PMP Project Management Professional Exam Study Guide

Contents 5 x 9 Process Chart Knowledge Areas and Process Groups PMI Process Input-Tools/Techniques-Output slides (ordered by
Knowledge Area) I-TT-O listing per PMBOK v4 Notes from PMBOK v4 and Heldman text **

Study Tools and Exercises

Formulas and Diagrams AOA/ADM Exercises (2) AON/PDM Exercises (3) 5 x 9 Process Chart Knowledge Areas and Process Groups General activity flow

** PMP Project Management Professional Exam STUDY GUIDE Fifth Edition, Kim Heldman, 2009, ISBN: 978-0470-45558-6

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PMI - Process Mapping Chart (PMBOK v4) Process Groups Knowledge Areas
6

Initiate

Planning

Execute

Monitor / Control
Monitor & Control Project Work Perform Integrated Change Control

Close

Integration

Develop Project Charter

Develop Project Management Plan

Direct & Manage Project Execution

Close Project (Phase)

Scope

Collect Requirements Define Scope Create WBS

Verify Scope Control Scope

Time

Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Control Schedule

Cost

Estimate Costs Determine Budget

Control Costs

Quality

Plan Quality

Perform Quality Assurance

Perform Quality Control

Human Resources

Develop Human Resources Plan

Acquire Project Team Develop Project Team Manage Project Team

Communications

Identify Stakeholders

Plan Communications

Distribute Information Manage Stakeholder Expectations

Report Performance

Risk

Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses

Monitor & Control Risks

Procurement

Plan Procurements

Conduct Procurements

Administer Procurements

Close Procurements

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2 processes in INITIATE

ALL KA's in PLAN

No HR in M/C

2 processes in CLOSE

Project Integration Management

Things to remember: Coordinating all aspects of the project plan PM assigned BEFORE planning starts (some time during initiation) PM and team must address every process to determine the level to which is applies to the project tailoring Links between process groups are often iterated plan feeds execute and changes
during execute feed back to plan for updates

Enterprise Environmental Factors (EEF): organizational structure, govt / industry

standards, infrastructure, exist human resources (skills), personnel admin, work authorization systems, stakeholder risk tolerances, communication channels, PMIS

Organizational Process Assets (OPA): process related assets plans, policies,

procedures, guidelines, lessons learned, historical info, templates, work instructions

SOW narrative description of products to be delivered business need, product scope,

strategic plan

Charter - purpose + measureable objectives + high level requirements and risks +

summary milestones and budget + approval metrics

REVIEW ANALYZE EVALUATE before RECOMMEND

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Opportunity cost sum of all opportunities missed by selecting a given project

Develop Project Charter

Inputs Project Statement of Work (SOW) Business Case Contract (from external customer) Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgement Outputs Project charter

Develops a document to formally authorize project. Documents initial requirements that satisfy stakeholder needs. PM assignment stated. Project selection Mathematical models linear, dynamic, non-linear programming, Benefit measurement Cost-Benefit Analysis costs to produce, market, support (BCR = Benefit Cost Ratio > 1 is best) Scoring Models weighted criteria evaluated for each project Cash flow analysis payback period, discounted cash flow (PV, FV), net present value (NPV), internal rate of return (IRR) NPV - cash inflows reinvested at cost of capital IRR - rate when NPV = 0 / cash inflows reinvested at IRR Payback LEAST precise / NPV most conservative / NPV and IRR = same conclusion Choose projects with HIGHEST IRR or HIGHEST NPV

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Develop Project Management Plan

Inputs Project Charter Outputs from planning processes Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgement Outputs Project Management Plan

Documents actions necessary to define, prepare, integrate, and coordinate all subsidiary plans Series of integrated processes progressively elaborated by updates and controlled through change management Scope, schedule, cost baselines = performance measurement baseline (for EVM) Project Management Plan components:
Baselines Schedule, Cost, Scope Subsidiary management plans scope, requirements, schedule, cost, process improvement, quality, HR, communications, risk, procurement

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Direct and Manage Project Execution

Inputs Project management plan Approved change requests Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment PMIS Outputs Deliverables Work performance information Change requests Project management plan updates Project documentation updates

Process of performing the work for the project large part of project budget expended during EXECUTION process group processes Includes implementing approved changes (from later M/C process of Perform Integrated Change Control) PMIS is an EFF, not OPA Change requests - corrective actions (get outcomes to align with plan), preventative actions (reduce impact of risk events), defect repair Work performance info schedule status and progress, status of deliverables, incurred costs, lessons learned includes procurements
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Monitor and Control Project Work

Inputs Project management plan Performance reports Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Outputs Change requests Project management plan updates Project documentation updates

Process of tracking, reviewing, and regulating progress of work monitoring ALL processes in Initiating, Planning, Execution, and Closing groups. Monitoring - collecting, measuring, distributing info, assessing measurements all to improve processes. Control - determining corrective or preventative actions or replanning and follow up Work authorization system tool gives formal clearance for project work to begin project work is assigned and committed via WAS

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Perform Integrated Change Control

Inputs Project management plan Work performance information Change requests Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Change control meetings Outputs Change request status updates Project management plan update Project document updates

Process of reviewing all change requests, approving / denying changes, incorporating changes into docs, OPAs, and PMP. Done from project initiation to completion. Changes can be requested by any stakeholder. PM has authority to approve some types CCB used for others. PMIS -> Configuration Mgmt -> Change control system Configuration control - specification of deliverables and process Change control - changes to project and product baselines NOTE: Corrective and preventive actions do not normally affect project baselines, only performance against those baselines. Changes to scope require rebaselining
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Close Project
Inputs Project management plan Accepted deliverables Organizational process assets Tools & Techniques Expert judgment Outputs Final product, service or result transfer Organizational process assets

