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LOGO
anagers
Guide to Project Managem
th
Based
on
PMBOK
Guide,
4
Edition
PMBOK Guide
Company
LOGO
Ref:
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Company
LOGO
Suhail Iqbal
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Section I
SECTION I
THE
PROJECT MANAGEMENT
FRAMEWORK
The Structure
Section
SectionII--The
TheProject
ProjectManagement
ManagementFramework
Framework
Section
SectionIIIIThe
TheStandard
Standardfor
forProject
ProjectManagement
Managementof
ofaaProject
Project
Section
SectionIII
IIIThe
TheProject
ProjectManagement
ManagementKnowledge
KnowledgeAreas
Areas
Professional
ProfessionalResponsibility
Responsibilityand
andPMP
PMPExam
ExamGuidelines
Guidelines
Company
LOGO
The PM Framework
Introduction
Project Lifecycle
and Organization
Evaluation
CHAPTER 1
INTRODUCTION
Chapter 1 - Contents
INTRODUCTION
Topic 1.1
Topic 1.1
What is a Project?
Topic 1.2
PROJECT
A project is a temporary
endeavor undertaken to
create a unique product,
service or result.
What is a Project?
Topic 1.2
What is a Project?
Topic 1.2
EXAMPLES OF PROJECTS
PROJECT MANAGEMENT
Executing
PROJECT
Initiating
Monitoring
and Control
Closing
Initiating
Process
Group
Planning
Process
Group
Executing
Process
Group
Monitoring
and
Controlling
Process
Group
Closing
Process
Group
Initiating
Closing
Monitoring
and
Controlling
Planning
Executing
PROJECT MANAGEMENT
PROCESS GROUPS
1.Project
scope
achieved
1.Project
1.Project
1.Project
aligned
scope
tracked
agreed
with
and
1.Project
1.Project
1.Project
1.Project
aligned
scope
scope
tracked
agreed
with
achieved
and status
status
organizational
communicated
objectives
to
2.Project
stakeholders
2.Project
schedule
organizational
communicated
objectives
to
2.Project
2.Project
schedule
stakeholders
and
stakeholders
customer
expectations
managed
approved
and
stakeholders
customer needs
needs
approved
expectations
managed
2.Preliminary
2.Project
change
scope
is
3.Human
resources
3.Cost
budget
approved
2.Preliminary
2.Project
change
scope
is
3.Cost
3.Human
budget
resources
approved
statement
managed
includes
managed
statement
managed
includes
4.Project
team
identified
managed
4.Project
team
identified
stakeholder
needs
and
3.Quality
is
monitored
and
stakeholder
and
4.Quality
against
with
roles
and
3.Quality
isneeds
monitored
and
4.Quality
with
rolesmanaged
managed
and
against
expectations
controlled
expectations
plan
responsibilities
controlled agreed
responsibilities
plan
agreed
3.High-level
risks,
4.Risk
monitored
and
3.High-level
risks,
5.Material
5.Communications
activities
4.Risk is
isresources
monitored
and
5.Communications
5.Material
resources
activities
assumptions
controlled
assumptions
are
managed
agreed
controlledare
agreed
managed
understood
1.Project
outcomes
understood
1.Project
outcomes
5.Project
team
6.Quality
management
5.Project
team is
is managed
managed
6.Quality
management
accepted
4.Stakeholders
identified
accepted
4.Stakeholders
identified
process
6.Contracts
established
administered
process
6.Contracts
established
administered
and
their
needs
2.Project
resources
and
their
needs
2.Project
resources
7.Risk
response
plan
7.Risk
response
plan
understood
released
understood
released
approved
approved
5.Project
charter
approved
3.Stakeholder
perceptions
5.Project
charter
approved
3.Stakeholder
perceptions
8.Integrated
change
control
8.Integrated
change
control
measured
and
analyzed
measured
and analyzed
processes
defined
processes
defined
4.Project
closed
4.Project formally
formally
9.Procurement
plan
9.Procurement
plan closed
approved
approved
10.Project
10.Project plan
plan approved
approved
PROJECT MANAGEMENT
KNOWLEDGE AREAS
Scope
Procurement
Time
Risk
Cost
Quality
Communication
Human
Resource
Identifying requirements
Addressing the various needs, concerns, and
expectations of the stakeholders as the project is
planned and carried out.
Balancing the competing project constraints
including, but not limited to:
Scope
Quality
Schedule
Budget
Resources
Risk
PROGRESSIVE ELABORATION
Progressive Elaboration involves:
Continuously improving and detailing a plan as
the following becomes available:
More detailed information
More specific information
More accurate estimates
RELATIONSHIPS
Figure 1-1
Reference:
Reference: Figure
Figure 1-1.
1-1.
th
PMBOK Guide, 4 th Ed
Portfolio Management
Topic 1.4.1
PORTFOLIO
Portfolio Management
Topic 1.4.1
PORTFOLIO MANAGEMENT
Program Management
Topic 1.4.2
PROGRAM
Program Management
Topic 1.4.2
PROGRAM MANAGEMENT
Program Management
Topic 1.4.2
PROJECT INTERDEPENDENCIES
Topic 1.4.3
Topic 1.4.3
Topic 1.4.4
PMO
OPERATIONS
PROJECTS
THE SIMILARITIES
OPERATIONS
PROJECTS
THE DIFFERENCES
OPERATIONS
PROJECTS
Permanent Endeavors
Temporary Undertakings
Temporary Assignments
Temporary Resourcing
INTERSECTIONS
PROJECT MANAGER
CHARACTERISTICS
PERSONAL EFFECTIVENESS
Attitudes
Core personality characteristics
Leadership ability to guide the project
team while achieving project objectives
and balancing the project constraints.
Topic 1.7
PMBOK GUIDE
Topic 1.7
LIMITATIONS
FACTORS
Enterprise environmental factors
refer
INCLUDES
Chapter 2
CHAPTER 2
PROJECT LIFE CYCLE
AND ORGANIZATION
Chapter 2 - Contents
Chapter 2
OVERVIEW
CHARACTERISTICS
STRUCTURE CHARACTERISTICS
The generic life cycle structure generally
displays following characteristics:
Cost and staffing levels
Stakeholder influences, risk, and uncertainty Ability to influence the final characteristics of the
projects product, without significantly impacting
cost
Cost of changes and correcting errors
IMPACT OF VARIABLES
RELATIONSHIPS
The product life cycle consists of generally
sequential, non-overlapping product phases for a
product is generally the products retirement.
RELATIONSHIP EXAMPLES
RELATIONSHIP EXAMPLES
One product may have many projects associated
with it
Additional efficiencies may be gained by managing
all related projects collectively.
A number of separate projects may be related to
the development of a new automobile.
Each project may be distinct, but still contributes
a key deliverable necessary to bring the
automobile to market.
Oversight of all projects by a higher authority
could significantly increase the likelihood of
success.
Project Phases
Topic 2.1.3
DEFINITION
Project Phases
Topic 2.1.3
PHASE STRUCTURE
Phase Structure allows the project to be
segmented into logical subsets for ease of
management, planning and control.
The number of phases, the need for phases, and the
degree of control applied depend on the size,
complexity, and potential impact.
Project Phases
Topic 2.1.3
PHASE CHARACTERISTICS
Project Phases
Topic 2.1.3
PHASE CHARACTERISTICS
Project Phases
Topic 2.1.3
PHASE CHARACTERISTICS
Project Phases
Figure 2-3.
SINGLE-PHASE PROJECT
Project Phases
Topic 2.1.3
PHASE CHARACTERISTICS
Project Phases
Topic 2.1.3
PHASE EXAMPLE
Project Phases
Topic 2.1.3.1
PROJECT GOVERNANCE
Project Phases
Topic 2.1.3.1
PROJECT GOVERNANCE
Project Phases
Topic 2.1.3.1
PROJECT GOVERNANCE
Project Phases
Topic 2.1.3.1
PROJECT GOVERNANCE
Project Phases
Topic 2.1.3.2
PHASE-TO-PHASE
Project Phases
Topic 2.1.3.2
RELATIONSHIP TYPES
relationships,
1. A sequential relationship
where a phase can only start once previous
phase is complete.
Step-by-step nature of this approach reduces
uncertainty, but may eliminate options for
reducing the schedule.
Project Phases
Topic 2.1.3.2
RELATIONSHIP TYPES
2. An overlapping relationship
Where the phases start prior to completion of
the previous one.
This can sometimes be called fast tracking.
Overlapping phases may increase risk and can
result in rework if a subsequent phase
progresses before accurate information is
available from the previous phase.
Project Phases
Topic 2.1.3.2
RELATIONSHIP TYPES
3. An iterative relationship
Where only one phase is planned at any given time and
the planning for the next is carried out as work
progresses on the current phase and deliverables.
Approach useful in largely undefined, uncertain, or
rapid changing environments such as research.
Can reduce the ability to provide long term planning.
Scope is managed by continuously delivering
increments of the product.
Prioritizing requirements to minimize project risks and
maximize product business value.
Can also entail having all of the project team members
available throughout the project or, at a minimum, for
two consecutive phases.
Project Phases
Figure 2-4.
THREE-PHASE PROJECT
Project Phases
Figure 2-5.
OVERLAPPING PHASES
Project Phases
Topic 2.1.3.2
PHASE-TO-PHASE
THE SIMILARITIES
OPERATIONS
PROJECTS
THE DIFFERENCES
OPERATIONS
PROJECTS
Permanent Endeavors
Temporary Undertakings
Temporary Assignments
Temporary Resourcing
Stakeholders
Topic 2.3
WHO?
Stakeholders
Topic 2.3
Stakeholders
Topic 2.3
IDENTIFICATION
Stakeholders
Topic 2.3
Stakeholders
Topic 2.3
Operations
Management
Sponsor
Functional
Managers
Portfolio
Manager
PM
Team
Program
Manager
Project Team
Project
Manager
Other
Project
Team
Members
Sellers /
Busniess
Partners
Customer
s / Users
PMO
The Project
Reference:
Reference: Figure
Figure 2-6.
