ProjectManagementProcessGroups

Initiating 4.Integration
4.1Develop ProjectCharter j Ch

Planning
4.2DevelopProject Management Plan l

Executing
4.3Direct&Manage Project Execution i

Monitoring&Control.
4.4Monitor&ControlProject Work W k 4.5 PerformIntegrated ChangeControl 5.4VerifyScope 5.5ControlScope 6.6ControlSchedule

Closing
4.6CloseProject or Phase h

5.Scope 6.Time

5.1CollectRequirements 5.2DefineScope 5.3CreateWBS 6.1DefineActivities 6.2 SequenceActivities 6.3EstimateActivity Resources 6.4EstimateActivity Durations 6.5 DevelopSchedule 7.1EstimateCosts 7.2Determine Budget 8.1PlanQuality 9.1DevelopHuman ResourcesPlan Resources Plan 10.1 Identify Stakeholders 10.2PlanCommunications 8.2Perform QualityAssurance 9.2 AcquireProjectTeam 9.3DevelopProjectTeam 9 3 Develop Project Team 9.4ManageProjectTeam 10.3DistributeInformation 10.4ManageStakeholders Expectations

Knowle edgeAreas

7.Cost 8.Quality 9.Human Resources 10.Communication 11.Risk

7.3ControlCosts 8.3Perform QualityControl

3 3 4

10.5ReportPerformance

5
11.6 Monitor&ControlRisks

11.1 PlanRisk Management 11.2IdentifyRisks 11.3PerformQualitative RiskAnalysis 11.4PerformQuantitative RiskAnalysis 11.5PlanRiskResponses 12.1PlanProcurements 12.2ConductProcurements

12. Procurement

12.3Administer Procurements

12.4Close Procurements

20

10

42

ProjectRolesandResponsibilities
TheProjectTeamisthegroupresponsibleforplanningandexecutingtheproject.ItconsistsofaProject ManagerandavariablenumberofProjectTeammembers,whoarebroughtintodelivertheirtasksaccordingto theprojectschedule. the project schedule TheProjectManageristhepersonresponsibleforensuringthattheProjectTeamcompletestheproject. TheProjectManagerdevelops theProjectPlanwiththeteamandmanagestheteamsperformanceofprojecttasks. ItisalsotheresponsibilityoftheProjectManagertosecureacceptanceandapprovalofdeliverablesfromtheProject SponsorandStakeholders.TheProjectManagerisresponsibleforcommunication,includingstatusreporting,risk management,escalationofissuesthatcannotberesolvedintheteam,and,ingeneral,makingsuretheprojectis deliveredinbudget,onschedule,andwithinscope. TheProjectTeamMembersareresponsibleforexecutingtasksandproducingdeliverablesasoutlinedin theProjectPlananddirectedbytheProjectManager,atwhateverlevelofeffortorparticipationhasbeen definedforthem. defined for them. Onlargerprojects,someProjectTeammembersmayserveasTeamLeads,providingtaskandtechnical, leadership,andsometimesmaintainingaportionoftheprojectplan. TheExecutiveSponsorisamanagerwithdemonstrableinterestintheoutcomeoftheprojectwhoisultimately responsibleforsecuringspendingauthorityandresourcesfortheproject.Ideally,theExecutiveSponsorshouldbe ibl f i di th it d f th j t Id ll th E ti S h ld b thehighestrankingmanagerpossible,inproportiontotheprojectsizeandscope.TheExecutiveSponsoractsasa vocalandvisiblechampion,legitimizestheprojectsgoalsandobjectives,keepsabreastofmajorprojectactivities, andistheultimatedecisionmakerfortheproject.TheExecutiveSponsorprovidessupportfortheProjectSponsor and/orProjectDirectorandProjectManagerandhasfinalapprovalofallscopechanges,andsignsoffon j j g pp p g , g approvalstoproceedtoeachsucceedingprojectphase.TheExecutiveSponsormayelecttodelegatesomeofthe aboveresponsibilitiestotheProjectSponsorand/orProjectDirector.

TheProjectSponsorand/orProjectDirectorisamanagerwithdemonstrableinterestintheoutcomeofthe projectwhoisresponsibleforsecuringspendingauthorityandresourcesfortheproject.TheProjectSponsoracts project who is responsible for securing spending authority and resources for the project The Project Sponsor acts asavocalandvisiblechampion,legitimizestheprojectsgoalsandobjectives,keepsabreastofmajorproject activities,andisadecisionmakerfortheproject.TheProjectSponsorwillparticipateinand/orleadproject initiation;thedevelopmentoftheProjectCharter.Heorshewillparticipateinprojectplanning(highlevel)andthe developmentoftheProjectInitiationPlan.TheProjectSponsorprovidessupportfortheProjectManager;assists withmajorissues,problems,andpolicyconflicts;removesobstacles;isactiveinplanningthescope;approves scopechanges;signsoffonmajordeliverables;andsignsoffonapprovalstoproceedtoeachsucceedingproject phase.TheProjectSponsorgenerallychairsthesteeringcommitteeonlargeprojects.TheProjectSponsormay electtodelegateanyoftheaboveresponsibilitiestootherpersonneleitheronoroutsidetheProjectTeam TheSteeringCommitteegenerallyincludesmanagementrepresentativesfromthekeyorganizationsinvolved The Steering Committee generally includes management representatives from the key organizations involved intheprojectoversightandcontrol,andanyotherkeystakeholdergroupsthathavespecialinterestintheoutcome oftheproject.TheSteeringcommitteeactsindividuallyandcollectivelyasavocalandvisibleprojectchampion throughouttheirrepresentativeorganizations;generallytheyapproveprojectdeliverables,helpresolveissuesand policydecisions,approvescopechanges,andprovidedirectionandguidancetotheproject.Dependingonhowthe projectisorganized,thesteeringcommitteecanbeinvolvedinprovidingresources,assistinsecuringfunding,act j ti i d th t i itt b i l di idi i ti i f di t asliaisonstoexecutivegroupsandsponsors,andfillotherrolesasdefinedbytheproject. Customerscomprisethebusinessunitsthatidentifiedtheneedfortheproductorservicetheprojectwilldevelop. Customerscanbeatalllevelsofanorganization.SinceitisfrequentlynotfeasibleforalltheCustomerstobe ProjectRolesandResponsibilitiesdirectlyinvolvedintheproject,thefollowingrolesareidentified: CustomerRepresentativesaremembersoftheCustomercommunitywhoareidentifiedandmade availabletotheprojectfortheirsubjectmatterexpertise.Theirresponsibilityistoaccuratelyrepresenttheir businessunitsneedstotheProjectTeam,andtovalidatethedeliverablesthatdescribetheproductor servicethattheprojectwillproduce.CustomerRepresentativesarealsoexpectedtobringinformationabout theprojectbacktotheCustomercommunity.Towardstheendoftheproject,CustomerRepresentativeswill the project back to the Customer community Towards the end of the project Customer Representatives will testtheproductorservicetheprojectisdeveloping,usingandevaluatingitwhileprovidingfeedbacktothe ProjectTeam.

