IS 401 PROJECT MANAGEMENT
LECTURE SEVEN- PROJECT HUMAN RESOURCE
AND PROCUREMENT MANAGEMENT
Semester one, 2017
Divine Word University
The Big Picture
Introduction to Project Project Planning
Management
Defining the Project Scope
Project Planning Schedule Development
Resource Allocation
Cost Estimation & Budgeting
Quality, Risks & Communications Planning
Development of an integrated project plan
Project Controlling
Project Controlling
Track Project Progress
Closing a Project Take Corrective Actions
Scope Management
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Defining the Project HR Management
Todays Topics
Resource Planning
Human Resource Management
Organizational Planning
Staff Acquisition
Resource Loading and Levelling
Team Development
Procurement Management
Procurement Planning
Solicitation Planning
Solicitation and Source Selection
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Resource Planning
Task
Determine what and how much resources are needed
Inputs
Information on similar tasks (internal/external)
Expert judgement (int./ext.)
Availability of resources (iterative process incl. HR and
procurement management)
Output
List of resource requirements to accomplish each
subtasks in your project
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Human Resource Management
People are our most important asset
Project work is actually done by people and not by
methodologies, framework or software
Aims of HR Management:
Recruiting and retaining people with the required skills
Most effective use of people
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Main Processes of HR Management
Initiating Planning Executing Controlling Closing
Human Resource Management
Organizational Team
Planning Development
Staff
Acquisition
Resource
Loading and
Levelling
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Organizational Planning
Organizational planning involves identifying, assigning and
documenting project roles, responsibilities and
reporting relationships.
Outputs:
Project Organization Chart
Roles / Responsibility Matrix
Staffing Management Plan
Describes type and number of people on the project over time
Description in general terms (e.g. Java programmer, Admin staff),
not specific employees
Displayed in the form of resource histogram
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Staff Acquisition
Together with others, especially the HR department, project
managers assign particular employees to their projects or
have to acquire additional staff.
In order to see if there is a need for recruitment, organiza-
tions use staffing plans, which describe:
the number and skills of current employees
the number and skills of employees needed in the future
If there is a gap between current and required skills, the HR
department has close it via training and/or recruiting.
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Resource Loading and Levelling
Once people are assigned to projects, two techniques help
project managers use their project staff most effectively:
Resource loading refers to the amount of resources
required during specific periods of a project
Tool: Histogram1 (shows over/under-allocation)
Resource levelling is used to resolve resource conflicts
(e.g. over-allocation) by delaying certain tasks
Tool: Network diagram (shows slack times of tasks)
Aim: Minimize variations in resource usage overt time
1) In MS Project 2000: Resource Graph
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Resource Levelling Example
A=2 2
B=5
1 4
Workers
Workers
C=3 3
A
6 6
A C
4 B 4
2 B 2 B
C
0 0
2 4 Days 2 4 Days
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Team Development
Aim: Ensure that individual team members work together
as a team to achieve project goals
Ways:
Trainings
Team Building Activities
Physical Challenges
Psychological Preference Indicators (e.g. Myers-Briggs Type
Indicator): help team members learn more about themselves, each
other and how to work with each other
Reward and Recognition Systems
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Procurement Management
Procurement1 means acquiring goods and services from
an outside source.
Advantages and Disadvantages of Outsourcing:
+ Reduce costs (suppliers can use economies of scale)
+ Focus on core business
+ Access to (special) skills and technologies
+ Flexibility
+ Accountability (contracts sharpen the focus on deliverables)
- Loss of control
- Dependency on a particular supplier
- Sharing of core competency / essential information
1) Synonyms: purchasing, outsourcing (frequently used in IT)
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Main Processes of Procurement
Management
Initiating Planning Executing Controlling Closing
Procurement Management
Procurement Solicitation Contract
Planning Receive Close-out
Make-or- Proposals
buy decision
Solicitation Source
Planning Selection
Issue RFP Award
Contract
Contract Admin.
Completion of Work
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Procurement Planning
Task
Determine how, what and when to procure
Inputs
Scope statement
Product description
Market conditions (e.g. prices, no. of vendors)
Assumptions and constraints (e.g external supplier, shippment may
be a constraint).
Tools
Make-or-buy analysis (total life-cyle costs!) Cheaper to build to
buy?
Qualitative analysis (strategic considerations, input from experts)
Output
Make-or-buy decision
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Solicitation Planning
Tasks: - Preparing the solicitation documents:
Request for Proposal (RFP) or Request for Quote (RFQ)
- Determine evaluation criteria for source selection
Sample RFP outline:
I. Purpose of RFP
II. Organizations Background
III. Basic Requirements
IV. Hardware and Software Environment
V. Description of RFP Process
VI. Statement of Work and Schedule Information
VII. Appendices
A. Current System Overview
B. System Requirements
C. Required Contents of Vendors Response to RFP
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Solicitation and Source Selection
Solicitation involves obtaining proposals (bids) from
prospective suppliers. Possible actions include:
Sending out RFPs/RFQs to potential/preferred suppliers
Advertising in newspapers, journals
Meeting with potential suppliers to discuss RFP
Source selection tasks:
Evaluating bidders proposals
Choosing the best one
Negotiating the contract (involve legal experts!)
Awarding the contract
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Summary
Project resource management ensures adequate
resources are provided to get achieve the successful
completion of a project.
Project resource management is also about the effective
management of people to getting a task completed.
Project management processes involves, organisational
planning, staff acquisition, resource loading and levelling
and team development.
Procurement management ensures that careful planning
of resources needed is acquired through market research.
Procurement management involves procurement
planning, solicitation planning, solicitation, and source
selection.
