PMP Preparatory Material

ding Professionalism in Project Managem
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Course Objective
To familiarize participants with Project Management
Body of Knowledge Guide (Fourth Edition) by
explaining the concepts, processes, and techniques
of Project Management.
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What the exam will test?

Your knowledge about PMIs processes and your ability to
apply these processes in a variety of situation.
Your understanding of the many terms that are used to
describe the process.
Your understanding of professional responsibility as it

applies to project management.
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Learning Strategies
20 / 80 approach
Learn PMPism
Emphasis on learning exercise
Gaining understanding through review
exercise and class discussions
Remove friction in reading PMBOK Guide
PMBOK is a registered mark of the Project Management Institute, Inc
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PROJECT MANAGEMENT FRAMEWORK
Project Management Framework
ManagementInstitute,
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The PMI Registered Education Provider logo and PMP are registered marks of theProject
Project Management
Inc
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Course Structure
Introduction
PMBOK Guide
Define a Project
Define Project Management
Correlation among Project, Program, and Portfolio Management
Project Management Office (PMO)
Project and Operations Management
Role of a Project Manager
Enterprise Environmental Factors
Project Life Cycle and Organization

Project Life Cycle - Introduction
Projects Life Cycle - Characteristics

Product vs. Project Life Cycle Relationship
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Course Structure
Projects Phases
Project Governance
Phase-to-Phase Relationship
Relationship between Stakeholders and the Project
Types of Stakeholders
Organizational Influences on Project Management
Project Management Processes for a Project

Project Process - Introduction
Common Project Management Process Interaction

Project Management Process Group - Flow
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Project Management Framework Introduction
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Project Management Body of Knowledge

(PMBOK) - Introduction
Sum of knowledge within the profession of Project
Management.
Practitioners & Academicians apply and advance it.
Includes proven traditional practices, as well as
innovative and advanced practices.
Is constantly evolving.
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PMBOK Guide
PMBOK Guide is a recognized standard for the project management
profession.
Project Management Institute (PMI) views these standards as a foundation
reference.
PMBOK Guide identifies (provides a general overview) the subset of Body of
Knowledge that is generally recognized as good practices and promotes a
common lexicon.
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Code of Ethics and Professional Conduct

PMI Code of Ethics and Professional Conduct:
Guides practitioners of the Project Management Profession
Describes expectations practitioners have of themselves and others
Code of Ethics and Professional Conduct is specific about:

Obligation of Responsibility to comply with laws, regulations and
organizational and professional policies

Respect, fairness, and honesty to deal with the stakeholders
Acceptance of the code is a requirement for the PMP

certification by PMI.
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Project
A project is a temporary endeavor undertaken to create a unique product, service, or
result.
Every project has a definite beginning and a definite end.
A project creates unique deliverables in the form of products, services, or results.

(Repetitive elements may be present in some project deliverables, which does
not change the fundamental uniqueness of the project work.)
Uniqueness is an important characteristic of

projects deliverables.
A project ends as a result of one of the following:

Project objectives have been achieved.
It becomes clear that the project objectives
cannot be met.
The need for the project no more exists.
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Project Continue
A project can involve:
A single person
A single Organization
Multiple Organizational Units
A project can create:
A product that can be either a component of another item or an end item in itself
A capability to perform a service
A result such as a outcome or document
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Project Management
1.
Project Management is the application of knowledge, skills, tools, and techniques

to project activities to meet project requirements.
2.
Project Management is accomplished through the application and integration of

project management processes in 5 process groups - Initiating, Planning,
Executing, Monitoring and Controlling, and Closing.
3.
The project manager is the person responsible for

accomplishing the project objectives.
4.
Project managers often talk of Project Constraints

which includes: project scope, quality, time, cost,
resources, and risk in managing competing project
requirements.
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Project Management Continues

Progressive Elaboration
Progressive Elaboration means
developing and continuing by
increments.
Project objectives, scope and
deliverables are progressively
elaborated.
Progressive Elaboration should not
be confused with scope creep.
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Project, Program, and Portfolio Management

Project management exists in a broader context that includes :
Portfolio Management
Program Management
Project Management
Project prioritization is
based on:
Risk
Funding
Organizational Strategic
Plan
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOKGuide) Fourth Edition, Project Management Institute, Inc., 2008, Figure 1-1. Page 8.
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Program Management
Program:
A group of related projects
Individual project management is not available
Includes elements of related work outside the scope
Program Management focuses on:

Project Interdependencies
Optimal approach for managing them
Projects within programs are related through common outcome or collective

capability
A project may or may not be a part of a program but a program will always
have projects.
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Portfolio Management
Portfolio:
Collection of projects or programs
Facilitate effective management to meet business objectives
Not interdependent or directly related to projects or programs
Portfolio Management being a centralized management includes :
Identifying
Prioritizing
Authorizing
Managing and
Controlling all programs and projects
Senior managers or senior management teams typically take on the responsibility

of portfolio management for an organization.
Project, Program, and Portfolio Management on certain parameters
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Project and Strategic Planning

Projects are:
Means of achieving an organizations strategic plan
Authorized to follow strategic considerations
Strategic Considerations:
Market Demand
Business Need
Customer Request
Technological Advance
Legal Requirement
An organizations strategic plan becomes the

primary factor guiding investments in projects.
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Project Management Office (PMO)

PMO is an organizational unit to centralize and coordinate the management
of projects under its domain.
PMO:
Acts as an integral stakeholder

A key decision maker
Involved in selection, management, and
deployment of resources
PMO supports Project Managers in:
Identifying and developing project management standards

Coaching, mentoring, and training
Managing shared resources
Developing, managing, and monitoring project policies and procedures
Coordinating across projects
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PMO and Project Manager

PMOs and Project Managers follow different objectives but the final aim is to
achieve the strategic needs of the organization.
Difference between the role of PMO and Project Manager:
PMO
Project Manager
Focuses on achieving potential

business objectives.
Focuses on achieving specified project

objectives.
Optimizes the use of shared resources

across all projects.
Controls the assigned project resources.
Manages methodologies, standards,

risk/opportunity, and interdependencies
among projects at enterprise level.
Manages project constraints such as

scope, schedule, cost, etc. of an
individual project.
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Project and Operations Management

Operations are ongoing and repetitive while projects are temporary and
unique.
The purpose of a project is to attain
its objectives (and then terminate).
The objective of an ongoing operation is
to sustain the business.
Project intersect with operations during project life
cycle at various points:
Each closeout phase

Developing a new product
Upgrading a product
Improvements in operations
Divestment of the operations at the end of the product life cycle
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Role of a Project Manager

A Project Manager is the person assigned by an organization to
achieve
objectives of the project.
Characteristics a Project Manager :
Knowledge What the project manager knows

Performance How the project manager applies
the knowledge
Personal How the project manager behaves
while performing the project
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Project Life Cycle and Organization
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Project Life Cycle Introduction
A project life cycle is a collection of generally sequential and

sometime overlapping project phases.
Project managers or the organization can divide projects into

phases to provide better management control with appropriate
links to the ongoing operations of the performing organization and
these phases are known as the Project Life Cycle.
Many organizations identify a specific set of life cycles for use on

all their projects.
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Project Life Cycle - Characteristics

Most Project Life Cycles share a number of common characteristics:
1. Phases are generally sequential.
2. Cost and staffing levels are low at the start, peak during the intermediate phases,
and drop rapidly as the project draws to a conclusion.
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Project Life Cycle - Characteristics

3.
The ability of stakeholders to

influence the project outcome
and cost is highest at the start
and gets progressively lower
as the project continues.
4.
Risk is greatest at the start of

the project and gets
progressively lower as the
project continues.
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Product vs. Project Life Cycle Relationships

(As per PMBOK Guide)
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Project Phases
Project Phases are:
Divisions within a project for extra control to manage the completion of a deliverable effectively
Typically sequential but can overlap in some projects
Elements of the project life cycle
Segmented into logical subsets for easy management
Characteristics of Phases:
The close of a phase ends with some form of
transfer, usually when phases are sequential

Primary objective of the phase requires an
extra degree of control to be successful
No single way to define the ideal structure for a
project
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Project Phases
Single Phase
Multiple Phases
Projects having only one phase

Sequential
Overlapping
Phase starts once

the earlier phase
is complete
Phase starts prior

to the completion
of the previous
phase
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Planning of the next
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Project Governance
Project Governance:
A comprehensive, consistent method of controlling the project
Should be included in the project management plan
Must fit within the larger context of the program
Project Governance is facilitated by:

Phase structure which provides a formal basis for control
Review of the deliverables to determine completeness and
acceptance
A natural point to reassess the effort underway to change or
terminate the project
Formal phase completion which does not include authorizing the
subsequent phase
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Project Stakeholders
1.
Project stakeholders are individuals and organizations that are :

actively involved in the project or
whose interests may be affected as a result of project execution or
completion or
may exert influence over the projects objectives and outcomes.
2.
The project management team must identify the stakeholders and manage their
influence in relation to the requirements to ensure a successful project.
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The Relationship Between Stakeholders and

the Project
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Organizational Influences
Organizational Influences on Project Management:
Culture, Style, and Structure
Degree of project management maturity
Involvement of external entitles as a part of a joint venture
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Organizational Culture and Style

Organizational cultures and styles may have a strong influence on a
projects ability to meet its objectives.
The cultures are reflected in numerous factors including:

1.
2.
3.
4.
Shared values, norms, beliefs, and expectations

Policies and procedures
View of authority relationships
Work ethics and work hours
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Organizational Structure
The structure of the performing organization often constraints the availability of
resources in a spectrum from functional to projectized, with a variety of matrix
structures in between.
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Organizational Process Assets
Processes & Procedures
Corporate Knowledge Base
For conducting organizations work, which

includes but not limited to:
Organizational standard processes
Standardized guidelines, work

instructions, etc.
Guidelines and criteria for tailoring set
of standard processes
Organization communication
requirement
Project closure requirements
Financial, Change, and risk control
procedures
For storing and retrieving organizational

information, which includes but not
limited to:
Process measurement databases
Project files
Historical information and lessons
learned knowledge base
Issue and defect management
databases
Configuration management
knowledge databases
Financial databases
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Enterprise Environment
Factors:
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Project Management Processes

For a Project
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Project Process - Introduction

A Process is a set of interrelated actions and activities that are performed to
achieve a pre-specified set of products, results, or services.
Project processes are performed by Project Team.
Ensure effective flow throughout the project
Specify and create the project products
Includes tools and techniques in applying skills

and capabilities
Defined by the project life cycle

Vary by application area
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Project Management Process Groups

Project management processes are grouped into five categories known
as project management process groups or process groups.
These process groups are:
1.
Initiating Process Group:
To define a new project or a new phase of an existing project
Obtains authorization
2.
Planning Process Group:
To establish the scope of the project
Refine the objectives
Define the course of action

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Project Management Process Groups

3.
Executing Process Group:
To complete the defined work in the project
Satisfy the project specifications in the project management plan
4.
Monitoring and Controlling Process Group:
To track, review, and regulate projects progress and performance
Identifies the areas where changes are required
Initiates the required changes
5.
Closing Process Group:
To finalize all activities to formally close the project or phase
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Common Project Management Process

Interactions
Following figure shows the integrative nature of project management that requires
the Monitoring and Controlling Process Group to interact with the other process
groups.
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Common Project Management Process

Interactions
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Definitions
Input: Any item, whether internal or external to the project that is
required by a process before that process proceeds. May be an output
from a predecessor process.
Tool: Something tangible, such as a template or software program,
used in performing an activity to produce a product or result.
Technique: A defined systematic procedure employed by a human
resource to perform an activity to produce a product or result or
deliver a service, and that may employ one or more tools.
Output: A product, result, or service generated by a process.
May be an input to a successor process.
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Before we begin
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Everyone respects your time, do

you?
Come on time, Promptly return from the brea

49
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Age and experience maketh a good manager
sometimes...not always
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Your phone looks better
when switched off or silent

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Involvement is the key
not mere
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Be here
and only here
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Listen to others
before you start correcting

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Thank you!!!
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PROJECT INTEGRATION MANAGEMENT
Project Management
Institute,
Inc
Management
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Course Structure
Project Integration Management
Introduction
Integration Management Introduction
Develop Project Charter

Develop Project Charter : Inputs, Tools, and Outputs
Develop Project Management Plan

Develop Project Management Plan : Inputs, Tools, and Outputs
Direct and Manage Project Execution

Develop and Manage Project Execution : Inputs, Tools, and Outputs
Monitor and Control Project Work

Monitor and Control Project Work : Inputs, Tools, and Outputs
Perform Integrated Change Control

Perform Integrated Change Control : Inputs, Tools, and Outputs
Close Project
Close Project : Inputs, Tools, and Outputs
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Introduction
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Project Integration Management Introduction

