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Resource Person:
Ayesha Zahid
Adeel YounisUR
 Learning
Objectives By the end of this lesson, you will be able to understand

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1. Schedule Optimization Tools

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2. Resource Optimization Techniques

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3. How to deal with over constrained budget

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4. Documenting Baseline

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5. Scope Creep

LE ADE 6. Change control document

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 Resource • Resource optimization is the set of processes and
methods to match the
Optimization available resources (human, machinery, financial)

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with the needs of the organization in order to

OR
achieve established goals.

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Resource Optimization Techniques are

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• * Resource smoothing is "a resource

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optimization technique in which free and total
float are used without affecting the critical path."
LE ADE • * Resource leveling is "a resource optimization

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technique in which adjustments are made to the
project schedule to optimize the allocation of
resources and which may affect the critical path."
 Optimization
Resource

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 Schedule Schedule optimization is the process of making
sure each individual task or action in a schedule is
Optimization aligned with your ultimate goal. ... Delivery

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companies often use schedule optimization to

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make sure a delivery route is laid out with the least

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possible mileage (and thus lowest fuel cost).

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Schedule Optimization Tools:

LE ADE • Fast Tracking

• Crashing

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• Scope Reduction
Fast Tracking
Fast-tracking is a technique where activities that
would have been performed sequentially using the

SU NIS
OR
original schedule are performed in parallel.
In other words, fast tracking a project means the

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activities are worked on simultaneously instead of

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waiting for each piece to be completed separately.

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Fast Tracking is not always an option. If Activity B

LE ADE was the activity to pack clothes for a trip, and

Activity C is drive to our holiday destination, then

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Fast Tracking can not be used as we cannot both
pack and drive in parallel, not even partially.
Crashing Project crashing is the method for shortening
the project duration by reducing the time of one or more
critical activities to less than their normal time.
Crashing is achieved by devoting more resources. Thus

SU NIS
OR
the cost associated with the project is increased.

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 Scope • If Crashing or Fast Tracking are not options for
compressing the project schedule, then the Project
Reduction Manager has one more option they can explore with

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the Sponsor and management. They can recommend

OR
that the scope of work be reduced.

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• By reducing the scope of work, there is a likely impact

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on the reduction of time needed to complete the
project.

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• This of course means that the original set of
LE ADE deliverables agreed to can't be delivered.

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• If management agrees to the reduction in scope, this
must be captured and documented in the list of
activities, the WBS, the Scope Statement, the
Requirements documentation, and the Project Charter.
 Over • None of the Triple Constraints can be traded off for
the other.
Constrained • This is a high-risk situation for a Project Manager

SU NIS
Projects

OR
who will need to use their interpersonal relationship
skills and negotiation skills to demonstrate to

ER OU
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management that the project is over constrained

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and will not have a likelihood of success.

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• Project Manager needs to ask the Sponsor and other
Stakeholders to assist with understanding which two
LE ADE constraints are the most important.

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• Constraint can be manipulated by the Project
Manager, then the project has the opportunity to
succeed.
Documenting • Once the scope, schedule, and budget have been
completed and approved by the key project
Baseline Stakeholders, it must be baselined.

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• The baseline represents the agreed-to schedule,
scope, and budget.

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• It is baselined at the end of the Planning Phase once

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the entire Project Plan is complete.

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• It is then used as the basis for monitoring and

LE ADE controlling the project during the Execution Phase.

• At a minimum, the work products that are baselined

UR
are: the Scope Statement, the Requirements
document, the WBS, the schedule, and the time-
phased budget.
Scope Creep • Scope Creep is "the uncontrolled expansion to
product or project scope without adjustments to
time, cost, and resources."

SU NIS
OR
• Scope Creep occurs when the project takes on
additional work that was not in the originally

ER OU
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defined scope of work (Requirements, Scope

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Statement or WBS).

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• The difference between Scope Creep and Scope
Change is that Scope Change initiates and
LE ADE approves changes through the defined change
control process. A Scope Change was the "give

UR you a new proposal" option in our poll.

 • * Change Control is "a process whereby
Change Control modifications to documents, deliverables, or

Documentation baselines associated with the project are identified,

documented, approved, or rejected."

SU NIS
OR
• Simply put, it means that no changes to the

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approved Project Plan are made unless there is
written notice and approval.

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• The written notice is called a Change Order (or

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Change Request).

LE ADE • * A Change Order/Request is "a formal proposal to

modify any document, deliverable, or baseline."