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Process of gathering records and disseminating info to formalize acceptance of the product. Check completeness and accuracy, acceptance of stakeholders. Administrative closure Transfer products / results to next phase or production / operations Archive project / phase information (lessons learned) / financials Project endings - Addition (ops), Starvation (cut resources) , Integration (reassign resources), Extinction (successful end) Product verification determines whether all project work was completed correctly (per contract and stakeholders) performed during Closing process (Close Project and Close Procurement) Product documentation verified and accepted during Verify Scope Only customer or project sponsor can authorize closure of a project not PM, functional mgrs, or stakeholders
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Project Scope Management

Things to remember: Defining all the work and only the work for the project Define and control what IS and IS NOT in the project Product scope - features and functions of the product = WHAT Project scope - work to be completed to deliver product = HOW Scope baseline 1. project scope statement approved (signed) by stakeholders
product scope description product acceptance criteria deliverables exclusions constraints assumptions

2. WBS 3. WBS dictionary

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

Process of defining and documenting stakeholder needs - foundation of the WBS Requirements need to be elicited, analyzed, and recorded to permit measuring once project starts. COST, SCHEDULE, and QUALITY planning based on these requirements May have project (delivery dates, ) and product (technical, performance, ) requirements Group Creativity Brainstorm, Nominal (B+voting), Delphi (unbiased), Idea/Mind Mapping, Affinity Diagram (ideas sorted into groups) Requirements documentation how reqs meet business needs, (non)functional reqs, quality reqs, acceptance criteria, assumptions, organizational areas impacted. Signed by stakeholders
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Traceability matrix maps requirement to business need / objective

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Define Scope
Inputs Project charter Requirements documentation Organizational process assets Tools & Techniques Expert judgment Product analysis Alternatives identification Facilitated workshops Outputs Project scope statement Project document updates

Process of developing a detailed description of the project and product Product analysis techniques
Product breakdown / functional analysis Systems analysis Value analysis

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Create WBS
Inputs Project scope statement Requirements documentation Organizational process assets Tools & Techniques Decomposition Outputs WBS WBS dictionary Scope baseline Project Document updates

Process of subdividing (decomposition) deliverables and work into small, more manageable components Work packages lowest level of WBS cost, duration, responsibility assigned WBS represents all project and product work 100% rule - no resources are in WBS Rolling wave planning waiting for future deliverables to be better defined before trying to decompose WBS dictionary detailed description of tasks, code of accounts, responsible org, milestones, quality reqs, acceptance criteria, resources, cost estimates,
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Verify Scope
Inputs Project management plan Requirements documentation Requirements traceability matrix Validated deliverables Tools & Techniques Inspection Outputs Accepted deliverables Change requests Project document updates

Process of formalizing acceptance of completed deliverables reviewing with customer and obtaining formal sign off Scope verification for customer acceptance Control quality for deliverable correctness Control Quality usually done before Verify Scope, but may be in parallel Should Verify Scope even if project cancelled document degree of completion

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Control Scope
Inputs Project management plan Work performance information Requirements documentation Requirements traceability matrix Organizational process assets Tools & Techniques Variance analysis Outputs Work performance measurements Organizational process assets updates Change requests Project management plan updates Project document updates

Process of monitoring status of product and project scopes and managing changes to scope baseline Scope creep uncontrolled changes to project scope Work performance information progress of project, which deliverables are started, finished, ,
OUTPUT for Direct and Manage Project Execution, INPUT for almost all M/C processes

Work performance measurements activity metrics comparing actual to planned, OUTPUT for
Control Scope, Schedule and Cost processes, INPUT for Report Performance and Perform Quality Control

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Project Time Management

Things to remember: Processes to manage timely completion of the project Terminology: Schedule = schedule data + schedule model In planning can do all 5 activities define, sequence, estimate resources, estimate duration, and develop schedule as a single process by a single person in smaller projects Schedule management plan selects scheduling method (CPM, critical path, ), scheduling tool, format, control criteria Schedules Gantt (bar), activity list, network diagrams Schedule compression techniques:
Crashing reduce schedule by adding resources to critical path, decrease in scope. Always increases cost Fast tracking sequential activities done in parallel. May result in more errors and rework.

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Define Activities
Inputs Scope baseline Enterprise environmental factors Organizational process assets Tools & Techniques Decomposition Rolling wave planning Templates Expert judgment Outputs Activity list Activity attributes Milestone list

Process of identifying the actions needed to produce the deliverables Work packages (from WBS) are decomposed into smaller components called activities. Good practice - WBS uses nouns, Activities use verbs Rolling wave form of progressive elaboration planning near term work packages decomposed to activities, farther out still at milestone level Activity attributes include lead/lag, predecessor/successor, description, WBS id,

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Sequence Activities
Inputs Activity list Activity attributes Milestones list Project scope statement Organizational process assets Tools & Techniques Precedence diagramming method (PDM) Dependency determination Applying leads and lags Schedule network templates Outputs Project schedule network diagrams Project document updates

Process of identifying and documenting relationships between activities Dependencies - Mandatory (contracts, physical limits), Discretionary (team), External (govt, legal).
Discretionary create arbitrary float totals need to be reviewed when fast tracking

