Professional Documents
Culture Documents
Pmi Project Management Professional PMP Certification Study Guide PDF
Pmi Project Management Professional PMP Certification Study Guide PDF
Professional (PMP)
Certification Study Guide
PMI Certification Materials
• To assist PMI candidates for completing
the PMI certification exam administered by
the Project Management Institute
• Content is from “A Guide To The Project
Management Body Of Knowledge”
(PMBOK)
• www.pmi.org
Recurring Themes
• Historical Records – need to collect and use for planning,
estimating and risk
• Kickoff meetings are important
• Work Breakdown Structures
• Do not introduce benefits that are not stated in
requirements
• Needs of all stakeholders should be taken into account
during all projects
• Team Members must be involved in project planning
• Project Mangers must be pro-active
Chapter 1 – Introduction
• Project – temporary endeavor undertaken to
create a unique product or service
• Has a definite beginning and end and
interrelated activities
• Programs adopt new set of objectives and
continue to work; projects cease when declared
objectives have been attained
Chapter 1 – Introduction
• Projects are unique – characteristics are
progressively elaborated
– Progressively: proceeding in steps
– Elaborated: worked with care and detail
• Scope of project should remain constant
even as characteristics are “progressively
elaborated”
Chapter 1 - Introduction
• Project Management: the application of
knowledge, skills, tools and techniques to project
activities in order to meet or exceed stakeholder
needs and expectations from a defined project –
balancing the following:
– Scope, time, cost, and quality
– Stakeholders’ expectations
– Requirements (needs) vs. unidentified requirements
(expectations)
Chapter 1 - Introduction
• Programs are groups of projects managed in a
coordinated way to obtain benefits not available
from managing the projects individually
• Most programs have elements of ongoing
operations
– Series of repetitive or cyclical undertakings
• Projects are often divided into “subprojects” for
more manageability
– Often contracted out to external organizations
Chapter 2 – Project Management
Context
• Project Phases are marked by the
completion of a deliverable
– Tangible, verifiable work product
– Review of deliverables and approval/denial
are “phase exits, stage gates, or kill points”
• Phases are collected into the Project Life
Cycle
– Set of defined work procedures to establish
management control
Chapter 2 – Project Management
Context
• Project Life Cycle defines:
– Technical work performed in each phase
– Who is involved in each phase
• Project Phases can overlap – “Fast Tracking”
• Common Characteristics of Project Life Cycles:
– Cost and Staffing levels are low at start and move higher
towards the end
– Probability of successfully completing project is low at beginning,
higher towards the end as project continues
– Stakeholder influence is high at the beginning and progressively
lowers as project continues
Chapter 2 – Project Management
Context
• Stakeholders: individuals and organizations who
are actively involved in the project
– Often have conflicting expectations and objectives
– In general, differences should be resolved in favor of
the customer – individual(s) or organization(s) that will
use the outcome of the project
– Stakeholder management is a proactive task
• Project Mangers must determine all stakeholders and
incorporate their needs into the project
Chapter 2 – Project Management
Context
• Stakeholders are:
– Project Managers
– Customers
– Performing Organizations, owners
– Sponsor
– Team
– Internal/External
– End User
– Society, citizens
– Others: owner, funders, supplier, contractor
Chapter 2 – Project Management
Context
• Organizational Systems: Project based vs.
Non-Project Based
– Project Based – derive revenues from performing
projects for others (consultants,
contractors),”management by projects”
– Non-Project Based – seldom have management
systems designed to support project needs
(manufacturing, financial services)
Chapter 2 – Project Management
Context
• Organizational Cultures and Styles:
– Entrepreneurial firms more likely to adopt
highly participative Project Manager – accept
higher risk/reward
– Hierarchical firms less likely to adopt
participative Project Manager – take fewer
risks
Chapter 2 – Project Management
Context
• Organizational Structures
– Functional (classical) marked by identifiable
superiors. Staff grouped by specialty .
