and audits

• standardize processes across projects and manufacturers

  • reduce safety, legal, and performance risk

  • regulations make compliance mandatory by law

  • standards often become mandatory when referenced by regulations or contracts (General Duty Clause, Tort Claims)

  • non compliance can result in fines, shutdowns, liability, or product rejection

General Duty Clause

Process Standards and Regulations

• ASME (American Society of Mechanical Engineers): Develops codes and standards for mechanical systems, including pressure vessels, piping, and elevators

• API (American Petroleum Institute): standards for the oil and gas industry, equipment, and safety guidelines

• ANSI/RIA R15.06: safety requirements for industrial robots and robot systems

• NEC (National Electronic Code): standard for electrical wiring and installations in the United States, maintained by the NFPA (national fire protection association)

• ISO (international Organization for Standardization): international standards across various industries

Consumer Product Development Regulations

the CPSC (Consumer Product Safety Commission) regulates consumer products to protect the public from unreasonable risks of injury or death

• mechanical safety: products must not have moving parts, sharp edges, or pinch points that could injure users

• electrical safety: electrical products must not be designed to prevent shocks, fires, or burns

• labeling/instructions: clear labels and instructions are required, including warnings, age restrictions, and usage directions

• recall/corrective action compliance: manufacturers must have systems in place to recall unsafe products and notify customers

Quality Assurance (QA) Acitvities

• Professional Engineer (PE) Stamp: PE stamp verifies that the design process meets engineering standards, codes, and safety requirements before construction

• Engineering Drawing Checking

• Welding Standards/Certified Welders: piping and structural

• Constructibility Review: a systematic process of evaluating design to identify issues before construction begins. typically involves input from engineers, contractors, and project managers to ensure that the design is practical and feasible for construction

Engineering Drawing Checking

• engineering revisions: Rev A, B, etc

• Released for Construction: Rev 0

• Updates: Rev 1, 2, etc

• as built or record drawings: the final set of drawings that reflect all modifications, changes, and deviations made during construction

Quality Control: Construction

quality control uses inspections and testing to verify that materials, workmanship, and finished products meet industrial standards and regulatory requirements

• geotech testing: variety of tests to confirm soil properties for foundation design

• concrete cylinder test: drawing concrete cylinders for compressive strength to ensure the concrete mix meets required specs

• x ray weld inspection: radiographic testing (RT), non destructive testing method used to asses the integrity of welds

• hydrostatic testing: 1.5x piping and vessels

Quality Control: Product Development

in product development, QC testing ensures that the product meets specs, performs reliably, and is safe before it reaches the customer

• functional testing: verifies that the product performs as intended

• performance/load testing: checks how the product performs under normal and extreme conditions

• durability/life cycle/Environmental testing: measures how long the product lasts under repeated use

• regulatory compliance testing: ensures product meets industry or government standards

in Project Quality Management, PDCA:

• Plan: develop project quality management plan and plan quality assurance and QC activities

• Do (Execute the project work): implement quality assurance processes, follow quality procedures and standards, perform training, process audits, and process improvements

• Check: perform QC by conducting inspections, testing, and measurements. identify defects and nonconformance

• Act: implement corrective actions, fix defects and improve processes, apply lessons learned for continuous improvement

the QA/QC process is for continuous improvement

Seven Quality Tools to implement corrective actions (Act)

• fishbone/Ishikawa diagram: identify root causes

• check sheet: collect and organize data

• control chart: monitor process stability over time

• histogram: show data distribution

• pareto chart: identify more significant problems (80/20 rule)

• scatter diagram: show relationships between two variables

• flowchart: show process steps and workflow

these are used to identify, analyze, and prioritize quality problems in projects. They help find issues by organizing data, identifying root causes, and monitoring process performance

Importance of Communication per PMI

“Nothing is more important to the success of a project than effective communication… About 90% of the time in a project is spent on communication by the project manager”

Communication Channels

pathway through which information flows between stakeholders in a project

PMI formula for communication channels

Number of Channels = n(n-1)/2

• n = number of stakeholders

PMI emphasizes:

• more stakeholders → more communication channels

• more channels → greater risk of miscommunication

• managing communication complexity is a key responsibility of the project manager

Communication Management Plan

according to PMI, “the communication management plan outlines how project communications to the stakeholder will be structures and executed”

(stakeholder power-interest grid, RACI chart)

The stakeholder

Stakeholders are persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project” -PMBoK Guide

