2019 Easy PMP Module

PMP Exam Overview
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Actively involved 4
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pmp exam overview
Time schedule
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5 Days: 09:00 – 17:00
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PMP Exam Overview
Module 01
PMP EXAM® OVERVIEW
Easy PMP Exam Preparation
Course outline
PMP Exam Overview Project Quality Management
Project Management Framework Project Resources Management
Project Integration Management Project Communication Management
Project Scope Management Project Risk Management
Project Schedule Management Project Procurement Management
Project Stakeholder Management

Project Cost Management
Page 3
pmp exam overview Easy PMP Exam Preparation
Course agenda
Day 1 Day 2 Day 3 Day 4 Day 5
PMP Exam Project Project Project Project Risk

09:00 – 10:30
overview Integration Schedule Quality Management
10:30 – 10:45 nothing makes sense before coffee

Readiness Project Project Project Project
10:45 – 12:00
Assessment Integration Schedule Resources Procurement
12:00 – 13:00 nutrition replenishment & refill your energy

PM Project Scope Project Cost Project Exam
13:00 – 15:15
Framework Management Management Communication Simulation
200 questions
in 4 hours
15:15 – 15:30 give yourself a coffee break (13:00 – 17:00)
PM Process Project Scope Project Cost Project

15:30 – 16:30
Management Management Stakeholder
What is
PMI?
11 standards
The world for projects
biggest non for across
profit More than industries
organization and regions 8 Widely
486,551 Recognized
members in
Page 4
Credentials
210
countries
PMP Exam Overview
PMI Credentials
Certified Associate in Project Management (CAPM)
Project Management Professional (PMP)
Program Management Professional (PgMP)
Portfolio Management Professional (PfMP)
PMI Risk Management Professional (PMI-RMP)
PMI Schedule Management Professional (PMI-SP)
PMI Professional in Business Analyst (PMI-PBA)
PMI Agile Certified Practitioner (PMI-ACP)
PMI
INDONESIA CHAPTER
Founded in 1996
Head office in Jakarta
887 Members
896 PMP certified
3 Branches
Page 5
www.pmi-indonesia.org
pmp exam overview
What is PMP®?
Provide professional/
personal recognition 01
Create job growth/
opportunities 02
Increase
employee’s value 03
Framework for standardized
project management 04
Registration requirements
1 2
University Degree High school or equivalent
Min 3 years & no more Min 5 years & no more

than 8 years PM Experiences than 8 years
4500 hours & 36 months 7500 hours & 36 months

Page 6
35 hours PM Education 35 hours

PMP Exam Overview

How to become A pmp
Submit online
01 application 02 Payment 03 Eligibility Letter
Examination Fee:
https://certification.pmi.org Wait for 5-7 days for • USD 405 (Member)
application approval • USD 555 (Non-member)
PMI picks A 04
candidates at U • Degree Copy
random AUDIT D • Experience Verification Forms Signed
Schedule Exam
I By The Supervisor
• 35 Contact Hours Certificate
T
Submit proof Audit Passed
How to become A pmp 05

Re-Examina@on
USD 275 (Member)

F USD 375 (Non-Member)
www.pearsonvue.com
A
I
L
04 Schedule Exam
04 E
D
Schedule Exam 200 QUESTIONS (MULTIPLE CHOICE)
DURATION: 4 HOURS
p
a
s
s PMI Credential Credential
e
d
06 Certificate 08 Renewal
USD 60 (Member)
Receive in 6 to 8 weeks Report at https://ccrs.pmi.orgSubmit proof
USD 150 (Non-Member)
Page 7
07 Earn 60 PDUS
within 3 years
A Passing
pmp exam overview
PMP EXAM QUESTIONS

Grade for PMP®
25
experimen
tal
is determined by 175
200
sound psychometric
scored
Questions
analysis
Harder questions have more worth
(higher score) than the easier
questions
Questions allocation
Initiating 26 Questions 13%

planning 48 Questions 24%
executing 62 Questions 31%
Monitoring & controlling 50 Questions 25%
closing 14 Questions 7%
Page 8
PMP Exam Overview

Type of exam questions
situational
two right answers
extraneous information
out of the blue
new approach to known topic
How to study
Create study group
Reading Materials: PMBOK & Exam Prep. Books
Page 9
Understand the inputs – tools – outputs & process
Do cumulative practice & Exercise Simulation

Hints for the exam
pmp exam overview
Write down PMI

formula & major Perspective
processes
Focus on the words:
Follow the best, first,
process except, not,
most likely,
least, etc.
Believe you can

&
you’re halfway There
-T. Roosevelt -
Page 10
Project management framework
Module 02
Project
management
framework
What is Project?
Temporary – time limited
Unique – product, service, result

Page 11
Interrelated Activities – Undertaken for
purpose
Project management framework Easy PMP Exam Preparation
Developing a new cellular series
Constructing a building, industrial
Example of
Projects
The importance of project management

What is Project management?
The application of knowledge,
skills, tools, and techniques to
ART
project activities to meet Intuitive genius is
project requirements essential
Page 12
All factors can be predicted (status

science check), review the plan, move forward!
operation

On-going process
PROJECT
Doesn’t have an end date
Temporary
Continuous, repetitious
Has definite start – end date
Progressive elaborated
Project versus
Operation
Programs is defined as a
group of related projects,
subprograms, and
program activities
Program Management focuses on

achieving program objectives and
obtaining benefits control not available
by managing project individually Page 13
A portfolio is defined as projects,

programs, subsidiary portfolios, and
operations managed as a group to
achieve strategic objectives
Program management and portfolio

management differ from project
management in their life cycles,
activities, objectives, focus, and benefits
Easy PMP Exam Preparation ORGANIZATIONAL STRATEGY
SAMPLE PORTFOLIO
PROGRAM A PROGRAM B PORTFOLIO A
PROGRAM B1 PROGRAM C
Project Project Project Project Project Project

Page 14
OPERATIONS
A B C D E F
SHARED RESOURCES & STAKEHOLDERS


Project Constraints
Schedule
B
Scope A C Budget
Constraints
F D Quality
Risks
E
Resources
Project Management Office (PMO)

Supplying templates, best PMO is a management
practices, training, access to
information and lesson learned Supportive - Low structure that
from other projects standardized the project-
related governance
Provides project managers for different processes and facilitates
projects, and responsible for the
results of those projects; all projects, or
the sharing of resources,
projects of a certain size, type, or methodologies, tools and
influence, are managed by this office
techniques
Directive - High
Controlling - Moderate
Involve adopting PM frameworks and Page 15
methodologies, using specific templates, forms and
tools, or conformance to governance
Organizations and Project Management
functional
matrix
Project-Based Organizations refer
to various organization forms that
create temporary systems for
carrying out their work
projectized
Organizational Structure
Matrix
Functional Projectized
Weak Balanced Strong
Less Formal More Formal

Authority Authority
Functional Manager Power Shared Between Project & Project Manager

Page 16
Stronger Functional Manager Stronger

ROLE OF

PROJECT MANAGER
§ Responsible for managing the project
§ Must have authority and accountability
§ Able to deal with conflicts
§ Integrate the project components
§ Accountable for the project failure
§ Understand professional responsibility
§ Lead and direct the project planning efforts
§ Assists the team and stakeholders during project execution
§ Control the project by measuring performance
ROLE OF
PROJECT SPONSOR
• Is the person paying for the project
• May be internal or external to the company
• In some organizations the sponsor is called the project champion
• The sponsor and the customer may be the same person, although the
usual distinction is that the sponsor is internal to the performing
organization and the customer is external
• May provide valuable input on the project, such as due dates and
other milestones, important product features, and constraints and Page 17
assumptions.
ROLE OF
PROJECT coordinator
§ In some organizations, Project Manager does not exist and
use Project Coordinator
§ Are usually found in weak matrix or functional organizations
§ Are weaker than a Project Manager
§ Have power to make some decisions and have some
authority
§ Report to a higher-level manager
ROLE OF
PROJECT EXPEDITOR
• The weakest of the three project management roles
• Act primarily as a staff assistant and communication coordinator
• Have little or no formal authority
• Report to the executive who ultimately has responsibility for the
project
• Cannot personally make or enforce decision
Page 18
• Are usually found in a functional organization or weak matrix

ROLE OF
SENIOR MANAGEMENT
§ As anyone more senior than the project manager
§ Is to help prioritize projects
§ Makes sure the project manager has the proper authority
and access to resources
§ Issues strategic plans and goals and makes sure that the
company's projects are aligned with them
§ May be called upon to resolve conflicts within the
organization
Role of Functional Manager
§ Is the departmental manager in most organizational

structures, such as the manager of engineering, director of
marketing or information technology manager
§ Usually "owns" the resources that are loaned to the
project, and has human resources responsibilities for them
§ May be asked to approve the overall project plan
Page 19
Enterprise environmental factors (EEF)

Refers to conditions, not under the control of the project team, that
influence, constraint, or direct the project
EEFS INTERNAL TO THE ORGANIZATION EEFS EXTERNAL TO THE ORGANIZATION
• Organizational culture, structure, and • Marketplace condition

governance • Social & cultural influences & issues
• Geographic distribution of facilities & • Legal restrictions
resources • Commercial databases
• Infrastructure • Academic research
• Information technology software • Government or industry standards
• Resource availability • Financial considerations
• Employee capability • Physical environmental elements
Organizational process assets (OPA)

Specific to and used by performing organization
PROCESS & PROCEDURES CORPORATE KNOWLEDGE BASE
• Guidelines & criteria for standard

processes & procedures • Configuration management
• Policies, product & project life cycles, and knowledgebase
quality polices & procedures • Financial databases
• Templates • Historical information & lesson learned
• Procedures in executing, monitoring & knowledge bases
Page 20
controlling process, i.e. change control, • Issue & defect management databases
financial, issue & defect, communication, • Process management databases
risks, etc. • Project files from previous projects
• Project closure guidelines or requirements
PROJECT
Stakeholder
Individuals who are involved in the project
or whose interest may be positively or
negatively affected as a result of the
execution or completion of the project
Sponsor
Customers & users
sellers
Business partners
Project team
Project can be divided into phases to

provide better management control
with appropriate links to the on-
going operation
Phases are generally sequential and are

usually defined by some form of
technical information transfer or
technical component hands-off
Project life cycle

Cost and staffing levels are low at
start, peak during the intermediate Overview
Page 21
phases, and drop rapidly as the project
is closing The phases of project life cycle are not the same as
the Project Management process group
Typical project life cycle profile

Total Project Life Cycle
PLAN ACCOMPLISH
INCREASING RISK PHASE 1 PHASE 2 PHASE 3 PHASE 4
CONCEPT CONCEIVE DEVELOPMENT DEVELOP IMPLEMENTATION EXECUTE TERMINATION FINISH
(A) (B) (C) (D)
$ Value
Period when
Highest Risks are
Incurred
Period of
Highest
Risk Impact
TIME
Project life cycle
project phase
Ending
Starting the Organizing & Carrying Out
the
Project Preparing the Work
Project
PM PROCESS GROUPS
MONITORING &
INITIATING PLANNING EXECUTING CLOSING
CONTROLLING
Page 22
10 knowledge areas Easy PMP Exam Preparation

01 PREDICTIVE/WATERFALL Life Cycle PROJECT LIFE
CYCLE
Scope, time, and cost are determined in early phase
02 ADAPTIVE Life Cycle

The detailed scope is defined and approved before the start of an iteration
PROTOTYPE REFINE
ANALYZE
ANALYZE BUILD TEST DELIVER
DESIGN
PREDICTIVE/WATERFALL Life Cycle

Scope, time, and cost are determined in early phase
DEVELOPMENT
ITERATIVE Life Cycle LIFE CYCLE
General scope is determined early, but time and cost are adjustable
INCREMENTAL Life Cycle

Iteration with addition of functionality within a predetermined time
ADAPTIVE Life Cycle

Scope is defined and determined in early of each iteration
HYBRID Life Cycle

Well known requirements follow predictive, evolving requirements follow adaptive Page 23

Project lifecycle 01
Phases are non-overlapping Phases within one project may be
overlapping
May last for several years Typically one project phase does not last
more than 6 months
Each phase occurs only once Project phases may be repeated during
project
Phases are sequential Project phases may not be sequential
02 Product lifecycle
Process group in project

management INITIATING
1 Define a new project or a new
phase of an existing project by
obtaining authorization to start the
project or phase
PLANNING
Establish the project
2
CLOSING
scope, refine the
objectives, and define
5
Finalize all activities across all
the course of action Project Management Process
required Group to formally close the
project or phase
EXECUTING 3 MONITORING & CONTROLLING

Page 24
Complete the work 4 Track, review project progress and performance;

defined in the Project identify any areas in which changes to the plan
Management Plan are required

Project Management Process
Page 25
Project management framework Easy PMP Exam Preparation PROJECT MANAGEMENT PROCESSES
BASED ON PMBOK 6th EDITION (2017)
INITIATING CLOSING EXCECUTING
Close Project or
Direct and
Develop Identify Phase Acquire Conduct
Manage Project
Project Charter Stakeholders Resources Procurements
Work
Implement
Develop
Plan Cost
PLANNING Develop Manage Manage
Risk
Project Mangt Estimate Costs Team Team Quality
Management Responses
Plan
Determine
Budget
Manage
Plan Schedule Define Manage Manage Project
Plan Scope Stakeholder
Management Activities Communications Knowledge
Management Engagement
Plan
Collect Stakeholder Estimate
Engagement Sequence Activity MONITORING AND CONTROLLING
Requirements Activities Durations
Monitor and
Plan Quality Control
Control Project Control Scope
Define Scope Management Schedule
Estimate Work
Activity
Resources
Plan Resource Develop
Create WBS Control
Plan Plan Schedule Control Costs Monitor Risks
Resources
Communications
Management
Plan Risk Plan Monitor

Monitor Control
Management Procurement Communication Stakeholder
Management Engagement Procurements
Perform Perform Perform

Identify Risks Qualitative Risk Plan Risk Control Quality Integrated Validate Scope
Quantitative
Analysis Respones Change Control
Risk Analysis
PM Process Group & Knowledge Area Mapping

Project Management Process Group
Knowledge Areas
Initiation Planning Executing Monitoring & Controlling Closing
Project Integration Develop Project Develop Project Direct and Manage Project Monitor and Control Close Project or
Management Charter Management Plan Execution Project Work Phase
Manage Project Knowledge Perform Integrated
Change Control
Project Scope Plan Scope Management Validate Scope
Management Collect Requirements Control Scope
Define Scope
Create WBS
Project Schedule Plan Schedule Management Control Schedule
Management Define Activities
Sequence Activities
Estimate Activity Durations
Develop Schedule
Project Cost Management Plan Cost Management Control Costs

Page 26
Estimate Costs
Determine Budget
Project Quality Plan Quality Management Manage Quality Control Quality
Management

PM Process Group & Knowledge Area Mapping
Knowledge Area Monitoring &
Initiation Planning Executing Closing
Controlling
Project Resources Plan Resource Management Acquire Resources Control Resources

Management Estimate Activity Resources Develop Team
Manage Team
Project Communication Plan Communications Management Manage Communications Monitor

Management Communications
Project Risk Management Plan Risk Management Implement Risk Responses Monitor Risks
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Project Procurement Plan Procurement Management Conduct Procurements Control Procurements

Management
Project Stakeholder Identify Plan Stakeholder Management Manage Stakeholders Monitor Stakeholders
Management Stakeholders Engagement Engagement
Get the right people. Then

no matter what all else
you might do wrong
after that, the people
will save you. That’s what
management is all about
Tom DeMarco Page 27

Project management framework Page 28
Project integration management
Module 03
Project
integration
management
Essentials Term for PMP Exam Study

INPUT Tools & techniques output
Processes are encountered

I TT O
regularly when studying for
the PMP Exam
A process as a package
of inputs, tools, and I TT O
outputs u
Page 29
INPUT Tools & techniques output
Understanding itto concept