2-6.
th
PMBOK Guide, 4 th Ed
Stakeholders
Topic 2.3
CUSTOMER / USER
Customer
s / Users
Stakeholders
Topic 2.3
SPONSOR
Sponsor
Stakeholders
Topic 2.3
Sponsor
Stakeholders
Topic 2.3
Portfolio
Manager
Stakeholders
Topic 2.3
PROGRAM MANAGERS
Program
Manager
Stakeholders
Topic 2.3
PMO
PMO
Stakeholders
Topic 2.3
PMO PROVIDES
PMO
The PMO can provide but is not limited to: Administrative support services such as policies,
methodologies, and templates.
Training, mentoring, and coaching of project
managers.
Project support, guidance, and training on how to
manage projects and the use of tools.
Resource alignment of project staff.
Centralized communication among project
managers, project sponsors, managers, and other
stakeholders.
Stakeholders
Topic 2.3
PROJECT MANAGERS
Project
Manager
Stakeholders
Topic 2.3
Project
Manager
Stakeholders
Topic 2.3
Project
Manager
Stakeholders
Topic 2.3
PM
Team
PROJECT TEAM
Stakeholders
Topic 2.3
Functional
Managers
FUNCTIONAL MANAGERS
Human resources,
Finance,
Accounting or
Procurement.
Stakeholders
Topic 2.3
Operations
Management
OPERATIONS MANAGEMENT
Operations
Management
Topic 2.3
Stakeholders
Functional
Managers
Stakeholders
Topic 2.3
Sellers /
Busniess
Partners
Stakeholders
Topic 2.3
Sellers /
Busniess
Partners
Organizational Influences
Topic 2.4
WHAT IS?
The organizational
Culture,
Style, and
Structure
influence how projects are performed.
An organizations degree of
Project Management Maturity, and its
Project Management Systems
can also influence the project.
When a project involves external entities as part of a
joint venture or partnering, the project will be
influenced by more than one exterprise.
Organizational Influences
Topic 2.4.1
Organizational Influences
Topic 2.4.1
Organizational Influences
Topic 2.4.1
Organizational Influences
Topic 2.4.2
ORGANIZATIONAL STRUCTURE
Organizational Influences
Table 2-1
Organization
Structure
Project
Characteristics
Functional
Matrix
Weak
Matrix
Balanced
Matrix
Strong
Matrix
Projectized
High to
Almost
Total
High to
Almost
Total
Project Manager's
Authority
Little or
None
Limited
Low to
Moderate to
Moderate
High
Resource
Availability
Little or
None
Limited
Low to
Moderate to
Moderate
High
Functional
Manager
Functional
Manager
Mixed
Project
Manager
Project
Manager
Project Manager's
Role
Part-Time
Part-Time
Full-Time
Full-Time
Full-Time
Project
Management
Administrative
Staff
Part-Time
Part-Time
Part-Time
Full-Time
Full-Time
Reference:
Reference: Table
Table 2-1.
2-1.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Functional Organization
Figure 2-7
Project
Coordination
Chief Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Reference:
Reference: Figure
Figure 2-7.
2-7.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Project
Coordination
Reference:
Reference: Figure
Figure 2-8.
2-8.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Balanced Matrix
Organization
Figure 2-9
Chief Executive
Functional
Manager
Functional
Manager
Functional
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Project
Manager
Staff
Staff
Project
Coordination
Reference:
Reference: Figure
Figure 2-9.
2-9.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Functional
Manager
Functional
Manager
Manager of
Project
Managers
Staff
Staff
Staff
Project
Manager
Staff
Staff
Staff
Project
Manager
Staff
Staff
Staff
Project
Manager
Project
Coordination
Reference:
Reference: Figure
Figure 2-10.
2-10.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Projectized Organization
Figure 2-11
Project
Coordination
Chief Executive
Project
Manager
Project
Manager
Project
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Reference:
Reference: Figure
Figure 2-11.
2-11.
th
PMBOK Guide, 4 th Ed
Organizational Influences
Topic 2.4.2
Composite Organization
Figure 2-12
Chief Executive
Functional
Manager
Project B
Coordination
Functional
Manager
Functional
Manager
Manager of
Project Managers
Staff
Staff
Staff
Project
Manager
Staff
Staff
Staff
Project
Manager
Staff
Project Project A
Coordination
Manager
Staff
Staff
Reference:
Reference: Figure
Figure 2-12.
2-12.
th
PMBOK Guide, 4 th Ed
Topic 2.4.3
Topic 2.4.3
Topic 2.4.3
Standardized Guidelines
Work instructions,
Proposal evaluation criteria
Performance measurement criteria.
Templates
Risk
Work breakdown structure
Project schedule network diagram
Contract templates
Guidelines and criteria for tailoring the organizations set of
standard processes to satisfy the specific needs of the project.
Topic 2.4.3
Topic 2.4.3
Topic 2.4.3
Topic 2.4.3
Topic 2.4.3
Topic 2.4.3
Section III
SECTION II
THE STANDARD FOR
PROJECT MANAGEMENT
OF A PROJECT
Chapter 2
CHAPTER 3
PROJECT MANAGEMENT
PROCESSES
FOR A PROJECT
Chapter 3 - Overview
OVERVIEW
PROJECT MANAGEMENT
Chapter 3 - Overview
OVERVIEW
PROCESS
Chapter 3 - Overview
OVERVIEW
Chapter 3 - Overview
OVERVIEW
Chapter 3 - Overview
OVERVIEW
PROJECT PROCESSES
Chapter 3 - Overview
OVERVIEW
IN-SCOPE PROCESSES
Chapter 3 - Overview
OVERVIEW
GOOD PRACTICE
Chapter 3 - Overview
OVERVIEW
RESPONSIBILITY
Chapter 3 - Contents
Chapter 2
PROJECT MANAGEMENT
PROCESSES
FOR A PROJECT
Chapter 3 - Overview
OVERVIEW
ADDRESSING PROCESS
PM Process Groups
Figure 3-1
Reference:
Reference: Figure
Figure 3-1.
3-1.
th
PMBOK Guide, 4 th Ed
Figure 3-2
Reference:
Reference: Figure
Figure 3-2.
3-2.
th
PMBOK Guide, 4 th Ed
Reference:
Reference: Figure
Figure 3-3.
3-3.
th
PMBOK Guide, 4 th Ed
Figure 3-4
Reference:
Reference: Figure
Figure 3-4.
3-4.
th
PMBOK Guide, 4 th Ed
Reference:
Reference: Figure
Figure 3-5.
3-5.
th
PMBOK Guide, 4 th Ed
Section III
SECTION III
THE
PROJECT MANAGEMENT
KNOWLEDGE AREAS
Figure III-1
Reference:
Reference: Figure
Figure III-1.
III-1.
th
PMBOK Guide, 4 th Ed
Chapter 4
CHAPTER 4
PROJECT INTEGRATION
MANAGEMENT
Chapter 4 - Contents
Chapter 4
INTEGRATION MANAGEMENT
Figure 4-1
Reference:
Reference: Figure
Figure 4.1.
4.1.
th
PMBOK Guide, 4 th Ed
Project Charter
WHAT IS?
Formally recognizes the existence of a project
Refers to the business need the project is
addressing
Describes the product to be delivered
Gives the project manager the authority to
apply resources to the project
1 1
Integration Initiating
Process 4.1
Tools and
Technique
s
4.1
Inputs
Project
Statement
of Work
Outputs
Expert
Judgment
Project
Charter
____________
____________
Business
Case
Contract
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
Reference:
Reference: Figure
Figure 4.2.
4.2.
th
PMBOK Guide, 4 th Ed
Figure 4-3
Reference:
Reference: Figure
Figure 4-3.
4-3.
th
PMBOK Guide, 4 th Ed
1 2
Integration Planning
Process 4.2
Tools and
Technique
s
4.2
Inputs
Project
Charter
Expert
Judgment
Outputs
from
planning
processes
____________
Outputs
Project
Manageme
nt Plan
____________
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
Reference:
Reference: Figure
Figure 4.4.
4.4.
th
PMBOK Guide, 4 th Ed
Figure 4-5
Reference:
Reference: Figure
Figure 4-5.
4-5.
th
PMBOK Guide, 4 th Ed
1 3
Integration Executing
Process 4.3
PROCESS OF PERFORMING THE WORK DEFINED IN THE PROJECT MANAGEMENT PLAN TO ACHIEVE THE
PROJECTS OBJECTIVES.
Tools and
Technique
s
4.3
Inputs
Project
Manageme
nt Plan
Approved
Change
Requests
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
Outputs
Expert
Judgment
Deliverable
s
Project
Managemen
t
Information
System
Work
Performanc
e
Information
____________
Change
Request
Project
Manageme
nt Plan
Reference:
4.6.
Reference: Figure
Figure
4.6.
Updates
th
PMBOK Guide, 4 th Ed
Figure 4-7
Reference:
Reference: Figure
Figure 4-7.
4-7.
th
PMBOK Guide, 4 th Ed
1 4
Integration Monitoring
& Control
Process 4.4
PROCESS OF TRACKING, REVIEWING, AND REGULATING THE PROGRESS TO MEET THE PERFORMANCE
OBJECTIVES DEFINED IN THE PROJECT MANAGEMENT PLAN.
Tools and
Technique
s
4.4
Inputs
Project
Manageme
nt Plan
Performanc
e Reports
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
____________
Outputs
Expert
Judgment
Change
Requests
____________
Project
Manageme
nt Plan
Updates
Project
Document
Updates
____________
Reference:
Reference: Figure
Figure 4.8.
4.8.
th
PMBOK Guide, 4 th Ed
Figure 4-9
Reference:
Reference: Figure
Figure 4-9.
4-9.
th
PMBOK Guide, 4 th Ed
1 4
Integration Monitoring
& Control
Process 4.5
PROCESS OF REVIEWING ALL CHANGE REQUESTS, APPROVING CHANGES, AND MANAGING CHANGES TO
THE DELIVERABLES, ORGANIZATIONAL PROCESS ASSETS, PROJECT DOCUMENTS, AND THE PROJECT
MANAGEMENT PLAN.