Perceived scope of project limited by function
(Engineering, HR). Typically have part-time
Project Manager
– Projectized Organization –blend functional
and projectized characteristics. Mix cross-
department personnel with full-time Project
Manger
Chapter 2 – Project Management
Context
• Project Management Skills
– General Business Management (consistently producing results
expected by stakeholders)
– Leading (establishing direction, aligning resources, motivating)
– Communicating (clear, unambiguous, and complete)
– Negotiating (conferring with others to reach an agreement)
– Problem Solving (definition and decision making)
• Distinguish causes and symptoms
• Identify viable solutions
– Influencing Organization (understanding power and politics)
Chapter 2 – Project Management
Context
• Socioeconomic Influences
– Standards – document approved that provides
common, repeated use, rules and guidelines
• Compliance is not mandatory
– Regulations – document that identifies products,
services or characteristics
• Compliance is mandatory
– Standards often become “de facto” regulations
– Internationalization
– Cultural Influences
Chapter 2 – Project Management
Context
• Organization Structure Pro’s and Con’s
– Projectized
• Efficient Organization – No “home”
• Loyalty – Lack of Professionalism
• Effective Communication – Duplication of functions, less
efficient resource usage
– Matrix
• Visible Objectives – not cost effective
• PM Control – More than 1 boss
• More support – More complex to control
• Utilize scarce resources – Tough resource allocation
• Information distribution – Competition of priorities
• Coordination – Policies & Procedures
• Home based – Potential for conflict
Chapter 2 – Project Management
Context
• Functional Organization
– Specialists – More emphasis on functions
– 1 supervisor – No career path in PM
Chapter 3 – Project Management
Processes
• Project Management requires active
management of Project Processes
– Series of actions that achieve a result
– Project Management Processes
• Describing and organizing the work
– Product-Oriented Processes
• Specifying and creating the product
Chapter 3 – Project Management
Processes
• Process Groups:
– Initiating processes: recognizing a project or phase
should begin
– Planning processes: devising and maintaining a
workable plan
– Executing processes: coordinating resources to
execute the plan
– Controlling processes: ensuring project objectives are
met; monitoring, correcting and measuring progress
– Closing processes: formalized acceptance
Chapter 3 – Project Management
Processes
• Process Groups are linked by the results each
produces
• Process Groups are overlapping activities with
various levels of intensity
• Process Group interactions cross phases –
“rolling wave planning”
– Provides details of work to complete current phase and
provide preliminary description of work for subsequent
phases
• Individual processes have inputs, tools and
techniques, and outputs (deliverables)
Chapter 3 – Project Management
Processes
• Initiating and Planning Processes
• Committing the organization to begin
– Initiation, High-level planning, Charter
• Amount of planning proportional to the scope of
the project – Core Planning
– Scope Planning – written statement
– Scope Definition – subdividing major deliverables into
more manageable units
– Activity Definition – determine specific tasks needed to
produce project deliverables
– Activity Sequencing – plotting dependencies
Chapter 3 – Project Management
Processes
• Core Planning (continued)
– Activity Duration Estimating – determine amount of work needed
to complete the activities
– Schedule Development – analyze activity sequences, duration,
and resource requirements
– Resource Planning – identify what and how many resources are
needed to perform the activities
– Cost Estimating – develop resource and total project costs
– Cost Budgeting – allocating project estimates to individual work
items
– Project Plan Development – taking results from other planning
processes into a collective document
Chapter 3 – Project Management
Processes
• Planning/Facilitating Processes – manage the
interaction among the planning processes
– Quality Planning – standards that are relevant to the
project and determining how to meet standards
– Organizational Planning – identify, document, and
assigning project roles and responsibilities
– Staff Acquisition – obtaining the human resources
– Communications Planning – determining rules and
reporting methods to stakeholders
Chapter 3 – Project Management
Processes
• Planning/Facilitating Processes (continued)
– Risk Identification – determining what is likely to affect
the project and documenting these risks
– Risk Quantification – evaluating risks and interactions
to access the possible project outcomes
– Risk Response Development – defining enhancement
steps and change control measures
– Procurement Planning – determining what to buy and
when
– Solicitation Planning – documenting product
requirements and identifying possible sources
Chapter 3 – Project Management
Processes
• Planning/Facilitating Processes (continued)
– Order of events:
• Scope Statement
• Create Project Team
• Work Breakdown Structure
• WBS dictionary
• Finalize the team
• Network Diagram
• Estimate Time and Cost
• Critical Path
• Schedule
• Budget
• Procurement Plan
• Quality Plan
• Risk Identification, quantification and response development
• Change Control Plan
• Communication Plan
• Management Plan
• Final Project Plan
• Project Plan Approval
• Kick off
Chapter 3 – Project Management
Processes
• Executing Processes
– Project Plan Execution – performing the activities
– Complete Tasks/Work Packages
– Information Distribution
– Scope Verification – acceptance of project scope
– Quality Assurance – evaluating overall project
performance on a regular basis; meeting standards
– Team Development – developing team and individual
skill sets to enhance the project
– Progress Meetings
Chapter 3 – Project Management
Processes
• Executing Processes (continued)
– Information Distribution – making project
information available in a timely manner
– Solicitation – obtaining quotes, bids,
proposals as appropriate
– Source Selection – deciding on appropriate
suppliers
– Contract Administration – managing vendor
relationships
Chapter 3 – Project Management
Processes
• Controlling Processes – needed to regularly
measure project performance and to adjust
project plan
• Take preventive actions in anticipation of
possible problems
– Change Control – coordinating changes across the
entire project plan
– Scope Change Control – controlling “scope creep”
– Schedule Control – adjusting time and project schedule
of activities
Chapter 3 – Project Management
Processes
• Controlling Processes (continued)
– Cost Control – managing project budget
– Quality Control – monitoring standards and
specific project results; eliminating causes of
unsatisfactory performance
– Performance Reporting – status, forecasting,
and progress reporting schedule
– Risk Response Control – responding to
changes in risk during the duration of the
project
Chapter 3 – Project Management
Processes
• Closing Processes
– 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
• Procurement Audits
• Product Verification
• Formal Acceptance
• Lessons Learned
• Update Records
• Archive Records
• Release Team
Chapter 3 – Project Management
Processes
• Overall Processes
