PMP Final Reviewbe ready for the exam

Prepared by:

Engr. Mohamed Maged, PMP

Admin of:

https://www.facebook.com/Prof.Planner

Instructor: Mohamed Maged

Senior Project Control Engineer, B.Sc. of Civil engineering –Ain Shams

University, with experience in MENA region of (construction, infrastructure,

and roads) Mega projects, in professions of Contract administration, Procurement,

Tender estimating, Cost control, Planning & Claim analysis.

Instructor of Planning & Project Management:

- Construction Management Planning and Control (CMPC).

- Delay, Claim and Dispute Resolution (DCDR) in PMBOK, FIDIC & SCL protocol.

- Project Management Professional (PMP).

- Free lectures with cooperation of Egyptian Engineers Association in Saudi:

- Product oriented construction management

- Top 10 planning fundamentals

- Scope creep – cases and preventive actions

- Claims and dispute resolution in FIDIC

Mohamed Maged (Professional Certificates)

PMP Project Management Professional (PMI – USA)

SFC Scrum Fundamentals Certified (SCRUM study)

Associate of Chartered Institute of Arbitrators (CIArb - London)

Fellow of Association of International Arbitration (AIA - Brussels)

FIDIC Contracts Consultant: International academy of mediation and

arbitration - Egypt.

Six Sigma Yellow Belt Professional (6 Sigma Study- PMI)

Mohamed Maged (Prof. Planner)

Admin of the biggest online community of Arab Planners (10,000+)

(Facebook Page: to be prof. planner, related group: Best Advice for

Planners – Public group)

SlideShare: www.slideshare.net/MohamedMaged8/

Planning fundamentals: http://www.slideshare.net/Mohamed

Maged8/50qts-of-planning-fundamentals-ver04

YouTube Channel: https://www.youtube.com/ArabPlanners.

Arranged Two Annual Conferences of Planning and

Project Management (Anniversary of Facebook Page: Prof.Planner)-

American University in Cairo, August 2014 & 2015.

A GUIDE TO THE PROJECT

MANAGEMENT BODY OF

KNOWLEDGE (PMBOK®

Guide) – Fifth Edition

Syllabus: Program of Study

• Project management framework

• Project Initiating processes

• Scope management

• Time management

• Cost management

• Quality management

• HR management

• Communication management

• Stakeholder management

• Procurement management

• Risk management

• Integration management

• Professional conduct

• Jan 2016 Exam changes

Project. A temporary endeavor undertaken to create a unique

product, service, or result (not operation: ongoing and

repetitive, can be included in the project if it’s a part of it).

Progressive Elaboration. The iterative process of increasing the

level of detail in a project management plan as greater

amounts of information and more accurate estimates become

available (rolling wave planning).

I1

Temporaryhas a beginning & an

end

Uniqueproduct, service, or

result

Progressive Elaboration

Business Case. Typically, the business need (Market demand,

Organizational need, Customer request, Technological advance, Legal

requirement, Social need) and the cost-benefit analysis are contained in

the business case to justify the project.

Note:

Feasibility Study.

Usually consists of

Technical,

Economic, Market/

Environmental,

and Legal studies.

Statement of Work (SOW). by initiator, sponsor or customer - A narrative

description of products, services, or results to be delivered by the

project (Business need, Product scope description, Strategic plan).

Product Life Cycle. phases of a product,

from concept through delivery, growth,

maturity, and to retirement (Benefit/Cost =1).

Project Life Cycle. The series of phases that a

project passes through from its initiation to its

closure (Project Boundary).

I2

Predictive Life Cycle. project scope, and the time and cost

required to deliver that scope, are determined as early as

possible.

Iterative Life Cycle. Iterations develop the product through a

series of repeated cycles, while increments successively add

to the functionality of the product.

Incremental Life Cycle. A project life cycle where the

project scope is generally determined early in the project life

cycle, but time and cost estimates are routinely modified.

Adaptive Life Cycle. change-driven or agile methods -

Scrum, iterative and incremental, but differ in that iterations

are very rapid.

Predictive Life Cycle

Project Management. The application of knowledge, skills,

tools, and techniques to project activities to meet the

project requirements/ objectives.

Constraint. A limiting factor that affects the execution of a

project, program, portfolio, or process (time, cost, quality,

scope, risk, resources & customer satisfaction).

Project Management Process Group. A logical grouping of

project management inputs, tools and techniques, and

outputs.

Initiating Process Group. obtaining authorization to start the

project or phase (Two Processes out of 47 Processes ).

Planning Process Group. define the course of action

required to attain the objectives (most important).

Executing Process Group. to complete the work defined in

the project management plan (most time and resource

usage).

Monitoring and Controlling Process Group. to track, review,

and regulate the progress and performance of the project;

identify any areas in which changes to the plan are

required; and initiate the corresponding changes.

Closing Process Group. to finalize all activities to formally

close a project or phase.

I3

I4

Subproject. A smaller portion of the overall project created when a project is

subdivided into more manageable components or pieces.

Program. Related projects, subprograms, and program activities managed in a

coordinated way to obtain benefits not available from managing them individually.

Portfolio. Projects, programs, subportfolios, and operations managed as a group to

achieve strategic objectives.

Organizational Project Management Maturity. The level of an organization’s ability

to deliver the desired strategic outcomes in a predictable, controllable, and reliable

manner - Organizational Project Management Maturity Model (OPM3®).

Project Management Office (PMO). An organizational structure

that standardizes the project-related governance processes and

facilitates the sharing of resources, methodologies, tools, and

techniques (supportive, controlling & directive).

Project Governance. The alignment of project objectives with the strategy of the

larger organization by the project sponsor and project team, and is required to fit

within the larger context of the program or organization sponsoring it, but is

separate from organizational governance.

Product-oriented processes. These

specify and create the project’s

product, typically defined by project

life cycle and vary by application area.

I5

Phase-to-Phase Relationships:- Sequential relationship. -Overlapping relationship.

Projectized Organization the project manager has full authority (team is loyal

to the project – buy-in, but don’t have

home).

Functional Organization. clear superior, and staff are grouped by areas of

specialization (team has career path,

technical support).

Matrix Organization. the project manager shares responsibility with the

functional managers (strong, balanced

& weak: expeditor or coordinator).

Composite Organization fundamentally functional organization may create a

special project team.

PM may interact with : Strategic, middle

management, and operational levels.

12

Organizational Governance. Organizations use governance to establish strategic

direction and performance parameters. Organizational governance criteria can impose

constraints on projects - particularly if the project delivers a service which will be subject to

strict organizational governance.

Organizational Process Assets. Plans, processes, policies, procedures, and knowledge

bases that are used by the performing organization (historical information, lessons learned,

policies, templates,…).

Enterprise Environmental Factors. Conditions, not under the immediate control of the

team, that influence, constrain, or direct the project, program, or portfolio.

Business Value. a concept that is unique to each organization. Business value is defined as

the entire value of the business; the total sum of all tangible and intangible elements.

Project Management Information System (PMIS). An information system consisting of the

tools and techniques used to gather, integrate, and disseminate the outputs of project

management processes. It is used to support all aspects of the project from initiating

through closing, and can include both manual and automated systems.

Work Authorization System. A subsystem of the overall project management system. It is a

collection of formal documented procedures that defines how project work will be

authorized (committed) to ensure that the work is done by the identified organization, at

the right time, and in the proper sequence. It includes the steps, documents, tracking

system, and defined approval levels needed to issue work authorizations.

I7

Stakeholder. who may affect, be

affected by, or perceive itself to be

affected by a decision, activity, or

outcome of a project.

Customer. that will pay for the

project’s product, service, or result.

Customers can be internal or external

to the performing organization.

Sponsor. who provides resources

(funding to specific scope) and

support (with stakeholders) for the

project, program, or portfolio and is

accountable for enabling success.

I8

The project manager is the person assigned by the performing organization to lead the team that is responsible for

achieving the project objectives. Depending on the organizational structure, a project manager may report to a

functional manager. PM may be one of several project managers who report to a program or portfolio manager.

1- Responsibilities and Competencies of the Project Manager. to satisfy task needs, team needs, and individual needs.

Competencies: -Knowledge – Performance -Personal, and balancing the project constraints.

2- Interpersonal Skills of a Project Manager. such as: - Leadership, - Team building, - Motivation, - Communication, -

Influencing, - Decision making, - Political and cultural awareness, - Negotiation, - Trust building, - Conflict management,

and - Coaching.

Project Selection

I9

Economic Value Added (EVA). concerned with whether the project returns to the company

more value than the initiative costs.

Payback period. Payback period in capital budgeting refers to the period of time to recoup

the funds expended in an investment. Working Capital. current assets minus liabilities for

an organization or amount of money the company has available to invest.

Benefit cost ratio (BCR). the amount of money a project is going to make versus cost to

build it. Generally, if benefit is higher than cost, the project is a good investment.