Tools and
Technique
s
4.5
Inputs
Project
Manageme
nt Plan
Work
Performanc
e
Information
Change
Requests
Enterprise
Environmen
tal Factors
Expert
Judgment
Change
Control
Meetings
____________
Outputs
Change
Request
Status
Updates
Project
Manageme
nt Plan
Updates
Project
Document
Updates
Reference:
4.10.
Reference: Figure
Figure
4.10.
____________
th
PMBOK Guide, 4 th Ed
Figure 4-11
Reference:
Reference: Figure
Figure 4-11.
4-11.
th
PMBOK Guide, 4 th Ed
1 5
Integration Closing
Process 4.6
PROCESS OF FINALIZING ALL ACTIVITIES ACROSS ALL OF THE MANAGEMENT PROCESS GROUPS TO
FORMALLY COMPLETE THE PROJECT OR PHASE.
Tools and
Technique
s
4.6
Inputs
Project
Manageme
nt Plan
Accepted
Deliverable
s
Organizatio
nal Process
Assets
Expert
Judgment
____________
Outputs
Final
Product,
Service or
Result
Transition
Organizatio
nal Process
Assets
Updates
____________
____________
Reference:
Reference: Figure
Figure 4.13.
4.13.
th
PMBOK Guide, 4 th Ed
Figure 4-14
Reference:
Reference: Figure
Figure 4-14.
4-14.
th
PMBOK Guide, 4 th Ed
Chapter 5
CHAPTER 5
PROJECT SCOPE
MANAGEMENT
Chapter 5 - Contents
Chapter 5
SCOPE MANAGEMENT
Scope
WHAT IS?
Product scope The features and functions
that are to be included in a product or service
Project scope The work that must be done in
order to deliver a product with the specified
features and functions
Successful completion of product scope is
measured against the requirements; project
scope is measured against the plan
Scope Management
WHAT IS?
Scope Management
WHAT
PlanIS?
Guidelines for how scope is to be managed and
how scope changes are to be integrated into
the project
It includes:
An assessment of the stability of the project
scope
A clear description of how scope changes
will be identified and classified
Scope Statement
WHAT IS?
A written statement that includes:
Project justification, the major deliverables,
and the project objectives
Criteria used to determine if the project or
phase has been successfully completed
Figure 5-1
Reference:
Reference: Figure
Figure 5.1.
5.1.
th
PMBOK Guide, 4 th Ed
2 2
Scope
Planning
Process 5.1
Collect Requirements
PROCESS OF DEFINING AND DOCUMENTING STAKEHOLDERS NEEDS TO MEET THE PROJECT OBJECTIVES.
Tools and
Technique
s
5.1
Inputs
Project
Charter
Stakeholder
Register
____________
Outputs
Interviews
Requiremen
Focus
ts
Groups
Documenta
Facilitated
tion
Workshops
Requiremen
Group
ts
Creativity
Manageme
Techniques
nt Plan
Group
Requiremen
Decision
Making
ts
Techniques
Traceablity
Questionnai
Matrix
Reference:
5.2.
Reference: Figure
Figure
5.2.
res and PMBOK Guide, 4thth Ed
Figure 5-3
Reference:
Reference: Figure
Figure 5-3.
5-3.
th
PMBOK Guide, 4 th Ed
2 2
Scope
Process 5.2
Define Scope
Planning
Tools and
Technique
s
5.2
Inputs
Project
Charter
Expert
Judgment
Requiremen
ts
Documenta
tion
Product
Analysis
Organizatio
nal Process
Assets
____________
Alternatives
Identificatio
n
Outputs
Project
Scope
Statement
Project
Document
Updates
____________
Facilitated
Workshops
____________
Reference:
Reference: Figure
Figure 5.4.
5.4.
th
PMBOK Guide, 4 th Ed
Figure 5-5
Reference:
Reference: Figure
Figure 5-5.
5-5.
th
PMBOK Guide, 4 th Ed
2 2
Scope
Process 5.3
Create WBS
Planning
PROCESS OF SUBDIVIDING PROJECT DELIVERABLES AND PROJECT WORK INTO SMALLER, MORE
MANAGEABLE COMPONENTS.
Tools and
Technique
s
5.3
Inputs
Project
Scope
Statement
Requiremen
ts
Documenta
tion
Organizatio
nal Process
Assets
____________
Decomposit
ion
____________
Outputs
WBS
WBS
Dictionary
Scope
Baseline
Project
Document
Updates
____________
Reference:
Reference: Figure
Figure 5.6.
5.6.
th
PMBOK Guide, 4 th Ed
Figure 5-7
Reference:
Reference: Figure
Figure 5-7.
5-7.
th
PMBOK Guide, 4 th Ed
Figure 5-8
Reference:
Reference: Figure
Figure 5-8.
5-8.
th
PMBOK Guide, 4 th Ed
Figure 5-9
Reference:
Reference: Figure
Figure 5-9.
5-9.
th
PMBOK Guide, 4 th Ed
Figure 5-10
Reference:
Reference: Figure
Figure 5-10.
5-10.
th
PMBOK Guide, 4 th Ed
WBS
PRODUCT ORIENTED
Deliverable oriented
grouping of project
elements that organizes
and defines the total
scope of the project
Hardware
Services
Data
WBS
TERMS
Code of accounts Uniquely identifies each
element of the WBS
Work packages A deliverable at the lowest
level of the WBS
WBS dictionary Includes work-package
descriptions
Typical WBS
WITH CODE OF ACCOUNTS
Information
System
1
.
Project
Managemen
1.1
t
Systems
Engineering
1.2
Hardware
Acquisition
1.3
Software
Development
1.4
Facilities
Modifications
1.5
Training
Development
1.6
Project
Planning
1.1.1
Product
Design
1.2.1
CPU
Acquisition
1.3.1
Operating
System
1.4.1
Facility
Plans
1.5.1
Training
Plans
1.6.1
Project
Control
1.1.2
Systems
Integration
1.2.2
Auxiliary
Equipment
1.3.2
Database
1.4.2
Facility
Modification
1.5.2
Training
Courses
1.6.2
Project
Data
1.1.3
Test &
Evaluation
1.2.3
Printer
Acquisition
1.3.3
Application
Development
1.4.3
Facility
Installation
1.5.3
WBS vs OBS
RESPONSIBILITY ASSIGNMENT MATRIX (RAM)
Work
Breakdown
Functional
Organization
Work
Packages
&
Planning
Packages
2 4
Scope
Process 5.4
Verify Scope
Monitoring
& Control
Tools and
Technique
s
5.4
Inputs
Project
Manageme
nt Plan
Requiremen
ts
Documenta
tion
Requiremen
ts
Traceablity
Matrix
Validated
Inspection
____________
Outputs
Accepted
Deliverable
s
Change
Requests
Project
Document
Updates
____________
Reference:
Reference: Figure
Figure 5.11.
5.11.
th
PMBOK Guide, 4 th Ed
Figure 5-12
Reference:
Reference: Figure
Figure 5-12.
5-12.
th
PMBOK Guide, 4 th Ed
2 4
Scope
Monitoring
& Control
Process 5.5
Control Scope
PROCESS OF MONITORING THE STATUS OF THE PROJECT AND PRODUCT SCOPE AND MANAGING
CHANGES TO THE SCOPE BASELINE.
Tools and
Technique
s
5.5
Inputs
Project
Manageme
nt Plan
Work
Performanc
e
Information
Requiremen
ts
Documenta
tion
Requiremen
Variance
Analysis
____________
Outputs
Work
Performanc
e
Measureme
nts
Organizatio
nal Process
Assets
Updates
Change
Requests
Reference:
5.13.
Reference: Figure
Figure
5.13.
Project
th
PMBOK Guide, 4 th Ed
Figure 5-14
Reference:
Reference: Figure
Figure 5-14.
5-14.
th
PMBOK Guide, 4 th Ed
Chapter 6
CHAPTER 6
PROJECT TIME
MANAGEMENT
Chapter 6 - Contents
Chapter 6
TIME MANAGEMENT
TIME MANAGEMENT
WHAT IS?
Figure 6-1
Reference:
Reference: Figure
Figure 6.1.
6.1.
th
PMBOK Guide, 4 th Ed
Figure 6-2
Reference:
Reference: Figure
Figure 6.2.
6.2.
th
PMBOK Guide, 4 th Ed
3 2
Time
Planning
Process 6.1
Define Activities
Tools and
Technique
s
6.1
Inputs
Scope
Baseline
Decomposit
ion
Enterprise
Environmen
tal Factors
Rolling
Wave
Planning
Organizatio
nal Process
Assets
Templates
____________
Outputs
Activity List
Activity
Attributes
Milestone
List
____________
Expert
Judgment
____________
Reference:
Reference: Figure
Figure 6.3.
6.3.
th
PMBOK Guide, 4 th Ed
Figure 6-4
Reference:
Reference: Figure
Figure 6.4.
6.4.
th
PMBOK Guide, 4 th Ed
PLANNING
WHAT IS?
COMPONENTS
3 2
Time
Process 6.2
Sequence Activities
Planning
Tools and
Technique
s
6.2
Inputs
Activity List
Activity
Attributes
Milestone
List
Project
Scope
Statement
Organizatio
nal Process
Assets
Outputs
Precedence
Diagrammin
g Method
(PDM)
Project
Schedule
Network
Diagram
Dependenc
y
Determinati
on
Project
Document
Updates
____________
Applying
Leads and
Lags
Reference: Figure
Figure 6.5.
6.5.
ScheduleReference:
th
PMBOK Guide, 4 th Ed
Figure 6-6
Reference:
Reference: Figure
Figure 6.6.
6.6.
th
PMBOK Guide, 4 th Ed
Figure 6-7
Reference:
Reference: Figure
Figure 6.7.
6.7.
th
PMBOK Guide, 4 th Ed
PDM
Precedence diagramming method (PDM)
Nodes represent activities and arrows show dependencies
B
E
Start
C
Finish
Activity Box
A Precedence Network
More Tools
Conditional diagramming methods
Diagramming techniques such as Graphical
Evaluation and Review Technique (GERT) and
System Dynamics models allow the depiction
of non-sequential activities and conditional
branches
Network templates Can include an entire
project or just a portion of it (i.e., subnets and
fragnets)
3 2
Time
Planning
Process 6.3
PROCESS OF ESTIMATING THE TYPE AND QUANTITIES OF MATERIAL, PEOPLE, EQUIPMENT, OR SUPPLIES
REQUIRED TO PERFORM EACH ACTIVITY.
