ProfessionalResponsibility• The PMP Code of Professional Conduct is theauthoritative guide on how the PMP shouldact as a professional, and how the PMP shouldbehave with customers and the public ingeneral.• The PMP exam candidate will be tested ontheir knowledge of the PMP Code ofProfessional Conduct.
ProfessionalResponsibilityThe five areas of professional responsibilityconsist of the following:• Ensuring integrity• Contributing to the knowledge base• Applying professional knowledge• Balancing stakeholder interests• Respecting differences
Responsibilities to theprofession• The PMP/ CAPM must adhere to a high set ofprinciples, rules, and policies.• This includes the organizational rules and policies,the certification process, and the advancement ofthe profession.• On the exam, always choose the answer which bestsupports the PMP profession and the higher set ofprinciples the candidate is expected to adhere to.
Balancing Stakeholdersneeds• Balance Stakeholder’s Objectives– Understand the various competing stakeholders’interests and needs– Comprehend the conflict resolution techniquesuseful in handling differing objectives– Be able to resolve conflicts in a fair manner– Exercise negotiation skills based on properinformation
Complying with Rules andPoliciesHonesty is expected in all areas regarding the PMPexamination process including:• Exam applications must be honest and reflect actualeducation and work experience.• Test items, questions, answers, and scenarios are not tobe shared with other PMP/ CAPM candidates.• PMP renewal information must reflect an honest• assessment of education and experience.• Continuing education information must be honest andaccurate; continuing education reporting must reflectactual courses completed
Applying Honesty to theProfession• The candidate is expected, at all times, toprovide honesty in experiencedocumentation, the advertisement of skills,and the performance of services.• The PMP must, of course, adhere to andabide by all applicable laws governing theproject work. In addition, the ethicalstandards within the trade or industry shouldalso be adhered to.
Advancing the Profession• The PMP/ CAPM must respect and recognizethe intellectual work and property of others.• The PMP/ CAPM can’t claim others’ work astheir own.• He/ She must give credit where credit is due.• Work, research, and development sourcesmust be documented and acknowledged bythe PMP when relying on others’ work.
Responsibilities to the Customerand to the Public• The candidate also has a responsibility to thecustomer of the project and the public.• Projects that affect internal customers are expectedto meet requirements and standards, and fulfill thebusiness need of the performing organization.• Essentially, the candidate is working for thecustomer.
Enforcing ProjectManagement Truth &Honesty• The candidate must represent themselves and theirprojects truthfully to the general public.• This includes statements made in advertising, press• releases, and in public forums.• When project managers are involved in the creation ofestimates, truth is also expected.• The candidate must provide accurate estimates ontime, cost, services to be provided—and realisticoutcomes of the project work.
Eliminating InappropriateActions• A PMP/ CAPM must avoid conflicts of interestand scenarios where conflicts of interest couldseem apparent, opportunistic, or questionableto the customer or other stakeholders.• In addition, the candidate must not accept anyinappropriate gifts, inappropriate payments,or any other compensation for favors, projectmanagement work, or influence of a project.
Respecting Differences• Interact with team and stakeholders in aprofessional and cooperative manner– Understand cultural diversity, norms andstakeholders’ communication styles– Show flexibility towards diversity, tolerance andself control– Becoming empathetic to differences
Project ManagementFrameworkIntroduction to Project Management
What is the PMBOK GuideThe Project Management Book of Knowledge(pmbok) is a recognised standard for theproject management profession.• A standard is a formal document, it describesnorms, methods, processes and practices.
What is a projectAccording to PMBOK a project is atemporary endeavor undertaken to createa unique product, service or result.’’
Project CharacteristicsYou’ve just learned that a project has severalcharacteristics:• Projects are unique.• Projects are temporary in nature and have a definitebeginning and ending date.• Projects are completed when the project goals are achievedor it’s determined the project is no longer viable.• A successful project is one that meets or exceeds theexpectations of your stakeholders
Operational WorkOperational Works are quite opposite in nature toProjects. Operations are ongoing and repetitive.They involve work that is continuous without anending date, and you often repeat the sameprocesses and produce the same results.
Project Management vs. OperationsThe purpose of operations is to keep theorganization functioning, while the purpose of aproject is to meet its goals and to conclude.At the completion of a project, the end product(or result) may get turned over to the organization’soperational areas for ongoing care andmaintenance.
