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Effective Project Management: Traditional, Agile, Extreme

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Title: Effective Project Management: Traditional, Agile, Extreme


1
Effective Project Management Traditional, Agile,
Extreme
Managing Complexity in the Face of Uncertainty
Ch02 Understanding Project Management Process
Groups
  • Presented by
  • (facilitator name)

2
Summary of Chapter 2
Ch02 Project Life Cycle Processes
  • Fundamentals of project management
  • 5 process groups
  • 9 knowledge areas
  • Mapping knowledge areas into process groups

3
Process Groups
  • The five Process Groups were originally defined
    by the Project Management Institute (PMI) in
    their standards guidelines called the Project
    Management Body of Knowledge (PMBOK).
  • PMBOK has become standard for the practice of
    project management worldwide.

4
Understanding the Fundamentals of Project
Management
  • the history of modern project management dates
    from the 1950s.
  • Several definitions have focused on project to be
    completed on-time, under-budget, and according to
    client specifications.
  • definition of the author project management is
    organized common sense,

5
Ch02 Project Life Cycle Processes
Definition of Project Management
Project management is a method and set of
techniques based on accepted principles of
management used for planning, estimating, and
controlling work activities to reach a desired
result on time, within budget and according to
specification. (PMBOK) Project management
is organized common sense supported by the tools,
templates and processes to guarantee satisfying
client requirements and delivering business
value. (Robert K. Wysocki)
6
Ch02 Project Life Cycle Processes
Understanding the Fundamentals
  • all valid project management methodologies must
    be reducible to answering the following six
    simple questions
  • What business situation is being addressed?
  • What do you need to do?
  • What will you do?
  • How will you do it?
  • How will you know you did it?
  • How well did you do?

7
Great project manager
  • You can learn to be a cook and be able to follow
    recipes, or you can learn to be a chef and be
    able to create recipes for cooks to follow.
  • The sign of a great project manager is one who
    can quickly adapt when a project does not meet
    the exact requirements of the approach being used
    or a surprise arises during the course of doing
    the project.

8
What Business Situation Is Being Addressed?
  • The situation may be either of the following
  • A project that corrects a problem.
  • 2) A project that takes advantage of a untapped
    business opportunity.

9
A project that corrects a problem
  • the company is experiencing less than acceptable
    process performance
  • a system no longer meets the needs for which it
    was originally put in place
  • business conditions or requirements have changed,
    and the system needs to change as well
  • legal requirements and regulations have changed,
    and systems need to be updated.
  • The project being proposed may address all or
    some part of the problem.

10
A project that takes advantage of a untapped
business opportunity.
This could come about as a result of changing
market conditions or the emergence of a new or
improved technology.
11
What Do You Need to Do?
  • What the client wants may not be what the client
    needs, and it is up to you, the project manager,
    to identify the clients true needs.
  • clients will often express their wants as their
    attempt at proposing a solution to an unstated
    problem.
  • The solution should address the clients real
    needs, and you must convince them that it is the
    needs not the wants that you will address.

12
What Will You Do?
  • Once you understand what is needed, you and the
    client have to decide what can be done to meet
    that need.
  • Of course you would like to meet all client
    requirements, but that may not be possible.
  • A partial solution may be all that you can
    provide, and others will have to pick up the
    pieces and provide additional parts of the
    solution.
  • Even after you have made a choice to use what you
    believe to be the best-fit model, you will have
    to modify it at the beginning of the project or
    at points along the way.

13
How Will You Do It?
  • This is your plan for delivering an acceptable
    solution.
  • how long it will take, what resources will be
    needed, and how much the solution will cost
  • When you cant build that ideal plan, you will
    have to use some variant of a just-in-time
    planning model
  • Plan a little, do a little, and continue in that
    repetitive fashion until the project is
    completed..