Tools and
Technique
s
6.3
Inputs
Activity List
Activity
Attributes
Resource
Calendars
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
Expert
Judgment
Alternatives
Analysis
Published
Estimating
Data
Bottom-up
Estimating
Outputs
Activity
Resource
Requiremen
ts
Resource
Breakdown
Structure
Project
Document
Updates
Project
____________
Managemen
Reference:
Reference: Figure
Figure 6.8.
6.8.
t Software
th
PMBOK Guide, 4 th Ed
Figure 6-9
Reference:
Reference: Figure
Figure 6.9.
6.9.
th
PMBOK Guide, 4 th Ed
3 2
Time
Planning
Process 6.4
Tools and
Technique
s
6.4
Inputs
Activity List
Activity
Attributes
Activity
Resource
Requiremen
ts
Resource
Calendars
Project
Scope
Statement
Enterprise
Environmen
Expert
Judgment
Analogous
Estimating
Parametric
Estimating
Three-Point
Estimates
Outputs
Activity
Duration
Estimates
Project
Document
Updates
____________
Reserve
Analysis
Reference:
Reference: Figure
Figure 6.10.
6.10.
____________
th
PMBOK Guide, 4 th Ed
Figure 6-11
Reference:
Reference: Figure
Figure 6.11.
6.11.
th
PMBOK Guide, 4 th Ed
Three-Point Estimates
PERT
3 2
Time
Planning
Process 6.5
Develop Schedule
Tools and
Technique
s
6.5
Inputs
Activity List
Activity
Attributes
Project
Schedule
Network
Diagrams
Activity
Resource
Requirement
s
Resource
Calendars
Activity
Duration
Outputs
Schedule
Project
Network
Schedule
Analysis
Schedule
Critical Path
Baseline
Method
Critical
Schedule
Data
Chain
Method
Project
Resource
Document
Leveling
Updates
What-If
Scenario
____________
Analysis Reference:
Reference: Figure
Figure 6.12.
6.12.
ApplyingPMBOK Guide, 4thth Ed
Figure 6-13
Reference:
Reference: Figure
Figure 6.13.
6.13.
th
PMBOK Guide, 4 th Ed
Schedule Compression
Project Schedule
Figure 6-14
Reference:
Reference: Figure
Figure 6.14.
6.14.
th
PMBOK Guide, 4 th Ed
3 4
Time
Monitoring
& Control
Process 6.6
Control Schedule
PROCESS OF MONITORING THE STATUS OF THE PROJECT TO UPDATE PROJECT PROGRESS AND
MANAGING CHANGES TO THE SCHEDULE BASELINE.
Tools and
Technique
s
6.6
Inputs
Project
Manageme
nt Plan
Project
Schedule
Work
Performanc
e
Information
Organizatio
nal Process
Assets
Outputs
Performanc
Work
e Reviews
Performanc
Variance
e
Analysis
Measureme
Project
nts
Managemen
Organizatio
t Software
nal Process
Resource
Assets
Leveling
Updates
What-If
Change
Scenario
Analysis
Requests
AdjustingReference: Figure 6.15.
Reference: Figure
6.15.
Project
Leads and
th
PMBOK Guide, 4 th Ed
Figure 6-15
Reference:
Reference: Figure
Figure 6.15.
6.15.
th
PMBOK Guide, 4 th Ed
Chapter 7
CHAPTER 7
PROJECT COST
MANAGEMENT
Chapter 7 - Contents
Chapter 7
COST MANAGEMENT
Figure 7-1
Reference:
Reference: Figure
Figure 7.1.
7.1.
th
PMBOK Guide, 4 th Ed
Project Assessment
Types
Strategic Assessment
Technical Assessment
Economic Assessment
Strategic Assessment
Typical Issues
Objectives contribution to org stated
objectives
IS Plan fit into existing IS Plan
Organization structure effect on
MIS information and levels of info
Personnel manning levels and existing
employees skill base
Image effect on customer attitudes
Strategic Assessment
Programme
Programme aMeasurement
collection of projects contributing
to same overall organization goals.
Well defined programme goals
All projects selected and tuned to meet org goals
Viability, timing, resourcing and final worth of a
project may be affected by the programme
Value of any project is increased by the fact it is
part of a programme
Strategic assessment of proposed project
sponsor
If no programme, proposed project evaluated
within the context of orgs overall business
objectives
Strategic Assessment
Portfolio Management
Technical Assessment
Evaluating the required functionality against
hardware and software available.
Existing strategic information systems plan
Limitations on nature of solution
Constraints influencing cost of solution
Economic Assessment
Cost Benefit Analysis
Most common way of carrying out Economic
Assessment.
Comparing expected costs with benefits of
having it in place.
Whether the estimated costs are exceeded by the
estimated income and other benefits?
Comparison with other projects for priority and
scarce resource allocation
Cost-Benefit Evaluation
Techniques
Net Profit
Payback Period
Return on Investment
Net Present Value
Internal Rate of Return
Cost-Benefit Evaluation
Net Profit
Difference between Total Costs and Total Income
Cost-Benefit Evaluation
Net Profit
All projects contain an element of risk
Simple net profit takes no account of the timing of
the each cash flows.
Project 1 bulk of the income occurs late in the life
Project 3 Steady income throughout
Cost-Benefit Evaluation
Payback Period
Cost-Benefit Evaluation
Return on Investment (ROI)
10%
2%
10%
12.5%
Simple, easy to
calculate
No account of
timing of cash flow
Tempting to
compare with
interest rates
misleading
Cost-Benefit Evaluation
Net Present Value (NPV)
Discount factor =
_1_
(1+r) t
r = Discount rate
t = number of years
_1_
= 0.9091
(1+10/100) 1
Cost-Benefit Evaluation
Net Present Value (NPV)
PV =
value x _1_
(1+r)t
r = Discount rate
t = number of years
Cost-Benefit Evaluation
Net Present Value (NPV)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
This is only a problem where investments are limited
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
Convenient and useful measure
of the value of project
(IRR)
Cost-Benefit Evaluation
Internal Rate of Return
(IRR)
4 2
Cost
Planning
Process 7.1
Estimate Costs
Tools and
Technique
s
7.1
Inputs
Scope
Baseline
Project
Schedule
Human
Resource
Plan
Risk
Register
Enterprise
Environmen
tal Factors
Outputs
Expert
Activity
Judgment
Cost
Analogous
Estimates
Estimating
Basis of
Parametric
Estimates
Estimating
Bottom-up
Project
Document
Estimating
Three-Point
Updates
Estimates
____________
Resource
Analysis
Cost of Reference: Figure 7.2.
Reference: Figure 7.2.
Quality PMBOK Guide, 4thth Ed
Figure 7-3
Reference:
Reference: Figure
Figure 7.3.
7.3.
th
PMBOK Guide, 4 th Ed
4 2
Cost
Planning
Process 7.2
Determine Budget
Tools and
Technique
s
7.2
Inputs
Activity
Cost
Estimates
Basis of
Estimates
Scope
Baseline
Project
Schedule
Resource
Calendars
Cost
Aggregation
Reserve
Analysis
Expert
Judgment
Historical
Relationship
s
Outputs
Cost
Performanc
e Baseline
Project
Funding
Requiremen
ts
Project
Document
Updates
Funding
____________
Limit
Reference:
Reference: Figure
Figure 7.4.
7.4.
Reconciliati
th
PMBOK Guide, 4 th Ed
Figure 7-5
Reference:
Reference: Figure
Figure 7.5.
7.5.
th
PMBOK Guide, 4 th Ed
Figure 7-6
Reference:
Reference: Figure
Figure 7.6.
7.6.
th
PMBOK Guide, 4 th Ed
4 4
Cost
Monitoring
& Control
Process 7.3
Control Costs
PROCESS OF MONITORING THE STATUS OF THE PROJECT TO UPDATE THE PROJECT BUDGET AND
MANAGING CHANGES TO THE COST BASELINE.
Tools and
Technique
s
7.3
Inputs
Project
Manageme
nt Plan
Project
Funding
Requiremen
ts
Work
Performanc
e
Information
Organizatio
Earned
Value
Managemen
t
Forecasting
ToComplete
Performanc
e Index
Outputs
Work
Performanc
e
Measureme
nts
Budget
Forecasts
Organizatio
nal Process
Assets
Updates
Performanc
e Reviews
Reference:
7.7.
Reference: Figure
Figure
7.7.
Project
VariancePMBOK Guide, 4thth Ed
Figure 7-8
Reference:
Reference: Figure
Figure 7.8.
7.8.
th
PMBOK Guide, 4 th Ed
EV Terms
Data Element
Term
Acronym
Scheduled Work
BCWS
PV
PV
Earned Value
BCWP
EV
EV
Actuals
ACWP
AC
AC
Authorized Work
Budget at Completion
BAC
Forecasted Cost
Estimate at Completion
EAC
Work Variance
Schedule Variance
SV
Cost Variance
Cost Variance
CV
Completion
Variance
Variance at Completion
VAC
Cost variance (CV). CV equals earned value (EV) minus actual cost
(AC). The cost variance at the end of the project will be the difference
between the budget at completion (BAC) and the actual amount spent.
Formula: CV= EV AC
Schedule variance (SV). SV equals earned value (EV) minus planned
value (PV). Schedule variance will ultimately equal zero when the
project is completed because all of the planned values will have been
earned.
Formula: SV = EV PV
These two values, the CV and SV, can be converted to efficiency
indicators to reflect the cost and schedule performance of any project.
Cost performance index (CPI). A CPI value less than 1.0 indicates a cost
overrun of the estimates. A CPI value greater than 1.0 indicates a cost
under-run of the estimates. CPI equals the ratio of the EV to the AC. The
CPI is the most commonly used cost-efficiency indicator.