INPUT Tools techniques output
I T T O
Any item, whether internal or Something tangible, such A defined systematic A product, result, or service
external to the project that is as a template or software procedure employed by a generated by a process.
required by a process before program, used in human resource to perform May be an input to a
that process proceeds. May be performing an activity to an activity to produce a successor process.
an output from a predecessor produce a product or result. product or result or deliver a Examples include: Work
process. Examples include: Analytical service, and that may employ performance information,
Examples include: Project techniques, PMIS, one or more tools. Examples change requests, PM Plan
charter, project schedule, benchmarking, product include: Meetings, expert updates, OPAs updates,
resource calendars, OPAs, EEFs analysis, simulation judgment, inspection, project document updates
interviews, decomposition
Easy PMP ExamEasy

Preparation
PMP Exam Preparation
Project Tools & techniques

Integration
Management
Includes characteristics of Includes the processes and
unification, consolidation,
activities needed to
communication, and integrative
actions that crucial to control
identify, define, combine,
project execution through unify, and coordinate the
completion, successfully managing various processes and
Page 30
stakeholder expectations, and Project Management

meeting requirements activities

7 processes in project integration
management
Knowledge Areas Monitoring & Total
Controlling
Integration 1 1 2 2 1 7
Scope - 4 - 2 - 6
schedule - 5 - 1 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Resources - 2 3 1 - 6
Communication - 1 1 1 - 3
Risk - 5 1 1 - 7
Procurement - 1 1 1 - 3
Stakeholder 1 1 1 1 - 4
Total 2 24 10 12 1 49
Key output of Project Integration Management

Process Group Integration Management Process Key Outputs
Initiating Develop Project Charter Project Charter

Project Management Plan
Planning Develop Project Management Plan
Deliverables
Direct & Manage Project Work Work Performance Data
Executing Change Requests
Manage Project Knowledge Lesson Learned Register
Monitor & Control Project Work Change Requests
Monitoring & Controlling Approved Change Requests

Perform Integrated Change Control Change Log
Final Product, Service, or Result Page 31

Closing Close Project or Phase
Transition
Develop Project Charter
What is Develop Project Charter process? Key Benefits

A well-defined project
The process of developing start and project
a document that formally boundaries, creation of a
authorizes a project or a formal record of the
phase and documenting project, and a direct way
initial requirements that for senior management to
satisfy the stakeholders formally accept and
need and expectation commit to the project

Develop project charter Tools & techniques
1. Business Documents 1. Interpersonal & team 1. Project Charter

2. Agreements skills 2. Assumption Log
3. Enterprise 2. Meetings
environmental factors
4. Organizational process
assets
Page 32
INPUT TOOLS & TECHNIQUES Outputs

Key inputs
Business document Business case
§ Include Business Case Explain why this project

and Benefits is being undertaken, the
Management Plan problem it will solve, the
§ Source of information benefit cost analysis
about the project’s
objectives and how the
project will contribute
to the business goals.
§ Periodically reviewed
Project selection method

Present value Internal rate of return
Is based on the Is the same as

A project's returns
"time value of present value
as an interest rate
money" economic Except that it is
theory that a also factored in
Bigger is better
dollar today is costs
worth more than Bigger is better
a dollar tomorrow
Bigger is better
Net present value Page 33
Benefit cost ratio

How long it will
The ratio of take to recoup an
benefits to costs investment in a
project
A ratio > 1 (better)
shorter is better
Payback period
Opportunity cost
The cost of the

other opportunities
are missed by A percentage that
investing money in shows what return is
this project made by investing in
something
The smaller the
opportunity cost, the
Page 34
Bigger is better
better
Return of investment

Tools & techniques
Data gathering Interpersonal & team skills

§ Conflict Management to help
§ Brainstorming bring stakeholders into alignment
§ Focus Groups on the objectives, success criteria
§ Interviews § Facilitation Techniques such as:
problem solving, conflict
resolution
§ Meeting Management, includes
preparing the agenda, ensuring
representatives invited, follow-up
minutes and actions
Key output Project charter

It should include a high-level milestone
view of the project schedule
Project charter
§ A document that formally It is high-level document that does not

recognizes the existence of a include project details
project
§ It is signed by the performing
It includes a summary-level
organization’s senior preliminary project budget
management
§ It clearly establishes the
Project Manager’s right to make Project Charter is not a project plan
decisions, lead the projects
Page 35
A project cannot start without the Project Charter,
and allocate resources in
which means Project Manager and the project itself
project activities
cannot be successful without a Project Charter
Key output
Assumption log
Is used to record all

assumptions and
constraints Constraints Assumptions
throughout the § Factor that will limit § Factors that, for
planning purposes, are
project life cycle the Project Team’s
option considered to be true, real,
or certain
§ Applicable restriction
that will affect project § Assumption generally
performance involves a degree of
risk
Develop Project Management Plan
The process of documenting the

actions necessary to define,
prepare, integrate, and coordinate all
subsidiary plans.
Page 36

Develop project Management Tools & techniques

plan
1. Project Charter 1. Expert judgment 1. Project Management

2. Outputs from Planning 2. Data Gathering Plan
Processes 3. Interpersonal and
3. Enterprise Team Skills
Environmental Factors 4. Meetings
4. Organizational Process
Assets
Tools & techniques
Data gathering Interpersonal & team skills

§ Conflict management to bring
Such as diverse stakeholders into
alignment;
brainstorming, § Facilitation ensures effective
checklists, focus participation and mutual
understanding;
groups and § Meeting management ensure
interviews. meetings to develop, unify, and
agree on the project
Page 37
management plan are well run
Key output Project management plan
Guide project execution
Project management plan

Document project planning
A formal and approved decision based on the selected
document that defines how alternatives
the project is executed, monitored
Facilitate communication among
and controlled. stakeholders
Baseline: the original Project
Plan with approved Provide a baseline for progress
changes. It is used to measurement and project control
monitor project progress
and forecast the project
final cost and schedule
Direct & Manage Project Work
§ Perform activities to accomplish project

• Issue change request and adapt
requirements
approved changes into the project’s
§ Create project deliverables
scope, plans, and environment
§ Staff, train and manage the team
members assigned to the project • Manage risks and implement risk
§ Obtain, manage, and use resources response activities
including materials, tools, equipment, • Manage sellers and suppliers
and facilities • Collect and document lesson learned,
§ Implement the planned methods and and implement approved process
standards improvement activities
§ Generate project data (cost, schedule, • Requires implementation of approved
Page 38
technical & quality process, status to changes

facilitate forecasting)

Direct and manage project Tools & techniques

work
1. Deliverables
1. Project Management 1. Expert judgment 2. Work Performance
Plan 2. Project Management Data
2. Project Documents Information Systems 3. Issue Log
3. Approved Change 3. Meetings 4. Change Request
Requests 5. Project Management
4. Enterprise Plan Updates
Environmental Factors 6. Project Document
5. Organizational Process Updates
Assets 7. Organizational Process
Assets Updates
Key output
deliverables Work performance data

§ The raw observations and measurements
§ The most important identified during activities being
output performed to carry out the project
work
§ Any product, service, § Is used by several other process
§ Include work completed, key
or result that must performance indicators, technical
be completed in performance measures, start and
finish dates of schedule activities,
order to finish the number of change requests, number
Page 39
of defects, actual costs, and actual
project durations, etc.
Manage project knowledge Tools & techniques
1. Expert judgment 1. Lesson Learned

1. Project Management
2. Knowledge Register
Plan
Management 2. Project Management
2. Project Documents
3. Information Plan Updates
3. Deliverables
Management 3. Any Component
4. Enterprise
4. Interpersonal and 4. Organizational Process
Environmental Factors
Team Skills Assets Updates
Assets
Knowledge management Tools & techniques

Depend on the nature of the
project, especially the degree
of innovation involved, the Interpersonal & team skills
project complexity, and the
• Active listening reduce misunderstandings and
level of diversity (including improves communication and knowledge sharing;
diversity of disciplines) • Facilitation guide a group to a successful decision,
solution, or conclusion;
among team members. • Leadership to communicate the vision and inspire
the project team to focus on the appropriate
knowledge and knowledge objectives;
• Networking allows informal connections and
Information management relations among project stakeholders to be
established and creates the conditions to share tacit
and explicit knowledge;
To create and connect people to • Political Awareness help the project manager to
information. They are effective for plan communications based on the project
Page 40
environment as well as the organization’s political

sharing simple, unambiguous, environment.
codified explicit knowledge
Project management plan updates
Key output Any component of the
project management plan
may be updated as a result
Lesson learned register of this process however any
change goes through the
May record challenges, organization’s change
problems, realized risks and control process via a
opportunities, or other change request.
content as appropriate
include the impact,
recommendations, and Opa updates
proposed actions.
Any organizational process
asset can be updated as a
result of this process
Monitor & Control Project Work
• All monitoring and controlling processes fulfill a sort of

oversight role on the project.
• Comparing the work results to the plan and make whatever
adjustments are necessary to ensure that they match and
that any necessary changes in the work or the plan are
identified and made.
• Monitoring all project information to ensure that risks are being
identified and managed properly and to make sure that Page 41
performance is on track.
Monitor & control project work Tools & techniques
1. Expert judgment 1. Work Performance

2. Data Analysis Reports
Plan
3. Decision Making 2. Change Request
4. Meetings 3. Project Management
3. Work Performance
Information Plan Updates
4. Agreements 4. Project Document
5. Enterprise Updates
Assets
Data analysis
Tools & techniques
§ Alternatives Analysis to select the corrective
actions or a combination of corrective and
preventive actions to implement when a Decision making
deviation occurs;
§ Cost-Benefit Analysis to determine the best
corrective action in terms of cost in case of Includes but is not
§
project deviations;
Earned Value Analysis provides an integrated
limited to voting
perspective on scope, schedule, and cost
performance;
§ Root Cause Analysis focuses on identifying the meeting
main reasons of a problem;
§ Trend Analysis to forecast future Face-to-face, virtual, formal, informal,
performance based on past results; user group, and review meetings to
§ Variance Analysis reviews the differences discuss various project-related topics to
Page 42
between planned and actual performance. address concerns with the project team
members and other stakeholders.
Key output
Change requests Work performance report

• Corrective Action. Any action Provides essential key data so
taken to bring expected future
project performance in line with that necessary corrective and
the project management plan; preventive actions can be taken
• Preventive Action. Dealing with i.e. current status, issues,
anticipated or possible
deviations from the performance
scheduled activities,
measurement baseline and other recommendations, justification,
metrics; forecasts, significant
• Defect Repair. Rework when a achievements.
component of the project does
not meet specifications.
Integrated Change Control
Concerned With: Continuously managing changes to baseline

§ Influencing the factors that
create changes to ensure § Reject a new changes
that changes are agreed § Approving new changes
upon and incorporating them into
§ Determining that change revised project baseline
has occurred
§ Managing the actual
changes when they occurs Page 43
Perform integrated change Tools & techniques

control
1. Project Management 1. Expert judgment 1. Approved Change
Plan 2. Change Control Tools Requests
2. Project Documents 3. Data Analysis 2. Project Management
3. Work Performance 4. Decision Making Plan Updates
Reports 5. Meetings 3. Project Document
4. Change Requests Updates
5. Enterprise
Assets
Change Control System
A collection of formal and documented procedures that

defines the steps by which official project documents may
be changed
Its includes the paperwork,

tracking systems, and approval
levels required to authorize
Page 44
changes

Change Control Board
Includes: Project Manager,
Customer, Experts,
• Is formed to review change Sponsors
request and determine
whether additional
analysis is warranted
• Approves or rejects changes
Tools & techniques

Data analysis Decision making
§ Alternatives Analysis to select Such as voting (unanimity,

the corrective actions or a majority, plurality); autocratic
combination of corrective and decision making (one individual
preventive actions to implement makes decision for group);
when a deviation occurs; multi-criteria decision analysis
§ Cost-Benefit Analysis to
(systematic analytical approach
determine the best corrective
to evaluate based on
action in terms of cost in case of
predefined criteria)
project deviations;
Page 45
Essential terms
Monitor & Control Project Work Perform Integrated Change Control

Is primarily focused on managing Is primarily focused on managing
the way that scope is executed change to the project’s scope
Example: the project team Example: a change request were

members were performing submitted that added a new
slower than planned, and functionality, then it would be
corrective action would be taken evaluated through this process
to ensure that the plan and the to understand its impact on the
execution lined up whole project

Close project or phase Tools & techniques
1. Project Charter 1. Expert judgment 1. Project Document

2. Project Management 2. Data Analysis Updates
Plan 3. Meetings 2. Final products,
3. Project Documents services or result
4. Accepted Deliverables transition
5. Business Documents 3. Final Report
6. Agreements 4. Organizational Process
7. Procurement Assets Updates
Documentation
Page 46
Assets

Close Project or Phase
Includes all administrative closure activities necessary to close the project or phase:
§ To confirm that the project or phase has met all stakeholders’ requirements
§ To verify that all deliverables have been achieved and accepted
§ To satisfy the project or phase completion or exit criteria
§ To transfer the products or services to the next phase (production and/or operation)
§ To collect project or phase record
§ To audit project success or failure
§ To gather project Lesson Learned
§ To archive project information for future use
Those who plan do better than

those who do not plan even
though they rarely stick to
their plan
Winston Churchill
Page 47

Project integration management Page 48
Project scope management
Easy PMP
Exam prep
Module 04
Project Scope
management
Ensure that the project includes all the work required, and
only the work required, to complete the project successfully
Scope Creep
Unapproved and undocumented changes, and they
occur when changes to the scope are not
detected early enough or managed. All these
minor changes slowly add up and may
Preventing extra
have drastic impact on budget, schedule, work or gold platting Page 49
and quality
Describes the features, functions, and Easy PMP Exam Preparation
physical characteristics that characterize a

product, service, or result.
Tools & techniques
Describes work needed to deliver a product,

service, or result with the specified
features and functions.
6 processes in project scope management

Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Page 50
Total 2 24 10 12 1 49

Plan Scope management Tools & techniques
1. Project Charter 1. Expert judgement 1. Scope management

2. Project management 2. Data Analysis plan
plan 3. Meetings 2. Requirements
3. Enterprise management plan
assets
Key inputs
Project life cycle description Development approach
Determines the series Defines whether

of phases that a project waterfall, iterative,
passes through from its adaptive, agile, or a
inception to the end of hybrid development
the project approach will be used
Page 51
Scope management plan
Key output Preparing a detailed project scope
statement
Scope management plan
Enabling the creation of WBS from
Describes how project scope will be the detailed project scope
statement
defined, developed, monitored,
controlled, and validated by the
Establishing how the WBS will be
project management team maintained and approved
Requirement management plan Specifying how formal acceptance

of the completed project
Describes how requirements will be deliverables will be obtained
analyzed, documented, and managed
How requirements activities will be Controlling how requests for
planned, tracked, reported changes to detailed project scope
statement will be processed
Requirements prioritization process

Collect requirements Tools & techniques
1. Project Charter 1. Expert Judgment 1. Requirements

2. Project Management 2. Data Gathering Documentation
Plan 3. Data Analysis 2. Requirements
3. Project Documents 4. Decision Making Traceability Matrix
4. Business Documents 5. Data Representation
5. Agreements 6. Interpersonal & Team
6. Enterprise Skills
Environmental Factors 7. Context Diagram
7. Organizational Process 8. Prototype
Assets
Page 52


Key inputs
Stakeholder engagement plan Stakeholder register
Assist in assessing the level of List of all identified key internal and
participation from the external stakeholders who will
stakeholders in various have interest and influence on
requirements activities by the project
analyzing stakeholders’ It is important to involve the right
communication stakeholders early in the project and
requirements and level of to ensure that they have the
engagement appropriate voice on the project
Data gathering
§ Brainstorming: generate and collect
Tools & techniques
multiple ideas
§ Interviews: formal or informal Data analysis
approach by talking to
Documents Analysis: reviewing and
stakeholders directly
§ Questionnaires and Surveys: written assessing any relevant
documented information
sets of questions to accumulate
information from a wide number
respondents Decision making
§ Benchmarking: measuring an
§ Voting: collective decision making
organization's performance § Multi-criteria decision analysis: use a
against that of other decision matrix to provide a
Page 53
organizations in the same systematical analytical approach
industry for establishing criteria
Project scope management Easy PMP Exam Preparation
Data representation
§ Affinity Diagrams: allow large numbers Tools & techniques
of ideas to be classified into groups
for review and analysis
§ Mind Mapping: Consolidates ideas Interpersonal & team skills
created through individual
§ Nominal Group Technique: Enhance
brainstorming session into a single
brainstorming with a voting
map
process to rank the most useful
ideas
others § Observation/Conversation: Direct way
of viewing individuals in their
§ Context Diagram: visually depict the environment and how they
product by showing a business perform
system and how people and § Facilitation: Focus session bring key
other systems interact stakeholders together to define
§ Prototype: providing model to obtain product requirements
early feedback on requirements
Numerous Techniques to help making decision

A group decision technique where
everyone on the team must agree with the A group decision-making technique where a
Unanimity decision before a decision is made. simple majority of votes is enough to make a
A jury is a common example where decision. Many political elections are examples majority
unanimity is used. of the majority technique, where anything over
50% is sufficient to decide the outcome.
A group decision-making technique where

the largest block of individuals decides the
A group decision technique where one person
plurality outcome. Plurality differs from Majority in
makes the decisions for the entire group. This
that plurality does not require more than dictatorship
technique is generally not viewed favorably
50% to be in agreement.
when it comes to the exam
Page 54
A group decision technique where the

group agrees to support an outcome, even if the
consensus individuals do not all agree with the
decision.

