2-1 Case Scenario: Elite Burger’s New Product Launch

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Module Two: Project Management Methodologies
Module Two: Project Management Methodologies
Note: Because the term “project manager” doesn’t apply to all project management methodologies, you’ll see the term “project leader” used
throughout this course to describe the person directing or facilitating a project.
“Waterfall project management,” “predictive,” and “plan-driven” are all names given to the traditional project management methodology. In a
Waterfall environment, work is extensively planned and then executed, monitored, and controlled in a linear fashion—once something is
done, it is not returned to.
Waterfall project management uses five stages—Initiating, Planning, Monitoring and Controlling, Executing, and Closing—to complete project
work. Once the five stages are finished, a new five-stage project (or a refinement of the previous project) can be launched, but not until the
previous project has come to an end.
In contrast, Agile project management is a management approach based on a series of iterative, incremental improvements that involve
customers (or end users) continuously throughout the project life cycle. Agile approaches have become increasingly popular for organizations
that need to deal with rapidly changing requirements; as such, it is often described as “adaptive” or “value-driven.”
“Agile” is an umbrella term that encompasses many different project approaches that are all focused on one principle—bringing as much
value to customers as soon as possible through the collaborative and cooperative efforts of project team members.
Learning Outcomes
After completing this module, you should be able to:
Describe the basic concepts of Waterfall project management
Identify situations where it would be appropriate to employ a Waterfall or Agile approach
Describe the five stages of Waterfall project management
Define the importance of planning in traditional projects
Describe common artifacts, deliverables, and documentation created during a Waterfall project life cycle
Define Agile development
Explain the principles of the Agile Manifesto and the Declaration of Interdependence
Identify and describe the key Agile methods, including Extreme Programming (XP), Scrum, Lean Software Development, Kanban,
Scrumban, SAFe, LeSS, and Disciplined Agile
Describe how Agile can be integrated into project management
Describe the Agile cycle
Understand the key criticisms of Agile
2-1 Key Terms
Key Terms
Here are several key terms that will be discussed in this module. Click on each term to reveal its definition. Glossary terms are highlighted in
yellow throughout the course, and the glossary is always available in the Tools menu at the top of each page.
accountability
adaptive life cycle
Agile Manifesto
Agile project management
baseline
burndown chart
burn-up chart
cause-and-effect diagram
change control
change request
change request form
Closing stage
colocated team
constraint
control chart
corrective action
cost baseline
cost-reimbursable contract
cross-functional team
customer
daily stand-up
daily team status meeting
decision-making
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defect
deliverable
dependency
dependent variable
Disciplined Agile
dispersed team
distributed team
Done
empirical approach
empowerment
Executing stage
Extreme Programming
feedback loop
fixed-price contract
flowchart
ground rules
histogram
independent variable
Initiating stage
integrated change control
interim deliverable
interpersonal skills
iteration
iteration planning
iteration retrospective
iteration review
iterative development
Kanban
kanban board
Large Scale Scrum
leadership
Lean
Lean Software Development
lessons learned
milestone
milestone chart
minimal viable product
Monitoring and Controlling stage
network diagram
objective
operations
pair programming
Pareto chart
performance assessment
planned and unplanned training
Planning stage
predictive life cycle approach
priorities grid
problem-solving
process
product backlog
product owner
product roadmap
project
project charter
project leader
project life cycle
project management
project management office
project plan
project scope
project sponsor
project stage
project team
prototype
qualitative risk analysis
quality control
quantitative risk analysis
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release
release cycle
release planning
requirement
resource
responsibility assignment matrix
retrospective
return on investment
risk
risk management
risk register
root cause
rugby scrum
run chart
Scaled Agile Framework
scatter diagram
schedule
scope statement
Scrum
scrum of scrums
Scrumban
S-curve
secondary risk
self-directed team
sprint
stakeholder
stakeholder list
standard
story board
story point
systems thinking
tailoring
test-driven development
time and material contract
timebox
training
user story
velocity
Waterfall project management
work breakdown structure
work-in-progress
2-2 Waterfall Basics
Waterfall Basics
A Waterfall project management model envisions a project as a series of sequential steps, beginning with the statement of customer
requirements. The project is extensively planned upfront and then monitored and controlled throughout the process. Once a step is
completed, it is not revisited. The project can be pictured as a one-way process, much like water coursing over a waterfall—once the water
passes over the waterfall, it does not return.