Formula: CPI = EV/AC
Cumulative CPI (CPIC). The cumulative CPI is widely used to forecast
project costs at completion. CPIC equals the sum of the periodic
earned values (EVC) divided by the sum of the individual actual costs
(ACC).
Formula: CPIC = EVC/ACC
Schedule performance index (SPI). The SPI is used, in addition to the
schedule status, to predict the completion date and is sometimes used
in conjunction with the CPI to forecast the project completion
estimates. SPI equals the ratio of the EV to the PV.
Formula: SPI = EV/PV
Figure 7-9
Reference:
Reference: Figure
Figure 7.9.
7.9.
th
PMBOK Guide, 4 th Ed
1.1 Frame
Frame Shop
Mr. I. M. Smart
$ 125,000
Jan - Jun 00
Planning Packages
Detailed, short-span
Required to accomplish
the CA objectives;
future
term
Work Packages
Planning Packages
Task 1
Task 2
Task 3
Task 4
Task 5
BCWS $K
Time-Phased Budget
4500
4000
3500
3000
2500
2000
1500
1000
500
0
BAC
Jan
Feb
Mar
Apr
Reporting Period
May
Jun
Cost Control
BA
C
60000
50000
PV
40000
CURRENT
70000
30000
20000
10000
0
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
PV
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
0
2500
8000
13000
42000
62000
70700
80000
70000
PV
60000
EV
50000
40000
30000
20000
10000
0
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
80000
70000
AC
PV
60000
EV
50000
40000
30000
20000
10000
0
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
Schedule Variance
Comparing the EV, the amount originally
budgeted for the work that has been completed
or is in-process, to the PV, the amount
budgeted for the work that was planned to
have been accomplished
SV = EV PV
A negative result means less work has been
performed than was planned
SV Example
PV = $42,000
EV = $38,000
AC = $48,000
SV = EV PV
= $38,000 $42,000 = - $4,000
SV% = SV / PV
= - $4000 / $42,000 = - 0.095
= - 9.5%
Cost Variance
Comparing the amount originally budgeted for
the work completed or in-process, the EV, to
the actual costs of that work, the AC
CV = EV AC
A negative CV means more dollars were spent
to accomplish the work than was planned
Performance Indices
Dfn: Cost- and schedule-performance efficiency
calculations; expressed in $
Cost Performance Index (CPI)
CPI = BCWP/ACWP
Schedule Performance Index (SPI)
SPI = BCWP/BCWS
CPI Example
PV = $42,000
EV = $38,000
AC = $48,000
CPI = EV / AC
= $38,000 / $48,000 = 0.79
$0.79 worth of work was actually done for
each $1.00 spent
SPI Example
PV = $42,000
EV = $38,000
AC = $48,000
SPI = EV / PV
= $38,000 / $42,000 = 0.90
$0.90 worth of work has been done for each
$1.00 worth of work that was planned to be done
Estimate at Completion
(EAC)
EAC Example
One methodology:
EAC = BAC / CPI
BAC = $80,000
CPI
= 0.79
EAC
Variance at Completion
BAC = $80,000
EAC = $101,265
VAC = BAC EAC
= $80,000 $101,265
= -$21,265
Based on past performance, project will
exceed planned budget by $21,265
Figure 7-10
Reference:
Reference: Figure
Figure 7.10.
7.10.
th
PMBOK Guide, 4 th Ed
EV
$1
$2
$1
$2
$2
$2
$2
$1
$1
AC
$1 On schedule
On cost
$1 On schedule
Under cost
$2 On schedule
Over cost
$2 Ahead of schedule On cost
$3 Ahead of schedule Over cost
$1 Ahead of schedule Under cost
$1 Behind schedule Under cost
$3 Behind schedule Over cost
$1 Behind schedule On cost
Example
PV
100
125
75
100
EV
125
100
75
75
AC
EAC
BAC
75
600
560
100
850
800
75
700
560
100
570
600
BAC
BAC== $$40k
40k
EV
EV==$$20k
20k
PV
PV==$$28k
28k
AC
AC== $$26k
26k
Calculate
Calculate
%
%of
of Work
WorkScheduled
Scheduled
%
%of
of Budget
Budget Spent
Spent
%
%of
of Work
WorkAccomplished
Accomplished
Cost
Cost Variance
Variance
Schedule
ScheduleVariance
Variance
Sample Solution
Calculate
% of Work Scheduled
%
% of Budget Spent
%
% of Work Accomplished
Cost Variance
Schedule Variance
EV AC = $ 20K $ 26K = - $ 6K
EV PV = $ 20K $ 28K = - $ 8K
Case 1
PV = $ 1,860
EV = $ 1,860
AC = $ 1,860
Case 2
PV = $ 1,900
AC = $ 1,700
Case 2
PV = $ 1,900
EV = $ 1,500
AC = $ 1,700
SV
= EV PV = - $ 400
CV
= EV AC = - $ 200
Case 2
PV = $ 1,900
EV = $ 1,500
AC = $ 1,700
SPI = EV / PV = $ 0.79
CPI = EV / AC = $ 0.88
Case 2
PV = $ 1,900
EV = $ 1,500
AC = $ 1,700
Case 3
PV = $ 2,600
EV = $ 2,400
AC = $ 2,200
Case 3
PV = $ 2,600
EV = $ 2,400
AC = $ 2,200
SPI = 0.92
SV = - $ 200; SV % = - 8 %
Case 3
PV = $ 2,600
EV = $ 2,400
AC = $ 2,200
CV = + $ 200; CV % = + 8 %
CPI = 1.09
Case 4
In this case, the
work is not being
accomplished on
schedule...
PV = $ 1,700
EV = $ 1,500
AC = $ 1,500
SV = - $ 200; SV % = - 12 %
SPI = 0.88
Case
4
...but the cost of
the work
accomplished is
just as we
budgeted.
CV = $ 0.00
CPI = 1.00
PV = $ 1,700
EV = $ 1,500
AC = $ 1,500
Case
5
A positive scenario;
right? But is it because
we are out-performing
our learning-curve
standards or because
we planned too
pessimistically?
PV = $ 1,400
EV = $ 1,600
AC = $ 1,400
Case 5
Here in this case,
we are getting
work done at 114
percent
efficiency...
SPI = 1.14
CPI = 1.14
PV = $ 1,400
EV = $ 1,600
AC = $ 1,400
Case 5
...work is ahead of
schedule by 14
percent and
under-running cost
by 12.5%.
PV = $ 1,400
EV = $ 1,600
AC = $ 1,400
SV = + $ 200; SV % = + 14 %
CV = + $ 200; CV % = + 12.5 %
Case 6
In Case 6, work is
being done
efficiently, but a
cost overrun is
occurring.
PV = $ 2,000
EV = $ 2,200
AC = $ 2,400
SPI = 1.10
CV = - $ 200; CV % = - 9 %
Case 7
In Case 7, work is
being done
efficiently, and
costs are right on
target.
SPI = 1.09
CV = $ 0.00
PV = $ 2,200
EV = $ 2,400
AC = $ 2,400
Case 8
PV = $ 2,000
EV = $ 2,000
AC = $ 2,200
SV = EV PV
SV % = SV / PV
CV = EV AC
CV % = CV / EV
SPI = EV / PV
CPI = EV / AC
Case 8
Were on schedule.
But in order to be
on schedule, its
costing us $1.00 to
do each 91-cents
worth of work.
Theres a $200
overrun as a result.
SV = $ 0.00
CV = - $ 200; CPI = 0.91
PV = $ 2,000
EV = $ 2,000
AC = $ 2,200
Case 9
OK, see how you do
with this one!!!
SV = EV PV
SV % = SV / PV
CV = EV AC
CV % = CV / EV
SPI = EV / PV
CPI = EV / AC
PV = $ 1,700
EV = $ 1,500
AC = $ 1,900
Case 9
Negative scenario:
12% behind
schedule and overrunning cost by
27%
PV = $ 1,700
EV = $ 1,500
AC = $ 1,900
SV = - $ 200; SV % = - 12 %
CV = - $ 400; CV% = - 27 %
Case 10
SV = EV PV
SV % = SV / PV
CV = EV AC
CV % = CV / EV
SPI = EV / PV
CPI = EV / AC
PV = $ 1,000
EV = $ 0.00
AC = $ 800
Case
10
A tough one!!!
PV = $ 1,000
EV = $ 0.00
AC = $ 800
Of $1,000 worth of
scheduled work, no
measurable milestone has
yet been accomplished.
However, $800 has been
spent just getting
started.
SV = - $ 1,000; SV % = - 100 %
CV = - $ 800;
CV % = N/A
Case 11
See how you do on
this final one!!!
SV = BCWP BCWS
SV % = SV / BCWS
CV = BCWP ACWP
CV % = CV / BCWP
SPI = BCWP / BCWS
CPI = BCWP / ACWP
PV = $ 0.00
EV = $ 700
AC = $ 900
Case 11
Work was begun before
it was scheduled to
start. But while $700
worth of work was
completed ahead of
schedule, it cost $900
to do it. (A 29%
overrun.)
SV = + $ 700; SV % = N/A
CV = - $ 200; CV % = - 29 %
PV = $ 0.00
EV = $ 700
AC = $ 900
Project Performance
Reviews
Chapter 8
CHAPTER 8
PROJECT QUALITY
MANAGEMENT
Chapter 8 - Contents
Chapter 8
QUALITY MANAGEMENT
Figure 8-1
Reference:
Reference: Figure
Figure 8.1.
8.1.
th
PMBOK Guide, 4 th Ed
Quality Management
Addresses both the management of the
project and of the product of the project
Improves project management as well as the
quality of the product
Delivery of both high quality and high grade
of product
Quality is planned in, not inspected in
Investments in product quality improvement
must often be borne by the performing
organization
Philosophies
Deming
Leadership, long-term company
position; continuous improvement;
participatory; zero defects
Japanese Similar to Deming
Juran
Decrease cost of quality
Crosby
Decrease cost of quality;
authoritarian; zero defects
Theory X
Workers lazy, motivated by money
Theory Y
5 2
Quality
Process 8.1
Plan Quality
Planning
PROCESS OF IDENTIFYING QUALITY REQUIREMENTS AND/OR STANDARDS FOR THE PROJECT AND
PRODUCT, AND DOCUMENTING HOW THE PROJECT WILL DEMONSTRATE COMPLIANCE.