PDM = AON (Activity on node) 4 types of dependencies SS, SF, FS, FF

FS most used, SF rarely used GERT (Graphical Eval and Review Tech) allows conditions, branches, loops

ADM (Arrow diagramming method) = AOA (Activity on arrow) only FS, dummies Lead start of next task is earlier than end of current Lag start is delayed after finish
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Estimate Activity Resources

Inputs Activity list Activity attributes Resource calendars Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Alternatives analysis Published estimating data Bottom-up estimating Project management software Outputs Activity resource requirements Resource breakdown structure Project document updates

Process of estimating the type and quantity of material, people, equipment, or supplies for each activity. Bottom-up micro level / more accurate Top-down macro level / rough order of magnitude (ROM) AKA analogous RBS hierarchical listing of resources by category and type Activity resource requirements type and quantities of resources needed

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Estimate Activity Durations

Inputs Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Analogous estimating Parametric estimating Three-point estimates Reserve analysis Outputs Activity duration estimates Project document updates

Process of estimating the number of work periods needed to complete individual activities with the estimated resources. Progressively elaborated more accurate as project progresses Analogous similar project, gross value approach, uses historical info and expert judgment, less costly / less time consuming, less accurate Parametric statistical relationship to calculate estimate, multipliers ($ per sqft) 3 point (4M+O+P)/6 PERT estimate (Program Evaluation and Review Technique) Reserve analysis buffers, time reserve, accounts for schedule risk
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Develop Schedule
Inputs Activity list Activity attributes Project schedule network diagrams Activity resource requirements Resource calendars Activity duration estimates Project scope statement Enterprise environmental factors Organizational process assets Tools & Techniques Schedule network analysis Critical path method Critical chain method Resource leveling What-if scenario analysis Applying leads and lags Schedule compression Scheduling tool Outputs Project schedule Schedule baseline Schedule data Project document updates

Process of generating a schedule with planned dates for activities and milestones. Critical Path longest duration for project using forward and backward pass to calc early and late start / finish dates. Does NOT consider resource limits. Critical path zero float. Paired with resource leveling. (Free float = task float .. Total float = project float) Critical Chain accounts for resource limits. Critical chain - resource-constrained critical path
Project buffer added to CP Feeder buffers added to chains of dependent tasks where they tie into the critical path

Monte Carlo analysis simulation - duration distributions assigned for each activity to calculate a distribution for possible project completion dates
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Control Schedule
Inputs Project management plan Project schedule Work performance information Organizational process assets Tools & Techniques Performance reviews Variance analysis Project management software Resource leveling What-if scenario analysis Adjusting leads and lags Schedule compression Scheduling tool Outputs Work performance measurements Organizational process assets updates Change requests Project management plan updates Project document updates

Process of monitoring project status against the schedule baseline. Performance review analyze schedule performance Earned Value Mgmt (EVM) SV and SPI For Critical Path - all schedule variances will impact schedule For Critical Chain - compare buffer times (needed VS remaining)

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Project Cost Management

Things to remember: Processes for estimating, budgeting, and controlling costs of the project cost of resources needed to complete the project In planning can do both activities cost estimating and budgeting as a single process by a single person in smaller projects Cost management plan selects estimate accuracy, control thresholds (permitted variance), performance measurements Often financial performance predicting and analyzing done OUTSIDE the project

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Estimate Costs
Inputs Scope baseline Project schedule Human resource plan Risk register Enterprise environmental factors Organizational process assets Tools & Techniques Expert judgment Analogous estimating Parametric estimating Bottom-up estimating Three point estimate Reserve analysis Cost of quality Vendor bid analysis Project mgmt software Vendor bid analysis Outputs Activity cost estimates Basis of Estimates Project document updates

Process of estimating the monetary resources needed, including risks, make/buy, and trade-offs quantitative assessment. Progressively elaborated more accurate as project progresses Analogous similar project, uses historical info and expert judgment, less costly / less time consuming, less accurate Parametric statistical relationship to calculate estimate, multipliers ($ per sqft), more accurate 3 point (4M+O+P)/6 PERT estimate (Program Evaluation and Review Technique) Bottom-up micro level / more accurate (not used in initiating process group not enough info) Top-down macro level / rough order of magnitude (ROM)
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Determine Budget
Inputs Activity cost estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts Organizational process assets Tools & Techniques Cost aggregation Reserve analysis Expert judgment Historical relationships Funding limit reconciliation Outputs Cost performance baseline Project funding requirements Project document updates

Process of aggregating estimated costs to establish cost baseline Cost performance baseline time-phased budget S-curve, time vs cost

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Control Costs
Inputs Project management plan Project funding requirements Work performance information Organizational process assets Tools & Techniques Earned value measurement Forecasting To-complete performance index (TCPI) Performance reviews Variance analysis Project management software Outputs Work performance measurements Budget forecasts Organizational process assets updates Change requests Project management plan updates Project document updates

Process of monitoring status and updating budget analyze relationship between consumption of funds and physical work being accomplished Earned Value Management (EVM): most often used performance measurement method PV = PLANNED value budget amount EV = EARNED value calculated value of work performed (%) [ PV * %complete ] AC = ACTUAL costs cost incurred to date BAC = Budget at completion final total PV EAC = Estimate at completion forecast based on actual costs ETC = Estimate to complete forecast based on actuals
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Project Quality Management

