PMP Preparation Course

Arch.
Sherif El-wishahy, PMP
Course Objectives
After completing this course, you should be able to: Help you to prepare for the PMP Certification Exam Make the most of limited study time for taking the PMP exam Become familiar with the exam format and question types Develop a personal study plan
Identify personal areas of competency and weakness

Reinforce knowledge of the ten Project Management Knowledge Areas, and the five Project Management Process Groups.
Arch. Sherif Elwishahy, PMP
Project Management Institute

The Project Management Institute (PMI) was founded in 1969 and started offering the PMP certification exam in 1984. The PMI certification program has attained the (ISO) 9001. PMI provides certification such as:
Project Management Professional (PMP) Certified Associate Project Manager (CAPM) Program Management Professional (PgMP) PMI Scheduling Professional (PMI SP) PMI Risk Management Professional (PMI RMP)
It demonstrates proof of professional achievement. It increases your marketability. It provides greater opportunity for advancement in your field. It raises customer confidence in you and in your companys services.
About the Exam

4 hours to write the exam Multiple Choice format Provides option to mark answers for later review 175 / 200 questions are actually marked 25 are dummy questions You will not know which 25 are not marked therefore answer all carefully 108/175 correct to pass at 61% You will be notified if you pass or fail immediately after completing the exam You will not be given your actual mark 3 attempts per year but you will pass this !!
Project Management Introduction
Project Definition A project is : A temporary endeavor undertaken to create a unique product, service, or result
Project Definition
Temporary: Projects have a definite beginning and end. Projects are unique: first time not repetitive. Progressively: proceeding in steps Elaborated: worked with care and detail
Project Definition
Projects end when their objectives have been reached or the project has been terminated. Scope of project should remain constant even as characteristics are progressively elaborated.
Examples of projects
Developing a new product, service, or result. Effecting a change in the structure, processes, staffing, or style of an organization. Developing or acquiring a new or modified information system (hardware or software). Conducting a research effort Constructing a building, or infrastructure. Implementing, improving, or enhancing existing business processes and procedures.
Project Management
The application of knowledge, skills, tools and techniques to project activities in order to meet the project requirements, through the appropriate application and integration of the 47 logically grouped project management processes, which are categorized into five Process Groups. Initiating, Planning, Executing, Monitoring and Controlling, and Closing.
The Project Manager
Is the person assigned by the performing organization to achieve the project objectives. Characteristics of the Project Manager: knowledge: what the P.M. knows about project management. Performance: what is the P.M. able to do. Personal: how the P.M. behaves.
Project Managers Areas of Expertise
Project Constraints
Quality / Scope Defines the specifications of the work of the project. Cost / Resources Requires constant monitoring, immediate corrective action Schedule / Time Most likely to change
Program Management
Program management A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.
Ex. a new communications satellite system.
Portfolio Management
Portfolio management A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. Ex. an infrastructure firm makes a portfolio that
Includes a mix of projects in oil and gas, power.
Projects and Strategic Planning

Projects are authorized as a result of: A market demand A business need A customer request A technological advance A legal requirement
Project management office (PMO)

Is an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The primary function of a PMO: Managing shared resources across all projects. Coaching, mentoring, and training for PM. Monitoring compliance with project management standards. Developing and managing project standards. Coordinating communication across projects.
Projects and Operational Work Operational Work Planned, executed & Controlled series of tasks and activities Constrained by limited resources to produce an output/product.
operation Projects
Ongoing and repetitive

Similar outputs Permanent resources
Temporary
Unique output
Resources temporary upon-need basis

Organizational Influences & Project Life Cycle
Organizational Influences on Project Management

Organizational Cultures and Styles Cultures and styles are group phenomena known as cultural norms, which develop over time. Organizational culture is shaped by the common experiences of members of the organization. Organizations develop unique cultures over time by practice and common usage. The organizations culture is an enterprise environmental factor.
Organizational Influences on Project Management

Organizational Communications Project management success is highly dependent on an effective organizational communication style. Project managers in distant locations are able to communicate with all relevant stakeholders to facilitate decision making.
Organizational Influences on Project Management Organizational Structure PMI Defines 5 types of Organizational Structure: Functional Organizations. Projectized Organizations. Weak Matrix Organizations. Balanced Matrix Organizations. Strong Matrix Organizations.
Functional Organization
C.E.O
Project coordination
Functional Manager
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Projectized Organization
C.E.O
Project Manager
Project Manager
Project Manager
Project Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Weak Matrix Organization

C.E.O
Functional Manager
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Balanced Matrix Organization

C.E.O
Functional Manager
Functional Manager
Functional Manager
Functional Manager
Staff
Staff
Staff
Staff
Project manager
Staff
Staff
Staff
Strong Matrix Organization

C.E.O
Functional Manager
Functional Manager
Functional Manager
Manager of Project Managers
Staff
Staff
Staff
Project manager
Staff
Staff
Staff
Project manager
Organizational Structure
Organization Structure
Project Characteristics
Functional
Little or None
Weak Matrix
Weak Few Available
Balanced Matrix
Balanced w/ Funct. Some Available
Strong Matrix
Strong Mostly Available PM
Projectized
Complete Available PM Dedicated
PM Authority
Resource None / few Availability Available Budget Control Project Team PMs Title
Functional Functional Balanced Mgr. Mgr. Not Dedicated Project Lead /

Coordinator
Mostly Dedicated Not Dedicated Dedicated

Lead /
Coordinator /
Expeditor
Project Project or Program Manager Program or Project Manager Manager

Organizational Process Assets

Include any or all process related assets, from any or all of the organizations involved in the project. Components may include: 1.Processes and Procedures Organizational standard processes Templates Organization communication requirements Project closure guidelines Financial Control procedures Change Control procedures
Organizational Process Assets
2.Corporate Knowledge Base Projects files. Historical Information. Issues & defect management databases. Financial databases
Enterprise Environmental Factors

Refer to both internal and external environmental factors that surround and influence a projects success. Organizational culture, structure, and processes. Government or industry standards. Infrastructure. Existing human resources. Company work authorization systems. Marketplace conditions. Political climate. Organizations established communications channels. Project management information systems (PMIS)
Project stakeholders
A stakeholder is someone whose interests may be positively or negatively impacted by the project.
Project Governance
Project governance is an oversight function that is aligned with the organizations governance model and that encompasses the project life cycle. Project governance involves stakeholders as well as documented policies, procedures, and standards; responsibilities; and authorities.
Project Governance
Elements of project governance framework : Project success and deliverable acceptance criteria. Process to identify, escalate, and resolve issues. Relationship among the project team, and external stakeholders. Project organization chart that define project roles. Processes and procedures for communication. Project decision-making processes.
Project Team
Project management staff. Project staff. Supporting experts. User or Customer Representatives. Business partner. Business partners members.
Project Team
Composition of Project Teams
It varies based on factors such as organizational culture, scope, and location. The relationship between the project manager and the team varies depending on the authority of the project manager.
Project Team
Examples of basic project team compositions: Dedicated: all or a majority of the project team members are assigned to work fulltime on the project. Part-Time: Some projects are established as temporary additional work, with part-time team members may also be assigned to more than one project at a time
Project Life Cycle

A project life cycle is the series of phases that a project passes through from its initiation to its closure, the phases are generally sequential and sometimes overlapping.
Initiating Planning Executing Monitoring and controlling Closing Initiating Planning Executing Monitoring and controlling Closing Initiating Planning Executing Monitoring and controlling Closing
Phase 1
Phase 2
Phase 3
Characteristics of the Project Life Cycle
Characteristics of the Project Life Cycle
Project Phases
A project phase is a collection of logically related project activities that lead to the completion of one or more deliverables. A project may be divided into any number of phases. All phases have similar characteristics: The work has a distinct focus that differs from any other phase. Achieving the objective of the phase requires controls or processes unique to the phase or its activities. The closure of a phase ends with the transfer or handoff of the work produced as the phase deliverable.
Project Phases
Phase-to-Phase Relationships
Predictive Life Cycles

Also known as Fully Plan-Driven: are ones in which the project scope, and the time and cost required to deliver that scope, are determined as early in the project life cycle as practically possible.
Iterative and Incremental Life Cycles

Are ones in which project phases (also called iterations) intentionally repeat one or more project activities as the project teams understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product. These life cycles develop the product both iteratively and incrementally.
Adaptive Life Cycles

Also known as change-driven or agile methods: are intended to respond to high levels of change and ongoing stakeholder involvement. Difference between Adaptive methods and iterative: Iterations are very rapid usually with a duration of 2 to 4 weeks. Fixed in time and cost.
Project Management Processes
Project Management Process Groups
Project Management
Time Management
Integration Management Scope Management
Human Resource Management
Cost Management
Quality Management
Procurement Management
Communications Management
Risk Management
Stakeholder Management
Project Management Process Groups
Start Project
End Project
Process Groups Interaction
Project Management Process Groups Initiating process group performed to define a new project or a new phase of an existing project. Planning process group performed to establish the total scope of the effort, define and refine the objectives, and develop the course of action required to attain those objectives.
Project Management Process Groups Executing process group performed to complete the work defined in the project management plan to satisfy the project specifications. Monitoring and Controlling process group the processes required to track, review, and regulate the progress and performance of the project. Closing process group performed to formally complete the project, phase, or contractual obligations. Arch. Sherif Elwishahy, PMP
Initiation Process Group

As you engage potential team members and stakeholders, project initiation activities establish the scope, goals and preliminary plan. Key Activities Scope Definition Confirm sponsorship and funding Confirm initial clarification of requirements Determine Project Stakeholders and their roles Draft high level plan for inputs and resources

Sponsor /customer Needs
Project Statement of Work Company culture and existing systems Processes, procedures, and historical information Project manager assists the sponsor with the charter if necessary
Sponsor issues the charter
Project manager develops the preliminary project scope statement and the project management plan
The Project management plan is bought into, approved, realistic, and formal
The planning processes develop the project management plan and project documents. As more information is known about the project additional planning may be required. The progressive detailing of the project management plan is called ( rolling wave planning) The project management plan defines how the project is executed, monitored, controlled, and closed.
Project plan execution involves managing and performing the work described in the project plan. The majority of time and money is usually spent on execution. The application area of the project directly affects project execution. The outcomes of the project are realized during and after the execution stage.
Track and review actual project accomplishments and results to project plans. Help team and management take corrective action early when project performance varies significantly from original plans. Tracks all major project variables Cost Time Scope Quality of Deliverables
Administrative Closure : generating necessary information to formally recognize Phase or project completion. Contract Close-out : completion and delivery of project deliverables and resolving open issues such as: Procurement Audits Product Verification Formal Acceptance Lessons Learned Update Records Archive Records Release Team
Project Information
Work performance data: The raw observations and measurements identified during activities performed Work performance information: The performance data collected from various controlling processes, Work performance reports: The physical or electronic representation of work performance information
Project Information
Question No : 1
Which of the following is NOT a characteristic of a project? A. Constrained by limited resources B. Planned, executed, and controlled C. Creates a unique product or service D. Ongoing and repetitive
Question No : 2
In your organization, all big technical projects go through Initiate, Analyze, Design, Implement, Test, and Closeout. In this context, a project life cycle: A. Defines the product life cycle B. Defines the project phases C. Contains several product life cycles D. Has deliverables that must be completed before work starts on the next phase
Question No : 3
You have been managing a project to construct a flyover on Interstate 10. You have divided the project into phases to provide better management control. Which of the following is a characteristic of a project phase? A. Formal phase completion necessarily includes authorization for the subsequent phase. B. A project phase can be closed with a decision not to initiate the subsequent phase. C. A project phase should not be divided into sub-phases even in complex projects, because it will be difficult to manage. D. All deliverables in the project phase should correspond to the project management process.
Question No : 4
Which of the following is not a Project Management Knowledge Area? A. Project Integration Management B. Project Procurement Management C. Project Configuration Management D. Project Communications Management
Question No : 5
You are responsible for managing a project in your company but you have least authority and have to constantly report to a functional manager. To which organizational structure does your company belong? A. Matrix B. Functional C. Projectized D. Balanced
Question No : 6
Which of the following processes occurs in the Planning Process Group? A. Identify Risks B. Manage Stakeholders Expectations C. Acquire Project Team D. Identify Stakeholders
Question No : 7
In which Process Group will work defined be completed and all the specifications of your project be satisfied? A. Planning Process Group B. Executing Process Group C. Monitoring and Controlling Process Group D. Closing Process Group
Question No : 8
The project charter is created in which Process Group ? A. Executing B. Planning C. Closing D. Initiating
Question No : 9
The person who should be in control of the project during the planning is the : A. Project manager B. Team member C. Functional manager D. Sponsor
Question No : 10
Which of the following is a characteristic of project management processes ? A. Iterative B. Unique C. Unnecessary D. Standardized
Project Integration Management
Integration is What?
Its best described as putting all other management processes of the project into a cohesive whole.
Project Integration Management

Includes the processes and activities needed to combine, unify, and coordinate the various processes and project management activities. Choosing where to concentrate resources and effort at any given moment. The integration effort also involves making tradeoffs among competing objectives and alternatives. Is the glue that connects all the knowledge areas.
4. Integration Management
Initiating
4.1
Planning
Executing
4.2
4.3
4.4
Monitoring
4.5
Closing
4.6 Arch. Sherif Elwishahy, PMP
4.1 Develop Project Charter

Developing a document that formally authorizes a project or a phase. Documenting initial requirements that satisfy the stakeholders needs and expectations. Is recommended that the project manager participate in the development of the project charter It provides the project manager with the authority to apply resources to project activities..
4.1.1 Develop Project Charter: Inputs

1. Project Statement of work Is a narrative description of products or services to be delivered by the project. The SOW references: Business need Product scope description Strategic plan 2 .Business Case Provides the necessary information from a business standpoint to determine whether or not the project is worth the required investment. Market demand, Organizational need, Customer request, Technological advance, Legal requirement.
Economic Project Selection Techniques
4.1.1 Develop Project Charter: Inputs

3. Agreement Is an input if the project is being done for an external customer. 4. Enterprise environmental Factors Governmental or industry standards Organization infrastructure Marketplace conditions 5. Organizational Process assets Organizational standard processes, policies. Templates (e.g., project charter template). Historical information and lessons learned database.
4.1.2 Develop Project Charter: tools and techniques