Requirement documentation
Key output The root business problem being
solved (Business requirements)
Requirement traceability matrix
The source of the requirement
§ Document that contains the (Stakeholder requirements)
source that could originate from a
stakeholder or departmental The way each requirement
request, a legal, contractual, or addresses the problem (Solution
requirements)
ethical need, and underlying
requirement, or any number of Transition & Readiness
other sources requirements; Project & Quality
requirements
§ Can also include information
about who owns the requirement,
How the business process interact
the status of the requirement, etc.
with the requirement

Define scope Tools & techniques
1. Project Charter 1. Expert Judgment 1. Project Scope

2. Project Management 2. Data Analysis Statement
Plan 3. Decision Making 2. Project Documents
3. Project Documents 4. Interpersonal & Team Updates
4. Enterprise Skills
Environmental Factors 5. Product Analysis
Assets
INPUT TOOLS & TECHNIQUES Outputs Page 55

Key output Project scope statement
Project scope statement Project Objectives
§ Contains many details pertaining to

Product Scope Description
the project and product deliverables,
including:
Acceptance Criteria
§ The goals of the project
§ The product description
Project Deliverables
§ The requirements for the project
§ The constrains and assumptions Project Exclusions
§ The identified risks related to the scope
§ Output from Scope Planning Project Constraints
§ A basis to keep the project on
track Project Assumptions
Project Scope Statement Elements

Element Detail Example – Nursing Home Project
The team must release the application in six months. The
Project Objectives Specifies the goals and need of the project.
project must return at least 6% revenue increase.
A computerized database with connections throughout
Specifies all the features and functions a
Project Scope Description the organization that allows end users to input data and
product must have.
automate day-to-day activities in the nursing home.
- Functional requirements document
Specifies all the work that needs to be done - Technical & design specifications document
Project Deliverables
to complete the project. - Development
- Deployment of solution to production environment
Outlines requirements a project must meet - Able to handle twenty concurrent connections
Product Acceptance Criteria before stakeholder accept the final product - Should be available 99% of the time
or service. - 10,000 transactions a day
Specifies the limitations and restrictions - Must run on Microsoft windows servers
such as constraints on time, budget, scope,
Project Constraints - Must meet 508 compliance regulations for disabled
quality, schedule, resource, and technology
end users
Page 56
that a project faces.

Factors that are considered to be true in a - All end users have basic computer knowledge
Project Assumptions
project. - Existing infrastructure supports new system
The project scope statement must clearly The application will be used only by administrative and
Project Exclusions
specify what is not included in the project. emergency departments.

Create wbs Tools & techniques
1. Project Management 1. Expert Judgment 1. Scope Baseline

Plan 2. Decomposition 2. Project Documents
2. Project Documents Updates
3. Enterprise
Assets
Tools & techniques

decomposition
§ Is one of the tools used in Scope
Definition to create the WBS.
§ Decomposition involves breaking down the
project deliverables into progressively
smaller components.
§ Large pieces are progressively broken
down into smaller and smaller pieces
until the deliverables are small enough to
be work packages Page 57
Key output
Scope baseline
• A baseline (whether for scope, schedule, cost, or quality) is the
original plan plus all approved changes
• The approved version of scope statement, WBS, and its
associated WBS dictionary, that can be changed only through formal
change control procedures and is used as a basis for comparison à
original plan + approved changes
• Represents the combination of the project scope statement, the WBS,
and the WBS dictionary
• It is placed under control
• Changes to the scope are made according to the scope
management plan
Work Breakdown Easy PMP Exam Preparation
System (WBS)
§ Deliverable-oriented hierarchical
decomposition of the total scope of
work to be carried out by project
team to accomplish project
objectives and create required
deliverables
§ Work not included in WBS is not within
project scope
Page 58
§ Deliverables not in the WBS are not part

of the project.

WBS Based on Major Deliverables
Bike
Frame Wheel Seat Handlebars Brake Gearing
Fork System Frame Structure Hubs Cover & Padding Shape Calipers Gears & Chains
Derailleurs &
Bearing System Joining System Rims & Spokes Seat Structure Handles Levers & Cables
Shifters
Tubing Structure Tubing Tires
§ Is a deliverable-oriented groups of
project components that organize
and define the total project scope
§ Normally presented in a chart
form
§ The item at the lowest level of WBS is
referred to as work packages
§ It is a communication tool among
stakeholders
WBS is used to:

Develop network logic diagrams
Develop schedules Page 59
Easy PMP Exam Preparation Identify risks
Work packages
The work package can not be

easily decomposed any further
The work package is small enough

to be estimated for time (effort)
The work package is small enough

to be estimated for cost
The work package may be assigned

to a single person
Wbs dictionary
Is designed to control what work is being done, when to prevent
scope creep, and to increase understanding of the effort for each
task
§ Code of account identifier § Cost estimates

§ Description of work § Quality requirements
§ Responsible organization § Technical references
List of schedule milestones
Page 60
§ § Contact information
§ Associated schedule activities

VALIdate scope Tools & techniques
1. Project Management 1. Inspection 1. Accepted Deliverables

Plan 2. Decision Making 2. Work Performance
2. Project Documents Information
3. Verified Deliverables 3. Change Requests
4. Work Performance 4. Project Document
Data Updates
VS
§ Is often performed after Perform Quality § It is not unusual for these processes to
Control be performed at the same time
Page 61
§ Is primarily concerned with completeness § Is primarily concerned with correctness
§ Is concerned with the acceptance of the product § Is concerned with adherence to the quality
by the sponsor, the customer and others specification
Note
Validate Scope should
be performed to
Project document where
the product was
in relation to the
cancelled scope at the point
when the project
ended
Tools & techniques

inspection
The activities that include

measuring, examining, and testing
undertaken to determine
whether results are
conformed to the requirement
Page 62

Key output
Accepted deliverables
§ The primary output of the process

of Validate Scope
§ Is typically performed by the
Project Manager, the sponsor, the
customer, the functional manager
§ The result is a formal, written
acceptance

Control scope Tools & techniques
1. Project Management 1. Data Analysis 1. Work Performance

Plan Information
2. Project Documents 2. Change Requests
3. Work Performance 3. Project Management
Data Plan Updates
4. Organizational Process 4. Project Documents
Assets Updates

Key inputs
Work performance data
§ Information about the number of

changes requested, the number
of changes accepted, which
deliverables have started and
their progress, and which
deliverables have finished as per
the project plan.
Tools & techniques

Variance analysis
§ Can be used to measure

differences between what was
defined in the scope baseline
and what was created
§ A way to investigate and
understand the root causes
Page 64
behind these differences


Key output
Work performance information
• Scope performance or technical performance
measurements compared to the planned
measurements are documented and
communicated to the stakeholders and other.
• Work performance information such as the
identified scope variance and causes, impact of
the variance on schedule and cost the categories
of the changes received, and the future scope
performance forecast are among elements that
may assist in making scope-related decisions.
Running a project without a WBS

is like going to a strange land
without a roadmap
J. Phillips
Page 65
Project scope management Page 66
Project schedule management

Tools & techniques
Easy PMP
Exam prep
Module 05
Project schedule
management
6 processes in project schedule management

Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Page 67
Total 2 24 10 12 1 49
Project schedule management Easy PMP Exam Preparation
Plan Schedule management Tools & techniques
1. Project Charter 1. Expert judgement 1. Schedule management

2. Project management 2. Data Analysis plan
plan 3. Meetings
3. Enterprise
assets
Key output
Schedule management plan
§ A component of the project management plan that establishes the criteria
and the activities for developing, monitoring and controlling the schedule.
§ May establish the following:
– Scheduling methodology and tools that will be used in the schedule development
– Schedule baseline against which performance will be measured
– Unit of measurement for resources
– Acceptance and unacceptable variances
– Schedule change control procedures
– Guidelines on schedule variance identification and control
– Rules of performance, such as earned value measurement techniques, schedule variance (SV),
Page 68
and schedule performance index (SPI)


Define activities Tools & techniques
1. Project Management 1. Expert Judgment 1. Activity List

Plan 2. Decomposition 2. Activity Attributes
2. Enterprise 3. Rolling Wave Planning 3. Milestone List
Environmental Factors 4. Meetings 4. Change Requests
3. Organizational Process 5. Project Management
Assets Plan Updates
decomposition
Tools & techniques
Define Scope vs Define Activity
§ Define Scope: Rolling wave planning
Decomposition up to
deliverable level Is a form of progressive elaboration
planning where the work to
be accomplished in the near
§ Define Activity: term is planned in detail at a low
Decomposition up to level of WBS
activity level
Future work is planned for
WBS components that are at
a relatively high level of WBS Page 69
Key output Activity attributes
Activity list Extend the description of the

activity by identifying the
Includes all activities that multiple components
will be performed in the associated with each activity
project
WBS and Activity List are Milestone list
sequential processes, but A milestone is a significant point
sometimes developed or event in the project
Identifies all milestones and
concurrently indicates whether is mandatory
or optional

Sequence activities Tools & techniques
1. Project Management 1. Precedence 1. Project Schedule

Plan Diagramming Method Network Diagrams
2. Project Documents 2. Dependency 2. Project Documents
3. Enterprise Determination and Updates
Environmental Factors Integration
4. Organizational Process 3. Leads and Lags
Assets 4. Project Management
Information System
Page 70

Precedence Diagramming
Creates a graphical representation of the
Method (PDM)
schedule activities in the order in which
they must be performed on the project
A120
Draft Drawing
20 days
121 121
Initial Design Finish Design
10 days 10 days
A130
Activities are represented by the nodes

Run Simulation
15 days
(rectangles), with arrows representing the

dependencies that exist between the
activities
The initiation of successor work depends

upon the completion of predecessor work fs
The initiation of successor
Precedence work depends upon the
initiation of predecessor work
ss
Diagraming pdm
The completion of successor
Method work depends upon the
completion of predecessor work
ff
The completion of successor work depends
upon the initiation of predecessor work sf Page 71
Arrow Diagraming
Method (adm)
ACTIVITY
NODE 1 NODE 2
DURATION
Draft Drawing
30
20 Days
DUMMY
Initial Design NODE 1 NODE 2
A10 A20 Final Design
A50 A60 NO DURATION
10 Days 10 Days
Run Simulation
15 Days
A40
The activities are represented on
the arrows, with the nodes being
Easy PMP Exam Preparation connecting points
Tools & techniques

Precedence diagramming
method (PDM) VS Arrow diagramming
method (adm)
Is called Activity On
Node (AON) Is called Activity On
Arrow (AOA)
Has four relationships, Has only one
i.e.: Finish to Start, relationships, i.e.: Finish
Start to Start, Finish to to Start
Finish, Start to Finish
May use dummy activities
Does not use dummy to simply show
dependencies between
Page 72
tasks; they do not

required work or time
Dependency Determination

Tools & techniques
Mandatory/hard logic 1 These activities must be followed in sequence
Example: Clearing the lot on construction site before
pouring the foundation
Discretionary/soft logic 2
Expert judgment and best practices often dictate that
particular order
Example: Painting the interior before putting
down carpet
Dependencies relying on factors outside of the project

Example: Zoning approval for a new building
3 external
Involve a precedence relationship between project activities and are

generally inside the project team’s control
Example: When the team cannot test a machine until they assembly 4 internal

Applying leads & lags
Tools & techniques
leads § Allows an acceleration of the successor activity
§ Designated number of time period subtracted form
start or finish the activity
§ Example: 2 days between activity A to activity B
§ Relationship example: FS - 2; 2 days of lead
lags § Directs a delay in the successor activity

§ Designated number of time period added to the start or
finish of the activity
§ Example: 2 days between activity A to activity B Page 73
§ Relationship example: FS + 2; 2 days of lag
Key output
Project schedule network diagram
§ The schedule network diagram is not the schedule
§ No start or finish dates are assigned to the activity
yet
§ They are simply arranged in the order they need to be
performed on the project
§ May include a full representation of every activity in
the project, or
§ May include summary node

Estimate activity durations Tools & techniques
1. Project Management 1. Expert Judgement 1. Duration Estimates

Plan 2. Analogous Estimate 2. Basis of Estimates
2. Project Documents 3. Parametric Estimating 3. Project Documents
3. Enterprise 4. Three-point Updates
Environmental Factors Estimating
4. Organizational Process 5. Bottom-up Estimating
Assets 6. Data Analysis
7. Decision Making
8. Meetings
Page 74


Tools & techniques
Analogous estimating Parametric estimating
§ Also known as TOP-DOWN § Quantitatively determined by
estimating. multiplying the quantity of work to
§ Using the actual duration of previous be performed with the
and similar scheduled activity as productivity rate
the basis for estimating the § It is not as effective for
future duration of scheduled activities that have not been
activity performed before or those for
§ is combined with expert judgment to which little or no historical
determine if the two activities information has been
are truly alike. gathered.
Tools & techniques

Three-point estimating Reserve analysis
§ An activity duration estimate that § Contingency reserves (time
can be constructed by involving reserves or buffers)
three estimated duration § Added extra time to an
(Optimistic, Pessimistic, Most Likely)
using statistical methods such as activity duration estimate
PERT (Program Evaluation & Review § May be a percentage of
Techniques) the estimated duration, a
Duration PERT = O + 4M + P fixed number of work
periods
6 Page 75
Develop schedule Tools & techniques
1. Project Management 1. Schedule Network 1. Schedule Baseline

Plan Analysis 2. Project Schedule
2. Project Documents 2. Critical Path Method 3. Schedule Data
3. Agreements 3. Resource Optimization 4. Project Calendars
4. Enterprise 4. Data Analysis 5. Change Requests
Environmental Factors 5. Leads and Lags 6. Project Management
5. Organizational Process 6. Schedule Plan Updates
Assets Compression 7. Project Documents
7. Project Management Updates
Information System
8. Agile Release Planning
Critical path method

Tools & techniques
§ A project’s critical path is the
combination of activities that, if
any are delayed, will delay the Resource leveling
project’s finish § Is when the resource needs meet
§ Has three main purposes:
up with the organization’s ability
§ To calculate the project’s finish date
§ To identify how much individual
to supply resources
activities in the schedule can slip § Schedule and cost slip in
(or “float”) without delaying the favor of having a stable number
project of resources each month
§ To identify the activities with the § Allocate scarce resources to
highest risk that cannot slip without critical path activities first
Page 76
changing the project finish date


What if analysis Tools & techniques
§ The most common technique is Monte
Schedule compression
Carlo Analysis to predict likely schedule
outcomes for a project and identify the Shorten project schedule (in planning phase:
areas of the schedule that are the related to constraint; and in
highest risk execution/control phase: related to
§ Is performed by computer and evaluates progress performance)
probability by considering a huge § Crashing: Taking action to decrease total
number of simulated scheduling project duration after analyzing a
probabilities, or a few selected likely number of alternatives to determined
scenarios how to get the maximum duration
§ The outcome of what-if scenario compressed for the least cost
analysis can be used to assess the feasibility § Fast Tracking: Compressing project
of project schedule under adverse conditions, schedule by overlapping activities that
and in preparing contingency and would normally done in sequence,
response plans to overcome or mitigate means doing critical path tasks in parallel
the impact of unexpected situations that were originally planned in series
Tools & techniques

crashing § Moving resources from non critical tasks or adding extra resources to the task
from outside project. Most crashing results in increased costs
§ Applying more resources to reduce duration
§ Example: If setting up a computer network takes one person 6 weeks,
three resources may be able to do it in three weeks
§ Crashing usually does not reduce the schedule by a linear amount
Fast tracking § Fast tracking usually increase risk and requires more attention to
communication
§ Have a higher probability of rework
§ Example: In ABC company, no coding on software modules is allowed
Page 77
until after the database design is complete, but when fast tracking, the
activities could be done in parallel if it is not a mandatory dependency
Agile release planning Tools & techniques

§ Agile release planning
provides a high-level
summary timeline of the
release schedule.
§ Agile release planning
also determines the number
of iterations or sprints in
the release.
Key output
Project schedule
§ Project Network Diagram
§ Is a useful detail-driven tool that provides a powerful of the
dependencies and sequence of each activity
§ It is the best representation for calculating the critical path and showing
dependencies on the project
10 30
0 A 3 1 4 C 6
0 3 4 6
3 RESP. 2 RESP.
3
40 80 90
4 D 9 9 H 15 15 I 17
7 9 9 15 15 17
2 RESP. 6 RESP. 2 RESP.
20 50
0 4 4 8
Page 78
B E 1
1 5 5 9
4 RESP. 4 RESP.
2 60 70
6 F 12 12 G 15
8 14 14 17
6 RESP. 3 RESP.