The Waterfall Project Management Process
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In a typical Waterfall project, practitioners begin with fixed requirements and adjust their resource and schedule variables; in other words,
they decide which requirements they’ll be working on, then adjust their budget, schedule, and resource needs so they can fulfill those
requirements.
Waterfall Methods
In addition, Waterfall project teams use the following methods in the projects they employ.
Click on each of the list items below for more information.

Planning
A Waterfall approach:
Establishes requirements at the start of the project
Estimates the cost and schedule of the project
Uses highly disciplined planning to control the project

Documentation
A Waterfall methodology:
Prepares a series of formal written documents
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Customers
Waterfall
Depends on heavy customer involvement in the Planning phase, but has limited customer involvement until the Closing phase

Change management
Waterfall teams:
Use a formal integrated change control process to rework requirements
Add the cost of changes to the overall budget

Project life cycle
The Waterfall approach:
Employs distinct cycle phases
Completes tasks in a sequenced order
Does not revisit a phase once it has been completed

Human resources
Waterfall project management:
Employs a project leader to direct, manage, monitor, and control work
Makes use of a hierarchical structure of roles and responsibilities

Risk management:
Waterfall:
Embraces a formal risk management process (risk identification, qualitative and quantitative analysis, risk response planning)
Monitors and controls work in precise steps

Testing
The Waterfall methodology:
Tests for appropriate results at the end of the project
When to Use a Waterfall Approach
A Waterfall approach is especially helpful when all project requirements can be determined early in the project’s life cycle, allowing the team
to decide on its entire project scope upfront. When project deliverables can be fixed early in the Initiating stage, project practitioners will know
exactly what they will be producing so they can set a specific time frame and budget for the project. Waterfall methodologies are also useful
when the project’s deliverables can’t—or shouldn’t—be used until they are fully finished (such as in medical or safety environments) because
dangerous or life-threatening conditions could occur with partially completed deliverables.
2-3 Exercise: Waterfall Basics Fill-in-the-Blank
Exercise: Waterfall Basics Fill-in-the-Blank
In the sentences below, fill in the blanks with the correct terms from the word bank.
Please choose from the following terms:
integrated change control, predictive, project life cycle, project plan, requirements, risk
2-4 The Waterfall Project Life Cycle
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The Waterfall Project Life Cycle
Because each project is a unique entity, there is no standard way to manage a project. However, projects do have certain stages in common.
Identifying and naming these project stages makes it possible to discuss the accumulated knowledge of countless project leaders.
So, what exactly is a project stage? For the purposes of this course, we will say that a project stage is a related group of activities that the
project team must perform to reach a predetermined set of results, such as the creation of a deliverable or a business benefit to an
organization.
Each project leader will employ their project stages differently—and your authority (as a project lead) to adapt stages will vary depending
upon the type of organization you work in.
The Five Project Stages
Typically, a Waterfall project life cycle can be broken down into five separate stages—Initiating, Planning, Executing, Monitoring and
Controlling, and Closing—as shown in the table below.
Project Stage
Definition
Initiating Stage
The part of the project that focuses on defining what the project will attempt to accomplish
Planning Stage
The part of the project where the project leader and project team plan the work that will help them achieve
the project’s objectives
Executing Stage
The part of the project where the “actual work” is done
Monitoring and Controlling
The part of the project where work is compared to expectations to ensure it is proceeding as expected
Stage
Closing Stage
The part of the project where the project leader and project team finalize all activities and formally close the
project
With each of these stages, the completion of a deliverable (or deliverables) marks the end of the current stage so that you and your project
team can proceed to the next stage.
These five stages fit together in a linear fashion (with the Executing and the Monitoring and Controlling stages happening concurrently), as
shown in the image that follows. ( Note: Although the stages are performed in sequence, they may overlap or iterate, but in most cases, they
are performed sequentially because the outputs for one stage will become the inputs for the next one.)