– Influencing the organization
– Leading
– Problem Solving
– Negotiating
– Communicating
– Meetings
Chapter 3 – Project Management
Processes
• Project Selection Techniques
– Comparative Approach (similar projects)
• Benefit measurement method
– Constrained Optimization (mathematical
approach)
• Key aspect of scope verification is
customer acceptance
• Only 26 % of projects succeed
Chapter 4 – Project Integration
Management
• Project Integration Management
– Ensures that the project processes are properly coordinated
– Tradeoffs between competing objectives and alternatives in order to meet
stakeholder approval
• Project Plan Development
• Project Plan Execution
• Overall Change Control
– These processes may occur repeatedly over the project duration
– Historical Records are needed to perform project management well, they are
inputs to continuous improvement
• Files
• Lessons Learned
• Actual Costs
• Time Estimates
• WBS
• Benchmarks
• Risks
Chapter 4 – Project Integration
Management
• Project Plan Development
– Uses outputs from other planning processes to create
consistent document to guide project execution and
control
– Iterated several times
– Documents planning assumptions
– Documents planning decisions that are chosen
– Facilitates communication
– Defines key management reviews
– Provides a baseline to track progress measurement
and project control
Chapter 4 – Project Integration
Management
• Project Plan Development Inputs
– Other planning outputs: primarily the planning process
outputs (WBS, base documents, application area
inputs)
– Historical information – verify assumptions, records of
past project performance
– Organizational policies – quality management,
personnel administration, Financial controls
– Constraints – factors that limit performance,
contractual provisions, budget
– Assumptions – risk factors
Chapter 4 – Project Integration
Management
• Tools & Techniques for Plan Development
– Project Planning Methodology – any structured
approach (software, templates, forms, start-up
meetings
– Stakeholder Skills & Knowledge – tap into plan
development; use expertise for reasonableness
– PMIS – Out of the box approach to support all project
aspects through closure
Chapter 4 – Project Integration
Management
• Project Plan Development Outputs
– Project Plan is a collection that changes over time as more
information about the project becomes available
– Baseline will change only in response to approved scope
change
– Project Plan includes some or all of the following:
• Project Charter
• Project Management approach or strategy
• Scope statement
• Work Breakdown Structure (WBS)
• Budget, schedule, risks
• Key Staff, Major Milestones
• Change Control Plan, Management and Communications Plan
Chapter 4 – Project Integration
Management
• Project Plan Components (continued)
• Cost Estimates, scheduled start dates and responsibility
assignments
• Performance measurement baselines
• Major milestones and target dates
• Required Staff
• Risks, constraints and assumptions
• Subsidiary management plans (scope, schedule)
• Open Issues
• Pending Decisions
Chapter 4 – Project Integration
Management
• Supporting Details to the Project Plan
– Outputs from planning processes
– Technical documentation
– Business requirements, specifications, and
designs
– Relevant standards
– Additional information not previously known
Chapter 4 – Project Integration
Management
• Project Plan Execution
– Primary process for carrying out the project
plan
– Most costly aspect of project management
– Direction of organizational resources and
interfaces
Chapter 4 – Project Integration
Management
• Project Plan Execution Inputs:
– Project Plan
– Supporting Detail
– Organizational Policies
– Corrective Action – anything to bring expected
performance in line with the project plan
Chapter 4 – Project Integration
Management
• Tools & Techniques for Plan Execution
– General Management Skills
– Product Skills and Knowledge – defined as part of
planning, provided by staffing
– Work Authorization System – formal procedure for
sanctioning work to ensure completion – written or
verbal authorization
– Status review meetings – regular exchanges of
information
– Project Management Information System
– Organizational Procedures
Chapter 4 – Project Integration
Management
• Project Plan Execution Outputs
– Work results – the outcome of activities
performed is fed into the performance
reporting process
– Change Requests – expand/shrink project
scope, modify costs and schedule estimates
Chapter 4 – Project Integration
Management
• Overall Change Control
– Influencing factors that create change to ensure beneficial
results; ensure that change is beneficial
– Determining that change has occurred
– Managing actual changes as they occur
• Evaluate impact of change
• Meet with team to discuss alternatives
• Meet with management to present decision
• Change control requires
– Maintaining integrity of performance measurement baselines
(project plan)
– Ensuring changes to scope are accurately recorded
– Coordinating changes across knowledge areas (scheduling, risk,
cost, quality, etc.)
– Determine all factors that control change and pro-actively
preventing the occurrence; evaluate the impact of change
Chapter 4 – Project Integration
Management
• Inputs to Change Control
– Project Plan – baseline performance
– Performance Reports – issue tracking, risk
management
– Change Requests – orally or written,
externally or internally initiates, legally
mandated or optional
Chapter 4 – Project Integration
Management
• Change Control Tools & Techniques
– All Changes must be evaluated before a decision can
be reached
– Change Control System – collection of formal
procedures, paperwork, tracking systems, approval
levels
– Change Control Board – decision making authority
– Configuration Management – documented procedure
to apply technical and administrative direction
• ID and document functional and physical characteristics
• Control changes to these characteristics
• Record and report change and implementation status
• Audit items and system to verify requirements
Chapter 4 – Project Integration
Management
• Change Control Tools & Techniques
– Performance Measurement – earned value, plan
variance analysis
– Additional Planning – revised cost estimates, modify
activity sequences, plan adjustments
– Project Management Information System
– Change Control System may have
• Change Control Plan
• Change Control Board
• Change Control Procedures, Corrective Action plans
• Performance Statistics, Reports, Change forms
• Specification reviews, Demonstrations, Testing, Meetings
– Configuration Management
Chapter 4 – Project Integration
Management
• Change Control Outputs
– Project Plan Updates
– Corrective Actions
– Lessons Learned – variance causes and
reasoning documented for historical purposes
Chapter 4 – Project Integration
Management
• Configuration Management
– Rigorous Change Management as it relates to scope
• Subset of the change control system
• Work Authorization System
– Controls “gold plating”; defines what task is/is not
• Meetings
– Most are inefficient; keep minutes
– Status can be determined without meeting
Chapter 4 – Project Integration
Management
• Lessons Learned
– Project is not complete until a Lessons Learned is
completed
– What have we done, how can we do it better
• Technical Aspects of the project
• Project Management (WBS, plans, etc.)