Project schedule
§ Bar chart
Key output § Show activities represented as horizontal bars
and typically have a calendar along the
horizontal axis
§ The length of the bar corresponds to the length
of time the activity should require
§ Can be easily modified to show percentage complete
§ A good tool to use to communicate with management, it
is easy to understand at a glance
Project schedule
Key output § Milestone chart
§ Only represents key events (milestones) for the
project
§ Should be reserved for brief, high level project
presentations
Page 79
Key output
Schedule baseline
• Is created at the point at which schedule is approved by the

customer, the sponsor, and the project manager
• When schedule change request are approved, they
become part of the schedule baseline
SPECIAL FOCUS: CRITICAL PATH METHOD

• Critical path calculations show where most of the schedule risk
exists
• The critical path is made up of activities that cannot be delayed without
delaying the finish of the project
• The critical path is determined simply by identifying the longest path
through the system
• It is not unusual to have more than one critical path on a project
– Schedule risk is increased because there are an increased number of ways
Page 80
the project could be delayed

Easy PMP Exam Preparation Free float Total float

The amount of The amount of
Float/slack time a task can time a task can be
float
be delayed delayed without
without delaying delaying the project
The amount of time a the early start date completion date
of its successor
task can be
delayed without Project float Negative float
delaying the project
The amount of time a Exists when an
project can be activity’s finish date
delayed without happens before its
delaying the imposed scheduled start
project completion date date. It means that
required by the customer schedule has problems
or management
Schedule Calculation:
B C
Activity
4 6
ES A EF F
LS 2 LF 8
Duration D E
5 2
ES = Earliest Start
EF = Earliest Finish
LS = Latest Start
Page 81
LF = Latest Finish
Calculation Forward Calculation
• EARLIEST FINISH (EF) TF = 0 TF = 0

– (EF) = (ES) + (D) 2 B 5 5 C 11
• LATEST START (LS) 2 3 5 5 6 11
– (LS) = (LF) – (D) TF = 0 FF = 0 TF = 0
FF = 0
0 A 2 11 F 19
TFE = LFE – EFE or LSE – ESE
0 2 2 11 8 19
FF = 0 FFE = ESF – EFE
FF = 0
TF = 3 TF = 3
2 D 6 6 E 8
5 4 9 9 2 11
FF = 0 FF = 3 Backward Calculation
Schedule Calculation Exercise 1

D E H
1 2 1
A F I K
4 5 6 4
B C G J
1 2 2 2
Page 82
Define the network diagram which include ES & EF for forward calculation; LF & LS for backward
calculation
Define critical path including the total float (0)
Free float and total float per activity

TF = 12 TF = 12 TF = 12
4 D 5 5 E 7 7 H 8
16 1 17 17 2 19 19 1 20
FF = 0 FF = 0 FF = 12
TF = 0 TF = 0 TF = 0 TF = 0
0 A 4 9 F 14 14 I 20 20 K 24
0 4 4 9 5 14 14 6 20 20 4 24
FF = 0 FF = 0 FF = 0
FF = 0
TF = 0 TF = 0 TF = 0 TF = 9
4 B 5 5 C 7 7 G 9 9 J 11
4 1 5 5 2 7 7 2 9 18 2 20
FF = 0 FF = 0 FF = 0 FF = 9

B D G FS+6
12 14 8
A
H I
8
14 12
C E
16 13
SS+10 F
19
Calculate the forward and backward passes Page 83
Identify critical path
Calculate the float for each path
Control schedule Tools & techniques
1. Project Management 1. Work Performance

1. Data Analysis
Plan Information
2. Critical Path Method
2. Project Documents 2. Schedule Forecast
3. Work Performance 3. Change Requests
Information System
Data 4. Project Management
4. Resource Optimization
4. Organizational Process Plan Updates
5. Leads and Lags
Assets 5. Project Documents
6. Schedule
Updates
Compression
Tools & techniques

Performance reviews Variance analysis
Measure, compare and analyze Are used to assess the

schedule performance such as magnitude of variation to the
actual start and finish original schedule
dates, percent complete, baseline
and remaining duration
for work in progress
Page 84

Earned value analysis
Tools & techniques
To measure schedule
performance such as
Schedule Variance (SV) and
This chart tracks the work that
Schedule Performance remains to be completed in the
Index (SPI) iteration backlog. It is used to
analyze the variance with
respect to an ideal burndown
based on the work committed
from iteration planning.
Iteration burndown chart
A project without a critical

path is like a ship without a
rudder
D. Meyer
Page 85
Project schedule management Page 86
Project cost management
Easy PMP
Exam prep
Module 06
Project COST
management
4 processes in project cost management

Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Page 87
Total 2 24 10 12 1 49
Project cost management Easy PMP Exam Preparation
Plan COST management Tools & techniques
1. Project Charter 1. Cost management

1. Expert judgement
2. Project management plan
2. Data Analysis
plan
3. Meetings
3. Enterprise
assets

Cost management plan
Key output
Units of measure
Level of precision & accuracy
Organizational procedure links
Control Thresholds
Rules of performance
measurement
Reporting Format
Page 88
Process Descriptions

Estimate costs Tools & techniques
1. Project Management 1. Expert Judgment 1. Cost Estimates

Plan 2. Analogous Estimating 2. Basis of Estimates
2. Project Documents 3. Parametric Estimating 3. Project Documents
3. Enterprise 4. Bottom-Up Estimating Updates
Environmental Factors 5. Three-point
4. Organizational Process Estimating
Assets 6. Data Analysis
Information System
8. Decision Making
Tools & techniques

Analogous estimating Parametric estimating Bottom-up estimating
An estimating technique that An estimating technique that A method of estimating a

uses the parameter value such uses a statistical relationship component of work. The
as scope, cost, budget, and between historical data and other detailed cost then
duration or scale measure variables (e.g. Square footage in summarized or “rolled up” to
such as size, weight, and construction or lines of code in higher levels for subsequent
complexity from a previous and software development) to reporting and tracking
similar activity as the basis for calculate an estimate for purpose. Based upon the
estimating the same parameter activity parameters, such as lowest level of the WBS
or measure for a future scope, cost, budget, and
activity. duration Takes time but accurate to within -
5% and +10%
Accurate to within -10% and +25%
Page 89
Tools & techniques

Reserve analysis Cost of quality
§ Sometimes called § The technique of

contingency allowances to evaluating the cost of
account for cost quality, often
uncertainty abbreviated as COQ
§ All of the costs that will
be realized in order to
achieve quality

Type of project cost
Tools & techniques
Fixed cost Direct cost Sunk cost
Costs that stay the same Expenses that are billed Costs that have been
throughout the life of a directly to the project. invested into or expended upon
project. the project.
An example is the Sunk costs are like spilt
An example is a piece of materials used to milk. If they are
heavy equipment, such construct a building; unrecoverable, they are
as a bulldozer; Set up Direct labor cost to be treated as if they
cost; Rental cost are irrelevant
Variable cost Indirect cost Overhead cost
Costs that vary on a Costs that are shared and

Fringe benefits, office
allocated among several or
project. and its facilities
all projects.
An example could be a
Page 90
Examples are hourly

labor, and fuel for the manager’s salary;
bulldozer; cost of supervisory cost,
material, supplies, wages construction
equipment/tools

Range of Accuracy of Estimation
Tools & techniques
Rough order of magnitude Budget estimates Definitive estimates
It is an approximate Prepared from flow Used for bids, contract

estimate made without sheets and used to changes, legal claims, and
detailed data. This type of establish funds required permit approvals.
estimate is used during and to obtain approval for
the formative stage for the project.
initial evaluation of a
project’s feasibility.
Accurate to within -25% to +75% Accurate to within -10% to +25% Accurate to within -5% to +10%

Determine budget Tools & techniques
1. Project Management 1. Expert Judgement 1. Cost Baseline

Plan 2. Cost Aggregation 2. Project Funding
2. Project Documents 3. Data Analysis Requirements
3. Business Documents 4. Historical Information 3. Project Documents
4. Agreements Review Updates
5. Enterprise 5. Funding Limit
Environmental Factors Reconciliation
6. Organizational Process 6. Financing
Assets

Tools & techniques

Cost aggregation Reserve analysis financing
Cost estimates should § Is related to risk, to § Financing entails

be aggregated to the protect from cost acquiring funding for
work package where overrun projects.
they will be measured, § Can be known as § If a project is funded
managed, and management reserve externally, the
controlled during the and contingency funding entity may
project reserve have certain
requirements that are
required to be met
Key output
Cost performance baseline
• The cost performance 100%
baseline is an authorized
Over Budget Under Budget
time-phase budget used
to measure, monitor, and
control overall project
Cost Baseline
cost performance
• It is the summary of Actual Curve
approved budget by
time period and is
Page 92
typically displayed in the

S-Curve form Report Date
0%

Control Cost
§ Concerned with:
– Influencing the factors
that create changes to
cost baseline
– Determining the change
in the cost baseline
– Managing the actual
changes as they occur

Control cost Tools & techniques
1. Project Management 1. Expert Judgment 1. Work Performance

Plan 2. Data Analysis Information
2. Project Documents 3. To Complete 2. Cost Forecast
3. Project Funding Performance Index 3. Change Requests
Requirements 4. Project Management 4. Project Management
4. Work Performance Information System Plan Updates
Data 5. Project Documents
5. Organizational Process Updates
Assets

SPECIAL FOCUS:
EARNED VALUE ANALYSIS
§ Earned value represents the budget amount absorbed that

can be claimed when representing the completed
work (cost, time, scope)
§ Earn value analysis technique is a method of measuring
project performance by comparing the amount of work
planned with what was actually accomplished to
determine whether cost and schedule are
performed as planned
§ Enable Project Manager to detect deviations from the plan
as soon they occur and take appropriate corrective
action
Earned Value Technique
Illustrative graphic Budget at Completion (BAC)

§ Cost Variance (CV):
– (+) : under budget
– (-) : over budget
• Schedule Variance (SV): EV - PV
X
Cost Variance – (+) : ahead schedule
Actual Cost CV = EV - AC – (-) : behind schedule
• Cost Performance Index (CPI): EV/AC
Comulatif Value
– > 1 performance of cost: OK

Planned Value X – < 1 performance of cost: not OK
Schedule Variance
– Getting $. xxx out of every $1 invest
SV = EV-PV
Page 94
X • Schedule Performance Index (SPI): EV/PV

Earned Value – > 1 performance of schedule: OK
– < 1 performance of schedule : not OK
Data Date Time – Perform x % of the original plan

Earned Value Management (EVM)
Term Abbreviation Description Formula
No one formula exists. BAC is

How much was originally planned for this
Budgeted At Completion BAC derived by looking at the total
project to cost
budgeted cost for the project
How much work should have been completed

Planned Value at a point in time based on the plan (Derived
PV
also known as Budgeted Cost by measuring where you had planned to be in PV = Planned % Complete x BAC
(or BCWS)
of Work Scheduled terms of work completed at a point in the
schedule)
Earned Value How much work was actually completed at a

EV
also known as Budgeted Cost point in time. Derived by measuring where EV = Actual % Complete x BAC
(or BCWP)
of Work Performed you actually at a point in the schedule
Actual Cost
AC Sum of all costs for the given period
also known as Actual Cost of The money spent at a point in time
(or ACWP) of time
Work Performed
Earned Value Management (EVM)

Term Abbreviation Description Formula
The difference between what we expected to spend and

Cost Variance CV CV =EV - AC
what was actually spent at a point in time
Schedule Variance The difference between what we planned in the

SV SV = EV - PV
schedule and where we are in the schedule
The rate at which the project performance is meeting
Cost Performance Index CPI CPI = EV ÷ AC
cost expectations
Cumulative CPI CPIc Forecast project costs at completion CPIc= EVc ÷ ACc
The rate at which the project performance is meeting
Schedule Performance Index SPI SPI = EV ÷ PV
schedule expectations
Projecting the total cost at completion based on project
Estimate At Completion EAC EAC = BAC ÷ CPI
performance at a point in time
Projecting how much will be spent on the project, based
Estimate To Completion ETC ETC = EAC – AC
on past performance
Variance At Completion VAC

The difference between what was budgeted what will
actually be spent
VAC = BAC – EAC Page 95
To Complete Performance Performance that must be achieved in order to meet the
TCPIc TCPIC = (BAC – EV) ÷ Remaining Funds
Index financial or schedule goals
To-Complete Performance Index (TCPI)

§ TCPI is a measure of the cost
performance that is required to be
achieved with the remaining resources
in order to meet a specified
management goal, expressed as the
ratio of the cost to finish the outstanding
work to the remaining budget.
§ TCPI = (BAC – EV) / (BAC – AC) or
§ TCPI = (BAC – EV) / (EAC – AC)
EVM Example 1
You are the project manager for the construction of 20 miles of
sidewalk. According to your plan, the cost of construction will be
$15,000 per mile and will take 8 weeks to complete
Two weeks into the project, you have spent $55,000 and
completed of 4 miles of sidewalk, and you want to report
Page 96
performance and determine your project performance by

calculating how much time and cost remain

EVM Example 1
bac Planned value Earned value
§ PV = Planned % § EV = Actual %
§ We take 20 miles of complete x BAC complete x BAC
sidewalk x $ 15,000 § We are 2 weeks § We have completed 4
per mile complete on an 8 miles of the 20 mile
§ BAC = $ 300,000 week schedule = 25% project = 20%
§ PV = 25% x $ § EV = 20% x $300,000
300,000 = $ 75,000 = $60,000
Actual cost Cost variance Schedule variance
§ We have spent § CV = EV – AC = $ § SV = EV – PV = -$
$55,000 to date 5,000 (Under budget) 15, 000 (Behind
§ AC = $ 55,000 schedule)
EVM Example 1
cpi spi eac
§ Schedule Performance § Estimate At
§ Cost Performance Index (SPI) = EV ÷ PV Completion (EAC) =
Index (CPI) EV ÷ AC = 0,8 BAC ÷ CPI =
= 1,09 § Progressing 80% of expected $275,229.36
§ Getting $1,09 of every
$1,00 invest
ETC VAC TCPI
§ Estimate To § Variance At § To Complete