What is Integration?
It is the processes required to ensure that the various elements (people,
product, etc.) of the project are appropriately coordinated with each
other.
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Project Integration Management Introduction
It is a unique knowledge area and it is the core of project management.
It includes processes and activities needed to identify, define,

combine, unify, and coordinate between the various processes and
project management activities within the project management process
group.
It involves putting the pieces of the project together into a cohesive
whole, while managing trade offs among the different project
objectives and alternatives to meet or exceed stakeholders needs and
expectations.
It involves selection about:
Resource Allocation
Balancing among competing objectives
and alternatives
Managing interdependencies among
project management knowledge areas
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Project Integration Management Processes

Develop Project Charter (Initiating) process of developing a document that
formally authorizes a project or a phase and documenting initial
requirements that satisfy the stakeholder's needs and expectations.
Develop Project Management Plan (Planning) process of documenting the
actions necessary to define, prepare, integrate, and coordinate all subsidiary
plans.
Direct and Manage Project Execution (Executing) process of performing the
work defined in the project management plan to achieve the projects
objectives.
Monitor and Control Project Work (Monitoring & Controlling) process of
tracking, reviewing, and regulating the progress to meet the performance
objectives defined in the project management plan.
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Perform Integrated Change Control (Monitoring & Controlling) process of
reviewing all change requests, approving changes, and managing changes to
the deliverables, organizational process assets, project documents, and the
project management plan.
Close Project or Phase (Closing) process of finalizing all activities across all
of the project management process groups to formally complete the project
or phase.
These processes:
Interact with each other and with the processes in the other Knowledge
Areas
Occur at least once in every project or project phases
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Project Management
Plan
Planning
Executing
Changes
Planning process group provides the Executing process group with a

documented project management plan during the early stage of the
project.
Later, it facilitates updates to the project management plan if changes
occur during the progress of the project.
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Develop Project Charter

Who can authorize Projects?
Projects are authorized by someone external to the
project:
A sponsor
PMO
Portfolio steering committee
Project charter is the process of developing a document that:
Formally authorizes a project or a phase.
Jot downs initial requirements.
Establishes a partnership between the
performing organization and the requesting organization
(Internal Project) and performing organization and Customer
(External Project).
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Process - Develop Project Charter

The Project Manager is identified and assigned to the project as early as
possible,
but always prior to the start of planning, and preferably while Project Charter
is
being developed.
Project charter provides the project manager with the authority to apply
resources
to initiator or sponsor should be at a level
The project
project
that
is activities.
appropriate to funding the project.
Chartering a project links the project to the strategy and ongoing
work of the organization. (Internal)
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Develop Project Charter Inputs, Tools, and Outputs
Project statement of work

Expert judgment
- Business need
- Product scope description
- Strategic plan
Business case
Contracts
Enterprise environmental factors
Organizational process assets
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Develop Project Charter Data Flow Diagram
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOKGuide) Fourth Edition, Project Management Institute, Inc., 2008, Figure 4-3 Page 74.
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Develop Project Charter: Outputs

Project Charter
Project charter documents:
Business needs
Current understanding of customers needs

New product, service, or result
Project purpose
Measurable project objectives and related success criteria
High-level requirements
High-level project description
High-level risks
Summary milestone schedule
Summary budget
Project approval requirements
Responsibility and authority level of project manager, sponsor, or other
persons
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Process - Develop Project Management Plan
It defines how the project is executed, monitored and controlled, and

closed.
Its content will differ depending upon the application area and
complexity of the project.
Project management processes selected by the project
management team
Level of implementation of each selected process
Description of the tools and techniques to be used
How the selected processes will manage the
dependencies, interactions, inputs, and outputs
among processes
It is updated, controlled, and approved through the

Perform Integrated Change Control process.
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Develop Project Management Plan Inputs, Tools,

and Outputs
Project charter
Outputs from planning
processes
Enterprise environmental f
actors
Organizational process as
sets
Expert judgment
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Develop Project Management Plan
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Develop Project Management Plan: Outputs

Project Management Plan
Integrates and consolidates all of the subsidiary management plans
and baselines from the planning processes.
It includes:
Project Life cycle
Project management
processes
tailored to that project
Subsidiary Plans
Other baselines
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Develop Project Management Plan: Outputs

What is performance measurement baseline?
A performance measurement baseline is the combination of:
Schedule baseline
Cost performance baselines
Scope baseline
These baselines are used as an overall project baseline against which
integrated performance can be measured.
The performance measurement baseline is used for earned
value measurement.
Can you think of other baselines?

Quality
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Process - Direct and Manage Project Execution

The process of performing the work defined in the project management plan
to achieve the projects objectives.
What type of different activities could be included?
Perform activities to accomplish project requirements
Create project deliverables
Staff, train, and manage the team members
Obtain, manage, and use resources (material, tools, etc.)
Implement the planned methods and standards
Establish and manage project communication channels (Internal and External)
Generate project data (Cost, schedule, technical and quality progress, status to facilitate
forecasting)
Issue change request and adapt approved changes
Manage risk and implement risk response activities
Manage sellers and suppliers
Collect and document lessons learned, and implement approved process improvement
activities
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It is directly affected by the project application area.
It requires implementation of approved changes covering:
Corrective actions that will bring anticipated project
performance into compliance with Project

Management Plan.
Preventive actions to reduce the probability of
potential negative consequences.
Defect repair request to correct product defects
found by quality process with a recommendation to
repair or replace the component.
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Direct and Manage Project Execution Inputs,

Tools, and Outputs
Project management plan Expert judgment

Approved change requests Project management
The documented,
information system
authorized changes to
expand or reduce project
scope which may require
implementation of preventive
or corrective actions.
Enterprise environmental fact
ors
Organizational process asset
s
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Work performance
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Change requests
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Project document update
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Direct and Manage Project Execution:

Tools and Techniques
Who can be the experts?
Consultants, Stakeholders, Professional and technical associations and other
units within the organization.
Project management information system is a part of
the enterprise environmental factors.
It provides access to an automated tools, such as:
A scheduling software tool
A configuration management system
An information collection and distribution
system
Web interfaces to other online automated
systems
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Direct and Manage Project Execution: Outputs

Deliverables: An approved deliverable is any unique and verifiable product to
perform a service to complete a process, phase, or project.
Work Performance Information: Collective information as the project
progresses. This includes:
Deliverables status
Schedule progress
Costs incurred
Change Requests: Issues found during the project work. These issues may
modify Project's: Policies or procedures, scope, cost, schedule or quality.
Requests for a change can
include:
Corrective action
Preventive action
Defect repair
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Direct and Manage Project Execution: Outputs

Project management plan that may be updated include:
Requirement, Schedule, Cost, Quality, Human, Communications,
Risk, Procurement Management Plans

Project Baselines
Project documents that may be updated include:
Requirement documents
Project logs (issue, assumption, etc.)
Risk register
Stakeholder register
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Process - Monitor and Control Project Work

The process of tracking, reviewing, and regulating the progress to meet
the performance objectives defined in the project management plan.
Monitoring includes:
Collecting
Measuring
Distributing performance information, and
Assessing measurements and trends to improve processes
Controlling includes:
Determining corrective or preventive actions

Replanning and following up on action plans
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Comparing actual project performance against the project
management plan.
Assessing performance to determine whether any corrective or
preventive actions are indicated, and recommending those actions as
necessary.
Identifying new risks and analyzing, tracking, and monitoring existing
project risks.
Maintaining an accurate, timely information base concerning the
project's product(s) and their associated documentation through
project completion.
Providing information to support status reporting, progress
measurement, and forecasting.
Providing forecasts to update current cost and current schedule
information.
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Monitor and Control Project Work Inputs, Tools,

and Outputs

Performance reports
Enterprise environmental
factors
Organizational process as
sets
Expert judgment
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Monitor and Control Project Work Outputs

Change requests
Project document updates
Project Management Plan

Project Document
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Process - Perform Integrated Change Control

It is performed from project inception through
completion.
The project management plan, scope statement, and other deliverables must
be maintained by carefully and continuously managing changes by:
Rejecting changes OR
Approving changes
Incorporate approved
changes
into revised baseline.
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Influencing the factors that circumvent change control so
that only approved changes are implemented.

Reviewing, analyzing, and approving change requests promptly
(slow decision may negatively affect time, cost, or the feasibility

of a change)
Managing approved changes.

Releasing approved changes for incorporation into the project
management plan and project documents.

Reviewing, approving, or denying all recommended corrective
and preventive actions.

Coordinating changes across the entire project.
Documenting the complete impact ofProject
change
requests.
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Every (documented) change must be either accepted or rejected by
some authority.
Within the project management team OR
External organization
Many times, change control system includes a
change control board (CCB) responsible for
approving o rejecting change requests.
If the project is being provided under a contract,
then some proposed changes need to be
approved by the customer.
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Note
Do not consider yourself an opponent of changes by
default, but you do need to manage changes and make
sure each change goes through the change control
system and that changes do not make their way through
the backdoor. So, when it comes to changes, the
keyword is control, not oppose.
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Configuration Management System

A configuration management system with integrated change control
provides, a standardized, effective, and efficient way to manage approved
changes and baselines within a project.
Specifications of deliverables
and processes
Configuration control focuses

on
While
Change control focuses on
Identifying, documenting and

controlling changes to the
project and the product
baselines
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Configuration management system, including change control
processes, accomplishes three objectives:
Establish an evolutionary method to consistently identify and
request changes to established baselines, and assess the value
and effectiveness of those changes.
Provides opportunities to continuously validate and improve the
project by considering the impact of each change.
Provides mechanism for the project management team to
consistently communicate all approved and rejected changes to
the stakeholders.
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Configuration management activities included in the integrated change
control processes are:
Configuration
Identification
Configuration status
accounting
Configuration verification and
audit
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Perform Integrated Change Control Inputs, Tools,

and Outputs
Project management
plan
Work performance
information
Change requests
Enterprise environmenta
l factors
Organizational process
assets
Expert judgment
Change control
meetings
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Perform Integrated Change Control Outputs

Change request status updates
Project management plan updates
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Process - Close Project or Phase
The process of finalizing all activities across all the Project Management
Process Groups to formally complete the project or phase.
Includes activities to investigate and document the reasons if a project
is terminated before completion.
Activities for administrative closure of the project or
phase:
Satisfy completion or exit criteria for the phase or
project
Transfer the projects products, services, or results
to the next phase or production or operations
Collect project or phase records, audit project
success or failure, gather lessons learned and
archive project information for future use.
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Close Project or phase Inputs, Tools, and

Outputs
Project management
plan
Accepted deliverables
assets
Expert judgment
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or result transition
Organizational
process assets
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Close Project or Phase
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Close Project or Phase - Outputs
Final product, service, or result transition:

- refers to the transition of the final product, service, or result
that the project was authorized to produce. (based on
transition criteria)
Organizational Process Assets Updates:

- includes project files, project or phase closure documents, and
historical information, etc.
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PROJECT SCOPE MANAGEMENT
Management
Framework
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Course Structure
Project Scope Management
Introduction
Project Scope Management - Introduction
Collect Requirements
Collect Requirements: Inputs, Tools, and Outputs
Define Scope
Define Scope: Inputs, Tools, and Outputs
Create WBS
Create WBS: Inputs, Tools, and Outputs
Verify Scope
Verify Scope: Inputs, Tools, and Outputs
Control Scope
Control Scope: Inputs, Tools, and Outputs
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Introduction
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The processes required to ensure that the
project includes all the work required, and only
the work required to complete the project
successfully.
It is primarily concerned with defining and

controlling what is and what is not included
in the project.
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Project Scope Management - Processes

Collect Requirements: process of defining and documenting stakeholders needs to
meet the project objectives.
Define Scope: process of developing a detailed description of the project and
product.
Create WBS: process of subdividing
project deliverables and project work
into smaller, more manageable
components.
Verify Scope: process of formalizing
acceptance of the completed project
deliverables.
Control Scope: process of monitoring the status of the project and product scope
and managing changes to the scope baseline.
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Product Scope vs. Project Scope

Product Scope:
The features and functions that characterize a product, service, or result.
Completion of the product scope is measured against the product requirements.
Project Scope:
The work that needs to be accomplished to deliver a product, service, or result with the
specified features and functions.
Completion of the project scope is measured against the project management plan.
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The work involved in performing the five processes of Project Scope Management is
preceded by a planning effort by the project management team.
This planning effort is part of the Develop Project Management Plan process, This
includes:
Time,
Cost, and
Scope management
Scope Management Plan process provides
guidance on how project scope will be:
Defined
Documented
Verified
Managed, and
Controlled
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The process of defining and documenting stakeholders needs to meet the project
objectives.
Categories of Requirements
Project Requirements
Product Requirements
Business Requirements
Technical Requirements
Project management Requirements
Security Requirements
Delivery Requirements
Performance Requirements
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Requirements become the foundation of Scope definition.
Cost, schedule, and quality planning are built on these
requirements.
The development of requirements begins with an analysis
of the information contained in:
The project charter