UR • The collection of Change Orders and their disposition

is maintained as part of the Project Plan.
• Approved Change Orders become part of the new
project baseline.
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LE ADE
Ayesha Zahid
Adeel Younis
UR
Resource Person:
 Learning
Objectives By the end of this lesson, you will be able to understand

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OR
1. How to Identify Risks

ER OU
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2. How to Perform Risk Analysis

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3. How to Deal with Qualitative Risk

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4. How to Manage Quantitative Risk

LE ADE 5.
6.
Plan & Implement Risk Responses
How to Develop Risk Register

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 • Risks are uncertainties or events that planning can not
completely overcome or control.
• Project Managers must analyze and work to identify

SU NIS
OR
ways to control the impact of the most significant
risks, proactively.

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• Activities to control the impact of potential risks

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become part of the project scope, the project budget,

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and the project schedule.
A risk is "an uncertain event

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or condition that, if it occurs,
has a positive or negative
Sometimes issues are confused with risks.
• A key distinction is that an issue is a problem that has

UR
effect on one or more project occurred and must be addressed. A risk is something
objectives." that may occur in the future - an uncertain event.
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Impact of Risk on Project
 vs
Risk

Amount
at Stake

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 Risk Identification
• Risk planning begins by identifying possible risks that could impact the project.

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• The Project Manager, Project team, and Stakeholders should all participate in identifying

OR
possible risks for a project.

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• Risks can include technological, economic, cultural, environmental, organizational, external,
internal, business, resources, schedule, budget, profit, quality of deliverables, etc.

PE
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Some additional techniques to help identify risks are:

CT EL
• Review historical records of similar projects
LE ADE
• Use a checklist of common risks that can occur
• Brainstorm with the team what possible risks might occur

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• Review the Project Scope (WBS and activities), schedule, and budget for any assumptions that
could manifest themselves into risks or any risks you identified outright when creating these
documents
 Risk Identification Example
Let's look at an example. If our project is to build a house, what possible uncertainties can there be?
Are there environmental risks? Yes!

SU NIS
OR
Bad weather can cause a delay in the project schedule
Bad weather can damage exposed building materials on the site, causing project delays

ER OU
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Poor soil conditions can cause a delay in excavation

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Exceptionally good weather could allow the project to finish ahead of schedule

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Are there possible scope risks? Yes!
Client can change the design, causing a schedule delay and possible cost increase
LE ADE
Are there possible economic or financial risks? Yes!
Material costs could be higher than anticipated, causing a reduction in profit

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Material costs could be lower than anticipated, causing an increase in profit
Client may not make payments on time, causing a delay in the schedule and possible profit loss
Are there quality risks? Yes!
Building materials from suppliers could be defective causing poor quality construction or collapse
 • The challenge for most Project Managers is that

Risk Analysis there are many more risks identified than can
possibly be addressed or responded to.

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OR
• Therefore, it is important in the Planning Phase to
prioritize risks so that the greatest risks can be

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addressed.

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• Not all risks have the same impact on the project

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nor do they have the same probability of
occurrence.
LE ADE • We use risk analysis to help prioritize the most

UR
detrimental risks that require attention by the
project.
• There are two types of risk analysis:
Qualitative and Quantitative.
 Qualitative • Qualitative risk analysis allows us to prioritize risks
based on their probability of occurring and their
Risk Analysis impact, and sometimes also how easy it is to

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Strategies detect a possible risk.

OR
• Typically this information is collected from

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Stakeholders and the project team with each risk

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being assessed against a scale for probability of
occurring, impact, and ease of detection.

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Qualitative Risk Analysis has two strategies
LE ADE 1. Probability and Impact Matrix

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2. Risk Priority Number (RPN).
Qualitative Risk Analysis with Probability of Occurrence

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 Probability

Matrix
and Impact

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Risk Priority • Formula: The Risk Priority Number, or RPN, is a
numeric assessment of risk assigned to a process,
Number or steps in a process, as part of Failure Modes and

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(RPN) Effects Analysis (FMEA), in which a team assigns

OR
each failure mode numeric values that quantify

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likelihood of occurrence, likelihood of detection,
and severity of impact.

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Risk Priority Impact:

Number 1 - No impact
2 - Not significant impact

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(RPN)

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3 - May or may not be significant impact
4 - Significant impact

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5 - Severe impact Ease of Detection:

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1 - Definite detection

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Probability: 2 - Easy to detect

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1 - Won't happen 3 - May or may not detect

LE ADE 2 - Not likely to occur 4 - Not easy to detect

3 - May or may not occur 5 - Impossible to detect

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4 - Likely to occur
5 - Definitely will occur
 Risk Priority
Number
(RPN)

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 Risk Priority Risk 1: Guest list may not be complete, accurate, and
available on time, causing the party objectives to not be
Number achieved.

