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The Perform Quantitative Risk Analysis process has the following tools and techniques:
• Expert judgment
• Data gathering
- Interviews
• Interpersonal and team skills
- Facilitation
• Representations of uncertainty •Data analysis
- Simulations
- Sensitivity analysis
- Decision tree analysis
- Influence diagrams

(Earned Value Management)
Variances from the approved baseline will also be monitored:
• Schedule variance. Schedule variance (SV) is a measure of schedule performance expressed as the difference between the earned value and the planned value. It is the amount by which the project is ahead or behind the planned delivery date, at a given point in time. It is a measure of schedule performance on a project. It is equal to the earned value (EV) minus the planned value (PV). The EVM schedule variance is a useful metric in that it can indicate when a project is falling behind or is ahead of its baseline schedule. The EVM schedule variance will ultimately equal zero when the project is completed because all of the planned values will have been earned. Schedule variance is best used in conjunction with critical path methodology (CPM) scheduling and risk management. Equation: SV = EV − PV

The SV and CV values can be converted to efficiency indicators to reflect the cost and schedule performance of any project for comparison against all other projects or within a portfolio of projects. The variances are useful for determining project status.

• Schedule performance index. The schedule performance index (SPI) is a measure of schedule efficiency expressed as the ratio of earned value to planned value. It measures how efficiently the project team is using its time. It is sometimes used in conjunction with the cost performance index (CPI) to forecast the final project completion estimates. An SPI value less than 1.0 indicates less work was completed than was planned. An SPI greater than 1.0 indicates that more work was completed than was planned. Because the SPI measures all project work, the performance on the critical path also needs to be analyzed to determine whether the project will finish ahead of or behind its planned finish date. The SPI is equal to the ratio of the EV to the PV. Equation: SPI = EV/PV

The three parameters of planned value, earned value, and actual cost can be monitored and reported on both a period-by-period basis (typically weekly or monthly) and on a cumulative basis.

(Parametric Estimating)
Parametric estimating uses a statistical relationship between relevant historical data and other variables (e.g., square footage in construction) to calculate a cost estimate for project work. This technique can produce higher levels of accuracy depending on the sophistication and underlying data built into the model. Parametric cost estimates can be applied to a total project or to segments of a project, in conjunction with other estimating methods.

(Interpersonal and Team Skills)
Team building. Team building is conducting activities that enhance the team's social relations and build a collaborative and cooperative working environment. Team building activities can vary from a five-minute agenda item in a status review meeting to an offsite, professionally facilitated event designed to improve interpersonal relationships. The objective of teamb- uilding activities is to help individual team members work together effectively. Team-building strategies are particularly valuable when team members operate from remote locations without the benefit of face-to-face contact.

Informal communication and activities can help in building trust and establishing good working relationships. While team building is essential during the initial stages of a project, it should be a continuous process. Changes in a project environment are inevitable, and to manage them effectively, a continuous or renewed team- building effort may be applied. The project manager should continually monitor team functionality and performance to determine if any actions are needed to prevent or correct various team problems.

Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the time and cost required to deliver that scope, are determined as early in the project life cycle as practically possible. These projects proceed through a series of sequential or overlapping phases, with each phase generally focusing on a subset of project activities and project management processes. The work performed in each phase is usually different in nature from that in the preceding and subsequent phases; therefore, the makeup and skills required of the project team may vary from phase to phase.
Iterative and incremental life cycles are ones in which project phases (also called iterations) intentionally repeat one or more project activities as the project team's understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product. These life cycles develop the product both iteratively and incrementally.
Product life cycle. The series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement.
Project life cycle. The series of phases that a project passes through from its initiation to its closure.

(Control Costs)
Project cost control includes:
• Influencing the factors that create changes to the authorized cost baseline;
• Ensuring that all change requests are acted on in a timely manner;
• Managing the actual changes when and as they occur;
• Ensuring that cost expenditures do not exceed the authorized funding by period, by WBS component, by activity, and in total for the project;
• Monitoring cost performance to isolate and understand variances from the approved cost baseline;
• Monitoring work performance against funds expended;
• Preventing unapproved changes from being included in the reported cost or resource usage;
• Informing appropriate stakeholders of all approved changes and associated costs; and
• Bringing expected cost overruns within acceptable limits.

Characteristics of the Project Life Cycle: Project life cycles can be predictive or adaptive. Within a project life cycle, there are generally one or more phases that are associated with the development of the product, service, or result. These are called a development life cycle. Development life cycles can be predictive, iterative, incremental, adaptive, or a hybrid model. Explanation here is only provided for predictive and iterative life cycles. Refer to Section 1.2.4.1 for the other development life cycles.
In a predictive life cycle, the project scope, time, and cost are determined in the early phases of the life cycle. Any changes to the scope are carefully managed. Predictive life cycles may also be referred to as waterfall life cycles. In an iterative life cycle, the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified as the project team's understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product.
While project cost and staffing levels can be steady, for larger and complex projects, costs and staffing levels are subject to change and therefore not likely to be steady throughout the project life cycle.