Video Commentary: The Project Stages and Their Overlap
In the following video, project management expert Lewis Hangyal details each of the five Waterfall project stages and explains the overlap
that can occur between stages.
Lewis Hangyal, PMP® , is passionate about solving problems and bringing conceptual solutions into reality. He is a project
management consultant with an educational background in industrial engineering. By combining engineering problem-solving
techniques with project management skills, Lewis helps organizations bring their visions to life through the execution of quality
projects.
Project Stages vs. Project Phases
It is important to be clear that these five stages are not synonymous with project phases because they do not exactly coincide with the
phases of a project. Projects may have multiple phases—a design phase, a development phase, a testing phase, etc.—and each of these
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phases may have its own Initiating, Planning, Executing, Monitoring and Controlling, and Closing processes. The boundary between phases
is usually set at the point when different organizations or different skill sets are required to contribute to a project, and (like a project stage)
the end of a phase is usually marked by the production of a deliverable.
A project will often be assessed before the next phase begins. Assessment allows you to discover problems or errors in the project while
these problems are still comparatively inexpensive to fix. If the project was designed to fulfill objectives that are no longer required, or if the
risk in continuing is too great, the next phase might not receive authorization.
Common problems in managing phases of a project include:
Starting a project with the wrong objective
Completing a phase prematurely
Lingering on one phase for too long
Not conducting a final-stage lessons learned project review
Not incorporating lessons learned from previous phases or projects into current work
2-5 The Initiating Stage
The Initiating Stage
In the Initiating stage, your organization will be primarily concerned with identifying the problem that a project will solve and setting the
boundaries for the solution to that problem.
Work in the Initiating stage defines the key high-level goals that the project must meet and connects those goals to the organization’s
strategic objectives. These goals are then communicated to you and your project team so you can begin to develop the plans you’ll use to
meet the project requirements.
Initiating the Project
Once you’ve received the appropriate requirements, you’ll meet with your team to begin defining your project. You’ll establish the project’s
purpose, who will be involved, and what the project will produce. You’ll answer questions like the ones below to help you better understand
the project, its resources, and its restrictions:
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What will project success look like? How will we know things are “Done”?
What constraints does the project face?
How does the project charter set the boundaries for the project?
Who are the project stakeholders? Which ones are most essential to project success?
How will we manage expectations and resolve conflicts on the team and with stakeholders?
Are there documents and lessons from other projects that we can use on this project?
The Initiating Stage Tools
There are four key tools that will help you frame your project: a project charter, a stakeholder list, a priorities grid, and a milestone chart.
The Project Charter
The project charter formally authorizes the existence of a project and provides the project leader with the authority to use resources
to complete project activities. It outlines the project’s scope, goals, and deadlines at a high level and is generally issued by someone
outside of the project team in a higher-level position within the organization (like a project sponsor, project initiator, or senior
executive).
Because each project is a unique undertaking, each will have its own charter, with specific areas and sections that pertain only to that
project. While much of the information in a project charter will vary depending on the project, there are some common elements or
areas that all project charters must have. Each of these elements is vital to a project’s success, and each assists in a better
understanding of the project by all involved.
A Sample Project Charter
General Project Info
Project
Skills Training—Frontline Associates
Title
Date
February 9
In the home loan servicing department, 35% of loan modification applications are currently being escalated to
Business management due to ineffective customer service interactions and high levels of complaints. The department is incurring
Case approximately $100,000 per month in time and resources needed to handle these escalations, and the bank’s reputation
has suffered due to poor performance in industry customer service rankings. Senior leaders have identified this as an
area of concern and targeted it for process improvement.
Project Personnel
Project Team
Name
Quentin
Hernandez
Contact Info
[email protected]
Allain Pepin [email protected]
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Allain Pepin [email protected]
Marcela
Watson
[email protected]
Stakeholders
Name
Contact Info
Raffiel Alto
[email protected]
Samira
Marathi
[email protected]
Anchaly Am [email protected]
Project Scope
Purpose
To dramatically improve frontline home servicing associates’ customer treatment skills in order to improve customer interactions,
defuse emotions, and reduce customer complaints and escalations to management.