CustomerDecisionMakersarethosemembersoftheCustomercommunitywhohavebeendesignated tomakeprojectdecisionsonbehalfofmajorbusinessunitsthatwilluse,orwillbeaffectedby,theproductor p j j , y, p servicetheprojectwilldeliver.CustomerDecisionMakersareresponsibleforachievingconsensusoftheir businessunitonprojectissuesandoutputs,andcommunicatingittotheProjectManager.Theyattend projectmeetingsasrequestedbytheProjectManager,reviewandapproveprocessdeliverables,andprovide subjectmatterexpertisetotheProjectTeam.OnsomeprojectstheymayalsoserveasCustomer RepresentativesorbepartoftheSteeringCommittee. Representatives or be part of the Steering Committee Stakeholdersareallthosegroups,units,individuals,ororganizations,internalorexternaltoourorganization, whichareimpactedby,orcanimpact,theoutcomesoftheproject.ThisincludestheProjectTeam,Sponsors, SteeringCommittee,Customers,andCustomercoworkerswhowillbeaffectedbythechangeinCustomerwork practicesduetothenewproductorservice;Customermanagersaffectedbymodifiedworkflowsorlogistics; Customercorrespondentsaffectedbythequantityorqualityofnewlyavailableinformation;andothersimilarly affectedgroups. KeyStakeholdersareasubsetofStakeholderswho,iftheirsupportweretobewithdrawn,wouldcausethe Key Stakeholders are a subset of Stakeholders who if their support were to be withdrawn would cause the projecttofail. Vendorsarecontractedtoprovideadditionalproductsorservicestheprojectwillrequireandareanothermember oftheProjectTeam.

Thepointoftotalassumption(PTA) isapointonthecostlineoftheProfitcostcurvedeterminedbythecontract elementsassociatedwithafixedpriceplusincentiveFirmTarget(FPI)contract abovewhichthesellereffectively bearsallthecostsofacostoverrun.ThesellerbearsallofthecostriskatPTAandbeyond,duetoadollarfordollar b ll h f h ll b ll f h k db d d d ll f d ll decreaseinprofitbeyondthecostsatthePTA.Inaddition,oncethecostsonanFPIcontractreachPTA,themaximum amountthebuyerwillpayistheceilingprice.Note,however,thatbetweenthecostatPTAandwhenthecostequals theceilingprice,thesellerisstillinaprofitableposition;onlyaftercostsexceedtheceilingpriceisthesellerina loss p position. AnyFPIcontractspecifiesatargetcost,atargetprofit,atargetprice,aceilingprice,andoneormoreshareratios.The PTAisthedifferencebetweentheceilingandtargetprices,dividedbythebuyer'sportionoftheshareratioforthat pricerange,plusthetargetcost.

Progressiveelaborationismostoftenusedwhencreatingtheprojectorproductscope, developingrequirements,determininghumanresources,scheduling,anddefiningrisks andtheirmitigationplans. projectmanagement isapplyingtools,techniques,skills,andknowledgetoprojectactivitiestobringabout i l i t l t h i kill dk l d t j t ti iti t b i b t successfulresultsandmeettheprojectrequirements. Programs arecollectionsofrelatedprojects.Portfolios consistofprograms,projects,and otherportfoliosthatmeetabusinessobjective.Projectsorprogramswithinaportfolio other portfolios that meet a business objective Projects or programs within a portfolio arenotnecessarilyrelatedordependentoneachother. Theprojectmanagerandprojectteamareresponsiblefordeterminingwhichprocesses withineachprocessgroupareappropriatefortheprojectonwhichyou reworking.This within each process group are appropriate for the project on which youre working This iscalled tailoring.Youshouldconsiderthesizeandcomplexityoftheprojectandthevarious inputsandoutputsofeachoftheprocesseswhendeterminingwhichprocessesto implementandperform.Small,independentprojectsmightnotrequiretherigorofeach oftheprocesseswithinaprocessgroup,buteveryprocessshouldbeaddressedandits levelofimplementationdetermined.Useyourjudgmentwhendecidingwhichprocesses tofollow,particularlyforsmallprojects.