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(RPN)

OR
Risk 2: Material costs could be higher than planned,
causing a budget overrun.

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Risk 3: If there is insufficient interest from the guests in any

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prospective business ventures, the project may not achieve
For each of the Four risks,

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5 prospective sales orders.
use the scale to select the

LE ADE
probability, impact, and
detection rating. Then
Risk 4: If party equipment or supplies fail to operate as
expected or operate with defects, the project objective for

UR
calculate the RPN. party guests to remain for at least 2 hours will be in
jeopardy.
Risk Priority Risk Probability Impact Detection RPN

Number Risk 1 3 4 2 24

(RPN)

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OR
Risk 2 3 4 3 36

Risk 3 3 3 4 36

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Risk 4 3 4 4 48

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Risk Probability Impact Detection RPN

LE ADERisk 4

Risk 2
3

3
4

4
4

3
48

36

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Risk 1
3

3
3

4
4

2
36

24
 Risk Now that we have identified, analyzed, and prioritized
our risks, we can begin to build risk response plans.
Response A risk response is a proactive action that we will take to

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Plan &

OR
address the risk in advance with the intent to avoid it
outright, to mitigate or lessen its impact and/or
Contingency

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probability, or to transfer the risk to a third party.

Budget

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There may also be risks we choose to accept because

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they have a low RPN or low probability and impact, or
there is no feasible way to mitigate, avoid, or transfer
LE ADE the risk.

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All risks identified should have a strategy for handling
them, but not all strategies require a preventative
action plan be defined (i.e. the "accepting" strategy
purposefully has no preventative action taken).
Risks With For risks with possible negative impacts to the project, we
have four choices as to a strategy for handling them.
Negative • Accept - Accept that the risk may occur and decide not

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Impact
to take any preventative action (no response plan will

OR
be provided). We will monitor the risk in our regular

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status meetings for any possible changes. Note that
there is a difference between actively choosing to

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accept a risk and ignoring a possible risk.

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• Mitigate - Take preventative action to reduce the
impact and/or probability of the risk occurring. Mitigate is
LE ADE the most commonly used risk response strategy. Some
examples include changing the project to implement

UR
additional processes for testing or prototyping, providing
additional training, choosing higher quality materials or
resources, or reducing complexity of the project product
or processes.
Risks With • Avoid - Take preventative action to completely avoid
the chance that the risk can occur. Some examples
Negative include changing the project objectives, project result,
or the project scope to remove the threat.

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Impact

OR
• Transfer - Take preventative action to transfer the risk

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to a third party. This option doesn't eliminate or
reduce the risk, it just transfers it to someone who may

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be better equipped to deal with it. Usually this requires

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extra budget to be put in place. Some examples would
be having the client be responsible for the work
LE ADE (instead of the project), purchasing insurance,
purchasing a warranty, or contracting with a supplier

UR
on a fixed price basis.
Risks With Sometimes risks can represent opportunities to the project. In
such cases we also have four choices for how we may choose
Positive to deal with the possible upside of a risk.

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Impact
• Accept - Accept that the risk may occur and decide not to

OR
take any action. We will monitor the risk in our regular

ER OU
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status meetings for any possible changes. This means that if
the opportunity presents itself we be pleasantly surprised,

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but no proactive response plan will be put in place.

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• Enhance - Be proactive to improve the chances of the
impact and/or probability of the risk occurring.
LE ADE • Exploit - Be proactive to attempt to ensure that the risk

UR
does occur.
• Share - Be proactive to transfer the risk to a third party or
share the risk with a third party in an attempt to realize the
opportunity.
 Response
Plan Example
Risk

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Reusing Risk • Risk strategies could be reused on future similar
projects and become part of the standard project
Response approach for this company.

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Strategies

OR
• In other words, identify the strategy as a best
practice and update their standard contract to

ER OU
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always include a payment schedule and

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penalization clause. (For the example discussed)

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• In this way, the learning from past projects can
enhance the performance of future similar
LE ADE projects by embedding in risk prevention
strategies from the start.

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Quantitative • By performing quantitative risk analysis we must quantify
the risks to determine contingency funds for risks that may
Analysis & occur in the project.