• Overall Management (communications, leadership)
• Best to have whole team complete and made available
• Also called “Post – Mortem”
Chapter 4 – Project Integration
Management
• Integration is a result of need for
communication within a project
• Primary responsibility to decide what
changes are necessary is Management
• Project Managers must pro-actively define
and solve problems before reporting to
superiors
Chapter 5 – Project Scope
Management
• Project Scope Management
– Processes required to ensure that the project includes
all, and only, work required
– Defining what “is/is not” included in the project
– Project scope – work that must be done – measured
against project plan
– Product scope – features and functions included in the
product or service – measured against requirements
Chapter 5 – Project Scope
Management
• Initiation – process of formally recognizing that a
new project exists, or an existing project
continue to next phase
• Involves feasibility study, preliminary plan, or
equivalent analysis
• Authorized as a result of:
– Market Demand
– Business Need
– Customer Request
– Technological Advance
– Legal Requirement
Chapter 5 – Project Scope
Management
• Initiation Inputs:
– Product Description – characteristics of the
product/service that the project was to create
• Less detail in early phases, more comprehensive in latter
• Relationship between product/service and business need
• Should support later project planning
• Initial product description is usually provided by the buyer
– Strategic Plan – supportive of the organization's goals
Chapter 5 – Project Scope
Management
• Initiation Inputs (continued)
– Project Selection Criteria – defined in terms of
the product and covers range of management
concerns (finance, market)
– Historical Information – results of previous
project decisions and performance should be
considered
Chapter 5 – Project Scope
Management
• Tools & Techniques for Initiation
– Project Selection Methods:
• Benefit measurement models – comparative approaches,
scoring models, economic models
– Murder Boards
– Peer Review
– Scoring Models
– Economic Models
– Benefits compared to costs
• Constrained operation models – programming mathematical
– Linear Programming
– Integer Programming
– Dynamic Programming
– Multi-objective programming
Chapter 5 – Project Scope
Management
• Tools & Techniques for Initiation
– Project Selection Methods:
• Decision models – generalized and sophisticated techniques
– Expert judgment
• Business Units with specialized skills
• Consultant
• Professional and Technical Associations
• Industry Groups
• Delphi Technique – obtain expert opinions on technical
issues, scope of work and risks
– Keep expert’s identities anonymous
– Build consensus
Chapter 5 – Project Scope
Management
• Outputs from Initiation:
– Project Charter – formally recognizes project, created
by senior manager, includes:
• Business need/Business Case
• Product description & title
• Signed contract
• Project Manager Identification & Authority level
• Senior Management approval
• Project’s Goals and Objectives -
• Constraints – factors that limit project management team’s
options
• Assumptions – factors that are considered true for planning
purposes. Involve a degree of risk
Chapter 5 – Project Scope
Management
• Scope Planning – process of developing a
written statement as basis for future decisions
– Criteria to determine if the project or phase is
successful
• Scope Planning Inputs:
– Product description
– Project Charter
– Constraints
– Assumptions
Chapter 5 – Project Scope
Management
• Scope Planning Tools & Techniques
– Product Analysis - - developing a better understanding
of the product of the project
– Cost/Benefit Analysis – estimating tangible/intangible
costs and returns of various project alternatives and
using financial measures (R.O.I.) to assess desirability
– Alternatives Identification – generate different
approaches to the project; “brainstorming”
– Expert Judgment
Chapter 5 – Project Scope
Management
• Scope Planning Outputs
– Scope Statement – documented basis for making
project decisions and confirming understanding among
stakeholders. Includes:
• Project justification – business need, evaluating future trade-
offs
• Project Product – summary of project description
• Project Deliverables – list of summary of delivery items
marking completion of the project
• Project Objectives – quantifiable criteria met for success.