14
How Will You Know You Did It?
  • An acceptable solution will meet both client
    requirements and business success criteria.
  • Client requirements are what the client believes
    define the best way to meet those business
    success criteria.
  • If satisfying client requirements does result in
    the best solution, then those business success
    criteria will have been met as well.
  • success criteria should be stated at the
    beginning of the project in such a way that it is
    obvious that by the end of the project they have
    or have not been met.

15
How Well Did You Do?
  • The project work is complete, and the solution
    has been implemented. Its time for the
    post-mortem.
  • There are two different things to consider in
    analyzing how well you did
  • The first is the quality of the product that was
    produced by the project.
  • 2) The second thing to consider is the process
    that was followed to produce the product.

16
The quality of the product that was produced by
the project
  • Did the project meet the client requirements, and
    did it achieve the business success criteria that
    justified doing the project in the first place?
  • a complete requirements definition cannot be done
    at the beginning of the project. Instead, the
    requirements list is a changing and expanding
    list that evolves over the life of the project.
  • Requirements are learned and discovered during
    the course of executing the project plan.

17
the process that was followed to produce the
product
  • How well defined and documented were the project
    management processes you chose to use?
  • How well did the chosen processes fit the needs
    of the project?
  • How well did the team follow the chosen
    processes?
  • How well did the chosen processes produce the
    expected results?
  • Answers to the first two questions provide input
    to needed project management process
    improvements, and answers to the last two
    questions will provide input to needed practice
    improvement efforts (for example, training needs
    or improved processes for making project
    assignments).

18
Defining the Five Process Groups
  • whatever project management life cycle model you
    use must contain all of the Process Groups

19
Ch02 Project Life Cycle Processes
The Five Project Management Process Groups
Develop and gain approval of a general statement
of the goal and business value of the project.
Identify work to be done and estimate time, cost
and resource requirements and gain approval.
Recruit the team and establish team operating
rules.
Respond to change requests and resolve problem
situations to maintain project progress.
Assure attainment of client requirements and
install deliverables.
20
The Scoping Process Group
  • PMBOK calls this the Initiating Process Group.
  • However, the term initiating can be confusing.
    The author find the term scoping to be clearer.
  • This Process Group includes all processes related
    to answering the question What do you need to
    do?
  • It does not include any processes related to
    doing any project work. That project work is
    defined in the Planning Process Group to be done
    later in the project life cycle.

21
The Scoping Process Group....
  • The Scoping Process Group also includes
    establishing the business success criteria that
    will be the metrics used to answer the question
    How will you know you did it?

22
Ch02 Project Life Cycle Processes
The Project Management Process Groups
Develop and gain approval of a general statement
of the goal and business value of the project.
  • Recruiting the project manager
  • Eliciting the true needs of the client
  • Documenting the clients needs
  • Negotiating with the client how these needs
    will be met
  • Writing a one-page description of the project
  • Gaining senior management approval to plan the
    project

23
The Planning Process Group
  • The Planning Process Group includes all processes
    related to answering the question How will you
    do it?

24
Ch02 Project Life Cycle Processes
The Project Management Process Groups
Identify work to be done and estimate time, cost
and resource requirements and gain approval to do
the project.
  • Defining all of the work of the project
  • Estimating how long it will take to complete
    this work
  • Estimating the resources required to complete
    the work
  • Estimating the total cost of the work
  • Sequencing the work
  • Building the initial project schedule
  • Analyzing adjusting the project schedule
  • Writing a risk management plan
  • Documenting the project plan
  • Gaining senior management approval to launch
    the project

25
The Launching Process Group
  • PMBOK calls this the Executing Process Group. It
    is that and more.
  • The Launching Process Group includes all
    processes related to recruiting and organizing
    the team and establishing the team operating
    rules. These processes are preparatory to
    executing the project.
  • The Launching Process Group also includes all of
    the processes related to getting the project work
    started. These would be the executing processes.