1. Expert judgment Expertise is provided by any group or individual with specialized knowledge or training.
2. Facilitation Techniques Brainstorming, conflict resolution, problem solving, and meeting management are examples of key techniques used by facilitators to help teams and individuals accomplish project activities.
4.1.3 Develop Project Charter: outputs

1. Project Charter Documents the business needs, current understanding of the customers needs, and the new product, or service: Project purpose or justification Measurable project objectives. High-level requirements, and project description. High-level risks. Summary milestone, schedule, and budget. Project approval requirements Assigned project manager, responsibility, and authority, Name and authority of the sponsor or other person(s) authorizing the project charter.
4.2 Develop Project Management Plan

Develop Project Management Plan is the process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.
4.2.1 Develop Project management Plan: Inputs

1. Project Charter
2. Outputs from Planning Processes Outputs of the planning processes described in Chapters 5 through 12 are integrated to create the project management plan. Any baselines and subsidiary management plans that are an output from other planning processes are inputs to this process. Updates to these documents can necessitate updates to the project management plan.
1. Expert Judgment Expert judgment is utilized to: Tailor the process to meet the project needs, Develop technical and management details. Determine resources and skill levels needed to perform project work. Determine which project documents will be subject to the formal change control process.
2. Facilitation Techniques
1. Project management Plan Integrates all of the subsidiary management plans and baselines. Schedule baseline. Cost performance baseline. Scope baseline. The life cycle selected for the project and the processes that will be applied to each phase. How work will be executed to accomplish the project objectives. A change management plan that documents how changes will be monitored and controlled.
4.3 Direct and manage Project Work
Direct and Manage Project Execution is the process of performing the work defined in the project management plan to achieve the projects objectives.
4.3.1 Direct and manage Project Execution: Inputs

1. Project management Plan 2. approved Change Requests Approved change requests are the documented, authorized changes to expand or reduce: project scope. The project management plan Procedures Costs Budgets Schedules. Implementation of preventive or corrective actions.
1. Expert Judgment: 2. Project Management Information System [PMIS]: Is used for communication and information distribution on the project. Not necessary a high tech system 3. Meetings
1. Deliverables An approved deliverable is any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project. 2. work Performance Data: Information from project activities is routinely collected as the project progresses. Include but not limited to: Deliverable status. Schedule progress. Costs incurred.
3. Change Requests Can be direct or indirect, externally or internally initiated, and can be optional or mandated. and can include: Corrective action. Preventive action. Defect repair. updates. 4. Project management Plan updates 5. Project Document updates
4.4 Monitor and Control Project Work

4.4 monitor and Control Project work
Is the process of: Tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan. It can include: Collecting performance information Measuring performance information Interpreting performance information
4.4 monitor and Control Project work
1. Change Requests Corrective action. Preventive action. Defect repair. 2. Work Performance Reports
3. Project management Plan updates

4. Project Document updates
Configuration management system
Configuration: Functional and physical characteristics of a deliverable (product) as defined in technical documents and achieved in the product. Configuration item: A part that has a set of function and is designated for configuration management. Configuration management system: Provides a standardized way to centrally manage approved changes and baselines within a project.
Configuration management system Configuration identification: Breaking down the project into configuration items, and creating a unique numbering system for each item, and establishing configuration baselines. Configuration status accounting: Provides a complete record of what happened to the configuration to date. Configuration verification and audit: Ensures that projects configuration items is correct and that corresponding changes are registered, assessed, approved, tracked, and correctly implemented.
4.5 Perform Integrated Change Control
4.5 Perform Integrated Change Control
Is the process of: Reviewing all change requests. Approving changes. Managing changes to the deliverables, project documents, and the project management plan. The Change Control Board [CCB] can evaluate changes as part of the change control procedures.
1. Expert Judgment.
2. Meetings
3. Change Control Tools:
Manual or automated tools may be used. Based on the needs of the project stakeholders. Used to manage the change requests and the resulting decisions.
1. Approved Change Requests .
2. Change Log.
3. Project management Plan updates 4. Project Document updates
4.6 Close Project or Phase


Is the process of: Performing the work defined in the project management plan to achieve the projects objectives. It is important to remember that when a project stops (regardless or reason), the project must be closed.
1. Expert judgment These experts ensure the project or phase closure is performed to the appropriate standards.
1. Final Product, Service, or Result transition This output refers to the transition of the final product, service, or result that the project was authorized to produce.
2. organizational Process assets updates Project files. Project or phase closure documents Historical information.
Question No : 1
In a recent job interview, you are asked to define the most important characteristic of a project manager. Which of the following will be the best answer? A. Subject matter expert B. Integrator C. Creative person D. Risk minimizer
Question No : 2
Your project is nearing completion, when the customer requests you to include an additional feature in the project`s final product. The BEST course of action is to: A. Include the feature, as it will improve customer satisfaction B. Include the feature -- otherwise the product will not be accepted by the customer C. Talk with the customer and explain that the new feature does not make business sense D. Take the requirement through the change control process
Question No : 3
In your project, you are in the process of performing the work as defined in the project management plan to achieve the project`s objectives. This is done during: A. Direct and Manage Project Execution B. Develop Project Management Plan C. Monitor and Control Project Work D. Create Deliverables
Question No : 4
Project integration management includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities. For successful project integration management, you definitely need(select the best answer): A. A strong matrix organizational structure in your company B. A good communication management plan C. Good project selection techniques D. Positive stakeholders who support the project
Question No : 5
A change in your project schedule has resulted in increased cost and risk. It has also impacted your resource plan. To coordinate changes across the entire project, you will need to rely on which of the following: A. Change control system B. Perform Integrated Change Control C. Change requests D. Changes to project plan baselines
Project Scope
Management
Define Scope
What is the meaning of the word
Scope
? An area in which something acts or operates or has power or control.
Project Scope Management

Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Managing the project scope is primarily concerned with defining and controlling what is and is not included in the project preventing extra work or gold plating. You should give the customer what exactly they asked for, no more and no less. Giving any extras is a waste of time and adds no benefit to the project.
Project Scope Management

The term Scope can be applied to: Product scope: Features and functions that characterize a product, service or result. Project scope: Work that must be performed to deliver a product, service, or result with the Specified features and functions. Completion of project scope is measured against the project management plan, the project scope statement, and the associated WBS. Completion of the product scope is measured against the product requirements
5.1 Plan Scope Management
5.1 Plan Scope Management Is the process of: Plan Scope Management is the process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled.
5.1 Plan Scope Management
5.1.1 Plan Scope Management: Inputs

1. Project Management Plan
2. Project Charter It provides the high-level project description, and characteristics from the project statement of work.

3.Enterprise Environmental Factors include, but are not limited to: Organizations culture, Infrastructure, Personnel administration, and Marketplace conditions. 4.Organizational Process Assets include, but are not limited to: Policies and procedures, and Historical information.
5.1.2 Plan Scope Management: Tools & Techniques

1.Expert Judgment Refers to input received from knowledgeable and experienced parties. Expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training in developing scope management plans. 2.Meetings Project teams may attend project meetings to develop the scope management plan.
5.1.3 Plan Scope Management: Outputs

1. Scope Management Plan
Describes how the scope will be defined, developed, monitored, controlled, and verified. The components of a scope management plan include: Process for preparing a project scope statement. Process that enables the creation of the WBS. Process that establishes how the WBS will be maintained and approved. Process that specifies how formal acceptance of the completed project deliverables will be obtained. Process to control how requests for changes to the detailed project scope statement will be processed.

2. Requirements Management Plan
Describes how requirements will be analyzed, documented, and managed. Components of the requirements management include: How requirements activities will be planned, and reported. How changes to the product will be initiated. How impacts will be analyzed, traced, and reported. Requirements prioritization process. Product metrics that will be used and the rationale. Traceability structure to reflect which requirement attributes will be captured on the traceability matrix.
5.2 Collect Requirements

Is the process of:
Defining and documenting, and managing stakeholders needs, and requirements to meet the project objectives. Requirements include: Quantified and documented needs. Expectations of the sponsor. Expectations of the customer. Expectations of other stakeholders. Product Requirements: The Features and functions that characterize a product, service or result. Project Requirements: The work that needs be accomplished to deliver a product, service or result.
1. Scope Management Plan 2. Requirements Management Plan 3.Stakeholder Management Plan

Is used to understand stakeholder the level of stakeholder engagement in order to assess and adapt to the level of participation in requirements activities.
4. Project Charter
Is used to provide the high-level description of the product, service, or result of the project.
5.Stakeholder Register
Is used to identify stakeholders who can provide information on the requirements. Arch. Sherif Elwishahy, PMP
1. Interviews: Is a formal or informal approach to discover information from stakeholders by talking to them directly. Interviewing experienced project participants, stakeholders, and subject matter experts can aid in identifying and defining the features and functions of the desired project deliverables.
2. Focus Groups: Bring together prequalified stakeholders and subject matter experts to learn about their expectations and attitudes about the proposed product, service or result.
3. Facilitated Workshops: Are focused sessions that bring key cross-functional stakeholders together to define product requirements. For example: In S/W development Industry, (JAD) Joint Application Development or Design. In Manufacturing Industry, (QFD) Quality Function Development. Sometimes Known as (VOC) Voice Of the Customer.
4. group Creativity Techniques Brainstorming. Nominal group technique. Idea/mind mapping. Affinity diagram. Multi-criteria decision analysis.
5. Group Decision Making Techniques: Is an assessment process of multiple alternatives with an expected outcome in the form of future actions resolution. For example: Unanimity. Majority. Plurality. Dictatorship.
6. Questionnaires and Surveys: Written sets of questions designed to quickly accumulate information from wide number of respondents. Requires Statistical analysis.
7. Observation: Provide a direct way of viewing individuals in their environment and how they perform their jobs or tasks and carry out processes. Sometimes called Job Shadowing. Used to uncover hidden requirements.
8. Prototypes: Obtaining early feedback on requirements by providing a work model of the expected product before actually building it.
9.Benchmarking Involves comparing actual or planned practices, to those of comparable organizations to provide a basis for measuring performance. The organizations compared during benchmarking can be internal or external.
10. Context Diagrams Is an example of a scope model which visually depict the product scope. It shows inputs to the business system, the actor(s) providing the input, the outputs from the business system, and the actor(s) receiving the output.
11. Document Analysis Is used to find requirements by analyzing existing documentation and identifying information relevant to the requirements. Examples of documents that may be analyzed: Business plans, Requests for proposal, Current process flows Requirements documentation, Problem/issue logs, Policies, procedures, and regulatory documentation such as laws.
1. Requirements Documentation: Describes how individual requirements meet the business need for the project. Components may include: Business need or opportunity to be seized. Functional requirements. Quality requirements. Requirements assumptions and constraints Acceptance criteria. Support and training required.
2. Requirements Traceability Matrix: Is a table that links requirements to their origin and traces them throughout the project life cycle. Processes may include: Requirements to business needs. Requirements to project objectives. Requirements to project scope. Requirements to product design.
5.3 Define Scope
5.3 Define Scope

Is the process of: Developing a detailed description of the project and product. We need to define the following: What the project consists of? What is involved to create the project? What it is expected to do when complete. It emphasis is on creating a written Scope Statement to be used in future project decision making.
5.3 Define Scope
5.3.1 Define Scope : Inputs 1. Scope Management Plan 2.Project Charter 3 . Requirements Documentation 4 . Organizational Process Assets
5.3.2 Define Scope : Tools & Techniques

1. Expert Judgment:
2. Product Analysis: Involves translating the project goals into realistic deliverables. Techniques to develop a better understanding of the product.
5.3.2 Define Scope : Tools & Techniques

3. Alternative Generation: Involves looking at different techniques to achieve the goals of the project. This can include brainstorming, pair wise comparisons, and lateral thinking. 4. Facilitated Workshops.
5.3.3 Define Scope : Outputs

1. Project Scope Statement Detailed description of the project deliverables, and the work required to create those deliverables. May include: Project Deliverables. Project assumptions. Project Constraints. Project Exclusions. Product acceptance criteria. Product Scope Description. 2.Project Document Updates.
5.4 Create WBS
5.4 Create WBS

Is the process of: Subdividing project deliverables and project work into smaller, more manageable components. The pieces are ultimately rolled into the Work Breakdown Structure (WBS). The lowest level of the WBS is the work package.
Work Package
Is a deliverable or project work component at the lowest level of each branch of the work breakdown structure . Level at which the cost and schedule for the work can be reliably estimated, monitored, and controlled. Approximated time expected for work package is 80 hours.
5.4 Create WBS
5.4 Create WBS
Benefits of using WBS

Provides a structure for planning the project Provides a basis for assigning work to groups and individuals Provides a basis for preparing estimates, calculating costs, and measuring the progress of work Clarifies roles and responsibilities of personnel Defines the project scope and thus provides a mechanism for assessing the impact of proposed changes Provides data for projecting costs and activities needed on future, similar projects
5.4 Create WBS

1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements requirements 1.2.4 Define server owner
1.3 Define specific functionality

1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team
2.0 Web Site Design

3.0 Web Site Development 4.0 Roll Out 5.0 Support
5.4 Create WBS
5.4.1 Create WBS: Inputs

1. Scope Management Plan
2 . Project scope statement

3 . Requirements documentation 4.Enterprise Environmental Factors 5 . Organizational process assets
5.4.2 Create WBS: Tools & Techniques

1. Decomposition: Subdividing of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. Generally involves five steps: 1.Identify the deliverables and related work. 2.Structure and organize the WBS. 3.Decompose the upper WBS levels into lower detailed components. 4.Develop and assign identification codes to the WBS. 5.Verify that the degree of decomposition is necessary and sufficient.
2. Expert Judgment
5.4.3 Create WBS: Outputs

1. Scope Baseline: - Project scope statement - WBS - WBS Dictionary A document that describes each component in the WBS For each WBS component, the WBS dictionary includes a: Code of account identifier
Statement of work
Responsible organization
List of schedule milestones

2. Project Document Updates
5.5 Validate Scope
5.5 Validate Scope

Is the process of: Formalizing acceptance of the completed project deliverables. Reviewing deliverables with the customer or sponsor. The main goal of Scope Verification is to secure signoff of the project scope and obtain Formal Acceptance. If the project is terminated early, the scope verification process should establish and document the level and extent of completion.
5.5 Validate Scope
5.5.1 Validate Scope: Inputs