Addresses cost, schedule and metrics – unqualified
objectives indicate high risk (customer satisfaction)
Chapter 5 – Project Scope
Management
• Scope Planning Outputs (continued)
– Supporting detail – includes documentation of
all assumptions and constraints
– Scope Management Plan – how project scope
is managed, change control procedure,
expected stability, change identification and
classification
• Control what is/is not in the project; prevents
delivering “extra” benefits to the customer that were
not specified/required
Chapter 5 – Project Scope
Management
• Scope Definition – subdividing major
deliverables into smaller, manageable
components
– Improve accuracy of cost, time, and resource
estimates
– Define a baseline for performance measurement
– Clear responsibility assignments
– Critical to project success – reduces risk of higher cost,
redundancy, time delays, and poor productivity
– Defines “what” you are doing; WBS is the tool
Chapter 5 – Project Scope
Management
• Scope Definition Inputs:
– Scope Statement
– Constraints – consider contractual provisions
– Assumptions
– Other Planning Outputs
– Historical Information
Chapter 5 – Project Scope
Management
• Scope Definition Tools & Techniques
– Work Breakdown Structure – templates from previous
projects
– Decomposition – subdividing major deliverables into
manageable components:
• Major elements – project deliverables and project
management approach
• Decide cost and duration estimates are appropriate at level
of detail
• Constituent elements – tangible verifiable results to enable
performance management, how the work will be
accomplished
• Verify correctness of decomposition
– All items necessary and sufficient?
– Clearly and completely defined?
– Appropriately scheduled, budgeted, assigned?
Chapter 5 – Project Scope
Management
• Scope Definition Outputs
– Work Breakdown Structure (WBS) – a deliverable-
oriented grouping of project assignments that
organizes and defines the scope of the project
• Each descending level represents further detail; smaller and
more manageable pieces
• Each item is assigned a unique identifier collectively known
as “code of accounts”
• Work element descriptions included in a WBS dictionary
(work, schedule and planning information)
• Other formats:
– Contractual WBS – seller provides the buyer
– Organizational (OBS) – work elements to specific org. units
– Resource (RBS) – work elements to individuals
– Bill of Materials (BOM) – hierarchical view of physical resources
– Project (PBS) – similar to WBS
Chapter 5 – Project Scope
Management
• Scope Definition Outputs
– Work Breakdown Structure (WBS)
• First Level is commonly the same at the Project Life Cycle
(requirements, design, coding, testing, conversion and operation)
• First level is completed before the project is broken down further
• Each level of the WBS is a smaller segment of level above
• Work toward the project deliverables
• Break down project into tasks that
– Are realistically and confidently estimable
– Cannot be logically divided further
– Can be completed quickly (under 80 hours rule of thumb)
– Have a meaningful conclusion and deliverable
– Can be completed without interruption
• Provides foundation for all project planning and control
Chapter 5 – Project Scope
Management
• Scope Definition Outputs
– Work Breakdown Structure (WBS) - Benefits
• Prevent work slippage
• Project team understands how their tasks fit into the overall project
and their impact upon the project
• Facilitates communication and cooperation between project team
and stakeholders
• Helps prevent changes
• Focuses team experience into what needs to be done – results in
higher quality
• Basis and proof for estimating staff, cost and time
• Gets team buy-in, role identification
• Graphical picture of the project hierarchy
• Identifies all tasks, project foundation
Chapter 5 – Project Scope
Management
• WBS phrases
– Graphical hierarchy of the project
– Identifies all tasks
– Foundation of the project
– Very important
– Forces thought of all aspects of the project
– Can be re-used for other projects
Chapter 5 – Project Scope
Management
• Scope Definition Outputs
– Work Breakdown Structure (WBS) – Dictionary
• Designed to control what work is done and when
• Also known as a task description
• Puts boundary on what is included in a task and what is not included
Chapter 5 – Project Scope
Management
• Scope Verification Inputs
– Work results – partially/completed deliverables, costs
to date
– Product documentation – description available for
review (requirements)
• Scope Verification Tools & Techniques
– Inspection – measuring, examining, testing to
determine if results conform to requirements
• Scope Verification Outputs
– Formal acceptance – documentation identifying client
and stakeholder approval, customer acceptance of
efforts
Chapter 5 – Project Scope
Management
• Scope Change Control:
– Influencing factors to ensure that changes are
beneficial
– Determining scope change has occurred
– Managing changes when they occur
– Thoroughly integrated with other control
processes
Chapter 5 – Project Scope
Management
• Scope Change Control Inputs:
– Work Breakdown Structure
– Performance Reports- issues reported
– Change Requests – expansion/shrink of
scope derived from :
• External events (government regulations)
• Scope definition errors of product or project
• Value adding change – new technology
– Scope Management Plan
Chapter 5 – Project Scope
Management
• Scope Change Control Tools & Techniques
– Scope Change Control System – defines procedures
how scope change can occur
• All paperwork, tracking systems, approval levels
• Integrated with overall change control procedures
– Performance Measurement – determine what is
causing variances and corrective actions
– Additional Planning
Chapter 5 – Project Scope
Management
• Scope Change Control Outputs:
– Scope Changes – fed back through planning
processes, revised WBS
– Corrective Actions
– Lessons Learned – cause and reasoning for
variances documented for historical purposes
Chapter 5 – Project Scope
Management
• Management By Objectives (MBO)
– Philosophy that has 3 steps:
• Establish unambiguous and realistic objectives
• Periodically evaluate if objectives are being met
• Take corrective action
– Project Manager must know that if project is not aligned
or support corporate objectives, the project is likely to
lose resources, assistance and attention.
