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PMP Preparation Overview 2005

Project Management Institute (PMBOK 2004 3rd Edition) PMP Preparation Worksheet

Chapter 1 Introduction Key Points

Good practice does not mean that the knowledge described should always be applied uniformly on all projects; the project management team is responsible for determining what is appropriate for any given project (PMI Bold)

A project is a temporary endeavor undertaken to create a unique product, service or result

Progressive elaboration is a characteristic of projects, meaning that it is developed in steps, and continues by increments. For example, items might be described in broad terms at the start of the project but be defined in detailed terms by the conclusion of the project from the preliminary project scope statement to the verified project scope statement supported by a detailed WBS

Projects are different than operations; projects are supposed to complete their objective and then cease to exist; operations continue indefinitely and sustain the business

Projects are often conducted to support the organizations strategic plan, and to support one or more strategic element:

Market demand

Organizational need

A customer request

A technological advance

A legal requirement

Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements

Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring & controlling, and closing

Managing a project includes 1) identifying requirements 2) establishing objectives 3) balancing scope, timing and cost 4) adapting the plan to different concerns of stakeholders

The five areas of expertise in the project management team include

The project management body of knowledge (PMBOK)

Application area knowledge, standards and regulations

Understanding the project environment

General management knowledge and skills

Interpersonal skills

Application area knowledge, standards and regulations are usually defined in terms of 1) functional departments (i.e. legal, marketing) 2) technical elements (i.e. software development) 3) management specializations (i.e. government contracting) 4) industry groups (i.e. energy, financial services)

Standards are guidelines or a preferred approach (i.e. ISO) and regulations are government-imposed requirements such as laws (i.e. EPA, contract law)

The project environment includes cultural and social environment (people demographic, education, organizational accountability), the international and political environment (time zones, different countries) and physical environment (is the team co-located?)

General Management Knowledge and Skills including planning, executing and controlling to support the company. Supporting areas include 1) accounting 2) purchasing 3) sales 4) contracting 5) manufacturing & distribution 6) planning 7) HR 8) health and safety 9) IT

The management of interpersonal relationships includes 1) communication 2) influence 3) leadership 4) motivation 5) negotiation 6) problem solving

Programs vs. Project management a program is a group of related projects that need to be managed in a coordinated fashion, such as the development of a new product that contains multiple assemblies and includes related activities such as marketing plans

A portfolio is a group of projects or programs that are managed together to meet company objectives, such as those to support a line of business or internal process improvement

Projects may be broken into subprojects, such as skilled labor (construction) on a larger project

A Project Management Office is an organization to manage and coordinate projects that are under its domain. A PMO can oversee programs or projects. PMOs are of varying forms depending on the organization, where they can coordinate, manage or even execute projects

Key PMO features may include 1) coordination of resources 2) run PM Methodology 3) document repository 4) monitoring of project managers 5) coordination of overall project standards

PMOs are different from project managers in that the project manager works on their specific project, while the PMO manages resources across multiple projects. The project manager manages scope, schedule, cost and quality while the PMO manages overall risk, opportunity and interdependencies across projects. The project manager reports on one project, while the PMO provides consolidated project reporting

Chapter 2 Project Life Cycle and Organization Key Points

The project life cycle includes the phases necessary to work a project from beginning to end. The transition from one phase to another is generally recognized by some kind of a deliverable or handoff. These phases generally define 1) work to be done that phase 2) when deliverables are generated 3) resources used in each phase 4) control of each phase

Costs generally are low at the start, are highest during middle phases, and drop off as the project is being completed

Uncertainty and risk is highest at the start of the project and likelihood of project completion increases as it moves toward the concluding phases

Stakeholders can more easily make changes at the start of the project early on; later the cost of changes grows very high as the project moves towards completion

The completion and approval of one or more deliverables characterizes a project phase. A deliverable is a work product that can be viewed and assessed

A project phase generally concludes with a review of the deliverable and to determine whether the deliverables are accepted or if more work needs to be done

After each phase is completed authorization is generally needed to begin the next phase of the project (i.e. kill point)

A typical project has the following phases:

Initial inputs include 1) ideas 2) project management team; outputs include 1) charter 2) scope statement

Intermediate outputs include 1) plan 2) baseline 3) progress 4) acceptance

Final outputs include approval, handover and the ultimate project deliverable, the product