The stakeholder register
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Collect Requirements Inputs, Tools, and Outputs
Project Charter
Requirements documentation
Interviews
Requirements management
Focus groups
plan
Facilitated workshops
Group creativity techniques Requirements traceability
matrix
Group decision making techniques
Questionnaires and surveys
Observations
Prototypes
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Collect Requirements Tools and Techniques

Technique Key Characteristics
Limitations
Interview
A formal or informal method to find

out information by talking to the
stakeholders directly
Often conducted one-on one
Analysis of the data

becomes difficult
Expensive and time
consuming
Interviewer can be biased
Focus groups
Bring stakeholders and subject

matter experts together to learn
about their expectations and
attitudes towards a proposed
product, service, or result
Trained moderator guides through
an interactive discussion
More conversational than a
one-on-one interview
Cost of finding a
moderator with good
facilitative skills and venue
May be dominated by one
or two participants only
becomes difficult and time
consuming
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Facilitated
Workshops
Group
Creativity
Technique
Sessions to bring key crossfunctional stakeholders together to

define product requirements
A primary technique for quickly
defining cross-functional
requirements and reconciling
stakeholder differences
Issues can be discovered and
resolved more quickly than in
individual sessions
Brainstorming
Nominal group technique
The Delphi technique
Idea/mind mapping
Affinity diagram
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Limitations
Difficult to keep focused,
clear purpose and desired
outcome
May be dominated by
powerful individuals

becomes difficult and time
consuming
May loose the focus of the
discussion
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Technique
Key
Characteristics
Group Decision
An assessment process of
multiple alternatives with an
expected outcome for future
actions
Used to generate, classify, and
prioritize product requirements
Multiple methods such as,
Unanimity, Majority, Plurality, and
Dictatorship
Time consuming
May be dominated by
powerful people
Problems and conflicts
occur due to non
acceptance of some
decisions
Written sets of questions

designed to quickly gather
information from wide number of
audiences
Statistical analysis is appropriate
No response for selective

items
Time consuming
Making
Techniques
Questionnaires
and Surveys
Limitations
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Limitations
Observations
A direct way of viewing individuals

in their environment and how they
perform their jobs or tasks
Can also be done by a participant
observer who actually performs a
process or procedure to experience
how it is done
May land up collecting

unimportant material
Unable to observe large
population
Data analysis can be time
consuming
Prototypes
A method of providing a working

model of the expected product
before actually building it
Allows stakeholders to experiment
with a model rather than only
discussing abstract representations
Too slow process

Time consuming and
expensive
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Collect Requirements Outputs

Requirements Documentation: describes how individual
requirements meet the business need for the project.
Format of a requirements documents may be,
A simple document
listing all the
requirements
categorized by
stakeholder and priority
Elaborate forms containing

executive summary,
detailed descriptions, and
attachments
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Requirements documentation include:
Business need or opportunity to be seized, describing the limitations of the
current situation and what the project has been undertaken
Business and project objectives for traceability
Functional requirements, describing business processes, information,
and interaction with the product, as appropriate which can be documented
textually in a requirements list, in models, or both
Non-functional requirements, such as level of service, performance, safety,
security, compliance, supportability, retention/purge, etc
Quality requirements
Acceptance criteria
Business rules stating the guiding principles of the organization
Impacts to other organizational areas, such as the call center, sales force,
technology groups
Impacts to other entities inside or outside the performing organization
Support and training requirements
Requirements assumptions and constraints
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Requirements Management Plan: documents how requirements will
be analyzed, documented, and managed throughout the project.
Requirements Management Plan includes:
How requirements activities will be planned, tracked, and reported
Configuration management activities such as:

how changes to the product, service, or result requirements will be
initiated,
how impacts will be analyzed,
how they will be traced, tracked, and reported, as well as the authorization
levels
required to approve these changes
Requirements prioritization process
Product metrics that will be used and the rationale for using them
Traceability structure, that is, which requirements attributes will be captured on
the traceability matrix and to which other project documents requirements will be
traced.
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Requirements Traceability Matrix:
Is a table that links requirements to their origin and
traces them throughout the project life cycle.
Ensures that each requirement adds business value
by linking it to the business and project objectives.
Provides a structure for managing changes to the
product scope.
This process includes tracing requirements to:
Sample RTM
Business needs, opportunities, goals, and objectives
Project objectives
Project scope/WBS deliverables
Product design and development
Test strategy and test scenarios, and
More detailed requirements from high-level
requirements
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Define Scope
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Define Scope
The process of developing a detailed
description of the project and product.
A detailed project scope statement is critical
to project success and builds upon the major
deliverables, assumptions, and constraints
that are documented during project initiation.
During planning, the project scope is defined
and described with greater specificity as
more information about the project is known.
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Define Scope Inputs, Tools, and Outputs
Project Charter
- If in the performing
organization, project charter
is not used then comparable
information needs to be
acquired and used as a
basis for the detailed
project scope statement.
Requirements
documentation
Organizational process asse
ts
Expert judgment
Product analysis
Alternatives
identification
Facilitated workshops
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Define Scope Outputs

The detailed project scope statement includes:
Product scope description

Product acceptance criteria
Project deliverables
Project exclusions
Project constraints
Project assumptions
Project Document Updates:

Requirements documentation, and
Requirements traceability matrix
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Define Scope Data Flow Diagram
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Create WBS
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Create WBS
Create Work Breakdown Structure (WBS) is the process of subdividing project

deliverables and project wok into smaller, more manageable components.
Requirements become the foundation of WBS.
The WBS is a deliverable-oriented hierarchical decomposition of the work to be

executed by the project team, to:
Accomplish project objectives and
Create required deliverables
The lowest level of WBS component are called

work packages and it can be:
Scheduled
Cost Estimated
Monitored
Controlled
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Create WBS Inputs, Tools, and Outputs
Project scope statement

Requirements
documentation
Organizational process a
ssets
Decompositio
n
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WBS dictionary
Scope baseline
Project document upd
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Create WBS Outputs

WBS
WBS dictionary
A document generated by the Create

WBS process that supports the
WBS.
Scope baseline
Project Scope
Statement

WBS
WBS dictionary
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Work Breakdown Structure
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Work Breakdown Structure - Example
RSD Requirement Specification

Design
RTM Requirement Traceability Matrix
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Create WBS Data Flow Diagram
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Verify Scope
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Verify Scope
The process of formalizing acceptance of the completed project deliverables.
Verify Scope includes:
Reviewing deliverables to ensure

satisfactory completion
Obtaining formal acceptance
of deliverables
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Scope Verification vs. Quality Control
Scope verification is primarily concerned with the acceptance of deliverables,

while quality control is primarily concerned with meeting quality requirements
specified for the deliverables.
If the project is terminated early, the project scope verification process should
establish and document the extent of completion.
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Verify Scope Inputs, Tools, and Outputs

Requirements traceability
matrix
Validated deliverables
- Completed and checked for
correctness by the Perform
Quality Control process.
Inspection
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Verify Scope Outputs
Accepted deliverables: Formal documentation received from the customer or

sponsor acknowledging stakeholder acceptance
of the projects deliverables is forwarded to the Close project or Phase
process.
Project Document Updates: Include any documents that define the product or
report status on product completion.
Change requests
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Verify Scope Outputs

Deliverable
Integrated
Change
Control
Accepted
Not Accepted
Close
Documented for
Non-acceptance
Defect Repair
Change Request
Yes
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Verify Scope Data Flow Diagram
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Control Scope
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Control Scope
The process of:

Monitoring the status of the project and product scope
Managing changes to the scope baseline
It ensures that all requested changes and recommended corrective actions are
processed through the Perform Integrated Change Control process.
It is also used to manage the actual changes when

they occur and integrated with other control processes.
Uncontrolled changes are often referred to

as project scope creep.
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Control Scope Inputs, Tools, and Outputs

- Contains: Scope baseline,
Scope management plan,
Change management plan,
Configuration management
plan, and Requirements
management plan.
Work performance
information
Requirements
documentation
Requirements traceability
matrix
Organizational process asse
ts
Variance analysis
- Determining the
cause and
degree of
variance relative
to the scope
baseline
- Deciding
whether
corrective or
preventive action
is required.
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assets updates
Change requests
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Control Scope Outputs

Work performance measurement
Organizational process assets updates
Change requests
Scope Baseline Updates

Other Baseline Updates
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Control Scope Data Flow Diagram
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PROJECT TIME MANAGEMENT
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Course Structure
Project Time Management
Introduction
Project Time Management Introduction
Define Activities
Define Activities : Inputs, Tools, and Outputs
Sequence Activities
Sequence Activities : Inputs, Tools, and Outputs
Estimate Activity Resources
Estimate Activity Resources : Inputs, Tools, and Outputs
Estimate Activity Duration
Estimate Activity Duration : Inputs, Tools, and Outputs
Develop Schedule
Develop Schedule : Inputs, Tools, and Outputs
Control Schedule
Control Schedule : Inputs, Tools, and Outputs
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The processes required to manage timely completion of the project.
They include the following:
Define Activities - process of identifying the specific actions to be
performed to produce the project deliverables.

Sequence Activities - process of identifying and documenting
relationships among the project activities.

Estimate Activity Resources - process of estimating the type and quantities
of material, people, equipment, or supplies required to perform each activity.

Estimate Activity Durations - process of approximating the number
of work periods needed to complete individual activities with estimated
resources.
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Develop Schedule - process of analyzing activity sequences, durations,
resource requirements, and schedule constraints to create the project
schedule.
Control Schedule - process of monitoring the status

of the project to update project progress and managing
changes to the schedule baseline.
*Note: Majority of effort in the Project Time Management
is incurred in the Control Schedule process
to ensure completion of project work on time.
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Scheduling Overview
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Define Activities
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Define Activities
The process of identifying the specific actions to be performed to produce the

project deliverables.
Project work packages that are decomposed into smaller components

called activities to provide basis for:
Estimating
Scheduling
Executing
Monitoring and Controlling the project work

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Define Activities Inputs, Tools, and Outputs
Scope baseline
Enterprise environmental fa
ctors
Organizational process ass

ets
Decomposition
- Involving team
members in the
decomposition can
lead to better and
more accurate results.
Rolling wave planning
Templates
Expert judgment
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Activity
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Milestone list
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Rolling Wave Planning
A form of progressive elaboration planning where,

- the work to be accomplished in the near term is planned in detail and
- future work is planned at a higher level of the WBS.
Work can exist at various levels of detail depending on where it is in the project life
cycle.
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Define Activities Data Flow Diagram
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Define Activities Outputs

Activity list
- It is a comprehensive list including all schedule activities
required on the project.
Activity attributes
- Extend the description of the activity by identifying the multiple
components associated with each activity.
Milestone list
- A milestone is a significant point or event in the project.
Mandatory (Such as those required by contract)
- Milestone List
Optional (Such as those based upon historical information
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Sequence Activities
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Sequence Activities
The process of identifying and documenting relationships among project

activities. Activities are sequences using logical relationships.
Every activity and milestone except the first and last are connected to at least one
predecessor and one successor.
It may be necessary to use lead and lag time between activities to support a
realistic and achievable project schedule.
Sequencing can be performed by using:

- project management software or
- manual or automated techniques
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Sequence Activities Inputs, Tools, and Outputs
Activity list
Activity attributes
Milestone list
Project scope
statement
Organizational proc
ess assets
Precedence Diagramming
Method (PDM)
Dependency determination
Applying leads and lags
Schedule network templates
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Sequence Activities Data Flow Diagram
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Precedence Diagramming Method (PDM)

PDM is a method used in Critical Path Method (CPM) for constructing a project
schedule network diagram.
It uses boxes or rectangles, referred to as nodes, to represent activities, and
connects them with arrows that show the logical relationships that exist between
them. Also known as Activity On Node (AON)
Four types of
dependences
included in PDM:
Finish-to-start (FS)
Finish-to-finish (FF)
Start-to-start (SS)
Start-to-finish (SF)
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Types of Dependencies
FINISH
START
Completion of successor Initiation of the successor

depends on completion of depends on completion of the
predecessor
predecessor
Completion of the
successor depends upon Initiation of the successor
the initiation of
activity depends on the
predecessor
initiation of predecessor
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Types of Dependencies
Finish to start
Finish to Finish
Start to Start
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Dependency Determination
Following types of dependencies are used to define the sequence among the activities:
Mandatory dependencies Those that are contractually required or inherent in the

nature of the work being done (referred to as Hard logic).
Discretionary dependencies Established based on - knowledge of best practices
and unusual aspect of the project. (referred to as preferred logic, preferential logic, or
soft logic)
Discretionary dependencies should be fully documented since they can create
arbitrary total float values and can limit later scheduling options.
When fast tracking techniques are employed, these discretionary dependencies
should be reviewed and considered for modification of removal.
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Dependency Determination
External dependencies The project management team determines which

dependencies are external dung the process of sequencing the activities.
Involves relationship between project activities and non-project activities (sub
contractors).
These dependencies are usually outside the project teams control.
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The process of estimating the type and quantities of:
Material
People
Equipment
Supplies required to perform each activity.
It is closely coordinated with the Estimate