Complete (ETC) = Completion (VAC) = Performance Index
EAC – AC = BAC – EAC = (TCPIc) = (BAC – EV)
Page 97
$220,229.36 $24,770.64 ÷ remaining funds =
0.98
EVM Example 2
You are constructing 6 additional rooms on an office building.
Each of six room is identical and the projected cost for the
project is $100,000 and is expected to take 5 weeks.
At the end of the 2nd week, you have spent $17,500 per room
and have finished 2 rooms; you are ready to begin on the 3rd.
To measure your project performance, how is your status and
how much time and cost remain of your project
EVM Example 2
Parameter Value
Budgeted At Completion (BAC)
Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)

Cost Variance (CV)
Schedule Variance (SV)
Cost Performance Index (CPI)
Schedule Performance Index (SPI)
Estimated At Completion (EAC)
Page 98
Estimated To Completion (ETC)

Variance At Completion (VAC)
To Complete Performance Index (cost)
Project quality management
Easy PMP
Exam prep
Module 07
Project quality
management
3 processes in project quality management

Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Page 99
Total 2 24 10 12 1 49
Process within phase Easy PMP Exam Preparation
Quality management
PDCA (Plan – Do –
Check – Action)
concepts
cycle by Deming is Cost of inspection
similar with the (non conformance)
is high, so it is
process in Project
better to spend on
Prevention
Management
prevention over inspection
Costumer expectation is
Management is met Conformance to
responsible to requirements: the project
provide the must produce what it said
Management resources needed it would produce
responsibility to succeed the Fitness for use:
project
Customer product/service produced
must satisfy real needs
satisfaction
VS
LOW QUALITY is always a problem, but LOW
GRADE is no necessary a problem
The totality of characteristic of an entity that A category or rank given to entities that have
Page 100
bear the ability to satisfy the stated and similar functional use but in different
implied needs, conformance to requirement for quality
requirements

Precision
A measure of exactness
Precise = consistent
Quality control is used to monitor both the precision and the

accuracy in order to provide reliable results
An assessment of correctness
Accurate = correct
accuracy
Quality terms, theories & Easy PMP Exam Preparation
philosophies
Conformance to specification Fitness for use Continuous improvement Total quality management
By Phil Crosby – 1980s: By joseph juran By kaizen
Popularized the Developed the 80/20 Quality of process All level in all unit
concept of the cost of principles, advocates improves in small responsible for product
poor quality, top management increments on a quality. Companies and
advocated prevention involvement, and continuous basis employees focus on
over inspection and defined quality by finding ways to
zero defects, and fitness for use continuously improve
defined quality as (product or service the quality
conformance to must satisfy the real
Page 101
specification (project need).
produces what it was
created to produce).
Quality terms, theories &
philosophies
Just in time Marginal analysis Balance scorecard Gold plating
To decrease the amount of Optimal quality is reached Alignment of Extra services to costumer
inventory which then at the point where the program/Initiative (extra functionality,
decreasing the incremental revenue from into strategy, higher quality
investment and cost improvement is equal to including alignment component, extra
of inventory the incremental cost to of program SOW). It is not
secure measurement recommended as
there is no value
4 perspectives: added. It is better to
financial, costumer, spend the time to
internal Business monitor the project
Process, and conformance to
Learning & Growth requirement

Plan Quality management Tools & techniques
1. Expert judgement 1. Quality Management

1. Project Charter
2. Data Gathering Plan
2. Project management
3. Data Analysis 2. Quality Metrics
plan
4. Decision Making 3. Project Management
5. Data Representation Plan Updates
4. Enterprise
6. Test and Inspection 4. Project Documents
Planning Updates
7. Meetings
assets
Page 102


benchmarking Design of experiment
Comparing to other Statistical method to identify

Tools & techniques
which factor may influence
projects to generate ideas Cost-benefit analysis
specific variables (use for
for improvement and product). This method provides
provide a standard ‘”what-if”’ analysis of alternative Primary benefit: less rework
performance to identify which factors might vs expense that is
improve quality associated with project
quality activities
Cost of conformance Cost of nonconformance

§ Prevention Cost (Build a quality product) § Internal Failure Cost (Failure found by the
§ Education and training project)
§ Improve design for quality purposes § Scrap
§ Document processes § Rework
§ Equipment § External Failure Cost (Failure found by the
§ Time to do it right
customer)
§ Inspection and testing (Asses the quality) § Repair
§ Replacement
§ Testing
§ Loss of future business
§ Destructive testing loss
§ Liabilities
§ Inspections
§ Waranty work
Tools & techniques

flowchart Logical data models Test & inspection plan
§ A graphical § Logical data models are a During the planning phase,

representation of a visual representation of the project manager and
process to help analyze an organization’s data, the project team determine
how problems occur ant described in business how to test or inspect the
to identify potential language and product, deliverable, or
process improvement independent of any service to meet the
opportunities specific technology. stakeholders’ needs and
§ Identifying risks and § The logical data model expectations, as well as
improving quality using can be used to identify how to meet the goal for
flow charts: where data integrity or the product’s performance
Page 103
other quality issues can and reliability
arise.
Key output
Quality management plan Quality metrics
Describes how the Project An operational definition

Management team will that describes, in very
implement the performing specific terms, a project or
organization’s quality policy. It product attribute and how
is a component or a the quality control process
subsidiary plan of project will measure it.
management plan

Manage quality Tools & techniques
1. Data Gathering 1. Quality Reports

2. Data Analysis 2. Test and Evaluation
Plan
3. Decision Making Documents
4. Data Representation 3. Change Requests
5. Audits 4. Project Management
Assets
6. Design for X Plan Updates
7. Problem Solving 5. Project Documents
8. Quality Improvement Updates
Methods
Page 104


Tools & techniques
checklist
A checklist is a structured tool, usually component-

specific, used to verify that a set of required steps
has been performed or to check if a list of
requirements has been satisfied
Tools & techniques

Affinity diagram
The affinity diagram is similar to

mind-mapping techniques in that
they are used to generate ideas that
can be linked to form organized patterns
of thought about a problem
Page 105
Tools & techniques

Cause and effect People Environment Material
No exposure to PM tools Lack of support from No access to quality
Also known as Fishbone or ishikawa

family exam bank
Not allocating enough study Heavily involved in job Using old, obsolete
time assignment exam simulator
• Helpful in organizing thought Not having a study plan Numerous personal issues Using unauthorized
study material
and stimulating thinking and

Lack of real-life PM
experience
discussion Failing PMP

Exam
• A creative way to look at Duration too long and tricky
Too many process-related question

Not practicing enough mock
exam question
Not having PM training as per
causes/ potential causes of an Too many mathematical and situational
questions
PMI standard
Memorizing processes
effect Responding based on general

experience but not as per PMI’s way
without applying them
• Used to explore the factors that Not paying close enough attention
to the question
will results in a desired outcome Exam Method
Tools & techniques

histogram
Showing how often Histogram
something occurs, or its 7

6
frequency. 5
4 Frequency
3
2
1
0
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Page 106
Bin Limit

Tools & techniques
Scatter diagram
Is used when we need to

analyze two characteristic
of a process and see if
Scatter Diagram
there is any 90
80 Mon,79
interdependency
Sat,78
Sun,77
70 Wed,68
Fri,66
60
# of complaints
between them
Tues,56
50 Morning
Thu,50
40 Mon,39 Day
Sun,25 Sat,33
30 Thus,23 Wed,22 Thu,21 Nigth
Mon,20 Fri,17
20
Sun,5 Sat,12
10 Thus,13 Wed,4 Thu,3 Fri,5
0
0 1 2 3 4 5 6 7 8
Days of week

Control Quality Tools & techniques
1. Project Management Plan 1. Data Gathering 1. Quality Control

2. Project Documents 2. Data Analysis Measurements
3. Approved Change 3. Inspection 2. Verified Deliverables
Requests 4. Testing/Product 3. Work Performance
4. Deliverables Evaluations Information
5. Work Performance Data 5. Data Representation 4. Change Requests
6. Enterprise Environmental 6. Meetings 5. Project Management Plan
Factors Updates
7. Organizational Process 6. Project Documents
Assets Updates

Tools & techniques

inspection Statistical sampling Check sheet
§ Random sampling to § Also called a tally sheet, is

The activities: cut costs of 100% used as a form for
measuring, examining, sample collecting information
and testing to about a process in an
§ Choosing part of a
determine whether organized manner through
population of interest
observation and counting.
results are conformed of inspection § Check sheets provide an
to requirements § To reduce cost of easy way to keep track of
quality, time saving the frequency of
§ Acceptable quality occurrences and are
level (we believe there designed to answer the
are not many defects) question “How often does
this event occur and under
what condition?”
Tools & techniques

Control chart
Graph of samples to determine if
process in control
Rule of Seven:
§ It refers to nonrandom data points
grouped together in a series that total
seven on one side of the mean.
§ This type of situation needs to be
investigated and a cause should be
found, because even though none
Page 108
of the points are out of the control

limit, they are not random and the
process may be out of control.

Standard deviation
Tools & techniques
§ Six sigma is a qualitative statistical
measurement – fewer than four
defects per milion opportunities.
Performing at the Six Sigma levels
means that product and processes
statisfy the costumer 99.99985% of
the time
– 1 sigma equals to 68,26%
§ To measure how far the mean is
((P-0)/6)
Control quality terms

Mutually exclusive Statistical independent Attribute sampling
Two event The probability A method of measuring

quality that consists of
cannot occur in of one event observing the presence
single trial occurring does not (or absence) of some
affect the characteristics (attributes) in
each of the units under
probability of consideration to determine
another event whether to accept a lot, reject
Page 109
occurring it or inspect another lot
When end users get involved in

the final stages of testing, light
bulbs go on, and they often have
an “aha” moment. Unfortunately,
that is often too late
Frank R. Parth
Page 110
Project resources management
Easy PMP
Exam prep
Module 08
Project Resources
management
6 processes in project resources management

Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Page 111
Total 2 24 10 12 1 49
Project resources management Easy PMP Exam Preparation
Plan Resource management Tools & techniques
1. Project Charter 1. Expert judgement 1. Resource

2. Project management 2. Data Representation Management Plan
plan 3. Organizational Theory 2. Team Charter
3. Project Documents 4. Meetings 3. Project Documents
assets
Tools & techniques

Hierarchical chart Responsibilities assignment matrix
Can be in formed of: § Work packages in row

§ Work Breakdown headings and roles in
Structures (WBS) column headings; checked
§ Organizational Breakdown cells relate work to roles
Structure (OBS) § Who does what and who decide
§ Resource Breakdown what?
Structure
Page 112

Raci Tools & techniques
responsible accountable consult inform
§ Also approver or final

Those who do the work to Those whose opinions are Those who are kept up-to-
Approving authority
achieve the task. There is § The one ultimately sought; and with whom date on progress, often only
typically one role with a accountable for the there is two-way on completion of the task
participation type of correct and thorough communication or deliverable; and with
responsible, although completion of the whom there is just one-
others can be delegated deliverable or task, and way communication
to assist in the work the one to whom
required responsible is
accountable.
§ An accountable must
sign off (Approve) on work
that Responsible
provides.
§ There must be only one
Accountable specified for
each task or deliverable
Key output
resource management plan Team charter
§ Provides guidance on how project human § The team charter is a document that
resources should be defined, staffed, establishes the team values,
managed, controlled, and eventually agreements, and operating guidelines
released for the team.
§ Human resource plan should include, but § It may include:
not limited to, the following: § team values,
§ Roles and Responsibilities § communication guidelines,
§ Project Organization charts § decision-making criteria and process,
§ Staffing management plan (contained § conflict resolution process,
Page 113
in HR Plan; how and when team will § meeting guidelines, and
be staffed, trained, and released) § team agreements.
Estimate Activity resources Tools & techniques
1. Project Management 1. Expert Judgment 1. Resource

Plan 2. Bottom-Up Estimating Requirements
2. Project Documents 3. Analogous Estimating 2. Basis of Estimates
3. Enterprise 4. Parametric Estimating 3. Project Documents
Environmental Factors 5. Data Analysis Updates
4. Organizational Process 6. Project Management
Assets Information System
7. Meetings
Key output
Activity resource requirement
§ What type of resources and in what quantities

§ Obtained from staff acquisition and procurement
§ Include:
– Manpower
• Direct or indirect
• Internal or outsource
– Material
• Direct: hardware, other (software)
Page 114
• Indirect: consumable, supplies


Acquire resources
Figuring out which resources are pre-assigned
Negotiating for the best possible resource
Confirming human resource availability
Hiring of new employees
Creating virtual team if needed

Acquire resources Tools & techniques
1. Physical Resource
1. Project Management Plan 1. Decision Making Assignment
2. Project Documents 2. Interpersonal and Team 2. Project Team Assignment
3. Enterprise Environmental Skills 3. Resource Calendars
Factors 3. Pre-assignment 4. Change Requests
4. Organizational Process 4. Virtual Teams 5. Project Management Plan
Assets Updates
Updates
7. Enterprise Environmental
Factors Updates
Page 115
Assets Updates
Tools & techniques

Pre-assignment negotiation Virtual team
May occur before the staffing An important skill for project Is a group of individuals who
management plan has been managers to cultivate. may or may not see each other in
created and even before the person.
project formally begins, Staff assignments are
occasionally specific resources negotiated for several projects Instead, they typically use
will be pre-assigned to fill a communication tools to meet
role. online, share information, and
This situation can occur if the collaborate on deliverables
project is the result of specific
people being promised as
apart of a competitive
proposal
Key output
Physical resource assignments Project team assignments
Documentation of the The projects is staffed when

physical resource appropriate people have
assignments records the been assigned as per their
material, equipment, supplies, defined roles and previously
locations, and other physical described methods.
resources that will be used
during the project.
Page 116

Develop team Tools & techniques
1. Project Management Plan 1. Colocation 1. Team Performance

2. Project Documents 2. Virtual Teams Assessments
3. Enterprise Environmental 3. Communication 2. Change Requests
Factors Technology 3. Project Management Plan
4. Organizational Process 4. Interpersonal and Team Updates
Assets Skills 4. Project Documents
5. Recognition and Rewards Updates
6. Training 5. Enterprise Environmental
7. Individual and Team Factors Updates
Assessments 6. Organizational Process
8. Meetings Assets Updates
Tools & techniques

Interpersonal skills training Team building
§ Leading, involves It should be paid for by the Is any activity that enhances
establishing direction, performing organization or the or develops the cohesiveness of
aligning people to that functional manager and not the team
direction, motivating and by the customer or the
inspiring project Team building cannot be
§ Influencing
forced
§ Effective Decision-
making
Early Stage Late Stage
Directing Coaching Facilitating Supporting

Page 117
Project Life Cycle
Tuckman ladder performing
norming They are interdependent and

work through issues smoothly
Tools & techniques
Team members adjust and effectively. The role of
work habits and project manager in adjourning
behaviors to work as a mainly overseeing and
team. They begin to start delegating
trusting and working together. In this phase team
Project managers play completes the work and
more leadership role with move on from the
the team. project
storming
The team begins to
address project work,
forming
technical decisions and
project management
is the first stage approach. Team
where team meets and typically goes through some
learns about the project conflicts and difficulties
and their formal roles
and responsibilities
Tools & techniques

Ground rules Co-location
Establish clear expectation regarding Placing project team members in

acceptable behavior of project the same physical location to enhance
team members. Early the ability to perform as a team
commitment to clear guidelines Can include: a team meeting
decreases misunderstanding and room, places to post schedules,
increase productivity. Discussing etc.
ground rules allows team
members to discover values that
Page 118
are important to one another