Things to remember: Processes that determine quality policies, objectives, and responsibilities Quality VS Grade (High quality no defects / High grade many features)
Quality degree to which characteristics fulfill requirements Grade category assigned to products having same function

Precision VS Accuracy

(High precision tight cluster / High accuracy near true) Precision clustering of repeated measurements Accuracy closeness to the true value Standard approved by recognized body should be followed, not legally required Regulation mandatory, requires strict adherence

Standard VS Regulation Approaches to quality:

Crosby zero defects prevention do it right the first time Juran grades of quality fit for use quality by design Deming TQM 85% COQ is management problem Six Sigma measurement based strategy to eliminate defects Kaizen continuous improvement everyone involved

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Plan Quality
Inputs Scope baseline Stakeholder register Cost performance baseline Schedule baseline Risk register Enterprise environmental factors Organizational process assets Tools & Techniques Cost-Benefit analysis Cost of quality Benchmarking Design of experiments Statistical sampling Flowcharting Proprietary quality management methodologies Additional quality planning tools Outputs Quality management plan Quality metrics Quality checklists Process improvement plan Project document updates

Process of identifying quality requirements and standards for product / project and how compliance will be demonstrated. Cost of Quality cost of ALL quality efforts throughout product life cycle (not just project duration)
Conformance Prevention costs (preventing defects) Appraisal costs (examination) Nonconformance Failure internal rework, scrap external liability, returns, customer loss

Control charts stability of a process upper and lower specification and control limits. Typical CLs 3. Out of control outside SL or 7 consecutive points on same side of mean. Tool in all Quality processes.
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DOE statistical method to find factors of greatest effect on outcome, relationship between variables, optimum values for variables analyze several variables at one time

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Perform Quality Assurance

Inputs Project management plan Quality metrics Work performance information Quality control measurements Tools & Techniques Plan Quality and Perform Quality Control tools & techniques Quality audits Process analysis Outputs Organizational process asset updates Change requests Project management plan updates Project document updates

Process of auditing quality requirements and quality control measurements to ensure appropriate quality standards and metrics are used. Uses data collected during the control process. Focus correct and most efficient processes Quality metric operational definition what is being measured and how Enables continuous process improvement Quality audits structured, independent review for compliance. Look for ineffective and inefficient processes, confirm implementation of approved changes

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Perform Quality Control

Inputs Project management plan Quality metrics Quality checklists Work performance measurements Approved change requests Deliverables Organizational process assets Tools & Techniques
Cause-and-effect diagrams Control charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical sampling Inspection Approved change request review

Outputs Quality control measurements Validated changes Validated deliverables Organizational process asset updates Change requests Project management plan updates Project document updates

Process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. Focus accuracy of project results Tools:

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Cause and effect diagrams Ishikawa / fishbone Control charts upper / lower spec limits containing upper / lower control limits (3) OOC outside SL or 7 consecutive points on same side of mean Pareto chart - frequency of occurrence ordered histogram 80/20 rule Run charts similar to control charts, no limits shown, line graph Scatter diagram two variable (dep, indep) relationship, looking for correlation Inspection physical assessment (keeps defects from reaching customer) PREVENTION keeps defects from occurring
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Project Human Resource Management

Things to remember: Processes that organize, manage, and lead the project team Staffing management plan when and how resource needs will be met (acquisition, calendars, release, training, rewards, compliance, safety) Resource histogram depicts resource loading for a project Motivational theories:
Maslow hierarchy of needs (basic physical, safety, social, self-esteem, self-actualization) Herzberg Hygiene (pay, benefits, work env prevent dissatisfaction) and
Motivation (challenging work, advancement produce satisfaction) Expectancy theory (Vroom) expectation of a positive outcome drives motivation Achievement theory (McClelland) people motivated by achievement (need to succeed), power (influence over others), affiliation (social) Leaders (motivators) VS Managers (task-oriented) Theory X and Y - (Macgregor) (people inherently lazy) and (people want to do their best) Theory Z Ouchi employee loyalty jobs for life Contingency theory Theory Y and Hygiene people motivated to be competent and remain so

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Develop Human Resource Plan

Inputs Activity resource requirements Enterprise environmental factors Organizational process assets Tools & Techniques Organizational charts and position descriptions Networking Organizational theory Outputs Human resource plan

Process of identifying, documenting roles, responsibilities, skills, reporting relationships, and creating staffing management plan. Identify training needs, team-building techniques, recognition, compliance (labor contracts), safety
(hazards also in risk registry)

Charts: Hierarchical - traditional org chart OBS (relates to business), RBS (resource type, helps with accounting) Matrix Responsibility Assignment Matrix (RAM RACI = responsible for doing work, accountable for approving work (1 person), consult, inform)
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Acquire Project Team

Inputs Project management plan Enterprise environmental factors Organizational process assets Tools & Techniques Pre-assignment Negotiation Acquisition Virtual Teams Outputs Project staff assignments Resource calendars Project management plan updates

Process of confirming availability and obtaining the team EEFs availability, experience levels, interests, costs, abilities of resources Pre-assignment - may be defined in charter Acquisition - getting external sources (new employees, contractors) Virtual teams - rely heavily on good communications plans

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Develop Project Team

Inputs Project staff assignments Project management plan Resource calendars Tools & Techniques Interpersonal skills Training Team-building activities Ground rules Co-location Recognition and rewards Outputs Team performance assessments Enterprise environmental factors updates