Costs process.
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Estimate Activity Resources Inputs, Tools, and

Outputs
Activity list
Activity attributes
Resource calendars
Enterprise environmenta
l factors
assets
Expert judgment
Alternatives analysis
Published estimating
data
Bottom-up estimating
- When an activity cannot
be estimated with a
reasonable degree of
confidence, the work
within the activity is
decomposed into more
detail
Project management
software
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Resource breakdown
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Estimate Activity Resources Data Flow Diagram
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Estimate Activity Resources Outputs

Resource breakdown structure
- It is a hierarchical structure of the identified resources
by resource category and resource type.
- Examples of resource categories include:
Labour
Material
Equipment
Supplies
- Resource types can include:
Skill level
Grade level
Other information as appropriate to the project.
- It is useful for organizing and reporting project schedule data
with recourse utilization information.
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Estimate Activity Durations
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The process of approximating the number of

work period needed to complete individual
activities with estimated resources.
The duration estimate is progressively

elaborated, based on quality and availability of
the input data and results in better and accurate
estimates.
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Using Project Calendar
&
Resource Calendar
Amount of work effort required

&
Resources to be applied
Number of Work Periods

needed (Activity Duration)
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Estimate Activity Duration Inputs, Tools, and

Outputs
Activity list
Expert judgment
Activity attributes
Analogous estimating
Activity resource
Parametric estimating
requirements
Three-point estimates
Resource calendar
Reserve analysis
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Estimate Activity Duration Data Flow Diagram
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Estimation Methods
1. Analogous Estimating:
Analogous duration estimating is frequently used to estimate project duration

when there is a limited information
Uses parameters such as duration, budgets, size, weight, and complexity,
from a previous, similar project, as the basis for estimation
Uses historical information and expert judgment.
Is generally less costly and time consuming but also less accurate.
Is most reliable when the previous activities are similar in fact and not just in
appearance, and the project team members preparing the estimates have the
needed expertise.
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Estimation Methods
2. Parametric Estimating:
Uses a statistical relationship between historical data and other variables (e.g.
square feet in construction) to calculate an estimate for activity parameters, such
as: cost. budget, and duration.
It can produce higher levels of accuracy depending upon the

sophistication and underlying data built into the model.
It can be applied to a total project or to segments of project, in

conjunction with other estimating methods.
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Estimation Methods
3.Three-Point Estimates:
The accuracy of activity duration estimates can be improved by

considering estimation uncertainty and risk.
Program Evaluation and Review Technique (PERT) uses three estimates
to define an approximate range for an activity's duration:
Most likely (tM) - Realistic expectation
Optimistic (tO) - Best-case
Pessimistic (tP) - Worst-case
PERT analysis calculates an Expected (tE) activity duration using a weighed

average of these estimates
tE = (tO + 4tM + tP )
______________
6
Standard Deviation (SD) = (tP tO ) / 6
Variance = ( SD ) 2 = [(tP tO ) / 6 ] 2
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Example using PERT

For example, take a network with the following dependent tasks, with
each successor task having a finish-to-start relationship with the
predecessor task:
The standard deviation of the total path is given by taking the square root of the
sum of the squares of each task standard deviation.
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Sigma calculations
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Develop Schedule
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Develop Schedule
The process of analyzing activity sequences, durations, resource requirements,
and schedule constraints to create the project schedule.
Developing an acceptable project schedule is often an iterative process.
It determines the planned start and finish dates for project activities and
milestones (dates).
Revising and maintaining a realistic schedule continues throughout the project as
work progresses, the project management plan changes, and the nature of risk
events evolves.
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Develop Schedule Inputs, Tools, and Outputs
Activity list
Activity attributes
Project schedule network
diagrams
Activity resource
requirements
Resource calendars
Activity duration estimates
factors
assets
Schedule network
analysis
Critical path method
Critical chain method
Resource levelling
What-If scenario analysis
Applying leads and lags
Schedule compression
Schedule tool
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Schedule baseline
Schedule data
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Develop Schedule Data Flow Diagram
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Develop Schedule Tools and Techniques

Schedule Network Analysis
It is a technique to generate the project schedule.
It employs various analytical techniques, to calculate the early and
late start and finish dates for the uncompleted portions of project
activities.
These techniques are:
Critical Path Method
Critical Chain Method
What-if Analysis
Resource leveling
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Critical Path Method (CPM)
This method calculates the theoretical early start and finish dates, and the late start
and finish dates, for all activities without regard for any resource limitations.
This is done by performing a forward and backward pass analysis through the
schedule network.
Continue
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Continue
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Demo-Float
Float = Late Start Early Start (or) Late Finish Early Finish
Continue
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Early start and finish dates and late start and finish dates Affected by
activity total float
Critical paths A zero or negative total float
Critical Activities Schedule activities on a critical path
Networks can have multiple near critical paths
Positive difference between early and late dates Total Float
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Critical Chain Method
The resource-constrained critical path is known as the critical chain.
After the critical path is identified, resource availability is entered and the
resource-limited schedule result is determined.
Determining schedule status by comparing
amount of buffer remaining

amount of buffer needed to
protect the delivery date
Difference between the buffer needed and

the buffer remaining, determine if
corrective action is appropriate.
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Resource leveling
A schedule network analysis technique applied to a schedule that has
already been analyzed by the critical path method.
Used when shared or critical required resources are only available at certain
time, in limited quantities, or to keep resource usage at a constant level.
Often cause the original critical path to change.
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What-If Scenario Analysis (Monte Carlo Analysis)
An analysis of the question What if the situation represented by scenario X
happens?
Applying Leads and Lags

Refinements applied during network analysis to develop a viable
schedule.
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Schedule Compression
Shortens the project schedule without changing the project scope.
Crashing
Fast Tracking
Scheduling Tool
Expedite the scheduling process by generating start and finish dates based
on:
the inputs of activities
network diagrams
resources and
activity durations
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Develop Schedule Outputs

Project Schedule
Includes a planned start date and planned finish date for each activity.
Can be presented in summary form, sometimes referred to as the master schedule or
milestone schedule or presented in details
Project schedule can be presented in any of the following forms:
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Control Schedule
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Control Schedule
The process of monitoring the status of the project to update project progress and
manage changes to the schedule baseline.
It is concerned with:
Determining the current status of the project schedule
Influencing the factors that create schedule changes
Determining that the project schedule has changed
Managing the actual changes as they occurs

It is a component of the Perform Integrated Change Control process.
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Control Schedule Inputs, Tools, and Outputs
Project management
plan
Project schedule
Work performance
information
Organizational
process assets
Performance review
Variance analysis
Project management
software
Resource leveling
What-if scenario
analysis
Adjusting leads and
lags
Schedule compression
Scheduling tool
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Change requests
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Control Schedule Data Flow Diagram
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Control Schedule - Outputs

Work performance measurement
- The work packages and control accounts, are documented
and
communicated to stakeholders.
Organizational process assets updates

- Causes of variances
- Corrective action chosen and the reasons
- Other types of lessons learned from project schedule control
Change requests
- Schedule baseline
- Schedule management plan
- Cost baseline

- Schedule Data
- Project Schedule
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Management
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PROJECT COST MANAGEMENT
Management
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Course Structure
Project Cost Management
Introduction
Project Cost Management Introduction
Estimate Costs
Estimate Costs : Inputs, Tools, and Outputs
Determine Budget
Determine Budget : Inputs, Tools, and Outputs
Control Costs
Control Costs : Inputs, Tools, and Outputs
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Introduction
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Project Cost Management - Introduction

It includes the processes involved in estimating, budgeting and controlling costs so that
the project can be completed within the approved budget.
Project Cost Management includes:
Estimate Costs process of developing an approximation of the monetary

resources needed to complete project activities.
Determine Budget process of
aggregating the estimated costs of
individual activities or work packages
to establish an authorized cost
baseline.
Control Costs process of monitoring
the status of the project to update the
project budget and managing changes
to the cost baseline.
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On the smaller scope projects, cost estimating and cost budgeting are tightly linked
and they are viewed as a single process.
The work involved in performing the Project Cost Management processes is

preceded by a planning effort
This planning effort is part of the Develop Project Management Plan process, which
produces a Cost Management Plan.
As example, the Cost Management Plan can

establish:
Level of accuracy
Unit of measure
Organizational procedure links
Control thresholds
Rules of performance measurement
Reporting formats
Process descriptions
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It is primarily concerned with the cost of resources needed to

complete schedule activities.
This broader view of Project Cost Management is called Life Cycle

Costing, it should also consider the effect of project decisions on the
cost of Using
Maintaining and
Supporting
the product, service, or result of the project.
Value Engineering
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Estimate Costs
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Estimate Costs
It is the process of developing an approximation of the monetary resources needed to
complete the project activities.
It includes identification and consideration of costing alternatives such as make
versus buy, buy versus lease, and the sharing of resources in order to achieve optimal
costs.
The accuracy of an estimate will increase as the project progresses through the
project life cycle and thus, cost estimating is an iterative process from phase to phase.
Accu
racy
10% Definitive Estimate
50% Rough Order of Magnitude (ROM)

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Estimate Costs Inputs, Tools, and Outputs
Scope baseline
Scope statement
- Work breakdown structure
- WBS dictionary
Project schedule
Human resource plan
Risk register
factors
assets
Expert judgement
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
Reserve analysis
Cost of quality
Project management
estimating software
Vendor bid analysis
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Activity cost estimates

Basis of estimates
Project document
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Estimate Costs Data Flow Diagram
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Estimate Costs Tools and Techniques

Expert Judgment
Guided by historical information
Determine use of combined methods of estimating
Reconcile differences between these methods
Top-down Estimating
Analogous Estimating
Parametric Estimating
Relies on the actual cost of previous similar

projects
Uses historical information and expert
judgment
Used when limited amount of detailed
information about the project is available
Less costly, time consuming, and less
accurate
Applies to a total project or to segments of
a project
Uses a statistical relationship between

historical data and other variables
Produces higher levels of accuracy
Applies to a total project or to segments
of a project
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Bottom-Up Estimating
A method of estimating a component of
work
Detailed estimation on cost of
individual work packages or activities
Summarizing detailed cost for
subsequent reporting and tracking
purposes
Cost and accuracy depends on the size
and complexity of individual activity or
work package
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Three-Point Estimates
Accuracy of single-point activity cost
estimates can be improved by considering
estimation uncertainty and risk
Three estimates to define an approximate
range for an activity cost:
Most likely (CM)
Optimistic (CO)
Pessimistic (CP)
PERT analysis calculated an expected

(CE) activity cost using a weighted average
of these three estimates.
CE = CO +4CM +CP
Add-on techniques
Reserve Analysis
Cost of Quality (COQ)
Project Management Estimating
Software
Vendor Bid Analysis
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Estimate Costs - Outputs

Activity Cost Estimates
Cost can be either Variable or Fixed
Variable Cost: Cost changes with the
amount of work (e.g. Material Cost)
Fixed Cost: Cost does not change with the
amount of work (e.g. Rentals)
Cost can be either Direct or Indirect
Direct Cost: Costs that are directly
attributable to work on the project. (Team
Wages)
Indirect Cost: Overheads or costs incurred
for the benefit of more than one project.
(h/w, s/w purchased)
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Estimate Costs Outputs

Basis of estimates
- The amount and type of additional details supporting the cost
estimate vary by application area.
- Supporting details for activity cost estimates provide a clear and complete
understanding of how the cost estimate was derived.