Fortheexam,youneedtoknowthreefactsconcerningIRR: IRRisthediscountratewhenNPVequalszero. IRR is the discount rate when NPV equals zero IRRassumesthatcashinflowsarereinvestedattheIRRvalue. YoushouldchooseprojectswiththehighestIRRvalue. Rememberthatorganizationalprocessassetsencompassmanyelements,includingpolicies, g p p y , gp , guidelines,standards,historicalinformation,andsoon,andthattheyredividedinto twocategories:processesandproceduresandcorporateknowledgebase. Stakeholderidentificationshouldoccurasearlyaspossibleintheprojectandcontinue throughoutitslife.Likewise,thestakeholderanalysisandstrategyshouldbereviewed periodicallythroughouttheprojectandupdatedasneeded. Inpractice,youllfindthatyoullpreparetheprojectmanagementplanafteryouve progressedthroughseveraloftheotherPlanningprocesses.Itsdifficulttocreatesomeof d h h l f h h Pl i I diffi l f thesesubsidiaryplanswithoutperformingtheprocesstheyreassociatedwithfirst.However, fortheexam,rememberthatDevelopProjectManagementPlanisthefirstprocess inthePlanninggroup,anditshouldbeperformedfirst.Updatescanandshouldoccurto g g p, p p theProjectManagementPlanassubsidiaryplansarecreatedorchanged.

Requirements mustbedocumented,analyzed,andquantifiedinenoughdetailthatthey canbemeasuredoncetheworkoftheprojectbegins.Requirementsbecomethebasisfor can be measured once the work of the project begins. Requirements become the basis for developingtheWBSandareessentialinestimatingcosts,developingtheprojectschedule, andqualityplanning. Theprimarydifferencebetweenfocusgroupsandfacilitatedworkshopsarethatfocus groupsaregatheringsofprequalifiedsubjectmatterexpertsandstakeholders andfacilitated workshopsconsistofcrossfunctionalstakeholderswhocandefinecrossfunctional requirements.Differencesamongstakeholderscanberesolvedmorequicklyandconsensus ismoreeasilyattainedinafacilitatedworkshopenvironment. is more easily attained in a facilitated workshop environment Makecertainyoudocumentthephasetophaserelationshipyoulluseduringtheproject lifecycleintherequirementsmanagementplan. Theprojectscopemanagementplanisaplanningtoolthatdocumentshowtheproject teamwillgoaboutdefiningprojectscope,howtheworkbreakdownstructurewillbe developed,howchangestoscopewillbecontrolled,andhowtheworkoftheprojectwill beverifiedandaccepted.Anddon tforget,thescopemanagementplanisasubsidiaryof be verified and accepted. And dont forget, the scope management plan is a subsidiary of theprojectmanagementplan.

Definingprojectscopeiscriticaltothesuccessoftheprojectsinceitspellsoutexactly whattheproductorserviceoftheprojectlookslike.Conversely,poorscopedefinition what the product or service of the project looks like. Conversely, poor scope definition mightleadtocostincreases,rework,scheduledelays,andpoormorale. Forexampurposes,rememberthatproductanalysisisatoolandtechniqueofthe DefineScopeprocess,andmemorizethelistofanalysistechniquesthatmightbeperformed Define Scope process, and memorize the list of analysis techniques that might be performed inthisprocess. ProductAnalysis Productbreakdown
Systemsanalysis Requirementsanalysis Systemsengineering Valueengineering Valueanalysis

Understandthatrollingwaveplanningisaprocessofelaboratingdeliverables,project phases,orsubprojectsintheWBStodifferinglevelsofdecompositiondependingonthe expecteddateofthework.Workintheneartermisdescribedinmoredetailthanworkto beperformedinthefuture. Thescopebaselineisdefinedasthedetailedprojectscopestatement,theWBS,andthe WBSdictionary.Understandthisconceptfortheexam. WBS dictionary Understand this concept for the exam Discretionarydependencieshaveatendencytocreatearbitrarytotalfloatvaluesthatwill limityouroptionswhenschedulingactivitiesthathavethistypeofdependency.Ifyouare usingfasttrackingtocompressyourschedule,youshouldconsiderchangingorremoving using fast tracking to compress your schedule you should consider changing or removing thesedependencies. Fortheexam,rememberthatthePDMusesonlyonetimeestimatetodetermineduration.

Reservetimealsocalledbuffers,timereserves,orcontingencyreserveinthePMBOK Guide meansaportionoftimethatisaddedtotheactivitytoaccountforschedulerisk Guide means a portion of time that is added to the activity to account for schedule risk oruncertainty. CPMmanagesthetotalfloatofschedulenetworkpaths,whereascriticalchainmanages bufferactivitydurations. Resourcelevelingcancausetheoriginalcriticalpathtochange. TheprojectcostmanagementplanisestablishedusingtheWBSanditsassociated controlaccounts. Scopedefinitionisakeycomponentofdeterminingtheestimatedcostsandshouldbe completedasearlyintheprojectaspossiblebecauseitseasiertoinfluencecostsinthe beginningphasesoftheproject.Butyoucantinfluencecostsifyoudontunderstand theprojectscope. the project scope AccordingtothePMBOKGuide,iftheProjectCostManagementKnowledgeAreaincludes predictingthepotentialfinancialperformanceoftheproductoftheproject,oriftheproject p p j y y q p isacapitalfacilitiesproject,youmayalsouseadditionaltoolsandtechniquesintheprocess, suchasreturnoninvestment,discountedcashflow,andpaybackanalysis.