Net present value (NPV). This is the actual value at a given time of the project minus all of

the costs associated with it. This includes the time it takes to build it. People calculate this

number to see if it’s worth doing a project (PV = FV / (1+r)^n). Discount Rate. The interest

rate used to calculate present value of expected yearly benefits and costs.

Internal rate of return. This is the amount of money the project will return to the company

that is funding it. It’s how much money a project is making the company. It’s usually

expressed as a percentage of the funding that has been allocated to it.

Depreciation. The rate at which project loses value over time. the product loses value as

time goes on (Straight line: The same amount of depreciation is each year, Accelerated:

Double Declining Balance, Sum of the Years Digits) .

Lifecycle costing. it’s really useful to figure out how much you expect a project to cost -

not just to develop, to support the product once it’s in place and being used by customer.

Opportunity cost. When an organization has to choose between projects, it’s always

giving up the money would have made on the next best one it doesn’t do (not selected).

Sunk cost. is a cost that has already been incurred and cannot be recovered. Sunk costs

should not affect the rational decision-maker's best choice, the prospective cost is

an avoidable future cost and is properly included in any decision-making processes.

Law of Diminishing Returns. After a certain point, adding more input/ resource/ money

will not produce a proportional increase in productivity/ return.

Trade-offs by two categories:

1. Benefit measurement

methods (Comparative

approach)- Murder board (a panel of

people who try to shoot down

a new project idea).

- Peer review .

- Scoring models .

- Economic models

(described aside).

2. Constrained optimization

methods (Mathematical

approach)Linear programming .

Integer programming .

Dynamic programming .

Multi-objective programming.

16

Project Management Knowledge Area. An

identified area of project management defined

by its knowledge requirements and described in

terms of its component processes, practices,

inputs, outputs, tools, and techniques.

P1 4.1. Develop Charter - Integration

Initiating Process Group

Agreements. when a project is being performed for an external customer.

Enterprise environmental factors. PMIS (the work authorization system).

Expert Judgement. Such expertise is provided by any group or individual with specialized knowledge or training.

Facilitation techniques. Building consensus and overcoming obstacles. Brainstorming, conflict resolution, problem solving, and meeting management

are examples of key techniques used by facilitators.

Project Charter. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager

with the authority (milestones is helpful in management, may use phase exits/

stage gates/ decision gates/ kill points as phase end reviews to determine if the

project should continue and correct errors).

Not having a project charter is unethical, it wastes

company time, human resources, and money.

P2

13.1. Identify Stakeholders

Procurement Documents. Relevant parties, such as the parties in the contracts, suppliers, should also be considered as part of the project stakeholder list.

Stakeholder Analysis. systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account

throughout the project (as early as possible, Stakeholders can be identified

throughout the project). There are multiple classification models, such as:

- Power/interest grid, grouping the stakeholders based on their level of authority(“power”) and their level or concern (“interest”) regarding the project outcomes;

- Power/influence grid, grouping the stakeholders based on their level of authority (“power”) and their active involvement (“influence”) in the project;

- Influence/impact grid, grouping based on their active involvement (“influence”) and their ability to effect changes to the project’s planning or execution (“impact”);

- Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their

involvement is appropriate).

Stakeholder Register. A project document

including the

identification,

assessment (e.g. skill),

and classification of

project stakeholders

(should be shared

with others at the

discretion of the

project manager).

Key stakeholders include anyone in a decision-making or

management role who is impacted by the project outcome.

5.1. Plan Scope Management

P3&4

Scope Management Plan. A

component of the project or program

management plan that describes how

the scope will be defined, developed,

monitored, controlled, and verified.

Requirements Management Plan. A

component of the project or program

management plan that describes how

requirements will be analyzed,

documented, and managed.5.2. Collect Requirements

Requirements Documentation. A description of how individual

requirements meet the business need for the project.

Requirements Traceability Matrix. A grid that links product requirements from their origin to the deliverables that satisfy

them.

The project charter is used to provide the

project context needed to plan the scope

management processes.

Requirements: Business requirements (organization) , Stakeholder requirements,

Solution requirements (functional,

nonfunctional as safety), Transition

requirements (training), Project

requirements, Quality requirements.

20

Interviews. talking directly to stakeholders (confidential).

Focus Groups. An elicitation technique that brings together prequalified stakeholders and

subject matter experts to learn about their expectations.

Facilitated Workshops. focused sessions that bring key cross-functional stakeholders

together (JAD: joint application development, QFD: quality function deployment, VOC:

voice of customer & User stories).

Group Creativity Techniques. ideas within a group of stakeholders.

Brainstorming. by using a group of team members or experts.

Nominal Group Technique. enhances brainstorming with a voting process used to rank

the most useful ideas.

Idea/Mind Mapping. to consolidate ideas created through

individual brainstorming sessions into a single map (tree).

Affinity Diagram. large numbers of ideas to be classified.

Multi-Criteria Decision Analysis. a systematic analytical approach for establishing criteria.

Group Decision-Making Techniques.

Delphi Technique. consensus of experts anonymously unbiased (secretly). A facilitator uses a questionnaire, then

recirculated. Consensus (unanimity/harmony) may be reached in a few rounds.

Unanimity. Agreement by everyone in the group. Majority. Support from more than 50 percent.

Plurality. Decisions made by the largest block. Dictatorship. one individual makes the decision.

Questionnaires and Surveys. Sets of questions to quickly accumulate information from a large no. of respondents.

Observations. a direct way of viewing (job shadowing).

Prototypes. working model before building (storyboarding, mockup).

Benchmarking. the comparison as basis for measuring performance.

Context Diagrams. A visual depiction (scope model) of the product.

Document Analysis. An elicitation technique that analyzes existing documentation.

5.3. Define Scope

P5

Define Scope. The process of developing a detailed description of the product and project scope (by project team). The key benefit of this

process is by balancing the requirement with the benefit of organization.

It also provides a common understanding of the project scope among project stakeholders.

Product Analysis. For projects that have a product as a deliverable, it is a tool to define scope that generally means asking questions about a product and forming answers to describe the

use, characteristics, and other the relevant aspects of what is going to be manufactured.

Value Engineering. An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more

effectively.

Alternatives Generation. A technique used to develop as many potential options as possible in order to identify different approaches to execute and perform the work of the project.

5.4. Create WBS

P6

Create WBS. subdividing project deliverables and project work (including management work) into smaller, more manageable

components, can be used as internal or external communications tool.

Decomposition. A technique used for dividing and subdividing project scope and project deliverables into smaller, more manageable parts.

Scope Baseline. The approved version of a scope statement (1), work

breakdown structure (WBS (2): A hierarchical decomposition with

leveled numbering system/ Code of Accounts; Work Package. the lowest level of the WBS or deliverables for which cost, duration can be

estimated and managed -4/40, 8/80, up to 300 hrs based on project

size- contains total work ‘100% rule’), and its associated WBS dictionary

(3) (responsibility), that baseline can be changed only through formalchange control procedures.

P7&8

Verified deliverable. Is output of internal quality control process.

Work Performance Data. execution observations and measurements.

Inspection. Examining, audit policy or measuring (by customer/ sponsor).

Accepted Deliverables. completed project deliverables

validated by the project

customer or sponsors.

Change Request. A formalproposal (corrective action,

preventive action, defect

repair, scope change).

Work Performance Information. Data analyzed (compared to

baseline).

Variance Analysis. determining the cause and degree of difference between the baseline and actual performance.

5.5. Validate Scope

5.6. Control ScopeGold plating Sometimes people think of a really great

improvement to the product

(giving extra) and go ahead and

make it without even checking

the impact (unsuccessful project).

Scope Creep. The uncontrolled expansion to product or project

scope without adjustments to

time, cost, and resources.

P9&10

Analytical Techniques. evaluate, analyze, or forecast potential outcomes based on possible variations (any analysis, grouping,

forecast, etc.).

Rolling Wave Planning. An iterative planning technique in which the work to be accomplished in the near term is

planned in detail, while the future is planned at a higher level.

6.1. Plan Schedule Management

6.2. Define Activities

Activity List. A documented tabulation of schedule activities

that shows the activity

description, activity identifier,

and a sufficiently detailed scope

of work description.

Activity Attributes. Activity attributes include activity codes,

predecessor activities, successor

activities, logical relationships,

leads and lags, resource

requirements, imposed dates,

constraints, and assumptions

(may vary by application area).

(Level of Effort (LOE). Hammock,

An activity that does not

produce definitive end products

and is measured by the passage

of time. Milestone List. A list identifying all milestones and

indicates whether is mandatory

or optional. (Milestone. Check

point: A significant event in a project, program, or portfolio).

6.3. Sequence Activities

P11

Project Schedule Network Diagram. A graphical representation of the logical

relationships among the project

schedule activities (pure logic

diagram).

