PMP Preparation Worksheet

Preparation Worksheet #1

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

stakeholder expectations.

Area Process Inputs Tools and Techniques Outputs /

Deliverables

Process

Group

Other Notes

4.1 Develop Project

Charter which formally

authorizes a project or a

phase and documenting

initial requirement that

satisfy the stakeholder’s

need and expectation

Project statement of

work

Business case

Contract

Enterprise

Environment factors

Organizational

process assets

Expert judgment Project Charter Initiating Sponsor initiates the charter; charter

includes

1) Project purpose or justification

2) Measurable project objectives

and related success criteria

3) High level requirements

4) High level project description

5) High level risks

6) Summary milestone schedule

7) Summary budget

8) Project approval requirements

(what constitutes project success,

who decides the project is

successful, who signs off on the

project)

9) Assigned project manager,

responsibility and authority level

10) Name and authority of the

sponsor or other person(s)

authorizing the project charter




Deliverables

Process

Group

Other Notes

4.2 Develop Project

Management Plan that

documents what is

needed to define, prepare,

integrate & coordinate all

subsidiary plans

Project charter

Outputs from

planning processes

Enterprise

environmental

factors

Organizational

process assets

Expert judgement Project

management plan

Planning Plan 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 change

requests

Enterprise

Environment factors

Organizational

process assets

Expert judgment

Project

management

information system

Deliverables

Work performance

information

Change requests

Project

management plan

updates

Project document

updates

Executing Actions 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




Deliverables

Process

Group

Other Notes

4.5 Monitor & Control

Project Work is the

process of tracking,

reviewing, and regulating

the progress to meet the

performance objectives

defined in the project

management plan

Project

management plan

Performance reports

Enterprise

environment factors

Organizational

process assets

Expert judgment Change requests

Project

management plan

updates

Project document

updates

Monitor &

Control

Actions 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 is the process of

reviewing all change

requests, approving

changes and managing

changes to the

deliverables,

organizational process

assets, project documents

and the project

management plan

Project

management plan

Work performance

information

Change requests

Enterprise

environment factors

Organizational

process assets

Expert judgment

Change control

meeting

Change request

status updates

Project

management plan

updates

Project document

updates

Monitor &

Control

Change 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.




Deliverables

Process

Group

Other Notes

4.7 Close Project by

finalizing all activities

across all of the project

process groups to formally

close the project

Project

management plan

Accepted

deliverables

Organizational

process assets

Expert judgment Final product,

service, or result

transition

Organizational

process assets

updates

Closing Updates 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


Deliverables

Process

Group

Other Notes

5.1 Collect Requirements is

the process of defining and

documenting stakeholders’

needs to meet the project

objectives

Project charter

Stakeholder register

Interviews

Focus groups

Facilitated

workshops

Group creativity

techniques

Group decision

making techniques

o Unanimity

o Majority

o Plurality

o Dictatorship

Questionnaires and

surveys

Observations

Prototypes

Requirements

Documentation

Requirements

Management Plan

Requirements

Traceability Matrix

Planning

5.2 Define Scope by

developing a detailed

description of the project

and product

Project charter

Requirements

Documentation

Organizational

process assets

Expert judgment

Product analysis

Alternatives

identification

Facilitated

workshops

Project scope

statement

Project document

updates

Planning Project Scope statement is critical to

the project success. Includes

1) Product scope description

2) Product acceptance criteria

3) Project deliverables

4) Project exclusions

5) Project constraints




Deliverables

Process

Group

Other Notes

5.3 Create Work

Breakdown Structure

(WBS) is the process of

subdividing project

deliverables and project

work into smaller, more

manageable components.