Effectivecommunicationreferstoprovidingtheinformationintheright formatfortheintendedaudienceattherighttime. format for the intended audience at the right time. Fortheexam,knowthatthecommunicationsmanagementplan documentshowthe communicationneedsofthestakeholderswillbemet,includingthetypesofinformation thatwillbecommunicated,whowillcommunicateit,whoreceivesthecommunication,the methodsusedtocommunicate,thetimingandfrequency,themethodforupdatingthis planastheprojectprogresses,theescalationprocess,andaglossaryofcommonterms. Fortheexam,dontforgetthatyoudefineprobabilityandimpactvaluesduringthePlan h d f h d f b bl d l d h l RiskManagementprocess. ThePMBOKGuidenotesthattheprobabilityandimpactmatrixvaluesareusuallysetby theorganizationandarepartoftheorganizationalprocessassets. Fortheexam,rememberthatinterviewingisatoolandtechniqueofthe PerformQuantitativeRiskAnalysisprocess.Althoughyoucanusethis techniqueintheIdentifyRisksprocess,rememberthatitspartofthedata t h i i th Id tif Ri k b th t it t f th d t gatheringandrepresentationtechniqueandnotanamedtoolandtechnique itself.

Expectedmonetaryvalue(EMV)analysisisastatisticaltechniquethatcalculatesthe average,anticipatedfutureimpactofthedecision.EMViscalculatedbymultiplying average anticipated future impact of the decision EMV is calculated by multiplying theprobabilityoftheriskbyitsimpactfortwoormorepotentialoutcomes(forexample, agoodoutcomeandapooroutcome)andthenaddingtheresultsofthepotentialoutcomes together. Simulationtechniquesarerecommendedforpredictingscheduleorcostrisksbecause theyremorepowerfulthanEMVandlesslikelytobemisused.Fortheexam,remember thatsimulationtechniquesareusedtopredictscheduleorcostrisks. TheeconomicadjustmentsectionofanFPEPAcontractshouldbetiedtoaknown h d f h ld b d k financialindex. Understandthedifferencebetweenbidand/orquotationandproposalfortheexam.Bids orquotationsareusedwhenpriceistheonlydecidingfactoramongbidders.Proposals or quotations are used when price is the only deciding factor among bidders Proposals areusedwhenthereareconsiderationsotherthanprice. Fortheexam,understandthekeyenvironmentalfactors(organizationalfactors,existing humanresourcesandmarketconditions,personnelpolicies,technicalfactors,interpersonal, locationandlogistics,andpoliticalfactors)andthethreeconstraints(organizational structures,collectivebargainingagreements,andeconomicconditions)thatcanimpactthe DevelopHumanResourcePlanprocess.

Feigenbaum isthefounderofTQMandDemingbelievesqualityisamanagementissue. SixSigmaisaqualitymanagementapproachthatissimilartoTQMandistypicallyusedin manufacturingandservicerelatedindustries.SixSigmaisameasurementbasedstrategy thatfocusesonprocessimprovementandvariationreduction,whichyoucanachieveby applyingSixSigmamethodologiestotheproject.TherearetwoSixSigmamethodologies. ThefirstisknownasDMADV(define,measure,analyze,design,andverify)andisused The first is known as DMADV (define measure analyze design and verify) and is used todevelopnewprocessesorproductsattheSixSigmalevel.ThesecondiscalledDMAIC (define,measure,analyze,improve,andcontrol)andisusedtoimproveexistingprocesses orproducts.AnothertidbityoushouldunderstandaboutSixSigmaisthatitaimsto eliminatedefectsandstipulatesthatnomorethan3.4defectspermillionareproduced.
Crosby=Zerodefectsandprevention Juran =Fitnessforuse,conformance.Qualitybydesign. Deming=Qualityisamanagementproblem. Feigenbaum =FounderofTQM. Shewhart =PlanDoCheckActcycle. TQM=Qualitymustbemanagedinandmustbeacontinuousprocess. SixSigma=SixSigmaisameasurementbasedstrategy;nomorethan3.4defectspermillion Kaizen=Continuousimprovement;improvequalityofpeoplefirst. Continuousimprovement=Watchcontinuouslyforwaystoimprovequality.

Leaders motivate,inspire,andcreatebuyinfortheorganizationsstrategic vision.Leadersusepowerandpoliticstoaccomplishthevision. Managersaretaskorientedandconcernedwithsatisfyingstakeholder Managers are task oriented and concerned with satisfying stakeholder needs. Fortheexam,rememberthatthekeytoDOEisthatitequipsyouwithastatistical frameworkthatallowsyoutochangethevariablesthathavethegreatesteffectonoverall framework that allows you to change the variables that have the greatest effect on overall projectoutcomesatonceinsteadofchangingonevariableatatime. QualityMetrics Aqualitymetric,alsoknownasoperationaldefinition,describeswhatisbeingmeasured A quality metric, also known as operational definition, describes what is being measured andhowitwillbemeasuredduringthePerformQualityControlprocess. Beawarethatachecklistshowsupasaninput,anoutput,andatoolandtechnique.Quality checklistsareanoutputofthePlanQualityprocessandaninputtothePerformQuality Controlprocess,andchecklistanalysisisatoolandtechniqueoftheIdentifyRiskprocess. Maslows hierarchyofneedsAbrahamMaslow.Needsmustbesatisfiedina hierarchicalorder. HygieneTheoryFrederickHerzberg.Workenvironment(pay,benefits,andworking Hygiene Theory Frederick Herzberg Work environment (pay benefits and working conditions)preventsdissatisfaction. ExpectancyTheoryVictorVroom.Expectationofpositiveoutcomesdrivesmotivation. AchievementTheoryDavidMcClelland.Peoplearemotivatedbyachievement,power, andaffiliation

