Pmp Exam Study Guide Pmbokv4

PMP – Project Management Professional

Exam Study GuideContents

• 5 x 9 Process Chart – Knowledge Areas and Process Groups

• PMI Process Input-Tools/Techniques-Output slides (ordered by

Knowledge Area)

• I-TT-O listing per PMBOK v4

• Notes from PMBOK v4 and Heldman text **

120-Feb-10

• Notes from PMBOK v4 and Heldman text **

• Study Tools and Exercises

• Formulas and Diagrams

• AOA/ADM Exercises (2)

• AON/PDM Exercises (3)


• General activity flow

** PMP – Project Management Professional Exam STUDY

GUIDE – Fifth Edition, Kim Heldman, 2009, ISBN: 978-0-

470-45558-6

PMI - Process Mapping Chart (PMBOK v4)

Process Groups

Knowledge Areas Initiate Planning Execute Monitor / Control Close

6Integration

IDevelop Project Charter Develop Project Management Plan Direct & Manage Project Execution

Monitor & Control Project Work

Perform Integrated Change ControlClose Project (Phase)

5Scope

S

Collect Requirements

Define Scope

Create WBS

Verify Scope

Control Scope

6Time

T

Define Activities

Sequence Activities

Estimate Activity Resources

Estimate Activity Durations

Develop Schedule

Control Schedule

3Cost

CEstimate Costs

Determine BudgetControl Costs

220-Feb-10

3Quality

QPlan Quality Perform Quality Assurance Perform Quality Control

4Human Resources

HDevelop Human Resources Plan

Acquire Project Team

Develop Project Team

Manage Project Team

5Communications

CIdentify Stakeholders Plan Communications

Distribute Information

Manage Stakeholder ExpectationsReport Performance

6Risk

R

Plan Risk Management

Identify Risks

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses

Monitor & Control Risks

4Procurement

PPlan Procurements Conduct Procurements Administer Procurements Close Procurements

2 processes in INITIATE ALL KA's in PLAN No HR in M/C 2 processes in CLOSE

Project Integration Management

Things to remember:

• Coordinating all aspects of the project plan

• PM assigned BEFORE planning starts (some time during initiation)

• PM and team must address every process to determine the level to which is

applies to the project – tailoring

• Links between process groups are often iterated – plan feeds execute and changes

320-Feb-10

• Links between process groups are often iterated – plan feeds execute and changes

during execute feed back to plan for updates

• Enterprise Environmental Factors (EEF): organizational structure, gov’t / industry

standards, infrastructure, exist human resources (skills), personnel admin, work

authorization systems, stakeholder risk tolerances, communication channels, PMIS

• Organizational Process Assets (OPA): process related assets – plans, policies,

procedures, guidelines, lessons learned, historical info, templates, work instructions

• SOW – narrative description of products to be delivered – business need, product scope,

strategic plan

• Charter - purpose + measureable objectives + high level requirements and risks +

summary milestones and budget + approval metrics

• REVIEW – ANALYZE – EVALUATE before RECOMMEND

• Opportunity cost – sum of all opportunities missed by selecting a given project

Develop Project Charter

• Project Statement of Work (SOW)• Business Case

• Contract (from external customer) • Enterprise environmental factors• Organizational process assets

Inputs

• Expert judgement

Tools & Techniques

• Project charter

Outputs

420-Feb-10

• Develops a document to formally authorize project. Documents initial requirements that satisfy stakeholder needs. PM

assignment stated.

• Project selection

• Mathematical models – linear, dynamic, non-linear programming, …

• Benefit measurement -

• Cost-Benefit Analysis – costs to produce, market, support (BCR = Benefit Cost Ratio … > 1 is best)

• Scoring Models – weighted criteria evaluated for each project

• Cash flow analysis – payback period, discounted cash flow (PV, FV), net present value (NPV), internal rate of

return (IRR)

• NPV - cash inflows reinvested at cost of capital

• IRR - rate when NPV = 0 / cash inflows reinvested at IRR

• Payback LEAST precise / NPV most conservative / NPV and IRR = same conclusion

• Choose projects with HIGHEST IRR or HIGHEST NPV

Develop Project Management Plan

• Project Charter• Outputs from planning processes• Enterprise environmental factors

• Organizational process assets

Inputs


Tools & Techniques

• Project Management Plan

Outputs

520-Feb-10

• Documents actions necessary to define, prepare, integrate, and coordinate all subsidiary plans

• Series of integrated processes – progressively elaborated by updates and controlled through

change management

• Scope, schedule, cost baselines = performance measurement baseline (for EVM)

• Project Management Plan components:• Baselines – Schedule, Cost, Scope

• Subsidiary management plans – scope, requirements, schedule, cost, process improvement, quality, HR,

communications, risk, procurement

Direct and Manage Project Execution

• Project management plan• Approved change requests• Enterprise environmental factors


Inputs

• Expert judgment

• PMIS

Tools & Techniques Outputs

• Deliverables

• Work performance

information

• Change requests

• Project management plan

updates

• Project documentation

620-Feb-10

•updates

• Process of performing the work for the project – large part of project budget expended during

EXECUTION process group processes

• Includes implementing approved changes (from later M/C process of Perform Integrated Change Control)

• PMIS is an EFF, not OPA

• Change requests - corrective actions (get outcomes to align with plan), preventative actions

(reduce impact of risk events), defect repair

• Work performance info – schedule status and progress, status of deliverables, incurred costs,

lessons learned… includes procurements

Monitor and Control Project Work

• Project management plan• Performance reports• Enterprise environmental factors


Inputs

• Expert judgment


• Change requests


updates

• Project documentation

updates

720-Feb-10

• Process of tracking, reviewing, and regulating progress of work – monitoring ALL processes in

Initiating, Planning, Execution, and Closing groups.

• Monitoring - collecting, measuring, distributing info, assessing measurements – all to improve

processes.