The reason that projects are initiated are to resolve business problems or to take advantage of opportunities

The PRODUCT life cycle is above the project life cycle it includes operations & development (which occur after the project has been completed) and include the business plan, which starts before the project begins

Project stakeholders are people involved in the project or impacted by the project. Stakeholders can be defined widely (i.e. the community who is impacted by pollution and congested after the project to build a plant is completed) or narrowly (those working on the project). Negative stakeholders dont want the project to be completed (i.e. environmentalists). Positive stakeholders want the project to succeed

Every project includes the following stakeholders

Project manager manages the project

Customer / user the people who use the end product generated by the project

Performing organization the company that the project team works for

Project team members doing the work

Project management team the managers running the project

Sponsor the group that provides the money and authorizes the project

Influencers not directly related to the project, but can impact the outcome

Project Management Organization (PMO) 0 if it exists, may have some responsibility for completion

Note that stakeholders may have differing objectives finance may want it done for the lowest price, marketing may want the most features, IT may want the newest technology, and environmentalists may want it to fail outright

There are 2 major types of project-based organizations

Organizations that make money by completing projects for other companies, such as consultants, architects, companies that make products for the US Military, etc

Organizations that chose to adopt management by projects and have systems and processes in place to facilitate projects

Non project based organizations often lack tools and systems for project management, making a successful completion less likely

Organizational cultures impact projects entrepreneurial companies may accept high risk projects, and rigid hierarchy companies may challenge project managers who seek authority

There are 3 major types of organizations 1) functional 2) matrix (with weak, balanced or strong types) and 3) projectized

Functional organizations are traditional organizations with work silos like HR, accounting, production, marketing, etc In these organizations the project manager has little (formal) authority, finds it hard to obtain resources, reports to a functional manager, and is part time w/part time admin staff

The projectized organization has most employees engaged in project work, and project managers have high authority and visilibity

The matrix organization has elements of project and functional organization, where the project manager may report to 2 bosses (functional and project), and the weak vs. strong shows the degree of autonomy and resources that the manager has available

A PMO can exist in any organization type. The role may vary from advisor to having project managers report to the PMO

The Project Management System consists of the tools, techniques, methodologies, resources, and procedures used to manage a project

Chapter 3 Project Management Processes for a Project Key Points

In order for a project to be successful, the team must

Select correct processes

Use a defined approach to meet requirements

Comply with requirements to meet stakeholder needs

Balance 1) scope 2) time 3) cost 4) quality 5) resources 6) risk to complete the project

The project manager is always responsible for determining what processes are appropriate for that project. This is known as tailoring the project

Project team processes generally fall into one of the following categories:

Project processes generally initiate, plan, execute, monitor, control and close a project

Product-oriented processes create the product and vary by area

The five process groups are 1) initiating 2) planning 3) executing 4) monitoring & controlling 5) closing

Plan Do Check Act is another way to accomplish this

The Process Groups are not Project Phases!

Initiating group for formal authorization of a project or a project phase. The basic scope, duration, deliverables and resources for the project are determined at this time. The relationship of the project to the organizations strategic initiatives is also identified. The project manager is also assigned during this phase. The project charter is written, and when the charter is approved, the project becomes officially authorized. It is critical to involve stakeholders during the initiation phase

The planning process group is used to plan and manage the project. These processes identify, define and mature the project scope, cost and schedule. Significant changes during the life of the project will trigger the need to revisit planning process items. Key deliverables of the planning process include the project management plan, scope planning, the WBS, activities, sequencing and scheduling, cost estimating & budgeting, and planning for risk, HR, communications and quality

The executing process group contains the steps necessary to perform the work laid out in the project plan to meet the projects objectives. The vast majority of the projects budget will be spent in this phase

The monitoring and controlling process group contains steps and processes needed to watch project execution to identify potential problems and corrective action can be taken to keep the project on track. This group also influences the factors that could thwart change control to ensure only approved changes get made (i.e. stop scope creep)

The closing process group includes the processes needed to formally conclude the project and hand off the completed product to the end customer

All of the steps below (44) are mapped into the five groups listed above

Project Integration Management Processes & activities required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations.