- For example, Risk register
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Determine Budget
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Determine Budget
The process of aggregating the estimated costs of individual
activities or work packages to establish an authorized cost
baseline.
This baseline includes all authorized
budgets, but excludes management reserves.
Project budgets constitute the
funds
authorized to execute the project.
Project cost performance will be
measured against the authorized budget.
Cash Flow, Cost Baseline and Funding - Graphical Display

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Determine Budget Inputs, Tools, and Outputs

Basis of estimates
Scope baseline
- Scope Statement
- Work breakdown structure
- WBS dictionary
Project schedule
Resource calendars
Contracts
assets
Cost aggregation
Reserve analysis
Expert judgment
Historical
relationships
Funding limit
reconciliation
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Cost performance
baseline
Project funding
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Project document
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Determine Budget Data Flow Diagram
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Determine Budget Tools and Techniques

Reserve Analysis
It can establish both, the contingency reserves and the
management reserves for the project.
Contingency reserves Allowances for unplanned but potentially required
changes that can result from realized risks identified in the risk register.
Management reserves Budgets reserves for unplanned changes to project
scope and cost.
Reserves are not a part of the project cost baseline, but may be included in
the total budget for the project and they are not included as a part of the
earned value measurement calculations.
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Cost Roll Up
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Control Costs
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Control Costs
The process of monitoring the status of the project to update the project budget and
managing changes to the cost baseline.
Any increase to the authorized budget can only be approved through the Perform
Integrated Change Control process.
The key to effective cost control is the management of the approved cost
performance baseline and the changes to that baseline.
What type of different activities could be

included?
Influencing factors that create changes to 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 expenditure do not exceed the authorized funding, by period and in total
for the project.
Monitoring cost performance to isolate and understand variance from the approved cost
baseline.
Monitoring work performance against funds expended.
Preventing unapproved changes from being included in the reported cost or resource usage.
Incoming appropriate stakeholders of all approved changes and associated cost.
Acting to bring expected cost overruns within acceptable limits.
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Control Costs Inputs, Tools, and Outputs

Project funding
requirements
Work performance
information
assets
Earned value management

Forecasting
To-complete performance
index
Performance reviews
Variance analysis
Project management software
- Analysis of project
performance can result to the
cost performance baseline or
other components of the
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Budge forecasts
assets updates
Change requests

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Control Costs Data Flow Diagram
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Control Costs Tools and Techniques

Earned Value Management (EVM) integrates project scope, cost,
and schedule measures to help the project management team
assess and measure project performance and progress.
Important Terms:
Planned Value (PV): Estimated value of the work planned to be
done.
Earned Value (EV): Estimated value of the work actually
accomplished.
Actual Cost (AC): Actual money spent for the work
accomplished.
Budget at Completion (BAC): Budget for the total project
work.
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Earned Value, Planned Value, and Actual Costs
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Forecasting
The project team can develop a forecast for the estimate at completion
(EAC) that may differ from the budget at completion (BAC) based on the project
performance.
Estimate at Completion (EAC): How much at present we expect total

project to cost.
Estimate to Complete (ETC): How much more, at present, we expect
it to cost to finish the project.
Variance at Completion (VAC): How much over or under budget, do
we expect to be at the end of project.
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Cost Management Formulae

Item
Formula
Remark
Cost Variance (CV)
EV AC
Negative value indicates over budget and positive

value indicates under budget
Schedule Variance (SV)
EV PV
Negative value indicates behind schedule and

positive value indicates ahead of schedule
Cost Performance Index (CPI)
EV / AC
Lesser than one indicates over budget and greater

than one indicates under budget
Schedule Performance Index

(SPI)
EV / PV
Lesser than one indicates behind schedule and

greater than one indicates ahead of schedule
Estimate at Completion (EAC)
BAC / CPI
Considering that the rate of spending remains the

same
AC + ETC
Considering that the current estimate is

fundamentally flawed
AC + (BAC EV)
AC + [(BAC EV) /
CPI]
Estimate to Complete (ETC)
Considering typical variances
EAC AC
Considering that the current estimate is

fundamentally flawed
BAC EV
Considering atypical variances
(BAC EV) / CPI

Variance at Completion (VAC)
Considering atypical variances
BAC EAC
Considering typical variances

Considering the status of the budget expected at
the end of the project
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To-Complete Performance Index (TCPI)
Work Remaining (BAC EV)
= TCPI
Funds Remaining (BAC AC) or (EAC AC)
The calculated projection of cost performance that must be achieved

on the remaining work to meet a specified management goal, such as
the BAC or the EAC.
If it becomes obvious that the BAC is no longer viable, then the project manager
develops a forecasted estimate at completion (EAC).
Once approved, the EAC effectively supersedes the BAC as the cost
performance goal.
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Important Financial Terms

Financial Term
Definition
Benefit Cost
Ratio (BCR)
Compares the benefits (revenues) to the costs of different options
Chart of
Accounts
Any numbering system used to monitor project costs by category (for example, labor,
supplies, and materials)
Depreciation
Reduced price of an asset over time attributable to deterioration, obsolescence, and

impending retirement
Applies particularly to physical assets such as equipment and structures
Straight Line depreciation: Standard amount depreciating every year
Accelerated depreciation: Value depreciating at a faster rate, for example, Double
Declining method and Sum of the Years Digits
Internal Rate of
Return (IRR)
Rate at which the project inflows and project outflows are equal
Project with greatest IRR is generally selected
Net Present
Value (NPV)
Present value of the total benefits minus costs over many time periods
Investment is profitable for positive NPV
Project with greatest NPV is selected
Opportunity Cost
Opportunity given up by selecting one project over another
Payback Period
Time period it takes to recover the investment made in the project before the profits start
accumulating
Present Value
The current value of future cash flows.
Sunk Cost
Expended costs, to be avoided when deciding whether to continue with a troubled project
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PROJECT HUMAN RESOURCE MANAGEMENT
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Course Structure
Project Human Resource Management
Introduction
Project Human Resource Management Skills
Project Human Resource Management Processes
Develop Human Resource Plan
Develop Human Resource Plan : Inputs, Tools, and Outputs
Human Resource Theories
Acquire Project Team
Acquire Project Team : Inputs, Tools, and Outputs
Develop Project Team
Develop Project Team : Inputs, Tools, and Outputs
Manage Project Team
Manage Project Team : Inputs, Tools, and Outputs
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Project Human Resource Management Skills

Project Human Resource Management relies on the substantial body of literature
about dealing with people.
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Project Human Resource Management - Introduction
Project Human Resource Management includes the processes that organize,

manage, and lead the project team.
The project team is comprised of the people who have been assigned roles and
responsibilities for completing the project.
Involvement and participation of team members in project planning and decision

making can be beneficial and early involvement adds their expertise and
strengthens their commitment to the project.
The project management team (referred as the

core, executive, or leadership team) is a subset
of the project team and is responsible for the
project management and leadership activities.
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Project Human Resource Management - Introduction
Managing and leading the project team includes:
Influencing the project team
Professional and ethical behavior

Human Resource factors that may impact the
project:
Team environment
Geographical locations of team members
Communications among stakeholders
Internal and external politics
Cultural issues
Organizational uniqueness
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It is the process of identifying and documenting:
Project roles, responsibilities, and required skills
Reporting relationships and
Creating a staffing management plan
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It also documents:
Timetable for staff acquisition and release

Identification of training needs
Team-building strategies
Plans for recognition and rewards programs
Compliance considerations
Safety issues
Impact of the staffing management
plan on the organization
The availability of, or competition for, scarce or limited human

resources should be considered.
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Develop Human Resource Plan Inputs, Tools,

and Outputs
Activity resource requirements

Organization charts and

position descriptions
Networking
Organizational theory
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Develop Human Resource Plan Tools and Techniques

Organization Charts
Hierarchical
Matrix-based
Position Descriptions
Text-oriented
formats
- A responsibility assignment
matrix (RAM) is used to
illustrate the connections
between work packages or
activities and project team
members.
- One example of RAM is
RACI (responsible,
accountable, consult, and
inform)
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Other sections
of the Project
Management Plan
- Responsibilities related
to managing the project
are listed and explained in
other sections of the
- For example, risk register
lists risk owners,
communication plan lists
team members responsible
for communication
activities.
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Develop Human Resource Plan Tools and

Techniques
Networking Formal and informal interaction with others in an

organisation, industry, or professional environment.
Organizational Theory Provides information regarding the way in which
people, teams, and organizational units behave.
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1. Maslows Hierarchy of Needs:
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2. Hezbergs Theory of Motivation:
Presence of hygiene factors will not motivate people to perform as these are
expected, however, their absence will demotivate performance.
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3.
McGregors Theory of X and Y:

X (Micro Management)
Y (Self Motivated)
4.
Expectancy Theory:
People will behave based on what they expect as a result of their
behavior.
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Develop Human Resource Plan Outputs

Human Resource Plan include:
Roles and responsibilities
Role
Authority
Responsibility
Competency
Project organization chart
Staffing Management Plan includes:
Staff Acquisition
Resource calendars (Resource Histogram)
Staff release plan
Training Needs
Recognition and Rewards
Compliance
Safety
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It is the process of confirming human resource availability and obtaining the team
necessary to complete project assignments.
The project management team have limited control over selecting the team
members due to:
Collective bargaining agreements,
Use of subcontractor personnel,
Matrix project environment,
Internal or external reporting relationships

and other various reasons
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Impact of unavailability of the required human resources get reflected in:
Project schedules
Project budgets
Customer satisfaction
Project quality
Project risks
Training plans and the other project
management plan as required
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Acquire Project Team Inputs, Tools, and Outputs

factors
assets
Pre-assignment
Negotiation
Acquisition
Virtual teams
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Project staff
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Resource
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Staffing
management plan
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Acquire Project Team Tools and Techniques

Virtual Teams
Groups of people with a shared goal who fulfill their roles with little
or no time meeting face to face.
The availability of electronic communication such as
e-mail, audio conferencing, web-based meetings
and video conferencing has made such teams
feasible.
Communications planning becomes increasingly
important in a Virtual Team Environment.
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Competencies
It is the process of improving
Interactions
Overall environment
To achieve high performance and to meet the projects

objectives, project managers should have skills to:
Identify
Build
Maintain
Motivate, Lead, and Inspire project teams
Continue
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Project managers should motivate their team by:

Providing challenges and opportunities
Providing timely feedback and support as needed
Recognizing and rewarding good performance
High team performance can be achieved by:

Using open and effective communication
Developing trust among team members
Managing conflicts in a constructive manner
Encouraging collaborative problem-solving
and decision-making
Teamwork is critical for project success, and developing effective project teams is
one of the primary responsibilities of the project manager.
Continue
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Develop Project Team Inputs, Tools, and Outputs
Project staff
assignments
Project management
plan
Resource calendars
Interpersonal skills
Training
Team-building
Activities
Ground rules
Co-location
Recognition and
rewards
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Develop Project Team Tools and Techniques

Team-Building Activities
Forming
Storming
Norming
Performing
Adjourning
Co-location
- Involves placing of the most active project team members in the same
physical location to enhance their ability to perform as a team.
- This may require,
a team meeting room
places to post schedules
other conveniences that enhance communication and a sense of community.
Continue
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Develop Project Team Tools and Techniques

Recognition and Rewards
Recognition and Rewards should be given - willingness to
work overtime to meet an aggressive schedule objective
Recognition and rewards should not be given - need to work
overtime due to poor planning by the team member
Avoid win-lose (zero sum) rewards
People are motivated
When they feel they are

valued in the organization
Recognition and rewards should

be given to make them feel that
they are valued
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Develop Project Team Outputs

Team Performance Assessments
The project management team makes formal or informal assessments
of the project teams effectiveness and as a result, the project management
team can identify the specific:
- training
- coaching
- mentoring
- assistance
of changes required to improve the teams performance.
The evaluation of a teams effectiveness include:

Improvements in skills and competencies
Reduced staff turnover rate
Increased team cohesiveness
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Manage Project Team

It is the process of:
Tracking team member performance

Providing feedback
Resolving issues
Managing conflict
Managing changes to optimize project performance
Appraising team member performance
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Manage Project Team

As a result of managing project team:
Change requests are submitted.
Human resource plan is updated.
Issues are resolved.
Input is provided for performance appraisal.
Lesson learned are added to the organization database.
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Manage Project Team Inputs, Tools, and Outputs
Project staff assignments

Staffing management plan
Team performance
assessment
Performance reports
assets
Observation and
conversation
Project performance
appraisals
Conflict management
Issue log
- Staffing changes, whether by

choice or by uncontrollable
events, can affect the rest of
the project management plan.
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Leadership Styles
Directing : Telling others what to do.
Facilitating : Coordinating the inputs of others.
Coaching : Instructing others.
Supporting : Providing assistance along the way.
Autocratic : Making decisions without gathering information from
other team members.
Consultative : Inviting ideas and suggestions from team members.
Consensus : Problem solving in a group with decision making
based on group agreement.
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Various Powers of a Project Manager
Formal (Legitimate)
Reward
Penalty (Coercive)
Expert
Referent
(Best forms of power are EXPERT and REWARD)
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Conflict Management
Characteristics of conflict and the conflict management process:
Conflict is natural and forces a search for alternatives
Conflict is a team issue
Openness resolves conflict
Conflict resolution should focus on issues, not personalities
Conflict resolution should focus on the present, not the past
Six general techniques for resolving conflict:
Withdrawal / Avoidance
Smoothing / Accommodating
Compromise
Forcing
Collaborating
Confronting / Problem Solving
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Interpersonal Skills
Project managers use a combination of,
Technical
Human
Conceptual skills
To analyze situations and interact appropriately with team members
Using appropriate interpersonal skills aids project managers in

capitalizing on the strengths of all team members.
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Management
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PROJECT COMMUNICATIONS MANAGEMENT
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Course Structure
Project Communications Management
Introduction
Basic Communication Model
Project Communications Management Processes
Identify Stakeholders
Identify Stakeholders : Inputs, Tools, and Outputs
Plan Communications
Plan Communications : Inputs, Tools, and Outputs
Distribute Information
Distribute Information : Inputs, Tools, and Outputs
General Communication Dimensions
Manage Stakeholder Expectation
Manage Stakeholder Expectation : Inputs, Tools, and Outputs
Report Performance
Report Performance : Inputs, Tools, and Outputs
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It includes the processes required to ensure timely and appropriate:
Generation
Collection
Distribution
Storage
Retrieval and
Ultimate disposition of
project information
Project Managers majority of time (90%) is spent in communicating with the project
team and other stakeholders (internal or external to the organization).
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Effective communication creates a bridge between diverse stakeholders involved
in a project by:
Connecting various cultural and organizational backgrounds
Different levels of expertise
Various perspectives and interests in the project execution or outcome
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Communication activity has many potential dimensions, including:
Internal (within the project) and external (customer, other projects, the media, the
public)
Formal (reports, memos, briefings) and informal (emails, ad-hoc discussions)
Vertical (up and down the organization) and horizontal (with peers)
Official (newsletters, annual report) and unofficial (off the record communications)
Verbal and non-verbal (voice inflections, body language)
Written and oral
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Communication skills common for general and project management:
Listening actively and effectively