Precedence Diagramming Method (PDM). constructing a

schedule Activity-on-Node (AON).

Dependency Determination. Logical Relationship/ mathematical

analysis:

Mandatory Dependency. contractually required or inherent in the nature of the work. Hard Logic.

Discretionary Dependency. based on knowledge of best practices, Preferred Logic. Soft Logic.

External Dependency. A relationship with non-project activities.

Successor Activity. that logically comes after Vs Predecessor.

Applying Lag. a successor activity waiting Vs Lead (-ve lag).

P12&

13

Identified risks are inputs

to the estimate (to be

done by all team),

additional risks may be

uncovered as output also.

Alternative Analysis. options to execute and perform the work.

Published Estimating Data. Several organizations publish production

rates and unit costs of resources for

different countries.

Activity Resource Requirements. Types and quantities of resources

required for each activity.

Resource Breakdown Structure. A hierarchical by category and type.

6.4. Estimate Activity Resources

6.5. Estimate Activity DurationsBottom-Up Estimating. by aggregating (roll up) the estimates of

the lower-level of the (WBS).

Analogous Estimating. estimating of an activity or a project using historical

data from a similar activity or project

(top down estimate- quick & cheap).

Parametric Estimating. an algorithm/ mathematical model (e.g. dollars per

module) to calculate based on

historical data and project

parameters (learning curve).

Calendar. A calendar identifies working days

and shifts that are available, distinguishes time

periods or parts of days that are available.

Activity Duration

Estimate. A

quantitative

assessment of the

likely amount or

outcome for the

duration of an activity.

Three-Point Estimate. A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with

the individual activity estimates (PERT), the mean with 50% probability is:

Duration (Triangle distribution) = (Opt. + Most + Pes.) / 3

Duration (Beta distribution) = (Opt. + 4*Most + Pes.) / 6, Standard dev. - σ (uncertainty) =

(Pes.-Opt.) / 6, Variance = (Standard deviation)^2……6 sigma (mean +/- 6 σ)

Program Evaluation and Review Technique (PERT). A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is

uncertainty with the individual activity estimates.

Pessimistic Duration. Estimate of the longest activity duration that takes into account all of

the known variables that could affect performance.

Optimistic Duration. An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance.

Most Likely Duration. An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance.

Reserve Analysis. An analytical technique to determine the essential features and relationships of components in the project management plan.

Reserve. A provision to mitigate cost and/or schedule risk.

Contingency. An event or occurrence that could affect the execution of the project.

Management constraint should be analyzed first by options otherwise negotiate for change,

padding (increase without analysis) is not acceptable, but decreasing can be by re-estimating and eliminating unexpected risks during execution.

fP13

P14

6.6. Develop Schedule

Bar chart is a good tool for

showing progress/ status.

Schedule Network Analysis. identifying early and late start dates,

as well as early and late finish dates, for the uncompleted portions of project schedule.

Critical Path Method. estimate the minimum project duration and determine the

flexibility on the logical network paths within the schedule model.

Critical Chain Method. method that allows the project team to place buffers on any

project schedule path to account for limited resources.

Resource Optimization Techniques. adjust planned resource use.

Resource Leveling. start and finish dates are adjusted based on

resource constraints of balancing demand for resources

(can increase the critical path).

Resource Smoothing. limits (within total float, critical path doesn’t change).

Modeling Techniques. (What-If Scenario Analysis, Simulation- Monte Carlo probability=S,

etc.). GERT. is a conditional diagramming method allows probabilistic treatment (loops).

Schedule Compression. Start by earlier possible critical activities either:

Crashing. adding resources (add cost), or Fast Tracking. in parallel for at least a portion

of their duration (add risk/ rework).

Scheduling Tool. structural relationships, application of a scheduling method.

Time

Res

ou

rce

nee

d Actual, not leveled

Ideal

Leveled, realistic

29

Forward Pass. A critical path method technique for calculating the early start

and early finish dates. Backward Pass. calculating the late start and late finish

dates by working backward from the project end date.

Free Float. The amount of time that a schedule activity can be delayed

without delaying the early start of any successor.

Total Float. The amount of time that a schedule activity can be delayed or

extended from its early start date without delaying the project finish date or

violating a schedule constraint.

Schedule Baseline. the approved version of a schedule model. It is accepted

and approved by the appropriate stakeholders (may be FMs).

Project Schedule. An output of a schedule model that presents linked

activities with planned dates, durations, milestones, and resources.

Schedule Data. The collection of information for describing and controlling

the schedule. Data Date. A point in time the status of the project is recorded.

Performance Reviews. A technique that is used to measure, compare, and analyze

actual performance of work in progress on

the project against the baseline.

Schedule Forecasts. Estimates or predictionsof conditions and events in the project’s

future based on information and knowledge

available at the time the schedule is

calculated (Velocity. A measure of a team’s productivity rate, used capacity planning

approach to forecast future project work).

Path

convergence

Path

divergence

6.7. Control Schedule

P16

&17

In the initiation a rough order of

magnitude (ROM / ballpark estimate)

−25% to +75%. Later budget then

definitive accuracy -5% to +10%.

Direct costs. are directly attributable to the

object. In construction, the costs of

materials, labor, equipment, etc., while

Indirect cost or overheads cannot be

directly traced to a specific project may be

also time-related such as fringe benefits.

Fixed costs. Non-recurring almost indirect

costs of business expenses such as

facilities and setup costs. This is in contrast

to Variable costs, which are volume-

related (and are paid per quantity

produced).

Activity Cost Estimates. cost of the

schedule activity that includes the cost

for all resources required to perform and

complete the activity, including all cost

types.

Basis of Estimates. Supporting

documentation outlining the details used

such as assumptions, constraints, level

of detail, ranges, and confidence levels.

Control thresholds. Variance thresholds for monitoring cost/schedule performance,

amount of variation to be allowed before some action needs to be taken.

7.1. Plan Cost Management

Cost of quality. Cost of confor-

mance & of nonconformance.

Vendor bid analysis.

estimating based on analysis of

the responsive bids from

qualified vendors.

Analytical techniques. include financial techniques

can include payback period, return on investment

(ROI), (IRR), discounted cash flow, and (NPV).

7.2. Estimate Costs

P18

7.3. Determine Budget Cost Aggregation. Summing the

lower-level cost estimates for a

given cost control account.

Planning Package. Control

Account. A management control

point to earned value.

Reserve analysis. Budget reserve

analysis can establish both the

contingency reserves and the

management reserves.

Contingency Reserve. Allowance

for identified risks that are

accepted (known unknown).

Management Reserve. for

unforeseen work that is within

scope (unknown unknown).

Historical Relationships. that result

in parametric or analogous

estimates involve the use of project

characteristics (parameters) to

develop mathematical models to

predict total costs.

Funding Limit Reconciliation.

comparing the planned

expenditure against any limits.

Project Funding

Requirements. Forecast project costs

to be paid that are

derived from the cost

baseline for total or

periodic requirements,

including projected

expenditures plusanticipated liabilities.

Budget accuracy -10% to +25%.

Cost Baseline. The approvedversion of the time-phased

project budget, excluding

any management reserves.

P19

Performance Reviews. Variance analysis,

Trend analysis, Earned

value performance.

Cost Forecasts. Either a calculated EAC value

or a bottom-up EAC

value is documented

and communicated to

stakeholders.

7.4. Control Cost

(Factors)Fixed Formula Method. An earned

value method for assigning a specified

percentage of budget value for a work

package to the start milestone of the

work package with the remaining budget

value percentage assigned when the

work package is complete.

Weighted Milestone Method. An

earned value method that divides a work

package into segments, each ending

with an observable milestone with a

weighted value of achievement.

percentage range of acceptable

variances will tend to decrease

as more work is accomplished

fP19

34

(Forecast & TCPI)

- Prevention over inspection. Quality should be planned, designed, and built

into - not inspected into the project’s management or the project’s deliverables

(quality is planned-in, not inspected-in), Philip Crosby: zero defect.

- Continuous improvement. (Kaizen: Japanese means continuous

improvement) The PDCA (plan-do-check-act) cycle is the basis for quality

improvement as defined by Shewhart and modified by Deming. In addition,

quality improvement initiatives such as Total Quality Management (TQM), Six

Sigma, and Lean Six Sigma could improve the quality of the project’s

management as well as the quality of the project’s product. Commonly used

process improvement models include Malcolm Baldrige, Organizational Project

Management Maturity Model (OPM3®), and Capability Maturity Model

Integrated (CMMI®).

Just-in-Time. Means keeping only the inventory you need on hand when you

need it. So, instead of keeping a big inventory of parts sitting around. Some

companies have done away with warehouses all together and have production

lines take the parts directly off the trucks to do the work. If you’re working in a

Just-in-Time shop, quality is really important because there isn’t any extra

inventory to deal with mistakes/ rework.