The WBS is a deliverable-

oriented hierarchical

decomposition of the work

to be executed by the

project team to accomplish

the project objectives and

create the required

deliverables, with each

descending level of WBS

representing an

increasingly detailed

definition of the project work

Project scope

statement

Requirements

documentation

Organizational

process assets

Decomposition WBS

WBS dictionary

Scope baseline

Project document

updates

Planning Decomposition 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 Verify scope is the

process f formalizing

acceptance of the

completed project

deliverables. Verifying

scope includes reviewing

deliverables with the

customer or sponsor to

Project

management plan

Requirements

documentation

Requirements

traceability matrix

Validated

deliverables

Inspection Accepted

deliverables

Change requests

Project document

updates

Monitor

& Control

Scope verification is primarily

concerned with acceptance of the

scope by stakeholders




Deliverables

Process

Group

Other Notes

ensure that they are

completed satisfactory and

obtaining formal

acceptance of deliverables

by the customer or sponsor

5.5 Control Scope is the

process of monitoring the

status of the project and

product scope and

managing changes to the

scope baseline. Controlling

the project scope ensures

all requested changes and

recommended corrective or

preventative actions are

processed through the

Perform Integrated Change

Control Process

Project

management plan

Work performance

information

Requirements

documentation

Requirements

traceability matrix

Organizational

process assets

Variance analysis Work performance

measurements

Organizational

process assets

updates

Change requests

Project

management plan

updates

Project document

updates

Monitor

& Control

Uncontrolled changes called “scope

creep”. Change is inevitable, thus this

process is needed


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


Deliverables

Process

Group

Other Notes

6.1 Define Activities is the

process of identifying the

specific actions to be

performed to produce the

project deliverables.

Project work packages

are typically decomposed

into smaller components

called activities that

represent the work

necessary to complete

the work package

Scope baseline

Enterprise

environmental

factors

Organizational

process assets

Decomposition

Rolling wave

planning

Templates

Expert judgment

Activity list

Activity attributes

Milestone list

Planning The activity list does not include any

schedule activities that are not

required as part of the project scope.

6.2 Sequence Activity is

the process of identifying

and documenting

relationships among the

project activities.

Activities are sequenced

using logical relationship

Activity list

Activity attributes

Milestone list

Project scope

statement

Organizational

process assets

Precedence

diagramming

method (PDM)

Dependency

determination

Applying leads and

lags

Schedule network

templates

Project schedule

network diagrams

Project document

updates

Planning 3 types of dependencies - mandatory,

discretionary (best practices) and

external.

6.3 Estimate Activity

Resource is the process

of estimating the tye and

quantities of material,

people, equipment or

Activity list

Activity attributes

Resource calendars

Enterprise

environmental

Expert judgment

Alternative analysis

Published

estimating data

Bottom-up

Activity resource

requirements

Resource

breakdown

structure

Planning



Deliverables

Process

Group

Other Notes

supplies required to

perform each activity

factors

Organizational

process assets

estimating

Project

management

software

Project document

updates

6.4 Estimate Activity

Durations is the process

of approximating the

number of work periods

needed to complete

individual activities with

estimated resources.

Activity list

Activity attributes

Activity resource

requirements

Resource calendars

Project scope

statement

Enterprise

environmental

factors

Organizational

process assets

Expert judgment

Analogous

estimating

Parametric

estimating

Three point

estimates

Reserve analysis

Activity duration

estimates

Project document

updates

Planning Variance = Pessimistic – Optimistic

divided by 6, squared

Standard Deviation = Pessimistic –

Optimistic divided by 6

6.5 Develop Schedule is

the process of analyzing

activity sequences,

durations, resource

requirements and

schedule constraints to

create the project

schedule

Activity list

Activity attributes

Project schedule

network diagrams

Activity resource

requirements

Resource calendars

Activity duration

estimates

Project scope

statement

Enterprise

environmental

factors

Organizational

Schedule network

analysis

Critical path method

Critical chain

method

Resource leveling

What-if scenario

analysis

Applying leads and

lags

Schedule

compression

Scheduling tool

Project schedule

Schedule baseline

Schedule data

Project document

updates

Planning Critical 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



Deliverables

Process

Group

Other Notes

process assets chart.