ThemostimportantpointtorememberaboutPerformQualityAssuranceisthat qualitymanagementprocessesarewhatyouusetomakecertaintheprojectsatisfies thequalitystandardslaidoutintheprojectmanagementplan. TheoryZTheimplementationofthistheoryincreasesemployeeloyaltyandleadsto highsatisfactionandmorale. high satisfaction and morale. ContingencyTheoryPeoplearemotivatedtoachievelevelsofcompetencyandwill continuetobemotivatedaftercompetencyisreached. RewardpowerYourewarddesirablebehaviorwithincentivesorbonuses. PunishmentpowerYouthreatenteammemberswithconsequencesifexpectationsare P ih Y h b ih if i notmet(alsoknownaspenaltypower). ExpertpowerThepersondoingtheinfluencinghassignificantknowledgeorskills regardingthesubject. g g j LegitimatepowerThisisthepowerofthepositionheldbytheinfluencer(thepresident orvicepresident,forexample). ReferentpowerThisispowerthatsinferredtotheinfluencer. Contracts: Requirement q Requisition Solicitation Award

PlanProcurements:PreparingtheSOWandprocurementdocumentsanddetermining sourceselectioncriteria source selection criteria ConductProcurements:Obtainingbidsandproposalsfrompotentialvendors, evaluatingproposalsagainstpredeterminedevaluationcriteria,selectingvendors, andawardingthecontract AdministerProcurements:Monitoringvendorperformancetoensurethatcontract Ad i i P M i i d f h requirementsaremet Thechangecontrolsystemandconfigurationmanagementsystemtogetheridentify, document,andcontrolthechangestotheperformancebaseline. Aworkaroundisanunplannedresponsetoanegative riskevent.Itattemptstodealwiththeriskinaproductive,efficientmanner. p p , PV:Theapprovedbudgetassignedtoworktobecompletedduringagiventimeperiod AC:Moneythatsactuallybeenexpendedduringagiventimeperiodfor completedwork l t d k EV:Thevalueoftheworkcompletedtodatecomparedtothebudget

TheEACformula EAC=AC+bottomupETC EACusingactualcoststodateandassumingETCusesbudgetedrate EAC AC BAC EAC =AC+BAC EV EACassumingfutureperformancewillbehavelikepastperformance EAC=BAC/cumulativeCPI EACwhencostperformanceisnegativeandscheduledatesmustbemet EAC=AC+[(BAC EV)/(cumulativeCPI*cumulativeSPI)] BottomupETC Summationofthecostsoftheremainingworkbasedonestimatesfromtheproject teammembersworkingontheseactivities ETCwhenfuturecostvarianceswillbesimilartopastvariances ETC=(BAC cumulativeEV)/cumulativeCPI ETCwhenfuturecostvariancesareexpectedtobeatypical ETC=(BAC cumulativeEV)

Randomvariancesmightbenormal,dependingontheprocesses you reusingtoproducetheproductorserviceoftheproject,buttheyoccurasthename youre using to produce the product or service of the project, but they occur as the name implies,atrandom. Knownorpredictablevariancesarevariancesthatyouknowexistintheprocessbecauseof particularcharacteristicsoftheproduct,service,orresultyouareprocessing.Theseare generallyuniquetoaparticularapplication. ll i i l li i VariancesthatarealwayspresentintheprocessTheprocessitselfwillhaveinherent variabilitythatisperhapscausedbyhumanmistakes,machinevariationsormalfunctions, theenvironment,andsoon,whichareknownasvariancesalwayspresentintheprocess. , , y p p Thesevariancesgenerallyexistacrossallapplicationsoftheprocess. Fortheexam,rememberthatproductverification,whichdetermineswhetherallof theworkoftheprojectwascompletedcorrectlyaccordingtothecontractorother the work of the project was completed correctly according to the contract or other procurementtermsandsatisfactoryaccordingtostakeholderexpectations,isperformed duringtheClosingprocesses. Productdocumentationisverifiedandacceptedduring theVerifyScope process.Onemorenote:whenprojectsendprematurely,theVerify Scopeprocessiswherethelevelofdetailconcerningtheamountofworkcompleted getsdocumented.

1.Correctiveaction.Documenteddirectionforexecutingtheprojectworktobringexpectedfuture performanceoftheprojectworkinlinewiththeprojectmanagementplan. 2.Preventiveaction.Adocumenteddirectiontoperformanactivitythatcanreducetheprobabilityof d dd f h d h b bl f negativeconsequencesassociatedwithprojectrisks. 3.Defectrepair.Theformallydocumentedidentificationofadefectinaprojectcomponentwitha recommendationtoeitherrepairthedefectorcompletelyreplacethecomponent. 4.Updates.Changestoformallycontrolleddocumentation,plans,etc.,toreflectmodifiedoradditional d h f ll ll d d l fl df d dd l ideasorcontent. 1.Configurationidentification Selectionandidentificationofaconfigurationitemprovidesthebasisfor whichproductconfigurationisdefinedandverified,productsanddocumentsarelabeled,changesare p g ,p , g managed,andaccountabilityismaintained. Configurationstatusaccounting Informationisrecordedandreportedastowhenappropriatedata abouttheconfigurationitemshouldbeprovided.Thisinformationincludesalistingofapproved configurationidentification,statusofproposedchangestotheconfiguration,andtheimplementation g , p p g g , p statusofapprovedchanges. Configurationverificationandaudit.Configurationverificationandconfigurationauditsensurethe compositionofaprojectsconfigurationitemsiscorrectandthatcorrespondingchangesareregistered, assessed,approved,tracked,andcorrectlyimplemented.Thisensuresthefunctionalrequirements , pp , , y p q definedintheconfigurationdocumentationhavebeenmet.