Process of improving skills, team interaction, and team environment. Primary responsibility of PM improve skills, feelings of trust, cohesiveness of team Tools: soft skills (interpersonal), training, team-building, co-location, rewards 5 Team stages (Tuckman) forming (meeting), storming (starting work), norming (trusting), performing (interdependent, working smoothly), adjouning (disband)

Types of power reward (incentive), punishment (coersive), expert (earned, knowledgable), legitimate (position), referent (inferred) Key interpersonal skills leadership, influencing, effective decision making
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Manage Project Team

Inputs Project staff assignments Project management plan Team performance assessment Performance reports Organizational process assets Tools & Techniques Observation and conversation Project performance appraisals Conflict management Issue log Interpersonal skills Outputs Enterprise environmental factors Organizational process assets updates Change requests Project management plan updates

Process of tracking team member performance, providing feedback, resolving issues, managing changes . Key PM skills - communication, conflict management, negotiation, and leadership Performance report status of project against plan Performance appraisal feedback to team members roles, training, job performance 360 review Conflict resolution:

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forcing - one way - my way, permanent, win-lose WORST METHOD TO USE smoothing / accommodating - find some agreement, temporary, lose-lose withdrawing / avoidance - temporary, lose-lose, POSTPONES ANY DECISION compromise - some satisfaction, may be permanent, no win or lose confronting / problem solving - best, permanent, win-win collaborating concensus, may be permanent
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Project Communication Management

Things to remember: Processes that ensure timely and appropriate generation, collection, distribution, storage, retrieval, and disposition of information. PMs spend majority of time (90%) communicating Communication management plan provides what, how, when, why for project information dissemination Communication model:
Sender responsible for clarity and completeness of message and for confirming the message is understood correctly Receiver responsible for making sure information is received in its entirety, understood correctly, and acknowledged Acknowledgement message was received, not necessarily agreement Response receiver has decoded, understood, and is replying to message Encode (translate thoughts into language), decode (translate language to thoughts), medium (method used to convey message), noise (interference with transmission or understanding), message (encoded context)

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Identify Stakeholders
Inputs Project Charter Procurement documents Enterprise environmental factors Organizational process assets Tools & Techniques Stakeholder analysis Expert judgement Outputs Stakeholder register Stakeholder mgmt strategy

Process of identifying people / organizations impacted by project document interests, involvement, and influence and use to classify. Stakeholder analysis qualitative (surveys, questionnaires) and quantitative assessments to determine whose interests should be taken into account Power / Interest grids power (level of authority) VS interests (level of concern) low to high
(H,H) manage closely, (L,L) monitor, (H, L) satisfy, (L,H) inform

Power / Influence grids power (authority) VS influence (active level of involvement) Influence / Impact grids influence (active level of involvement) VS impact (ability to change project) Salience model 3 dimensions power, urgency, legitimacy
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Plan Communications
Inputs Stakeholder register Stakeholder management strategy Enterprise environmental factors Organizational process assets Tools & Techniques Communication requirements analysis Communications technology Communications models Communications methods Outputs Communication management plan Product document updates

Process of determining stakeholder info needs and defining communication approach Who needs what, when its needed, how given, and by whom Effective communications - info provided in right format, at right time, with right impact Efficient communications providing only the info needed Tightly linked with EEFs Communication channels = n(n-1)/2 Communication methods push (specifically sent), pull (allowed access), interactive (multidirectional)

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Distribute Information
Inputs Project management plan Performance reports Organizational process assets Tools & Techniques Communications methods Information distribution tools Outputs Organizational process assets updates

Process of making relevant info available to stakeholders in a timely manner PM time 90% spent communicating (written + verbal) Status review meetings not same as team meetings
PM facilitates, not technical, push type Review activities completed, starting, open Review issues new, open, closed

PM is responsible for producing lessons learned (professional obligation) Groups of 5 to 11 manageable, accurate decisions

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Manage Stakeholder Expectations

Inputs Stakeholder register Stakeholder management strategy Project management plan Issue log Change log Organizational process assets Tools & Techniques Communications methods Interpersonal skills Management skills Outputs Organizational process assets updates Change requests Project management plan updates Project document updates

Process of communicating with stakeholders to influence expectations, address concerns, resolve issues Increasing probability of project success PM is responsible for stakeholder expectations management Interpersonal skills building trust, resolving conflict, active listening, facilitating change Management skills presentation, negotiating, writing, and speaking

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Report Performance
Inputs Project management plan Work performance information Work performance measurements Budget forecasts Organizational process assets Tools & Techniques Variance analysis Forecasting methods Communication methods Reporting systems Outputs Performance reports Organizational process assets updates Change requests

Process of collecting and distributing performance info status reports, progress measurements, and forecasts. Analysis of baselines VS actual Variance analysis after-the-fact assessment of actual to baseline. Forecasting predicting future performance Time series uses historical data to estimate future (EVM, moving ave, extrapolation) Causal / econometric identify variables that affect outcome (regression) Judgmental intuitive, opinions, Delphi, surveys, probability Other simulation, probabilistic, ensemble

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Project Risk Management

Things to remember: Processes of conducting risk management planning, identification, analysis, response planning, and monitoring and control. Increase probability and impact of positive events and decrease probability and impact of negative events Risk uncertain event / condition that, if it occurs, has an effect of at least one objective either positive (opportunity) or negative (threat). Project risk is always in the future, if it has occurred, it becomes an issue
Residual risk expected to remain after a planned response Secondary risk arise as a result of implementing a risk response