Quality. The degree to which a

set of inherent characteristics

fulfills requirements, (ISO 9000)

[10]. (Customer satisfaction,

fitness for use & conformance to

requirements).

Grade. A category or rank used

to distinguish items that have the

same functional use but different

technical characteristics (e.g.,

“hammer”) but do not share the

same requirements for quality

(e.g., different hammers may

need to withstand different

amounts of force).

8- Quality Management

P20

8.1. Plan Quality Management Quality Management Plan. A

component of the project

management plan describes

how an organization’s quality

policies will be implemented

and how to meet project’s

quality requirements (specs.: conformance within tolerance).

Process Improvement Plan. It

details the steps for analyzing

processes to identify activities

that enhance value (process

boundaries- process owner,

configuration- graphical, metrics

& targets).

Quality Metrics. A description

of a project or product attribute

and how to measure it, include:

function points, mean time

between failure (MTBF), and

mean time to repair (MTTR).

Quality Checklists. A

structured tool used to verify

that a set of required steps.

Cost-Benefit Analysis. A financial analysis tool to determine the benefits

provided by a project against costs (marginal analysis: to determine level of

quality).

Cost of Quality. The cost of preventing mistakes is generally much less than the

cost of correcting mistakes when they are found by inspection or during usage.

Conformance Work. Work is done to compensate for imperfections that prevent

organizations from completing planned activities correctly as essential first-time

work, that are related to prevention and appraisal/ inspection (to avoid failure).

Nonconformance Work. Work is done to deal with the consequences of errors

and failures (because of failure - internal & external). In efficient quality

management systems, the amount of nonconformance work will approach zero.

37

Seven Basic Quality Tools. A standard toolkit for planning,

monitoring, and controlling the issues related to quality.

Fishbone diagram (1). Cause and Effect Diagram (Ishikawa).

A decomposition technique that helps trace an undesirable

effect back to its root cause, to simulate thinking & discuss.

Flowchart (2). The depiction in a diagram format of the

inputs, process actions, and outputs of one or more

processes.

Pareto Diagram (3). (Joseph Juran- 80/20: Heuristics) A

histogram, ordered by frequency of occurrence, that shows

how many results were generated by each identified cause.

Control Chart (4). A graphic display of process data over time

and against control limits. Run Chart. Trend analysis.

Control Limits. The area composed of standard deviations

on either side of the centerline or mean, any out of control is

assignable (special) cause and require investigation.

Specification Limits. customer’s requirements, may be

greater than or less than the area defined by the control limits.

Rule of seven. A process is considered out of control when 7

consecutive plot points are all above or all below the mean.

Accuracy. assessment of correctness (conformance to

target). Precision: dispersion of the data; standard deviation

(6 sigma (σ)= 99.9997%, 3 sigma (σ)=99.73%, 2 sigma (σ)=

95.46%, 1 sigma (σ)= 68.27%).

Checksheets (5). A tally sheet that can be used as a

checklist when gathering data.

Histogram (6). A special form of bar chart used to describe

the central tendency (group around mean, median or

mode), dispersion, and shape of a statistical distribution.

Scatter Diagram (7). A correlation chart (+ve or -ve) that

uses a regression line to explain or to predict how the

change in an independent variable will change a dependent

variable.

P21

Benchmarking. Benchmarking is the comparison of actual or planned practices, to identify best

practices, generate ideas for improvement, and provide a basis for measuring performance.

Design of Experiments. A statistical method for identifying which factors may

influence specific variables of a product or process under development or in production.

Statistical Sampling. Choosing part of a population of interest for inspection.

- Mutual exclusive: can’t happen at the same time like head and tail.

- Statistical independence: is the opposite of conditional probability. It states that the

probability of one event occurring does not affect the probability of another event occurring.

Additional Quality Planning Tools. They include, but are not limited to: brainstorming, force

field analysis (These are diagrams of the forces for and against change), nominal group

techniques and quality management and control tools.

8.2. Perform Quality Assurance Quality Audits. A quality audit is a

structured, independent process to

determine if project activities

comply with procedures/method

statement, policies and processes,

(by internal or external auditors).

Process Analysis. A process

analysis follows the steps outlined

in the process improvement plan to

identify needed improvements

(add-value).

39

Quality Management and Control Tools. They are a type of quality planning tools used to link and

sequence the activities identified.

Affinity Diagram (1). A group creativity technique that allows large numbers of ideas to be classified

into groups for review and analysis.

Process Decision Program Charts (2-PDPC). The PDPC is used to understand a goal in relation to the

steps for getting to the goal.

Tree Diagram (3). A systematic diagram of a decomposition hierarchy used to visualize as

parent-to-child relationships a systematic set of

rules.

Prioritization Matrices (4). A quality management planning tool used to identify key issues and

evaluate suitable alternatives to define a set of

implementation priorities.

Interrelationship Digraphs (5). A quality management planning tool, the interrelationship

digraphs provide a process for creative problem-

solving in moderately complex scenarios that

possess intertwined logical relationships.

Network Diagrams (6).

Matrix Diagrams (7). A quality management and control tool used to perform data analysis

within the organizational structure created in

the matrix. The matrix diagram seeks to show

the strength of relationships between factors,

causes, and objectives that exist between the

rows and columns that form the matrix.

P22

8.3. Control Quality

Perform Quality Control. Control Quality is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

Seven basic quality tools.

Statistical sampling./ Attribute sampling (the result either conforms or does not conform - pass/ fail basis)

and variables sampling (the result is rated on a continuous scale that measures the degree of conformity).

Inspection. Also known as reviews, peer reviews, audits, or walkthroughs.

Approved Change Requests Review. A review of the change requests to verify that these were implemented as approved.

Validated Changes. Any changed or repaired items are

inspected and will be either

accepted or rejected before

notification of the decision is

provided. Rejected items may

require rework.

Verified Deliverables. Deliverables that are result of

executing quality control process

to determine correctness.

The process of (5.5.

Validate Scope) to

be implemented

after this process.

P23

9.1. Plan Human Resource ManagementHuman Resource Management Plan. A component of the project management plan that

describes how the roles and

responsibilities, reporting

relationships, required skills, and

staff management will be

addressed and structured (Roles

and responsibilities - Project

organization charts - Staffing

management plan: source,

calendars/ histogram, release

plan, training, rewards,…).

Organization charts and position descriptions. Most of the formats

fall into one of three types hierarchical -OBS (1) Organizational

Breakdown Structure , text-oriented(2) (role of each stakeholder is

determined by project manager and stakeholder).The matrix

format(3). This also ensures that for any one task there is only one person accountable to avoid confusion of responsibility. One

example of a RAM (Responsibility Assignment Matrix) is a RACI.

RACI uses responsible, accountable, consult, and inform statuses to define the involvement of stakeholders in project activities.

Networking. Establishing connections and relationships with other

people from the same or other organizations.

Organizational Theory. provides information regarding the way in which people, teams, and organizational units behave, applicable

theories may recommend exercising a flexible leadership style.Levels of authority should match

responsibilities (not competencies).

P24

&25

9.2. Acquire Project Team

Pre-assignment. When project team members are selected in advance.

Negotiation. Project management team should effectively negotiate and influence others who are in a position to provide the required human resources (dedicated full time, or part time, or others).

Acquisition. Obtaining human and material resources necessary to perform project activities (from outsidesources). Acquisition implies a cost of resources, and is not necessarily financial.

Virtual Teams. groups of people who fulfill their roles with little or no time spent meeting face to face.

Project staff assignment. Specify which resources are assigned to

each activity. Project staff

assignments provide

documentation, which includes

the list of project team

members.

9.3. Develop Project Team Team Performance assessments. As

a result of conducting an evaluation of

the team’s overall performance/

effectiveness, the project management

team can identify the specific training,

coaching, mentoring, assistance, or

changes required to improve the

team’s performance.

fP25

Interpersonal Skills. Soft skills – are behavioral competencies that include proficiencies such as

communication skills, emotional intelligence, conflict resolution, negotiation, influence, team building, Building

trust, Active listening, Overcoming resistance to change and group facilitation (Leadership styles) .

Training. Training can be formal or informal. Examples of training methods include classroom, online,

computer-based, on-the-job training from project team member.

Ground Rules. Expectations regarding acceptable behavior by project team members.

Colocation. “Tight matrix,” (sometimes called “war room”) an organizational placement strategy where the

project team members are physically located close to one another in order to improve communication,

working relationships, and productivity.

Recognition and rewards. Generally, money is viewed as a tangible aspect of any reward system, but

intangible rewards could be equally or even more effective.

Personnel assessment tools. Personnel assessment tools give the project manager and the project team

insight into areas of strength and weakness (such as attitudinal surveys, specific assessments, structured

interviews, ability tests, and focus groups).