Abraham Maslow’s
Tools & techniques
Hierarchy of Needs
Self-Actualization
Higher Needs
Self fulfillment, growth, learning
Esteem
Feeling of importance, contribution, promotion,
recognition, accomplishment, respect, attention
Lower Needs
Acceptance/Social
Being a part of the team, love, affection, approval, friends,
association
Security & Safety

Freedom from fear, job protection, stability, freedom form harm
Physiological
Basic biological needs such as food, clothing, sleep, shelter

Herzberg’s Motivation -
Tools & techniques
Hygiene
Hygiene Factors Motivating Agents
Professional growth, self

Working conditions, security
actualization
Good relationship with boss and
Work, responsibility
co-workers
Paycheck, status, personal life Recognition
Company policy, supervision Achievement, advancement
Page 119
McClelland’s
Tools & techniques
Achievement Motivation
§ States that people need three things
§ Focuses on using three human desires as the means to motivate
employees.
Achievement power affiliation

The desire to The desire to The desire to
accomplish influence the belong to a group,
something behaviour of or to fit in with
significant others. your co-workers.
Mc Gregor’s Theory X & Y Tools & techniques
Theory X: Theory Y:
• Presume that people are only • People are willing to work without
interested in their own selfish supervision, and want to
goals, unmotivated, dislike work achieve. People can direct
• People needs to be watched, their own effort
incapable, avoid responsibility,
and avoid work whenever
possible
• Constant supervision is necessary to
achieve desired results on a
Page 120
project

William Ouchi’s Theory Z Tools & techniques
• This theory is concerned with
increasing employee loyalty to
his/her organization.
• This theory emphasizes the
well-being of employees both
at work and outside of work, it
encourages steady
employment, it leads to high
employee satisfaction and
morale, and overall it results in
increased productivity

Fred E. Fiedler
Tools & techniques
Contingency Theory
States that a a task-oriented leader in
leader’s stressful times usually
effectiveness is using managerial skills
contingent
upon two sets
of factors
measures & a relationship-oriented
situational leader in relatively calm
factors in the times
Page 121
workplace usually using
leadership skills
Victor vroom
Tools & techniques
expectancy Theory
The anticipation of a reward or good outcome is a motivation
effort performance reward

The employee
believes that effort
The employee
will result in E p R values the reward
acceptable performance
The employee
believes that
acceptable performance
will result in the
desired reward
Leadership style Tools & techniques

autocratic democratic Laissez - faire
§ Little or NO information flowing up
§ Autocratic managers ARE § Democratic managers or down between project
NOT considering the WILL encourage the project manager and project team, so,
information (input) team to pool its team members are left to make
provided by project knowledge or decisions for themselves
team members in participation to make § Decision making authority is
making decisions the best decision DIFFUSE
§ The autocratic manager § Democratic § No leadership; out of formal
sees workers as highly management style is control
untrustworthy, needing to best used for people § Management is not directly
be watched and closely whose behavior fit with involved but manages and
Page 122
managed at all times; Theory Y consults as required. The

Theory X French term means “allow to
act” or “leave alone”

Form of power
Tools & techniques
project manager
legitimate reward penalty expert referent
Is also called Influence Influence Exists when the Based on

formal power: others through others through manager is an respect or
Influence reward and punishment expert on the Influence
others through recognition subject others through
formal authority Example: If this charisma
or because of Examples: module does Influence
his/her include a pay not pass others through
position raise, time off quality control their special
by the end of knowledge or
next week, you ability
are all fired”

Problem solving
Involves confrontation,
compromising Tools & techniques
but it is confrontation of Both parties sacrifice
something for the sake of
the problem and not the
person. reaching agreement Methods of
May be presented as
Resolves the root causes of
the problem
“lose-lose” since both
parties give up
Conflict
something
management
accommodating forcing avoiding
Downplays conflict instead Is considered to be the
of dealing with it head worst way to resolve Is technically not a conflict
on and does not project conflict. resolution technique but a
produce a solution to Forcing doesn’t help means of avoidance
Page 123
the conflict resolve the underlying
problems, it reduces team The conflict is never
Smoothing merely tries morale resolved
to diminish the problem It is almost never a good long-
term solution
Methods of Conflict Management

Use forcing Use Problem Solving/Confrontation
High
- When you are sure that you are right - To reduce overall project cost
- When an emergency situation exist (DO or DIE) - To gain commitment and create a common power base
- When stakes are high and issues are important - When there’s enough time & the skills are
- When you are stronger complementary
- Demonstrate power positition - When there is mutual trust, respect& confident
Use Compromising
- For temporary solution
- For backup if collaboration fails
Desire to satisfy
- When you can’t win
Oneself - When the others are as strong as you are
- When you’re not sure you are right
Use Avoiding/Withdrawing Use Smoothing/Accommodating

- When you can’t win or the stakes are low - To create obligation for a trade-off at a later date
- When the stakes are high but you aren’t ready yet - When stakes are low & liability is limited
- To gain time - To maintain harmony, peace & goodwill
- To maintain neutrality or reputation - When you’ll lose anyway
- When you think the problem will go away by itself
Low Desire to satisfy Others High

Manage Team Tools & techniques
1. Project Management 1. Interpersonal and 1. Change Requests

Plan Team Skills 2. Project Management
2. Project Documents 2. Project Management Plan Updates
3. Work Performance Information System 3. Project Documents
Reports Updates
4. Team Performance 4. Enterprise
Assessments Environmental Factors
Page 124
Assets


Constructive & Destructive Team Roles
Aggressor: Opposed to the project and very hostile.
Blocker: Interrupts the communication flow and block access to information.
Withdrawer: Doesn’t participate in any discussion
Destructive
role that bring Recognition Seeker: Prioritize own benefit over the project and can jeopardize the project if
there is any benefit.
project down
Topic Jumper: Constantly changes topic and brings up unrelated facts.
Dominator: Present opinion forcefully.
Devil’s Advocate: Takes an opposite vies to most idea and disrupts communication.
Initiator: Initiates ideas.

Information Seeker: Actively seeks to gain more information and knowledge.
Constructive
Information Giver: Share Information. roles that help
Encourager: Encourages team members and always maintains a positive attitude. project move
Clarifiers: Makes sure everyone at the same level of understanding. forward
Harmonizer: Enhances information in such a way that understanding is increased.

Summarizer: Summarize the overwhelming detail to a simple level for everyone to understand.
Gate Keeper: Draws other in or judges whether the project should continue at different stages.

50% of project conflict
comes from these 3 sources
Technical Human
Personality Cost Procedure Priorities Schedules
Opinions Resources
Less common sources of More common sources

Conflict of Conflict
Sources of
Page 125
Conflict
Important terms
Hallo effect perquisites Fringe benefits
The tendency to rate high or low Giving special rewards to Standard benefits that are
on all factors due to the some employees such as formally given to all
impression of high or low rating assigned parking spaces, employees, such as education
on some specific factors corner offices, executive benefit, insurance, and profit
E.g. “You are a good dining, etc. benefit
programmer. Therefore,
we will make you a Project
Manager and also expect
you to be great”. (But,
good programmer is not
always a good Project
Manager )

Control Resources Tools & techniques
1. Work Performance
1. Project Management 1. Data Analysis
Information
Plan 2. Problem Solving
2. Change Requests
2. Project Documents 3. Interpersonal and
3. Work Performance Team Skills:
Plan Updates
Data 4. Project Management
4. Agreements Information System
Updates
Assets
Page 126


1 Identify the problem Tools & techniques
2
Investigate Problem
3
Analyze solving
4
Solve
5 Check the Solution
Rewards and motivation are an oil

change for project engines.
Do it regularly and often
Woody Williams
Page 127
Project resources management Page 128
Project communication management
Module 09 Easy PMP
Exam prep
Project
communication
management
Project
communication
Management
A systematic approach to includes the processes
communicate efficiently and
required to ensure timely and
effectively with all the parties
involved in the project, such as appropriate generation,
stakeholders, team members, the collection, distribution,
sponsor, higher management, storage, retrieval, and ultimate
vendors, and others disposition of project Page 129
information
Project communication management Easy PMP Exam Preparation
3 processes in project communication

management
Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Total 2 24 10 12 1 49

Plan Communication Tools & techniques

management
1. Project Charter 1. Expert judgement 1. Communication
2. Project management plan 2. Communication Management Plan
3. Project Documents Requirement Analysis 2. Project Management Plan
4. Enterprise environmental 3. Communication Updates
factors Technology 3. Project Documents
5. Organizational process 4. Communication Models Updates
assets 5. Communication Methods
6. Interpersonal and Team
Skills
7. Data Representation
8. Meetings
Page 130


Tools & techniques
Communication requirement analysis Communication requirement analysis

Analysis of communication Communication Channels
requirements determines the type, § Adding a single person on a
format, value, and information needs of the project can have a significant
project stakeholders. impact on the number of paths or
channels of communication that
Resources in a project are allocated exist between people
only upon communicating information
that contributes to the success of the
project or where a lack of
communication will cause failure.
Tools & techniques
Communication requirement analysis
Formula 4 people create 6

n(n - 1) communication channels
Channels =
2
where n = number of people on the
project
5 people create 10 Page 131

communication channels
Tools & techniques

Communication models
The sender’s responsibilities to:
• Encode the message clearly
• Select a communication method
• Send the message
• Confirm that the message was sender receiver
understood by the receiver
The receiver’s responsibilities to:

• Decode the message
• Confirm that the message was
understood

Communication
Tools & techniques
methods
interactive push pull
Meetings, phone Letters, memos, Intranet sites,

calls, video reports, reports, e-learning,
conferencing, e-mails, faxes, knowledge
etc. voice mails, press repositories, etc.
releases, etc.
Page 132

Tools & techniques
Communication barriers
Noise
• Noise includes any
interferences that might
be compromise the Culture Distance
understanding of the
message,
Improper
• Such as the distraction of Language encoding of
the receiver, variations in
messages
the perceptions of
receivers, or lack of Saying “that is a
appropriate knowledge or Hostility bad idea”
interest.
Communication terms
Non verbal ACTIVE listening
55% of all Is vocal but not verbal

Receiver confirms,
communication are agrees, and asks for
non verbal (including Pitch and tone of
voice, volume clarification to ensure
physical mannerism) that the sender was
understood
Takes place through
body language such
as facial expressions,
Page 133
postures, hand
motions, etc. paralingual
Communication terms
Effective Listening
Refers to the verbal and
Requires the listener’s nonverbal cues a speaker
full thought and must monitor to see
attention whether the listener fully
comprehends the message
Watching, Repeating,
Feedback, Active “Do you understand what I
Listening, Paralingual have explained?, usually
asked by sender
feedback
Communication types
Informal written Formal written Informal verbal Formal verbal
§ Frequently used to § Used essentially § Mostly used to § Used for special

communicate and convey for prominent communicate events.
information documents that go information efficiently Announcements,
into the project and quickly and public relations
§ Ex: Email, record
messages, notes § Ex: Meeting, § Ex: Speeches, mass
§ Ex: Contracts, legal discussions, phone communications,
notices, project calls, conversation presentations,
documents (e.g. bidder conference
Page 134
Project Charter),
important project
communications,
complex problems

Communication management plan
Key output Methods or technologies used to
convey the information, such as
memos, email, and/or press release
Communication management plan
Time frame and frequency for the
distribution of required information
§ Stakeholder communication
requirement
Method for updating and refining
§ Information to be the Communication Management
communicated, including Plan
format, content, and level of
detail Glossary of common terminology
§ Reason for the information
distribution
§ Person responsible for
communicating the
information
Manage communications
The process of making

relevant information available
to project stakeholder in a
timely manner as planned.
Page 135
Manage communications Tools & techniques
1. Project Management 1. Communication 1. Project

Plan Technology Communications
2. Project Documents 2. Communication Methods 2. Project Management
3. Work Performance 3. Communication Skills Plan Updates
Reports 4. Project Management 3. Project Documents
4. Enterprise Information System Updates
Environmental Factors 5. Project Reporting 4. Organizational Process
5. Organizational Process 6. Interpersonal and Team Assets Updates
Assets Skills
7. Meetings
Techniques for effective communication
Sender-receiver models
Communication include
Choice of media
Performance Report
Writing style
Deliverables status
Meeting management techniques Schedule progress
Page 136
Facilitation & Listening techniques Cost incurred, etc.


Tools & techniques
Communication competence feedback
A combination of tailored § Feedback is information

about reactions to communications,
communication skills that
a deliverable, or a situation.
considers factors such as
§ Feedback supports
clarity of purpose in key
interactive communication
messages, effective
between the project
relationships and
manager, team and all other
information sharing, and
project stakeholders.
leadership behaviors
§ Examples include coaching,
mentoring, and negotiating
Tools & techniques
Non verbal presentations
Examples of nonverbal A presentation is the formal

communication include delivery of information and/or
appropriate body language to documentation
transmit meaning through
gestures, tone of voice, and
facial expressions.
Page 137
Tools & techniques
Project reporting Project reporting
Performance reports Bar charts, S-curve,

organize and summarize histograms, tables,
the information gathered variance analysis, earned
and show how the project value analysis, forecast
is progressing against data, Earned Value
various baselines such as
scope, time, cost, quality,
Report, Status Reports,
and other elements Forecasting Report, Trend
Report, Variance Report
Key output
Project communications
Project
communication may
include performance,
status, progress, cost
incurred, and other
reports.
Page 138

Monitor communications Tools & techniques
1. Project Management 1. Expert Judgment 1. Work Performance

Plan 2. Project Management Information
2. Project Documents Information System 2. Change Requests
3. Work Performance 3. Data Analysis 3. Project Management
Data 4. Interpersonal and Plan Updates
4. Enterprise Team Skills 4. Project Documents
Environmental Factors 5. Meetings Updates
Assets
Key output
Performance reports Issue log forecasts

§ Where the project § An issue is an obstacle that
Predicting future
stands, What we threatens project progress
object status and
have accomplished and can block the team from
progress
§ Actual VS Plan: achieving its goals.
§ An issue log is a document to
ahead, behind, on
record issues that require a
time/budget
§ Percent completed, solution.
deliverables § It helps monitor who is
responsible for resolving
Page 139
completed
specific issues by a target
date.
PMs are the most creative pros

in the world; we have to figure
out everything that could go
wrong, before it does
Fredrik Haren

Page 140
Project risk management

Tools & techniques
Easy PMP
Exam prep
Module 10
Project Risk
management
Easy PMP Exam prep
What is risk?
UN
known
expected
desirable
predictable
Uncertain event
opportunities
Page 141
risk
risk threats
Project risk management EasyEasy PMP Preparation
PMP Exam Exam prep
What is risk Tools & techniques

management?
All projects
are risky
Identify and manage risks that are not
addressed by the other project
management processes
To increase the probability and impact

of positive events and to decrease the
probability and impact of adverse
events
Individual risk Overall project risk

At the beginning of
At the start of
major processes
a project
When there are significant

changes
Page 142
When risk management performed ?