Area ProcessInputsTools and TechniquesOutputs / DeliverablesProcess GroupOther Notes

4.1 Develop Project Charter which formally authorizes a project Contract

SOW (includes business need, scope description, strategic plan)

EEF

OPA (templates, procedures) Project selection methods

Project mgmt methodology

PMIS

Expert judgment Project CharterInitiating Sponsor initiates the charter; charter includes 1) requirements to satisfy needs (what) 2) business needs that the project addresses (why) 3) justification 4) named project manager 5) milestones 6) assumptions 7) constraints (fixed dates) 8) business case 9) summary budget

4.2 Develop Preliminary Project Scope Statement which provides a high level scope description Project charter

SOW

EEF

OPA Project mgmt methodology

PMIS

Expert judgment Preliminary project scope statementInitiatingScope includes 1) objectives 2) product requirements 3) acceptance criteria 4) project deliverables 5) constraints & assumptions 6) project organization 7) initial risks 8) milestones 9) initial WBS 10) high level cost estimate 11) project configuration mgmt requirements 12) approval requirements

4.3 Develop Project Management Plan that documents what is needed to define, prepare, integrate & coordinate all subsidiary plans Preliminary project scope statement

Project management processes

EEF

OPA Project mgmt methodology

PMIS includes config mgmt system to identify changes to product and control changes

Expert judgment Project management planPlanningPlan includes 1) processes selected 2) level of implementation 3) tools to be used 4) interactions 5) how to execute work 6) how to control changes 7) how to do configuration mgmt 8) baselines use 9) communication needs 10) project phases 11) key mgmt issues

4.4 Direct & Manage Project Execution by executing the work defined in the project management plan to meet requirements defined in the scope statement Project management plan

Approved corrective actions

Approved preventive actions

Approved change requests

Approved defect repair

Validated defect report

Administrative closure procedure Project mgmt methodology

PMIS Deliverables

Requested changes

Implemented change requests

Implemented corrective actions

Implemented preventative actions

Implemented defect repair

Work performance information (status, budget, % complete)ExecutingActions include 1) perform activities 2) spend money 3) train staff 4) manage vendors 5) implement standards 6) create, control & validate deliverables 7) manage risk & risk response activities 8) adapt scope changes as needed 9) manage communications 10) collect project data including cost & milestones 11) collect & document lessons learned and process improvement actions

4.5 Monitor & Control Project Work through the processes required to initiate, plan, execute & close a project to meet performance objectives defined in the project management plan Project management plan

Work performance information

Rejected change requests Project mgmt methodology

PMIS

Earned Value technique

Expert judgment Recommended corrective actions

Recommended preventative actions

Forecasts

Recommended defect repair

Requested changesMonitor & ControlActions include 1) compare actual vs. plan 2) determine corrective actions needed 3) analyze risks & ensure corrective actions taken 4) maintain information base 5) status reporting 6) forecasting

4.6 Integrated Change Control by reviewing all change requests, approving changes & controlling changes to the deliverables & organizational process documents Project management plan

Requested changes



Recommended corrective actions


Deliverables Project mgmt methodology

PMIS

Expert judgment Approved change requests

Rejected change requests

Project management plan (updates)

Project scope management (updates)


Approved preventative actions

Approved defect repair

Validated defect repair

DeliverablesMonitor & ControlChange control is needed because projects seldom run according to plan. Changes must be managed; also includes documenting changes and only releasing approved changes. Defect repair must be validated and quality controlled.

Configuration management also occurs identify changes, determine if changes have been implemented, and verify changes after complete.

Every documented change must either be accepted or rejected by some authority.

4.7 Close Project by finalizing all activities across all of the project process groups to formally close the project Project management plan

Contract documentation

EEF

OPA


Deliverables Project mgmt methodology

PMIS

Expert judgment Administrative closure procedure

Contract closure procedure

Final product, service or result

OPA (updates)ClosingUpdates after project completion include 1) formal acceptance documentation (written) 2) project files updated 3) project closure documents prepared (even for projects halted before completion) 4) historical information is used to update the lessons learned database

Project Scope Management Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully; focus on what is and what is not included in the project


5.1 Scope Planning by creating a project scope management plan which includes how the WBS will be created & defined EEF

OPA

Project charter

Preliminary project scope statement

Project management plan Expert judgment

Templates, forms, standards

Project scope management planPlanningProject scope management plan includes 1) process to prepare detailed scope based on preliminary scope 2) process to create WBS from scope 3) process to specify verification of deliverables 4) process to control scope changes