'Halo effect'. The halo effect is essentially a cognitive bias, it’s wrong behavior to promote every good one,

because you are good at one thing, you will be good at everything we ask you to do.

‘Perquisites (Perks)’ some employees receives special rewards e.g. parking spaces, corner offices, executive

dining.

‘Fringe Benefits’ Standard benefits formally given to all employees, such as insurance, education benefits

and profit benefits.

Team-building activities. As an ongoing process (The Tuckman Model: Forming. Independent. Storming.

Norming. Trust each other. Performing. Well-organized unit. Adjourning. The team completes the work and

released / moves on from the project).

44

Motivation theories:

Maslow’s Hierarchy of Needs says that people have needs, and until the lower ones

(Physiological (like food and warmth), Security - safety and job security,

Acceptance on the team) are satisfied they won’t even begin to think about the higher

ones (Esteem, Self-actualization (fulfilling your full potential, and making a

contribution)).

Herzberg’s Motivation-Hygiene Theory What Herzberg figured out was that you need

things like good working conditions, a satisfying personal life, and good relations with

your boss and coworkers - stuff he called “hygiene factors.” They don’t motivate you, but

you need them before you can be motivated. Until you have them, you don’t really care

about “motivation factors” like achievement, recognition, personal growth, or career

advancement.

McGregor’s Theory X and Theory Y McGregor tells us that there are two kinds of

managers: ones who assume that everyone on the team is selfish and unmotivated, and

ones who trust their team to do a good job. He calls the kind of manager who distrusts the

team a “Theory X” manager, and the kind who trusts them a “Theory Y” manager,

(Theory Z focused on increasing employee loyalty to the company).

McClelland’s Achievement Theory says that people need to be motivated. Achievement

is when someone performs well and is recognized for it. Power means he or she has a lot

of control or influence in the company. And someone feels a strong sense of affiliation

from being a part of a working team and having good relationships with coworkers.

Expectancy Theory says that you need to give people an expectation of a reward in order

to motivate them—but this works only if that award is achievable. If everyone knows the

award is either worthless or impossible to achieve, it will actually demotivate them!

P26

9.4. Manage Project Team

Issue Log. An issue log can be used to document and monitor who is responsible for resolving specific

issues by a target date (unresolved issues can be a major source of conflict and project delays).

Performance Reports. See work performance reports (Integration – Control).

Observation and Conversation. Observation and conversation are used to stay in touch with the work and attitudes of project team members.

Project Performance Appraisals. Objectives for conducting performance appraisals can include clarification of roles and responsibilities, constructive feedback to team members, discovery of unknown or

unresolved issues, development of individual training plans, and the establishment of specific future goals.

Interpersonal Skills. (Leadership: team with common goal– Influencing: sharing power and relying –

Decision making: command, consultation, consensus, and coin flip (random) - Trust building - Political and cultural awareness: communicate directive, collaborative, logical, explorer – Coaching: enhancing their

skills to can do) - Management skills, kinds of power (Formal: Legitimate, Reward, Penalty/ Punishment/

coercive: the worst – Expert: the best – Referent: the charisma, admire you and loyal to you).

fP26

Collaborate/Problem Solve (Confronting). Incorporating multiple viewpoints and insights

from differing perspectives; requires a

cooperative attitude and open dialogue

that typically leads to consensus and

commitment (win / win).

Compromise/Reconcile. Searching for solutions that bring some degree of

satisfaction to all parties in order to

temporarily or partially resolve the conflict

(lose / lose).

Smooth/Accommodate. Emphasizing areas of agreement rather than areas of

difference; conceding one’s position to the

needs of others to maintain harmony and

relationships.

Withdraw/Avoid. Retreating from an actual or potential conflict situation; postponing the

issue to be better prepared or to be resolved

by others.

Force/Direct. Pushing one’s viewpoint at the expense of others; offering only win-lose

solutions, usually enforced through a power

position to resolve an emergency.

Conflict Management. Handling, controlling, and guiding a conflictual situation to achieve a

resolution – by team themselves then their boss

specially in the social responsibility/ law/ ethics,

(Major reasons of conflicts in order: schedules,

priorities, resources – then - Technical opinions,

Cost, Personalities).

Decision Making Model: Problem Definition- Problem Solution

Generation- Ideas to Action- Solution Action Planning- Solution

Evaluation Planning- Evaluation of the Outcome and Process.

Factors that affect the decision style: time constraints, trust,

quality, and acceptance.

- Internal (within the project) and external (customer,

vendors, other projects, organizations, the public); -Vertical

(up and down the organization) and horizontal (with peers).

- Paralingual communication is the tone and pitch of your voice (55% of the message transmitted comes through body language, 38% of the message

transmitted comes through vocal inflection (paralingual), Only 7% of your

message consists of the actual words that you use).

- Written and oral/ verbal (voice inflections – 1st warning informal) and

nonverbal (body language).

- Formal (reports, minutes, briefings, 2nd warning) and informal (emails, memos,

ad-hoc discussions); - Official (newsletters, annual report) and unofficial (off the record communications).

Project

Communications Management includes the processes that are

required to ensure

timely and

appropriate planning,

collection, creation,

distribution, storage, retrieval,

management,

control, monitoring,

and the ultimate

disposition of project

information.

90% of a project

manager’s job is

communication.

10- Communication Management

P27

10.1. Plan Communications ManagementCommunications Management Plan. A component of the project, program, or portfolio

management plan that

describes how information will

be effectively administered.

Communication Requirements Analysis. An analytical technique to determine the needs of the project stakeholders. The number of potential

communication channels n*(n – 1)/2, n: no. of stakeholders.

Communication Technology. Specific tools, systems, computer programs, etc., used to transfer information. Factors that can affect the choice

include: (Urgency of the need for information. Availability of technology.

Ease of Use. Project environment. Sensitivity & confidentiality of the info.).

Communication Methods. A systematic procedure, technique, classified : (interactive is the most efficient - meetings, phone calls, instant

messaging & video conferencing), (push to specific recipients - letters,

memos, reports, emails, faxes, voice mails, blogs, press releases), (pull for

very large volumes of information, or for very large audiences- intranet

sites, e-learning, lessons learned databases, knowledge repositories).

Meetings. Most project meetings are more formal with a prearranged time, place, and agenda.

Communication Models.

Schematic to represent (sender

encode, transmit Message:

medium-noise, signal

(acknowledge), receiver

decode, then feedback/

response vice versa). the sender

is responsible for the transmission

of the message clear and

complete. The receiver ensuring

that the information is received.

P28&

29

10.2. Manage Communications

Manage Communications. The process of creating, collecting, distributing, and the ultimate disposition of

project information. (Presentation techniques. Awareness of the impact of body language and design of visual

aids. Facilitation techniques. Building consensus and overcoming obstacles. Listening techniques. Listening

actively (acknowledging, clarifying, and confirming understanding, and removal of barriers/blockers).

Information Management Systems. Facilities, processes, and procedures used to collect, store, and distribute

information between producers and consumers of information in physical or electronic format.

Project Communications. Project communications may

include but are not limited to:

performance reports,

deliverables status, schedule

progress, and cost incurred.

10.3. Control Communications

Issue Log. A project document used to

document and monitor elements under

discussion or in dispute –unresolved may

cause conflict/ delay- between project

stakeholders (who is responsible for

resolving specific issues by a target date).

P30

13.1. Identify Stakeholders - Initiating

Analytical Techniques. The current engagement level of all stakeholders

needs to be compared to the planned engagement levels required for

successful project completion. The engagement level can be classified :

- Unaware. Unaware of project and potential impacts.

- Resistant. Aware of project and potential impacts and resistant to change.

- Neutral. Aware of project yet neither supportive nor resistant.

- Supportive. Aware of project and potential impacts and

supportive to change.

- Leading. Aware of project and potential impacts and

actively engaged in ensuring the project is a success.

* The current engagement can be documented using

Stakeholders Engagement Assessment Matrix. The project

team needs to identify the desired engagement level

based on available information.

Stakeholder Management Plan.

The stakeholder management

plan is a subsidiary plan of the

project management plan that

defines the processes,

procedures, tools, and techniques

/ communication requirements to

effectively engage stakeholders

in project decisions and

execution based on the analysis

of their needs, interests, and

potential impact. should be

aware of the sensitive nature and

take appropriate precautions

(may affect schedule).

13.2. Plan Stakeholder Management

P31

&32

13.3. Manage Stakeholder EngagementManage Stakeholder Engagement.

communicating and working with

stakeholders to meet their needs/

expectations (expected result may

happen), satisfaction, address issues

as they occur, and foster appropriate

stakeholder engagement throughout

the project life cycle.

Change Log. A comprehensive list of

changes made. This typically includes

dates of the change and impacts in

terms of time, cost, and risk.

13.4. Control Stakeholder Engagement

Control Stakeholder

Engagement. The process of

monitoring overall project

stakeholder relationships and

adjusting strategies and plans

for engaging stakeholders.