2. Requirements Documentation
3.Requirements Traceability Matrix
4. Verified Deliverables
Validated deliverables have been completed and checked for correctness by the Perform Quality Control process. 5. Work Performance Data
5.5.2 Validate Scope : Tools & Techniques

1. Inspection:
Is used to validate that the correct work has been done.

Includes activities, such as measuring, examining, and testing, undertaken to determine whether results conform to requirements. Purpose is to specifically identify deficiencies, gaps and errors against the project documentation.
2. Group Decision Making Techniques
5.5.3 Validate Scope : Outputs

1. Accepted Deliverables
Deliverables that meet the acceptance criteria are formally signed off and approved by the customer or sponsor.
2 .Change Requests
3. Work Performance Information

5.6 Control Scope
5.6 Control Scope

Is the process of: Monitoring the status of the project and product scope. Managing changes to the Scope Baseline. Assure that all requested changes and recommended corrective actions are processed through the Integrated Change Control process. Manage the actual changes when they occur. Uncontrolled changes are referred to as project Scope Creep. Change Control Board (CCB) is responsible for approving or rejecting change request.
5.6 Control Scope
5.6.1 Control Scope: Inputs

1.Project Management Plan. 2. Requirements Documentation 3. Requirements Traceability Matrix
4. Work Performance Data: Information about progress such as which deliverables have started, their progress and which deliverables have finished.
5. Organizational Process Assets
5.6.2 Control Scope: Tools & Techniques

1. Variance Analysis: Determining the cause of variance relative to the scope baseline and deciding whether corrective action is required. Method for resolving the total variance in the set of scope, cost, and schedule variables.
5.6.3 Control Scope: Outputs

1. Work Performance Information Measurements can include planned vs. actual technical performance or other scope performance measurements. This information is documented and communicated to stakeholders. 2. Change Requests Change requests can include preventive or corrective actions or defect repairs.
5.6.3 Control Scope: Outputs

3. Project Management Plan Updates Scope Baseline Updates. Other Baseline Updates. 4. Project Document Updates
5. Organizational Process Assets Updates Causes of variances, Corrective action chosen and the reasons.
Question No : 1
You are probably going to be the project manager for the HGD Project and will need as many inputs to the initiation phase as possible. Of the following, which is the best source of information for your project? A. Business plans B. Historical information C. WBS D. The project charter
Question No : 2
You are the project manager for the NBG Project. This project must be completed within six months. This is an example of which of the following? A. Schedule B. Assumption C. Constraint D. Planning process
Question No : 3
Of the following, which does the scope statement not provide? A. Project justification B. Project product C. Project manager authority D. Project objective
Question No : 4
You are a project manager for a large manufacturer. Your current project is to create a new manufacturing assembly line that will allow your organization to create its products with less downtime and faster turnaround time for its clients. Which of the following is an example of value-added change in this project? A. Adding more team members to the project to get the project work done faster. B. Outsourcing portions of the project execution to transfer risk. C. Adding a recently created computer program to control and monitor the manufacturing assembly. D. Documenting the project and how the manufacturing assembly should work.
Question No : 5
You are the project manager of the WIFI Project. You would like to meet with a stakeholder for scope verification. Which of the following is typical of scope verification? A. Reviewing changes to the project scope with the stakeholders B. Reviewing the performance of the project deliverables C. Reviewing the performance of the project team to date D. Reviewing the EVM results of the project to date
Project Time Management
6. Time Management
Project Time Management includes the processes required to manage timely completion of the project.
The Project time management processes and their associated tools and techniques are documented in the schedule management plan.
6. Time Management
Planning
6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources Controlling
6.5 Estimate Activity Duration
6.6 Develop Schedule
6.7 Control Schedule
6.1 Plan Schedule Management


Is the process of Establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. The key benefit of this process is that it provides guidance and direction on how the project schedule will be managed throughout the project.

1. Project Management Plan 2. Project Charter 3.Enterprise Environmental Factors
4.Organizational Process Assets
6.1.2 Plan Schedule Management: Tools & Techniques

1. Expert Judgment
2. Analytical Techniques The process may involve choosing strategic options to estimate and schedule the project such as: Scheduling methodology, Scheduling tools and techniques, Estimating approaches, Formats, and project management software.
6.1.2 Plan Schedule Management: Tools & Techniques

3. Meetings Project teams may hold planning meetings to develop the schedule management plan.

1. Schedule Management Plan A component of the project management plan. Level of accuracy Units of measure Project schedule model maintenance Control thresholds Reporting formats Process descriptions
6.2 Define Activities

Is the process of Identifying the specific actions to be performed to produce the project deliverables and objectives. Identifying and documenting the work that is planned to be performed. The Activity Definition process will identify the deliverables at the lowest level (Work Package). Work packages are decomposed into smaller components called Schedule Activities
6.2.1 Define Activities: Inputs

1. Schedule Management Plan 2. Scope Baseline
3. Enterprise Environmental Factors

4. Organization Process Assets
6.2.2 Define Activities: Tools & Techniques

1. Decomposition: Subdividing the project work packages into smaller, more manageable components called schedule activities. The activity list, WBS, and WBS dictionary can be developed either sequentially or concurrently, Is often performed by the project team members responsible for the work package.
6.2.2 Define Activities: Tools & Techniques

2. Rolling Wave Planning: Is a form of progressive elaboration planning. The work to be accomplished in the near term is planned in detail at a low level of the WBS. Work far in the future is planned for WBS components that are at a relatively high level. Schedule activities can exist at various levels of detail in the projects life cycle. 3. Expert Judgment: Project team members or other experts can provide expertise in defining activities.
6.2.3 Define Activities: Outputs

1. Activity List The activity list is a comprehensive list including all schedule activities required on the project. Includes the activity identifier Scope of work description for each activity in sufficient detail to ensure that project team members understand what work is required to be completed.

2. Activity Attributes: Extend the description by identifying multiple components associated with each activity. May include most of the following: WBS ID. Activity Name. Activity Code. Activity Description. Predecessor, and Successor Activities. Logical Relationship. Constraints.

3. Milestone List A milestone is a significant point or event in the project. A milestone list identifies all milestones Indicates whether the milestone is mandatory, such as those required by contract, or optional, such as those based upon historical information.
6.3 Sequence Activities

Is the process of: Identifying and documenting relationships among the project activities. Logically sequenced with proper precedence relationships. Involves leads and lags to support later development of a realistic and achievable project schedule. Sequencing can be performed by using project management software or by using manual techniques.
6.3.1 Sequence Activities: Inputs 1. 2. 3. 4. 5. 6. 7. Schedule Management Plan Activity List. Activity Attributes. Milestone List. Project Scope Statement. Enterprise Environmental Factors Organization Process Assets.
6.3.2 Sequence Activities: Tools & Techniques

1. Precedence Diagramming method (PDM)

PDM includes four types of dependencies or logical relationships:
6.3.2 Sequence Activities: Tools & Techniques 2. Dependency Determination: Mandatory dependencies: Inherent in the nature of the work; (Hard logic). Discretionary dependencies: Defined by the project team (Soft logic). External dependencies: Involve relationships between project and non-project activities. Internal dependencies. A precedence relationship between project activities and are generally inside the project teams control.

3.Applying Leads and Lags: Lead: Is an accelerant of an activity. Lag: Is a delay between activities.
6.3.3 Sequence Activities: Outputs

1. Project Schedule network Diagrams
B A C Start FS +15 F SS +10 K G End SS D E
J
FF
2. Project Document Updates.

6.4 Estimate Activity Resources


Is the process of: Estimating the type and quantities of material, people, equipment, or support required to perform each activity.
6.4.1 Estimate Activity Resources: Inputs

1. Schedule Management Plan 2. Activity List. 3. Activity Attributes. 4. Resource Calendars. 5. Risk Register 6. Enterprise Environmental Factors 7. Organization Process Asset
6.4.2 Estimate Activity Resources: Tools & Techniques

1. Expert Judgment 2. Alternative Analysis: They include using various levels of resource capability or skills. Different size or type of machines. Different tools (hand versus automated). Make-or-buy decisions.
6.4.2 Estimate Activity Resources: Tools & Techniques

3.Published Estimating Data: Several companies routinely publish updated production rates and unit costs. Very common practice in Construction field (Materials & Labor).
4. Bottom-Up Estimating: When a schedule activity cannot be estimated with a reasonable degree of confidence, the work within the schedule activity is decomposed into more detail. The team and project manager create an estimate from the activity level and roll the estimates up to create a total project estimate. 5. Project Management Software:
6.4.3 Estimate Activity Resources: Outputs

1. Activity Resource Requirements The process identifies the types and quantities of resources required for each activity in a work package. The amount of detail and the level of specificity can vary by application area. Can include the basis of estimate, and the assumptions that were made in determining resources.
2.Resource Breakdown Structure



Is the process of: Approximating the number of work periods needed to complete individual activities with estimated resources. The key is to estimate the number of work days (or hours) to complete each activity. Estimation then rolls up to create summary (high level) estimates.
6.5.1 Estimate Activity Duration: Inputs

1. Schedule Management Plan. 2. Activity List. 3. Activity Attributes. 4. Activity Resource Requirements. 5. Resource Calendars. 6. Project Scope Statement 7. Risk Register 8.Resource Breakdown Structure 9. Enterprise Environmental Factors 10. Organization Process Asset
6.5.2 Estimate Activity Duration: Tools & Techniques

1. Expert Judgment: 2. Analogous Estimating Uses parameters such as duration, budget, size, weight, and complexity, from a previous, similar project, as the basis for estimating for a future project. Used when there is limited amount of detailed information Analogous estimating uses historical information and expert judgment. Is generally less costly and time consuming than other techniques.

3. Parametric Estimating Parametric estimating uses a statistical relationship between historical data and other variables. to calculate an estimate for activity parameters, such as cost, budget, and duration. (square footage in construction)

4. Three-point Estimates (Program Evaluation and Review Technique) PERT Uses three estimates to define an approximate range for an activitys duration. Most likely: the duration of the activity, given the resources likely to be assigned, their productivity. Optimistic: the activity duration is based on analysis of the bestcase scenario for the activity. Pessimistic: the activity duration is based on analysis of the worst-case scenario for the activity. T = O +4M+P 6 Standard Deviation () = P O Variance (V) = 2 6 Arch. Sherif Elwishahy, PMP
Example
Activity
Optimistic
Most likely
Pessimistic
Expected duration (O+ 4*M +P) 6

4 5 7 5
Standard Deviation (P O) 6
Variance V = 2
A B C D
2 3 4 4
4 5 7 5
6 7 10 6
0.67 0.67 1 0.33
0.44 0.44 1 0.11

5. Group decision-making Techniques. 6. Reserve Analysis: Is used when a team wants to plan for known unknowns. Sometimes called Contingency reserves. The analysis adds extra time to the estimates from a work units or percentage estimates.
6.5.2 Estimate Activity Duration: Outputs

1. Activity Duration Estimates Activity duration estimates are quantitative assessments of the likely number of work periods that will be required to complete an activity. Duration estimates do not include any lags as described in 6.2.2.3. Activity duration estimates may include some indication of the range of possible results. For example: 2 weeks 2 days to indicate that the activity will take at least eight days and no more than twelve (assuming a five-day workweek). 15% probability of exceeding three weeks to indicate a high probability 85% percentthat the activity will take three weeks or less. 2. Project Document Updates.

Is the process of: Analyzing activity sequences, Durations, resource requirements, and schedule constraints to create the project schedule. At this point, the following come together and the schedule is born: WHAT; activity list and WBS. WHEN; start and finish dates. WHO; resources. WHAT ORDER; activity sequencing.
6.6.1 Develop Schedule: Inputs

1. Schedule Management Plan. 2. Activity List. 3. Activity Attributes. 4. Project Schedule network Diagrams 5. Activity Resource Requirements. 6. Resource Calendars. 7. Activity Duration Estimates 8. Project Scope Statement 9. Risk Register 10. Project staff assignments 11. Resource Breakdown Structure 12. Enterprise Environmental Factors 13. Organization Process Asset
6.6.2 Develop Schedule: Tools & Techniques

1. Schedule Network Analysis It is a technique that generates the schedule. It employs several techniques such as: Critical path analysis. Critical chain analysis. What If analysis. Resource leveling.

2. Critical Path Method (CPM): It calculates the early start and finish dates. It calculates the late start and finish dates. It doesn't take account of any resource limitations. Generates the CPM by performing a forward and backward pass analysis through the schedule network.

A network diagrams is a schematic display of projects activities and dependencies.
2 Days
12 Days B
5 Days
Start
Finish
6 Days 7 Days
3 Days F

The Forward Pass
Early Start Box
0
2 Days
2
Early Finish Box
0 Start Start
A A 6 Days
0 D D 6

Early Start = Highest of predecessors Early Finish Times
2 A 2 Days
14
14
19
0 Start
B 12 Days
C 5 Days
19 Finish
19
13
13
16
D 6 Days
E 7 Days
F 3 Days

The Backward Pass
5 Days 14 C C 14 3 Days 19 19 19 Finish Finish 19 19
19
13
F F 16
16
19
Late Start Box
Late Finish Box


Late Finish = Lowest of successors Late Start Times 12 Days 2 A A 0 2
2 Days 0
5 Days
2
B B 2
14
14 C C 14 19 19 19
Start Start
0 0
Finish Finish
6 Days 0 D D 3 9 9 6 6 E 7 Days 13 3 Days 19 19
E
16 16
F F 19

Late Finish = Lowest of successors Late Start Times 12 Days 2 2 2
2 Days 0 0 0
5 Days
A A
2 2
2
B B
14 14
14
14 14
C C
19 19 19 19 19 19 19
Start Start
0 0
Finish Finish
6 Days 0 0 D D 3 9 9 6 6 7 Days 6 6 E 13 13 3 Days 13 F F 16 16 19 16 19

2.Critical Path Method (CPM): If one or more activities on the critical path takes longer than planned, the whole project schedule will slip unless corrective action is taken Misconceptions: The critical path is not the one with all the critical activities; it only accounts for time. There can be more than one critical path. The critical path can change as the project progresses.