5.2 Scope Definition by developing a detailed project scope statement OPA

Project charter

Preliminary project scope statement

Project scope management plan

Approved change requests Product analysis

Alternatives identification

Expert judgment

Stakeholder analysis Project scope statement

Requested changes

Project scope management plan (updates)PlanningPreparation of a detailed scope statement is critical to the project success. Includes 1) objectives 2) scope description 3) requirements 4) boundaries (excluded items) 5) deliverables 6) acceptance criteria 7) constraints 8) assumptions 9) organization 10) risks 11) milestones 12) funding 13) cost estimate 14) configuration management requirements 15) project specifications 16) approval requirements

5.3 Create Work Breakdown Structure (WBS) by subdividing the deliverables & work into smaller, more manageable components OPA

Project scope statement


Approved change requests WBS templates

Decomposition Project scope statement (updates)

WBS

WBS dictionary

Scope baseline

Project scope management plan (updates)

Requested changesPlanningDecomposition divides work into smaller elements by 1) identify deliverables 2) structure and organize WBS 3) decomposing upper WBS into lower level detailed components 4) assign ID codes to WBS components 5) verifying that degree of decomposition is sufficient.

Each component must be assigned, and defined in terms of how the project will actually be executed and controlled.

5.4 Scope Verification through formal acceptance of the completed project deliverables Project scope statement

WBS dictionary


Deliverables Inspection Accepted deliverables

Requested changes

Recommended corrective actionsMonitor & ControlScope verification is primarily concerned with acceptance of the scope by stakeholders

5.5 Scope Control by controlling changes to the

project scope Project scope statement

WBS

WBS dictionary


Performance reports


Work performance information Change control system

Variance analysis

Replanning

Configuration management system Project scope statement (updates)

WBS (updates)

WBS dictionary (updates)

Scope baseline (updates)

Requested changes

Recommended corrective action

OPA (updates)

Project Management Plan (updates)Monitor & ControlUncontrolled changes called scope creep. Change is inevitable, thus this process is needed

Project Time Management - Processes required to ensure timely completion of the project


6.1 Activity Definition by identifying the specific activities that must be performed to produce the various project deliverables EEF

OPA


WBS

WBS dictionary

Project management plan Decomposition

Templates

Rolling Wave planning

Expert judgment

Planning component (control account, planning package) Activity list

Activity attributes

Milestone list

Requested changesPlanningThe activity list does not include any schedule activities that are not required as part of the project scope.

6.2 Activity Sequencing by identifying and documenting dependencies among schedule activities Project scope statement

Activity list

Activity attributes

Milestone list


Precedence diagramming method (PDM)

Arrow diagramming method (ADM)

Schedule network templates

Dependency determination

Applying leads and lags Project schedule network diagrams

Activity list (updates)

Activity attributes (updates)

Requested changesPlanningPDM (a.k.a Activity on Node) uses 4 types of dependencies (F-S, F-F, S-S, S-F).

ADM (a.k.a. Activity on Arrow) uses only F-S dependencies. Allows dummy activities to show logical relationships. (Usually shown as a dashed line.)

3 types of dependencies - mandatory, discretionary (best practices) and external.

6.3 Activity Resource Estimating through estimating the type & quantity of resources needed to complete each activity EEF

OPA

Activity list

Activity attributes

Resource availability

Project management plan Expert judgment

Alternatives analysis

Published estimating data

Project management software

Bottom-up estimating Activity resource requirements


Resource breakdown structure

Resource calendars (updates)

Requested changesPlanning

6.4 Activity Duration Estimating by estimating the number of work periods which will be needed to complete individual activities EEF

OPA


Activity list

Activity attributes

Activity resource requirements

Resource calendars

Project management plan (risk register, activity cost estimates) Expert judgment

Analogous estimating (use actual duration of similar activity from past)

Parametric estimating (hours per meter)

Three-point estimates (average of most likely, optimistic & pessimistic)

Reserve analysis Activity duration estimates

Activity attributes (updates)Planning

6.5 Schedule Development by analyzing activity sequences, activity durations, and resource requirements to create the project schedule OPA


Activity list

Activity attributes

Project schedule network diagrams

Activity resource requirements

Resource calendars

Activity duration estimates

Project management plan (risk register) Schedule network analysis

Critical path method

Schedule compression

What-if scenario analysis

Resource leveling

Critical chain method


Applying calendars

Adjusting leads and lags

Schedule model Project schedule

Schedule model data

Schedule baseline

Resource requirements (updates)


Project calendar (updates)

Requested changes

Project management plan (updates, including schedule management plan)PlanningCritical Path is the longest path through a network diagram and shows earliest completion of a project.