26
Ch02 Project Life Cycle Processes
The Project Management Process Groups
Recruit the team and establish team operating
rules.
  • Recruiting the project team
  • Writing the Project Description Document
  • Establishing team operating rules
  • Establishing the scope change management
    process
  • Managing team communications
  • Finalizing the project schedule
  • Writing work packages

27
The Launching Process Group.
  • During the execution of this Process Group, the
    entire team may be coming together for the first
    time. There will be client members and your
    delivery team members present. Perhaps they are
    mostly strangers to one another. At this point,
    they are nothing more than a group. They are not
    yet a team but must become one in very short
    order.
  • the project manager will conduct that first team
    meeting with care, giving team members an
    opportunity to introduce themselves and what they
    bring to the project to the other team members.

28
Ch02 Project Life Cycle Processes
The Project Management Process Groups
Respond to change requests and resolve problem
situations to maintain project progress.
  • Monitoring project performance
  • Establishing the project performance and
    reporting system
  • Monitoring risk
  • Reporting project status
  • Processing scope change requests
  • Discovering and solving problems

29
The Monitoring and Controlling Process Group.
  • Here is where the real work of the project takes
    place.
  • As problems and change requests arise, the
    strength of your relationship with your client
    will in large measure contribute to the success
    or failure of the project.

30
The Closing Process Group
  • The Closing Process Group includes all processes
    related to the completion of the project,
    including answers to the question How well did
    you do?

31
Ch02 Project Life Cycle Processes
The Project Management Process Groups
Assure attainment of client requirements and
install deliverables.
  • Gaining client approval of having met project
    requirements
  • Planning and installing deliverables
  • Writing the final project report
  • Conducting the post-implementation audit

32
Defining the Nine Knowledge Areas
  • The nine Knowledge Areas are part of the PMBOK
    and are all present in every project management
    life cycle.
  • They define the processes within each Process
    Group and often are part of more than one Process
    Group.

33
Ch02 Project Life Cycle Processes
The Nine Project Management Knowledge Areas
  • Integration Management
  • Scope Management
  • Time Management
  • Cost Management
  • Quality Management
  • Human Resources Management
  • Communications Management
  • Risk Management
  • Procurement Management

34
Mapping Knowledge Areas to Process Groups
  • What the Mapping Means
  • This mapping shows how interdependent the
    Knowledge Areas are with the Process Groups.
  • For example, eight of the nine Knowledge Areas
    are started during the Planning Process Group and
    executed during the Monitoring and Control
    Process Group.

35
Ch02 Project Life Cycle Processes
Mapping Knowledge Areas to Process Groups
Knowledge Areas Scoping Process Group Planning Process Group Launching Process Group Monitoring Controlling Process Group Closing Process Group
Integration X X X X X
Scope X X
Time X X
Cost X X
Quality X X X
HR X X X
Communications X X X
Risk X X
Procurement X X X X
36
How to Use the Mapping
  • The mapping provides an excellent blueprint for
    designing your project management approach to a
    project.
  • For example, Procurement Management spans the
    Planning, Launching, Monitoring and Controlling,
    and Closing Process Groups.
  • Therefore, a PMLC model for Procurement
    Management will be effective if it has components
    in each of those Process Groups

37
Definition of a Project Management Life Cycle
  • A project management life cycle (PMLC) is a
    sequence of processes that includes scoping,
    planning, launching, monitoring, controlling, and
    closing the projects to which it applies.

38
Ch02 Project Life Cycle Processes
The Project Management Life Cycle (PMLC)
  • Contrary to Public Opinion Process, Groups are
    not a PMLC.
  • Process Groups will be mapped to form Complex
    PMLCs.
  • by properly sequencing and perhaps repeating
    some Process Groups, you can define PMLCs that
    are project management methodologies. So the
  • Process Groups are the building blocks of project
    management methodologies. the processes within a
    Process Group are the detailed building blocks of
    the phases of the PMLC.

39
Integration Management
  • This knowledge area addresses the glue that links
    all of the deliverables from the Process Groups
    into a unified whole.