Beforebeingbaselined,requirementsmustbeunambiguous(measurableandtestable),traceable,complete, consistent,andacceptabletokeystakeholders. 1.Usingphases oftheprojectlifecycleasthefirstlevelofdecomposition,withtheproductandprojectdeliverables insertedatthesecondlevel 2.Usingmajordeliverablesasthefirstlevelofdecomposition 3.Usingsubprojects whichmaybedevelopedbyorganizationsoutsidetheprojectteam,suchascontractedwork.The g p j y p y g p j sellerthendevelopsthesupportingcontractworkbreakdownstructureaspartofthecontractedwork. VerifyScopeistheprocessofformalizingacceptanceofthecompletedprojectdeliverables. Verifyingscopeincludesreviewingdeliverableswiththecustomerorsponsortoensurethattheyarecompleted satisfactorilyandobtainingformalacceptanceofdeliverablesbythecustomerorsponsor. satisfactorily and obtaining formal acceptance of deliverables by the customer or sponsor Scopeverificationdiffersfromqualitycontrolinthatscopeverificationisprimarilyconcernedwithacceptanceofthe deliverables,whilequalitycontrolisprimarilyconcernedwithcorrectnessofthedeliverablesandmeetingthequality requirementsspecifiedforthedeliverables. VarianceAnalysis Projectperformancemeasurementsareusedtoassessthemagnitudeofvariationfromtheoriginal scopebaseline.Importantaspectsofprojectscopecontrolincludedeterminingthecauseanddegreeofvariance relativetothescopebaselineanddecidingwhethercorrectiveorpreventiveactionisrequired.

1.Activitylist acomprehensivelistincludingallscheduleactivitiesrequiredontheproject. y p g q p j 2.Activityattributes extendthedescriptionoftheactivitybyidentifyingthemultiplecomponentsassociatedwith eachactivity. Thecomponentsforeachactivityevolveovertime.DuringtheinitialstagesoftheprojecttheyincludetheActivityID, WBSID,andActivityName,andwhencompletedmayincludeactivitycodes,activitydescription,predecessoractivities, successoractivities,logicalrelationships,leadsandlags,resourcerequirements,imposeddates,constraints,and successor activities logical relationships leads and lags resource requirements imposed dates constraints and assumptions. Activityattributescanbeusedtoidentifythepersonresponsibleforexecutingthework,geographicarea,orplace wheretheworkhastobeperformed,andactivitytypesuchaslevelofeffort(LOE),discreteeffort,andapportioned effort(AE). 3.MilestoneList identifiesallmilestonesandindicateswhetherthemilestoneismandatory,suchasthoserequiredby contract,oroptional,suchasthosebaseduponhistoricalinformation. Criticalchainisaschedulenetworkanalysistechniquethatmodifiestheprojectscheduletoaccountforlimited resources.Initially,theprojectschedulenetworkdiagramisbuiltusingdurationestimateswithrequireddependencies resources Initially the project schedule network diagram is built using duration estimates with required dependencies anddefinedconstraintsasinputs.Thecriticalpathisthencalculated.Afterthecriticalpathisidentified,resource availabilityisenteredandtheresourcelimitedscheduleresultisdetermined.Theresultingscheduleoftenhasan alteredcriticalpath. Theresourceconstrainedcriticalpathisknownasthecriticalchain.Thecriticalchainmethodaddsdurationbuffers thatarenonworkscheduleactivitiestomanageuncertainty.Onebuffer,placedattheendofthecriticalchain,is knownastheprojectbufferandprotectsthetargetfinishdatefromslippagealongthecriticalchain.Additionalbuffers, knownasfeedingbuffers,areplacedateachpointthatachainofdependenttasksnotonthecriticalchainfeedsinto thecriticalchain.Feedingbuffersthusprotectthecriticalchainfromslippagealongthefeedingchains.Thesizeofeach buffershouldaccountfortheuncertaintyinthedurationofthechainofdependenttasksleadinguptothatbuffer. buffer should account for the uncertainty in the duration of the chain of dependent tasks leading up to that buffer. Oncethebufferscheduleactivitiesaredetermined,theplannedactivitiesarescheduledtotheirlatestpossibleplanned startandfinishdates.Consequently,inlieuofmanagingthetotalfloatofnetworkpaths,thecriticalchainmethod focusesonmanagingremainingbufferdurationsagainsttheremainingdurationsoftaskchains.

Whichactivitiescanstartinprojectinitiatinganddonotenduntilprojectclosing? Teambuilding,riskidentification,riskresponseplanningandintegratedchangecontrol

GERT isanetworkdiagramdrawingmethodthatallowsloopsbetweenactivities.Forexamplewhenyouhavean
activitytodesignacomponentandthentestit.Aftertesting,itmayormaynotneedtoberedesigned. Aheuristicmeansaruleofthumb. eg 80/20 rule that in quality suggests that 80 percent of quality problems are caused by 20 percent of potential 80/20rulethat,inquality,suggeststhat80percentofqualityproblemsarecausedby20percentofpotential sourcesofproblems. Theresultofparametricestimatescanbecomeheuristics. MarginalAnalysis Optimalqualityisreachedatthepointwheretheincrementalrevenuefromimprovement equalstheincrementalcosttosecureit. l th i t l tt it At6sigma,lessthan1.5outof1million. At3sigma,2,700.