Egotistical refers to being self-centered. Enlightened self interest refers to

persons who act to further the interests of others (to which they belong),

ultimately serving their own self-interest. Ethnocentric means tending to look

at the world primarily from the perspective of one's own culture.

P33

12.1. Plan Procurement Management

Procurement Management Plan. project or program management plan that

describes how acquiring goods and services from outside (potential sellers).

Procurement Statement of Work. Describes the procurement item in complete detail

to allow prospective sellers to determine if they are capable of providing.

Procurement Documents. The documents in bid and proposal include: buyer’s

Invitation for Bid (IFB), Invitation for Negotiations, Request for Information (RFI),

Request for Quotation (RFQ), Request for Proposal (RFP), and seller’s responses.

Source Selection Criteria. required attributes of seller, objective or subjective (Risk,

Capability/ Capacity, Warranty, Past performance,..) may use screening or weighting

systems- (sole source the only provider available, single source a preferred vendor).

Make-or-Buy Decisions. Strategic decisions made regarding the external purchase or

internal manufacture of a product (depends on the duration of use).

Organizational Process

Assets. Formal

procurement policies,

procedures, and guidelines

(centralized or de-

centralized). All legal

contractual relationships

(as shown in the next

slide).

Make-or-Buy Analysis.

The process of gathering

and organizing data about

product requirements and

analyzing them against

available alternatives

including the purchase or

internal manufacture of the

product (consider risk).

Market Research. The

process of gathering

information at conferences,

online reviews, and a

variety of sources to

identify market capabilities.

This process iteration

takes place after

collect req., define

scope and before

create WBS.

fP33

Legal contractual relationships (mutually binding agreement) generally fall into:

Fixed-Price Contracts. (1) An agreement that sets the fee that will be paid for a defined scope of work regardless of

the cost or effort to deliver it (Bid: IFB, much risk for seller).

Firm-Fixed-Price Contract (FFP). A type of fixed price contract where the buyer pays the seller a set amount (as

defined by the contract), regardless of the seller’s costs.

Fixed Price Incentive Fee Contract (FPIF). A type of contract where the buyer pays the seller a set amount (as

defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria.

(Point of Total Assumption: used in the event of cost overrun, is the point at which the seller assumes all additional

costs for delivering a product of the project - PTA = ((Ceiling Price -Total Price) / Buyer's Share Ratio)) + Target Cost);

the ‘total cost’, ‘estimated cost’, or ‘target cost’ (are synonymous), represents the contracted cost without the profit.

Fixed Price with Economic Price Adjustment Contracts (FP-EPA). a special provision allowing for predefined final

adjustments to the contract price due to changed conditions, such as inflation, or cost change for specific commodities.

Cost-Reimbursable Contract. (2) A type of contract involving payment to the seller for the seller’s actual costs, plus a

fee typically representing seller’s profit, this require buyer to audit invoices carefully (Proposal: RFP, risk for buyer).

Cost Plus Fixed Fee Contract (CPFF). A type of cost-reimbursable contract where the buyer reimburses the seller for

the seller’s allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).

Cost Plus Incentive Fee Contract (CPIF). the buyer reimburses the seller for the seller’s allowable costs (are defined

by the contract), and the seller earns its profit if it meets defined performance criteria with a sharing ratio – buyer/seller.

Cost Plus Award Fee Contracts (CPAF). A category of contract that involves payments to the seller for all legitimate

actual costs incurred for completed work, plus an award fee (+ve only) representing seller profit with ceiling/ max.

Time and Material Contract (T&M). (3) a hybrid contractual arrangement containing aspects of both cost-reimbursable

and fixed-price contracts. resemble CR type in that they have no definitive end, because the full value of the

arrangement is not defined. Thus, can grow in contract value as if they were CR type. Conversely, can also resemble

FP type. For example, the unit rates are preset by the buyer and seller (Quotation: RFQ, risk for buyer).

fP33

Buyer Vs Seller

Employer Contractor

Contractor Subcontractor

Purchaser Supplier

Pays money Offers service

fP33

The project manager knows the

project risks. PM needs to make sure provisions are included in the

contract to address these risks.

Contract priority of documents:

-Agreement -Particular Conditions

-General Conditions -Special Specs.

-General Specs. -Drawings -B.O.Q.

Words are binding more than no.s

Force majeure = EOT, Extension of Time

P34

12.2. Conduct Procurements

Seller Proposals. Formal responses from sellers to a request for proposal or other procurement document specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will

do for the requesting organization that, if accepted, would bind the seller to perform the resulting

agreement. Buyer. The acquirer of products, services, or results for an organization. Seller. A provider or

supplier of products, services, or results to an organization. Contract supersede prior agreements.

Bidder Conference. The meetings with prospective sellers prior to the preparation of a bid or proposal to ensure all prospective vendors have a clear and common understanding of the procurement. Also

known as contractor conferences, vendor conferences, or pre-bid conferences.

Proposal Evaluation Techniques. The process of reviewing proposals provided by suppliers to support contract award decisions (as per selection criteria: shortlisting, screening system,…).

Selected Sellers. The sellers selected to provide a

contracted set.

Agreements. the initial intentions of a project after

(LOI: letter of intent) if used.

This can take the form of a

contract, memorandum of

understanding (MOU),

letters of agreement, verbal

agreements, a purchase

order, email, etc. (include

terms and conditions).

fP34

Independent Estimates. A process of using a third party to obtain and analyze information to support

prediction of cost, schedule, or other items.

Advertising. The process of calling public attention to a project or effort.

Analytical Techniques. By examining past performance information, teams may identify areas that may have

more risk and that need to be monitored closely to ensure success of the project.

Procurement Negotiations. clarify the structure, requirements, and other terms of the purchases so that

mutual agreement can be reached prior to signing the contract. Final contract language reflects all

agreements reached (in order: performance, scope, schedule, price). You may refer to any of these tactics:

• Fait Accompli - Standard contract terms that are nonnegotiable. (In reality, anything in the contract is

negotiable although your adversary will never admit it).

• Deadline - Make it clear that this is the time by which they must do. As the deadline approaches, increase

the emotional pressure, talking more about what will happen if the deadline is missed.

• Good guy /bad guy - One person acts in an aggressive and pushy way, making unreasonable demands

and requiring compliance. The other person acts in kind and friendly, asking nicely - and getting compliance.

• Missing man - The person who can actually make the decision is missing from the negotiation. The

negotiator can then negotiate for a lower price or more favorable terms which they claim they can agree to.

• Limited authority - Refusing to give in on items because you have not been given authority to do what is

being requested.

• Fair and reasonable - You can engage the other person by asking them 'what is fair'. You can also bring

something into the negotiation that is, by definition, fair. You can also reject criteria from the adversary on the

grounds that it is not fair.

• Unreasonable - Stating that the other side is making unreasonable demands of you in the negotiation.

• Delay - Stretching out the negotiation, especially at critical moments.

• Attack - A direct attack on your integrity, trustworthiness, competence, or other such bullying bombast

designed to force compliance out of you.

P35

12.3. Control Procurements

Contract Change Control System. The system used to collect, track, adjudicate, and communicate changes

(CCB might review and approve, but only the procurement manager has the authority to sign a change).

Procurement Performance Reviews. A structured review of the seller’s progress to deliver project scope and

quality, within cost and on schedule, as compared to the contract.

Inspections and Audits. A process to observe performance of contracted work or a promised product against

agreed-upon requirements, any breach happens (Privity: no contractual relationship between client and

subcontractors, so he has to deal with him through the main contractor).

Performance Reporting. See work performance reports (Integration – Control).

Payment Systems. The system used to provide and track supplier’s invoices and payments.

Claims Administration. The process of processing, adjudicating, and communicating contract claims (contested

or potential constructive changes: requested change can’t reach agreement between buyer and seller).

Records Management System. A specific set of processes, related control functions, and tools that are

consolidated and combined to record and retain information about the project.

Organizational Process

Assets Updates. (Correspondence,

Payment schedules and

requests, Seller

performance

evaluation

documentation).

P36

12.4. Close Procurements

Close Procurements. The process of completing each project procurement (completion or termination), also involves administrative activities such as finalizing open claims, updating records to reflect final results,

and archiving such information for future use.

Procurement Audits. The review of contracts and contracting processes for completeness, accuracy, and effectiveness (audits are used to improve processes and learn from success).

Procurement Negotiations. . the final equitable settlement of all outstanding issues, claims, and disputes by negotiation is preferred. Otherwise some form of alternative dispute resolution (ADR) including mediation

or arbitration may be explored. When all else fails, litigation in courts is the least desirable option.

Records Management System. by the project manager to manage, archive contract and procurement documentation , correspondence and records.

Closed Procurements. Project contracts or other procurement agreements that have been formally acknowledged by the proper authorizing agent as being finalized and signed off.