Risk management plan determines how you will plan for risks, includes methods (how), roles / responsibilities (who), budgeting (how much), timing (when), risk categories (RBS Risk Breakdown Structure hierarchical), definitions of risk probability and impact. Risk categories technical (specs), organizational (resources), project mgmt (poor planning), quality, external (standards, force majeure - catastrophe)
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Plan Risk Management

Inputs Project scope statement Cost management plan Schedule management plan Communications management plan Enterprise environmental factors Organizational process assets Tools & Techniques Planning meetings and analysis Outputs Risk management plan

Process of defining how to conduct risk management activities should begin when project is conceived and be completed early during project planning. Define probability (potential: 0 1) and impact (consequences: 0 1) and use matrix to group into high, medium, low risk events Examples of risks:
Budget Hardware Schedules Software Scope / requirements Politics Technical issues Legal issues Personnel ProjMgmt

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Identify Risks
Inputs
Risk management plan Activity cost estimates Activity duration estimates Scope baseline Stakeholder register Cost management plan Schedule management plan Quality management plan Project documents Project management plan Enterprise environmental factors Organizational process assets

Tools & Techniques Documentation reviews Information gathering techniques Checklist analysis Assumptions analysis Diagramming SWOT analysis Expert judgment

Outputs Risk register

Process of determining which risks may affect project and documenting characteristics All project personnel should take part Info gathering brainstorming (complete list), Delphi (anonymous, unbiased), nominal group (b w/voting to rank items), interviewing, root cause analysis (identify and prevent) Diagramming - Cause and effect diagrams (Ishikawa / fishbone), flow charts, influence diagrams SWOT opportunities and threats arising from organizational strengths and weaknesses Risk register documents identified risks, potential responses, causes, thresholds

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Perform Qualitative Risk Analysis

Inputs Organizational process assets Project scope statement Risk management plan Risk register Tools & Techniques Risk probability & impact assessment Probability and impact matrix Risk data quality assessment Risk categorization Risk urgency assessment Expert judgment Outputs Risk register updates

Process of prioritizing risks for further analysis by probability of occurrence and impact Rapid and cost effective means of setting priorities for Plan Risk Responses can go directly to Plan Risk Responses and skip Perform Quantitative Risk Analysis Risks with low probability and impact ratings put on watchlist P / I matrix helps to classify risks as high, medium, low

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Perform Quantitative Risk Analysis

Inputs Risk register Risk management plan Cost management plan Schedule management plan Organizational process assets Tools & Techniques Data gathering and representation techniques Quantitative risk analysis and modeling techniques Expert judgment Outputs Risk register updates

Process of numerically analyzing the effect of identified risk on the project Can assign numerical rating to each risk may not be required to plan responses Data gathering interviewing (3-pt estimates), distributions (beta, triangle, uniform last resort) Analysis / modeling sensitivity (tornado diagram, CP change), expected monetary value (EMV) (prob * impact ($), statistical, decision tree), modeling / simulation (schedule and cost analysis, Monte Carlo prob dist calculated from iterations)

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Plan Risk Responses

Inputs Risk register Risk management plan Tools & Techniques Strategies for negative risk or threats Strategies for positive risk or opportunities Contingent response strategies Expert judgment Outputs Risk register updates Risk-related contract decisions Project management plan updates Project document updates

Process of developing options and actions to enhance opportunities and reduce threats Must be appropriate, cost effective, realistic, agreed on by all, timely, and owned by one person Negative risk strategies avoid (evade / eliminate), transfer (insurance), mitigate (reduce prob and/or impact), accept (passive no action, active contingency reserve) Positive risk strategies exploit (take advantage), share (like transfer), enhance (increase prob and/or impact), accept (passive no action, active contingency reserve) Contingency planning alternative responses, contingency reserves (time, money), fallback plans

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Monitor & Control Risks

Inputs Risk register Project management plan Work performance information Performance reports Tools & Techniques Risk reassessment Risk audits Variance and trend analysis Technical performance measurement Reserve analysis Status meetings Outputs Risk register updates Organizational process assets updates Change requests Project management plan updates Project document updates

Process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating process Evaluate risk responses, look for triggers, reassess assumptions, carry out responses and contingency plans, update OPAs (lessons learned) Workaround unplanned response to a negative risk event Risk audits examine and document effectiveness of risk responses Earned value analysis reflect trends and may indicate risks Status meetings should include risk management agenda item
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Project Procurement Management

Things to remember: Processes needed to purchase / acquire products from outside project team Includes contract management and change control needed to administer contracts or purchase orders issued by team. Project team is the BUYER Also includes administering contracts from outside (buyer) acquiring the project from performing organization (seller) Contract mutually binding agreement that obligates seller to provide products and obligates buyer to provide payment. Contract life cycle RRSA - requirement (SOW), requisition (RFP), solicitation
(responses), award RR (Plan procurement), SA (Conduct Procurement)

Procurement management plan how to manage procurements contract types, risks, lead times, make / buy decisions, prequalified sellers, metrics and seller evaluation process Procurement SOW objectives, description of work and support, specs for product, schedule, time period of service, work location developed from
scope baseline
20-Feb-10 49

Plan Procurements
Inputs
Scope baseline Requirements documentation Teaming agreements Risk register Risk-related contract decisions Activity resource requirements Project schedule Activity cost estimates Cost performance baseline Enterprise environmental factors Organizational process assets