• Control - determining corrective or preventative actions or replanning and follow up

• Work authorization system – tool – gives formal clearance for project work to begin – project

work is assigned and committed via WAS

Perform Integrated Change Control

• Project management plan• Work performance information• Change requests

• Enterprise environmental factors• Organizational process assets

Inputs

• Expert judgment

• Change control meetings


• Change request status updates


update

• Project document updates

820-Feb-10

• Process of reviewing all change requests, approving / denying changes, incorporating changes into

docs, OPAs, and PMP. Done from project initiation to completion.

• Changes can be requested by any stakeholder. PM has authority to approve some types – CCB used

for others.

• PMIS -> Configuration Mgmt -> Change control system

• Configuration control - specification of deliverables and process

• Change control - changes to project and product baselines

• NOTE: Corrective and preventive actions do not normally affect project baselines, only performance

against those baselines. Changes to scope require rebaselining

Close Project

• Project management plan• Accepted deliverables• Organizational process assets

Inputs

• Expert judgment


• Final product, service or result

transfer


920-Feb-10

• Process of gathering records and disseminating info to formalize acceptance of the product. Check completeness

and accuracy, acceptance of stakeholders. Administrative closure

• Transfer products / results to next phase or production / operations

• Archive project / phase information (lessons learned) / financials

• Project endings - Addition (ops), Starvation (cut resources) , Integration (reassign resources), Extinction

(successful end)

• Product verification – determines whether all project work was completed correctly (per contract and

stakeholders) – performed during Closing process (Close Project and Close Procurement)

• Product documentation – verified and accepted during Verify Scope

• Only customer or project sponsor can authorize closure of a project – not PM, functional mgrs, or stakeholders

Project Scope Management

Things to remember:

• Defining all the work and only the work for the project

• Define and control what IS and IS NOT in the project

• Product scope - features and functions of the product = WHAT

• Project scope - work to be completed to deliver product = HOW

1020-Feb-10

• Scope baseline -

1. project scope statement – approved (signed) by stakeholders

• product scope description

• product acceptance criteria

• deliverables

• exclusions

• constraints

• assumptions

2. WBS

3. WBS dictionary


• Project charter• Stakeholder register

Inputs

• Interviews

• Focus groups

• Facilitated workshops

• Group creativity techniques

• Group decision making

techniques

• Questionnaires and surveys

Tools & Techniques

• Requirements documentation

• Requirements management

plan

• Requirements traceability

matrix

Outputs

1120-Feb-10

• Observations

• Prototypes

• Process of defining and documenting stakeholder needs - foundation of the WBS

• Requirements need to be elicited, analyzed, and recorded to permit measuring once project starts.

• COST, SCHEDULE, and QUALITY planning based on these requirements

• May have project (delivery dates, …) and product (technical, performance, …) requirements

• Group Creativity – Brainstorm, Nominal (B+voting), Delphi (unbiased), Idea/Mind Mapping, Affinity

Diagram (ideas sorted into groups)

• Requirements documentation – how reqs meet business needs, (non)functional reqs, quality reqs,

acceptance criteria, assumptions, organizational areas impacted. Signed by stakeholders

• Traceability matrix – maps requirement to business need / objective

Define Scope

• Project charter• Requirements documentation• Organizational process assets

Inputs

• Expert judgment

• Product analysis

• Alternatives identification

• Facilitated workshops

Tools & Techniques

• Project scope statement


Outputs

1220-Feb-10

• Process of developing a detailed description of the project and product

• Product analysis techniques• Product breakdown / functional analysis

• Systems analysis

• Value analysis

Create WBS

• Project scope statement• Requirements documentation• Organizational process assets

Inputs

• Decomposition

Tools & Techniques

• WBS

• WBS dictionary

• Scope baseline

• Project Document updates

Outputs

1320-Feb-10

• Process of subdividing (decomposition) deliverables and work into small, more manageable

components

• Work packages – lowest level of WBS – cost, duration, responsibility assigned

• WBS represents all project and product work – 100% rule - no resources are in WBS

• Rolling wave planning – waiting for future deliverables to be better defined before trying to

decompose

• WBS dictionary – detailed description of tasks, code of accounts, responsible org, milestones,

quality reqs, acceptance criteria, resources, cost estimates, …

Verify Scope

• Project management plan• Requirements documentation• Requirements traceability matrix

• Validated deliverables

Inputs

• Inspection


• Accepted deliverables

• Change requests


1420-Feb-10

• Process of formalizing acceptance of completed deliverables – reviewing with customer and

obtaining formal sign off

• Scope verification for customer acceptance

• Control quality for deliverable correctness

• Control Quality usually done before Verify Scope, but may be in parallel

• Should Verify Scope even if project cancelled – document degree of completion

Control Scope

• Project management plan• Work performance information • Requirements documentation

• Requirements traceability matrix• Organizational process assets

Inputs

• Variance analysis



measurements


updates

• Change requests


updates

1520-Feb-10


• Process of monitoring status of product and project scopes and managing changes to scope

baseline

• Scope creep – uncontrolled changes to project scope

• Work performance information – progress of project, which deliverables are started, finished, …, OUTPUT for Direct and Manage Project Execution, INPUT for almost all M/C processes

• Work performance measurements – activity metrics comparing actual to planned, OUTPUT for

Control Scope, Schedule and Cost processes, INPUT for Report Performance and Perform Quality Control

Project Time Management

Things to remember:

• Processes to manage timely completion of the project

• Terminology: Schedule = schedule data + schedule model

• In planning – can do all 5 activities – define, sequence, estimate resources, estimate duration, and develop schedule – as a single

process by a single person in smaller projects

1620-Feb-10

process by a single person in smaller projects

• Schedule management plan – selects scheduling method (CPM,

critical path, …), scheduling tool, format, control criteria

• Schedules – Gantt (bar), activity list, network diagrams

• Schedule compression techniques:

• Crashing – reduce schedule by adding resources to critical path,

decrease in scope. Always increases cost

• Fast tracking – sequential activities done in parallel. May result in

more errors and rework.