Organizational Process Assets Updates. (Procurement file, Deliverable acceptance, Lessons learned documentation).

Project Risk Management. Project Risk Management includes the processes of conducting risk management planning, identification,

analysis, response planning, and controlling risk on a project.

Risk Appetite. Attitude. The degree of uncertainty an entity is willing to take on, in anticipation of a reward (risk seeker vs risk averse).

Threshold. A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications.

Crossing the threshold should trigger some action, such as generating

an exception report.

Risk Threshold. Measure of the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk

threshold, the organization will accept the risk. Above that risk threshold,

the organization will not tolerate the risk.

Risk Tolerance. The degree, amount, or volume of risk that an organization or individual will withstand.

Risk. An uncertain event or condition that, if it occurs,

has a positive or negative

effect on one or more

project objectives

(Business risk: gain or loss,

Pure risk: loss only “i.e., fire, theft, etc.”).

Threat. A risk that would have a negative effect on

one or more project

objectives.

Opportunity. A risk that would have a positive

effect on one or more

project objectives.

11- Risk Management

P37

11.1. Plan Risk ManagementRisk Management Plan. A component of the project,

program, or portfolio

management plan that describes

how risk management activities

will be structured and performed.

Risk Breakdown Structure (RBS). A hierarchical representation of risks

according to their risk categories.

Risk Category. A group of

potential causes of risk.

Probability and Impact.

A risk rating

matrix is

developed

by a

department

or a

company

should be

standardize

d between

projects.

P38

11.2. Identify Risks

Documentation Reviews. The process of gathering a corpus of information and

reviewing it to determine accuracy and completeness.

Information Gathering Techniques. Repeatable processes used to assemble and

organize data across a spectrum of sources (Brainstorming, Delphi Technique,

Interviewing, Root Cause Analysis).

Checklist Analysis. checklists are developed based on historical information,

knowledge accumulated from previous projects, and other sources of information.

Assumptions Analysis. A technique that explores the accuracy of assumptions and

identifies risks to the project from inaccuracy, inconsistency, or incompleteness of

assumptions.

Diagramming Techniques. Approaches to presenting information with logical

linkages that aid in understanding (Cause-and-effect diagrams, System or process

flow charts, Influence diagrams: graphical representations of situations showing causal

influences, time ordering of events, and other relationships among variables).

SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats of an

organization, project, or option.

Risk Register. A document

in which the results of risk

analysis and risk response

planning are recorded

(POTENTIAL responses).

P39

11.3. Perform Qualitative Risk Analysis

Risk Probability and Impact Assessment. Risks with low ratings of probability and impactwill be included within the risk register as part of the watch list for future monitoring.

Probability and Impact Matrix. A grid for mapping the probability of each risk occurrence and its impact

on project objectives if occurs. That leads to rating (risk score) the risks as low, moderate, or high priority.

Perform Qualitative Risk

Analysis. The process of prioritizing (rank) risks for

further analysis or action by

assessing and combining their

probability of occurrence and

impact.

Risk Data Quality Assessment. Technique to evaluate the degree to which the data about risks is useful for risk management. It

involves examining accuracy, quality, reliability, and integrity.

Risk Categorization. Organization by (e.g., using the RBS), the area affected (e.g., WBS), or other useful category, to determine

the areas most exposed to the effects of uncertainty.

Risk Urgency Assessment. Review and determination of the timing of actions that may need to occur to give a final risk

severity rating.

watch

list

P40Perform Quantitative Risk

Analysis. The process of numerically analyzing the

effect of identified risks on

overall project objectives.

Modeling and simulation. A project simulation uses a model that translates

the specified detailed uncertainties of the project into their potential impact

on project objectives, typically performed using: Monte Carlo Simulation. A

process which generates hundreds or thousands of probable performance

outcomes based on probability distributions for cost and schedule on

individual tasks. The outcomes are then used to generate a probability

distribution for the project as a whole, demonstrates cumulative distribution,

otherwise known as an 'S' curve.

Data Gathering and Representation Techniques. used to collect, organize, and present information and data

(Interviewing, Probability Distribution: continuous probability distributions represent the uncertainty like -beta or

triangle distribution, uniform distribution when most likely is not obvious in early stage, discrete distribution for

possibility in modeling such as in tree analysis).

Quantitative Risk Analysis and Modeling Techniques. Commonly used both event-oriented and project-oriented

analysis approaches (Sensitivity analysis, EMV analysis, Modeling and Simulation).

11.4. Perform Quantitative Risk Analysis

fP40

Expected Monetary Value (EMV) Analysis. A statistical technique that calculates the

average outcome when the

future includes scenarios that

may or may not happen. A

common use of this technique

is within decision tree analysis.

Sensitivity Analysis. A quantitative risk analysis and modeling technique used

to help determine which risks have the

most potential impact. The typical

display of results is in form of a tornado

diagram.

P41

11.5. Plan Risk Responses

Trigger Condition. (Detectability) An event or situation that indicates that a risk is aboutto occur, symptoms, and warning signs of a risk occurrence.

Residual Risk. A risk that remains after risk responses have been implemented (accept).

-Secondary Risks. arise as a direct result of implementing a risk response to be analyzed.

Strategies for negative risks or threats (4). Avoid. eliminate the threat or protect from its impact. Mitigate.

reduce the probability of occurrence or impact. Transfer/ deflect/ allocate. shifts the impact of a threat

to a third party, together with ownership (insurance). Accept. not take any action unless the risk occurs.

Strategies for positive risks or opportunity (4). Exploit. for risks with positive impacts where the organization

wishes to ensure that the opportunity is realized. Enhance. to increase the probability and/or the positive

impacts of an opportunity. Share. involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project (joint ventures).

Accept. is being willing to take advantage of the opportunity if it arises, but not actively pursuing it.

Contingent Response Strategies. Responses provided may be used in the event that a specific trigger

occurs. Fallback Plan. (Plan B) Fallback plans include an alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes.

Plan Risk Responses. The process of developing

options and actions to

enhance opportunities and

to reduce threats to project

objectives (Risk owner).Response plan will cause final

reserves include values of

actively accepted risks. Start planning

processes

Iterations after

risk planning

fP41

P42

11.6. Control Risks

Risk Reassessment. the identification of new risks, reassessment of current risks (unexpected impact/ additional

responses), closing of outdated and not repetitive risks, and look at the risks impact on the overall project.

Workaround. A response to a threat that has occurred, for which a prior response had not been planned or was

not effective, may be passive acceptance (trick: risk discovered and not occurred qualify first/ analyze/ assess).

Risk Audits. Examination and documentation of the effectiveness of risk responses in dealing with identified risks

and their root causes, as well as the effectiveness of the risk management process.

Variance and trend analysis. variance analysis to compare the planned results to the actual results, trends in the

project’s execution should be reviewed using performance information.

Technical performance measurement.

Reserve Analysis. An analytical technique to determine the essential features and relationships of components

in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or

funds for a project.

Meetings. Risk management should be an agenda item at status meetings to exchange project information.

Control Risks. The process of

implementing risk response

plans, tracking identified

risks, monitoring residual

risks, identifying new risks,

and evaluating risk process

effectiveness throughout

the project.It’s a good option to revisit or

reevaluate any area of lack /

variance to be revised for

minimizing the future impacts.

No OPA

input in

11.5,11.6

P43

4.1. Develop Charter - Initiating

Project Management Plan. The document that describes how the project will be executed monitored, and

controlled. The project management plan’s content varies

depending upon the application area and complexity of

the project. It is developed through a series of integrated

processes extending through project closure. This process

results in a project management plan that is progressively

elaborated by updates, and controlled and approved

through the Perform Integrated Change Control process

(no need to submit change request during

planning), contains all baselines (performance

measurement baselines) and management plans.

4.2. Develop Project Management PlanDevelop Project Management

Plan. The process of defining, preparing, and coordinating all

subsidiary plans and integrating

them into a comprehensive

project management plan.

PM is integrator, focus the interfaces, and not to delegate this role.

Most project documents are created by

the project manager for using during the

project, and do not require outside

approval for changes.

Kickoff

Meeting

P44

4.3. Direct and Manage Project Work

Approved Change Request. A change request that has been processed through the integrated change control process and approved.

Project Management Information System. An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used to

support all aspects of the project from initiating through closing, and can include both manual and

automated systems. Automated gathering and reporting on key performance indicators (KPI) can be

part of this system.

Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

Work Performance Data. The raw observations and measurements identified during activities being performed to carry out the project work.

Change requests. (Corrective Action, Preventive Action, Defect Repair, Scope change).

Direct and Manage Project Work. The process of leading and performing the work

defined in the project

management plan and

implementing approved

changes to achieve the

project’s objectives.