Tools & Techniques Make-or-buy analysis Expert judgment Contract types

Outputs Procurement management plan Procurement statements of work Make-or-buy decisions Procurement documents Source selection criteria Change requests

Process of documenting purchase decisions, specifying approach, identifying potential sellers what to buy, how to buy it, how much is needed, when to acquire. Make-or-buy includes decisions to require insurance Contract types:
FP (or FFP) firm fixed price <- best for buyer FPIF fixed price plus incentive fee FPEPA fixed price plus econ price adjustment (inflation, commodity costs) T&M time and material <- win /win CPIF cost plus incentive <- win /win CPAF cost plus award fee (buyer discretion) CPFF cost plus fixed fee fee is the sellers profit CPF cost plus fee or CPPC cost plus % cost <- best for seller

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50

Conduct Procurements
Inputs Project management plan Procurement documents Source selection criteria Qualified seller list Seller proposals Project documents Make-or-buy decisions Teaming agreements Organization process assets Tools & Techniques Bidder conferences Proposal evaluation techniques Independent estimates Expert judgment Advertising Internet search Procurement negotiations Outputs Selected Sellers Procurement contract award Resource calendars Change requests Project management plan updates Project document updates

Process of obtaining seller responses, selecting a seller, awarding contract Scoring understanding need, cost, tech capability, risk, mgmt style, warranty, refs, IP Procurement documents flexible enough to allow seller suggestions for improvement RFP request for proposal suppliers states how they will do it and costs RFQ request for quote more standard products, service IFB invitation for bid narrower RFP RFI request for information query on technology or products available BID or QUOTATION price is deciding factor / PROPOSAL factors other than just price Contract mutual agreement (offer & acceptance), consideration ($$), legal purpose, legal capacity (age, ) Fait accompli thing already done negotiation distraction technique Procurement negotiations can be its own process with inputs and outputs
51

20-Feb-10

Administer Procurements
Inputs Procurement documents Project management plan Contract Performance reports Approved change requests Work performance information Tools & Techniques Contract change control system Procurement performance reviews Inspections and audits Performance reporting Payment systems Claims administration Record management system Outputs Procurement documentation Organizational process assets updates Change requests Project management plan updates

Process of managing relationships, monitoring contract performance and making changes Includes monitoring payments to the seller and reviewing performance For each seller, management processes applied to contractual relationships may be:
Direct and Manage Project Execution Report Performance Perform Quality Control Perform Integrated Change Control Monitor and Control Risks

Contested changes disputes, claims, appeals negotiate first, arbitrate second

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Close Procurements
Inputs Project management plan Procurement documentation Tools & Techniques Procurement audits Negotiated settlements Records management system Outputs Closed procurements Organizational process assets updates

Process of completing and settling each project procurement Product verification, administrative activities (finalizing open claims, updating records, archiving) Procurement audits reviewing the procurement process, gleaning lessons learned, done by buyer or seller Closed procurements formal notice that procurement is complete OPA updates lessons learned, historical info Close Project before Close Procurements (per earlier PMBOK)

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53

Study Tools and Exercises

Formulas and Diagrams AOA/ADM Exercises (2) AON/PDM Exercises (3) General process flow 5 x 9 Process Chart Knowledge Areas and Process Groups

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Formulas and diagrams: Time & Cost

ES Dur
Task

EF

LS

SL

LF

Diagramming notation LF LS = SL (slack) Forward pass early dates latest dates at intersections Backward pass late dates earliest dates at intersections CV = EV - AC CPI = EV / AC SV = EV - PV SPI = EV / PV
(positive is good) (greater than 1 is good) (positive is good) (greater than 1 is good)

Estimate types: ROM (+/-50%) Budgetary (+25% / -10%) Definitive (+/-10%)

Cost variance Cost performance index Schedule variance Schedule performance index EAC based on budgeted rate EAC based on budgeted rate EAC based on present CPI

earned - actual most critical EVM measure earned - planned

EAC = AC + btmupETC (new estimate old one no good) EAC = AC + (BAC EV) (predicts future ETC work @ budgeted rate) EAC = BAC / CPI (predicts future ETC work @ current rate)
BAC EV BAC EAC = AC + = CPI CPI

EAC based on CPI and SPI

EAC = AC + (BAC EV) (predicts firm schedule commitment) (CPI * SPI) ETC = EAC - AC ETC = (BAC - EV)

ETC based on budgeted rate ETC based on budgeted rate ETC based on present CPI

ETC = EAC AC = (AC + (BAC EV) ) AC = (BAC EV) ETC = (BAC EV) / CPI (past variance typical of future uses ETC @ current rate)
BAC BAC - EV ETC = EAC AC = AC = CPI CPI

(past variance not typical of future uses ETC @ budget rate)

To-Complete Performance Index

TCPI = (BAC EV) (BAC AC) VAC = BAC EAC FV = PV (1 + i) (N (N 1)) / 2

n

(projected CPI)

Variance at completion Time value of money Communication channels PERT 3-point estimate Standard deviation Ranges based on SDs 20-Feb-10

(positive is good) i = interest rate, n = number of compounding periods N = number of people

E = (4M + O + P) / 6 SD = (P O) / 6 +/- 1 SD = 68.9% confidence interval || +/- 2 SD = 95.4% || +/- 3 SD = 99.7% 55

AOA/ADM Exercise 1

Paint a House 1-2 1-3 3-2 3-5 2-4 4-6 5-4 6-7 Clean Up Prep Walls Tape Off Walls Paint Walls Buy Paint Buy Supplies 2 hours 1 hour 0 4 hours 2 hours 6 hours 0 2 hours

With the construction table above, build a network schedule.