In scope
Active loan modification accounts
All frontline associates at eight call centers (training and accountability)
New associate training programs, content, and mastery assessments for loan modification conversations
Proficiency coaching guidelines to monitor associate performance and oversee skill development
Customer data collection and reporting systems (customer feedback, degree of escalation, number of interactions to resolve,
call duration, outcome, etc.)
Out of scope
Other customer accounts (refinancing, loan origination, etc.)
Mortgaging servicing officers in local “brick and mortar” branch offices
Any training programs not related to loan modifications
Underwriting system
Loan servicing software
Objective
This training, developed by a team of nine people, should result in a 50% reduction in customer complaints and a 75% reduction in
the number of escalated projects by the end of Q3.
Deliverables
Weekly reporting on individual and aggregate associate performance (percentage of calls escalated, complaints, feedback
ratings, percentage of calls resolved, etc.)
Weekly reporting on metrics related to escalated calls (number of interactions, call duration, etc.)
Standardization of coaching process for associates designated as “needs improvement”
Delivery of effective customer treatment training modules for frontline associates
Schedule Summary
Milestone dates
Project plan approval: February 23
Training plan pilot start date: March 13
Full implementation start date: April 25
Assessment review: June 1
Allowable variance: 4%. Variance must be authorized by Project Sponsor Raffiel Alto.
Budget Summary
Senior leaders have allocated approximately $49,000 from the Global Learning and Development account for this initiative.
Eighty percent of this budget will be allocated to personnel, while the remainder will support software and training licenses as
needed.
Allowable variance: 8%. Variance must be authorized by Project Sponsor Raffiel Alto.
Measurable Success Criteria
Reduce the number of loan modification accounts in “escalated” status by 75%
Reduce customer complaints by 50%
Deliver specialized customer treatment training to 100% of frontline loan servicing associates within 6 months of project start
date
Improve industry ranking in “customer service” by at least two placements each year
Reduce cost associated with handling escalations by 40%
Project Risks
Risks to the Project
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Risks to the Project
Insufficient funds for training
Insufficient time frame for all training
Ineffective training program
Risks Caused by the Project
Associate stress due to additional training duties
Incomplete compliance
Initial increase in escalations during training
Other Project Limitations
Resources will include 3.5 FTEs from the Global Learning and Development team, as well as more than 800 customer service
associates to participate in training, 85 managers and proficiency coaches, 15 subject matter experts, and at least 6 IT resources
focused on assessing the current state and designing process improvements to customer data collection and key performance
indicator tracking.
Approval
Signature
[E.S.
Forster]
Approval Date
February 10
Video Commentary: Project Charter
In the video below, project management expert Lewis Hangyal describes the importance of the project charter to project success.
Lewis Hangyal, PMP® , is passionate about solving problems and bringing conceptual solutions into reality. He is a
project management consultant with an educational background in industrial engineering. By combining engineering
problem-solving techniques with project management skills, Lewis helps organizations bring their visions to life through
the execution of quality projects.
The Stakeholder List
A project’s stakeholders can take many forms—they may be people working on a project, suppliers to the project, or managers or
customers who are impacted by the project’s activities or deliverables. In fact, a project stakeholder could be anyone who has
something to gain or lose from the project’s execution or completion.
To run a project effectively, you must identify key stakeholders and consider their impact on the project. If you do not identify and
consult with a high-power/high-interest stakeholder early in the process, you may be forced to respond to their potentially projectchanging suggestions late in the process, threatening project delays and budgetary overages.
To help you identify stakeholders and their impact, you should develop a project stakeholder list that includes all of these important
individuals. By generating this list, you’ll then be in a position to design an effective strategy for involving your stakeholders in a way
that maximizes positive benefits and minimizes conflict that could derail project progress.
