Summary

This chapter's focus was on planning for project resources. Several aspects are involved in these planning activities, including procuring goods and services, planning human resources, and defining the activities in which human resources will be involved.

This chapter started with the Plan Procurements process. This process identifies the goods or services you're going to purchase from outside the organization and determines which project the project team needs can meet. This involves tools and techniques such as make-or-buy decisions, expert judgment, and contract types. The procurement management plan is one of the outputs of this process and describes how procurement services will be managed throughout the project. The procurement SOW (another output of this process) describes the work that will be contracted.

In our discussion of contract types, we covered fixed-price, cost plus, and time and materials contracts and the benefits and risks of using them.

The Develop Human Resource Plan process identifies and assigns roles and responsibilities and reporting relationships. Many times the roles and responsibilities assignments are depicted in a responsibility assignment matrix (RAM) or a RACI chart. The staffing management plan describes how and when project team members will be acquired and is part of the human resource plan output of this process.

Plan Quality targets the quality standards that are relevant to your project. The quality management plan outlines how the project team will enact the quality policy.

You need to consider the cost of quality when considering stakeholder needs. Four men led to the rise of the cost of quality theories. Crosby is known for his zero defects theory, Juran for the fitness for use theory, Deming for attributing 85 percent of cost of quality to the management team, and Shewhart for the Plan-Do-Check-Act cycle. The Kaizen approach says that the project team should continuously be on the lookout for ways to improve the process and that people should be improved first and then the quality of the products or services. TQM and Six Sigma are examples of continuous improvement techniques.

Cost-benefit analysis considers trade-offs in the Plan Quality process. Benchmarking compares previous similar activities to the current project activities to provide a standard to measure performance against. Design of experiments is an analytical technique that determines what variables have the greatest effect on the project outcomes. This technique equips you with a statistical framework, allowing you to change all the important variables at once instead of changing one variable at a time.

Cost of quality involves three types of costs: prevention, appraisal, and failure costs; the latter is also known as the cost of poor quality. Failure costs include the costs of both internal and external failures.

The process improvement plan is a subsidiary plan of the project management plan and targets inefficiencies in a process or activity. The quality baseline is used to document the quality objectives of the project and is used as a basis for future Quality processes.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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