CPM uses the most likely estimate to calculate the float to determine project duration and scheduling flexibility.

Critical chain modifies schedule to account for limited resources. Define critical path, then apply resources often path changes.

Schedule can be showed as a network diagram, bar chart (gantt), or milestone chart.

6.6 Schedule Control controlling changes to the project schedule including 1) determining current status of project schedule 2) influencing factors that cause changes 3) determining that the schedule has changed 4) managing changes as they occur Schedule management plan

Schedule baseline

Performance reports

Approved change requests Progress reporting

Schedule change control system

Performance measurement


Variance analysis

Schedule comparison bar charts Schedule model data (updates)

Schedule baseline (updates)

Performance measurements

Requested changes


OPA

Activity list (updates)


Project management plan (updates)Monitor & ControlKey measures include Schedule Variance (SV) and Schedule Performance Index (SPI).

Progress reporting includes actual start and finished dates, and remaining durations for unfinished activities..

Schedule revisions are a special category of schedule updates generally incorporated in response to approved change requests. The original schedule baseline and model are saved to prevent loss of data.

Project Cost Management processes in planning and controlling costs so that the project can be completed within budget


7.1 Cost Estimating through

approximating the costs of the resources needed to complete project activities EEF

OPA


WBS

WBS dictionary

Project management plan (schedule & staffing mgmt plan, risk register) Analogous estimating

Determine resource cost rates

Bottom-up estimating

Parametric estimating


Vendor bid analysis

Reserve analysis

Cost of quality Activity cost estimates

Activity cost estimate supporting detail (description, basis of estimate, assumptions, constraints, ROM)

Requested changes

Cost management plan (updates)PlanningTop down / analogous estimating is generally less costly and less accurate than other techniques.

Bottom-up estimating accuracy is driven by size of work items being estimated. Reserve analysis includes known unknowns.

Project in initiation phase as rough order of Magnitude (ROM) of 50/+100%, later could go to 10%/+15%

7.2 Cost Budgeting by aggregating estimated costs of individual activities or work packages to establish a cost baseline Project scope statement

WBS

WBS dictionary

Activity cost estimates

Activity cost estimate supporting detail

Project schedule

Resource calendars

Contract

Cost management plan Cost aggregation

Reserve analysis

Parametric estimating

Funding limit reconciliation Cost baseline

Project funding requirements

Cost management plan (updates)

Requested changesPlanningCost baseline is a time-phased budget to measure and monitor cost performance.

Reserve are budgeted for unplanned, but potentially required, changes to project scope and cost not part of the project cost baseline or earned value.

Project funding requirements are derived from the cost baseline.

7.3 Cost Control by influencing factors that create cost variances & controlling changes to the project budget Cost baseline

Project funding requirements

Performance reports


Project management plan Cost change control system

Performance measurement analysis

Forecasting

Project management reviews


Variance management Cost estimate (updates)

Cost baseline (updates)


Forecasted completion

Requested changes


Organizational process assets (updates)

Project management plan (updates)Monitor & Control PV - Planned Value (also Budget at Completion BAC)

EV - Earned Value

AC - Actual Cost

ETC Estimate to Complete

EAC Estimate at Completion

Formulas to remember:

Schedule Variance = EV-PV

Cost Variance = EV-AC

Schedule Performance Index = EV/PV

Cost Performance Index = EV/AC ( 1.0 underrun)

SPI, CPI used to forecast completion date and project cost projection

Project Quality Management processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system


8.1 Quality Planning by

identifying which quality standards are relevant to the project and determining how to satisfy them EEF

OPA


Project management plan Cost-benefit analysis

Benchmarking

Design of experiments

Cost of quality (COQ)

Additional quality planning tools Quality management plan

Quality metrics

Quality checklists

Process improvement plan (steps to analyze processes to identify waste & non-value added items

Quality baseline

Project management plan (updates)PlanningQuality is the degree to which a set of inherent characteristics fulfill requirementsCustomer Satisfaction: Conformance to requirements, specifications, and fitness for use.