Schedule compression :-

1. Crashing – adding additional

resource to shorten the

duration

2. Fast tracking – Perform

sequence activities in parallel

etc.

6.6 Control Schedule – is

the process of monitoring

the status of the project to

update project progress

and manage changes to

the schedule baseline.

Schedule control is

concern with :

Determine the current

status of the project

schedule

Influencing the factors

that create schedule

changes

Determine that the

project schedule has

changed

Managing the actual

changes as they occur

Project

management plan

Project schedule

Work performance

information

Organizational

process assets

Performance

reviews

Variance analysis

Project

management

software

Resource leveling

What-if scenario

analysis

Adjusting leads and

lags

Schedule

compression

Scheduling tool

Work performance

measurements

Organizational

process assets

updates

Change requests

Project

management plan

updates

Project document

updates

Monitor

& Control

Key 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 estimating, budgeting and controlling costs so that the project can be completed within budget


Deliverables

Process

Group

Other Notes

7.1 Estimate Cost is the

process of developing an

approximation of the

monetary resources

needed to complete

project activities

Scope baseline

Project schedule

Human resource

plan

Risk register

Enterprise

environmental

factors

Organizational

process assets

Expert judgment

Analogous

estimating

Parametric

estimating

Bottom-up

estimating

Three-point

estimates

Reserve analysis

Cost of quality

Project

management

estimating software

Vendor bid analysis

Activity cost

estimates

Basis of estimates

Project document

updates

Planning Top 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 Determine Budget is

the process of

aggregating the estimated

costs of individual

activities or work

packages to establish an

authorized cost baseline

Activity cost

estimates

Basis of estimates

Scope baseline

Project schedule

Resource calendar

Contracts

Organizational

process assets

Cost aggregation

Reserve analysis

Expert judgment

Historical

relationships

Funding limit

reconciliation

Cost performance

baseline

Project funding

requirements

Project document

updates

Planning Cost 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 Control Cost is the

process of monitoring the

Project

management plan

Earned value

management

Work performance

measurements

Monitor

& Control

PV - Planned Value (also Budget

at Completion BAC)



Deliverables

Process

Group

Other Notes

status of the project to

update the project budget

and managing changes to

the cost baseline

Project funding

requirements

Work performance

information

Organizational

process assets

Earned value

management

Forecasting

To-complete

performance index

Performance

reviews

Variance analysis

Project

management

software

Budget forecasts

Organizational

process assets

updates

Change requests

Project

management plan

updates

Project document

updates

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 overrun, 1.0 on

budget, > 1.0 underrun)

SPI, CPI used to forecast

completion date and project cost

projection

3 methods of getting EAC

o EAC forecast for ETC work

performed at the budgeted

rate, EAC = AC + BAC – EV


performed at the present CPI,

EAC = BAC/CPI


considering both SPI & CPI

factors, EAC=AC + (BAC-

EV)/(CPI*SPI)

TCPI – is the calculated projection of

cost performance that must be

achieved on the remaining work to

meet a specified management goal,

such as the BAC or EAC



Deliverables

Process

Group

Other Notes

TCPI based on BAC =

(BAC-EV)/(BAC – AC)

TCPI based on EAC =

(BAC-EV)/(EAC-AC)

Cost/Hour Estimates

Estimating Method Generic Type WBS relationship Accuracy Time to prepare

Parametric Rough Order of Magnitude Top Down -25% to +75% Days

Analogy Budget Top Down -10% to +25% Weeks

Engineering (Grass Roots) Definitive Bottom Up -5% to +10% Months

PERT is a probabilistic method, whereas CPM is deterministic.PERT estimates the activity durations based on probability, whereas CPM assumes that the activity durations are fixed