– MBO only works if management supports it
Chapter 6 – Project Time
Management
• Project Time Management
– Processes required to ensure timely
completion of the project
– No consensus concerning differences
between activities and tasks
– Activities seen as composed of tasks –most
common usage
– Other disciplines have tasks composed of
activities
Chapter 6 – Project Time
Management
• Activity Definition: identifying and
documenting specific activities to produce
project deliverables identified in the WBS
– Must be defined to meet the project objectives
Chapter 6 – Project Time
Management
• Activity Definition Inputs
– WBS – primary input
– Scope Statement – project justification &
project objectives
– Historical Information
– Constraints
– Assumptions
Chapter 6 – Project Time
Management
• Activity Definition Tools & Techniques
– Decomposition – outputs are expressed as
activities rather than deliverables
– Templates – reuse from previous projects
Chapter 6 – Project Time
Management
• Activity Definition Outputs
– Activity List – all to be performed; extension to the
WBS and includes description to ensure team
members understand work to be performed
– Supporting Detail – organized as needed and include
all assumptions and constraints
– WBS Updates – identify missing deliverables and
clarify deliverable descriptions. WBS updates often
called refinements; more likely using new technologies
in project
Chapter 6 – Project Time
Management
• Activity Sequencing – identifying and
documenting interactive dependencies
among activities. Support later
development of a realistic schedule
– Project Management software often used
Chapter 6 – Project Time
Management
• Activity Sequencing Inputs:
– Activity List
– Product Description – product characteristics often affect activity
sequencing
– Mandatory Sequencing – physical limitations, hard logic,
prototypes needed; inherent in nature of work being done
– Discretionary Dependencies – defined by project management
team; “best practices” or unusual aspects of project – soft logic,
preferred logic, preferential logic
– External Dependencies – relationship between project activities
and non-project activities (company policies, procurement, etc.)
– Constraints
– Assumptions
Chapter 6 – Project Time
Management
• Network Diagrams
– Shows how the project tasks will flow from beginning to end
– Proves how long the project will take to complete
– Takes project tasks from low levels of WBS and placing them
into their order of completion (beginning to end)
Chapter 6 – Project Time
Management
• Activity Sequencing Tools & Techniques
– Precedence Diagramming Method (PDM) –
constructing network diagram using nodes to represent
activities and arrows to indicate dependencies; also
called Activity On Node (AON)
– Most project management software uses
– Includes 4 types of dependencies:
• Finish to Start – “from” activity must finish before “to” activity can begin; most
commonly used
• Finish to Finish – “from” activity must finish before the next may finish
• Start to Start – “from” activity must start before next “to” activity can start
• Start to Finish – task must start before next activity can finish
– Use caution with last 3 techniques - logical relationships often not
consistently implemented with project management software
Chapter 6 – Project Time
Management
• Activity Sequencing Tools & Techniques
(continued)
– Arrow Diagramming Method (ADM) – uses
arrows to represent activities and connecting
at nodes to illustrate dependencies
• Also called Activity On Arrow (AOA)
• Only uses finish to start dependencies
• PERT and CPM only can be drawn using AOA
Chapter 6 – Project Time
Management
• Activity Sequencing Tools & Techniques
(continued)
– Conditional diagramming methods
• GERT (Graphical Evaluation and Review
Technique)
• System Dynamic Models
• Allow for non-sequential activities (loops) or
conditional branches – not provided by PDM or
ADM methods
Chapter 6 – Project Time
Management
• Activity Sequencing Tools & Techniques
(continued)
– Network Templates – standardized networks
can be used. Composed of subnets, or
fragnets
• Subnets are several nearly identical portions of a
network (floors on a building, clinical trials, program
modules)
• Useful for several identical processes (clinical trials,
programming modules).
Chapter 6 – Project Time
Management
• Activity Sequencing Outputs:
– Project Network Diagram – schematic display
of project activities and relationships
(dependencies). Should be accompanied by a
summary narrative that describes the diagram
approach
– Activity List Updates
Chapter 6 – Project Time
Management
• Activity Duration Estimating
– Involves assessing number of work periods
needed to complete identified activities
– Requires consideration of elapsed time,
calendars, weekends, and day of week work
starts
Chapter 6 – Project Time
Management
• Activity Duration Estimating Inputs:
– Activity Lists
– Constraints
– Assumptions
– Resource Requirements – amount of labor assigned to
activity
– Resource Capabilities – human and material
resources, expertise
– Historical Information
• Project Files, or records of previous project results
• Commercial Duration Estimates – useful when durations are
not driven by actual work (approval periods, material
resources)
• Project Team Knowledge
Chapter 6 – Project Time
Management
• Activity Duration Estimating Tools & Techniques
– Expert Judgment – guided by historical information
should be used whenever possible; high risk without
expertise avail.