7 processes in project risk management
Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Total 2 24 10 12 1 49
Risk management PIER –Tools

I’M & techniques
processes
1. Plan Risk 1. Implement Risk 1. Monitor Risk

Management Responses
2. Identify Risk
3. Perform Qualitative
Risk Analysis
4. Perform
Quantitative Risk
Analysis
Page 143
5. Plan Risk Responses
planning executing Monitoring & controlling

Qualitative risk Quantitative risk

Plan risk management Identify risk
analysis analysis
§ Tailored risk § List of Risks (Risk § Probability § Numerical models
management process Register) § Impact § Combined outcomes
§ Risk threshold § Risk Owners § Root causes § Confidence limits
§ Process rules § Importance § Sensitivity analysis
§ Risk management § Prioritized list § Prioritized list
plan
updates
Implement risk Plan risk responses

Monitor risk responses
Risk § Status and trends

§ Reporting
§ Actions
§ Project plan updates
§
§
Strategies
Risk Action Owners
Management § Trends in risk
exposure
§
§
Timing
Analysis
Project plan updates
Process Flow § Risk reassessment §
Diagram
Plan Risk Tools & techniques
PIER – I’M
Management
How to approach & plan
Risk Management Plan
risk management activities
Page 144
Easy PMP Exam prep


Plan risk management Tools & techniques
1. Project charter 1. Expert judgement 1. Risk Management Plan

2. Project management 2. Data Analysis
plan 3. Meetings
3. Project documents
4. Enterprise
Assets
Stakeholders have a low tolerance

for risk and usually try to avoid risk and
withdraw from risky situation
Easy PMP Exam prep

RISK Averse Page 145
RISK
Seeker
The one who likes to take risks,
actively seek risks, in the belief that
higher the risk equals higher returns
Easy PMP Exam prep
Key output RISK MANAGEMENT PLAN
Risk management plan

§ What level of risk will be considered
Risk management plan is tolerable for the project
a roadmap to the other six § How risk will managed
§ Who will be responsible for risk
risk management process activities
A description of how risk § The amount of time and cost that will
will be categorized allocated to risk activities
§ How risk findings will be communicated
Page 146

Identify risk Tools & techniques
1. Project management 1. Expert judgement 1. Risk register

plan 2. Data Gathering 2. Risk report
2. Project documents 3. Data Analysis 3. Project documents
3. Agreements 4. Interpersonal and updates
4. Procurement team skills
documentation 5. Prompt lists
Assets
Data gathering Tools & techniques

brainstorming Delphi technique interviewing Root cause analysis
The goal of A way to reach Interviewing Can be used to

brainstorming a consensus of experienced identify a
is to obtain a experts project team range of risks
comprehensive list members, emanating
of project risks stakeholders, from a single
and subject root cause or
matter expert few root
to identify risks causes
Page 147
Key output
Risk register
§ Is a component of Project Documents

§ Contains all details of identified risks, including description,
category, cause, proposed responses, owners, and current
status.
§ A document containing the results of qualitative risk
analysis, quantitative risk analysis, and risk response
planning
Evaluate E
PI R – I’M
Risks
Easy PMP Exam prep
Page 148
Assessment & analysis the

Qualitative & Quantitative
consequences

Perform qualitative Tools & techniques

risk analysis
1. Project management 1. Expert judgement 1. Project documents

plan 2. Data Gathering updates
2. Project documents 3. Data Analysis
3. Enterprise 4. Interpersonal and
Environmental Factors team skills
4. Organizational Process 5. Risk categorization
Assets 6. Data representation
7. Meetings
Activities perform in qualitative risk analysis
Determine which risk

events warrant a response
Determine the probability

and impact
Determine which risk to
further analyze or go directly to
risk response planning
Document non critical risks
Page 149
Determine the project
overall risk ranking
RISK PROBABILITY &

IMPACT
ASSESSMENT
1 2 3 4
Estimate probability of Estimate impact of each

risk event Calculate the severity Use Severity to identify
each risk event the risks worth planning
Example: Probability x Impact
High=3
Medium=2
Low=1
10% through 90% High - medium - low Risk score prioritizing

Easy PMP Exam prep
RISK PROBABILITY &

IMPACT matrix
1 2 3 4
A condition based on § General scale: 0.01 § Ordinal scale: very The multiplication of the
the combined probability up to low, low, scale value of probability
probability and 0.99 moderate, high, and impact (P x I)
impact scales § Ordinal scale : very very high The result is classified
unlikely to almost § Cardinal : linear or into high risk, moderate
certain non linear risk, or low risk
Page 150
Probability & impact Risk probability scale Risk impact scale multiplication
Easy PMP Exam prep
Easy PMP Exam prep

VS quantitative
Qualitative
Objective
Subjective
Accomplished when there is
Always Accomplished value to expend time and effort
Takes time and expertise
Fast
Predicts likely outcomes based
on review of multiple risks
Addresses individual risks
Uses numerical analysis such as
Probability Distribution, EMV,
Scores risks using probability Decision Trees, etc.
x impact
Identifies risks with greatest
Prioritizes Individual Risks impact to project objectives
Output is probability of meeting
Output is a prioritized list of defined project outcomes
risks

Perform quantitative Tools & techniques

risk analysis
1. Project management 1. Expert judgement 1. Project documents

plan 2. Data Gathering updates
2. Project documents 3. Interpersonal and
3. Enterprise team skills
Environmental Factors 4. Representations of
4. Organizational Process uncertainty
Assets 5. Data analysis

Project risk management Easy PMP Exam Preparation
Key objectives Perform Quantitative Risk Analysis

Perform sensitivity analysis to figure out
1 which risks have the most impact.
2 Perform further on the highest-rated risks
Determine how much schedule and cost

3 reserves are needed in the project
Determine which risks require the most

4 attention and planning
Develop realistic scope, schedule, or cost

5 targets that are achievable

Analysis & modeling
Tools & techniques
techniques
Sensitivity analysis Expected monetary value (evm) simulation
Analysis to define the A statistical concept that A model to translate the

risk that has the most calculates the average outcome uncertainties into potential
potential impact on the when the future includes impact to project
project scenarios that may or may not objective. Performed using
happen) Monte Carlo technique
Decision tree Tornado diagram
A diagram to analyze project

Diagram that describes
sensitivity to cost or other factors
Page 152
decision under consideration

and the implication of Ranks the bars from
choosing greatest to least on the
project

• You are organizing the international
conference. There is 20% probability that paper
Tools & techniques
prices will increase by 15%, thus costing you
IDR 2 million in funding. What is the expected
monetary value of the cost increase?
• EMV = 0.2 * 2,000,000 = 400,000 rupiahs.
Expected
Monetary Value

Determine Contingency
Tools & techniques
Reserves using EMV
Four risks impact Project XYZ, they are
risks A, B, C, D Maximum $ Contingency $
Risk Probability
§ Risk A, 30% chance of occurring and Impact of Risk required
will cost the project $40,000 A 30% 40,000 12,000
§ Risk B, 40% chance of occurring and B 40% (10,000) (4,000)

will save the project ($10,000)
C 75% 60,000 45,000
§ Risk C, 75% chance of occurring and
will cost the project $60,000 D 50% 30,000 15,000
§ Risk D, 50% chance of occurring and Total

We add $68,000 to our budget
68,000
Page 153
for contingency reserve needs
will cost the project $30,000
Determine Contingency
Reserves using EMV
Tools & techniques
• If Risk D occurs, how much is left in contingency reserves?

– Contingency Reserves : $ 68,000
– Total required for Risk D : $ 30,000 (negative risk)
– Remaining amount : $ 38,000
• If Risk B occurs, how much is left in contingency reserves?
– Contingency Reserves : $ 68,000
– Total required for Risk B : $ 10,000 (positive risk)
– Remaining amount : $ 78,000
Decision Tree Analysis Tools & techniques

$0 impact
Commercial
implementation successful
Cost = $2,250,000
Buy commercial
$5,000,000 impact
package
Commercial
implementation failure
Software buy $0 impact

Custom implementation
Cost = $1,325,000 successful
Build in-house
custom
$5,000,000 impact
Custom implementation
failure
Page 154
Initial Cost Risk Cost Probability Total
Commercial
$2,250,000 $5,000,000 10% $2,750,000
Package
Custom Software $1,325,000 $5,000,000 30% $2,825,000

Respond

Develop responses to risk Tools & techniques
based on its priority.
Responses must address
both positive risks and
negative risks.
Risks
What can we
do about it?
PIE – I’MR PMI-RMP Pass Thru

Plan risk responses Tools & techniques
1. Project management plan 1. Expert judgement 1. Project documents

2. Project documents 2. Data Gathering updates
3. Enterprise Environmental 3. Interpersonal & team skills
Factors 4. Strategies for threats
4. Organizational Process 5. Strategies for
Assets opportunities
6. Contingent response
strategies
7. Strategies for overall
project risk
Page 155
8. Data analysis
9. Decision making

Plan Risk Response

Risk Response planning must be appropriate to:
§ Severity of the risk
§ Cost in meeting the challenge
§ Timely to be successful
§ Realistic
§ Agreed by all parties
§ Owned by responsible person
amta Opportunities
02
Avoid (positive risk)
Mitigate
Transfer Exploit
Acceptance Enhance
Share
Acceptance
Page 156
threats
(negative risk) eesa

Strategy for Negative Risks Tools & techniques
§ Is a very § Means to make it less § Transferring the risk § Accepting the

appropriate tool for § e.g. using proven impact to a third consequences
working with technology to party together with § May be the best
undesirable risk in strategy if the
lessen the the ownership of
many probability that the responses cost or impact of
circumstances product does not § Contractual the other
§ Changing the project strategies is too
work), reducing the agreements and
plan to eliminate the great
risk event value insurance are
risk or condition or (e.g. use of fixed common ways to
to protect the contract), or both transfer risks
project deliverables
from its impact
avoidance mitigation transfer acceptance
Acceptance Response Tools & techniques

Passive acceptance Active acceptance
To accept a risk without a contingency reserve.

No action except to document the To accept a risk by developing a contingency
strategy, leaving the project team to deal plan to execute if the risk event occurs
Page 157
with the risks as they occur, and to or with a contingency reserve, including
periodically review the threat to ensure amounts of time, money, or resources to
that it does not change significantly handle the risks.
Risk Event: A probability of the
Is it possible to
material delivery will be
Avoid?
delayed Tools & techniques
Y
Y/N Avoid Eliminate the activity that requires the
use of the material
Is it possible to
mitigate? Threat or
Y
Reduce the chance of delay by Negative Risks
Y/N Mitigate establishing close contracts with
N the supplier Decision Flow
Is it possible to
transfer?
Chart
Make a third party handle the work that
requires the use of the material
Y
Y/N Transfer
N Active: Develop a Contingency Plan Either wait for delivery or assign
money to rent a replacement
Accept
Passive: Respond Appropriately
Strategy for positive Risks Tools & techniques
§ Trying to remove any § This strategy is used § Improve chances § Accepting an opportunity
uncertainty to increase the of the risk is willing to take
§ Examples of directly probability and/or the occurring by working advantage of it if
exploiting responses positive impact of an with another party the opportunity
include assigning the opportunity § Examples of comes along, but
organization’s most § Examples of sharing actions not actively
talented resources to enhancing include forming
pursuing it
the project to reduce opportunities risk-sharing
the time to include adding more partnership, teams,
completion, or to resources to an special purpose
provide better quality activity to finish companies, or joint
than originally planned early ventures
Page 158
exploit enhance share acceptance


opportunity: The adaption of
Is it possible to
new technology may result in
Exploit?
cost saving Tools & techniques
Y
Y/N exploit Explore the new technology and team
invests it into the project
Is it possible to
enhance? Opportunity or
Y
Set up a team to work parallel with positive Risks
Y/N enhance project team to identify how the
N later can reap benefits of i Decision Flow
Is it possible to
share?
Chart
Y Collaborate with other team, create a joint

Y/N share team to explore this further
N
Accept Do not do anything as of now, just keep it

in risk register and review it periodically
Plan Risk Responses Tools & techniques

Negative Risk Response Strategies Positive Risk Response Strategies
Remove Add
activities
AVOID EXPLOIT activities
or people (Eliminate the Cause)
CAUSE (Enable the Cause) or people
Ex:
MITIGATE ENHANCE
PROBABILITY & Ex:
Training (Reduce probability and/or (Increase probability and/or
Prototype impact) IMPACT impact)
Incentives
Ex:
Insurance TRANSFER SHARE
Fixed (Find 3rd party to be OUTSOURCE (Find 3rd party to support and Investors
Partnering
Price accountable or do work) share in gain)
Contract
Negative or Positive
Page 159
Risk Response Strategies
ACCEPT
(No actionable response)
Risk Response Strategies Tools & techniques

High Probability
Mitigate/ Avoid/
Enhance Exploit
High Impact
Low Impact
Transfer/
Accept
Share
Low Probability
Risk terms
Secondary risk Residual risk Risk trigger
§ Risks are generated from § The remaining risk after a Risk § Risk symptom or warning sign is an
implementing the risk response. Response Plan or Contingency indication that a risk has
§ Secondary Risk should Plan is implemented. occurred or is about to occur
never have a higher Risk § For example, a response may
address 80% of the risk impact,
Rating than the primary risk
so, the remaining 20%
it is associated with. represents the Residual Risk.
§ For example, a response to § Contingency Plans or Fallback
use a even organizer to Plans should be in place to
organize a conference could respond to known Residual
lead to potential even Risks.
organizer management § New Residual Risks may be
Page 160
risks. Document the event discovered during a Risk Audit,

log on the Risk Register and
organizer management risks
Perform Qualitative Risk
as Secondary Risks. Analysis.

Risk terms
Contingency plan Fallback plan workarounds
§ A plan that you implement if a § Plan B, which is to be § Unplanned responses for unplanned
risk occurs during project implemented if the risks that occur during project
execution. contingency plan failed. execution. Both risk and
responses are not planned.
Contingency reserves Management reserves

Money or time assigned to Money or time assigned to deal
deal with accepted risk, if they with risks that occur during
occur. project execution.
Reserves for known unknown risk. Reserves for unknown unknown risk.
May require a change to the
schedule and cost baseline
Reserves Tools & techniques
Activity Work Control

Estimates Packages Account
Project Contingency Cost

Estimate Reserve Baseline
Page 161
Management
Reserve Cost Budget
Reserves Tools & techniques
Critical path Contingency Management Project

duration reserves reserves. schedule
Cost of the Contingency Management Project

activities reserves reserves. budget
Implement
Risk responses
Tools & techniques
PIER – ’M I
Implementing agreed-upon
risk response plans
Page 162
PMI-RMP Pass Thru


Implement risk Tools & techniques

responses
1. Project management 1. Expert judgement 1. Change requests

plan 2. Interpersonal and 2. Project documents
2. Project documents team skills updates
3. Organizational Process 3. Project management
Assets information system

Ensure that agreed-upon risk responses are actually
executed. Tools & techniques
A common problem with Project Risk Management
is no action is taken to manage the risk.
Only if risk owners give the required level of effort
to implementing the agreed-upon responses will the
overall risk exposure of the project and individual
threats and opportunities be managed proactively
Risk Owner: a risk must be assigned to a person,

who will develop risk response and carry out or “own”
the risk
Page 163
M
Monitor PIER – I’
Risks
How effective risk

responses and are there
new risks occurred?
PMI-RMP Pass Thru

Monitor risk Tools & techniques
1. Project management 1. Data analysis 1. Work performance

plan 2. Audits information
2. Project documents 3. Meetings 2. Change requests
3. Work performance 3. Project management
data plan updates
4. Work performance 4. Project documents
reports updates
assets updates
Page 164


Tools & techniques
Risk reassessment Risk audit Variance & trend analysis
Monitor risk often Examines and documents the § Variance analysis

results in effectiveness of risk focuses on the
identification of new responses in dealing difference between
with identified risks what was planned
risks and reassessment
and their root causes, and what was
of risk, and should as well as the executed
be scheduled effectiveness of the § Trend analysis
regularly risk management shows how
process performance is
trending
Assumption is the mother of all

screw-ups
Wethern’s Law of Suspended Judgementams
Page 165
Project risk management Page 166
Project procurement management
Easy PMP
Exam prep
Module 11
Project
procurement
management
Project procurement
Management
Procurement management involves includes the processes
two important kinds of activities-
necessary to purchase or
managing contracts with suppliers
and clients by developing and acquire products, services, or
controlling any changes and results needed from outside
ensuring the project team fulfills its the project team
contractual obligations Page 167
Project procurement management Easy PMP Exam Preparation
3 processes in project procurement

management
Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Total 2 24 10 12 1 49
Project contract
§ The contract should be formal and in writing is possible.
§ All product and project management requirements should be stated
in the contract.
§ Changes must in writing; if it is not in the contract, it can only be
implemented through the Integrated Change Control process.
§ It is mandatory to complete all items specified in the contract, or a
change order should be issued.
§ The contract should help reduce project risks.
Page 168
§ contract is legally binding and backed by a court system in most

countries. Easy PMP Exam Preparation
Contracting environment

centralized In a centralized contracting environment, a

procurement manager from the procurement
department may handle procurements on several
projects
decentralized
In a decentralized contracting environment, a
procurement manager is assigned to a project full time and
reports directly to the project manager
Types of contract
Contract
Types
Cost Time &