Define Activities

• Scope baseline• Enterprise environmental factors• Organizational process assets

Inputs

• Decomposition

• Rolling wave planning

• Templates

• Expert judgment

Tools & Techniques

• Activity list

• Activity attributes

• Milestone list

Outputs

1720-Feb-10

• Process of identifying the actions needed to produce the deliverables

• Work packages (from WBS) are decomposed into smaller components called activities. Good

practice - WBS uses nouns, Activities use verbs

• Rolling wave – form of progressive elaboration planning – near term work packages decomposed

to activities, farther out still at milestone level

• Activity attributes include – lead/lag, predecessor/successor, description, WBS id, …

Sequence Activities

• Activity list• Activity attributes• Milestones list

• Project scope statement• Organizational process assets

Inputs

• Precedence diagramming

method (PDM)

• Dependency determination

• Applying leads and lags

• Schedule network templates

Tools & Techniques

• Project schedule network

diagrams


Outputs

1820-Feb-10

• Process of identifying and documenting relationships between activities

• Dependencies - Mandatory (contracts, physical limits), Discretionary (team), External (gov’t, legal). Discretionary – create arbitrary float totals – need to be reviewed when fast tracking

• PDM = AON (Activity on node) – 4 types of dependencies – SS, SF, FS, FF• FS – most used, SF – rarely used

• GERT – (Graphical Eval and Review Tech) – allows conditions, branches, loops

• ADM (Arrow diagramming method) = AOA (Activity on arrow) – only FS, “dummies”

• Lead – start of next task is earlier than end of current

• Lag – start is delayed after finish


• Activity list• Activity attributes• Resource calendars


Inputs

• Expert judgment

• Alternatives analysis

• Published estimating data

• Bottom-up estimating

• Project management software

Tools & Techniques

• Activity resource requirements

• Resource breakdown structure


Outputs

1920-Feb-10

• Process of estimating the type and quantity of material, people, equipment, or supplies for each

activity.

• Bottom-up – micro level / more accurate

• Top-down – macro level / rough order of magnitude (ROM) – AKA analogous

• RBS – hierarchical listing of resources by category and type

• Activity resource requirements – type and quantities of resources needed


• Activity list• Activity attributes• Activity resource requirements

• Resource calendars• Project scope statement

• Enterprise environmental factors • Organizational process assets

Inputs

• Expert judgment

• Analogous estimating

• Parametric estimating

• Three-point estimates

• Reserve analysis


• Activity duration estimates


2020-Feb-10

• Process of estimating the number of work periods needed to complete individual activities with

the estimated resources.

• Progressively elaborated – more accurate as project progresses

• Analogous – similar project, gross value approach, uses historical info and expert judgment, less

costly / less time consuming, less accurate

• Parametric – statistical relationship to calculate estimate, multipliers ($ per sqft)

• 3 point – (4M+O+P)/6 … PERT estimate (Program Evaluation and Review Technique)

• Reserve analysis – buffers, time reserve, accounts for schedule risk

Develop Schedule

• Activity list• Activity attributes• Project schedule network diagrams

• Activity resource requirements• Resource calendars

• Activity duration estimates• Project scope statement

• Enterprise environmental factors

Inputs

• Schedule network analysis

• Critical path method

• Critical chain method

• Resource leveling

• What-if scenario analysis

• Applying leads and lags

• Schedule compression


• Project schedule

• Schedule baseline

• Schedule data


2120-Feb-10


• Scheduling tool

• Process of generating a schedule with planned dates for activities and milestones.

• Critical Path – longest duration for project using forward and backward pass to calc early and late

start / finish dates. Does NOT consider resource limits. Critical path – zero float. Paired with

resource leveling. (Free float = task float .. Total float = project float)

• Critical Chain – accounts for resource limits. Critical chain - resource-constrained critical path• Project buffer added to CP

• Feeder buffers added to chains of dependent tasks where they tie into the critical path

• Monte Carlo analysis – simulation - duration distributions assigned for each activity to calculate a

distribution for possible project completion dates

Control Schedule

• Project management plan• Project schedule• Work performance information


Inputs

• Performance reviews



• Resource leveling

• What-if scenario analysis

• Adjusting leads and lags

• Schedule compression



measurements


updates

• Change requests


updates

2220-Feb-10

• Scheduling tool • Project document updates

• Process of monitoring project status against the schedule baseline.

• Performance review – analyze schedule performance – Earned Value Mgmt (EVM) – SV and SPI

• For Critical Path - all schedule variances will impact schedule

• For Critical Chain - compare buffer times (needed VS remaining)

Project Cost Management

Things to remember:

• Processes for estimating, budgeting, and controlling costs of the

project – cost of resources needed to complete the project

• In planning – can do both activities – cost estimating and budgeting – as a single process by a single person in smaller

projects

2320-Feb-10

projects

• Cost management plan – selects estimate accuracy, control

thresholds (permitted variance), performance measurements

• Often financial performance predicting and analyzing done

OUTSIDE the project

Estimate Costs

• Scope baseline• Project schedule• Human resource plan

• Risk register• Enterprise environmental factors


Inputs

• Expert judgment

• Analogous estimating

• Parametric estimating

• Bottom-up estimating

• Three point estimate


• Cost of quality


• Activity cost estimates

• Basis of Estimates


2420-Feb-10

• Vendor bid analysis

• Project mgmt software

• Vendor bid analysis

• Process of estimating the monetary resources needed, including risks, make/buy, and trade-offs –

quantitative assessment. Progressively elaborated – more accurate as project progresses

• Analogous – similar project, uses historical info and expert judgment, less costly / less time

consuming, less accurate

• Parametric – statistical relationship to calculate estimate, multipliers ($ per sqft), more accurate

• 3 point – (4M+O+P)/6 … PERT estimate (Program Evaluation and Review Technique)

• Bottom-up – micro level / more accurate (not used in initiating process group – not enough info)

• Top-down – macro level / rough order of magnitude (ROM)

Determine Budget

• Activity cost estimates• Basis of estimates• Scope baseline

• Project schedule• Resource calendars

• Contracts• Organizational process assets

Inputs

• Cost aggregation


• Expert judgment

• Historical relationships

• Funding limit reconciliation


• Cost performance baseline

• Project funding requirements


2520-Feb-10

• Process of aggregating estimated costs to establish cost baseline

• Cost performance baseline – time-phased budget – S-curve, time vs cost

Control Costs

• Project management plan• Project funding requirements• Work performance information