PERT estimate or Expected Activity Duration = ( O + 4M + P ) / 6

Standard Deviation of an Activity, σ = ( P – O ) / 6

Variance of an Activity, σ² = [ ( P – O ) / 6 ] ²

f


Project Quality Management – processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the

project will satisfy the needs for which it was undertaken. It implements the quality management system through policy and procedures with continuous process

improvement activities conducted throughout, as appropriate


Deliverables

Process

Group

Other Notes

8.1 Plan Quality is the

process of identifying

quality requirements

and/or standards for the

project and product, and

documenting how the

project will demonstrate

compliance

Scope baseline


Cost performance

baseline

Schedule baseline

Risk register

Enterprise

environmental

factors

Organizational

process assets

Cost-benefit

analysis

Cost of quality

Control charts

Benchmarking

Design of

experiments

Statistical sampling

Flowcharting

Proprietary quality

management

methodologies

Additional quality

planning tools

Quality

management plan

Quality metrics

Quality checklists

Process

improvement plan

Project document

updates

Planning Quality is “the degree to which a set of

inherent characteristics fulfill

requirements”

Grade is a category assigned to

products or services having the same

functional use but different technical

characteristics

Precision means the values of

repeated measurements are clustered

and have little scatter

Accuracy means that the measured

value is very close to the true value

Customer 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 is the process

Project

management plan

Plan Quality and

Perform Quality

Organizational

process assets

Executing Deming: Plan, Do, Check, Act

Kaizen (Continuous Improvement):





Deliverables

Process

Group

Other Notes

of auditing the quality

requirements and the

results from quality

control measurements to

ensure appropriate quality

standards and operational

definitions are used.

Perform Quality

Assurance is an

execution process that

uses data created during

Perform Quality Control.

Perform Quality

Assurance also provides

an umbrella for continous

process improvement,

which is an iterative

means for improving the

quality of all processes.

Continuous process

improvement reduces

waste and eliminates

activities that do not add

value. This allows

processes to operate at

increased levels of

efficiency and

effectiveness

Quality metrics

Work performance

information

Quality control

measurements

Control tools and

techniques

Quality audits

Process analysis

updates

Change requests

Project

management plan

updates

Project document

updates

Small improvements in products or

processes to reduce costs and ensure

consistency of products or services.

ISO 9000: An international standard

thatdescribes a recommended quality

system. Does not include quality

procedures or forms.

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

of Seven)





Deliverables

Process

Group

Other Notes

8.3 Perform Quality

Control is the process of

monitoring and recording

results of executing the

quality activities to assess

performance and

recommended necessary

changes

Project

management plan

Quality metrics

Quality checklists

Work performance

measurements

Approved change

requests

Deliverables

Organizational

process assets

Cause and effect

diagrams

Control charts

Flowcharting

Histogram

Pareto chart

Run chart

Scatter diagram

Statistical sampling

Inspection

Approved change

requests review

Quality control

measurement

Validated changes

Validated

deliverables

Organizational

process assets

updates

Change Requests

Project

management plan

updates

Project document

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.

Deming definition of quality is “continous improvement”

Juran – for quality to improve, we must resolve “sporadic” (short term problems) and “chronic” (require scientific breakthrough) problems.

Juran suggests that cost of quality includes both conformance and nonconformance costs, whereas Crosby sugges that cost of quality includes the nonconformance costs because he argues that quality is free and conformance cost of prevention and appraisal are cost of doing business

Deming Juran Crosby

Definition of quality Continuous improvement Fitness for use Conformance to requirements

Application Manufacturing-driven companies Technology driven companies People drive companies

Target audience Workers Management Workers

Emphasis on Tools / System Measurement Motivation (behavioral)

Type of tools Statistical process control Analytical, decision-making and Minimal use

Cost of quality

Use of goals and targets Not used Used for breakthrough projects Posted goals for workers

Taguchi’s concepts :-

1. Quality should be designed into the product and not inspected into it2. Quality is best achieved by minimizing the deviation from the target. The product should be designed that it is immune to uncontrollable environmental factors3. The cost of quality should be measured as a function of deviation from the standard and the losses should be measured system-wide

6 quality management concepts

1. Quality policy2. Quality objectives3. Quality assurance4. Quality control5. Quality audit6. Quality program plan

Cost of Quality

Cost of good quality (cost of conformance)o Prevention costs (build a quality product)o Appraisal cost (Assess the quality)