Components of the Communication Plan

• ID of key stakeholders and their information needs

• type of information (status updates, technical reports, risk reports, etc)

• frequency and timing: how often communications occur (daily, weekly, monthly)

• roles and responsibilities: who is responsible for sending, receiving, and approving communications? archiving and storing copies of project information

Project Communication Venues

• informal communication: emails/meetings, documentation

• formal communication: monthly reports

• presentations/reviews: executives, stakeholders

• external communication: company publicity, handling bad news

Communication Plan chart

Communication tips

• know your audience: tailor communication to the stakeholder’s needs, consider cultural and organizational differences

• choose the right communication method: formal reports for major decisions and project status updates, emails for routine updates and documentation

• keep it clear, concise, professional: keep written records of decisions, risks, and changes

Communication with Executives: Monthly Reports

• executive summary: one paragraph overview of project progress, overall project health (on track, at risk, delayed)

• project status: schedule update (% completion), budget status (actual vs planned), scope status (any changes)

• key accomplishments: major deliverables completed

• concerns, risks, and issues (with solutions)

• next steps and upcoming milestones

project team daily standup meetings

• held at the start of each day

• quick (15 mins) to the point

• safety issues and concerns

• an update on status: team members give a quick run through of yesterdays progress and todays next steps

• look ahead

• log issues

• discuss any further problems outside of the meeting

Reasons for conducting a meeting

Good reasons to meet:

• clarify information

• solve problems (brainstorm)

• develop ideas

• make decisions

• delegate work or authority

• inspire and gain commitment

“Hidden” reasons to meet:

• to share risk and avoid responsibility

• because the problem is there

• because its mandated

• the provide one way information sharing: no input, no consultation

Two general types of meetings: formal and informal

• informal: unstructured

  • unplanned/ad hoc

  • problem solving

  • spur of the moment

  • usually in house

• formal: structured

  • planned

  • multi-purpose

  • in house/external/third party

Rules for informal meetings

• State purpose, standup

• stay on topic

• big topic? inadequate information? no decision maker? → adjourn and reschedule

• avoid multitasking like checking phone or email

• follow up: even if the meeting was informal, make sure theres a summary or follow up actions sent afterward

Formal Meetings

• Project kickoff meeting

• monthly meeting

• presentation to management

• budget review meeting

• team meeting

• town hall meeting

• bid meetings

• contract negotiation

• stakeholder engagement meeting

Steps in the meeting process

Basic steps for planning a meeting

1. decide what you want to accomplish by means of the meeting

2. analyze the group who will attend interest, expectations, levels of knowledge, responsibility/accountability or skill

3. the most powerful meeting planning tool: The Agenda (discussion item and duration, how will you present each part of the agenda for maximum effectiveness, how can your plan be derailed)

4. plan what you will do after the meeting to make results happen

5. pre-issue meeting agenda, issues, materials to key participants, sponsors

Boarding issues

second most powerful tool in a structured meeting is the board. board issues, action items, and points on a flip chart or white board or ppt

Making meeting effective

• effective agenda (PMs job): identify time, date, place, and participants, schedule items in order of importance, set a time contract, distribute in advance

• setup: pick a good meeting spot, arrive early

• do: stay on the process, facilitator

• meeting notes (PMs job): note decisions, close the loop (who does what by when)

Benefits and Concerns (B&C)

at the end of the meeting, ask what benefits and concerns arose from the meeting

this is helpful because:

• captures things that went well and the opportunities for improvement

• allows team members to address feelings inside the meeting

• helps the team see successes and accomplishments as they occur (continuous improvement, sets next steps)

• feedback mechanism for team

Project Cost Management

the process of planning, estimating, budgeting, managing, and controlling project costs so the project can be completed within the approved budget

Four Main processes of Project Cost Management

• plan cost management: determine how project costs will be planned, managed, and controlled

• estimate costs: develop an estimate of the costs required to complete project activities

• determine budget: aggregate estimated costs to establish the authorized cost baseline

• control costs: monitor project costs and manage changes to the cost baseline

Cost Estimate

an approximation of the money required to complete a project

Cost Baseline

the approved version of the project budget, used to measure and track cost performance

Contingency

budget set aside for identified risks that may occur during the project (controlled by PM)

Control Threshold

a predefined limit of acceptable cost variance from the budget baseline that triggers corrective action

management reserve

budget set aside for unforeseen work or unknown risks, controlled by executives (Project Sponsor)

variance

the difference between what was planned or budgeted and what was spent

variance = plan - actual

Financial Accounting

• focuses on the entire organization; used for taxes and company financial statements