+/1sigma=68.26% +/2sigma=95.46% +/3sigma=99.73% +/6sigma=99.99985% +/ 6 sigma = 99 99985%

threeEEFthatcanconstraintheDevelopHRProcess OrgStructures CollectiveBargainingAgreements EconomicConditions Whatisavalidateddefectrepair?istheresultofreinspection oftheoriginaldefectrepair. ExpectedPresentValue(EPV) Expected Present Value(EPV) Referstothesumofprobabilityweightedpresentvaluesinarangeofestimatedcashflows,alldiscountedusingthe sameinterestrateconvention. SumofprobabilityweightedPresentValuesoffuturecashflows CausesofConflictbetweenteammembers Causes of Conflict between team members Competition Differences Disagreements Poorcommunication ConflictManagementPrinciples Leteachpersonhavetheirsay Listenhard Separatetheissuesfrompersonalities Encouragewinwin Encourage win win

CPPC(CostPlusPercentageofCost) ( g ) Contracttypewhichprovidesforthesellertobereimbursedforallowablecostsofperformingthecontractandreceives asprofit(afee)anagreeduponpercentageofthecosts. Formula:Totalprice=Cost+(Fee%*Cost) CPIF(CostPlusIncentiveFee) CPIF (Cost Plus Incentive Fee) Contracttypewhichprovidesforthesellertobepaidforallowableperformancecostsalongwithapredeterminedfee andanincentivebonus.Ifthefinalcostsarelessthantheexpectedcosts,boththebuyerandsellerbenefitbythecost savingsbasedonaprenegotiatedsharingformula(shareratio). Formula:Price=(Actualcost+TargetFee+Incentive),whereIncentive= ShareRatio%*(TargetCost ActualCost) FPIF(FixedPricePlusIncentiveFee) Contracttypewheretheselleragreestoperformaserviceorfurnishsuppliesattheestablishedcontractpriceplusa predeterminedfeeasanincentivebonus.Foreverydollarthesellercanreducecostsbelowthetargetcost,the predetermined fee as an incentive bonus For every dollar the seller can reduce costs below the target cost the savingswillbesharedbythesellerandbuyerbasedonarenegotiatedsharingformula(shareratio). Formula:Price=Lessor oftheCeilingPriceor(Actualcost+TargetProfit +Incentive),whereIncentive=ShareRatio%*(TargetCost ActualCost) PointofTotalAssumption(PTA) Thecostatwhichthecontractorassumestotalresponsibilityforeachadditionaldollarofcontractcost. Formula:PTA=((Ceilingprice Targetprice)/Buyersshare)+Targetcost, whereTargetprice Target cost Target profit where Target price =Targetcost+Targetprofit

Define:ChangeControl g Theproceduresusedtoidentify,document,approve(orreject)andcontrolchangestotheprojectbaselines. Define:EnterpriseEnvironmentalFactors Theexternalandinternalfactorsaffectingtheenterprise,includingorganizationalcultureandstructure,existing resources,marketconditionsandprojectmanagementsoftware resources market conditions and project management software Define:ExpertJudgment Judgmentbaseduponexpertiseappropriatetotheactivity.Itmaybeprovidedbyanygrouporperson,eitherwithin theorganizationorexternaltoit. Define:OrganizationalProcessAssets Anyorallprocessrelatedassets,includingformalandinformalplans,policiesandprocedures,guidelinesandhistorical knowledgefromlessonslearned. Define:ProgressiveElaboration Theprogressiveimprovementofaplanasmorespecificanddetailedinformationbecomesavailableduringthecourse oftheproject. Define:ProjectManagementInformationSystem(PMIS) ThePMISistheinformationsystemutilizedbytheorganizationtofacilitatetheimplementationoftechniques, documentsanddeliverablesforongoingandcompletedprojects.AlthoughPMIScanbemanualorautomated, automatedsystemsarebecomingmorecommontoday. Define:ProjectManagementMethodology Anystructuredapproachusedtoguidetheprojectteamduringthedevelopmentoftheprojectplan.Thismethodology mayutilizeforms,templatesandproceduresstandardtotheorganization.

Name3thingsAnSOWgenerallyincludes g g y 1.Thebusinessneedorreasonstheproductorserviceisrequired 2.Thedescriptionoftheproductscopeorproductrequirementswithasmuchdetailaspossibletosupportproject planningandestimates 3.Thestrategicplanandhowtheprojectsupportstheorganization'sstrategicgoalstofacilitatetheprojectselection decisionmakingprocess decision making process Describe2ProjectSelectionMethods 1.BenefitMeasurementMethodsarecomparativeapproachessuchasreturnoninvestment(ROI)analysis,scoring models,economicmodels,peerreviewsandreviewboards(adversarialproceedingstostopaproject). 2.MathematicalModelsusevariousalgorithms,oftenreferredtoasdecisionmodels(decisionmodelsarediscussed furtherinChapter11onriskmanagement). WhatisthePreliminaryScopeStatement? Itmightbeconsidereda"1stdraft"oftheunderstandingofprojectrequirements.Thepreliminaryscopestatement It i ht b id d "1 t d ft" f th d t di f j t i t Th li i t t t provesthattheprojectendsatisfiesthebusinessneed.Thepreliminaryscopestatementwillberevisedandrefined duringtheplanningprocesses. List7thingsoutlinedinthepreliminaryscopestatement 1.Productandprojectobjectives 2.Projectboundaries,constraintsandassumptions 3.InitialWBS,preliminarymilestonesandcostestimates 4.Initialhumanresourceplan 5.Identifiedrisks 5 Identified risks 6.Configurationmanagementrequirements 7.Acceptancecriteria