P45

4.4. Monitor and Control Project Work

Analytical Techniques. Analytical techniques are applied in project management to forecast potential outcomes based on possible variations of project or environmental variables and their relationships with

other variables. Examples of analytical techniques used in projects are:

- Regression analysis, Grouping methods, Causal analysis, Root cause analysis, Forecasting methods (e.g.,

time series, scenario building, simulation, etc.), Failure mode and effect analysis (FMEA), Fault tree

analysis (FTA), Reserve analysis, Trend analysis, Earned value management, and Variance analysis.

Work Performance Reports. The physical or electronic representation of work performance information

compiled in project documents,(and includes the following types of reporting: -Status reports: where the

project now stands -Progress Reports: what is been accomplished to date -Variance report: compares

actuals to performance baselines -Trend report: measures performance over time to determine if

performance is improving, deteriorating, or staying about the same -Earned value reports: reports on

schedule, budget, and scope to assess project progress -Forecasts: predictions of future performance of schedule, budget, scope, risks, quality, and other)

Manage Commum. & HR.

Control Procurement & Risk.

P46

4.5. Perform Integrated Change Control

Notes:

PM role is to influence the factors that affect the change, by determining the sources and fixing the root causes.Sponsor should help in control and preventing unnecessary changes (e.g. scope change not within the charter).

Approved Change Request. A change request that has been

processed through the

integrated change control

process and approved.

Change Log. A comprehensive list of changes made during the

project. This typically includes

dates of the change and

impacts on project constraints.

fP46

Change Control Board (CCB). A formally chartered group responsible for

reviewing, evaluating, approving, delaying, or rejecting Requested Change/s to the project, and for recording and communicating such decisions. Customer or

sponsor approval may be required after CCB approval, unless they are part of

the CCB. Some of the configuration management activities included in the

Perform Integrated Change Control process are as follows: Configuration identification, status accounting, verification and audit.

PM to: Understand - Study the

cause & effect/Impact -

Proactively propose action - CCB -

Sponsor

Change Control Tools. Manual or automated tools to assist with change and/or configuration management. At a minimum, the tools should support the activities of the

CCB.

Configuration Management System. A subsystem of the overall project management system. It is a collection of formal documented procedures used to apply technical and

administrative direction and surveillance to:

identify and document the functional and physical

characteristics of a product, result, service, or

component; control any changes to such

characteristics; record and report each change

and its implementation status; and support

the audit of the products, results, or components to

verify conformance to requirements.

It includes the documentation, tracking systems, and defined approval levels for authorizing and controlling changes.

P47

4.6. Close Project or Phase

Close Project or Phase. The process of finalizing all activities across all of the Project Management Process Groups to formally complete a project or phase.

Final product, service or result transition. This output refers to the transition of the final product, service, or result that the project was authorized to produce (or in

the case of phase closure, the intermediate product, service, or result of that

phase).

Organizational Process Assets Updates. Include deliverables such as: Project or phase closure documents/ final report of success, Historical information, lessons

learned such as improved process, Project files/ archives.

All procurements

must be closed

before the project as

a whole is closed.

E1

14- PMI Code of Ethics and

Professional Conduct

RESPONSIBILITY2.1 Description of Responsibility: Responsibility is our duty to take ownership for the decisions we make or

fail to make, the actions we take or fail to take, and the consequences that result.

2.2 Responsibility: Aspirational Standards / As practitioners in the global project management community:

2.2.1 We make decisions and take actions based on the best interests of society, public safety, and the

environment. 2.2.5 We protect proprietary or confidential information that has been entrusted to us.

2.3 Responsibility: Mandatory Standards / Regulations and Legal Requirements

2.3.2 We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by

the conduct. Reporting is not easy and we recognize that it may have negative consequences. Comment:

These provisions have several implications. Specifically, we do not engage in any illegal behavior, including but

not limited to: theft, fraud, corruption, embezzlement, or bribery. Further, we do not take or abuse the property of

others, including intellectual property, nor do we engage in slander or libel. As practitioners and representatives

of our profession, we do not condone or assist others in engaging in illegal behavior (Only government officials

can collect routine government fees).

Ethics Complaints: 2.3.3 We bring violations of this Code to the attention of the appropriate body for

resolution. 2.3.4 We only file ethics complaints when they are substantiated by facts. Comment: These

provisions have several implications. We cooperate with PMI concerning ethics violations and the collection of

related information whether we are a complainant or a respondent. 2.3.5 We pursue disciplinary action against

an individual who retaliates against a person raising ethics concerns.

RESPONSIBILITY

RESPECT

FAIRNESS HONESTY

Ethical Decision-

Making

E2

FAIRNESS4.1 Description of Fairness: Fairness is our duty to make decisions and act impartially and objectively. Our

conduct must be free from competing self-interest, prejudice, and favoritism.

4.2 Fairness: Aspirational Standards/ As practitioners in the global project management community:

4.2.1 We demonstrate transparency in our decision-making process. 4.2.2 We constantly reexamine our

impartiality and objectivity, taking corrective action as appropriate. Comment: Research with practitioners

indicated that the subject of conflicts of interest is one of the most challenging faced by our profession. One of

the biggest problems practitioners report is not recognizing when we have conflicted loyalties and recognizing.

We as practitioners must proactively search for potential conflicts and insisting that they be resolved (in the

legitimate interests of the customer).

4.2.3 We provide equal access to information to those who are authorized to have that information.

4.2.4 We make opportunities equally available to qualified candidates. Comment: An implication of these

provisions is, in contracting arrangement, we provide equal access to information during the bidding process.

4.3 Fairness: Mandatory Standards/ Conflict of Interest Situations

4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.

4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in the

decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full

disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the

consent of the stakeholders to proceed.

Favoritism and Discrimination: 4.3.3 We do not hire or fire, reward or punish, or award or deny contracts

based on personal considerations, including but not limited to, favoritism, nepotism, or bribery. 4.3.4 We do not

discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or

sexual orientation. 4.3.5 We apply the rules of the organization (employer, Project Management Institute, or

other group) without favoritism or prejudice.

E3

HONESTY

5.1 Description of Honesty: Honesty is our duty to understand the truth and act in a truthful manner both in

our communications and in our conduct.

5.2 Honesty: Aspirational Standards/ As practitioners in the global project management community:

5.2.1 We earnestly seek to understand the truth.

5.2.2 We are truthful in our communications and in our conduct.

5.2.3 We provide accurate information in a timely manner. Comment: An implication of these provisions,

includes having the courage to share bad news even when it may be poorly received. Also, when outcomes are

negative, we avoid burying information or shifting blame to others. When outcomes are positive, we avoid taking

credit for the achievements of others. These provisions reinforce our commitment to be both honest and

responsible.

5.2.4 We make commitments and promises, implied or explicit, in good faith.

5.2.5 We strive to create an environment in which others feel safe to tell the truth.

5.3 Honesty: Mandatory Standards/ As practitioners in the global project management community, we require

the following of ourselves and our fellow practitioners:

5.3.1 We do not engage in or condone behavior that is designed to deceive others, including but not limited to,

making misleading or false statements, stating half-truths, providing information out of context or withholding

information that, if known, would render our statements as misleading or incomplete.

5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.

Comment: The aspirational standards exhort us to be truthful. Half-truths and non-disclosures intended to

mislead stakeholders are as unprofessional as affirmatively making misrepresentations. We develop credibility

by providing complete and accurate information.

E4

RESPECT3.1 Description of Respect: Respect is our duty to show a high regard for ourselves,

others, and the resources entrusted to us. Resources entrusted to us may include

people, money, reputation, the safety of others, and natural or environmental resources.

An environment of respect engenders trust, confidence, and performance excellence by

fostering mutual cooperation.

3.2 Respect: Aspirational Standards/ As practitioners in the global project

management community:

3.2.1 We inform ourselves about the norms and customs of others and avoid engaging

in behaviors they might consider disrespectful.

3.2.2 We listen to others’ points of view, seeking to understand them.

3.2.3 We approach directly those persons with whom we have a conflict or

disagreement.

3.2.4 We conduct ourselves in a professional manner, even when it is not reciprocated.

Comment: An implication of these provisions is that we avoid engaging in gossip and

avoid making negative remarks to undermine another person’s reputation. We also have

a duty under this Code to confront others who engage in these types of behaviors.

3.3 Respect: Mandatory Standards/ As practitioners in the global project management

community, we require the following of ourselves and our fellow practitioners:

3.3.1 We negotiate in good faith.

3.3.2 We do not exercise the power of our expertise or position to influence the

decisions or actions of others in order to benefit personally at their expense.

3.3.3 We do not act in an abusive manner toward others.

3.3.4 We respect the property rights of others.

PMI Volunteer. A person

who participates in PMI-

sponsored activities,

whether a member of

the Project

Management Institute

or not.

January 2016 - Exam change (25%)

Role Delineation Study

every 3-5 years

Thank You

Don’t Hesitate to contact….

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