Quality is planned in, not inspected in.

Cost of quality is total cost of all efforts related to quality. Project may not reap benefits since they are later in product lifecycle (i.e. lower returns)

8.2 Perform Quality Assurance by employing activities to ensure the project employs all processes needed to meet requirements Quality management plan

Quality metrics

Process improvement plan



Quality control measurements

Implemented change requests

Implemented corrective actions

Implemented defect repair

Implemented preventative actions Quality planning tools and techniques

Quality audits

Process analysis

Quality control tools and techniques Requested changes


Process analysis

Quality control tools and techniquesExecutingDeming: Plan, Do, Check, ActKaizen (Continuous Improvement): Small improvements in products or processes to reduce costs and ensure consistency of products or services.

ISO 9000: An international standard that describes a recommended quality system. Does not include quality procedures or forms.

Heuristic is a rule of thumb (e.g. Rule of Seven)

8.3 Perform Quality Control by monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance Quality management plan

Quality metrics

Quality checklists

OPA



Deliverables Cause and effect diagram

Control charts

Flowcharting

Histogram

Pareto chart

Run chart

Scatter diagram

Statistical sampling

Inspection

Defect repair review Quality control measurements

Validated defect repair

Quality baseline (updates)



Requested changes


OPA

Validated deliverables

Project management plan (updates)Monitor & Control +/- 1 sigma = 68.26%

+/- 2 sigma = 95.46%

+/- 3 sigma = 99.73%

+/- 6 sigma = 99.99 %

Variable: Characteristic to be measured (e.g. size, shape)

Attribute: The measurement (e.g. inches, pounds)

Statistical Independence: The probability of 1 event occurring does not affect the probability of another event occurring.

Project Human Resource Management process the organize & manage the project team


9.1 Human Resources Planning by identifying, documenting project roles, responsibilities & reporting relationships as well as creating the staffing management plan EEF (organizational, technical, interpersonal, logistical & political)

OPA (templates, checklists)

Project management plan (activity resource requirements) Organization charts and position descriptions (hierarchical charts, matrix charts, text formats) responsibility assignment matrix (RAM)

Networking

Organizational theory Roles and responsibilities (role, authority, responsibility, competencies required)

Project organization charts

Staffing management planPlanningStaff management plan includes 1) staff acquisition 2) timetable 3) release criteria 4) training needs 5) recognition & rewards 6) compliance 7) safety

9.2 Acquire Project Team by getting the human resources needed to complete the project EEF

OPA

Roles and responsibilities

Project organization charts

Staffing management plan Pre-assignment

Negotiation

Acquisition

Virtual teams

Project staff assignments


Staffing management plan (updates)ExecutingConflict Resolution Techniques:

Problem Solving (Address interests)

Compromising (Middle ground)

Forcing (Impose judgement)

Withdrawal (Avoidance)

Smoothing (Peace keeping)

PMI recommends Problem Solving as best choice followed by compromising. Forcing is last.

9.3 Develop Project Team by improving competencies & interactions to enhance project performance Project staff assignments

Staffing management plan

Resource availability General management skills

Training

Team-building activities

Ground rules

Co-location

Recognition and rewards Team performance assessment includes 1) improvements in skills for individuals 2) improvements in competencies for the group as a whole 3) reduce staff turnover rateExecutingMaslows Hierarchy of Needs (in order):

Physiological (Lowest)

Safety

Social

Esteem

Self-Actualization (Highest)

MacGregors Theory X People must be constantly watched. They are incapable, avoid responsibility, and avoid work.

MacGregors Theory Y People are willing to work without supervision and want to achieve.

Ouchi's Theory Z - People work effectively when secure, consulted and held collectively responsible.