Cost of Poor quality (cost of nonconformance)o Internal failure cost (Failures found by the project)o External failure cost (Failures found by the customer)o


Project Human Resource Management – process the organize, manage and lead the project team


Deliverables

Process

Group

Other Notes

9.1 Develop Human

Resource Plan by

identifying, documenting

Activity resource

requirements

Enterprise

Organization charts

and position

descriptions

Human Resource

Plan

PlanningStaff management plan includes 1)

staff acquisition 2) timetable 3) release



Deliverables

Process

Group

Other Notes

project roles,

responsibilities, required

skills, reporting

relationships as well as

creating the staffing

management plan

environmental

factors

Organizational

process assets

Networking

Organizational

theory

criteria 4) training needs 5) recognition

& rewards 6) compliance 7) safety

9.2 Acquire Project Team

is the process of

confirming human

resource availability and

obtaining the team

necessary to complete

project assignments.

Project

management plan

Enterprise

environmental

factors

Organizational

process assets

Pre-assignment

Negotiation

Acquisition

Virtual teams

Project staff

assignments

Resource

calendars

Project

management plan

updates

Executing Conflict 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

is the process of

improving the

competencies, team

interaction, and the

overall team environment

to enhance project

performance. Project

managers should acquire

skills to identify, build,

maintain, motivate, lead

and inspire project teams

to achieve high team

performance and to meet

Project staff

assignments

Project

management plan

Resource

calendars

Interpersonal

skills

Training

Team building

activities

Ground rules

Co-location

Recognition and

rewards

Team

performance

assessments

Enterprise

environmental

factors updates

Executing Maslow’s Hierarchy of Needs (in

order):

Physiological (Lowest)

Safety

Social

Esteem

Self-Actualization (Highest)

MacGregor’s Theory X – People must

be constantly watched. They are

incapable, avoid responsibility, and

avoid work.

MacGregor’s Theory Y – People are

willing to work without supervision and

want to achieve.



Deliverables

Process

Group

Other Notes

the project’s objectives. Ouchi's Theory Z - People work

effectively when secure, consulted and

held collectively responsible.

9.4 Manage Project Team

is the process of tracking

team member

performance, providing

feedback, resolving

issues, and managing

changes to optimize

project performance.

Project staff

assignments

Project

management plan

Team performance

assessments

Performance reports

Organizational

process assets

Observation and

conversation

Project performance

appraisals

Conflict

management

Issue log

Interpersonal skills

Enterprise

environmental

factors updates

Organizational

process assets

updates

Change requests

Project

management plan

updates

Monitor &

Control

Lessons 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

Worksheet #7

Project Communications Management – Processes required to ensure timely and appropriate generation, collection, dissemination, storage, retrieval, and

ultimate disposition of project information; provide the critical links among people & information that are needed for successful communications. Effective

communication creates a bridge between diverse stakeholders involved in a project, connecting various cultural and organizational backgrounds, different levels of

expertise, and various perspectives and interests in the project execution or outcome

Area Process Inputs Tools and Techniques Outputs / Deliverables Process

Group

Other Notes

10.1 Identify

Stakeholders is the

process of identifying all

people or organizations

impacted by the project,

and documenting relevant

information regarding

their interests,

involvement, and impact

on project success

Project charter

Procurement

documents

Enterprise

environmental

factors

Organizational

process assets

Stakeholder

analysis

Expert judgment

Stakeholder

register

Stakeholder

management

strategy

Initiating Communication 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.

A salience model is a stakeholder

classification that ranks stakeholders

based on their power, urgency, and

legitimacy in the project

10.2 Plan

Communications is the

process of determining

the project stakeholder

information needs and

defining a communication


Stakeholder

management

strategy

Enterprise

environmental

Communication

requirement

analysis

Communication

technology

Communication

Communications

management plan

Project document

updates

PlanningPM should spend 70 - 90% of their

time communicating.