Questioning, probing ideas and situations
Educating to increase teams knowledge
Fact-finding to identify or confirm information
Setting and managing expectations
Persuading a person or organization
Negotiating to achieve mutually
acceptable agreements between parties
Resolving conflict to prevent disruptive
impacts
Summarizing, recapping, and
identifying the next steps
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Project Communications Management - Processes
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Identify Stakeholders
It is critical to identify stakeholders early in the project, and to analyze their levels of
interests, expectations, importance, and influence.
A strategy can be developed for approaching each stakeholder and determining the
level and timing of their involvement to maximize positive influences and mitigate
potential negative impacts.
Stakeholders should be classified according to their interest, influence and
involvement as this enables the project manager to focus on the relationships
necessary to ensure the success of the project due to limited time.
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Identify Stakeholders Inputs, Tools, and Outputs
Project charter
Procurement documents
factors
assets
Stakeholder analysis
Expert Judgement
Stakeholder management
strategy
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Identify Stakeholders Tools and Techniques

Stakeholder analysis Generally follows three steps
Step 1: Identify all potential project stakeholders and relevant information
Step 2: Identify the potential impact each

stakeholder could generate, and classify them
so as
to define an approach strategy.
Stakeholders classification models:
Example
Power/interest grid
Power/influence grid
Influence/impact grid
Salience model
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Identify Stakeholders Tools and Techniques

Step 3: Assess how key stakeholders are likely to react or respond in
various
situations, in order to plan:
How to influence them to enhance their support and
Mitigate potential negative impacts
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Plan Communications
It determines information and communication needs of the project stakeholders. For
example:
Who needs what information
When they will need it
How it will be given to them, and
By whom
This process is tightly linked with enterprise environmental
factors, because the organizations structure will have a
major effect on the project's communications requirements.
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Plan Communications Inputs, Tools, and Outputs
strategy
factors
assets
Communication
requirements analysis
Communications
technology
Communication models
Communication methods
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Communications Requirements Analysis
Number of communication channels : [ n ( n -1) ]

2
where n = Number of stakeholders
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Communications Requirements Analysis
Number of communication
channels = [ n ( n -1) ]
2
= [ 5 ( 5 -1) ]
2
=10
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Communication Technology
Factors that can affect the selection of communication technology

in a project include:
Urgency of the need for information

Availability of technology
Expected project staffing
Duration of the project
Project environment
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Basic Communication Model

The Sender is responsible for making the information
Clear
Unambiguous and
Complete
so that the Receiver receives it correctly.
The Receiver is responsible for ensuring that the information is received in its entirety,
understood correctly and acknowledged.
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Communication Methods
Methods used to share information among project stakeholders are classified
into:
Interactive communication Between two or more parties performing

multidirectional exchange of information.
e.g. meetings, phone calls, video conferencing, etc.
Push communication Sent to specific recipients who need to

know the information. e.g. letters, memos, reports, emails, etc.
Pull communication Used for very large audiences that

requires the recipients to access the communication content
at their own discretion.
e.g. intranet sites, e-learning, etc.
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Communications Management Plan

The Communications Management Plan provides:
Stakeholder communication requirements.

Information to be communicated. (Format, Content,
Level of detail)
Person responsible for communicating the information.
Methods or technology used to convey the information.
Escalation process.
Glossary of common terminology.
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Communications Management Plan

Type of
Information
Purpose of
Distribution
Document
Format
Method of
Distribution
Frequency
Requirements
gathering
To understand
customer
requirements
MS Word
document
Meeting and
written
communication
During
project
initiation
Project
manager
Project team
Weekly status
Project status
update
MS Word
document
E-mail
communication
followed by a
meeting
Weekly
Project
manager
All project
stakeholders
Executive
status
To check
progress and
discuss
corrective
actions
MS Power
Point
presentation
Meeting and
written
communication
Bi-weekly
Operations
manager
Senior
executives
and
functional
heads
Knowledge
sharing
To share
lessons
learned
MS Power
Point
presentation
Classroom
Presentation
Monthly
Team
members
Project team
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Distribute Information
It is the process of making relevant information available to project
stakeholders as planned, this involves:
Implementing communications management plan
Responding to unexpected requests for information
Information distribution methods
include:
Sender-receiver models
Choice of media
Writing style
Meeting management techniques
Presentation techniques
Facilitation techniques
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Distribute Information Inputs, Tools, and Outputs
Project management
plan
Performance reports
- Used to distribute project
performance and status
information,
- Should be made available
prior to project meetings,
- Should be as precise and
current as possible.
assets
Communication methods
Information distribution tools
- Hard-copy document
distribution
- Electronic communication
and conferencing tools
- Electronic tools for project
management
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- Stakeholder notifications
- Project reports
- Project presentation
- Project records
- Feedback from
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- Lessons learned
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Manage Stakeholder Expectations

It is the process of communicating and working with stakeholders to meet their
needs and addressing issues, such as:
Actively managing the expectations of stakeholders
Addressing concerns that have not become issues yet
Clarifying and resolving issues that have been identified
Managing expectations helps to increase the probability

of project success by ensuring that the stakeholders
understand the project benefits and risks.
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Manage Stakeholder Expectations Inputs, Tools, and

Outputs
strategy
Issue log
Change log
assets
Communication
methods
Management skills
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Issue Log
Used to document and monitor the resolution of issues.
Used to facilitate communication and ensure a common
understanding of
issues.
Date Raised Person Resolution

Date
Issue # Issue
Status
Resolution
Added By Assigned Due Date
Resolved
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Report Performance
It is the process of collecting and distributing performance
information,
including status reports, progress measurements, and forecasts.
The performance reporting process involves:

Periodic collection and analysis of baseline versus actual data
Forecasting the project results
Types of Performance Reports
Simple Reports
Elaborate Reports
- Analysis of past performance

- Performance information,
- Current status of risks and issues
such as percent complete,
or status dashboards for each area - Work completed during the period and to be completed n
- Other relevant information which must be reviewed and
(i.e., scope, schedule, cost, and quality)
discussed
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Report Performance Inputs, Tools, and Outputs

Work performance
information
Work performance
measurements
Budget forecasts
Variance analysis
Forecasting
methods
Communication
methods
Reporting systems
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Organizational
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Communications Methods
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Report Performance Tools and Techniques

Forecasting Methods The process of predicting future
project performance based on the actual performance to
date.
Classification of Forecasting Methods:
Time series methods Use historical data as the basis for estimating
future outcomes. Example, earned value, moving average, etc.

Casual/econometric methods Use the assumption that it is possible to
identify the underlying factors that might influence the variable that is
being forecasted. Example, sale of umbrellas associated with weather
conditions.
Judgmental methods Incorporate intuitive judgements, opinions, and
probability estimates. Example, composite forecasts, surveys, etc.
Other methods Include simulation, probabilistic forecasting, and
ensemble forecasting.
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Tabular Performance Report Sample
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PROJECT PROCUREMENT MANAGEMENT
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Course Structure
Project Procurement Management
Introduction
Project Procurement Management Introduction
Plan Procurements
Plan Procurements : Inputs, Tools, and Outputs
Conduct Procurements
Conduct Procurements : Inputs, Tools, and Outputs
Administer Procurements
Administer Procurements : Inputs, Tools, and Outputs
Close Procurements
Close Procurements : Inputs, Tools, and Outputs
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Project Procurement Management

Introduction
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Project Procurement Management Introduction

The processes necessary to purchase or acquire products, services, or results needed
from outside the project team.
The organization can be either the buyer or seller of the products, services, or results of
a project.
It includes the contract management and change control
processes required to develop and administer contracts or

purchase orders.
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Contract
A contract is a mutually binding agreement that obligates:

Seller to provide the specified products, services, or
results.
Buyer to provide monetary or other valuable
consideration.
It is a legal relationship subject to remedy in courts.
Legally binding nature of a contract usually means that it

will be subjected to a more extensive approval process.
The project management team may seek support early from

specialists in contracting, purchasing, law, and technical
disciplines.
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Contract
Depending upon the application area, the seller can also be called contractor,
subcontractor, or vendor, service provider, or supplier.
Depending on the buyers position in the project acquisition cycle, the buyer can
be called a client, customer, prime contractor, contractor, acquiring organization,
service requester, or purchaser.
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Project Procurement Management Processes

Project Procurement Management processes includes:
Plan Procurements process of documenting project purchasing decisions,
specifying the approach, and identifying potential sellers.
Conduct Procurements process of obtaining seller responses, selecting a
seller, and awarding a contract.
Administer Procurements process of managing procurement relationships,
monitoring contract performance, and making changes and corrections as needed.
Close Procurements process of completing each project procurement.
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Centralized vs. Decentralized Contracting

CENTRALISED CONTRACTING
Advantages
Increased expertise in
contracting.
Standardized company
practices.
Contracting professional have a
clearly defined career path.
Dept will provide its employees
training/shared knowledge for
continuous improvement.
Disadvantages
Contracting help may be difficult
to obtain as & when needed.
Contract person may be shared
by different projects
DECENTRALISED CONTRACTING
Advantages
Easier access to contracting
expertise.
Loyalty to the project.
More focused contracting
experience.
Disadvantages
No Home Department for contract
person, after project is completed.
Difficult to maintain high level of
contracting expertise.
Lack of standardization & replication
of efforts.
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Project Managers Role in Procurement

In procurement, the Project Manager should:
Know the procurement process.

Understand contract terms and conditions.
Make sure the contract contains all Project Management Requirements
(Attendance at meeting, reporting, communication etc.)
Identify risks and incorporate mitigation and allocation of risks into the
contract.
Help tailor the contract to the unique needs of the project.
Incorporate schedule for procurement process into the schedule for the project.
Be involved during contract negotiations to protect relationship with the seller
and protect the integrity of the project.
Uphold the entire contract (Not just the contract statement of work).
Work with the Contract Manager to manage changes to the contract.
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Plan Procurements
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Plan Procurements
The process of documenting project purchasing decisions, specifying the
approach, and identifying potential sellers.
This process involves determining:
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Plan Procurement Inputs, Tools, and Outputs
Scope baseline
- Scope statement, WBS, and
WBS dictionary
Teaming agreements
Risk register
Risk-related contract decisions
Activity resource requirements
Project schedule
Cost performance baseline
Make-or-buy
analysis
Expert judgment
Contract types
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management plan
Procurement
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Make-or-buy
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Procurement
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Source selection
criteria
Change requests
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Plan Procurements Data Flow Diagram
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Plan Procurement Inputs

Requirements documentation include:
Important information about project requirements that is considered
during planning for procurements.
Requirements with contractual and legal implications that may
include health, safety, security
Teaming agreements:
Teaming agreements are legal contractual agreements between

two or more entities to form a partnership or joint venture, or some
other arrangements as defined by the parties.
Teaming agreement ends with the ending of new business opportunity.
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Make-or-Buy Analysis
A general management technique used to determine whether particular work can
best be accomplished by the project team or must be purchased from outside
sources.
Budget constraints may influence make-or-buy decisions.
The analysis includes both indirect as well as direct costs.
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Contract Types
The risk shared between the buyer and seller is determined by the contract type.
Types of Contract
Fixed-price Contracts
Cost-reimbursable
Contracts
Time and Material

Contracts (T&M)
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Fixed-price Contracts
Examples
Firm Fixed Price Contract
(FFP)
Contract = $1,100,000
Fixed Price Incentive Fee

Contract (FPIF)
Contract = $1,100,000. For every month

early the project is finished, an
additional $10,000 is paid to the seller.
Fixed Price with Economics