2 Days 0 0 0
5 Days
A A
2 2
2
B B
14 14
14
14 14
C C
19 19 19 19 19 19 19
Start Start
0 0
Finish Finish

2 Days 0 0 0
5 Days
A A
2 2
2
B B
14 14
14
14 14
C C
19 19 19 19 19 19 19
Start Start
0 0
Finish Finish
Path A Path B Path C
19 Days 11 Days 16 Days

Free float ( slack ) The amount of time an activity can delay without delaying the early start of its successor . Total float ( slack ) The amount of time an activity can delay without delaying the project completion date .

2 Days 0 0 0
5 Days
A A
2 2
2
B B
14 14
14
14 14
C C
19 19 19 19 19 19 19
Start Start
0 0
Finish Finish
Free float ( slack )= 3 Days


3. Critical Chain Method Accounts for limited resources. There is a focus on starting activities as late as possible. Project Buffer:
placed after last task in project to protect schedule .
Feeding Buffers:
placed between a noncritical task and a critical task when the noncritical task is an immediate predecessor of the critical task.
Resource Buffers:
placed just before a critical task that uses a new resource type .

3. Critical Chain Method

4. Resource Optimization Techniques: Leveling is the process of adjusting resource peeks and valleys to create a level usage of the resources. Typically, leveling sacrifice the overall finish date, and it is not uncommon to see the schedule stretch out a little.

5. Modeling Techniques: It is an analysis of the question What happens if the situation represented by scenario X happens? Delaying a major component delivery. Extending specific engineering duration. Introducing an external factor. Simulation calculating multiple project durations with different sets of activity assumptions. The most common simulation technique is Monte Carlo analysis. Arch. Sherif Elwishahy, PMP

6. Applying Leads and Lags: Are done to fine tune the schedule. Adds delays (Lags) or accelerators (Lead) that sometimes come between activities.
6.6.2 Develop Schedule: Tools & Techniques 7. Schedule Compression: After the initial schedule has been put together. To achieve a more aggressive time goal. To compensate for a delay in an activity on the critical path. If the initial schedule does not meet the required end Due date of the project. Can be achieved mainly by two techniques: Crashing. Fast Tracking.

Crashing: Involves putting more people on the critical path activity. Excludes re-sequencing activities. Requires extra cost affects budget. Fast Tracking: Refers to making activities parallel. Use the network diagram to re-plan the sequence of activities to make more activities parallel. Includes Risk exposure associated with resequencing, and parallel activities.
6.6.2 Develop Schedule: Tools & Techniques 8.Scheduling Tool: Automated scheduling tools expedite the scheduling process by generating start and finish dates based on the input of: Activities. Network diagrams. Resources. Activity durations. Can be used in conjunction with other project management software. Very sensitive to input data.
6.6.3 Develop Schedule: Outputs 1. Project schedule
6.6.3 Develop Schedule: Outputs
6.6.3 Develop Schedule: Outputs

2. Schedule baseline Is the accepted and approved version of the project schedule. 3. Schedule data Includes the schedule milestones, schedule activities, activity attributes, and documentation of all identified assumptions and constraints.
4. Project Calendars 5. Project Management Plan Update 6. Project document updates.


Is the process of: Monitoring the status of the project. Updating project progress. Managing changes to the schedule baseline. Schedule control is concerned with: Determining the current status of the project schedule. Influencing the factors that create schedule changes. Determine that the project schedule has changed. Managing the actual changes as they occur.
1. Project Management Plan. 2. Project schedule 3. Work Performance Data. 4. Project Calendars. 5. Schedule Data. 6. Organization Process Asset.
1. Performance reviews Performance reviews measure, compare, and analyze schedule performance such as actual start and finish dates, percent complete, and remaining duration for work in progress. Trend analysis Critical path method Critical chain method Earned value management
2. Project management software 3. Resource Optimization Techniques 5. Modeling Techniques 6. Leads and lags 7. Schedule compression 8. Scheduling tool
1. Work Performance Information. 2. Schedule Forecasts.
3. Change Requests.
4. Project Management Plan Updates.
5. Project Documents Updates.

6. Organization Process Asset Updates.
Question No 1
You are the project manager of the JHG Project. This project has 32 stakeholders and will require implementation activities in North and South America. You have been requested to provide a duration estimate for the project. Of the following, which will offer the best level of detail in your estimate? A. WBS B. Order of magnitude C. Requirements document D. Stakeholder analysis
Question No 2
You are the project manager for the LLL Project. Steven, a project team member, is confused about network diagrams. Specifically, he wants to know what the critical path is in a network diagram. Your answer is which one of the following? A. The critical path is the network that hosts the activities most critical to the project success. B. The critical path is the path with the longest duration. C. The critical path is always one path that cannot be delayed or the entire project will be delayed. D. The critical path is the path from start to completion with no deviation from the project plan.
Question No 3
You are the project manager for the POL Project. This project will use PERT to calculate the estimates for activity duration. For activity D, you have the following information: P=9, O=4, M=5. What is the result of PERT? A. 18 weeks B. 5.5 weeks C. 33.33 days D. 3 weeks
Question No 4
You are the project manager for a project with the following network diagram. Studying the diagram, which path is the critical path? A. ABCD B. EBCD C. EFH D. EGH
Question No 5
Bertha is the project manager for the HAR Project. The project is behind schedule and Bertha has elected, with managements approval, to crash the critical path. This process adds more what?
A. Cost
B. Time
C. Risk
D. Documentation
Project Cost
Management
7. Cost Management
Includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. Estimate costs Determine budget Control costs
Cost Management Plan

Should include most of the following: Level of Accuracy. Units to Measure.
Organizational procedures links (Control

account).
Control Thresholds: an agreed-upon amount of variation allowed before action needs to be taken. Rules of Performance Measurement. Reporting Format. Process Description.
Level of accuracy
Estimate Name Process Group Tolerance Range Example (Actual Cost) Generally Accepted Estimate Tolerance
Order of Magnitude Budget
Initiation
-25% to +75%
1000 EGP
7501750 EGP
Planning (Early)
-10% : + 25%
1000 EGP
900 1250 EGP
Definitive
Planning (Late)
-5% : + 10%
1000 EGP
950 1100 EGP
LIFE CYCLE COSTING

Means that the cost of operation and maintenance is to be considered and managed with the project Cost.
PROJECT OPERATIONS AND MAINTENANCE PHASE
costs
costs
Sunk Cost
Are costs that have already been spent on a project. DO NOT consider these costs when making future project decisions.
Example: When terminating a project dont consider all previous payments in your decision.
7. Cost Management
Planning Controlling
7.1 Plan Cost Management
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
7.1.1 Plan Cost Management: Inputs
1. Project management plan
2. Project charter
3. Enterprise environmental factors 4. Organizational process assets
7.1.2 Plan Cost Management: Tools & Techniques
1. Expert judgment 2. Analytical techniques
3. Meetings
7.1.3 Plan Cost Management: Outputs
1. Cost management plan A component of the project management plan. Level of accuracy Units of measure Project schedule model maintenance Control thresholds Reporting formats Process descriptions
7.2 Estimate Costs
7.1 Estimate Costs

Is the process of: Developing an approximation of the monetary resources needed to complete project activities. The estimator considers the possible causes of variation of the cost estimates, including risks. It is a key element because good estimates can determine project success or failure.
7.2 Estimate Costs
7.2.1 Estimate Costs: Inputs

1. Cost Management Plan. 2. Human Resource Plan. 3. Scope Baseline. 4. Project Schedule. 5. Risk Register. 6. Enterprise Environmental Factors. 7. Organizational Process Assets.
7.2.2 Estimate Costs: Tools & Techniques

1. Expert Judgment: 2. Analogous Estimating:( ) It is a high level estimate not a detailed one. Is done by reviewing similar projects, and benchmarking with them.
Example of Analogous Estimating

The Carlton Park Project was to pave a sidewalk around a pond in the community park. The sidewalk of Carlton Park was 1048 feet by 6 feet, used a textured surface, had some curves around trees, and cost $25,287 to complete or $4.021 / foot . The current project, King Park, will have a similar surface and will cover 4,500 feet by 6 feet. The analogous estimate for this project, based on the work in Carlton Park, is 108,500 $. This is based on the price per foot of material at $4.021.

3. Parametric Estimating:( ( Uses a mathematical model based on known parameters to predict the cost of a project. Example: Consultant Hour Rate = 200 EGPS. He is expected to work on the project for = 25 Hours. C=W*R Total Cost= 200 * 25 = 5000 EGP.

4. Bottom-Up Estimating: The team builds the total detailed estimate from the bottom up. 5. Three Point Estimating: Mathematical function. D = (O + ( 4 * M ) + P) 6 6. Reserve Analysis: Sometimes called Contingency reserves. May be a percentage of the estimated cost, a fixed number.

7. Cost Of Quality [COQ]: (8.1 Plan Quality) Assumptions about COQ is factored in to create the project cost estimate.

8. Project Management Estimating Software:
Has the capability to help plan, organize, and manage resource pools. Computerized Spreadsheets. Simulations. Statistical Tools. Can facilitate cost estimate alternatives.
9.Vendor Bid Analysis: (Procurement Management Module) 10. Group Decision Making Techniques.
7.2.3 Estimate Costs: Outputs

1. Activity Cost Estimates 2. Basis of Estimates: The amount and type of additional details supporting the cost estimates. Should include most of the following: The basis of estimate All assumptions made. Known constraints. Range of possible estimates (10000 EGP 10%) Indication of the confidence level of the final estimate. 3. Project Document Updates.

Is the process of:
Aggregating the estimated costs of individual

activities or work packages to establish an authorized cost baseline.
The budgeting should include a timebased

approach to help determine project costs needs as time passes.
It establishes the basis for measurement,

monitoring, and controlling of the project costs.
7.3.1 Determine Budget: Inputs

1. Cost management plan.
2. Scope Baseline. 3. Activity Cost Estimates. 4.Basis of Estimates. 5.Project Schedule.
6.Resource Calendars.
7. Risk register
8. Agreements.
9.Organizational Process Assets.
7.3.2 Determine Budget: Tools & Techniques

1. Cost Aggregation: Schedule activity cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS, such as control accounts, and ultimately for the entire project. Is done to roll-up the project costs starting with the activity level task.

8. Cost Budget
7.Management Reserves $ 1423 $ 68
6. Cost Baseline
5. Contingency Reserves 4. Project Estimates 3. Control Account Estimate 2. Work Package Estimate
$ 1355
$ 105 $ 1250 CA 1 $ 850 WP 1 $ 100
A1 $ 25 A2 $ 25 A3 $ 25
Cost Aggregation
CA 2 $ 400 WP 2 $ 250 WP 3 $ 500
1. Activity Estimates
A4 $ 25 Arch. Sherif Elwishahy, PMP

2. Reserve Analysis:
Is used when a team wants to plan for known

unknowns.
Contingency Reserve / Management Reserve. Reserves are NOT part of the project cost baseline. Reserves MAY be included in the total budget. Reserves are NOT included in EVM.()
3. Expert Judgment.

4. Historical Relationships:
Any historical relationships that result in

parametric estimates or analogous estimates.
Example:
residential home construction is based on

X cost / m2 of space.

5. Funding Limit Reconciliation:
Large variations in the periodic expenditure of

funds are usually undesirable for organizational operations.
The expenditure of funds is reconciled with the

funding limits set by the customer or performing organization.
7.3.3 Determine Budget: Outputs

1.
Cost Baseline: An authorized time-phased budget at completion (BAC) used to measure, and control overall cost performance of the project.
7.3.3 Determine Budget: Outputs

2. Project Funding Requirements:
3. Project Document Updates.

7.4 Control Costs
7.4 Control Costs

Is the process of:
Monitoring the status of the project. Updating the project budget. Managing changes to the baseline.
Can Involve:
Managing cost Levels compared to the Baseline. Analyzing and managing cost variance. Documenting cost records. Communicating with stakeholders about cost issues.
7.4 Control Costs
7.4.1 Control Costs: Inputs

1.Project Management Plan. 2.Project Funding Requirements. 3.Work Performance Data.
1.Earned Value Management:
Is a method of measuring project performance by comparing the amount of work planned with that actually accomplished, in order to determine if cost and schedule performance are as planned.
BAC
The total amount originally expected to be spent on the project. The authorized budget assigned to the work to be accomplished )% * PV( The value of work performed
Budget At Completion Planned Value
Key Dimension
PV EV
Earned Value
AC CPI
Performance Index SPI CV
The total cost actually incurred EV/AC
Actual Cost Cost Performance Index

Schedule Performance Index Cost Variance Schedule Variance
EV/PV EV AC. EV PV
Variance
SV
VAC
BAC - EAC
Variance At Completion
Earned Value Management
2. Forecasting
If the BAC is no longer viable, the project manager

should develop a Forecasted EAC.
Forecasts are generated based on work performance

information provided as the project is executed.
The work performance information covers the

projects past performance and any information that could impact the project in the future.
It is used when the original estimate was fundamentally flawed. It is used when no variances from the BAC have occurred or will continue at the same rate of spending.
AC + Bottom up ETC
BAC Cumulative CPI
EAC Estimate At Completion
It calculates actual to date plus the remaining value of work to perform is used if variances are atypical.
AC + (BAC EV )
It calculates actual to date plus the remaining budget modified by performance. ETC The amount needed to finish the work based on the current spending
(BAC EV)
AC + CPI + SPI
EACAC
3. To-Complete Performance Index (TCPI)
Is 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. budget what rate must we meet for the remaining work?
(BAC EV) (BAC AC) If BAC is still valid
It answers the question of In order to stay within
TCPI (BAC EV) (EAC AC) If BAC is flawed
4. Performance Reviews: (11.5 Plan Risk Responses) Compare cost performance over time, schedule activities or work packages overrunning and under running the budget.
If EVM is being used, the following information is determined:

Variance Analysis.
Trend Analysis.
Earned Value Performance.
5. Project Management Software: Often used to monitor the three EVM dimensions (PV, EV, and AC). Used to: Display graphical trends. Forecast a range of possible final project results. 6. Reserve Analysis: Cost performance measurements (CV, CPI) are used to assess the magnitude of variation to the original cost baseline.
1.Work Performance Information. 2.Cost Forecasts. 3.Change Requests. 4.Project Management Plan (UPDATE). 5.Project Document (UPDATE).
6.Organizational Process Assets (UPDATE).