Basic elements of communication:

¨ Sender (or encoder)

¨ Message.






Group

Other Notes

approach factors

Organizational

process assets

models

Communication

methods

¨ Receiver (or decoder)

About 55% of all communication is nonverbal. Oral Message account for 7% of the message, The tonality of the message account for 38% of the message.

Paralingual – Pitch and tone of voice also help to convey a message

Communication methods – Interactive communication, Push communication, Pull communication

10.3 Distribute

information is the process

of making relevant

information available to

project stakeholders as

planned.

The focus here is mainly

in the execution process,

which includes

implementing the

communications

management plan, as

Project

management plan

Performance reports

Organizational

process assets

Communication

methods

Information

distribution tools

Organizational

process assets

updates

Execution Performance Reporting Tools:

¨ Status Report

¨ Progress Report

¨ Trend Report

¨ Forecasting Report

¨ Variance Report

¨ Earned Value**






Group

Other Notes

well as responding to

unexpected requests for

information.

10.4 Manage Stakeholder

Expectations is the

process of

communicating and

working with stakeholders

to meet their needs and

addressing issues as they

occur


Stakeholder

management

strategy

Project

management plan

Issue log

Change log

Organizational

process assets

Communication

methods

Interpersonal skills

Management skills

Organizational

process assets

updates

Change requests

Project

management plan

updates

Project document

updates

Execution

10.5 Report

Performance is the

process of collecting and

distributing performance

information, including

status reports, progress

measurements, and

forecasts

The performance

reporting process

involves the periodic

collection and analysis of

baseline versus actual

Project

management plan

Work performance

information

Work performance

measurements

Budget forecasts

Organizational

process assets

Variance analysis

Forecasting

methods

Communication

methods

Reporting systems

Performance

reports

Organizational

process assets

updates

Change requests

Monitoring

and

Controllin

g






Group

Other Notes

data to understand and

communicate the project

progress and

performance as well as

forecast the project

results


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

Area Process Inputs Tools and

Techniques

Outputs / Deliverables Process

Group

Other Notes

11.1 Risk Management

Planning by deciding

how to approach, plan

& execute the risk

management activities

for a project

The process of

developing and

documenting an

organized,

comprehensive, and

interactive strategy and

methods for identifying

and analyzing risks,

developing risk

response plans and

monitoring and

controlling how risks

have changed

- Project scope

statement

- Cost

management plan

- Schedule

Management

Plan

- Communication

Management

Plan

- Enterprise

Environment

Factors

- Organizational

Process Assets

- Planning

Meetings and

analysis

- Risk Management Plan

o Risk Management

Methodology

o Risk roles and

responsibility

o Risk budget and

schedule

o Tolerances, threshold,

and authority

o Risk categories

Planning Risk = f(probability, consequence)

Tolerance of risk :

Risk averter/avoider,

risk neutral,

risk taker or risk seeker.

Expected Payoff for a strategy =

sum of (payoff element X

probability)

Risk 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

- Risk management

plan

- Documentation

reviews

- Risk register

o Risk

Planning Risk Components:

¨ Risk event




Techniques


Group

Other Notes

risks might affect the

project and

documenting their

characteristics

- Activity cost

estimates

- Activity duration

estimates

- Scope baseline

- Stakeholder register

- Cost management

plan

- Schedule

management plan

- Quality

management plan

- Project documents

- Enterprise

environment factors

- Information

gathering

techniques

- Checklist

analysis

- Assumptions

analysis

- Diagramming

techniques

- SWOT analysis

- Expert judgement

o Risk owner

o Risk category

o Risk cause

o Potential response

o Impact

o Probability

o Symptons/Warning

signs

o Risk score

o Risk ranking / priority

o Risk response

o Risk response

responsibilities

o Secondary risks

o Risk response budget

o Risk response

schedule

o Contingency plan

o Fallback plan

¨ Risk event probability

¨ Risk event consequence

¨ Risk event status

11.3 Qualitative Risk

Analysis by prioritizing

risks for further analysis

or action by assessing

- Risk register

- Risk management

plan

- Project scope

- Risk probability

and impact

assessment

- Probability and

- Risk register (updates) Planning Use of low precision data may lead

to faulty analysis.