40
Scope Management
  • The major focus of the Scope Management Knowledge
    Area is the identification and documentation of
    client requirements.
  • This linkage begins with the project description
    document and extends to the project plan and its
    execution, including monitoring progress against
    the project plan and the integration of changes,
    and finally through to project closure.

41
Ch02 Project Life Cycle Processes
Scope Management Client Wants vs. Client Needs
What your client wants may not be what your
client needs.
42
Scope Management
  • Following requirements gathering and
    documentation, you choose the best-fit project
    management life cycle and develop the Work
    Breakdown Structure (WBS) that defines the work
    to be done to deliver those requirements.
  • That prepares the team and the client with the
    information they need to estimate time, cost, and
    resource requirements.
  • The Scope Management Knowledge Area overlaps the
    Scoping and the Planning Process Groups.

43
Time Management
  • Time management includes both a planning
    component and a control component.
  • The planning component provides time estimates
    for both the duration of a project task (that is,
    how long will it take in terms of clock time to
    complete the task) and the actual effort or labor
    time required to complete the task.
  • The duration is used to estimate the total time
    needed to complete the project.
  • The labor time is used to estimate the total
    labor cost of the project.

44
Time Management.
  • The control component is part of the Monitoring
    and Controlling Process Group and involves
    comparing estimated times to actual times as well
    as managing the schedule and cost variances.

45
Cost Management
  • Cost management includes both a planning
    component and a control component.
  • The planning component includes building the
    project budget and mapping those costs into the
    project schedule. This provides a means of
    controlling the consumption of budget dollars
    across time.
  • Variance reports and earned value reports are
    used in the Monitoring and Controlling Process
    Group.

46
Ch02 Project Life Cycle Processes
Quality Management Definition of Quality
  • Fit for use
  • Meets all client requirements
  • Delivered on time within budget and according to
    client specifications

delight the client ??
Quality refers to meeting agreed requirements not
exceeding them.
47
Ch02 Project Life Cycle Processes
Quality Management Types of Quality
  • Process Quality
  • The quality of the project management process
    that produced the product
  • Product Quality
  • The quality of the deliverables from the project

48
Ch02 Project Life Cycle Processes
Quality Management Consists of
49
Ch02 Project Life Cycle Processes
Quality Planning
Determine relevant quality standards for the
project and what you can do to satisfy
them These may be external to the organization
(federal or agency quality requirements) or
internal (company policies and guidelines). In
addition, there will be project-specific
requirements that must be met. Quality planning
must integrate all of these into a cohesive
program.
50
Ch02 Project Life Cycle Processes
Quality Assurance
Quality assurance includes activities that ensure
compliance to the plan.
51
Ch02 Project Life Cycle Processes
Quality Control
  • Monitor project performance to determine
    compliance to quality standards and how to
    eliminate non-compliance.
  • This will be accomplished by using project
    management tools, templates and processes.

52
Human Resource Management
  • Staff development is one area where project
    manager and the line manager share
    responsibility.
  • The line manager is responsible for assigning
    people to projects in accordance with each
    persons skill and competency profile as well as
    his or her career and professional development
    plans.
  • Once a person is assigned to a project, it is
    then the project managers responsibility to make
    assignments in accordance with the persons skill
    and competency profile and their professional
    development plans.

53
Human Resource Management.
  • Having motivated team members is in the best
    interest of the project, the project manager, and
    the organization.
  • When you align peoples interests and
    professional development needs to their project
    assignments, you gain a stronger commitment from
    the team members.

54
Human Resource Management.
  • Projects as Motivation and Development Tools
  • Not everyone can be motivated.
  • In most cases all that the manager can do is
    create an environment in which the subordinate
    might be motivated and then hope that he or she
    is.
  • Project manager must create a working environment
    that is conducive to and encourages the
    development of the team members, leaving it up to
    them to respond positively.