– Simulation – using different sets of assumptions
(Monte Carlo Analysis) to drive multiple durations
– Analogous Estimating – “top down estimating” – use
actual, similar, previous known durations as basis for
future activity duration. Used when limited knowledge
is available. Form of expert judgment
Chapter 6 – Project Time
Management
• Activity Duration Outputs:
– Activity Duration Estimates – quantitative
assessments of work periods to complete an
activity. Should indicate a range +/- of
possible results
– Basis of Estimates – all assumptions should
be documented
– Activity List Updates
Chapter 6 – Project Time
Management
• Schedule Development
– Determining start and finish dates for project
activities
– Without realistic dates, project unlikely to be
finished as scheduled
– Schedule development process often iterates
as more information becomes available
(process inputs)
Chapter 6 – Project Time
Management
• Schedule Development Inputs:
– Project Network Diagram
– Activity Duration Estimates
– Resource Requirements
– Resource Pool Description – availability patterns;
shared resources are highly variable
– Calendars – define eligible work periods
• Project Calendars affect all resources
• Resource Calendars – affect specific resource pools or
individuals
Chapter 6 – Project Time
Management
• Schedule Development Inputs (continued):
– Constraints
• Imposed Dates – may be required
• Key events or milestones – are initially requested and
become expected during project
– Assumptions
– Lead and Lag Time – dependencies may specify time
in order to satisfy relationship (example – 2 weeks to
receive order)
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques
– Mathematical Analysis – calculating theoretical
early/late finish and start dates without regard for
resource pool limitations; indicate time periods which
activity should be scheduled given resource limits and
other constraints:
• Critical Path Method (CPM) – single early/late start and finish date for all
activities. Based on specified, sequential network and single duration
estimate. Calculates float to determine flexibility
• Graphical Evaluation and Review Technique (GERT) – probabilistic
treatment of network and activity duration estimates
• Program Evaluation and Review Technique (PERT)- sequential network and
weighted average duration to calculate project duration – differs from CPM
by using mean (expected value) instead of most-likely estimate in CPM
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques
– Critical Path Method: refers to estimating based on one time
estimate per activity
• One time estimate per task (Most Likely)
• Emphasis on controlling cost and leaving schedule flexible
• Drawn using AOA diagrams
• Can have dummy task
– PERT (Program Review and Estimating Technique)
• 3 Time estimates per activity
– Optimistic
– Pessimistic
– Most Likely
• Emphasis on meeting schedule, flexibility with costs
• Drawn on AOA diagrams
• Can have dummy tasks
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques
– Monte Carlo Analysis
• Uses a computer with PERT values and network diagram
• Tells
– Probability of completing a project on any specific day
– Probability of completing a project for any specific amount of
cost
– Probability of any task actually being on the critical path
– Overall Project Risk
• Suggests that Monte Carlo simulation will create a project
duration that is closer to reality than CPM or PERT
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques
(continued)
– Duration Compression – look to shorten project
schedule without affecting scope
• Crashing – cost and schedule trade-offs to determine
greatest amount of compression for least incremental cost –
often results in higher costs
• Fast Tracking – performing activities in parallel that normally
would be sequenced – often results in re-work and usually
increases risk
– Simulation
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques
(continued)
– Resource Leveling Heuristics – leveling resources that
apply to critical path activities a.k.a. “resource
constrained scheduling” – when limitation on quantity
of available resources; sometimes called “Resource
Based Method” – often increases project duration
– Project Management Software
Chapter 6 – Project Time
Management
• Schedule Development Tools & Techniques (continued)
– Project Manger’s role
• Provide the team with the necessary information to properly
estimate the task
• Complete a sanity check of the estimate
• Formulate a reserve
– Project Team should be involved; determine task estimates
• Historical Records
• Guesses
• Actual Costs
• Benchmarks
• CPM and PERT
Chapter 6 – Project Time
Management
• Schedule Development Tools &
Techniques
– Critical Path Method: longest path through a
network diagram and determines the earliest
completion of the project
– Proves how long the project will take
– Indicates tasks that need most monitoring
– Almost always have no slack
Chapter 6 – Project Time
Management
• Schedule Development Outputs:
– Project Schedule – includes planned start and finish
dates for each activity; remains preliminary until
resources assignments are approved. Usually in
following formats:
• Project Network Diagrams (with date information added) –
show logical and critical path activities
• Bar or Gantt charts – activity start and end dates, expected
durations
• Milestone Charts – identifies key deliverables and interfaces
• Time-scaled network diagrams – blend of project network
and bar charts
Chapter 6 – Project Time
Management
• Schedule Development Outputs (continued):
– Supporting Detail – all assumptions and constraints.