Stakeholder lists may vary greatly in the information they contain, but at a minimum, they should include the following information:
The names of project stakeholders
Their roles in the project or organization
Their interest in the project
Their power or ability to affect project work
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A classification that shows whether they support the project, are neutral about the project, or oppose the project
You can then compile this information into a table like the one below:
A Sample Stakeholder List
Name
Role
Interest
Power
Classification
Roman Whyte
Project Sponsor
High
High
Supports project
Marian Martinez
Chief Financial Officer
Low
High
Neutral
Joyce Samuel
Project Team Member
High
Medium
Supports project
Gerald Washburn Local Government Official High
Medium-High Opposes project
By placing this important information into a table, you’ll provide your coworkers and colleagues with a quick and easy reference they
can use to access information.
The Priorities Grid
Once you’ve compiled your stakeholder list, you can then use a priorities grid (like the one shown here) to understand how your
stakeholders feel about your project and how and when to communicate most effectively with them. (This particular grid uses power
and interest to map stakeholders, but other grids might plot stakeholders according to power and influence, or power and impact.)
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One easy way to organize and differentiate stakeholder priorities is to create a code for each type of stakeholder; this code can use
colors or shapes or both. For instance, inhibitor stakeholders can be represented by a red X, neutral stakeholders can be represented
by purple squares, and supporters can be represented by green circles.
A Sample Grid
In this sample stakeholder power and interest chart, Jeff is a supporter of the project and has a lot of interest and power. Sarah and
Jeremy are blockers, and both need monitoring. Considering Sarah’s power, project leaders should be concerned about her
influences and should take steps toward keeping her satisfied and informed. Don and Margaret are neutral stakeholders, but
because Margaret has shown high interest in the project, it would be best to be proactive and keep her informed about the project to
avoid the potential interruptions that may occur as she looks for project information.
The Milestone Chart
A milestone chart is a tool that shows the completion of project activities or product increments. The milestones on the chart show
clearly marked project points where activities have been carried out or a part of a product or deliverable has been completed.
Video: Developing a Milestone Chart
The following video explains how a milestone chart is designed and implemented.
Customers and external stakeholders make decisions based on summary information, making the milestone chart a very effective
tool. Because milestones show the completion of important project segments or amounts of work, they help summarize important
project activities and events. As the project leader, you can use milestones and milestone charts to show project progress to
customers and external stakeholders in a way that leaves out the details that they do not need (or want) to know about. In addition,
your team can use the charts to review project progress to determine if the project is proceeding as planned or if changes need to be
made.
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Video Commentary: The Initiating Stage
In the video that follows, project professional Dan Picard outlines the components of the Initiating stage and describes their importance.
Dan Picard is the Editorial Director of PM Skills™ and a Senior Editor and Content Developer for MindEdge Learning. As a
Certified Scrum Master® (CSM), Project Management Professional (PMP® ), and Project Management Skills Certified
Professional (PMSCP® ) with more than 15 years of continuous improvement expertise, he brings a wealth of experience and
knowledge to his role creating, managing, and directing materials for MindEdge’s continuing education and project
management courses.
2-6 The Planning Stage
The Planning Stage
In the Planning stage, you’ll generate a comprehensive project plan to show how you’ll complete project work and how you’ll deliver the
results the project was designed to achieve.
You’ll create deliverables that a) show what work the project entails, b) track project progress, and c) uncover and monitor the risks that could
affect your project. You’ll connect the people in your project to the project work, and you’ll develop ways to monitor changes and track
contract performance across the project. (You’ll use the project charter, stakeholder list, priorities grid, and milestone chart from the project’s
Initiating stage as your foundation for creating these Planning deliverables.)
Planning Your Project
Project planning is really about creating a plan that will define and govern the work. But in doing so, you’ll need to be sure to develop your
plan to an appropriate level. Too much planning can bog down your project with too many planning activities and could cause your team to
spend too much time away from doing what the project is designed for (i.e., delivering results). Conversely, too little planning can result in
confusion; you’ll still need to uncover enough details so you and your team can complete the work.
Whatever amount of planning you decide that your project needs, it’s very important to include the people whodo the work in planning the
work. The people who do the work are the ones who know the most about it—they’re the ones who’ll be able to uncover risks that you may
not have thought of or provide more accurate estimates for the project. And if they participate in the creation of your project plan, they are
more likely to have greater buy-in.