Tools and
Technique
s
8.1
Inputs
Scope
Baseline
Stakeholder
Register
Cost
Performanc
e Baseline
Schedule
Baseline
Risk
Register
Enterprise
Environmen
Outputs
Cost Benefit
Quality
Analysis
Manageme
Cost of
nt Plan
Quality
Quality
Control
Metrics
Charts
Benchmarki
Quality
Checklists
ng
Design of
Process
Experiment
Improveme
s
nt Plan
Statistical
Project
SamplingReference:
8.2.
Reference: Figure
Figure
8.2.
Flowchartin
Document
th
PMBOK Guide, 4 th Ed
5 3
Quality
Executing
Process 8.2
PROCESS OF AUDITING THE QUALITY REQUIREMENTS AND THE RESULTS FROM QUALITY CONTROL
MEASUREMENTS TO ENSURE APPROPRIATE QUALITY STANDARDS AND OPERATIONAL DEFINITIONS ARE
USED.
Tools and
Technique
s
8.2
Inputs
Project
Manageme
nt Plan
Quality
Metrics
Work
Performanc
e
Information
Quality
Control
Measureme
nts
Plan Quality
and Perform
Quality
Control
Tools and
Techniques
Quality
Audits
Process
Analysis
Outputs
Organizatio
nal Process
Assets
Updates
Change
Requests
Project
Manageme
nt Plan
Updates
Project
____________
Reference:
8.8.
Reference: Figure
Figure
8.8.
Document
th
PMBOK Guide, 4 th Ed
Quality Assurance
What
Managerial audit function
How
Prepare and implement an organization QA
program
Tailor a practical program to meet
requirements
Why
Quality improvement
Increase effectiveness and efficiency
5 4
Quality
Monitoring
& Control
Process 8.3
PROCESS OF MONITORING AND RECORDING RESULTS OF EXECUTING THE QUALITY ACTIVITIES TO ASSESS
PERFORMANCE AND RECOMMEND NECESSARY CHANGES.
Tools and
Technique
s
8.3
Inputs
Project
Manageme
nt Plan
Quality
Metrics
Quality
Checklists
Work
Performanc
e
Measureme
nts
Approved
Outputs
Cause and
Quality
Effect
Control
Diagrams
Measureme
Control
nts
Validated
Charts
Flowchartin
Changes
Validated
g
Histogram
Deliverable
Pareto
s
Organizatio
Chart
Run Chart
nal Process
Scatter
Assets
DiagramReference:
Updates
8.10.
Reference: Figure
Figure
8.10.
Statistical
Change
th
PMBOK Guide, 4 th Ed
Control Charts
Graphic displays of the results, over time, of a
process; used to assess whether the process is
in control
Rule of Seven Run of seven points toward
upper or lower control limit may indicate that
process is out of control
Assignable causes Variations may be caused
by differences in machines, workers overtime,
etc. Identify the root cause.
Control Charts
Figure
Figure 8-7.
8-7. Example
Example of
of aa Control
Control Chart
Chart of
of Project
Project Schedule
Schedule Performance
Performance
Yes
Bills From
Shipper
OK
Prepare Pay
Authorization
Send to
Paying Office
Verify
No
Prepare Letter
of Dispute
Send to
Shipper
Figure
Figure 8-8.
8-8. Sample
Sample Process
Process Flowchart
Flowchart
Pareto Diagram
Pareto Diagram
Figure 8-9.
8-9. Pareto
Pareto Diagram
Diagram (Chart)
(Chart)
Figure
Trend Analysis
Using mathematical techniques to forecast future
outcomes based on historical results
Technical performance How many errors or
defects have been identified; how many
remain uncorrected
Cost and schedule performance How many
activities per period were completed with
significant variances
Statistics
-3
-2
-1
+1
+2
+3
Weight (x)
4.9
5.0
5.1
5.2
5.3
5.5
4.7
4.8
5.1
Total 45.6
(x-)2
0.02778
0.00444
0.00111
0.01778
0.05444
0.18778
0.13444
0.07111
0.00111
0.50000
Chapter 9
CHAPTER 9
PROJECT
HUMAN RESOURCE
MANAGEMENT
Chapter 9 - Contents
Chapter 9
HR MANAGEMENT
6 2
Human
Resource
Planning
Process 9.1
Tools and
Technique
s
9.1
Inputs
Activity
Resource
Requiremen
ts
Organizatio
nal Charts
and Position
Descriptions
Enterprise
Environmen
tal Factors
Networking
Organizatio
nal Process
Assets
____________
Outputs
Human
Resource
Plan
____________
Organizatio
nal Theory
____________
Reference:
Reference: Figure
Figure 9.2.
9.2.
th
PMBOK Guide, 4 th Ed
Resource Usage
Resource Histogram
300
275
250
225
200
175
150
125
100
75
50
25
0
Senior Designers
9 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1
Jan
Feb
Mar
Resource Usage Staff Hours
Apr
8 15 22
May
Organizational Structures
Type PM Authority
Functional None
Project Expediter Low
Project Coordinator
Low
Projectized High
Functional Organization
Specialists grouped by function
Difficult to cross functional lines
Barriers exist on horizontal information flow
Functional emphasis loyalties may impede
completion
Matrix Organization
Multiple-command system
Individuals from functional areas assigned on
temporary basis to PM
Individuals return to functional organization
Careful plans and procedures needed to minimize
effects of dual reporting
Matrix Organization
Advantages
Disadvantages
Visible objectives
Efficient utilization
of resources
Complex structure
to control
Better co-ordination
Differing priorities
of PM and FM
Better information
flow
Retention of home
after project
Duplication of effort
Conflict
Projectized Organization
Emerges from functional when latter impedes
progress
Line of authority is the PM
Uncertainty where to go on completion of project
Tendency to retain assigned personnel too long
FMs feel threatened as people are removed from their
areas
Reward Systems
Extrinsic (External)
Salary
Work conditions
Status
Intrinsic (Internal)
Achievement
Responsibility
Advancement
Management Styles
Autocratic
Strength
Mature, well defined projects
Quick decisions required
Weakness
Limits staff buy-in leading to low morale
Possible arbitrary decisions
Management Styles
Laissez-Fair
Strength
Innovative projects
High morale of self-motivated staff
Weakness
Confusion about objectives of the project
Inability to make decisions
McGregors Theory
Theory X
Traditional view of management; top-down
Managers: Control the people
Workers: Viewed as inherently self-centered,
lazy
Theory Y
Workers: Viewed as willing and eager to
accept responsibility
Managers: Create environment that aids
workers in achieving goals
Staff Acquisition
Timetable
Release Criteria
Training Needs
Recognition and Reward
Compliance
Salary
6 3
Human Executing
Resource
Process 9.2
PROCESS OF CONFIRMING HUMAN RESOURCE AVAILABILITY AND OBTAINING THE TEAM NECESSARY TO
COMPLETE PROJECT ASSIGNMENTS.
Tools and
Technique
s
9.2
Inputs
Project
Manageme
nt Plan
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
____________
PreAssignment
Negotiation
Acquisition
Virtual
Teams
____________
Outputs
Project Staff
Assignment
s
Resource
Calendars
Project
Manageme
nt Plan
Updates
____________
Reference:
Reference: Figure
Figure 9.8.
9.8.
th
PMBOK Guide, 4 th Ed
6 3
Human Executing
Resource
Process 9.3
Tools and
Technique
s
9.3
Inputs
Project Staff
Assignment
s
Project
Manageme
nt Plan
Resource
Calendars
____________
Interperson
al Skills
Training
TeamBuilding
Activities
Outputs
Team
Performanc
e
Assessment
s
Ground
Rules
Enterprise
Environmen
tal Factors
Updates
Co-Location
____________
Recognition
Reference:
Reference: Figure
Figure 9.9.
9.9.
and
th
PMBOK Guide, 4 th Ed
6 4
Human Monitoring
Resource & Control
Process 9.4
PROCESS OF TRACKING TEAM MEMBER PERFORMANCE, PROVIDING FEEDBACK, RESOLVING ISSUES, AND
MANAGING CHANGES TO OPTIMIZE PROJECT PERFORMANCE.
Tools and
Technique
s
9.4
Inputs
Project Staff
Assignment
s
Project
Manageme
nt Plan
Team
Performanc
e
Assessment
s
Performanc
Outputs
Observation
s and
Conversatio
____________
ns
Enterprise
Environmen
tal Factors
Updates
Project
Performanc
e Appraisals
Organizatio
nal Process
Assets
Updates
Conflict
Managemen
t
Change
Requests
Issue Log
Project
Reference:
9.11.
Reference: Figure
Figure
9.11.
Manageme
Interperson
th
PMBOK Guide, 4 th Ed
Chapter 10
CHAPTER 10
PROJECT
COMMUNICATIONS
MANAGEMENT
Chapter 10 - Contents
Chapter 10
COMMUNICATIONS MANAGEMENT
7 1
Human
Resource
Initiating
Process 10.1
Identify Stakeholders
Inputs
Tools and
Technique
s
Outputs
10.1
Project
Charter
Stakeholder
Analysis
Stakeholder
Register
Procuremen
t
Documents
Expert
Judgment
Stakeholder
Manageme
nt Strategy
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
____________
____________
____________
Reference:
Reference: Figure
Figure 10.2.
10.2.
th
PMBOK Guide, 4 th Ed
Stakeholder Analysis
7 2
Human
Resource
Process 10.2
Plan Communications
Planning
Inputs
Tools and
Technique
s
Outputs
10.2
Stakeholder
Register
Stakeholder
Manageme
nt Strategy
Enterprise
Environmen
tal Factors
Organizatio
nal Process
Assets
____________
Communica
tion
Requiremen
ts Analysis
Communica
tion
Manageme
nt Plan
Communica
tion
Technology
Project
Document
Updates
Communica
tion Model
____________
Communica
tion
Reference: Figure
Figure 10.6.