DescribethedevelopprojectmanagementplanprocessintheIntegration Itintegratesallthesubsidiaryplansfromthevariousknowledgeareasintoonecohesivewhole.Thiscomplete, consistentandcoherentdocumentistheprojectmanagementplan.Itiscrucialthattheprojectmanagerandthe consistent and coherent document is the project management plan It is crucial that the project manager and the projectteamspendsufficienttimeincreatingtheprojectmanagementplanbecausethisdocumentservestoreduce projectuncertainty,improvetheefficiencyofwork,provideabetterunderstandingoftheprojectobjectivesand provideabasisformonitoringandcontrolling.Thiskeydocumentalsoservesasacommunicationandeducationaltool forstakeholdersontheproject. What4conceptsofplanningdoesPMIemphasize? 1.Planningbeginsduringtheinitiatingphaseofaproject. 2.Planningdoesnotenduntiltheprojectisfinished. 3.Planningisanintellectualprocessthatrunsthroughalltheotherprocessesoftheproject. 4.Planningisiterative;astheprojectproceeds,theprojectteammustplan,replan andplanagain. a g s e a e; as e p ojec p oceeds, e p ojec ea us p a , ep a a d p a aga DescribetheProjectMgmtPlandoc. Itisacollectionofdocumentsthatidentifytheprojectassumptionsanddecisions.Theprojectmanagementplan providesbothastandardcommunicationtoolthroughoutthelifetimeoftheprojectandaverificationandagreement onobjectivesandrequirementsfromthestakeholders.Theplanisdocumentedandapprovedbyboththecustomer bj ti d i t f th t k h ld Th l i d t d d d b b th th t andthesponsor.Allbaselinesfortracking,control,analysis,communicationsandintegrationelementsareincorporated intotheprojectmanagementplan. Theprojectmanagementplanisakeydocumentthatintegratesoutputsfromalltheotherplanningprocessestoform aconsistent,comprehensivedocumenttoguidetheexecutionandcontroloftheproject.

BCRstatementscanbewrittenasratios.Forexample,aBCRof3:2hasthreebenefitstotwocosts a BCR statements can be written as ratios. For example, a BCR of 3:2 has three benefits to two costsa goodchoice.ABCRof1:3,however,isnotagoodchoice. Leadtimeisalwayshurryuptimeandisnegativetimebecausetheworkismovingclosertothe projectstartdate.Lagtimeisalwayswaitingtimeandisconsideredpositivetimebecausetheproject project start date Lag time is always waiting time and is considered positive time because the project managerisaddingtimetotheprojectschedule. Fragnet Arepresentationofaprojectnetworkdiagramthatisoftenusedforoutsourcedportionsofa p j , p project,repetitiveworkwithinaproject,orasubproject.Alsocalledasubnet. p j , p j LagtimePositivetimethatmovestwoormoreactivitiesfartherapart. AnegativeLeadisequivalenttoapositivelag. LeadtimeNegativetimethatbringstwoormoreactivitiesclosertogether. ParkinsonsLawAtheorythatstates:Workexpandssoastofillthetimeavailable foritscompletion.Itisconsideredwithtimeestimating,becausebloatedorpadded activityestimateswillfilltheamountoftimeallottedtotheactivity. RefinementAnupdatetotheworkbreakdownstructure. Therearefourspecificchangecontrolsystemsinprojectmanagement:scopechangecontrolsystem, schedulechangecontrolsystem,costchangecontrolsystem,andthecontractchangecontrolsystem.

Groundrulesareenforcedbytheprojectteam,nottheprojectmanager. Ground rules are enforced by the project team, not the project manager. Anexceptionreportistypicallycompletedwhenvariancesexceedagivenlimit. Sensitivityanalysisexamineseachrisktodeterminewhichonehasthelargestimpactontheprojects success. Residualrisks(thesearerisksthatareexpectedtoremainafterariskresponse) Secondaryrisks(thesearenewrisksthatarecreatedasaresultofariskresponse) Becauseofthelegalitiesassociatedwiththecontract,contractadministrationisoftenhandledasan operationoftheorganizationratherthanaspartofprojectmanagement. Billofmaterials(BOM)Definesthematerialsandproductsneededtocreatetheitemsdefinedinthe Bill of materials (BOM) Defines the materials and products needed to create the items defined in the correspondingworkbreakdownstructure(WBS).TheBOMisarrangedinsyncwiththehierarchyofthe deliverablesintheWBS. WhatdoesthetermBestpracticeoftenreferto? oAspecificsequenceofwork,describedintermsofSoftlogic. SunkNode oItisanodeinaNetworklogicdiagramwhichhasmultiplepredecessors. Qualityassuranceispreventiondrivenandisamanagement process. Qualitycontrolisinspectiondrivenandisaproject process.

Whichstatementisfalse forConstructivechanges? oConstructivechangesarelimitedtotheexecutionprocesses,whentheproductoftheprojectisbuilt. oTheorderofphasesmustbestrictlyconsecutivewithoutoverlappinginordertoallowforgates.

Name11ofthekeyelementsoftheprojectmanagementplan Name 11 of the key elements of the project management plan 1.Theprojectmanagementapproachorstrategytobeusedbythedefinitionoftheselectedprocessesandtoolsand techniques 2.Howprojectworkwillbemanagedandexecuted 3.Howchangeswillbemonitoredandcontrolled 4.Howconfigurationmanagementwillbeperformed 5.Howtheintegrityofperformancebaselineswillbemaintained 6.Howtheprojectwillbeclosed 7.Theselectedprojectlifecycletobeused 8.Thedescriptionofotherphasesorrelatedprojectsinmultiphaseormultiprogram 8 The description of other phases or related projects in multiphase or multiprogram environments 9.Theleveloffrequencyandtechniquesforcommunicatingwithstakeholders 10.Thescheduleormilestonechartofkeymanagementreviewsforprogress,issueresolutionanddecisions 11.Subsidiarymanagementplans

ReserveTimeorBufferorContingencyTime:itmeansaddingaportionoftimetotheactivitytoaccountforschedule risk. KeyEnvironmentalFactorsforHumanResourcePlanning: OrganizationFactors,TechnicalFactors,InterpersonalFactors,Location&LogisticsandPoliticalFactors. Organization Factors, Technical Factors , Interpersonal Factors, Location & Logistics and Political Factors.