55
Human Resource Management.
  • Motivators and Hygiene factors
  • Motivators are behaviors or situations that have
    a positive impact on the worker they motivate
    the worker to better performance.
  • Hygiene factors, on the other hand, are things
    that, by their absence, have a negative impact on
    performance, but dont necessarily motivate the
    worker if they are present. For example, workers
    expect a reasonable vacation policy to not have
    one acts as a demotivator. Conversely, having a
    good vacation policy does not necessarily
    motivate the worker.

56
Ch02 Project Life Cycle Processes
Human Resources Management
  • Projects as Motivators
  • Achievement
  • Recognition
  • Advancement and Growth
  • Responsibility
  • Work Itself
  • Hygiene Factors
  • Company Policy
  • Administrative Practices
  • Working Conditions
  • Technical Supervision
  • Interpersonal Relations
  • Job Security
  • Salary

57
Human Resource Management.
  • Motivators and Hygiene factors
  • Motivators are related to the job, specifically
    to its intrinsic characteristics, whereas hygiene
    factors are related to the environment in which
    the job is performed.
  • The good news is that the manager has some amount
    of control over the motivators relating to the
    job.
  • The bad news is that the hygiene factors, being
    environmental, are usually beyond the control of
    the project manager.

58
Human Resource Management.
  • Motivators and Hygiene factors.
  • As a project manager, you can bring hygiene
    factors to the attention of your senior
    management, but youre otherwise powerless to
    change them.

59
Motivating Factors
  • The following is a combined list from highest
    motivator to lowest motivator
  • Challenge
  • Recognition
  • Job Design
  • Skill Variety
  • Task Identity
  • Task Significance
  • Autonomy
  • Feedback

60
Motivating Factors
  • The motivators that are high on the list tend to
    be intrinsic to the job, such as
  • providing opportunities for advancement and
  • recognition,
  • whereas the demotivators, which are lower on the
    list, tend to be environmental factors such as
  • working conditions (for example, parking areas)
    and
  • company policy (for example, sick leave and
    vacation time).

61
Motivating Factors
  • Several of the motivators are directly controlled
    or influenced by actions and behaviors of the
    project manager regarding the work that the team
    member will be asked to do. They are as follows
  • Challenge
  • Recognition
  • Job Design

62
Challenge
  • Professionals respond to a challenge
  • Professionals dread nothing more than practicing
    skills, long since mastered, over and over again.

63
Recognition
  • Professionals want to know that they are
    progressing toward a professional goal.
  • Publicly and personally recognizing achievements
    and following with additional challenges tells
    the professional that his or her contribution is
    valued.
  • Recognition, therefore, does not necessarily mean
    dollars, promotions, or titles.

64
Job Design
  • The following five dimensions define a job
  • Skill variety
  • Task identity
  • Task significance
  • Autonomy
  • Feedback

65
Skill variety
  • Jobs that do not offer much task variety or the
    opportunity to learn and practice new skills
    become boring for most people
  • This variety, at the very least, can provide a
    diversion from what otherwise would be a tedious
    and boring workday.
  • It can also provide a break during which the
    person can learn a new skill.

66
Task identity
  • People need to know what they are working on.
  • The project manager should help them understand
    their work in relation to the entire project.
  • Knowing that their task is on the critical path
    will affect their attitude and the quality of
    their work.

67
Task significance
  • workers ask themselves questions such as these
  • Does it make any difference if I am successful?
  • If I am late, will anybody notice?
  • Just how important is my work to the overall
    success of the project?
  • Am I just doing busywork to pass the time?
  • Team members need to know whether their effort
    and success make any difference to the success of
    the project.

68
Autonomy
  • Professionals want to know what is expected from
    them what are the deliverables?
  • They dont want to hear every detail of how they
    will accomplish their work.
  • They want to make that decision themselves.
  • They want to exercise their creativity. They want
    freedom, independence, and discretion in
    scheduling their work and determining the
    procedures they will follow to carry it out.