10.6.
MethodsReference:
th
PMBOK Guide, 4 th Ed
7 3
Human Executing
Resource
Process 10.3
Distribute Information
Inputs
Tools and
Technique
s
Outputs
10.3
Project
Manageme
nt Plan
Communica
tion
Methods
Performanc
e Reports
Information
Distribution
Tools
Organizatio
nal Process
Assets
Organizatio
nal Process
Assets
Updates
____________
___________
____________
Reference:
Reference: Figure
Figure 10.9.
10.9.
th
PMBOK Guide, 4 th Ed
7 4
Human Monitoring
Resource & Control
Process 10.4
PROCESS OF COMMUNICATING AND WORKING WITH STAKEHOLDERS TO MEET THEIR NEEDS AND
ADDRESSING ISSUES AS THEY OCCUR.
Inputs
Tools and
Technique
s
Outputs
10.4
Stakeholder
Register
Stakeholder
Manageme
nt Strategy
Project
Manageme
nt Plan
Issue Log
Change Log
Organizatio
Communica
tion
Methods
Interperson
al Skills
Managemen
t Skills
___________
Organizatio
nal Process
Assets
Updates
Change
Requests
Project
Manageme
nt Plan
Updates
Project
Reference:
10.11.
Reference: Figure
Figure
10.11.
Document
PMBOK Guide, 4thth Ed
7 4
Human Monitoring
Resource & Control
Process 10.5
Report Performance
Inputs
Tools and
Technique
s
Outputs
10.5
Project
Manageme
nt Plan
Work
Performanc
e
Information
Work
Performanc
e
Measureme
nts
Variance
Analysis
Performanc
e Reports
Forecasting
Methods
Organizatio
nal Process
Assets
Updates
Communica
tion
Methods
Reporting
Systems
Change
Requests
____________
___________
Reference:
Reference: Figure
Figure 10.13.
10.13.
PMBOK Guide, 4thth Ed
Performance Report
Chapter 11
CHAPTER 11
PROJECT
RISK
MANAGEMENT
Chapter 11 - Contents
Chapter 11
RISK MANAGEMENT
8 2
Risk
Process 11.1
Planning
Inputs
Tools and
Technique
s
Outputs
11.1
Project
Scope
Statement
Cost
Manageme
nt Plan
Schedule
Manageme
nt Plan
Communica
tions
Manageme
nt Plan
Enterprise
Planning
Meetings
and
Analysis
Risk
Manageme
nt Plan
____________
___________
Reference:
Reference: Figure
Figure 11.2.
11.2.
th
PMBOK Guide, 4 th Ed
8 2
Risk
Process 11.2
Identify Risks
Planning
PROCESS OF DETERMINING WHICH RISKS MAY AFFECT THE PROJECT AND DOCUMENTING THEIR
CHARACTERISTICS.
Inputs
Tools and
Technique
s
Outputs
11.2
Risk
Management
Plan
Activity Cost
Estimates
Activity
Duration
Estimates
Scope
Baseline
Stakeholder
Register
Cost
Management
Plan
Documentat
Risk
ion Reviews
Register
Information
____________
Gathering
Techniques
Checklist
Analysis
Assumption
s Analysis
Diagrammin
g
Techniques
Reference:
Reference: Figure
Figure 11.6.
11.6.
th
SWOT PMBOK Guide, 4 th Ed
Introduction to Risk
Risk Events or consequences that have the
probability of occurring during a project and that
are measured by their impacts on the project
Components
Risk event
Risk event probability
Risk outcome or consequence
(Amount at stake)
Risk event status
(Probability x amount at stake)
Risk Identification
Types
Categories
External, unpredictable
External, predictable
Internal, non-technical
Technical
Legal
Regulatory, etc.
Market risks
Management
Design
Contractual
8 2
Risk
Planning
Process 11.3
PROCESS OF PRIORITIZING RISKS FOR FURTHER ANALYSIS OR ACTION BY ASSESSING AND COMBINING
THEIR PROBABILITY OF OCCURRENCE AND IMPACT.
Inputs
Tools and
Technique
s
Outputs
11.3
Risk
Register
Risk
Manageme
nt Plan
Project
Scope
Statement
Organizatio
nal Process
Assets
____________
Risk
Risk
Probability
Register
and Impact
Updates
Assessment
____________
Probability
and Impact
Matrix
Risk Data
Quality
Assessment
Risk
Categorizati
Reference:
Reference: Figure
Figure 11.8.
11.8.
on
th
PMBOK Guide, 4 th Ed
8 2
Risk
Planning
Process 11.4
Inputs
Tools and
Technique
s
Outputs
11.4
Risk
Register
Risk
Manageme
nt Plan
Cost
Manageme
nt Plan
Schedule
Manageme
nt Plan
Organizatio
Data
Risk
Gathering
Register
and
Updates
Representat
____________
ion
Techniques
Quantitative
Risk
Analysis
and
Modeling
Techniques
Reference: Figure
Figure 11.11.
11.11.
Expert Reference:
PMBOK Guide, 4thth Ed
SWOT
Strengths
Build On
Opportunities
Exploit
Weaknesses
Internal
Eliminate or Reduce
Threats
External
Mitigate
Definitions
Probability
Likelihood of occurrence. (Number of occurrences of an
event divided by the total number of all possible
occurrences)
Statistics
Mean Average of the values of events
Mode Value which occurs most often
Median Value in middle of the range of ordered values
Variance
Average of the squared deviations from the mean
Interviewing
Interviewing project stakeholders and
subject-matter experts to quantify the
probability and consequences of risks on
project objectives
The information needed depends upon the
type of probability distributions that will be
used
Probability Distribution
Probability distribution (Method of
moments) Calculates project range
estimates
Expected monetary value Probability
times cost
Three values low (a) , most likely (m),
and high (b) with probabilities for each;
used to calculate expected value
Three Point
Three values with probabilities; used to
calculate expected values
Optimistic
Most likely
Pessimistic
e.g. Optimistic 0.2 x $ 100 K = $ 20 K
Most Likely 0.6 x $ 130 K = $ 78 K
Pessimistic 0.2 x $ 180 K = $ 36 K
Expected Value = $ 134 K
Decision Tree
Example
0.5
0.5
0.6
Project A
Project B
0.4
0.7
0.3
What is the probability that Project B will
be selected and will be successful?
Success
Failure
Success
Failure
Answer: 0.35
Decision Tree
High Demand
Probability =0.3
$ 550,000
Production Successful
Probability = 0.7
Decide to pursue
Low Demand
Probability = 0.7
- $100,000
Production Unsuccessful
Probability = 0.3
Terminate = - $ 200,000
0.3 x $ 200,000 =
$ 60,000
$ 6,500
Simulations
Simulation Uses a model or copy of a system
to analyze the behavior or performance of the
system
Monte Carlo
Perform project many times to provide a
statistical distribution of calculated results
Uses results to quantify the risk of various
schedule alternatives, different project
strategies, different paths through the
network, and individual activities
Can be used to assess the range of possible
cost options
8 2
Risk
Process 11.5
Planning
Inputs
Tools and
Technique
s
Outputs
11.5
Risk
Register
Risk
Manageme
nt Plan
____________
Strategies
Risk
for Negative
Register
Risks or
Updates
Threats
Risk
Strategies
Related
for Positive
Contract
Risks or
Decisions
Opportuniti
Project
es
Manageme
Contingent
nt Plan
Response
Updates
Strategies
Reference: Figure
11.17.
11.17.
Project
Expert Reference: Figure
PMBOK Guide, 4thth Ed
Hazard Prevention
Likelihood Reduction
Risk Avoidance
Risk Transfer
Contingency Planning
Risk Exposure
Confidence of the risk assessment
Compound Risks
The number of Risks
Cost of Action
Risk Reduction Leverage Cost Benefit
100
Cumulative Probability
90
80
70
60
50
40
30
20
10
0
110
120
130
140
150
160
170
180
190
200
Mitigation
(Corrective action)
Acceptance
(Accept consequences)
Avoidance
(Prevention)
Transference
(Shift Responsibility)
Seller Risk
LOW
HIGH
HIGH
LOW
CPPC
CPFF
CPIF
100 0
Cost Plus
Percentage of
Costs (CPPC)
FPI
Cost Plus
Incentive Fee
(CPIF)
Buyer Risk
FFP
0 100
Fixed Price
Incentive (FPI)
Spectrum of risk
Insurable Risk
Direct property damage Insurance of principal
assets, e.g., equipment, materials, property, auto
Indirect consequential loss Indirect loss suffered
by third party, resulting from actions by the
contractor
Legal liability Design errors, public bodily injury,
project-performance failure
Personnel Bodily injury
Wrap-up insurance All the above integrated into
one agreement usually provided by the owner
8 4
Risk
Monitoring
& Control
Process 11.6
Inputs
Tools and
Technique
s
Outputs
11.6
Risk
Register
Risk
Manageme
nt Plan
Work
Performanc
e
Information
Performanc
e Reports
____________
Risk
Risk
Reassessme
Register
nt
Updates
Risk Audits
Organizatio
Variance
nal Process
Assets
and Trend
Analysis
Updates
Technical
Change
Performanc
Requests
e
Project
Measureme
Manageme
nt
Reference:
11.19.
Reference: Figure
Figure
11.19.
nt Plan
Reserve PMBOK Guide, 4thth Ed
Chapter 12
CHAPTER 12
PROJECT
PROCUREMENT
MANAGEMENT
Chapter 12 - Contents
Chapter 12
PROCUREMENT MANAGEMENT
Buyer-seller Relationship
Buyer The customer
Seller Contractor; vendor; supplier external
to the performing organization
The terms and conditions of the contract
become key inputs to many of the sellers
processes
9 2
Procurement
Planning
Process 12.1
Plan Procurements
Inputs
Tools and
Technique
s
Outputs
12.1
Scope
Baseline
Requirements
Documentatio
n
Teaming
Agreements
Risk Register
Risk Related
Contract
Decisions
Activity
Resource
Requirements
Project
Schedule
Activity Cost
Make-or-Buy
Analysis
Expert
Judgment
Contract
Types
___________
Procuremen
t
Manageme
nt Plan
Procuremen
t
Statements
of Work
Make-orBuy
Decisions
Procuremen
Reference:
Figure
12.2.