Inputs

• Earned value measurement

• Forecasting

• To-complete performance

index (TCPI)

• Performance reviews





measurements

• Budget forecasts


updates

• Change requests


2620-Feb-10

•updates


• Process of monitoring status and updating budget – analyze relationship between consumption of

funds and physical work being accomplished

• Earned Value Management (EVM): most often used performance measurement method

• PV = PLANNED value – budget amount

• EV = EARNED value – calculated value of work performed (%) – [ PV * %complete ]

• AC = ACTUAL costs – cost incurred to date

• BAC = Budget at completion – final total PV

• EAC = Estimate at completion – forecast based on actual costs

• ETC = Estimate to complete – forecast based on actuals

Project Quality Management

Things to remember:

• Processes that determine quality policies, objectives, and

responsibilities

• Quality VS Grade (High quality – no defects / High grade – many features)

• Quality – degree to which characteristics fulfill requirements• Grade – category assigned to products having same function

• Precision VS Accuracy

2720-Feb-10

• Precision VS Accuracy (High precision – tight cluster / High accuracy – near true)

• Precision – clustering of repeated measurements

• Accuracy – closeness to the true value

• Standard VS Regulation • Standard – approved by recognized body – should be followed, not legally required• Regulation – mandatory, requires strict adherence

• Approaches to quality: • Crosby – zero defects – prevention – “do it right the first time”• Juran – grades of quality – fit for use – quality by design

• Deming – TQM – 85% COQ is management problem• Six Sigma – measurement based strategy to eliminate defects• Kaizen – continuous improvement – everyone involved

Plan Quality

• Scope baseline• Stakeholder register• Cost performance baseline

• Schedule baseline• Risk register


Inputs

• Cost-Benefit analysis

• Cost of quality

• Benchmarking

• Design of experiments

• Statistical sampling

• Flowcharting

• Proprietary quality


• Quality management plan

• Quality metrics

• Quality checklists

• Process improvement plan


2820-Feb-10

• Process of identifying quality requirements and standards for product / project and how compliance

will be demonstrated.

• Cost of Quality – cost of ALL quality efforts throughout product life cycle (not just project duration)Conformance Nonconformance

Prevention costs (preventing defects) Failure internal – rework, scrap

Appraisal costs (examination) external – liability, returns, customer loss

• Control charts – stability of a process – upper and lower specification and control limits. Typical CLs –

3σ. Out of control – outside SL or 7 consecutive points on same side of mean. Tool in all Quality

processes.

• DOE – statistical method to find factors of greatest effect on outcome, relationship between

variables, optimum values for variables – analyze several variables at one time

management methodologies

• Additional quality planning

tools

Perform Quality Assurance

• Project management plan• Quality metrics• Work performance information

• Quality control measurements

Inputs

• Plan Quality and Perform

Quality Control tools &

techniques

• Quality audits

• Process analysis


• Organizational process asset

updates

• Change requests


updates


2920-Feb-10

• Process of auditing quality requirements and quality control measurements to ensure

appropriate quality standards and metrics are used. Uses data collected during the “control”

process. Focus – correct and most efficient processes

• Quality metric – operational definition – what is being measured and how

• Enables continuous process improvement

• Quality audits – structured, independent review for compliance. Look for ineffective and

inefficient processes, confirm implementation of approved changes

Perform Quality Control

• Project management plan• Quality metrics• Quality checklists

• Work performance measurements• Approved change requests

• Deliverables• Organizational process assets

Inputs

• Cause-and-effect diagrams

• Control charts

• Flowcharting

• Histogram

• Pareto chart

• Run chart

• Scatter diagram



• Quality control measurements

• Validated changes

• Validated deliverables

• Organizational process asset

updates

• Change requests


3020-Feb-10

• Process of monitoring and recording results of executing the quality activities to assess performance

and recommend necessary changes. Focus – accuracy of project results

• Tools:• Cause and effect diagrams – Ishikawa / fishbone

• Control charts – upper / lower spec limits containing upper / lower control limits (3σ) …

OOC – outside SL or 7 consecutive points on same side of mean

• Pareto chart - frequency of occurrence ordered histogram – 80/20 rule

• Run charts – similar to control charts, no limits shown, line graph

• Scatter diagram – two variable (dep, indep) relationship, looking for correlation

• Inspection – physical assessment (keeps defects from reaching customer)

PREVENTION keeps defects from occurring


• Inspection

• Approved change request review

•updates


Project Human Resource Management

Things to remember:

• Processes that organize, manage, and lead the project team

• Staffing management plan – when and how resource needs will be met

(acquisition, calendars, release, training, rewards, compliance, safety)

• Resource histogram – depicts resource loading for a project

• Motivational theories:

3120-Feb-10

• Motivational theories:• Maslow – hierarchy of needs (basic physical, safety, social, self-esteem, self-actualization)

• Herzberg – Hygiene (pay, benefits, work env – prevent dissatisfaction) and

Motivation (challenging work, advancement – produce satisfaction)

• Expectancy theory – (Vroom) expectation of a positive outcome drives motivation

• Achievement theory – (McClelland) people motivated by achievement (need to succeed),

power (influence over others), affiliation (social)

• Leaders (motivators) VS Managers (task-oriented)

• Theory X and Y - (Macgregor) – (people inherently lazy) and (people want to do their best)

• Theory Z – Ouchi – employee loyalty – “jobs for life”

• Contingency theory – Theory Y and Hygiene – people motivated to be competent and

remain so

Develop Human Resource Plan

• Activity resource requirements• Enterprise environmental factors• Organizational process assets

Inputs

• Organizational charts and

position descriptions

• Networking

• Organizational theory


• Human resource plan

3220-Feb-10

• Process of identifying, documenting roles, responsibilities, skills, reporting relationships, and

creating staffing management plan.