Case Study
You are a project Manager responsible for delivering a new manufacturing facility. Consider the following table which represents a project list of activities. Prepare a detailed Status Report of this project on day. Is this project OK ???
Case Study
Activity PV $ 300 DAY 1 DAY 2 DAY 3 DAY 4 $ 150 $ 100 AC $ 300 $ 200 $ 150 % Complete 100% 100% 100% EV $ 300 $ 150 $ 100
$ 200
$ 100 $ 250 $ 200 $ 400 $ 300 $ 200
$ 225
$ 100 $ 300 $ 140 $ 100 $0 $0
100%
100% 60% 65% 20% 0% 0%
$ 200
$ 100 $ 150 $ 130 $ 80 $0 $0
DAY 5
Case Study
1.Calculate BAC: Budget At Completion for the Project BAC= PV for all Activities BAC= 300+150+100+200+100+250+200+400+300+200 BAC= 2200 2.Calculate PV: Planned Value for the Scheduled Project PV = PV for activities till day 3 PV = 300+150+100+200+100+250 = 1100 3.Calculate AC: Actual Costs for the Project AC = AC for all activities AC = 300+200+150+225+100+300+140+250+0+0 AC = 1515 Arch. Sherif Elwishahy, PMP
Case Study
4.Calculate EV: for the Project EV= EV for all activities EV= 300+150+100+200+100+150+130+80+0+0 EV= 1210
5.Calculate CPI: Cost Performance Index CPI = EV / AC CPI = 1210 / 1515 = 0.799 6.Calculate SPI: Schedule Performance Index SPI= EV / PV SPI= 1210 / 1100 = 1.1
Case Study
7.Calculate CV: Cost Variance CV = EVAC = 1210 1515 = -305 8.Calculate SV: Schedule Variance SV= EVPV = 1210 1100 = 110
9.Calculate EAC: Estimate At Completion (No corrective action + same performance expected) EAC= BAC / CPI EAC= 2200 / 0.799 = 2753 (Case I)
(Corrective action + one time error only) EAC= BAC+ (AC EV) EAC= BACCV = 2200 (-305) = 2505 (Case II) Arch. Sherif Elwishahy, PMP
Case Study
10.Calculate ETC: Estimate To Completion ETC = EAC-AC ETC = 2753 1515 = 1238 (Case I) ETC = 2505 1515 = 990 (Case II) 11.Calculate VAC: Variance At Completion VAC= BAC-EAC VAC= 2200 2753 = -553 (Case I) VAC= 2200 2505 = -305(Case II)
12.Calculate TCPI: To-Completion Performance Index TCPI= (BAC-EV) / (BAC-AC) TCPI= (2200 1210) / (2200 1515) TCPI= 990 / 685 = 1.445 Arch. Sherif Elwishahy, PMP
Question No : 1
You are the project manager for the JKH Project. You have elected to use parametric modeling in your cost estimating for the project. Which one of the following is an example of parametric modeling? A. $750 per ton B. Historical information from a similar project C. Estimates built from bottom-up based on the WBS D. Estimates based on top-down budgeting
Question No : 2
You are the project manager for a technical implementation project. The customer has requested that you factor in the after-the-project costs, such as maintenance and service. This is an example of which one of the following? A. Life cycle costs B. Scope creep C. Project spin off D. Operations
Question No : 3
You have just completed the initiating processes of a small project and are moving into the planning processes when a project stakeholder asks you for the projects budget and cost baseline. What should you tell her? A. The project budget can be found in the projects charter which has just been completed. B. The project budget and baseline will not be finalized and accepted until the planning processes are completed. C. The project management plan will not contain the projects budget and baseline, this is a small project. D. It is impossible to complete an estimate before the project management plan is created.
Question No : 4
Your project has a CV of -200. This means: A. Your project is under budget B. Your SPI is also negative C. Your project is above budget D. CV cannot be negative and there must be an error in the calculation.
Question No : 5
You are the project manager of the Carpet Installation Project for a new building. Your BAC is $600,000. You are now 40 percent done with the project, though your plan called for you to be 45 percent done with the work at this time. What is your earned value? A. $240,000 B. $270,000 C. $30,000 D. $30,000
Important Quality Concepts
Quality & Grade

Quality Is the sum of the characteristics of a product that allow it to meet the demands or expectations of the project. Quality is all about fulfilling requirements Grade Is a category or rank given to entities having the same functional use but different technical characteristics For example: there are different grades of paint, different grades of metal, and even different grades of travel.
Precision & Accuracy

Accuracy
Means that the measured value is very close to the true value. Example: if you are testing a process and the target is 300 ml. output, accuracy deals with how close the measurement is to the 300 ml. target. Precision Means the values of repeated measurements are clustered and have little scatter. Example: how many of the outputs are 300 ml.
Prevention & Inspection

Prevention Deals with eliminating defects and potential defects from the process. It is a proactive approach to quality. Inspection Deals with fixing errors as they come up in the process of creating the product. It is a reactive approach to quality.
Total Quality Management

Is a philosophy conceived by Dr. Deming. It focuses on proactive attitude toward quality with a statistical analysis to document improvement. Quality should be planned not inspected.
Zero Defect
Is a concept created by Philip Crosby. Do something right initially, and you shouldnt have to repeat it. If the money is spent upfront, the effort will eliminate or minimize the need for rework if defects occur. Main points: Cost of quality is measured by cost of nonconformance. Conformance to requirements. Quality comes from Prevention.
Fitness For Use

Is a concept created by Joseph Juran.
The needs of the customers and stakeholders are defined and then attempted to satisfy. The main goal is to satisfy the real need of the customers and stakeholders.
Kaizen
Means Kai (alter) and Zen (make better or improve). Small improvements in products or processes to reduce costs and ensure consistency of performance of products or services. In the US and most of Western Europe improvements are thought of as BIG improvements. In Japan, improvements are thought of as small improvements.
Standard Deviation ( Sigma )

The formula for standard deviation is (P O) / 6. Minimum defects % acceptable from a process is sigma levels: 1 Sigma = 68.26% Accepted Defects = 317300000 / Billion 2 Sigma = 95.46% Accepted Defects = 45400000 / Billion 3 Sigma = 99.73% Accepted Defects = 2700 / Billion 6 Sigma = 99.9997% Accepted Defects = 3.4 / Billion
Standard Deviatio ( Sigma )
6 Sigma 99.9997% 99.9997%
68.26% 95.46% 99.73%

Project Quality Management
8. Quality Management
Project Quality Management includes the processes and activities that determine quality policies, objectives, and responsibilities. The objective is to satisfy the needs for which the project was undertaken. It applies to all projects, regardless of the nature of their product.
8. Quality Management
Planning
Executing
8.2
Controlling
8.1
8.3
8.1 Plan Quality Management


Is the process of: Identifying quality requirements and/or standards for the project and product. Documenting how the project will demonstrate compliance. Think through the rules that will define quality and establish them to verify that the product will adhere to the quality needs of the project.
8.1.1 Plan Quality Management : Inputs

1. Project management plan 2. Stakeholder register 3. Risk register 4. Requirements documentation 5. Enterprise environmental factors 6. Organizational process assets
8.1.2 Plan Quality Management : Tools & Techniques

1. Cost-Benefit Analysis: Is a key tool that involves analysis of how to minimize rework and maximize satisfaction and productivity. Marginal Analysis: Optimal quality is reached at the point where the incremental -revenue from improvement equals the incremental cost to secure it.

2. Cost Of Quality [COQ]: Is the cost associated with conformance to requirements and steps taken to eliminate non-conformance.

2. Cost Of Quality [COQ]:
8.1.2 Perform Quality Control: Tools & Techniques

3. Seven basic quality tools: 1- Cause and Effect Diagrams Also called Ishikawa diagrams or fishbone diagrams. Illustrate how various factors might be linked to potential problems or effects. A possible root cause can be uncovered by continuing to ask why or how along one of the lines.

2- Control Charts: Help measure and track output. Shows output over time so monitoring for variance and trends can be completed. Contains two limitations: Upper and Lower Control Limits (UCL, LCL). Upper and Lower Specs. Limits (USL, LSL). Assignable Cause: Is a measurement on the control chart that must be researched before you can determine the reason of the failure.
8.1.2 Perform Quality Control: Tools & Techniques 2- Control Charts:

Special Causes: Sometimes are called unusual events. They deal with things that dont typically happen associated with a test process. Common Causes: Sometimes called normal process variation or random cause. They deal with the variation that typically happens within a process. It deals with random events that can occur.

2- Control Charts:

3- Flowcharting:

4- Histogram
8.1.2 Perform Quality Control: Tools & Techniques 5- Pareto Chart:
6- Check Sheets

7- Scatter Diagram

4. Benchmarking: Is a key tool used to compare the product or service to other established standards. Comparing planned practices to other projects, in order to generate ideas for improvement and to provide a standard against which to measure performance.

5. Design of Experiments: Analytical technique that helps identify which variables have the most influence on the overall outcome Helps determine an optimal solution from a relatively limited number of cases. 6. Statistical Sampling: Is used to test an appropriate amount of output to detect defects. The quantity tested is enough so that the cost would not out weight the benefit.

7. Additional Quality Planning Tools: These include but not limited to: Brainstorming. Affinity Diagrams. Force Field Analysis. Nominal Group Technique. Matrix Diagrams. Prioritization Matrices.
8. Meetings.
8.1.3Plan Quality Management : Outputs

1. Quality management plan 2. Quality metrics Is an operational definition that describes, in very specific terms, a project or product attribute and how the quality control process will measure it.

3. Quality checklists Its usually a list of activities that workers will check off to ensure each task has been completed. Checklists can be quick instructions of what needs to be done to clean a piece of equipment, or questions that remind the employee to complete a task.

4. Process improvement Plan: Process boundaries: Describes the purpose of processes, their start and end, their inputs/ outputs, the data required, the owner, and the stakeholders. Process configuration: A graphic depiction of processes, with interfaces identified, used to facilitate analysis. Process metrics: Along with control limits, allows analysis of process efficiency. Targets for improved performance: Guides the process improvement activities.
5. Project Document updates.

8.2 Perform Quality Assurance


Is the process of: Auditing the quality requirements and the results from quality control measurements to insure appropriate quality standards and operational definitions are used. We verify or validate that the quality standards defined for the project will indeed meet the standards. This validates the quality process not the product.
8.2.1 Perform Quality Assurance: Inputs 1. Quality management plan 2. Process improvement plan 3. Quality metrics 4. Quality control measurements 5. Project documents
8.2.2 Perform Quality Assurance: Tools & Techniques

1. Plan Quality and Control Quality Tools & Techniques.

2. Quality Audits: 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, Identify all the gaps/shortcomings, Share the good practices. Proactively offer assistance in a positive manner. Highlight contributions of each audit in the lessons learned repository of the organization.

3. Process Analysis: Utilize the process improvement plan to figure out ways to optimize the project execution. Root-Cause analysis is done to determine what is causing any problems and takes steps to eliminate similar problems in the future.
8.2.3 Perform Quality Assurance: Outputs

1. Change requests
2. Project management plan updates

3. Project document updates 4. Organizational process assets updates
8.3 Perform Quality Control


Is the process of: Monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. It is the process area in which the product or the output of the process is measured against the specifications. The items that roll off the line would be measured against the approved standard.
8.3.1 Perform Quality Control: Inputs

1.Project Management Plan. 2.Quality Metrics. 3.Quality Checklists. 4.Work Performance Data. 5.Approved Change Requests. 6.Deliverables. 7. Project Documents 8.Organizational Process Assets.

1. Seven Basic Quality Tools

2. Statistical Sampling:
3. Inspection: Is the process of verifying that the work was built as intended includes measuring, examining, and testing. Performed at various points in the project Also referred to as reviews, peer reviews, audits, and walk-thorough.
4. Approved Change Requests Review:
8.3.3Perform Quality Control: Outputs

1. Quality control measurements 2. Validated changes 3. Verified deliverables 4. Work Performance Information 5. Change requests 6. Project management plan updates 7. Project document updates 8. Organizational process assets updates
Question No : 1
The customer was not satisfied with the finished product`s quality. The cost of poor quality can also be referred to as: A. Cost of conformance B. Failure cost C. Rework cost D.Opportunity cost .
Question No : 2
You are the project manager for the Floor Installation Project. Today, you plan to meet with your project team to ensure the project is completed with no deviations from the project requirements. This process is which of the following? A. Quality planning B. Quality management C. Quality control D. Quality assurance
Question No : 3
All the following statements about "Quality" and "Grade" are true EXCEPT: A. Grade is a rank given to entities having the same functional use but different technical characteristics. B. Low quality product may be of high grade. C. Low grade product may be of high quality. D. It is a problem if the product is of high quality and low grade.
Question No : 4
You are the project manager for the KOY Project. This project Requires Quality that maps to federal guidelines. To ensure that you can meet these standards, you have elected to send the project team through training specific to the federal guidelines your project must adhere to. The costs of these classes can be assigned to which of the following? A. Cost of doing business B. Cost of quality C. Cost of adherence D. Cost of nonconformance
Question No : 5
In the following graphic, what does the highlighted area represent? A. Out of control data points B. In control data points C. Rule of seven D. Standard deviation
Project Human Resource Management
9. Human Resource Management

Planning
9.1
Executing
9.2
9.3
9.4
9. Human Resource Management

Project HR Management includes the processes that organize, manage, and lead the project team. PMIs perspective is that the Project Manager has human resource responsibilities and authority.
9.1 Develop Human Resource Plan

9.1 Develop Human Resource Plan
Is the process of: Identifying and documenting project roles, responsibilities and required skills. Reporting relationships Creating a staffing management plan. Individuals and groups may be part of the organization or external to it.
9.1 Plan Human Resource Management
9.1.1 Develop Human Resource Plan : Inputs

2.Activity Resource Requirements.