9.4 Manage Project Team by tracking member performance, providing feedback, resolving issues and coordinating changes to enhance project performance OPA

Project staff assignments

Roles and responsibilities

Project organizational charts

Staffing management plan

Team performance assessment


Performance reports Observation and conversation

Project performance appraisals

Conflict management

Issue log Requested changes



OPA (updates)

Project management plan (updates)Monitor & ControlLessons learned documentation can include 1) org charts as templates 2) rules or techniques that were particularly successful 3) virtual teams, location items that were successful 4) special skills discovered during the project

Project Communications Management Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information; provide the critical links among people & information that are needed for successful communications


10.1 Communication Planning by determining the information and communications needs of the stakeholders EEF

OPA


Project management plan (constraints, assumptions) Communications requirements analysis

Communications technology Communications management plan (provides 1) stakeholder requirements 2) info to be communicated 3) responsibility 4) methods & frequency 5) escalation 6) updating )PlanningCommunication Methods:

Formal Written Project Plans/Charters

Formal Verbal Presentations, Speeches

Informal Written Memos, e-mail

Informal Verbal Meetings, Conversations

Comm. Channels: N(N-1)/2 where N is equal to the number of people.

10.2 Information Distribution through making needed information available to project stakeholders in a timely manner Communications management plan Communications skills

Information gathering and retrieval systems

Information distribution methods

Lessons learned process OPA

Requested changesExecutingPM should spend 70 - 90% of their time communicating.

Basic elements of communication:

Sender (or encoder)

Message.

Receiver (or decoder)

10.3 Performance Reporting by collecting and disseminating performance information including status reporting, progress measurement & forecasting Work performance information


Forecasted completion

Quality control measurements

Project management plan (performance measurement baseline)


Deliverables Information presentation tools

Performance information gathering and compilation

Status review meetings

Time reporting systems

Cost reporting systems Performance reports

Forecasts

Requested changes


OPAMonitor & ControlPerformance Reporting Tools:

Status Report

Progress Report

Trend Report

Forecasting Report

Variance Report

Earned Value**

10.4 Manage Stakeholders by managing communications to satisfy he requirements of, and resolve issues with, project stakeholders Communications management plan

OPA Communications methods

Issue logs Resolved issues



OPA

Project management plans (updates)Monitor & Control

Project Risk Management processes concerned with planning, identifying, analyzing and responding to project risk; objective is to increase the probability & impact of positive events and to decrease the probability and impact of adverse events


11.1 Risk Management Planning by deciding how to approach, plan & execute the risk management activities for a project EEF

OPA


Project management plan Planning Meetings and analysis Risk Management PlanPlanningRisk management plan includes methodology, roles, responsibilities, budget, timing, scoring / interpretation, thresholds, reporting, tracking, etc.

Risk Categories:

Technical

Project management

Organizational

External

11.2 Risk Identification by determining which risks might affect the project and documenting their characteristics EEF

OPA


Risk management plan

Project management plan Documentation reviews

Information gathering techniques

Checklist analysis

Assumptions analysis

Diagramming techniques Risk register (includes list of risks, potential responses, root causes, and updated risk categories)PlanningRisk Components:

Risk event

Risk event probability

Risk event consequence

Risk event status

11.3 Qualitative Risk Analysis by prioritizing risks for further analysis or action by assessing & combining their probability of occurrence & impact OPA



Risk register Risk probability and impact assessment

Probability and impact matrix

Risk data quality assessment

Risk categorization

Risk urgency assessment Risk register (updates)PlanningUse of low precision data may lead to faulty analysis.

Risks calculated as high or moderate would be prime candidates for further analysis.

11.4 Quantitative Risk Analysis through numerically analyzing the effect on overall project objectives of identified risks OPA



Risk register

Project management plan (schedule management plan, cost management plan) Data gathering and representation techniques

Quantitative risk analysis and modeling techniques (sensitivity analysis, expected monetary value analysis, and decision tree analysis, modeling & simulation) Risk register (updates) including 1) probabilistic analysis of the project for schedule & cost outcomes 2) prioritized list of quantified risks 3) trends in quantitative risk results)PlanningQuantitative analysis follows qualitative analysis.

Objectives include:

Determine probability of reaching project objectives

Determine size of contingency needed

Identify risks requiring most attention based on their priority

Identify realistic cost and scope targets

11.5 Risk Response Planning by developing options & actions to enhance opportunities & reduce threats to project objectives Risk management plan

Risk register Strategies for negative risk or threats (avoid, transfer or mitigate)

Strategies for positive risks or opportunities (exploit, share or enhance)

Strategy for both risks and opportunities (acceptance)

Contingency response strategy Risk register (updates)

Project management plan (updates)

Risk-related contractual agreementsPlanningContingency Plan is a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.