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AOA/ADM Solution Exercise 1

2 2 2 4

6 6

2 7

1 1

3 4

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57

AOA/ADM Exercise 2

Calculate path durations, identify dummy activity, and identify critical path

3 2 3 0 1 3 2 5 4 2 5 4 7 4 4 6 8 6

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AOA/ADM Solution Exercise 2

4 Paths
1-2-3-6-8 = 14 1-2-4-3-6-8 = 17 1-2-4-5-6-8 = 20 1-2-4-5-7-8 = 18

Dummy path = 1-2-4-3-6-8 (4-3) Critical path = 1-2-4-5-6-8 = 20

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PDM Exercise 3
Activity a. Excavate b. Foundation c. Frame d. Electric e. Roof f. Brick g. Finish interior h. Finish exterior i. Landscape Immediate Preceding Activity -a b c c c d d h Duration (days) 5 2 12 9 5 8 10 7 5

Build a network schedule

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Solution to PDM/AON Exercise 3

ES Dur
Task

EF

Start

LS

SL

LF

XX

XX

XX

XX

XX

12
C - Frame

XX

A - Excavate

B - Foundation

XX

XX

XX

XX

XX

XX

XX

XX

XX XX 9 XX XX 5
E - Roof

XX

XX

8
F - Brick

XX

D - Electric

XX

XX

XX

XX

XX

XX

XX

XX

XX

XX

10

XX

XX

XX

G - Finish Interior

H Finish exterior

XX

XX

XX

XX XX

XX 5

XX XX

I - Landscape

XX

XX

XX End

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PDM/AON Exercise 4 Forward Pass

Work left to right, top to bottom Establish the first activity from the start node as an early start (ES) of 0 Add the ES + the task duration to identify the early finish (EF) Add any lag to the predecessors EF to identify the successors ES If there are multiple predecessors to a successor use the latest EF (the higher number) as the ES of the Successor

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Solution to PDM/AON Exercise 4

ES Dur
Task

EF

Start

LS

SL

LF

12
C - Frame

19

A - Excavate

B - Foundation

XX

XX

XX

XX

XX

XX

XX

XX

XX 19 9 28 19 5
E - Roof

24

19

8
F - Brick

27

D - Electric

XX NOTE: For simplified math, start with 0 and work through the network. 28 To determine ES and LS times, adjust by +1
G - Finish Interior

XX

XX

XX

XX

XX

XX

XX

XX

10

38

28

35

H Finish exterior

For example, the EARLY START date for Task D would be DAY 20 because Task C finishes at the end of DAY 19. The EARLY FINISH date for Task D would be DAY 28 (at the end of the day) no change

XX

XX

XX

XX 35

XX 5

XX 40

I - Landscape

XX

XX

XX End

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PDM/AON Exercise 5 Backward Pass

Work right to left, top to bottom Establish the Late Finish (LF) of the last activity from the finish node to be the same as the last activities EF (or the project finish date) Subtract the task duration from the LF to identify the late start (LS) Subtract any lag from the successors LS to identify the predecessors LF If there are multiple successors to a predecessor use the earliest LS (the smallest number) as the LF of the predecessor

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Solution to PDM/AON Exercise 5

ES Dur
Task

EF

Start
Free float - 0

LS

SL

LF

Free activity Total project

12
C - Frame

19

A - Excavate

B - Foundation

19 19 9 28 19 5
E - Roof

24

19

8
F - Brick

27

D - Electric

19 NOTE: For simplified math, start with 0 and work through the network. 28 To determine LS and ES times, adjust by +1
G - Finish Interior

28

35

16

40

32

13

40

Total float - 13

10

38

28

35

H Finish exterior

For example, the LATE START date for Task G would be DAY 31. ES would be DAY 29. The LATE FINISH date for Task G would be DAY 40 (at the end of the day) no change

30

40

28 35

0 5

35 40

I - Landscape
Free and total float - 2

35

40 End

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General flow of activities based on inputs and outputs of processes

Charter Stakeholders Requirements Scope Statement (deliverables, assumptions, constraints) WBS scope baseline (scope stmt, WBS, WBS dictionary) Activities Network Diagrams and Resources Durations Schedule schedule baseline Risks Costs Budget cost performance baseline Quality and Procurements

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PMI - Process Mapping Chart Process Groups Knowledge Areas

6

Initiate

Planning

Execute

Monitor / Control
Monitor & Control Project Work Perform Integrated Change Control

Close

Integration

Develop Project Charter

Develop Project Management Plan

Direct & Manage Project Execution

Close Project (Phase)

Scope

Collect Requirements Define Scope Create WBS

Verify Scope Control Scope

Time

Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Control Schedule

Cost

Estimate Costs Determine Budget

Control Costs

Quality

Plan Quality

Perform Quality Assurance

Perform Quality Control

Human Resources

Develop Human Resources Plan

Acquire Project Team Develop Project Team Manage Project Team

Communications

Identify Stakeholders

Plan Communications

Distribute Information Manage Stakeholder Expectations

Report Performance

Risk

Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses

Monitor & Control Risks

Procurement

Plan Procurements

Conduct Procurements

Administer Procurements

Close Procurements

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2 processes in INITIATE

ALL KA's in PLAN

No HR in M/C

2 processes in CLOSE

67

PMI - Process Mapping Chart Process Groups Knowledge Areas

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