• Identify training needs, team-building techniques, recognition, compliance (labor contracts), safety (hazards – also in risk registry)

• Charts:

• Hierarchical - traditional org chart – OBS (relates to business), RBS (resource type, helps with

accounting)

• Matrix – Responsibility Assignment Matrix (RAM – RACI = responsible for doing work,

accountable for approving work (1 person), consult, inform)


• Project management plan• Enterprise environmental factors• Organizational process assets

Inputs

• Pre-assignment

• Negotiation

• Acquisition

• Virtual Teams


• Project staff assignments

• Resource calendars


updates

3320-Feb-10

• Process of confirming availability and obtaining the team

• EEFs – availability, experience levels, interests, costs, abilities of resources

• Pre-assignment - may be defined in charter

• Acquisition - getting external sources (new employees, contractors)

• Virtual teams - rely heavily on good communications plans


• Project staff assignments• Project management plan• Resource calendars

Inputs

• Interpersonal skills

• Training

• Team-building activities

• Ground rules

• Co-location

• Recognition and rewards


• Team performance

assessments

• Enterprise environmental

factors updates

3420-Feb-10

• Process of improving skills, team interaction, and team environment.

• Primary responsibility of PM – improve skills, feelings of trust, cohesiveness of team

• Tools: soft skills (interpersonal), training, team-building, co-location, rewards

• 5 Team stages (Tuckman) – forming (meeting), storming (starting work), norming (trusting),

performing (interdependent, working smoothly), adjouning (disband)

• Types of power – reward (incentive), punishment (coersive), expert (earned, knowledgable),

legitimate (position), referent (inferred)

• Key interpersonal skills – leadership, influencing, effective decision making

Manage Project Team

• Project staff assignments• Project management plan• Team performance assessment

• Performance reports• Organizational process assets

Inputs

• Observation and conversation

• Project performance

appraisals

• Conflict management

• Issue log



• Enterprise environmental

factors


updates

• Change requests


updates

3520-Feb-10

• Process of tracking team member performance, providing feedback, resolving issues, managing

changes . Key PM skills - communication, conflict management, negotiation, and leadership

• Performance report – status of project against plan

• Performance appraisal – feedback to team members – roles, training, job performance – 360° review

• Conflict resolution:• forcing - one way - my way, permanent, win-lose – WORST METHOD TO USE

• smoothing / accommodating - find some agreement, temporary, lose-lose

• withdrawing / avoidance - temporary, lose-lose, POSTPONES ANY DECISION

• compromise - some satisfaction, may be permanent, no win or lose

• confronting / problem solving - best, permanent, win-win

• collaborating – concensus, may be permanent

Project Communication Management

Things to remember:

• Processes that ensure timely and appropriate generation, collection,

distribution, storage, retrieval, and disposition of information.

• PMs spend majority of time (90%) communicating

• Communication management plan – provides what, how, when, why for

project information dissemination

3620-Feb-10

project information dissemination

• Communication model:• Sender – responsible for clarity and completeness of message and for

confirming the message is understood correctly

• Receiver – responsible for making sure information is received in its entirety,

understood correctly, and acknowledged

• Acknowledgement – message was received, not necessarily agreement

• Response – receiver has decoded, understood, and is replying to message

• Encode (translate thoughts into language), decode (translate language to thoughts),

medium (method used to convey message), noise (interference with transmission or

understanding), message (encoded context)

Identify Stakeholders

• Project Charter• Procurement documents• Enterprise environmental factors


Inputs

• Stakeholder analysis


Tools & Techniques

• Stakeholder register

• Stakeholder mgmt strategy

Outputs

3720-Feb-10

• Process of identifying people / organizations impacted by project – document interests,

involvement, and influence and use to classify.

• Stakeholder analysis – qualitative (surveys, questionnaires) and quantitative assessments to

determine whose interests should be taken into account

• Power / Interest grids – power (level of authority) VS interests (level of concern) … low to high –

(H,H) manage closely, (L,L) monitor, (H, L) satisfy, (L,H) inform

• Power / Influence grids – power (authority) VS influence (active level of involvement)

• Influence / Impact grids – influence (active level of involvement) VS impact (ability to change project)

• Salience model – 3 dimensions – power, urgency, legitimacy

Plan Communications

• Stakeholder register• Stakeholder management strategy• Enterprise environmental factors


Inputs

• Communication requirements

analysis

• Communications technology

• Communications models

• Communications methods


• Communication management

plan

• Product document updates

3820-Feb-10

• Process of determining stakeholder info needs and defining communication approach

• Who needs what, when it’s needed, how given, and by whom

• Effective communications - info provided in right format, at right time, with right impact

• Efficient communications – providing only the info needed

• Tightly linked with EEFs

• Communication channels = n(n-1)/2

• Communication methods – push (specifically sent), pull (allowed access), interactive (multidirectional)


• Project management plan• Performance reports• Organizational process assets

Inputs


• Information distribution tools



updates

3920-Feb-10

• Process of making relevant info available to stakeholders in a timely manner

• PM time – 90% spent communicating (written + verbal)

• Status review meetings – not same as team meetings• PM facilitates, not technical, “push” type

• Review activities completed, starting, open

• Review issues – new, open, closed

• PM is responsible for producing lessons learned (professional obligation)

• Groups of 5 to 11 – manageable, accurate decisions

Manage Stakeholder Expectations

• Stakeholder register• Stakeholder management strategy• Project management plan

• Issue log• Change log


Inputs



• Management skills



updates

• Change requests


updates


4020-Feb-10

• Process of communicating with stakeholders to influence expectations, address concerns, resolve

issues

• Increasing probability of project success

• PM is responsible for stakeholder expectations management

• Interpersonal skills – building trust, resolving conflict, active listening, facilitating change

• Management skills – presentation, negotiating, writing, and speaking

Report Performance

• Project management plan• Work performance information• Work performance measurements

• Budget forecasts• Organizational process assets

Inputs


• Forecasting methods

• Communication methods

• Reporting systems


• Performance reports


updates

• Change requests

4120-Feb-10

• Process of collecting and distributing performance info – status reports, progress measurements, and

forecasts. Analysis of baselines VS actual

• Variance analysis – after-the-fact assessment of actual to baseline.