Fallback plan is a management plan that identifies alternative project approaches if the risk has high impact, or if the strategy might not be fully effective.

Contingency Reserve accounts for known risks that have been accepted.

Secondary risks arise from implementing the contingency plan.

11.6 Risk Monitoring and Control by keeping track of identified risks, monitoring residual risks and identifying new risks, executing risk response plans and evaluating their effectiveness throughout the project life cycle Risk management plan

Risk register



Performance reports Risk reassessment

Risk audits

Variance and trend analysis

Technical performance measurement

Reserve analysis

Status meetings Risk register (updates)

Requested changes



OPA

Project management plan (updates)Monitor & ControlPurpose of Risk Monitoring is to determine if:

Risk responses implemented as planned

Risk response actions were as effective as planned

Project assumptions are still valid

Risk trigger has occurred

Risk exposure has changed

Project Procurement Management processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the project team by the contract


12.1 Plan Purchases and Acquisitions by determining what to purchase or acquire and when to do it EEF

OPA


WBS

WBS dictionary

Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline) Make or buy analysis

Expert judgment

Contract types Procurement management plan

Contract statement of work needs to be clear, complete and concise

Make or buy decisions

Requested changesPlanningContract Type:

FP Fixed Price or Lump sum. (Simplest form is PO) risk on seller

CR Cost Reimbursable (cost plus fee, cost plus fixed fee or cost plus incentive fee) place risk on buyer

T&M Time and Materials (aspects of FP and CR contracts) - Moderate cost risk to buyer.)

12.2 Plan Contracting by

documenting products, services & results requirements and identifying potential sellers Procurement management plan

Contract statement of work

Make or buy decisions

Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline) Standard forms

Expert judgment Procurement documents

Evaluation criteria (can include cost, technical capability, financial capacity, business type, references, etc)

Contract statement of work (updates)PlanningProcurement management plan can include 1) type of contract 2) independent estimates 3) standardized procurement documents 4) constraints & assumptions 5) lead times for contracting coordination 6) make-or-buy documentation 7) scheduled dates in contracts 8) performance metrics for managing contracts

12.3 Request Seller Responses by obtaining information, quotations, bids offers or proposals OPA

Procurement management plan

Procurement documents Bidder conferences

Advertising

Develop qualified sellers list Qualified sellers list

Procurement document package

ProposalsExecutingAll bidders conference Q&A should be put in writing and issued to all potential sellers as an addendum to the procurement docs.

12.4 Select Sellers by reviewing offers, choosing among potential sellers, and negotiating a written contract OPA

Procurement management plan

Evaluation criteria

Procurement document package

Proposals

Qualified sellers list

Project management plan (risk register, risk-related contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline) Weighting system

Independent estimates

Screening system

Contract negotiation

Seller rating systems

Expert judgment

Proposal evaluation techniques Selected sellers

Contract

Contract management plan


Procurement management plan (updates)

Requested changesExecutingObjectives of Negotiation:

Obtain a fair and reasonable price

Develop a good relationship with the seller (should be a win-win situation)

Items to negotiate include: Responsibilities, authority, applicable law, technical and business mgmt approaches, contract financing, and price.

12.5 Contract Administration by managing contract & relationship between the buyer & seller; documenting performance to establish corrective actions, and manage contract change Contract


Selected sellers

Performance reports


Work performance information Contract change control system

Buyer-conducted performance review

Inspections and audits

Performance reporting

Payment system

Claims administration

Records management system

Information technology Contract documentation

Requested changes


OPA

Project management plan (updates)Monitor & ControlContracts are often managed by a contract department who have authority and responsibility for contracts. The PM must work closely with this group to ensure that project objectives are met.

12.6 Contract Closure through completing and settling each contract, including resolution of any open items Procurement management plan


Contract documentation

Contract closure procedure Procurement audits

Records management system Closed contracts

OPA (update contract file, deliverable acceptance, and lessons learned documentation)ClosingCentralized Contracting A separate contracting office handles contracts for all projects.

Decentralized Contracting A contract administrator is assigned to each project.

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pmp prep itto

Documents