3.Enterprise Environmental Factors. 4.Organizational Process Assets.
9.1.2 Develop Human Resource Plan : Tools & Techniques

1. Organization Charts and Position Description: Also known as Organizational Breakdown Structure [OBS] or Resource Breakdown Structure [RBS]. It is a graphical display of reporting relationships on the project. Position Description help team members understand their project responsibilities. We can categorize into (3) types: Hierarchical-type chart (OBS, or RBS). Matrix-based chart (RAM). Text-oriented format.

2. Networking: Is a good opportunity to ensure that an appropriate approach to staffing and the appropriate parties are involved. Is a formal and informal interaction with others in an organization, industry, or professional environment. Human Resource networking activities include: Proactive correspondence. Luncheon meetings. Informal conversations. Trade conferences.

3. Organizational Theory: Helps establish how the organization or project should be structured. Effective use of this information can: Shorten the amount of time, cost, and effort needed to create the human resource planning outputs. Improve the likelihood that the planning will be effective.

4. Expert Judgment
5. Meetings
9.1.2 Develop Human Resource Plan : Outputs

1. Human Resource Plan: Is created to include roles and responsibilities, organizational charts, and a staffing management plan for the project. The plan should include at minimum: Documentation of roles and responsibilities. Project organization charts that define team members and their reporting hierarchy. Staffing Management Plan.
Role &Responsibility
Role: The portion of a project for which a person is accountable. Authority: Right to apply project resources, expend funds, make decisions, or give approvals Responsibility: Work that a project team member is expected to perform. Competency: Skill and capacity required to complete project activities.
Staffing Management Plan

Is part of the Human Resource Plan and helps Project Manager and team do the following: Acquire staff. Establish Resource Calendar. Create a staff release plan. Establish training requirements. Establish recognition and rewards. Ensure compliance. Ensure safety.
9.2 Acquire Project Team

Is the process of: Confirming human resource availability. Obtaining the team necessary to complete project assignments. The project management team may or may not have direct control over team member selection because: Use of subcontractor personnel. Matrix project environment.
9.2.1 Acquire Project Team: Inputs

1.Human Resource Management Plan.
2.Enterprise Environmental Factors.

9.2.2 Acquire Project Team: Tools & Techniques

1. Pre-Assignment: Pre-assignment occurs when it is known in advance that certain people will be on the project team. Some of the reasons could be: Some people being promised as part of a competitive proposal. The project depends upon the expertise of particular persons.
Some staff assignments are defined within the project charter.


2. Negotiation:
Staff assignments are negotiated on many projects.
The project management team negotiates with:

Functional Managers.
Other Project Management teams.

External organizations (vendors, contractors).

3. Acquisitions: Required services may be acquired from outside sources. Can involve hiring individual consultants or subcontracting work to another organization.

4. Virtual Teams: Are comprised of people working in various locations. They can work together virtually via technology for activities such as communication and information sharing.
Benefits may be:

Form teams who live in widespread geographic areas. Incorporate employees who work from home offices.
Include people with mobility limitations or disabilities.

Launch projects that would have been ignored due to travel expenses.

5. Multi-Criteria Decision Analysis Criteria is developed and used to rate potential team members. The criteria is weighted according to the relative importance. Some examples of selection criteria are as follows: Availability. Cost. Experience. Ability. Knowledge Skills. Attitude. International factors.
9.2.3 Acquire Project Team: Outputs

1. Project Staff Assignments.
2. Resource Calendars: Document the time periods that each project team member can work on the project. This should include: Vacations. Commitment to other projects. Team member availability.
3. Project Management Plan Update.
9.3 Develop Project Team

Is the process of: Improve knowledge and skills of team members. Improve feelings of trust and agreement among team members to lower conflict, and increase team work. Create a team culture to allow cross-training and mentoring between team members to share knowledge and expertise.
9.3.1 Develop Project Team: Inputs

1.Project Human Resource Plan.
2.Project Staff Assignments..

3.Resource Calendars.
9.3.2 Develop Project Team: Tools & Techniques

1. Interpersonal Skills: Sometimes known as Soft Skills. Are vital to maximize the output of the team. This allows the project manager to work with the appropriate parties as needed to get the necessary outcome. Skills such as: Empathy. Influence. Creativity. Group Facilitation.

2. Training: Is a key to team development. Training focuses on developing the individual, which helps make the team stronger. There are a number of training formats: Online, and Computer-based. Classroom. On-the-job. Mentoring, and Coaching. Learning from other team members.

3. Team-Building Activities: Help in team development. Activities could include group lunches or an evening away from work in a social environment. Reward and recognize individual work efforts.
Team Development Life Cycle

4. Ground Rules: Help set performance and other expectations by the team members. Early commitment to clear guidelines decreases misunderstandings and increase productivity. All project team members share responsibility for enforcing the rules once they are established.
9.3.2 Develop Project Team: Tools & Techniques 5. Co-Location: Team members are places at the same location (War Room). It generally helps facilitate team-building by having people working together. While co-location is considered a good strategy, the use of virtual teams is sometimes unavoidable.

6. Recognition and Rewards: It is part of the Develop Human Resource Plan. To help with cohesiveness, by including rewards that all on the project can win, not just a certain person or a few.
9.3.2 Develop Project Team: Tools & Techniques 7. Personnel Assessment Tools:
These tools help project managers assess the team preferences, aspirations, how they process information, how they make decisions, and how they prefer to interact with people. Various tools are available such as attitudinal surveys, specific assessments, structured interviews, ability tests, and focus groups. These tools can provide improved understanding, trust, commitment, and communications among team members.
9.3.3 Develop Project Team: Outputs

1.Team Performance Assessments: The evaluation may include: Improvement in skills. Improvements in competencies that help the team perform better as a team. Reduced staff turnover rate. Increased team cohesiveness. 2.Enterprise Environmental Factors (UPDATE).
9.4 Manage Project Team
Is the process of: Tracking team member performance. Providing feedback. Resolving issues. Managing changes to optimize project performance. It requires a variety of management skills to create high-performance teams.
9.4.1 Manage Project Team: Inputs

1.Human Resource Management Plan.
2.Project Staff Assignments.

3.Team Performance Assessment. 4. Issue Log. 5.Work Performance Reports. 6.Organizational Process Assets.
9.4.2 Manage Project Team: Tools & Techniques

1. Observation and Conversation: Used to monitor work being accomplished, plus their attitude on the project. 2. Project Performance Appraisals: Used to evaluate team members performance. They can be formal or informal. Is sometimes called 360 degree feedback because the feedback comes from all around the team members including the member under review himself / herself.

3. Conflict Management: Helps raise productivity and enhance working relationships. Common sources of can be: Scheduling Project priorities. Resource. Technical Opinions.
Conflict Resolution Techniques

Problem Solving (confrontation) Directly addresses disagreements this method is considered to be a win-win, should be the first choice. Compromising (bargaining) Both parties must give up something. Smoothing Emphasizes on commonalties keeps the atmosphere friendly.
Conflict Resolution Techniques

Collaborating Involves incorporating multiple ideas and viewpoints from people with different perspectives. Withdrawal (avoidance) Retreating from actual or potential disagreements. Forcing Exerts one's viewpoint at the potential expense of another party, it provides resolution but is considered to be a win-lose.

4. Interpersonal Skills: Are keys to working with team members as needed to maximize team performance. Vital interpersonal skills : Leadership. Influencing. Effective decision making.
Power of Project Manger

Legitimate (Formal) Power :
The power is based on position.

Reward Power : Stems from the ability to reward. Expert Power : The power comes from being the technical expert.
Referent Power:
Is based on the person liking the individual. Punishment Power: Comes from the ability to penalize.
9.4.3 Manage Project Team: Outputs

1.Change requests
2.Project management plan updates 3. Project Document Update.
4.Enterprise environmental factors updates

5.Organizational process assets updates
Motivational Theories
Maslows Hierarchy of Needs
A Satisfied need is no longer a motivation!!
Herzberg Hygiene Factor

Herzberg had two (2) main areas for workspace success: Hygiene Factors: Focus mainly on areas associated with workplace (safe work environment, steady pay, and stable job). Motivational Factors: Non financial characteristics of work (opportunity to improve, do more, education, and responsibility) Money does not create motivation.
McClellands theory
Resolves around three (3) aspects: Achievement: Being successful. Power: Influencing others.
Affiliation: Belonging.
McGregors Theory X & Theory Y

Theory X : Management assumed employees ARE lazy and hate work. Employees will avoid work Employees are only after $$ Managers blame & punish Managers job is to structure and energize employees.
Theory Y : Employees enjoy their physical and mental work. Employees MIGHT BE ambitious & self motivated Managers assume that if given the right conditions, people will DO WELL, which is THE MOTIVE.
Expectancy Theory
The employee work a great deal on the project and assumes that the reward will be relative to the amount of effort or perceived effort. This assumption can usually be quite a disappointment for those believing they will be greatly rewarded when the project is done.
Question No : 1
You are the project manager of the PUY Project. This project requires a chemical engineer for seven months of the project although there are no available chemical engineers within your department. This is an example of which of the following? A. Organizational interfaces B. Staffing requirements C. Contractor requirements D. Resource constraints
Question No : 2
You are the project manager for the LMG Project. Your project will have several human resource issues that must be coordinated and approved by the union. Which of the following statements is correct about this scenario? A. The union is considered a resource constraint. B. The union is considered a management constraint. C. The union is considered a project stakeholder. D. The union is considered a project team member.
Question No : 3
Management has requested that you create a chart depicting all of the project resource needs and the associated activities. Management is looking for which type of chart? A. A roles chart B. A roles matrix C. A roles and responsibilities matrix D. A Gantt chart
Question No : 4
Which problem-solving technique is the best for most project management situations? A. Confronting B. Compromising C. Forcing D. Avoidance
Question No : 5
Mike is the project manager for a project with a very tight schedule. The project is running late and Mike feels that he does not have time to consider all the possible solutions that two team members are in disagreement over. Mike quickly decides to go with the team member with the largest amount of seniority. This is an example of which of the following? A. Problem solving B. Compromising C. Forcing D. Withdrawal
Project Communication Management
Miscommunication
Communication Activities
Internal External Vertical Horizontal Formal Informal Written and Oral Verbal and Non-verbal
Communications Skills
listening actively and effectively, Questioning, probing ideas and situations to ensure better understanding, Educating to increase teams knowledge so that they can be more effective. Fact-finding to identify or confirm information, Persuading a person or organization to perform an action. Negotiating to achieve mutually acceptable agreements between parties. Resolving conflict to prevent disruptive impacts.
Communication Types and Methods
Formal Written: charter, plans, long distance Formal verbal : Speeches, Press conferences Informal Written: emails, memos Informal verbal: meetings, conversations
10. Communication Management

Planning Executing Monitoring
10.1
10.2
10.3
10.1 Plan Communication Management

10.1 Plan Communication

Is the process of: Developing an appropriate approach and plan for project communications. Based on stakeholders information needs and requirements, and available organizational assets. Key criteria here is: What information they need? When its needed? In what format?
10.1 Plan Communication
10.1.2 Plan Communication: Tools & Techniques
1. Communication Requirements Analysis: Factors in the communication requirements to ensure they are properly addressed in the Communication Management Plan. This analysis can include: Organization Charts. Responsibility Assignment Matrix [RAM]. Logistical needs. Internal and external information requirements.

Communications is a complex part of any project. The more people involved in a project, the more communication channels among them. The formula is: Number of communication channels =
N * (N-1) / 2
Where N is the number of people on the project.
Example
A Project Manager has a team of 6 working on the project. During a certain phase of the project, 2 new members have been added to the project. How many channels were added when the new members joined ?
N Original = 7 Channels Original = 7 * 6 / 2 = 21 N New= 9 Channels New= 9 * 8 / 2 = 36 Added channels = 36 21 = 15 channel

2. Communication Technology: Distributes project information per the requirements in the Communication Management Plan. Variables that influence the use of the technology could be: The importance of the information needed. The use of the technology infrastructure. Staffing levels. Project length. Project team culture.

3. Communication Models: Are used to establish how communication will be encoded, decoded and what the medium of the message will be.
Message
Encode
sender Noise medium Noise
decode
receiver
decode
Feedback- message
encode

Key components of a basic model of communication include: Encode - to translate thoughts or ideas into a language that is understood by others Message - output of encoding Medium - method used to convey the message Noise - anything that interferes with the transmission and understanding of the message Decode - translate the message back into meaningful thoughts or ideas
4. Communication methods Interactive communications Push communications Pull communications
5. Meetings.
10.1.3 Plan Communication: Outputs 1. Communications Management Plan: The plan defines: Communication needs of the stakeholders. Communication format. Communications frequency. The plan helps the PM do: Communication infrastructure for distributing information. Report performance on the project. Deal with communication issues that arise on the project.
10.2 Manage Communication
Is the process of:

Ensuring that the information communicated has been appropriately generated, received and understood. Techniques for effective communications management: Sender-receiver models. Choice of media. Writing style. Meeting management techniques. Presentation techniques. Facilitation techniques. Listening techniques.
10.2.2 Manage Communication: Tools & Techniques

1. Communication technology 2. Communication models 3. Communication methods 4. Information management systems 5. Performance reporting Analysis of past performance. Analysis of project forecasts (including time and cost). Current status of risks and issues. Work completed during the period. Work to be completed in the next period. Summary of changes approved in the period.
10.2.3 Manage Communication: Outputs
1. Project communications
The activities that are required for information to be created, distributed, received, acknowledged, and understood.
2. Project management plan updates 3. Project documents updates 4. Organizational process assets updates
10.3 Control Communications

Is the process of: Monitoring and controlling communications throughout the entire Project life cycle to ensure the information needs of the project stakeholders are met.
1. Work performance information 2. Change requests 3. Project management plan updates 4. Project documents updates 5. Organizational process assets updates
Question No : 1
Of the following, which one is not an example of formal communications? A. Presentations to groups B. conversations C. Contractual agreements D. Presentations to management
Question No : 2
You are the project manager for the LKH Project. Management has requested that you create a document detailing what information will be expected from stakeholders and to whom that information will be disseminated. Management is asking for which one of the following? A. Roles and responsibilities matrix B. Scope Management Plan C. Communications Management Plan D. Communications worksheet
Question No : 3
You are the project manager for the JGI Project. You have 32 stakeholders on this project. How many communications channels do you have? A. Depends on the number of project team members. B. 496 C. 32 D. 1
Question No : 4
Which one of the following is an output from controlling communications? A. Trend analysis B. EVM C. Variance analysis D. Change requests
Project Risk Management
Objectives are to increase the probability and impact of positive events and decrease the probability and impact of negative events In the project A key overlying concept is consistency and proactively approach the risk on the project.
11. Risk Management