• tracks revenue, expenses, assets, and liabilities

  • accrual principle: transactions are recorded when the work is performed or the cost is incurred

• reports by fixed time cycle (monthly, quarterly, yearly)

Project Accounting

• focuses on individual projects

• tracks budget, committed costs (POs/contracts issued) and actual cost

  • compares budget vs committed vs actual spent

• time flexible: reporting can be weekly, daily, or at project milestones

• used by PMs for planning, monitoring, and cost control

Wideman’s Estimating Accuracy

estimating accuracy improves as engineering information increases. Early, limited data force the use of high level estimating methods with wide uncertainty, while detailed engineering provides precise quantities and specifications that reduce assumptions, contingency, and uncertainty

Detailed (Bottom up) Estimating

a cost estimating technique that develops estimates by reviewing scope and WBS, identifying resources, labor, materials, equipment, and subcontractor needs (take off on all components).

aggregating the estimates to determine total project cost and duration

Project Budget

the purpose of a project budget is to plan project spending, establish a cost baseline, and provide a tool to monitor and control project costs

the initial budget is the project baseline divided into Code of Accounts and converted into time based cash flows

as cost variance approaches the control threshold, the PM implements corrective action.

Code of Accounts

Cost Variance Reporting

cash flow

a project budget is a time phased estimate of the total project cost used to fund the project. It helps predict future cost performance and guide financial decisions throughout the project.

Trend analysis

the process of analyzing project cost performance over time to determine whether costs are increasing, decreasing, or staying stable, and to forecast future project costs

the purpose is to detect problems early in cost or schedule and enable corrective actions

Cost Control Threshold

a predefined limit of acceptable cost variance from the project’s cost baseline that triggers corrective action

Cost Variance vs Cost Trending

• Cost variance tells the PM if the project is currently over or under budget → backward looking

• Cost Trending shows whether costs are increasing, decreasing, or staying stable over time → proactive

Change Management Plan

establishing a formal change process. defines are changes are requested, reviewed, approved, or rejected

offers a structured framework for evaluating and implementing necessary changes effectively—good for decision making

also good for stakeholder communication because it ensures stakeholders are informed and engaged in change-related decisions. ensures traceability

Major Change Issues

• budget change

• schedule change

• scope changes

If we plan this whole time, why do projects still fail

its not that planning failed, but that reality changes

requirements were not fully known or better information becomes available

Causes and Impact of Scope Change

• scoping misalignment or misestimate: contingency/undeveloped design

• requirement change: expansion of project scope due to additional features or requirements

• stakeholder requests: changes driven by new or revised stakeholder expectations

• regulatory or compliance updates: new laws or industry standards requiring modifications

• resource availability: changes in personnel, budget, or material constraints

• risk management adjustments: responses to identified risks that necessitate modifications

• market or business shifts: economic, competitive, or strategic factors requiring project realignment

Two Types of Scope Change

• Scope Creep (uncontrolled change)

• Managed Scope Change (approved modifications)

Communicate the change

change control procedures, including the steps by which official company standards, policies, plans, and procedures—or any project documents—will be modified, and how any changes will be approved, validated, and communicated.

• review, validation, and approval by subject matter expert

• sign offs by appropriate SME

• review and approval by PM

execute the change

• mark with new Rev #

• destroy all old versions except for archive copies

Change Management Process Flow

• identify need for change: submit change request, formal paperwork signed by requestor

• perform impact analysis: impact to scope, schedule, and/or budget

• review by project manager: or Change Control Board (CCB), approve or reject, add to change log

• communicate change

• implement change

• update project documents

Change Order Form

• request submission - a stakeholder submits a change request detailing the modification needed

• initial review - the PM assess the request

• Impact analysis - the team evaluates the effect of the change on scope, schedule, budget, resources, and risks; makes recommendation

• Approval or Rejection - the PM or CMB approves, rejects, or requests modifications to the change. if the change is significant the PM submits the change to the appropriate decision making authority

• implementation planning - is approved, an updated project plan is integrated

• Execution and Documentation - change is implemented, progress is monitored, and records are updated to ensure traceability

• Closure and Communication - stakeholders are informed, and the final impact of the change is reviewed to confirm successful integration; change order log

Change Order Log

a project document used to record and track all change requests, approvals, cost impacts, and schedule impacts throughout the project