SU NIS
Contingency
• Once our risks are identified, analyzed, and strategized for

OR
responses, we can determine how much contingency to

ER OU
RI
place in the project budget.
• Projects that are using known technologies with highly

PE
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experienced project personnel will have less risk than a

CT EL
project implementing a new product or using new
The Expected Monetary
technologies with inexperienced personnel.
LE ADE
Value (EMV) is how much
money you can expect to • As such, the contingency budget should be determined

UR
make from a certain based on the risk associated with each specific project and
the risk tolerance of the organization.
decision.
• In order to determine a contingency budget, an approach
called Expected Monetary Value (EMV) can be used.
 Monetary
Value (EMV)
Expected

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 Risk • It is important to note that risks change over the
life of a project.
Monitoring • The ability of the Project Manager and project

SU NIS
and Control

OR
team to prepare a comprehensive list of risks is
critical.

ER OU
RI
• If the risks identified are weak or incomplete, then

PE
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the risk plan will also be weak and incomplete.

CT EL
• Therefore, it is critical in the Planning Phase to

LE ADE ensure that the project team and other project

Stakeholders are involved in the identification and

UR
strategy for risks and their responses.
Risk Register • The Risk Register (or Risk Log) is key to the
identification, monitoring, and control of the risks
over the life of the project and must be considered

SU NIS
a living document.

OR
• * A Risk Register is "a repository in which outputs

ER OU
RI
of risk management processes are recorded."

PE
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• Risks should be reviewed on a regular basis during

CT EL
Project Execution when the project status is
reviewed in order to determine what risks should
LE ADE be closed, what new risks may need to be opened,
and how to respond to those risks.

UR • The Risk Register is used for this purpose.

Risk Register and Response Plans

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OR
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 Basic Quality Tool Descriptions
Cause and Effect Diagram: "a decomposition technique that helps trace an undesirable
effect back to its root cause."

SU NIS
OR
Flowchart: "the depiction in a diagram format of the inputs, process actions, and outputs

ER OU
of one or more processes within a system."

RI
Checksheet: "a tally sheet that can be used as a checklist when gathering data."

PE
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Pareto Diagram: "a histogram, ordered by frequency of occurrence, that shows how many

CT EL
results were generated by each identified cause."
LE ADE
Histogram: "A bar chart that shows the graphical representation of numerical data."
Control Chart: "a graphic display of process data over time and against established control

either control limit.“ UR

limits, which has a center line that assists in detecting a trend of plotted values toward

Scatter Diagram: "a correlation chart that uses a regression line to explain or to predict
how the change in an independent variable will change a dependent variable."
LE ADE
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Basic Quality
Tools
 Project 1. Management Reviews: these are typically summary level
reviews of the quality metrics, the projects major
Reviews & accomplishments, and status. The frequency of these reviews

SU NIS
depends on the guidelines used within an organization. A
Types

OR
monthly frequency is common. Management reviews can also
include phase gate reviews. * A phase gate review is "a review

ER OU
RI
at the end of a phase in which a decision is made to continue to

PE
Project reviews conducted

Y
the next phase, to continue with modification, or to end a
to monitor and control the project."

CT EL
quality performance and 2. Team Reviews: these are typically more detail-level reviews of
LE ADE
expectations of the project
and the product (result or
the quality metrics, project accomplishments, progress, and
performance, with an emphasis on how efficient the processes

UR
service) being produced. are for managing the project. Issues and risks are also reviewed
in these meetings in detail to ensure an acceptable closure rate
and resolution as well as review corrective actions needed for
metrics outside their variance limit. These reviews could be held
as often as daily, however weekly is common.
 Project 3. Customer Reviews: these are typically summary
level reviews with a focus on the production and
Reviews & acceptance of the deliverables of the project. These
reviews discuss any quality concerns related to the

SU NIS
Types

OR
deliverables as well as provide a general review of project
status. These reviews could happen monthly or timed

ER OU
RI
with the production of key deliverables over the life of the
The reviews are intended to

PE
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project.
provide a mechanism to review

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4. Post Project Reviews: this is a specialized review
the quality metrics as well as to
held during the Project Closing Phase. This review is used
review discussions around
LE ADE
risks, issues, and changes as
they relate to project
to collect feedback from Stakeholders as to what went
well on the project and what could be improved for future

UR
projects. A key outcome of this review is the collection of
performance and to control lessons learned and best practices that can be used in
overall quality. future projects.
Quality A quality audit "is a structured, independent process to
determine if project activities comply with organizational
Audits and project policies, processes, and procedures.“

SU NIS
OR
The purpose of the quality audit is to review the
efficiency of the project and the processes used on the

ER OU
RI
project.

PE
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Audits should not be used to resolve project conflicts or

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issues, as those should be addressed immediately by the
Project Manager as part of the management of the
LE ADE project and leading the team through the project.

UR
Audits are conducted by someone outside of the project,
but typically from within the organization - such as a
member of the Project Management Office.
 Plan

Management
Communication

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LE ADE
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