Planning
11.1 11.2 11.3
Monitoring
11.6
11.4 11.5
11.1 Plan Risk Management
11.1 Plan Risk Management Is the process of: Defining how to conduct risk management activities for a project. The PM and the team proactively plan how to identify, rank, and address risk and risk management. The companys risk management policies help define what the team will do on the project regarding risk and risk management.
11.1 Plan Risk Management
1. Analytical Techniques Analytical techniques are used to understand and define the overall risk management context of the project. Stakeholder risk profile analysis is performed to grade and qualify the project stakeholder risk appetite and tolerance. Risk scoring sheets, are used to provide a highlevel assessment of the risk exposure of the project.
1. Risk Management Plan Methodology: a guideline system for solving a problem, with specific components such as phases, tasks, methods, techniques and tools. Roles and Responsibilities Budgeting Timing Risk Categories Definition of Risk Probability and Impact Revised Stakeholders' Tolerance Reporting Formats Tracking Arch. Sherif Elwishahy, PMP
Risk Breakdown Structure
Probability & Impact Matrix
Probability & Impact Matrix

Impact Very Low 0.05 Low 0.10 Moderate 0.20 High 0.40 Very High 0.80
Probability Very High 90% .045 .035 .09 .07 .18 .14 .36 .28 .72 .56
High 70%
.025 Moderate 50% .015 Low 30% .01 Very Low 10 % Arch. Sherif Elwishahy, PMP .01 .02 .04 .08 .03 .06 .12 .24 .05 .10 .20 .40
Risk Tolerance
Risk tolerance for a person or organization can influence the project environment. There are three types of risk tolerance: Risk-Averse Is a mentality of risk avoidance. Risk-Neutral Is a middle ground mentality towards risk. Risk-Seeker Is a mentality of looking for risk,
11.2 Identify Risks
11.2 Identify Risks

Is the process of: The project Manager, team, and any key stakeholder determine which risks may affect the project and documenting their characteristics. These risks could be small impact risks with a low probability of happening, to large impact risks with a high probability of happening. The team could also use a predefined list from previous projects as a starting point for the project. When complete, the team moves any risks to Qualitative Risk Analysis. Or determine that they dont need to devote time to developing a response strategy.
11.2 Identify Risks
11.2.2 Identify Risks: Tools & Techniques

1. Documentation Reviews: Are done on a project to evaluate potential risk and trigger identification. One of the important documents to be revised is the WBS. 2. Information Gathering Techniques: This can include: Brainstorming. Delphi Technique. Interviewing. Root cause Identification
3. Checklist Analysis: Is useful for verification that things are done as planned.

4. Assumption Analysis.

5. Diagramming Techniques: Cause and Effect Diagram (Ishikawa Fishbone). System or Process Flow Charts. Influence Diagrams.

6. SWOT Analysis: Is done to perform a review of the project environment to see: Strengths Weakness Opportunities Threats 7. Expert Judgment.
11.2.3 Identify Risks: Outputs

1. Risk Register:
11.3 Perform Qualitative Risk Analysis


The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact Comes from evaluating a component (risk) of a project as high, medium, or low.
11.3.2 Perform Qualitative Risk Analysis: Tools & Techniques

1. Risk Probability and Impact Assessment: Helps show what is likely to happen on the project and the effects of it by applying it to a Probability and Impact Matrix. Severity of Risk Event (Risk Score) = Impact X Probability
Impact Probability
Very Low 0.05 Low 0.10 Moderate 0.20 High 0.40 Very High 0.80
Very High 90% High 70% Moderate 50% Low 30% Very Low 10 %
.045 .035 .025 .015 .01
.09 .07 .05 .03 .01
.18 .14 .10 .06 .02
.36 .28 .20 .12 .04
.72 .56 .40 .24 .08

2. Probability and Impact Matrix:
3. Risk Data Quality Assessment: Qualitative risk analysis requires accurate and unbiased data for it to be credible. It provides a technique to evaluate the degree to which the data about risks is useful for risk management. Involves examining the: Degree to which the risk is understood. Accuracy, reliability, and integrity of the risk data.

4. Risk Categorization: Is used to help group sources of risk and areas of project risk. Grouping risks by common root causes can result in developing effective risk responses. Categories can be based on: Source of the risk using the Risk Breakdown Structure. Areas of the project affected using the Work Breakdown Structure. Other categories like project phases.

5. Risk Urgency Assessment: Review risk requiring near-term responses.
6. Expert Judgment: Is a key to assess the probability and impact of each risk. Experts with relevant experience of: Similar Projects. Business Areas. Experts bias needs to be taken into consideration here.
11.4 Perform Quantitative Risk Analysis

Is the process of: Numerically analyzing the effect of identified risks on overall project objectives. Quantitative Risk Analysis breaks down risks from a high, medium, and low ranking to actual numerical values and probabilities of occurrence. Risks that are higher in probability and impact are more likely to be evaluated via quantitative risk analysis.
11.4.2 Perform Quantitative Risk Analysis: Tools & Techniques 1. Date Gathering and Representation Techniques: Interviewing Probability Distributions
11.4.2 Perform Quantitative Risk Analysis: Tools & Techniques
2. Quantitative Risk Analysis and Modeling Techniques: Commonly used techniques in Quantitative Risk Analysis include: Sensitivity Analysis. Expected Monetary Value Analysis (EMV). Decision Tree Analysis.

Sensitivity Analysis: A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. such as the effect that changes in interest rates will have on a bond's price.
EMV (Expected Monetary Value): Is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen. Decision tree analysis: Is usually structured using a decision tree diagram that describes a situation under consideration.
Case Study
FFP Contract Value
Per Day Penalty for delay Self Execute 80% chance the cost is $ 80,000
$ 100,000
$ 1,000
20% chance the cost is

Chance the project is on time Chance the project is delayed 2 days Out source
$ 90,000
95 % 5%
60% chance the cost is

40 % chance the cost is Chance the project is on time Chance the project is delayed 20 days
$ 70,000
$ 80,000 80 % 20 %
Case Study
Self Exec. Or Out Source
EVM = 22000 $ The decision to out source the contract

Modeling & Simulation: Is using a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives. Monte Carlo is a mock-up technique that uses software to simulate project characteristics to determine possible outcome. Probability Tables.
11.4.3 Perform Quantitative Risk Analysis: Outputs
1.Project Documents Updates: Probabilistic analysis of the project. Probability of achieving cost and time objectives. Prioritized list of quantified risks. Trends in quantitative risk analysis results.
11.5 Plan Risk Response

Is the process of: Developing options and actions to enhance opportunities and to reduce threats to project objectives. This could be anything from doing nothing, to full implementation of a detailed risk response.
11.5.2 Plan Risk Response: Tools & Techniques

1. Strategies for Negative Risk or Threats:
Avoid
Changing the plan to eliminate a risk by avoiding the cause/source of risk

Transfer
Do it ourselves (do not subcontract)
Shift responsibility of risk consequence to another party

Mitigate
Buy/subcontract: move liabilities Use more qualified resources

Seeks to reduce the impact or probability of the risk event to an acceptable threshold

2. Strategies for Positive Risk or Opportunity:
Strategy Definition Involves sharing the responsibility (and benefits) of the risk with a third party to maximize an opportunity Involves taking steps to ensure the risk and success of the event or project. Involves taking steps to improve the size / capacity of the risk event by determining the key components of the risk and maximize those components. Example The technology company formed a partnership with a marketing company to launch a sales campaign. The new project had the best resources assigned to maximize the probability of success When sales were exceeding projections, the company hired more sales people to ensure that as many customers as possible knew of their products
Share
Exploit
Enhance

Strategy for Positive and Negative Risk: Acceptance: Involves tolerating the risk and dealing with it. It is a valid option if there are no other options available. Determining that if a union goes on strike, the project will have to stop until the strike is settled.

3. Contingent Response Strategy: Created to be used if only certain conditions are present. This could be created if conditions change on the project or to accommodate for worst case situations. Example: The team developed a contingency plan to add staff to the project if the important development milestones was missed.
Important Notes
Residual Risk is the amount of risk remaining after a risk response has been implemented. Secondary Risk is a jeopardy that results from the implementation of a risk response (side effects). Work around is a contingency put into action when a risk response and any backup plan dont work.
Important Notes
Contingency Reserves: Known Unknowns: for risk events that you know can occur on a project. Example: Something costing more than planned, taking longer than planned, or scope creep. Management Reserves: Unknown Unknowns: for risk events you cant forecast potentially occurring on a project. Example: Natural disaster or terrorist attack.
11.6 Control Risks

11.6 Monitor & Control Risks

Is the process of: Implementing risk response plans. Tracking identified risks. Monitoring residual risks. Identifying new risks. Evaluating risk process effectiveness throughout the project. It can include verifying if project assumptions are still applicable.
11.6 Control Risks
11.6 Control Risks: Tools & Techniques

1. Risk Reassessment: Should go on throughout the project. Reevaluate the probability and impact of the identified risk. Monitor for any new risk. 2. Risk Audits: Are used for effectiveness. Periodic project Risk Reviews can help detect potential risk exposure.

3. Variance and Trend Analysis: Trends in projects execution should be reviewed using performance data. Earned value analysis and other trend analysis may be used for monitoring overall project performance. 4. Technical Performance Measurement: Helps verify if the project is performing compared to the planned standard.

5. Reserve Analysis: Analyze the amount of schedule or budget contingency reserve to the remaining risk on the project. 6. Meetings: Can be an agenda item at periodic status meetings.
11.6 Control Risks: Outputs
1. 2. 3. 4. 5.
Work performance information Change requests Project management plan updates Project documents updates Organizational process assets updates
Question No : 1
The customers of the project have requested additions to the project scope. The project manager brings notice that additional risk planning will need to be added to the project schedule. Why? A. The risk planning should always be the same amount of time as the activities required by the scope change. B. Risk planning should always occur whenever the scope is adjusted. C. Risk planning should only occur at the project managers discretion. D. The project manager is incorrect; risk planning does not need to happen at every change in the project.
Question No : 2
You are the project manager of the KLJH Project. This project will last two years and has 30 stakeholders. How often should risk identification take place? A. Once at the beginning of the project. B. Throughout the execution processes. C. Throughout the project. D. Once per project phase.
Question No : 3
You are the project manager for a project that will create a new and improved web site for your company. Currently, your company has over eight million users around the globe. You Would like to poll experts within your organization with a simple, anonymous form asking for any foreseeable risks with the design, structure, and intent of the web site. With the collected information, subsequent anonymous polls are submitted to the group of experts. This is an example of ____. A. Risk identification B. A trigger C. An anonymous trigger D. The Delphi Technique
Question No : 4
You have just been assigned as the project for a new telecommunications project that is entering the second phase of the project. There appear to be many risks on this project but no one has evaluated them to assess the range of possible project outcomes. What needs to be done? A. Plan risk management. B. Perform quantitative risk analysis. C. Plan risk responses. D. Monitor and control risks.
Question No : 5
The water sanitation project manager has determined the risks associated with handling certain chemicals are too high. He has decided to allow someone else to complete this portion of the project, and so has outsourced the handling and installation of the chemicals and filter equipment to an experienced contractor. This is an example of which of the following? A. Avoidance B. Acceptance C. Mitigation D. Transference
Project Procurement Management
12. Procurement Management

Planning
12.1
Executing
12.2
Monitoring
12.3
Closing
12.4
Includes the processes to purchase or acquire the products, services, needed from outside the project team to perform the work.
12.1 Plan Procurement Management

12.1 Plan Procurement Plan procurements is the process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers. Plan procurement process includes consideration of the risks involved with each make-or-buy decision.
12.1 Plan Procurement
1. Make-or-buy analysis A general management technique used to determine whether particular work can be best accomplished by the project team or must be purchased from outside sources.
Budget constraints may influence make-or-buy decisions, or purchase/lease decision.
Example Purchase investment cost is $2000, Daily cost is $40 and Daily Lease cost $240. How long will it take for the lease cost to be the same as the purchase cost? Solution:
2000 + 40 * X = 240 * X
2000=240*x-40*x
2000=(240-40)x X = 2000 / 200 = 10 days
Contracts: are a legally binding documents (formal agreement), should state all requirements.
Contract must be followed and everything provided in it must be done.
Any change must be written and formally controlled and approved by both parties.
Contracts mainly fall into one of following 4 Categories: Purchase Order (PO). Fixed Price (FP). Known as Lump Sum. Cost Reimbursement (CR). Time and Materials (TM) (T&M).
Fixed Price (FP)

Firm fixed price contracts (FFP ) The most commonly used contract type is the FFP. Any cost increase due to adverse performance is the responsibility of the seller. The buyer must precisely specify the product or services to be procured. Fixed price incentive fee contracts (FPIF ) It allows for deviation from performance, with financial incentives tied to achieving agreed to metrics. Under FPIF contracts, a price ceiling is set. Fixed price with economic price adjustment contracts (FB-EPA) Is used when the work required spans a period of years.
Cost-reimbursable contracts
Cost plus fixed fee contracts (CPFF) The seller is reimbursed for all allowable costs for performing the contract work. The seller receives a fixed fee payment calculated as a percentage of the initial estimated project costs. Cost plus award fee contracts (CPAF) The seller is reimbursed for all legitimate costs. The majority of the fee is earned based on the satisfaction of certain broad subjective performance criteria. Cost plus incentive fee contracts (CPIF) The seller is reimbursed for all allowable costs. The seller receives a predetermined incentive fee based upon achieving certain performance objectives.
Description
Description
Description
Example Cost Plus Incentive Fee

Given the data in the table calculate the total cost of the contract and the sellers total fee.
Target Cost Target Fee $200k $50k
Target Price
Sharing Ratio
$250k
60/40 $190k $290K
Actual Cost Solution: Ceiling Price Seller saved on cost. Cost savings = 200 190 = $10k Incentive = 40% * 10 = $4k Sellers total fees = 50 + 4 = $54k Final price = cost + fees = 190 + 54= $244k
1. Procurement Management Plan: A document that describes how the procurement process will be managed . It can include guidance to: Types of contracts to be used. Standardized procurement documents. Coordinating procurement with other project aspects. Risk Management issues. Managing multiple suppliers. Any constraints and assumptions that affects procurement. Identify prequalified sellers if any.
2. Procurement Statement Of Work The part of contract that describes what the seller will do for the buyer. Approaches to develop the Scope of Work in the contract, such as: Performance. Design. Functionality.
3. Make-or-buy decisions. 4. Procurement Documents: Used to solicit proposals from prospective sellers. Buyer and seller organizations ensure that nondisclosure agreements are approved and accepted before disclosing any project specific intellectual property information to the other party.
5. Source Selection Criteria: Sometimes included as part of the procurement solicitation documents. May include: Overall or life-cycle cost. Technical Capability. Risk. Warranty. Financial Capacity. Production Capacity and interest. Business size and type. Past performance of sellers. Intellectual property rights.
12.2 Conduct Procurement
Is the process of: Obtaining sellers responses. Selecting a seller. Award a contract. The overall process can be repeated. A short list of qualified sellers can be established based on preliminary proposal.
12.2.2 Conduct Procurement: Tools & Techniques

1. Bidder Conferences: It is a meeting during which companies considering
bidding on a project can ask a buyer any questions

and get clarification on any potential issue before creation of proposal.
2. Proposal Evaluation Techniques: A formal evaluation review process will be defined by the buyers procurement policies. It is usually done by a previously defined weighted criteria. The evaluation committee will make their selection for approval by management.