• Forecasting – predicting future performance

• Time series – uses historical data to estimate future (EVM, moving ave, extrapolation)

• Causal / econometric – identify variables that affect outcome (regression)

• Judgmental – intuitive, opinions, Delphi, surveys, probability

• Other – simulation, probabilistic, ensemble

Project Risk Management

Things to remember:

• Processes of conducting risk management planning, identification,

analysis, response planning, and monitoring and control.

• Increase probability and impact of positive events and decrease probability and impact of negative events

• Risk – uncertain event / condition that, if it occurs, has an effect of at least

4220-Feb-10

• Risk – uncertain event / condition that, if it occurs, has an effect of at least

one objective – either positive (opportunity) or negative (threat). Project

risk is always in the future, if it has occurred, it becomes an “issue”• Residual risk – expected to remain after a planned response• Secondary risk – arise as a result of implementing a risk response

• Risk management plan – determines how you will plan for risks, includes

methods (how), roles / responsibilities (who), budgeting (how much), timing (when), risk categories (RBS – Risk Breakdown Structure – hierarchical),

definitions of risk probability and impact.

• Risk categories – technical (specs), organizational (resources), project mgmt

(poor planning), quality, external (standards, force majeure - catastrophe)


• Project scope statement• Cost management plan• Schedule management plan

• Communications management plan• Enterprise environmental factors


Inputs

• Planning meetings and

analysis


• Risk management plan

4320-Feb-10

• Process of defining how to conduct risk management activities – should begin when project is

conceived and be completed early during project planning.

• Define probability (potential: 0 – 1) and impact (consequences: 0 – 1) and use matrix to group into

high, medium, low risk events

• Examples of risks:Budget Schedules Scope / requirements Technical issues Personnel

Hardware Software Politics Legal issues ProjMgmt

Identify Risks

• Risk management plan• Activity cost estimates• Activity duration estimates• Scope baseline

• Stakeholder register• Cost management plan• Schedule management plan• Quality management plan• Project documents

Inputs

• Documentation reviews

• Information gathering

techniques

• Checklist analysis

• Assumptions analysis

• Diagramming

• SWOT analysis


• Risk register

4420-Feb-10

• Project documents

• Project management plan• Enterprise environmental factors• Organizational process assets

• Expert judgment

• Process of determining which risks may affect project and documenting characteristics

• All project personnel should take part

• Info gathering – brainstorming (complete list), Delphi (anonymous, unbiased), nominal group (b

w/voting to rank items), interviewing, root cause analysis (identify and prevent)

• Diagramming - Cause and effect diagrams (Ishikawa / fishbone), flow charts, influence diagrams

• SWOT – opportunities and threats arising from organizational strengths and weaknesses

• Risk register – documents identified risks, potential responses, causes, thresholds


• Organizational process assets• Project scope statement• Risk management plan

• Risk register

Inputs

• Risk probability & impact

assessment

• Probability and impact matrix

• Risk data quality assessment

• Risk categorization

• Risk urgency assessment

• Expert judgment


• Risk register updates

4520-Feb-10

• Process of prioritizing risks for further analysis by probability of occurrence and impact

• Rapid and cost effective means of setting priorities for Plan Risk Responses – can go directly to Plan

Risk Responses and skip Perform Quantitative Risk Analysis

• Risks with low probability and impact ratings put on watchlist

• P / I matrix – helps to classify risks as high, medium, low


• Risk register• Risk management plan• Cost management plan

• Schedule management plan• Organizational process assets

Inputs

• Data gathering and

representation techniques

• Quantitative risk analysis and

modeling techniques

• Expert judgment



4620-Feb-10

• Process of numerically analyzing the effect of identified risk on the project

• Can assign numerical rating to each risk – may not be required to plan responses

• Data gathering – interviewing (3-pt estimates), distributions (beta, triangle, uniform – last resort)

• Analysis / modeling – sensitivity (tornado diagram, CP change), expected monetary value (EMV) (prob *

impact ($), statistical, decision tree), modeling / simulation (schedule and cost analysis, Monte Carlo – prob dist

calculated from iterations)

Plan Risk Responses

• Risk register• Risk management plan

Inputs

• Strategies for negative risk or

threats

• Strategies for positive risk or

opportunities

• Contingent response strategies

• Expert judgment



• Risk-related contract decisions


updates


4720-Feb-10

• Process of developing options and actions to enhance opportunities and reduce threats

• Must be appropriate, cost effective, realistic, agreed on by all, timely, and owned by one person

• Negative risk strategies – avoid (evade / eliminate), transfer (insurance), mitigate (reduce prob

and/or impact), accept (passive – no action, active – contingency reserve)

• Positive risk strategies – exploit (take advantage), share (like transfer), enhance (increase prob

and/or impact), accept (passive – no action, active – contingency reserve)

• Contingency planning – alternative responses, contingency reserves (time, money), fallback plans


• Risk register• Project management plan• Work performance information

• Performance reports

Inputs

• Risk reassessment

• Risk audits

• Variance and trend analysis

• Technical performance

measurement


• Status meetings




updates

• Change requests


updates


4820-Feb-10

•

• Process of implementing risk response plans, tracking identified risks, monitoring residual risks,

identifying new risks, and evaluating process

• Evaluate risk responses, look for triggers, reassess assumptions, carry out responses and

contingency plans, update OPAs (lessons learned)

• Workaround – unplanned response to a negative risk event

• Risk audits – examine and document effectiveness of risk responses

• Earned value analysis reflect trends and may indicate risks

• Status meetings should include risk management agenda item

Project Procurement Management

Things to remember:

• Processes needed to purchase / acquire products from outside project team

• Includes contract management and change control needed to administer

contracts or purchase orders issued by team. Project team is the BUYER

• Also includes administering contracts from outside (buyer) acquiring the

project from performing organization (seller)

4920-Feb-10

project from performing organization (seller)

• Contract – mutually binding agreement that obligates seller to provide

products and obligates buyer to provide payment.