69
Feedback
  • Good, bad, or indifferent, professionals want to
    know how effective they are in their work.

70
Communication Management
  • At the heart of many of the top ten reasons why
    projects fail is poor communications.
  • It is not difficult to plan an effective
    communications management process, but it seems
    to be very difficult to execute that plan.
  • A good communications management process will
    have provisions in the process that answer the
    following questions
  • Who are the project stakeholders?
  • What do they need to know about the project?
  • How should their needs be met?

71
Who Are the Project Stakeholders?
  • Any person or group that has a vested interest in
    the project is a stakeholder.
  • Those who are required to provide some input to
    the project affect the project and are therefore
    stakeholders. They may not be willing
    stakeholders, but they are stakeholders
    nevertheless.
  • Those who are affected by the project are
    stakeholders.
  • Often they are the same group requesting the
    project, in which case they will be willing
    stakeholders.
  • There will also be unwilling stakeholders who are
    affected by the project but had little or no say
    in how the project actually delivered against
    stated requirements.

72
What Do They Need to Know about the Project?
  • There will be a range of concerns and questions
    coming from every stakeholder group.
  • What input will I be required to provide the
    project team?
  • How can I make my needs known?
  • When will the project be done?
  • How will it affect me?
  • Will I be replaced?
  • How will I learn how to use the deliverables?
  • Your communications management plan will be
    effective only if it accounts for each group and
    their individual needs.

73
How Should Their Needs Be Met?
  • Chapter 5 provides all of the details on building
    an effective communications management plan.

74
Ch02 Project Life Cycle Processes
Risk Management The Life Cycle
  • What are the risks?
  • What is the probability of loss
  • that results from them?
  • How much are the losses likely to
  • cost?
  • What might the losses be if the
  • worst happens?
  • What are the alternatives?
  • How can the losses be reduced or
  • eliminated?
  • Will the alternatives produce other
  • risks?

Effective project managers treat risk management
as a dynamic part of every project
75
Risk Management
  • In project management, a risk is some future
    event that happens with some probability and
    results in a change, either positive or negative,
    to the project.
  • For the most part, risk is associated with loss,
    at least in the traditional sense.
  • The result might be a cost increase, a schedule
    slippage, or some other catastrophic change.
  • The cost of loss can be estimated. The estimate
    is the mathematical product of the probability
    that the event will occur and the severity of the
    loss if it does.

76
Risk Management.
  • This estimate will force the project manager to
    make a choice about what to do, if anything, to
    mitigate the risk and reduce the loss that will
    occur.
  • This estimate is the basis of a series of choices
    that the project manager has to make.
  • First of all, should any action be taken? If the
    cost of the action exceeds the estimated loss, no
    action should be taken. Simply hope that the
    event doesnt occur.
  • The second choice deals with the action to be
    taken. If action is called for, what form should
    it take?

77
Risk Management.
  • Some actions may simply reduce the probability
    that the event will occur. Other actions will
    reduce the loss that results from the occurrence
    of the event.
  • It is usually not possible to reduce either the
    probability or the loss to zero.

78
Ch02 Project Life Cycle Processes
Risk Management Risk Identification
  • Technical risks
  • Project management risks
  • Organizational risks
  • External risks

79
Ch02 Project Life Cycle Processes
Risk Management Risk Assessment
  • What is the probability of loss
  • that results from them?
  • How much are the losses
  • likely to cost?
  • What might the losses be if
  • the worst happens?

If you are certain that an event will occur, its
not a risk its a certainty. This type of event
isnt handled by risk management. Because you are
sure that it will occur, no probability is
involved. No probability, no risk.
80
Risk Assessment
  • There are two major factors in assessing risk.
  • The first one is the probability that the risk
    event will occur.
  • The second part of risk assessment is the impact
    the risk will have on the project.
  • To assign a numerical score to a risk event, you
    simply multiply the probability of the risk
    occurring times the impact that the events
    occurrence would have.

81
Ch02 Project Life Cycle Processes
Risk Management Risk Mitigation
  • What are the alternatives?
  • How can the losses be
  • reduced or eliminated?
  • Accept
  • Avoid
  • Contingency planning
  • Mitigate
  • Transfer
  • Will the alternatives produce
  • other risks?