2. Proposal Evaluation Techniques:

3. Independent Estimates: Are used to help validate what a project should cost. These estimates could be created from within the company or by an outside source. Sellers offers are evaluated against this estimate for guidance.
4. Expert Judgment: Will often be required to assess the inputs to and outputs from this process. Can be used to evaluate offers or proposals made by sellers.
5. Advertisement : Placing advertisements in general-circulation publications, such as newspapers, or in specialty publications, such as journals. 6. Analytical Techniques.
7. Procurement Negotiations : PMI considers this is a partnership contract rather than a supplier agreement. PMI requests a Win / Win situation from any contract. Involves clarification and mutual agreement on the structure and requirements of the contract, prior to the signing of the contract.
12.3 Control Procurement
12.3 Administer Procurement Is the process of: Managing procurement relationships. Monitoring contract performance. Making changes and corrections as needed.
many organizations treat contract administration as a

function separate from the project organization.
12.3 Control Procurement
12.3.2 Control Procurement: Tools & Techniques
1. Contract Change Control System: Defines the procedures for how the contract may be changed, is part of Integrated Change Control. The process for changing the contract includes: Paper work. Tracking system. Dispute resolution procedures. Procedures for getting the changes approved within the performing organization.
2. Procurement Performance Reviews: Is a structured review of the sellers progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. 3. Inspections and Audits: Are performed as the contract is executing. To ensure the appropriate work and quality of work is being completed per the terms of the contract. If we identify any weaknesses in the sellers work proper corrective actions must be taken.
4. Performance Reporting: Provides management with information about how effectively the seller is achieving the contractual objectives. 5. Payment System: The system must include the appropriate reviews and approvals by the project management team.
6. Claims Administration: They are those requested changes where the buyer and seller cannot agree on compensation for the change, or cannot agree that a change has even occurred. Can be invoked prior to or after contract closure. 7. Records Management System: Is part of the Project Management Information System. It is used to ensure that appropriate contract-related records are created, communicated, and archived.
12.4 Close Procurement

Is the process of: Complete each project procurement. Verification that all work and deliverables were acceptable. Formal Acceptance should be achieved.
12.4.2 Close Procurement: Tools & Techniques
1. Procurement Audits: Structured reviews of the procurement process, from procurement planning through contract administration Are used to determine success and failure of the procurement process for this project. Lessons can be applied to this project and others within the organization.
12.4.2 Close Procurement: Tools & Techniques
2. Procurements Negotiations: The final equitable settlement of all outstanding issues, claims, and disputes by negotiation is a primary goal. Alternative Dispute Resolution [ADR] including mediation or arbitration may be explored. When all else fails, litigation in courts is the least desirable option.
3. Records Management System:
Question No : 1
Bonnie is the project manager for the HGH Construction Project. She has contracted a portion of the project to the ABC Construction Company. Bonnie has offered a bonus to ABC if they complete their portion of the work by August 30. This is an example of which one of the following? A. Project requirement B. Project incentive C. Project goal D. Fixed price contract
Question No : 2
Sammy is the project manager of the DSA Project. He is considering proposals and contracts presented by vendors for a portion of the project work. Of the following, which contract is least dangerous to the DSA Project? A. Cost plus fixed fee B. Cost plus percentage of costs C. Cost plus incentive fee D. Fixed price
Question No : 3
Martha is the project manager of the MNB Project. She wants a vendor to offer her one price to do all of the detailed work. Martha is looking for which type of document? A. RFP B. RFI C. Proposal D. IFB
Question No : 4
Mary is the project manager of JHG Project. She has created a Statement of Work (SOW) for a vendor. For Marys SOW to be a legal contract, what must be included? A. Affidavit of agreement B. Signatures of both parties agreeing to SOW C. Signature of vendor D. Signature of Mary
Question No : 5
You are completing the closeout of a project to design a warehouse in Columbus, Ohio. The contract is a cost plus incentive fee contract. The target costs are $300,000, with a 10 percent target profit. However, the project came in at $275,000. The incentive split is 80/20. How much is the total contract cost?? A. $300,000 B. $275,000 C. $310,000 D. $330,000
Project Stakeholder Management
Project Stakeholder Management

Includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project.
Analyze stakeholder expectations and their

impact on the project. Focuses on continuous communication with stakeholders to understand their needs and expectations.
13. Stakeholder Management

Initiating Planning
13.1
13.2
Executing
13.3
Monitoring
13.4
13.1 Identify Stakeholders

The process of: Identifying the people, groups, or organizations that could impact or be impacted by the project. Analyzing and documenting relevant information regarding their interests, involvement, influence, and potential impact on project success.
13.1.2 Identify Stakeholders: tools and techniques

1. Stakeholder Analysis: Stakeholder analysis follows the steps described below: Identify all potential project stakeholders and relevant information. Analyze the potential impact or support each stakeholder could generate. Assess how key stakeholders are likely to react or respond in various situations.
13.1.2 Identify Stakeholders: tools and techniques
Power/Interest Grid with Stakeholders

13.1.3 Identify Stakeholders: outputs

1. Stakeholder Register: This contains all details related to the identified stakeholders including, but not limited to: Identification information: Name, organizational position, location, role in the project, contact information. Assessment information: Major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest. Stakeholder classification: Internal/external, supporter/neutral/resistor, etc.
13.2 Plan Stakeholder Management

is the process of: Developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle. Based on the analysis of their needs, interests, and potential impact on project success.
13.2.2 Plan Stakeholder management :
Tools & Techniques

3. Analytical Techniques The current engagement level of all stakeholders is compared to the planned engagement levels. The engagement level of the stakeholders is classified to: Unaware: Unaware of project and potential impacts. Resistant: Aware of project and potential impacts and resistant to change. Neutral: Aware of project yet neither supportive nor resistant. Supportive: Aware of project and potential impacts and supportive to change. Leading: Aware of project and potential impacts and actively engaged in ensuring the projects success.
13.2.2 Plan Stakeholder management : Tools & Techniques
Stakeholders Engagement Assessment Matrix
1. Stakeholder management plan: Desired and current engagement levels of key stakeholders. Scope and impact of change to stakeholders. Identified interrelationships between stakeholders. Stakeholder communication requirements. Information to be distributed to stakeholders. Reason for the distribution of that information and the expected impact to stakeholder engagement. Time frame and frequency for the distribution information. Method for updating and refining the stakeholder management plan as the project progresses and develops.
13.3 Manage Stakeholder Engagement
is the process of: Communicating and working with stakeholders to meet their needs/expectations. Address issues as they occur. Foster appropriate stakeholder engagement in project activities throughout the project life cycle.
1. Communication Methods. 2. Interpersonal Skills: The project manager applies interpersonal skills to manage stakeholders expectations. For example: Building trust, Resolving conflict, Active listening, and Overcoming resistance to change.
3. Management Skills: The project manager applies management skills to coordinate and harmonize the group toward accomplishing the project objectives. For example: Facilitate consensus toward project objectives. Influence people to support the project. Negotiate agreements to satisfy the project needs. Modify organizational behavior to accept the project outcomes.
13.4 Control Stakeholder Engagement

13.4 Control Stakeholder Engagement Is the process of: Monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders. The key benefit of this process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities.
13.4 Control Stakeholder Engagement
Question No : 1
Information in the stakeholder register should be: A. Accessible only to the project manager B. Available to the project manager and the PMO staff C. Available to all stakeholders and team members D. Shared with others at the discretion of the project manager
Question No : 2
The degree to which a particular stakeholder may be able to positively or negatively affect a project is his/her : A. Level of engagement B. Level of interest C. Level of commitment D. Level of influence
Question No : 3
The key objective of stakeholder management is A. Communication B. Coordination C. Satisfaction D. Relationships
Question No : 4
The stakeholder register is an input to which of the following processes: A. Plan risk management and collect requirements B. Perform integrated change control and plan communication management C. Plan quality management and perform quality assurance D. Identify risks and develop project charter
Question No : 5
A stakeholders belief about or mental picture of the future is a(n): A. Requirement B. Heuristic C. Expectation D. Constraint
Professional & Social Responsibility
Professional & Social Responsibility

Project Management Professional Code Of Conduct: RESPONSIBILITY RESPECT FAIRNESS HONESTY
Responsibility Ownership of Decisions and Actions.
Make decisions based on the best interest of the company and the team. Make sure the sponsor knows of any gaps in your qualifications before accepting the assignment. Do what you say you will do. Acknowledge your own errors. Respect confidentiality requirements. Uphold law. Report unethical behavior to management. Report violations of PMIs code of ethics when you have factual proof.
Respect
The appropriate treatment of others
Maintain an attitude of mutual cooperation. Respect cultural differences. Do not gossip or say things that could damage another persons reputation. Engage in good faith negotiations. Respect others. Be direct in dealing with conflict. Do not use your power to influence others for your own personal benefit.
Fairness
Being objective
Act impartially without favoritism. Continuously look for conflicts of interest and disclose them. Do not discriminate against others. Honor your duty of loyalty to those companies and organizations you are affiliated with. Do not use your position for personal or business gain.
Honesty
Understanding the truth
Try to understand the truth. Be truthful in all communications. Make sure the information you are using or sending out is truthful. Work to create an environment where others tell the truth. Do not deceive others.
Question No : 1
You are the project manager of the JKN Project. The project customer has requested that you inflate your cost estimates by 25 percent. He reports that his Management always reduces the cost of the estimates so this is the only method to get the monies needed to complete the project. Which of the following is the best response to this situation? A. Do as the customer asked to ensure the project requirements can be met by adding the increase as a contingency reserve. B. Do as the customer asked to ensure the project requirements can be met by adding the increase across each task. C. Do as the customer asked by creating an estimate for the customer management and another for the actual project implementation. D. Complete an accurate estimate of the project. In addition, create a risk assessment on why the project budget would be inadequate.
Question No : 2
You are the project manager for the BNH Project. This project takes place in a different county than where you are from. The project leader from this country presents a team of workers that are only from his family. You should do which one of the following? A. Reject the team leaders recommendations and assemble your own project team. B. Review the rsum and qualifications of the proposed project team before approving the team. C. Determine if the countrys traditions include hiring from the immediate family before hiring from outside the family. D. Replace the project leader with an impartial project leader.
Question No : 3
You are about to begin negotiations on a new project that is to take place in another country. Which of the following should be your guide on what business practices are allowed and discouraged? A. The project charter B. The project plan C. Company policies and procedures D. The PMP code of conduct
Question No : 4
You are the project manager of the PMH Project. You have been contracted to design the placement of several pieces of equipment. You have completed the project scope and are ready to pass the work over to the installer. The installer begins to schedule you to help with the installation of the equipment. You should: A. Help the installer place the equipment according to the design documents. B. Help the installer place the equipment as the customer sees fits. C. Refuse to help the installer since the project scope has been completed. D. Help the installer place the equipment, but insist that the quality control be governed by your design specifications.
Question No : 5
You are a project manager within an organization that completes technical projects for other entities. You have plans to leave your company within the next month to launch your own consulting businesswhich will compete with your current employer. Your company is currently working on a large proposal for a government contract that your new company could also benefit from. What should you do? A. Resign from your current job and bid against your employer to get the contract. B. Decline to participate due to a conflict of interest. C. Help your employer prepare the proposal. D. Inform your employer that you will be leaving their company within a month and it would be inappropriate for you to work on the current proposal.

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Arch.

Sherif El-wishahy, PMP

Identify personal areas of competency and weakness

Project Management Institute

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

About the Exam

Project Management Introduction

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

The Project Manager

Arch. Sherif Elwishahy, PMP

Project Managers Areas of Expertise

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Projects and Strategic Planning

Project management office (PMO)

Ongoing and repetitive

Resources temporary upon-need basis

Organizational Influences & Project Life Cycle

Organizational Influences on Project Management

Arch. Sherif Elwishahy, PMP

Organizational Influences on Project Management

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Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Weak Matrix Organization

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Balanced Matrix Organization

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Strong Matrix Organization

Manager of Project Managers

Arch. Sherif Elwishahy, PMP

Functional Functional Balanced Mgr. Mgr. Not Dedicated Project Lead /

Mostly Dedicated Not Dedicated Dedicated

Project Project or Program Manager Program or Project Manager Manager

Organizational Process Assets

Organizational Process Assets

Arch. Sherif Elwishahy, PMP

Enterprise Environmental Factors

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Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Arch. Sherif Elwishahy, PMP

Project Life Cycle

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Characteristics of the Project Life Cycle

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Characteristics of the Project Life Cycle

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Arch. Sherif Elwishahy, PMP

Predictive Life Cycles

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Iterative and Incremental Life Cycles

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Adaptive Life Cycles

Arch. Sherif Elwishahy, PMP

Project Management Processes