• Contract life cycle – RRSA - requirement (SOW), requisition (RFP), solicitation

(responses), award … RR (Plan procurement), SA (Conduct Procurement)

• Procurement management plan – how to manage procurements – contract

types, risks, lead times, make / buy decisions, prequalified sellers, metrics

and seller evaluation process

• Procurement SOW – objectives, description of work and support, specs for product, schedule, time period of service, work location – developed from

scope baseline

Plan Procurements

• Scope baseline

• Requirements documentation

• Teaming agreements

• Risk register• Risk-related contract decisions

• Activity resource requirements

• Project schedule


Inputs

• Make-or-buy analysis

• Expert judgment

• Contract types


• Procurement management

plan

• Procurement statements of

work

• Make-or-buy decisions

• Procurement documents

• Source selection criteria

5020-Feb-10


• Cost performance baseline• Enterprise environmental factors


•• Change requests

• Process of documenting purchase decisions, specifying approach, identifying potential sellers -

what to buy, how to buy it, how much is needed, when to acquire.

• Make-or-buy – includes decisions to require insurance

• Contract types:• FP (or FFP) – firm fixed price <- best for buyer

• FPIF – fixed price plus incentive fee

• FPEPA – fixed price plus econ price adjustment (inflation, commodity costs)

• T&M – time and material <- win /win

• CPIF – cost plus incentive <- win /win

• CPAF – cost plus award fee (buyer discretion)

• CPFF – cost plus fixed fee – fee is the seller’s profit

• CPF – cost plus fee or CPPC – cost plus % cost <- best for seller

Conduct Procurements

• Project management plan• Procurement documents• Source selection criteria

• Qualified seller list• Seller proposals

• Project documents• Make-or-buy decisions

• Teaming agreements

Inputs

• Bidder conferences

• Proposal evaluation

techniques

• Independent estimates

• Expert judgment

• Advertising

• Internet search


• Selected Sellers

• Procurement contract award

• Resource calendars

• Change requests


updates


5120-Feb-10

• Teaming agreements• Organization process assets

• Procurement negotiations

•

• Process of obtaining seller responses, selecting a seller, awarding contract

• Scoring – understanding need, cost, tech capability, risk, mgmt style, warranty, refs, IP

• Procurement documents – flexible enough to allow seller suggestions for improvement

• RFP – request for proposal – suppliers states how they will do it and costs

• RFQ – request for quote – more standard products, service

• IFB – invitation for bid – narrower RFP

• RFI – request for information – query on technology or products available

• BID or QUOTATION – price is deciding factor / PROPOSAL – factors other than just price

• Contract – mutual agreement (offer & acceptance), consideration ($$), legal purpose, legal capacity (age, …)

• Fait accompli – “thing already done” – negotiation distraction technique

• Procurement negotiations can be its own process – with inputs and outputs

Administer Procurements

• Procurement documents• Project management plan• Contract

• Performance reports• Approved change requests

• Work performance information

Inputs

• Contract change control

system

• Procurement performance

reviews

• Inspections and audits

• Performance reporting

• Payment systems


• Procurement documentation


updates

• Change requests


updates

5220-Feb-10

• Claims administration

• Record management system

• Process of managing relationships, monitoring contract performance and making changes

• Includes monitoring payments to the seller and reviewing performance

• For each seller, management processes applied to contractual relationships may be:• Direct and Manage Project Execution

• Report Performance

• Perform Quality Control

• Perform Integrated Change Control

• Monitor and Control Risks

• Contested changes – disputes, claims, appeals – negotiate first, arbitrate second

Close Procurements

• Project management plan• Procurement documentation

Inputs

• Procurement audits

• Negotiated settlements

• Records management system


• Closed procurements


updates

5320-Feb-10

• Process of completing and settling each project procurement

• Product verification, administrative activities (finalizing open claims, updating records, archiving)

• Procurement audits – reviewing the procurement process, gleaning lessons learned, done by buyer

or seller

• Closed procurements – formal notice that procurement is complete

• OPA updates – lessons learned, historical info

• Close Project before Close Procurements (per earlier PMBOK)

Study Tools and Exercises

• Formulas and Diagrams

• AOA/ADM Exercises (2)

• AON/PDM Exercises (3)

• General process flow


5420-Feb-10


Formulas and diagrams: Time & CostDiagramming notation

LF – LS = SL (slack)

Forward pass – early dates – latest dates at

intersections

Backward pass – late dates – earliest dates at

intersections

Estimate types:

• ROM (+/-50%)

• Budgetary (+25% / -10%)

• Definitive (+/-10%)

Task

LFSLLS

EFDurES

Cost variance CV = EV - AC (positive is good) earned - actual

Cost performance index CPI = EV / AC (greater than 1 is good) most critical EVM measure

Schedule variance SV = EV - PV (positive is good) earned - planned

Schedule performance index SPI = EV / PV (greater than 1 is good)

EAC based on budgeted rate EAC = AC + btmupETC (new estimate – old one no good)

EAC based on budgeted rate EAC = AC + (BAC – EV) (predicts future ETC work @ budgeted rate)

EAC based on present CPI EAC = BAC / CPI (predicts future ETC work @ current rate)

5520-Feb-10

EAC based on present CPI EAC = BAC / CPI (predicts future ETC work @ current rate)

EAC based on CPI and SPI EAC = AC + (BAC – EV) (predicts firm schedule commitment)

(CPI * SPI)

ETC based on budgeted rate ETC = EAC - AC

ETC based on budgeted rate ETC = (BAC - EV) (past variance not typical of future – uses ETC @ budget rate)

ETC based on present CPI ETC = (BAC – EV) / CPI (past variance typical of future – uses ETC @ current rate)

To-Complete Performance Index TCPI = (BAC – EV) (projected CPI)

(BAC – AC)

Variance at completion VAC = BAC – EAC (positive is good)

Time value of money FV = PV (1 + i) n

i = interest rate, n = number of compounding periods

Communication channels (N (N – 1)) / 2 N = number of people

PERT 3-point estimate E = (4M + O + P) / 6

Standard deviation SD = (P – O) / 6

Ranges based on SDs +/- 1 SD = 68.9% confidence interval || +/- 2 SD = 95.4% || +/- 3 SD = 99.7%

CPI

BAC

CPI

EVBACACEAC =

−+=

=−

=−=CPI

EV-BACAC

CPI

BACACEACETC

( ) EV)(BACACEV)(BACACACEACETC −=−−+=−=

AOA/ADM Exercise 1

Paint a House

1-2 Buy Paint 2 hours

1-3 Buy Supplies 1 hour

3-2 0

3-5 Prep Walls 4 hours

5620-Feb-10

3-5 Prep Walls 4 hours

2-4 Tape Off Walls 2 hours

4-6 Paint Walls 6 hours

5-4 0

6-7 Clean Up 2 hours

With the construction table above, build a network schedule.