May also include:
• Resource requirement by time period (resource histogram)
• Alternative schedules (best/worst case)
• Schedule reserve/risk assessments
– Schedule Management Plan – how updates are
managed
– Resource requirement updates – leveling and activity
impact
Chapter 6 – Project Time
Management
• Schedule Control:
– Influencing factors which create schedule changes to
ensure changes are beneficial
– Determining that schedule has changed
– Managing actual changes as they occur
• Inputs to Schedule Control
– Project Schedule – baseline approved, measure
against project performance
– Performance Reports – planned dates met, issues
– Change Requests
– Schedule Management Plan
Chapter 6 – Project Time
Management
• Schedule Control Tools & Techniques
– Schedule Change Control System – defines
procedures for schedule changes, paperwork,
approval, tracking systems
– Performance Measurement – assess
magnitude of variations to baseline; determine
if corrective action is needed
– Additional Planning
– Project Management Software
Chapter 6 – Project Time
Management
• Schedule Control Outputs:
– Schedule Updates – any modifications,
stakeholder notification
• Revisions change scheduled start and finish dates –
generally in response to scope changes. “Re-
baselining” may be needed in drastic situations
– Corrective Action – re-align performance with
project plan
– Lessons Learned
Chapter 6 – Project Time
Management
• Key knowledge points not in PMBOK
– Need to know manual calculations of network
diagrams
• Created after project charter and WBS (task
estimates and dependencies are determined)
– Mandatory dependencies (Hard Logic) – inherent in
nature of work
– Discretionary dependencies (Soft Logic) – based on
experience, desire or results
– External dependencies – based on needs and desires of
organizations outside the project
Chapter 6 – Project Time
Management
• Methods to draw network diagrams
– Activity on Node (AON) or Precedence Diagramming
Method (PDM)
• Boxes represent tasks
• Arrows show task dependencies
• 4 types of task relationships
– Finish to Start (task must finish before next can start)
– Finish to Finish (task must finish before next can finish)
– Start to Start (task must start before next can start)
– Start to Finish (task must start before the next can finish)
• No dummy tasks used
Chapter 6 – Project Time
Management
• Methods to draw network diagrams
– Activity on Arrow (AOA or Arrow Diagramming Method
(ADM)
• Arrows used to represent tasks
• Only Finish to Start relationships are used
• May use dummy tasks (show dependencies)
• PERT and CPM estimating techniques can only be drawn
using AOA
– CPM (Critical Path Method) – estimating based on one time
estimate per activity (the most likely time estimate)
» Emphasizes controlling cost and allowing schedule
flexibility
» Can have dummy tasks
Chapter 6 – Project Time
Management
• Methods to draw network diagrams
– Activity on Arrow (AOA or Arrow Diagramming
Method (ADM) continued:
• PERT (Program Evaluation and Review technique)
– 3 time estimates per activity: Optimistic (O), Most Likely
(M), Pessimistic (P)
– Emphasizes meeting schedule, flexibility with cost
– Can have dummy tasks
Chapter 6 – Project Time
Management
• Methods to draw network diagrams
– PERT (Program Evaluation and Review technique)
– Estimating based on 3 formulas:
• PERT Duration: (P + 4M + O)/6
• Standard Task Deviation: (P – O)/6
• Task Variance:
[P – O]2
• Total project estimate: 6
– Add up all Optimistic, Most Likely and Pessimistic values of the critical
path tasks and apply P + 4M + O/6
• Total project variance (+/-):
– Add up the individual task variances and take the square root of the
value. Use the value as a +/- figure to compute the Optimistic and
Pessimistic values. The total project estimate will serve as the basis.
Chapter 6 – Project Time
Management
• Monte Carlo Simulation:
– Uses a computer with PERT values (P, M, O) and a
network diagram but does not use the PERT formula
– Indicates
• Probability of completing project on a specific day
• Probability of completing project for any specific amount of
cost
• Probability of any task actually being on critical path
• Overall project risk
Chapter 6 – Project Time
Management
• Estimating techniques in general:
– Should be performed by entire project team
• Project manager needs to provide information to allow team
to create estimates; sanity check; formulate reserve
– Estimates are:
• Guesses, Historical Records, Actual Costs, Benchmarks,
CPM, PERT
– Critical paths determines the earliest completion date and
identifies tasks that need monitoring
– Can be obtained by CPM, PERT and Monte Carlo estimating
techniques
Chapter 6 – Project Time
Management
• Key Definitions:
– Slack (Float): the amount of time a task can be delayed
without delaying the entire project. Tasks on critical
path have no slack.
• Slack is calculated by the difference between Early Start and
Late Start of a task
– Free Slack (Float): the amount of time a task can be delayed
without delaying the early start date of its successor
– Total Slack (Float): the amount of time a task can be delayed
without delaying the project completion date
– Lag: inserted waiting time between tasks
Chapter 6 – Project Time
Management
• General Comments:
– Projects can have more than 1 critical path (increases risk) and
can involve dummy tasks
– Negative float indicates that you are behind
– Resource Leveling involves possibly letting schedule and cost
slip
– Heuristics – just means “rule of thumb” e.g. 80/20 rule
– Schedules are calendar based – makes this different than a time
estimate
• Bar Chart a.k.a. Gantt chart (track progress, report to entire team
including stakeholders, control tool)
• Network Diagram (to show task inter-dependencies, show project
organization, basis for project control)
• Milestone chart (report to Senior management, shows major events)
Chapter 6 – Project Time
Management
• General Comments:
– To shorten project schedule examine the
critical path
• Crashing – add more resources to the critical path
tasks
– Usually results in increased cost
• Fast Tracking – performing tasks in parallel
– Can result in re-work and increased risk
– Best to select method that has least impact on
the project (is the importance on cost, risk or
schedule?)
Chapter 6 – Project Time
Management
• General Comments:
– Bar (Gantt) Charts
• Weak Planning Tool, effective progress and reporting tool
• Does not show interdependencies of tasks
• Does not help organize the project more effectively
– Network Diagrams (PERT, CPM, PDM)
• Shows task interdependencies
• Aids in effectively planning and organizing work
• Provides a basis for project control
– Milestone Charts
• Only shows major events
• Good for reporting to management and customer
– Flow Charts
• Depicts workflow and not commonly used for project management
Chapter 6 – Project Time
Management
• General Comments:
– Free Slack (Float) – amount of time a task can be delayed without delaying the
early start date of its successor
– Total Slack (Float) – amount of time a task can be delayed without delaying the
project completion date