Reference: Figure
t th12.2.
PMBOK Guide, 4 th Ed
9 3
Procurement
Executing
Process 12.2
Conduct Procurements
Inputs
Tools and
Technique
s
Outputs
12.2
Project
Manageme
nt Plan
Procuremen
t
Documents
Source
Selection
Criteria
Qualified
Seller List
Seller
Proposals
Project
Bidder
Selected
Conference
Sellers
s
Procuremen
Proposal
t Contract
Evaluation
Award
Techniques
Resource
Independen
Calendars
t Estimates
Change
Expert
Requests
Judgment
Project
Advertising
Manageme
nt Plan
Internet Reference:
12.4.
Reference: Figure
Figure
12.4.
Updates
th
Search PMBOK Guide, 4 th Ed
Definitions
Request for Proposal (RFP)
Request for a price and a proposed
method of meeting requirements
Often used when both price and
technical evaluation determine winners
Request for Quote (RFQ)
Materials or services
Price-driven
Definitions
Warranty
Implied Warranty
Act of sale implies:
General fitness for use
Fitness for special uses
Express Warranty
Beyond the mere act of the sale
Seller makes specific representations
9 4
Procurement
Monitoring
& Control
Process 12.3
Administer Procurements
Inputs
Tools and
Technique
s
Outputs
12.3
Procuremen
t
Documents
Project
Manageme
nt Plan
Contract
Performanc
e Reports
Approved
Change
Requests
Contract
Procuremen
Change
t
Control
Documenta
System
tion
Procuremen
Organizatio
t
nal Process
Performanc
Assets
e Reviews
Updates
Inspections
Change
and Audits
Performanc
Requests
e Reporting
Project
PaymentReference: Figure 12.6.
Reference: Figure
12.6.
Manageme
Systems PMBOK Guide, 4thth Ed
9 5
Procurement
Closing
Process 12.4
Inputs
Close Procurements
PROCESS OF COMPLETING EACH PROJECT PROCUREMENT.
Tools and
Technique
s
Outputs
12.4
Procuremen
t
Manageme
nt Plan
Procuremen
t
Documenta
tion
____________
Procuremen
t Audits
Negotiated
Settlements
Records
Managemen
t System
___________
Closed
Procuremen
ts
Organizatio
nal Process
Assets
Updates
____________
Reference:
Reference: Figure
Figure 12.8.
12.8.
th
PMBOK Guide, 4 th Ed
Outline of Lecture
Responsibility
Respect
Fairness
Honesty
Mandatory Conduct
Establish firm requirements
Limit or prohibit practitioner behavior
Non-adherance causes disciplinary action by
PMIs Ethics Review Committee
RESPONSIBILITY
Description
RESPONSIBILITY
Aspirational Standards
As practitioners in the global project management community:
2.2.1 We make decisions and take actions based on the best interests
of society, public safety, and the environment.
2.2.2 We accept only those assignments that are consistent with our
background, experience, skills, and qualifications.
2.2.3 We fulfill the commitments that we undertake we do what we
say we will do.
2.2.4 When we make errors or omissions, we take ownership and
make corrections promptly. When we discover errors or omissions
caused by others, we communicate them to the appropriate body as
soon they are discovered. We accept accountability for any issues
resulting from our errors or omissions and any resulting
consequences.
2.2.5 We protect proprietary or confidential information that has been
entrusted to us.
2.2.6 We uphold this Code and hold each other accountable to it.
RESPONSIBILITY
Mandatory Standards
As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
Regulations and Legal Requirements
2.3.1 We inform ourselves and uphold the policies, rules, regulations
and laws that govern our work, professional, and volunteer activities.
2.3.2 We report unethical or illegal conduct to appropriate
management and, if necessary, to those affected by the conduct.
Ethics Complaints
2.3.3 We bring violations of this Code to the attention of the
appropriate body for resolution.
2.3.4 We only file ethics complaints when they are substantiated by
facts.
2.3.5 We pursue disciplinary action against an individual who
retaliates against a person raising ethics concerns.
RESPECT
Description
Respect is our duty to show a high regard for
ourselves, others, and the resources entrusted to us.
Resources entrusted to us may include people,
money, reputation, the safety of others, and natural
or environmental resources.
An environment of respect engenders trust,
confidence, and performance excellence by
fostering mutual cooperation an environment
where diverse perspectives and views are
encouraged and valued.
RESPECT
Aspirational Standards
As practitioners in the global project management
community:
3.2.1 We inform ourselves about the norms and
customs of others and avoid engaging in behaviors
they might consider disrespectful.
3.2.2 We listen to others points of view, seeking to
understand them.
3.2.3 We approach directly those persons with whom
we have a conflict or disagreement.
3.2.4 We conduct ourselves in a professional
manner, even when it is not reciprocated.
RESPECT
Mandatory Standards
As practitioners in the global project management
community, we require the following of ourselves
and our fellow practitioners:
3.3.1 We negotiate in good faith.
3.3.2 We do not exercise the power of our expertise
or position to influence the decisions or actions of
others in order to benefit personally at their
expense.
3.3.3 We do not act in an abusive manner toward
FAIRNESS
Description
FAIRNESS
Aspirational Standards
As practitioners in the global project management
community:
4.2.1 We demonstrate transparency in our decisionmaking process.
4.2.2 We constantly reexamine our impartiality and
objectivity, taking corrective action as appropriate.
4.2.3 We provide equal access to information to
those who are authorized to have that information.
4.2.4 We make opportunities equally available to
qualified candidates.
FAIRNESS
Mandatory Standards
As practitioners in the global project management community, we
require the following of ourselves and our fellow practitioners:
Conflict of Interest Situations
4.3.1 We proactively and fully disclose any real or potential
conflicts of interest to the appropriate stakeholders.
4.3.2 When we realize that we have a real or potential conflict of
interest, we refrain from engaging in the decision-making
process or otherwise attempting to influence outcomes, unless
or until: we have made full disclosure to the affected
stakeholders; we have an approved mitigation plan; and we
have obtained the consent of the stakeholders to proceed.
FAIRNESS
Mandatory Standards
Favoritism and Discrimination
4.3.3 We do not hire or fire, reward or punish, or award or deny
contracts based on personal considerations, including but not
limited to, favoritism, nepotism, or bribery.
4.3.4 We do not discriminate against others based on, but not
limited to, gender, race, age, religion, disability, nationality, or
sexual orientation.
4.3.5 We apply the rules of the organization (employer, Project
Management Institute, or other group) without favoritism or
prejudice.
HONESTY
Description
HONESTY
Aspirational Standards
As practitioners in the global project management
community:
5.2.1 We earnestly seek to understand the truth.
5.2.2 We are truthful in our communications and in
our conduct.
5.2.3 We provide accurate information in a timely
manner.
5.2.4 We make commitments and promises, implied
or explicit, in good faith.
5.2.5 We strive to create an environment in which
others feel safe to tell the truth.
HONESTY
Mandatory Standards
As practitioners in the global project management community, we
require the following of ourselves and our fellow practitioners:
5.3.1 We do not engage in or condone behavior that is
designed to deceive others, including but not limited to,
making misleading or false statements, stating half-truths,
providing information out of context or withholding information
that, if known, would render our statements as misleading or
incomplete.
5.3.2 We do not engage in dishonest behavior with the intention
of personal gain or at the expense of another.
Code of Ethics
GLOSSARY
Abusive Manner. Conduct that results in physical harm or
creates intense feelings of fear, humiliation, manipulation, or
exploitation in another person.
Conflict of Interest. A situation that arises when a practitioner
of project management is faced with making a decision or
doing some act that will benefit the practitioner or another
person or organization to which the practitioner owes a duty of
loyalty and at the same time will harm another person or
organization to which the practitioner owes a similar duty of
loyalty. The only way practitioners can resolve conflicting
duties is to disclose the conflict to those affected and allow
them to make the decision about how the practitioner should
proceed.
Duty of Loyalty. A persons responsibility, legal or moral, to
promote the best interest of an organization or other person
with whom they are affiliated.
Code of Ethics
GLOSSARY
Project Management Institute [PMI]. The totality of the Project
Management Institute, including its committees, groups, and
chartered components such as chapters, colleges, and specific
interest groups.
PMI Member. A person who has joined the Project Management
Institute as a member.
PMI-Sponsored Activities. Activities that include, but are not
limited to, participation on a PMI Member Advisory Group, PMI
standard development team, or another PMI working group or
committee. This also includes activities engaged in under the
auspices of a chartered PMI component organizationwhether
it is in a leadership role in the component or another type of
component educational activity or event.
Code of Ethics
GLOSSARY
Practitioner. A person engaged in an activity that contributes to
the management of a project, portfolio, or program, as part of
the project management profession.
PMI Volunteer. A person who participates in PMI-sponsored
activities, whether a member of the Project Management
Institute or not.
Review Questions
Appendix A
APPENDIX A
CHANGES
Appendix A
APPENDIX C
CONTRIBUTORS
The End
THE END
THANK YOU
The PM Knowledge
Areas
Integration
Scope
Procurement
Time
Risk
Cost
Quality
Human
Resource
Communication
Executing
Cycle Name
Initiating
Monitoring
and Control
Closing
Monitoring
& Control
5.2
Company
LOGO
Step 2
project
date
Step 1
project
date
Step 3
project
date
bbb
Block Diagram
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TEXT
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Table
TEXT
Title A
Title B
Title C
Title D
Title E
Title F
TEXT
TEXT
TEXT
TEXT
TEXT
TEXT
TEXT
TEXT
TEXT
TEXT
Marketing Diagram
Title
TEXT
TEXT
TEXT
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1950
1960
1970
1980
1990
2000
2010
2020
2030
Inputs
Project
Statement
of Work
Business
Case
Contract
Enterprise
Environmen
tal Factors
Tools &
Technique
s
Expert
Judgment
Outputs
Project
Charter