Monitor and Control Project Work: Outputs
.1 Work performance reports
.2 Change requests
.3 Project management plan updates
.4 Project documents updates

Close Project or Phase: Outputs
.1 Project documents updates
.2 Final product, service, or result transition
.3 Final report
.4 Organizational process asset updates

(Organizational Process Assets)
Cost-reimbursable contracts. This category of contract involves payments (cost reimbursements) to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit. This type should be used if the scope of work is expected to change significantly during the execution of the contract.

Variations can include:
• Cost plus fixed fee (CPFF). The seller is reimbursed for all allowable costs for performing the contract work and receives a fixed-fee payment calculated as a percentage of the initial estimated project costs. Fee amounts do not change unless the project scope changes.

(Data Representation)
Stakeholder engagement assessment matrix.
A stakeholder engagement assessment matrix supports comparison between the current engagement levels of stakeholders and the desired engagement levels required for successful project delivery.

The engagement level of stakeholders can be classified as follows:
• Unaware. Unaware of the project and potential impacts.
• Resistant. Aware of the project and potential impacts, but resistant to any changes that may occur as a result of the work or outcomes of the project. These stakeholders will be unsupportive of the work or outcomes of the project.
• Neutral. Aware of the project, but neither supportive nor unsupportive.
• Supportive. Aware of the project and potential impacts, and supportive of the work and its outcomes.
• Leading. Aware of the project and potential impacts, and actively engaged in ensuring that the project is a success.

Key concepts for Project Scope Management include:
• Scope can refer to product scope (the features and functions that characterize a product, service, or result), or to project scope (the work performed to deliver a product, service, or result with the specified features and functions).
• Project life cycles range along a continuum from predictive to adaptive or agile. In a life cycle that uses a predictive approach, the project deliverables are defined at the beginning of the project and any changes to the scope are progressively managed. In an adaptive or agile approach, the deliverables are developed over multiple iterations where a detailed scope is defined and approved for each iteration when it begins.
• Completion of the project scope is measured against the project management plan. Completion of the product scope is measured against the product requirements.

(Resource Management Plan)
The resource management plan is the component of the project management plan that provides guidance on how project resources should be categorized, allocated, managed, and released. It may be divided between the team management plan and physical resource management plan according to the specifics of the project.

One of the most common challenges in project management is determining whether or not a project is successful. Traditionally, the project management metrics of time, cost, scope, and quality have been the most important factors in defining the success of a project. More recently, practitioners and scholars have determined that project success should also be measured with consideration toward achievement of the project objectives.
Project stakeholders may have different ideas as to what the successful completion of a project will look like and which factors are the most important. It is critical to clearly document the project objectives and to select objectives that are measurable. Project success may include additional criteria linked to the organizational strategy and to the delivery of business results.

(Project Quality Management)
Project Quality Management includes the processes for incorporating the organization's quality policy regarding planning, managing, and controlling project and product quality requirements in order to meet stakeholders’ objectives. Project Quality Management also supports continuous process improvement activities as undertaken on behalf of the performing organization.

(Project Cost Management)
Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

The Project Cost Management processes are:
7.1 Plan Cost Management—The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
7.2 Estimate Costs—The process of developing an approximation of the monetary resources needed to complete project work.
7.3 Determine Budget—The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
7.4 Control Costs—The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.

Rolling wave planning. An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level.

Source selection criteria. A set of attributes desired by the buyer that a seller is required to meet or exceed to be selected for a contract.

Project managers and conductors are similar, with regard to managing the membership and roles, responsibilities for their teams, and proper knowledge and skills. However, unlike conductors who should possess musical knowledge and understanding of all instructors, project managers may not have the similar level of knowledge of all activities on projects. Project managers should possess project management knowledge, technical knowledge, understanding, and experience of the overall project to be effective managers.

Key concepts for Project Procurement Management include the following:
• The project manager should be familiar enough with the procurement process to make intelligent decisions regarding contracts and contractual relationships.
• Procurement involves agreements that describe the relationship between a buyer and a seller. Agreements can be simple or complex, and the procurement approach should reflect the degree of complexity. An agreement can be a contract, a service-level agreement, an understanding, a memorandum of agreement, or a purchase order.
• Agreements must comply with local, national, and international laws regarding contracts.
• The project manager should ensure that all procurements meet the specific needs of the project, while working with procurement specialists to ensure that organizational policies are followed.
• The legally binding nature of an agreement means it will be subjected to a more extensive approval process, often involving the legal department, to ensure that it adequately describes the products, services, or results that the seller is agreeing to provide, while being in compliance with the laws and regulations regarding procurements.
• A complex project may involve multiple contracts simultaneously or in sequence. The buyer- seller relationship may exist at many levels on any one project, and between organizations internal to and external to the acquiring organization.

(Interpersonal and Team Skills)
There are five general techniques for resolving conflict, each of which has its place and use:
• Withdraw/avoid. Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others.
• Smooth/accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one's position to the needs of others to maintain harmony and relationships.
• Compromise/reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict. This approach occasionally results in a lose–lose situation.
• Force/direct. Pushing one's viewpoint at the expense of others; offering only win–lose solutions, usually enforced through a power position to resolve an emergency. This approach often results in a win–lose situation.
• Collaborate/problem solve. Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment. This approach can result in a win–win situation.