The Planning Stage Tools
Because the Planning stage is the largest of the Waterfall stages, you’ll use several tools to prepare for project work. (Each of these tools is
described in a section below.)
The Project Plan
The central component of the Planning stage is the project plan. As you develop this plan, you’ll document the actions and activities
you’ll need to define, prepare, integrate, and coordinate all of your project’s components.
Your project plan should include the following items to help you manage the tasks, scope, time, costs, risks, and changes for your
project:
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The project plan is the document that you and your colleagues will refer back to if and/or when questions arise. It should contain all
of the pertinent information you’ll need to ensure that the project continues to meet requirements and expectations as you execute
your work.
The Project Scope Statement
The scope statement describes what is in scope and out of scope for the project—in other words, what the projectwill contain and
what it won’t contain. (The project charter frames the project’s scope, so it should be very helpful in developing the scope statement.)
The scope statement, along with the work breakdown structure, serves as the scope baseline for any questions about the project
scope.
The Work Breakdown Structure
The work breakdown structure (WBS) is a hierarchical breakdown of all of the work needed to complete a project. In a WBS, work is
broken down into smaller pieces that can then be assigned to individuals or groups for completion. A completed WBS shows all of
the project deliverables included in the project and enhances planning activities by ensuring that work is not missed.
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The Network Diagram
A network diagram acts as the schedule for the project. It’s more detailed than the milestone chart in that it shows the sequence of
project activities and the dependencies among those activities.
The Change Management Plans
The project plan should include thoughts on how any change requests or unexpected changes that might affect the project will be
managed. You and your colleagues will need to decide who’ll compile these requests for changes to the project, how they will
analyze the impact of those changes, and who’s responsible for accepting or rejecting those requests.
The Responsibility Assignment Matrix
A responsibility assignment matrix (RAM) helps assign responsibility for project work to project participants. The RAM will ensure that
the project team knows who is responsible for the completion of specific tasks as well as who needs to be informed of problems and
progress.
A Sample RAM
Geno
Ann
Mark
Jean
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Conceptualize
R
A
I
C
Finalize
A
R
I
C
Test
I
A
R
C
Sell Internally
C
I
A
R
R = Responsible, A = Accountable, C = Consult, I =
Inform
The Risk Register
Your team will need to use a risk register to track project risks, the planned responses for those risks, and the results of
implementing those responses. The risk register is an important document that you must review and update regularly to ensure that
your project will continue with minimal delays and disruptions.
The Cost Baseline
The cost baseline acts as the budget for the project. Project cost estimates are compiled into an S-curve that serves as an
aggregation of the expected costs to complete the project. Project expenditures are then compared to the S-curve to ensure that the
project is staying within project cost boundaries.
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The Contractor/Vendor Management Plans
As a project leader, you may have to decide if you’ll need additional resources to complete your project work and, if so, how you’ll
procure those services. If you do need outside resources, you’ll also have to consider what type of contract will work best and
develop a strategy for monitoring contract compliance.
Contract Types
Contract
Type
Comments
A fixed-price contract is ideal for well-defined products where costs don’t often change. Fixed-price contracts may
Fixed-Price
allow some room for 1) increasing the sale price by allowing incentive payments or 2) increasing the sale price by
Contracts
allowing price adjustments for inflation or for the increasing or decreasing cost of commodities.
CostWith a cost-reimbursable contract, payment is made to the seller for the seller’s actual costs, and then a fee is
Reimbursable added for seller profit. Cost-reimbursable contracts are valuable when requirements for scope or other objectives
Contracts will change through the course of the project.
Time and
Material
Contracts
A time and material contract is a hybrid contract that has the openness of the cost-reimbursable arrangement but
includes some fixed-price concepts as well. The full value and the exact quantity of items to be delivered are not
defined by the buyer at the time of the contract award, but elements of fixed-price contracts (such as unit rates for a
specific resource category) can be used.
Tailoring Your Plan
No matter how well you plan your project, your project’s plans will not be “watertight”; changeswill occur on your project. Good planning will
help you avoid many problems, but not all of them; a situation might change unexpectedly, or an unforeseen problem may arise. Furthermore,
every project