Price Adjustment Contract
(FP- EPA)
Contract = $1,100,000, but a price

increase will be allowed in year two
based on the U.S. Consumer Price Index
report for the year one.
Contract = the contract price is
$1,100,000 but a price increase will be
allowed in year two to account for
increases in specific material costs.
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Cost-reimbursable
Contracts
Cost Plus Fixed Fee
Contracts (CPFF)
Cost Plus Award Fee

Contracts (CPAF)
Examples
Contract = Cost plus a fee of $1,100,000
Contract = Cost plus $5,000 for every

month production exceeds 100,000 units.
Maximum award available is $50,000.
Contract = Cost plus an award fee (to be
determined) for each deliverable
completed at least 7 days early.
X -- 10
X - Y -- 20
X + Y -- 5
Cost Plus Incentive Fee

Contracts (CPIF)
Cost Plus Percentage of
Cost Contracts (CPPC)
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Time and Material

Contracts (T&M)
Example
Contract = $100 per hour plus expenses

or materials at cost.
Contract = $100 per hour plus materials
at $5 per linear meter of wood.
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Risk and Contract Types
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Plan Procurement Outputs

Procurement Management Plan
Describes how the procurement process will be managed from developing
procurement documents through contract closure. This includes:
Types of contracts to be used
Risk management issues
Whether independent estimates will be used and if they are needed as
evaluation criteria;
Managing multiple suppliers;
Coordinating procurement with other project aspects, such as scheduling
and performance reporting
Constraints and assumptions that could affect planned procurements
Establishing the form and format to be used for the procurement/contract
statements of work
Identifying prequalified sellers
Procurement metrics to manage contracts and evaluate sellers.
Handling the make-or-buy decisions and linking them into the Estimate Activity
Resource and Develop Schedule processes
Identifying requirements for performance bonds or insurance contracts to mitigate some
forms of project risk
Establishing the direction to be provided to the sellers on developing and maintaining a
work breakdown structure (WBS)
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A Procurement Management Plan can be:
Formal or informal
Highly detailed or broadly framed
Based upon the needs of each project
Procurement Statements of work

The statement of work (SOW) for each procurement is developed from the
project scope baseline and defines only that portion of the project scope that is
to be included within the related contract.
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Procurement Documents
Common terms for different types of procurements include:
Request for information (RFI),
Invitation for bid (IFB),
Request for proposal (RFP),
Request for quotation (RFQ),
Tender notice,
Invitation for negotiation, and
Invitation for sellers initial response
Source Selection Criteria

Selection criteria are often included as a part of the procurement documents.
Such criteria are developed and used to rate or score seller proposals, and
can be objective or subjective
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Source Selection Criteria, examples:
Understanding of need
Overall or life-cycle cost
Technical capability
Risk
Management approach
Technical approach
Warranty
Financial capacity
Production capacity and interest
Business size and type
Past performance of sellers
References
Intellectual property rights
Proprietary
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Conduct Procurement
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Conduct Procurements
The process of obtaining seller responses,
selecting a seller, and awarding a Contract.
The team will receive bids or proposals and
will apply previously defined selection criteria
to select one or more sellers who are qualified
to perform the work and acceptable as a seller.
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Conduct Procurements Inputs, Tools, and Outputs

Source selection criteria
Qualified seller list
Seller proposals
Project documents
Make-or-buy decisions
Teaming agreement
assets
Bidder conferences
Proposal evaluation
techniques
Independent
estimates
Expert judgment
Advertising
Internet search
Procurement
negotiations
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Selected sellers
Procurement contract
award
Resource calendars
Change requests
Project management
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Project document
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Conduct Procurements Data Flow Diagram
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Conduct Procurements Tools and Techniques

Bidder Conferences (also called as contractor, vendor, and
pre-bid conferences)
- meetings with sellers and buyers prior to submission of a bid
or proposal
- these conferences used to ensure that:
- prospective sellers have a clear and common
understanding of the procurement
(technical and contractual requirements)
- no bidders receive preferential treatment
- incorporation of responses on questions
into the procurement documents as
amendments
- sellers hear every question from each
seller and answers from the buyer
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The process of managing procurement relationship, monitoring contract

performance, and making changes and corrections as needed.
Due to varying organizational structures, many

organizations treat contract administration
as an administrative function separate from the
project organization.
While a procurement administrator may be on

the project team, this individual typically reports
to a supervisor from a different department.
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Project Management Processes that apply to Contractual
relationship include:
Direct & Manage Project Execution to authorize the sellers work at

the appropriate time
Report Performance to monitor contract scope,
cost, schedule, and technical performance
Perform Quality Control to inspect and verify
the adequacy of the sellers product
Perform Integrated Change Control to assure
that changes are approved and conveyed to all the
concern people
Monitoring and Control Risk to ensure that risks are mitigated
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Administer Procurements Inputs, Tools, and Outputs
Contract
Performance reports
Approved change
requests
Work performance
information
Contract change control
system
Procurement
performance
reviews
Inspections and audits
Performance reporting
Payment systems
Claims administration
Records management
system
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Change requests
Project management
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Administer Procurements Data Flow Diagram
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Close Procurements
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Close Procurements
The process of completing each project procurement.
It also involves administrative activities such as:

- Finalizing open claims,
- Updating records to reflect final results and
- Archiving such information for future use
Unresolved claims may be subjected to litigation after

Contract Closure.
The contract terms and conditions can prescribe specific procedure for
Contract Closure.
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Close Procurements Inputs, Tools, and Outputs
Project management
plan
Procurement
documentation
Procurement audits
Negotiated settlements
Records management
Closed procurements
assets updates
system
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Close Procurements Data Flow Diagram
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Close Procurements Tools and Techniques
Procurement audits
Is a structured review of the procurement process originating
from the Plan Procurement process through Administer

Procurements.
Objective to identify successes and failures that warrant
recognition in the preparation or administration of other

procurement contracts on the project or other projects within
the performing organization.
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Management
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PROJECT RISK MANAGEMENT
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Course Structure
Project Risk Management
Introduction
Project Risk Management Introduction
Plan Risk Management
Plan Risk Management : Inputs, Tools, and Outputs
Identify Risks
Identify Risk : Inputs, Tools, and Outputs
Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis : Inputs, Tools, and Outputs
Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis : Inputs, Tools, and Outputs
Plan Risk Responses
Plan Risk Response : Inputs, Tools, and Outputs
Monitor and Control Risks
Monitor and Control Risks : Inputs, Tools, and Outputs
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Project Risk is an uncertain event or condition. If it occurs,
it has a positive or negative effect on at least one project
objective ( i.e. Time, Cost, Scope or Quality). Project Risk is
always in future
A risk may have
one or more causes and
if it occurs, one or more impacts.
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Some examples of areas of uncertainty are since we fail to:
Understand who the project is for
Appoint an executive user responsible for sponsoring the project
Appoint a fully qualified and supported project manager
Define the objectives of the project
Secure commitments from people who are needed to assist with the
project
Estimate costs accurately
Specify very precisely the end users' requirements
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Project Risk Management

Risk conditions could include aspects of the projects or
organizations environment, such as:
Poor project management practices.
Lack of integrated management system.
Concurrent multiple projects.
Dependency on participants not under control,
etc.
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Risk Process Overview
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Project Risk Management - Processes
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Process - Plan Risk Management

The process of deciding to approach and conduct risk
management activities for a project.
It ensures that level, type and visibility of risk management are

commensurate with
Risks and
Importance of the project to the organization.
It also ensures that:

Sufficient resources and time are provided to manage
risks.
There is agreed upon basis for evaluating risks.
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Plan Risk Management Inputs, Tools, and

Outputs
Project scope
statement
Cost management plan
Schedule management
plan
Communications
management plan
Enterprise
environmental factors
assets
Planning meetings and analysis
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Plan Risk Management includes the following:
Methodology (Approach, tools & data sources)
Roles and Responsibilities
Budgeting (Cost for the risk management

processes)
Timing (How & when the Risk Management

activities will be performed throughout
the project lifecycle).
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Risk Categories (Risk Breakdown Structure (RBS))
Definition of Risk
Probability Levels and
Impact Levels
Probability and Impact Matrix
Stakeholder Risk Tolerances
Reporting Formats (Content & Format of Risk Register)
Risk Tracking Mechanism

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Risk Breakdown Structure
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Impact Levels (As per PMBOK
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Probability and Impact Matrix (As per PMBOK
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Questions to be Addressed in a Plan Risk

Management
Why is it important to take/not take this risk in relation to the

project objectives?
What is the specific risk, and what are the risk mitigation
deliverables?
How is the risk going to be mitigated? (What risk mitigation

approach is to be used?)
Who are the individuals responsible for implementing the risk management plan?
When will the milestones associated with the mitigation approach occur?
How much is required in terms of resources to mitigate risk?
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Plan Risk Management Data Flow Diagram
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Process - Identify Risks

It determines which risks might effect the project and
documents their characteristics.
All project personnel should be encouraged to identify risks.
Iterative process - new risks may become known as the
project progresses through its life cycle.
Risk Identification
Qualitative Risk Analysis
Quantitative Risk Analysis
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Identify Risks Inputs, Tools, and Outputs
Risk management plan

Activity duration estimates
Scope baseline
Schedule management
plan
Quality management plan
Project documents
factors
assets
Documentation reviews
Information gathering
techniques
Checklist analysis
Assumptions analysis
Diagramming techniques
SWOT analysis
Expert judgment
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Identify Risks Tools and Techniques

Documentation reviews
Risk information gathering techniques. (Brainstorming,
Delphi, Interviewing, Root Cause Identification)
Checklist Analysis
Assumptions Analysis
Diagramming techniques (Causeand- Effect Diagram,
Process Flow Charts, System Flow Charts, Influence
Diagrams)
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Risk Register
The primary output of risk identification and is a
component of the Project Management Plan.
Contents of Risk Register
List of
List of
identified risks
potential responses
Root causes of risk
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Identify Risks Data Flow Diagram
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Process - Perform Qualitative Risk Analysis

The specific objectives of perform qualitative risk analysis are:
Subjectively evaluate the probability and impact of

each risk.
Create a starter list of risks by determining the

critical or top risks that you will quantify further.
Go / No- Go decision (having evaluated the risks,

do we still want to do this project).
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Perform Qualitative Risk Analysis

Beginning in qualitative risk analysis, the project team
relies on the data about risk acquired in risk
identification
(Data Precision ranking : how well understood is the
risk).
It should include analysis of the following:
Extent of understanding of the risk.
Data available about the risk.
Reliability and Integrity of the data.
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Perform Qualitative Risk Analysis Inputs,

Tools, and Outputs
Risk register
assets
Risk probability and impact
assessment
Probability and impact matrix
Risk data quality assessment
Risk data categorization
Risk urgency assessment
Expert Judgement
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Tigers - High Probability, High Impact. These are dangerous animals and must be neutralized
as soon as possible.
Alligators - Low Probability, High Impact. These are dangerous animals which can be
avoided with care.
Puppies - High Probability, Low Impact. We all know that delightful pup will grow into an
animal which can do damage, but a little training will ensure that not too much trouble
ensures.
Kittens - Low Probability, Low Impact. The largest cat is rarely the source of trouble, but on
the other hand a lot of effort can be wasted on training it!
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Process - Perform Quantitative Risk Analysis
The specific objectives of perform quantitative risk analysis include:
Numerically evaluating probability and impact of

each risk.
Determining the level of risk the project currently

has and whether that level of risk is acceptable
for the expected gain from the product of the
project.
Determining the probability of cost or schedule

objectives for the project.
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Perform Quantitative Risk Analysis Inputs,

Tools, and Outputs
Risk register

Schedule management plan
Data gathering and

representation techniques
Quantitative risk analysis
and modelling techniques
Expert judgement
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Perform Quantitative Risk Analysis Tools and

Techniques
Data Gathering and Representation Techniques
Interviewing
Range of Project Cost Estimates Collected During the Risk Interview
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Perform Quantitative Risk Analysis

Commonly used techniques in perform quantitative risks analysis
include:
Sensitivity Analysis
Decision Tree Analysis
Expected Monetary Value Analysis (EMV)
Modeling and Simulation
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Sensitivity Analysis
Sensitivity analysis helps to determine which risks have the most potential impact on
the project. It examines the extent to which the uncertainty of each project element
affects the objective being examined when all other uncertain elements are held at their
baseline values. One typical display of sensitivity analysis is the tornado diagram,
which is useful for comparing relative importance and impact of variables that have a
high degree of uncertainty to those that are more stable.
R1
R2
R3
R4
R5
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Decision Tree Analysis

Diagrams that show the sequence of interrelated decisions and the expected results
of choosing one alternative over the other.
Lets take an example of a company which is trying to decide whether an e-learning
prototyping is worthwhile on the project. The impact of whether the equipment
works or fails is shown in the diagram below. As per the information provided in the
diagram, what is the expected monetary value of your decision?
E-learning Prototype:
Setup cost $200,000
Failure: 35% probability and $120,000

impact
Pass: No impact
Failure: 70% probability and
$450,000 impact
Pass: No impact
Do not e-learning prototype:

Setup cost $0
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Calculated by multiplying the probability of the risk times its impact and then
adding them together. Positive results indicate opportunities and negative
generally indicate threat to the project.
EMV = P x I
(where, P = Probability and I = Times Impact)
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Airline A
(20% * Rs. 50,000 = Rs. 10,000) + (80% * Rs. 0 = Rs. 0) + Rs. 9,000
= Rs. 19,000
Airline B
(40% * Rs. 50,000 = Rs. 20,000) + (60% * Rs. 0 = Rs. 0) + Rs. 3,000
= Rs. 23,000
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Modeling and Simulation
A project simulation uses a model that translates the specified detailed uncertainties of the pro
into their potential impact on project objectives. Iterative simulations are typically performed u
the Monte Carlo technique. In a simulation, the project model is computed many times (iterated
with the input values (e.g., cost estimates or activity durations) chosen at random for each itera
from the probability distributions of these variables.
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Perform Quantitative Risk Analysis Data Flow

Diagram
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Process - Plan Risk Responses

It involves arriving at strategy or mix of strategies most likely to be
effective for each risk.
Primary and Back-up strategy may be selected.
A Fall back plan can be developed if the selected strategy does not
turn to be fully effective or if an accepted risk occurs.
Contingency plan can be developed, along with identification of
conditions that trigger their execution.
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Plan Response Responses Inputs, Tools,

and Outputs
Risk register
Risk
management
plan
Strategies for negative risks

or threats
Strategies for positive risks
or opportunities
Contingent response strategy
Expert judgement
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Risk-related
contractual
agreements
Project management
plan updates
Project document
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Plan Risk Responses - Strategies
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Plan Response Responses Data Flow Diagram
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Process - Monitoring and Control Risks
Project work should be continuously monitored for new and changing

risks.
Monitoring and Control Risks involves:
Identifying, analyzing and planning for newly arising risks.

Keeping track of identified risks and those on the watch list.
Monitoring trigger conditions for contingency plans.
Monitoring residual risks.
Reviewing the execution of risk responses.
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Residual Risk, Secondary Risk & Workaround

Residual Risk A risk that remains after risk responses have been implemented.
Secondary Risk A risk that arises as a direct result of implementing a risk response.
Workaround A response to a negative risk that has occurred. Distinguished from
contingency plan in that a workaround is not planned in advance of the occurrence of
the risk event.
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Monitoring & Control Risks Inputs, Tools,

and Outputs
Risk register
Project management
plan
Work performance
information
Performance reports
Risk reassessment
Risk audits
Variance and trend
analysis
Technical performance
measurement
Reserve analysis
Status meetings
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Organizational
process assets
updates
Change requests
Project management
plan updates
Project document
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Risk Audits
Risk Audits examine and document effectiveness of risk
responses in dealing with:
Identified risks and their root causes and
Effectiveness of the risk management Process
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Monitor and Control Risks Data Flow Diagram
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PROJECT QUALITY MANAGEMENT
Management
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Course Structure
Project Quality Management
Introduction
Project Quality Management Introduction
Plan Quality
Plan Quality : Inputs, Tools, and Outputs
Perform Quality Assurance
Perform Quality Assurance : Inputs, Tools, and Outputs
Perform Quality Control
Perform Quality Control : Inputs, Tools, and Outputs
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Project Quality Management Introduction
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Project Quality Management - Introduction
The processes and activities of the performing organization that determine

quality policies, objectives, and responsibilities to satisfy the project needs.
The Project Quality Management processes include:

Plan Quality process of identifying quality requirements and/or standards
for the project and product and documenting how the project will demonstrate
compliance.
Perform Quality Assurance process of auditing the quality requirements
and the results from quality control measurements to ensure appropriate quality
standards and operational definitions are used.
Perform Quality Control process of monitoring and recording results of
executing the quality activities to assess performance and recommend

necessary changes.
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Product Quality vs. Project Quality

Project quality management addresses the management of project and product
of the project and applies to all projects, regardless of the nature of their
product.
Product quality measures and techniques are specific to the type of product
produced by the project.
Failure to meet product or project quality requirements can have serious
negative consequences for any or all of project stakeholders, which may lead to:
Employees attrition
Errors
Rework
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Quality vs. Grade
Quality is the degree to which a set of inherent

characteristics fulfill requirements (Customer,
Project).
Grade is a category assigned to products or

services having the same functional use but
different technical characteristics.
Low quality is always a problem; low grade may

not be.
Project Manager and Project Management Team

are responsible for determining and delivering the
required level of both quality
and grade.
Quality and Grade are not the same
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Precision vs. Accuracy
Precision and Accuracy are not equivalent.

Precision The values of repeated
measurements are clustered and have little

scatter. (not necessarily accurate)
Accuracy The measured value is very close
to the true value. (not necessarily precise)
The Project Management Team must determine, how much accuracy or precision or
both are required.
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Modern Quality Management

Complements project management as both recognize the importance of:
Customer Satisfaction
Prevention over Inspection
Continuous Improvement
Management Responsibility
Process improvement models include Malcolm Baldrige, OPM3 CMMI.
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Control Limits vs. Tolerance

Control Limits: are the limits within which the variation of the process is
permitted and are determined by the organizations quality standard.
Tolerance: The result is acceptable if it falls within the range specified by the
tolerance.
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Process - Plan Quality
The process of identifying quality requirements and/or standards for the project and
product, and documenting how the project will demonstrate compliance.
This process should be performed in parallel with the other project planning
processes.
E.g. Proposed changes in the product to meet identified quality standards may
require cost or schedule adjustments and a detailed risk analysis.
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Plan Quality Inputs, Tools, and Outputs
Scope baseline
Cost performance
baseline
Schedule baseline
Risk register
factors
assets
Cost benefit analysis

Cost of quality
Control charts
Benchmarking
Design of experiments
Statistical sampling
Flowcharting
Proprietary quality
management
methodologies
Additional quality planning

tools
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Quality Metrics
Quality checklists
Process improvement
plan
- Process boundaries
- Process configuration
- Process metrics
- Targets for improved
performance
Project document
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Plan Quality Inputs

Quality Policy
Project should have a Quality Policy.
Quality Policy
Either
By Performing
Organization
Or
By Project Management
Team
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Plan Quality Tools and Techniques
Cost-Benefit analysis
Cost of quality
Control charts
Benchmarking
Statistical sampling
Design of experiments
Flowcharting
Proprietary quality management methodologies
Additional quality planning tools
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Plan Quality Outputs

Quality Management Plan:
Describes how the project management team will
implement the performing organization's quality
policy.
Quality Metrics:
An operational definition that describes, in very specific
terms, a project or product attribute and how the quality
control process will measure it.
Quality Checklists:
A structured toll, usually component-specific,
used to verify that a set of required steps has been
performed.
Quality checklists are used in the quality control
process
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Plan Quality Outputs

Process improvement Plan:
A subsidiary of the project management plan.
Details the steps for analyzing processes to
identify activities which enhance their value.
Areas to consider include:
Process boundaries
Process configuration
Process metrics
Targets for improved performance
Project Document Updates:
Responsibility Assignment Matrix
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Plan Quality Data Flow Diagram
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Process - Perform Quality Assurance
Perform Quality Assurance

is the process of auditing
Quality requirements
Results from quality control measurements
To ensure appropriate quality standards and operational definitions are used.

Perform Quality Assurance is an execution process that uses data created during
Perform Quality Control.
Perform Quality Assurance also provides an umbrella
for continuous process improvement,
which Is an iterative means for improving the
quality of all processes.
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Performance Quality Assurance Inputs, Tools,

and Outputs

- Quality management plan
- Process improvement plan
Quality metrics
Work performance information
Quality control measurements
Plan Quality and Perform

Quality Control tools and
techniques
Quality audits
Process analysis
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Change requests
Project management
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Perform Quality Assurance Tools and Techniques
Quality Audits
It is a structured, independent review to determine whether project
activities comply with organizational and project policies, processes,
and procedures.
The objectives of a quality audit are:
Identify all the good/best practices being implemented and all the gaps/shortcomings
Share the good practices introduced or implemented in similar projects
Proactively offer assistance in a positive manner to improve implementation of
processes to help the team raise productivity
Highlight contributions of each audit in the lessons leaned repository of the
organization
They can confirm the implementation of approved change requests including:
Corrective actions
Defect repairs
Preventive actions
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Perform Quality Assurance Tools and

Techniques
Process Analysis
Follows the steps outlined in the process improvement plan to

identify needed improvements
Process analysis includes root cause analysis A specific technique to identify a problem
Discover the underlying causes that lead to it
Develop preventive actions
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Performance Quality Assurance Data Flow Diagram
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Process - Perform Quality Control

The process of monitoring and recording results of executing the quality activities to:
Assess performance
Recommend necessary changes
Quality control activities identify:

Causes of poor process or product quality
Recommend and/or take action to eliminate them
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Perform Quality Control

Key Terminologies
Statistical Quality Control Especially sampling and

probability, to help evaluate quality control outputs
Prevention Keeping errors out of the process

Inspection Keeping errors out of hands of the customer
Attribute Sampling The results either conforms or does not conform

Variables Sampling The result is rated on a continuous scale that
measures the degree of conformity
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Perform Quality Control Inputs, Tools, and Outputs
Project management
plan
Quality metrics
Quality checklists
Work performance
information
Approved change
requests
Deliverables
assets
Cause and effect

diagram
Control charts
Flowcharting
Histogram
Pareto chart
Run chart
Scatter diagram
Statistical
sampling
Inspection
Approved change
requests review
Quality control measurements

Validated changes
Validated deliverables
updates
Change requests
- if the recommended corrective or
preventive actions or a defect repair
requires a change to the project
management plan, a change request
should be initiated in accordance with the
defined Perform Integrated Change
Control

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Perform Quality Control Tools and Techniques

Ishikawas seven basic tools of
quality:
Cause and Effect Diagram
Histogram
Pareto Chart
Run Chart
Scatter Diagram
Control Charts
Flowcharting
Statistical Sampling
Inspection
Approved Change Requests
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Quality Theories
Joseph Juran:
Developed the 80/20 principle.
Advocated Top Management involvement.
Defined Quality as fitness for use.
W. Edwards Deming:
Developed 14 steps to quality management
Advocated Plan - Do Check - Act cycle for quality
improvement.
Philip Crosby:
Popularized the concept of cost of poor quality.
Advocated prevention over inspection & zero
defects.
He believed quality is Conformance to requirements.
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Perform Quality Control Data Flow Diagram
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ding Professionalism in Project Managem

What the exam will test?

Your understanding of professional responsibility as it

PMBOK is a registered mark of the Project Management Institute, Inc

PROJECT MANAGEMENT FRAMEWORK

Project Management Framework

Project Life Cycle and Organization

Projects Life Cycle - Characteristics

Project Management Processes for a Project

Common Project Management Process Interaction

Project Management Framework Introduction

Project Management Body of Knowledge

PMBOK is a registered mark of the Project Management Institute, Inc

PMBOK is a registered mark of the Project Management Institute, Inc

Code of Ethics and Professional Conduct

Code of Ethics and Professional Conduct is specific about:

organizational and professional policies

Acceptance of the code is a requirement for the PMP

Every project has a definite beginning and a definite end.

A project creates unique deliverables in the form of products, services, or results.

Uniqueness is an important characteristic of

A project ends as a result of one of the following:

A project can create:

Project Management is the application of knowledge, skills, tools, and techniques

Project Management is accomplished through the application and integration of

The project manager is the person responsible for

Project managers often talk of Project Constraints

Project Management Continues

Project, Program, and Portfolio Management

Program Management focuses on:

Projects within programs are related through common outcome or collective

Portfolio Management being a centralized management includes :

Senior managers or senior management teams typically take on the responsibility

Project and Strategic Planning

An organizations strategic plan becomes the

Project Management Office (PMO)

Acts as an integral stakeholder

PMO supports Project Managers in:

Identifying and developing project management standards

PMO and Project Manager

Focuses on achieving potential

Focuses on achieving specified project

Optimizes the use of shared resources

Controls the assigned project resources.

Manages methodologies, standards,

Manages project constraints such as

Project and Operations Management

Each closeout phase

Role of a Project Manager

Characteristics a Project Manager :

Knowledge What the project manager knows

Project Life Cycle and Organization

Project Life Cycle Introduction

A project life cycle is a collection of generally sequential and

Project managers or the organization can divide projects into

Many organizations identify a specific set of life cycles for use on

Project Life Cycle - Characteristics

Project Life Cycle - Characteristics

The ability of stakeholders to

Risk is greatest at the start of

Product vs. Project Life Cycle Relationships

PMBOK is a registered mark of the Project Management Institute, Inc

transfer, usually when phases are sequential