Fixed
Reimbursable Materials
Price (FP)
(CR) (T & M)
Fixed Price
Firm Fixed Fixed Price Economic Cost Plus Cost Plus Cost Plus Cost Plus
Price Incentive Price Fixed Fee Incentive Award Fee percentage
(FFP) Fee (FPIF) Adjustment (CPFF) Fee (CPIF) (CPAF) of Costs (CPPC)
Page 169
(FP-EPA)
Fixed Price
Contract
§ One price for everything

§ The risk is on the seller since any cost overruns may not
be passed to the buyer
§ Is very popular when the scope of works thoroughly defined
and completely known
§ Can be more expensive than cost reimbursable
§ Buyers usually write a detailed Statement of Work (SOW)
document
§ Example: Building a house at a fixed price
Type of fixed price

contracts
Firm fixed price Fixed price economic price
adjustment (EPA)
Incentive fee for meeting a
The price is fixed, with target specified in the For the case when
no provision for cost or contract, e.g. completed fluctuation in the exchange
performance overruns ahead of schedule rate/interest rate may
impact the project
Example: Contract =
The risk is entirely shifted
$500,000 and for every The economic stipulation may
to the seller month early the project is be based on the interest rate,
Page 170
finish and additional $5,000 is the consumer price index,

paid to seller currency exchange rates, or
other indices
Fixed price plus incentive
Cost
reimbursable
Contract
§ Payment to the seller for its actual cost
§ The risk is on the buyer
§ Often used when the buyer knows what is needed but
does not know how to do it
§ Simpler scope of work
§ Seller usually writes a detailed statement of work
§ Example: Building a house at cost reimbursable price
Types of Cost Reimbursable Contracts

Cost plus percentage
Cost plus fixed fee Cost plus incentive fee Cost plus award fee
cost
The seller is reimbursed for
The buyer pays the
The seller passes the The seller passes the all legitimate costs, but the
actual cost plus a
cost back to the buyer and cost back to the buyer and majority of the fee is only
percentage of the cost as
receive additional fixed gets an incentive fee for earned based on the
a fee. This is illegal in the
fee upon completion of meeting a target, e.g. satisfaction of certain United States.
project (risk on buyer) broad subjective
keep the cost low (risk
performance criteria
on buyer and seller) Example: Contract = Cost
defined and incorporated
Example: Contract = plus 5 percent of cost as
into the contract
Cost plus a fee of a fee.
Example: Contract =
$100,000 Cost plus for every Example: Contract =
money early the Cost; Maximum award =
Page 171
project is finished, an $50,000; every month
additional $5,000 is performance is achieved,
and additional $5,000
paid to the seller. will be awarded to the
seller
Time & material

Contract
§ Buyer has a medium amount cost of risk

§ Used when scope of work is not completely defined, but everyone agrees
that the project is relatively small and the need is urgent
§ Quick to create, good choice when you are hiring people to augment
your staff
§ Require the most day-to-day oversight from buyer
§ Example: In drilling operation, the seller will charge at x dollar
amount/hour. In case of a delay, then the seller will still charge the
buyer for the delay at its hourly rate
Who bears the risk?

Fixed price A Seller. Since the price is fixed, cost overruns may not be passed on to the
buyer and must be borne by the seller. Since all costs must be
reimbursed to the seller, the buyer bears the risk of cost overruns
Cost plus fixed fee B buyer. Since all costs must be reimbursed to the seller,
the buyer bears the risk of cost overruns
Cost plus incentive fee C Buyer & seller. The buyer bears most of the risk here, but the
incentive fee for the buyer motivates the seller to keep
costs down
Page 172
Time & material d buyer. The buyer pays the seller for all time and materials the seller
applies to the project. The buyer bears the most risk of cost overruns

Low Cost Plus Fee (CPF) or Cost High
Plus Percentage of Cost (CPPC)
Risk in contracting
Cost Plus Fixed Fee (CPFF)
Cost Plus Award Fee (CPAF)

Objective of buyer:
Cost Plus Incentive Fee (CPIF)
To place the To minimize the degree

maximum of risk while increasing Time & Material (T & M)
performance risk on profit potential.

Fixed Price Economic Price
the seller while Adjustment (FPEPA)
maintaining a degree Fixed Price Award Fee (FPAF)

of incentive for
efficient and Fixed Price Incentive Fee (FPIF)
economical High
Fixed Price (FP)
Low
performance.
Seller Risk Buyer Risk
Objective of SELLER:

Plan Procurement management Tools & techniques
1. Expert judgement 1. Procurement Management

1. Project Charter
2. Data Gathering Plan
2. Business Documents
3. Data Analysis 2. Procurement Strategy
3. Project management plan
4. Source Selection Analysis 3. Bid Documents
5. Meetings 4. Procurement Statement of
5. Enterprise environmental
Work
factors
5. Source Selection Criteria
6. Make-or-buy Decisions
assets
7. Independent Cost Estimates
8. Change Requests
9. Project Documents Updates
Page 173
10.Organizational Process
Assets Updates
Tools & techniques
Market research Make-or-buy analysis

§ Market research includes § Is a general management
examination of industry and techniques used to determine
specific seller capabilities whether particular work can best
be accomplished by the project
§ The team may also refine specific team or must be purchased from
procurement objectives to leverage outside sources
maturing technologies while
balancing risks associated with the § Influenced by: expertise, capacity,
breadth of sellers who can provide cost, core competence, trade
the desired materials or services. secret, etc.
Tools & techniques
Source selection analysis
§ It is necessary to review the prioritization of the competing

demands for the project before deciding on the selection
method
§ Commonly used selection methods: Least cost, Qualifications

only, Quality-based/highest technical proposal score, Quality
Page 174
and cost-based, Sole source, Fixed budget


Key output
Request for proposal (RFP)
Procurement document
Request a price, but also a detail
proposal on how the work will be
accomplished, who will do the
work, company profile, company
Request for quotation (RFQ) experiences, etc.
Request a price quote per item

Invitation for bid (IFB)
Request one price for all work
Independent cost estimates

Key output
§ Organization may elect to either
prepare its own independent
Output selection criteria estimate or have a cost estimate
prepared by an outside
§ Used to rate or score the professional estimator to serve as
proposal. In common a benchmark on proposed
practice, the criteria are not responses.
included in the procurement § Significant differences in cost
document (only use as estimates can be an indication
internal purposes) that the procurement SOW was
§ All criteria should be deficient or ambiguous, or that
ranked, using most and less the prospective sellers either
Page 175
priority, based on the misunderstood or failed to
weight of each criteria respond fully to the procurement
SOW
Non competitive procurement

Single Source
Also known as PReferred Seller Also known as only Seller
• The buyer has worked The seller may be the only

with the seller before and one in the market or may
due to good experience have a patent, thus limiting
and other convenience the option of selecting
with the seller other sellers
• The buyer does not want
to look for another seller
Sole source
conduct procurements
The process of obtaining seller

responses, selecting a seller, and awarding
the procurement, usually in the form of
a contract.
Page 176

Conduct procurements Tools & techniques
1. Project Management 1. Expert Judgment 1. Selected Sellers

Plan 2. Advertising 2. Agreements
2. Project Documents 3. Bidding Conferences 3. Change Requests
3. Procurement 4. Data Analysis 4. Project Management
Documentation 5. Interpersonal and Team Plan Updates
4. Seller Proposals Skills 5. Project Documents
Environmental Factors 6. Organizational Process
6. Organizational Process Assets Updates
Assets
Tools & techniques
Bidder conference Advertising
Meeting with all prospective § Advertising can lead to an

uncontrolled number of
sellers and buyers prior to
bidding participants who only
submittal of a bid or
meet the minimum
proposal
requirement, but advertising
is also used when competitive
market force determines the price
and the award goes to the
Page 177
lowest bidder
Tools & techniques
Procurement negotiations Proposal evaluation techniques

• Weighting System:
• Obtain fair and
weighting based on each
reasonable price evaluation criteria
• Develop good relationship • Screening System:
with the seller eliminating sellers that do not
meet minimum requirement
• Independent Estimates:
comparing the cost to a created
in-house estimation with an
outside assistance
• Past Performance History
Key output
Selected sellers agreements Resource calendars
Those who are in a Is also called an They are documents

competitive range based understanding, a contract, containing the quantity
on the outcome of the subcontract, or a purchase and availability of
proposal or bid evaluation order) is a legally binding, resource and the dates
and who have been
formal agreement each specific resource
negotiated (all the
procurement-related between two parties that can be available or idle
items, terms and obligates the seller to
conditions, and other provide the specified
Page 178
factors) with product, service, or result

and obligates the buyer to
compensate for it

Control procurement Tools & techniques
1. Project Management Plan 1. Closed Procurements

1. Expert Judgment
2. Project Documents 2. Work Performance
2. Claim Administration
3. Agreements Information
3. Data Analysis
4. Procurement 3. Procurement
4. Inspection
Documentation Documentation Updates
5. Audits
5. Approved Change 4. Change Requests
Requests 5. Project Management Plan
6. Work Performance Data Updates
7. Enterprise Environmental 6. Project Documents
Factors Updates
8. Organizational Process 7. Organizational Process
Assets Assets Updates
Manage contract changes
Changes To change the contract Addendum

content (time, scope,
Contract Changes are To add article/sub article
cost)
requested from: that has not been made
• Seller Request in the original contract
An amendment makes a
(Material, resources
change to a contract
Availability) An Addendum makes an
addition to a contract
• Buyer Request (Change
Page 179
of Scope)
Amendment
Tools & techniques
Procurement audits Claims administration

§ A structured review of the § Claims, disputes, or appeals are
procurement process, requested when the buyer and
from the Plan seller disagree on scope, the
Procurement process impact of changes, or the
through Control interpretation of some terms
Procurement process and conditions in the contract
§ Objective of a § All claims should be
procurement audit is to documented, processed,
identify successes and failures monitored, and managed
Key output
Deliverable acceptance Lesson learned documentation

§ An issue is an obstacle that
The buyer provides the seller
threatens project progress
with formal written notice that
and can block the team from
the deliverables have been accepted achieving its goals.
or rejected § An issue log is a document
to record issues that require
a solution.
§ It helps monitor who is
responsible for resolving
Page 180
specific issues by a target

date.

Key output
Contract closeout Administrative closure

• Occur first and is done only § May be done at the end
once of each project phase and
• Uses the term Procurement at the end of the project.
Audit § Uses the term Lesson
• Contract closeout requires Learned
more documentation than
administrative closure
It's fine to celebrate success

but it is more important to
heed the lessons of failure
Bill Gates
Page 181

Project procurement management Page 182
Project stakeholder management
Easy PMP
Exam prep
Module 12
Project
stakeholder
management
Project stakeholder
Management
Stakeholder management can be consists of processes of identify
defined as the creation and the internal and external
maintenance of relationships with stakeholders, to determine their
the aim to satisfy needs and covers expectations and influence over
activities throughout the project life the project, and to develop
cycle
Page 183
strategies to manage them and
effectively engage them in project
Easy PMP Exam Preparation execution and decision
Project stakeholder management Easy PMP Exam Preparation
4 processes in project stakeholder

management
Controlling
Scope - 4 - 2 - 6
Cost - 3 - 1 - 4
Quality - 1 1 1 - 3
Risk - 5 1 1 - 7
Total 2 24 10 12 1 49

Identify stakeholders Tools & techniques
1. Project Charter 1. Expert judgement 1. Stakeholder Register

2. Business Documents 2. Data Gathering 2. Change Requests
3. Project management 3. Data Analysis 3. Project Management
plan 4. Data Representation Plan Updates
4. Project Documents 5. Meetings 4. Project Documents
5. Agreements Updates
6. Enterprise
Page 184
assets


Tools & techniques
Stakeholder analysis Stakeholder analysis

• A technique of systematically Can be a combination of:
gathering and analyzing quantitative § Interest
and qualitative information to § Rights
determine whose interests should § Ownership
be taken into account throughout § Knowledge
the project § Contribution
• Identify interests, expectations and
influence of the stakeholders to build
coalitions and potential
partnerships for project success

Classification models of
Tools & techniques
stakeholder analysis
Power/interest Power/influence Influence/impact Salience model
Grouping Grouping Grouping based Describing

based on level based on level on active classes of
of authority of authority involvement stakeholders
(power) and (power) and (influence) and based on their
concern active involvement ability to effect power, urgency,
(interest) (influence) changes to the and legitimacy
project’s planning
Page 185
or execution
(impact)
Stakeholder Tools & techniques

Analysis High Power
Keep Manage
Satisfied Closely
Low Interest High interest
Keep
Monitor
Informed
Low Power
Tools & techniques

Direction of influence
Upward Outward
• Senior management of the • Stakeholder groups and their representatives
performing organization or outside the project team, such as suppliers,
customer organization, government departments, the public, end-users,
sponsor, and steering and regulators
committee
Sideward
Downward • The peers of the project manager, such as other
• The team or specialists project managers or middle managers who are
Page 186
contributing knowledge or in competition for scarce project resources or

skills in a temporary capacity who collaborate with the project manager in
sharing resources or information

Plan Stakeholder engagement Tools & techniques
1. Project Charter 1. Expert judgement 1. Stakeholder

2. Project Management 2. Data Gathering Engagement Plan
Plan 3. Data Analysis
3. Project Documents 4. Decision Makin
4. Agreements 5. Data Representation
assets
Plan stakeholder ENGAGEMENT
• Stakeholder Management is to create and maintain relationship between the

project team and stakeholders, with the aim to satisfy their respective
needs and requirements within project boundaries.
• Identifies the management strategies required to effectively engage
stakeholders.
• An iterative process and should be reviewed on a regular basis as the
required level of engagement of the stakeholders’ changes in the
project Page 187
Engagement level Tools & techniques

unaware resistant neutral
Unaware of project and Aware of project and Aware of project yet

potential impacts potential impacts and neither supportive nor
resistant to change resistant
supportive leading
Aware of project and Aware of project and

potential impacts and potential impacts and
supportive to change actively engaged in
ensuring the project is a
success
Key output
Stakeholder engagement plan
§ Desired and current engagement levels of key stakeholders
§ Scope and impact of change to stakeholders
§ Identified interrelationships and potential overlap between stakeholders
§ Stakeholder communication requirements for the current project phase
§ Information to be distributed to stakeholders
§ Reason for the distribution of that information and the expected impact to
stakeholder engagement
§ Time frame and frequency for the distribution of required information to
stakeholder
§ Method for updating and refining the stakeholder management plan as the project
Page 188
progress and develops


Manage stakeholder engagement Tools & techniques
1. Project Management 1. Expert Judgment 1. Change Requests

Plan 2. Communication Skills 2. Project Management
2. Project Documents 3. Interpersonal and Plan Updates
3. Enterprise Team Skills 3. Project Documents
Environmental Factors 4. Ground Rules Updates
4. Organizational Process 5. Meetings
Assets
Manage
stakeholder
engagement
§ Engaging stakeholders at appropriate project stages to obtain their commitment
§ Managing stakeholder expectations through negotiation and communication
§ Addressing potential concerns and anticipating potential problems
§ Clarifying and resolving issues that have been identified
§ Managing stakeholder engagement increase the probability of project
success.
§ Responsibility of project manager to engage various stakeholders in a
project. Page 189
Monitor stakeholder engagementTools & techniques
1. Project Management Plan 1. Data Analysis 1. Work Performance

2. Project Documents 2. Decision Making Information
3. Work Performance Data 3. Data Representation 2. Change Requests
4. Enterprise Environmental 4. Communication Skills 3. Project Management Plan
Factors 5. Interpersonal and Team Updates
5. Organizational Process Skills 4. Project Documents
Assets 6. Meetings Updates
MONITOR
stakeholder
engagement
§ Maintain or increase efficiency and effectiveness of

stakeholder engagement activities.
§ Should be continuously controlled during the life cycle
Page 190
of the project.

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