82
Risk Mitigation
  • The next step in risk management is to plan, as
    much as possible, the responses that will be used
    if the identified risks occur.
  • you should have some type of action in mind. Its
    not enough to simply list the risks you need to
    plan to do something about the risk events should
    they occur.
  • Examples
  • late delivery of key equipment.
  • key person leaves the company before finishing
    the work

83
Risk Mitigation
  • There are five different risk responses
  • Accept. There is nothing that can be done to
    mitigate the risk. You just have to accept it and
    hope it does not occur.
  • Avoid. The project plan can be modified so as to
    avoid the situation that creates the risk.
  • Contingency planning. If the risk event occurs,
    what will you do?
  • Mitigate. What will you do to minimize the impact
    should the risk event occur?
  • Transfer. Pass the impact should the risk event
    occur (i.e., buy an insurance policy).

84
Ch02 Project Life Cycle Processes
Risk Management The Life Cycle
  • Risk Log

Risk Log This document lists all risks that you
want to manage, identifies who is supposed to
manage the risk, and specifies what should be
done to manage the risk event.
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Ch02 Project Life Cycle Processes
Procurement Management The Life Cycle
professional project manager should ensure that
the organization is getting the right materials
at the best cost or the best services at the best
cost.
86
Vendor Solicitation
  • prepare procurement documents for solicitation.
    These documents, called Requests for Proposals
    (RFPs), are what vendors use to determine if and
    how they should respond to your needs.
  • The clearer the RFP, the better off you and the
    vendor are, because you will be providing basic
    information about what you want
  • Many organizations have a procurement office.

87
Vendor Solicitation
  • If you dont have a procurement office, you need
    to prepare a document to send to the vendors.
  • Youll want to have a lead writer (preferably not
    you) and
  • someone from the legal department to ensure that
    what youve asked for in the document is clear
    and forms the basis for a contract between you
    and the vendor.

88
Vendor Evaluation
  • Before you even start reading the responses to
    your proposal, set the standards for choosing a
    given vendor.
  • These criteria may be based on
  • technical expertise,
  • experience, or
  • cost,
  • but whatever criteria you use, it must remain the
    same for all of the vendors.

89
Vendor Selection
  • The result of vendor evaluation usually does not
    produce a single best choice.
  • There will most likely be several competing
    vendors for all or parts of the work.
  • So you have another decision to make and that is
    which vendor or vendors will win your business.

90
Vendor Contracting
  • Contract management involves the following
  • The vendor must supply you with deliverable dates
    so that you can determine whether the project is
    on time.
  • The vendor should also supply a WBS detailing how
    the vendor breaks down the scope of the project
    and showing the tasks that make up the completion
    of a deliverable.
  • The project manager should hold regular status
    meetings to track progress. Meetings should be
    formal and occur on specified dates. They should
    occur at least once a week. They will give you an
    idea of how the vendor is proceeding in
    fulfilling the contract

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Ch02 Project Life Cycle Processes
Procurement Management Life Cycle
Vendor Solicitation
  • Set vendor expectations
  • Monitor progress and performance
  • Conduct acceptance testing
  • Transition from vendor to client

Vendor Evaluation
Vendor Selection
Vendor Contracting
Vendor Management
92
Vendor Management
  • 1. There should be a clear understanding of when
    the project is finished.
  • When you write your RFP, state clearly how the
    project finishes. That is often done by writing a
    project acceptance test procedure. It is nothing
    more than a checklist of what the client views as
    a completed project and what the final
    deliverable is.

93
Vendor Management
  • 2. After the contract is closed, make sure you
    file all of the materials used during the
    project.
  • These materials include
  • the original RFP,
  • the project baseline,
  • the scope statement,
  • the WBS,
  • the various plans used to manage the project, and
  • all changes, including those that were requested
    but turned down.
  • 3. Put all this information into a large file and
    keep it
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