Risks calculated as high or

moderate would be prime




Techniques


Group

Other Notes

& combining their

probability of

occurrence & impact

statement

- Organizational

process assets

impact matrix

- Risk data quality

assessment

- Risk

categorization

- Risk urgency

assessment

- Expert judgment

-

candidates for further analysis.

11.4 Quantitative Risk

Analysis through

numerically analyzing

the effect on overall

project objectives of

- Risk register

- Risk management

plan

- Cost management

plan

- Data gathering

and

representation

techniques

- Quantitative risk

- Risk register (updates)

including 1) probabilistic

analysis of the project for

schedule & cost outcomes 2)

prioritized list of quantified

Planning Quantitative analysis follows

qualitative analysis.

Objectives include:

¨ Determine probability of

reaching project objectives




Techniques


Group

Other Notes

identified risks - Schedule

management plan

- Organizational

process assets

analysis and

modeling

techniques

(sensitivity

analysis,

expected

monetary value

analysis, and

decision tree

analysis,

modeling &

simulation)

- Expert judgment

risks 3) trends in quantitative

risk results)

¨ 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 register

- Risk management

plan

- Strategies for

negative risk or

threats (avoid,

transfer or

mitigate)

- Strategies for

positive risks or


- Risk-related contractual

agreements

- Project management plan

(updates)

- Project document updates

Planning Contingency 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




Techniques


Group

Other Notes

Response Option for

risk include

acceptance, avoidance,

mitigation (control) and

transfer

Response Option for

opportunity include

acceptance, enhance,

exploit and share

opportunities

(exploit, share or

enhance)

- Strategy for both

risks and

opportunities

(accept and

contigent)

- Contingency

response

strategy

- Expert judgment

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

- Risk register

- Project

management plan

- Work performance

information

- Performance

reports

- Risk

reassessment

- Risk audits

- Variance and

trend analysis

- Technical

performance

measurement

- Reserve analysis


- Organizational process assets

updates

- Change requests

- Project management plan

(updates)

- Project document updates

Monitor

&

Control

Purpose 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




Techniques


Group

Other Notes

throughout the project

life cycle

- Status meetings ¨ Risk exposure has changed

Notes

Hurwicz criterion – optimistic and go by maximize profit by go-for-broke strategy – maximax criterion

Wald criterion – maximin criterion – how much can afford to lose

Savage – minimize the maximum regret – minimax criterion – minimize the maximum regret

Laplace – attempt to transform decision making under uncertainty to decision making under risk

Expected monetary value (EMV) is the cost or benefit of an uncertain event

EMV =

Reserve – Contingency reserve (known unknowns) and management reserve (unknown)


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


Deliverables

Process

Group

Other Notes

12.1 Plan Procurements

is the process of

documenting project

purchasing decisions,

specifying the approach,

and identifying potential

sellers. It identifies those

project needs which can

best be, or must be, met

by acquiring products,

services, or results

outside of the project

organization, versus

those project needs

which can be

accomplished by the

project team

Scope baseline

Requirements

document

Teaming

requirements

Risk register

Risk-related contract

decisions

Activity resource

requirements

Project schedule

Activity cost

estimates

Cost performance

baseline

Enterprise

environmental

factors

Organizational

process assets

Make-or-buy

analysis

Expert judgment

Contract types

Procurement

management plan

Procurement

statement of work

Make-or-buy

decisions

Procurement

documents

Source selection

criteria

Change requests

Planning Contract Type:

FP – Fixed Price or Lump

sum. (Simplest form is PO) –

risk on seller

o Firm Fixed Price Contracts

(FFP)

o Fixed Price Incentive Fee

Contracts (FPIF)

o Fixed Price with Economic Price

Adjustment Contracts (FP-EPA)

CR – Cost Reimbursable (cost

plus fee, cost plus fixed fee or

cost plus incentive fee, cost plus

award fee contracts) – place risk

on buyer

T&M – Time and Materials

(aspects of FP and CR

contracts) - Moderate cost risk

to buyer.)