AOA/ADM Solution Exercise 1

2 4 76

2

2 26

5720-Feb-10

1

3 5

2

1

4

0 0

AOA/ADM Exercise 2

Calculate path durations, identify dummy activity, and identify critical path

32

3

6

5820-Feb-10

1 2

4

5 8

7

6

3

2

5

2

0 4

4

6

4

AOA/ADM Solution Exercise 2

4 Paths

1-2-3-6-8 = 14

1-2-4-3-6-8 = 17

1-2-4-5-6-8 = 20

1-2-4-5-7-8 = 18

5920-Feb-10

1-2-4-5-7-8 = 18

Dummy path = 1-2-4-3-6-8 (4-3)

Critical path = 1-2-4-5-6-8 = 20

PDM Exercise 3

Activity Immediate Preceding Activity Duration (days)

a. Excavate -- 5

b. Foundation a 2

c. Frame b 12

d. Electric c 9

e. Roof c 5

6020-Feb-10

e. Roof c 5

f. Brick c 8

g. Finish interior d 10

h. Finish exterior d 7

i. Landscape h 5

Build a network schedule

Start

Solution to PDM/AON Exercise 3

B - Foundation

XXXXXX

XX2XX

C - Frame

XXXXXX

XX12XX

D - Electric

XXXXXX

XX9XX

E - Roof

XXXXXX

XX5XX

F - Brick

XXXXXX

XX8XX

A - Excavate

XXXXXX

XX5XX

Task

LFSLLS

EFDurES

6120-Feb-10

End

XXXXXX XXXXXX XXXXXX

G - Finish Interior

XXXXXX

XX10XX

H Finish exterior

XXXXXX

XX7XX

I - Landscape

XXXXXX

XX5XX

PDM/AON Exercise 4

Forward Pass

• Work left to right, top to bottom

• Establish the first activity from the start node as an early start (ES) of 0

• Add the ES + the task duration to identify the early finish (EF)

• Add any lag to the predecessor’s EF to identify the successor’s ES

• If there are multiple predecessors to a successor use the latest EF (the higher number) as the ES of the Successor

6220-Feb-10

higher number) as the ES of the Successor

Start


B - Foundation

XXXXXX

725

C - Frame

XXXXXX

19127

D - Electric

XXXXXX

28919

E - Roof

XXXXXX

24519

F - Brick

XXXXXX

27819

A - Excavate

XXXXXX

550

Task

LFSLLS

EFDurES

6320-Feb-10

End

XXXXXX XXXXXX XXXXXX

G - Finish Interior

XXXXXX

381028

H Finish exterior

XXXXXX

35728

I - Landscape

XXXXXX

40535

NOTE: For simplified math, start with 0 and work through the network.

To determine ES and LS times, adjust by +1

For example, the EARLY START date for Task D would be DAY 20 because Task C finishes at the end of DAY 19.

The EARLY FINISH date for Task D would be DAY 28 (at the end of the day) – no change

PDM/AON Exercise 5

Backward Pass

• Work right to left, top to bottom

• Establish the Late Finish (LF) of the last activity from the finish node to be the same as the last activities EF (or the project finish date)

• Subtract the task duration from the LF to identify the late start (LS)

• Subtract any lag from the successor’s LS to identify the predecessor’s LF

• If there are multiple successors to a predecessor use the earliest LS (the smallest

6420-Feb-10

• If there are multiple successors to a predecessor use the earliest LS (the smallest number) as the LF of the predecessor

Start


B - Foundation

705

725

C - Frame

1907

19127

D - Electric

28019

28919

E - Roof

401635

24519

F - Brick

401332

27819

A - Excavate

500

550

Free – activity

Total – projectFree float - 0

Task

LFSLLS

EFDurES

6520-Feb-10

End

28019 401635 401332

G - Finish Interior

40230

381028

H Finish exterior

35028

35728

I - Landscape

40035

40535

Total float - 13

Free and total

float - 2

NOTE: For simplified math, start with 0 and work through the network.

To determine LS and ES times, adjust by +1

For example, the LATE START date for Task G would be DAY 31. ES would be DAY 29.

The LATE FINISH date for Task G would be DAY 40

(at the end of the day) – no change

General flow of activities based on

inputs and outputs of processes

CharterStakeholders

RequirementsScope Statement (deliverables, assumptions, constraints)

WBS scope baseline (scope stmt, WBS, WBS dictionary)

Activities

6620-Feb-10

ActivitiesNetwork Diagrams and Resources

DurationsSchedule schedule baseline

RisksCosts

Budget cost performance baseline

Quality and Procurements

PMI - Process Mapping Chart

Process Groups

Knowledge Areas Initiate Planning Execute Monitor / Control Close

6Integration

IDevelop Project Charter Develop Project Management Plan Direct & Manage Project Execution

Monitor & Control Project Work

Perform Integrated Change ControlClose Project (Phase)

5Scope

S


Define Scope

Create WBS

Verify Scope

Control Scope

6Time

T

Define Activities

Sequence Activities



Develop Schedule

Control Schedule

3Cost

CEstimate Costs

Determine BudgetControl Costs

6720-Feb-10

3Quality

QPlan Quality Perform Quality Assurance Perform Quality Control

4Human Resources

HDevelop Human Resources Plan



Manage Project Team

5Communications

CIdentify Stakeholders Plan Communications


Manage Stakeholder ExpectationsReport Performance

6Risk

R


Identify Risks



Plan Risk Responses


4Procurement

PPlan Procurements Conduct Procurements Administer Procurements Close Procurements

2 processes in INITIATE ALL KA's in PLAN No HR in M/C 2 processes in CLOSE

PMI - Process Mapping Chart

Process Groups

Knowledge Areas

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