Deliverables

Process

Group

Other Notes

12.2 Conduct

Procurements is the

process of obtaining

seller responses,

selecting a seller, and

awarding a contract. In

this process, the team will

receive bids or proposals

and will apply previously

defined selection criteria

to select one or more

sellers who are qualified

to perform the work and

acceptable as a seller

Project

management plan

Procurement

documents

Source selection

criteria

Qualified seller list

Seller proposals

Project documents

Make-or-buy

decision

Teaming

agreements

Organizational

process assets

Bidder conferences

Proposal evaluation

techniques

Independent

estimates

Expert judgment

Advertising

Internet search

Procurement

negotiations

Selected sellers

Procurement

contract award

Resource

calendars

Change requests

Project

management plan

updates

Project document

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

All bidders conference Q&A should be

put in writing and issued to all potential

sellers as an addendum to the

procurement docs.

12.3Administer

Procurements is the

process of managing

procurement relationship,

monitoring contract

performance, and making

changes and corrections

as needed. Both the

buyer and seller will

administer the

procurement contract for

similar purposes

Procurement

documents

Project

management plan

Contract

Performance reports

Approved change

requests

Work performance

information

Contract change

control system

Procurement

performance

reviews

Inspection and

audits

Performance

reporting

Payment systems

Claims

administration

Procurement

documentation

Organizational

process assets

updates

Change requests

Project

management plan

updates

Executing




Deliverables

Process

Group

Other Notes

Record

management

system

12.4 Close

Procurements is the

process of completing

each project

procurement. It supports

the Close Project or

Phase process, since it

involves verification that

all work and deliverables

were acceptable.

Project

management plan

Procurement

documentation

Procurement audits

Negotiated

settlements

Records

management

system

Closed

procurements

Organizational

process assets

updates

Executing

Knowledge Areas Project Management Process GroupsInitiating Process Group

Planning Process Group

Executing Process Group

Monitoring & Controlling Process Group

Closing Process Group

4. Process Integration Management

4.1 Develop Project charter

4.2 Develop Project Management Plan

4.3 Direct and Manage Project Execution

4.4 Monitor and Control Project Work

4.5 Perform Integrated Change Control

4.6 Close Project or Phase

5. Project Scope Management

5.1 Collect Requirements

5.2 Define Scope5.3 Create WBS

5.4 Verify Scope5.5 Control Scope

6. Project Time Management

6.1 Define Activities6.2 Sequence

Activities6.3 Estimate

Activity Resources

6.4 Estimate Activity Durations

6.5 Develop Schedule

6.6 Control Schedule

7. Project Cost Management

7.1 Estimate Costs7.2 Determine

Budget

7.3 Control Costs

8. Project Quality Management

8.1 Plan Quality 8.2 Perform Quality Assurance

8.3 Perform Quality Control

9. Project Human 9.1 Develop Human 9.2 Acquire Project 9.5

Resource Management Resource Plan Team9.3 Develop Project

Team9.4 Management

Project Team10.Project

Communications Management

10.1 Identify Stakeholders

10.2 Plan Communications

10.3 Distribute Information

10.4 Manage Stakeholders Expectations

10.5 Report Performance

11.Project Risk Management

11.1 Plan Risk Management

11.2 Identify Risks

11.3 Perform Qualitative Risk Analysis

11.4 Perform Quantitative Risk Analysis

11.5 Plan Risk Responses

11.6 Monitor and Control Risks

12.Project Procurement Management

12.1 Plan Procurements

12.2 Conduct Procurements

12.3 Administer Procurements

12.4 Close Procurements

Documents

PMP Preparation Worksheet