What is Project ManagementProject Management is the application ofknowledge, skills, tools and techniques tomeet the project requirements. It is theresponsibility of the project manager toensure that project management techniquesare applied and followed.
What is a PortfolioPortfolios are a collections of programsand projects grouped together to supporta strategic business goal or objective. Theprograms may not be related other thanthe fact that they are helping to achievethat common goal.
What is a Program• Programs are groups of related projects that aremanaged using the same techniques in a coordinatedfashion. When projects are managed collectively asprograms, it’s possible to capitalize on benefits thatwouldn’t be achievable if the projects were managedseparately.• A project may or may not be part of a program but aprogram will always have projects.
SUBPROJECTProjects are frequently divided into moremanageable components or subprojects.Subproject are often contracted to an externalenterprise or to another functional unit in theperforming organization.Subprojects can be referred to as projects andmanaged as such
What is a Project Management OfficeThe project management office (PMO) is anorganisational body or entity assigned tooversee the management of projects andprograms throughout the organization.
Primary Function of PMOA Primary function of PMO is to support project managers in avariety of ways which may include, but are not limited to:• Managing shared resources across all the projects administered by thePMO.• Identifying and developing project management methodology, practices &standards.• Coaching, mentoring , training and oversight.• Monitoring compliance with project management standard policies,procedures , and templates via project audits.• Developing and managing project policies, procedures, templates, andother shared documentation ( organizational process assets);• Co coordinating communication across projects
Role of a Project Manager• The Project Manager is the person responsible for accomplishing theproject objectives.• Project managers strive to meet the triple constraint by balancing projectscope, time, and cost goals.• Depending on the organization structure , a project manager may report tofunctional manager.• In other cases project manager may be one of the several project managerswho report to a portfolio or program manager that is ultimately responsiblefor enterprise wide projects . In this type of structure, the project managerworks closely with the portfolio or program manager to achieve the projectobjectives
Project Manager SkillsSkills every good project manager should have:• Integration Skills• Communication skills• Planning and Organizational skills• Leadership Skills• Team Building and Motivational Skills• Budgeting Skills• Conflict Management Skills• Negotiation and Planning Skills
Organisational StructureJust as projects are unique, so are the organizationsin which they’re carried out. Organizations have theirown styles and cultures that influence how projectwork is performed..One of the keys to determining the type of organization you work in is measuring how muchauthority senior management is willing to delegate to project managers
Types of OrganisationalStructureAlthough uniqueness abounds in businesscultures, all organizations are structured in one ofthree ways:• Functional• Projectized• Matrix
Functional OrganisationOne common type of organization is the functionalorganization. Chances are you have worked in this type oforganization. This is probably the oldest style of organizationand is therefore known as the traditional approach toorganizing businesses.Functional organizations are centered on specialties andgrouped by function, which is why it’s called functionalorganization. As an example, the organization might have ahuman resources department, finance department,marketing department, and so on.
Projectized OrganisationsIn this type structure, organisational resources are dedicated toprojects and project work in purely projectized organizations. Projectmanagers almost always have ultimate authority over the project inthis structure and report directly to the CEO.In a purely projectized organization, supporting functions such ashuman resources and accounting might report directly to the projectmanager as well. Project managers are responsible for makingdecisions regarding the project and acquiring and assigningresources. They have the authority to choose and assign resourcesfrom other areas in the organization or to hire them from outside ifneeded.
Matrix OrganisationsThis form is an attempt to maximize the strengths of both thefunctional and projectised forms. Team members report to twobosses, the project manager and functional manager (i.e., VPEngineering). Communication goes from team member to bothbosses. Team member do project work in addition to normaldepartmental work.• In a strong matrix, power rests with the project manager, in a weakmatrix power rests with the functional manager and the power iscomparable to that of a coordinator or expediter.• In a balanced matrix, the power is shared between the functionalmanager and the project manager.
Project Expediter and Coordinator• Project Expediter- The project expediter actsprimarily as a staff assistant and communicationscoordinator. The expediter cannot personally make orenforce decisions.• Project Coordinator- This position is similar to theproject expediter except the coordinator has somepower to make decisions, have some amount ofauthority and reports to a higher- level manager.
Who are project Stakeholders• Stakeholders are persons or organizations who are actively involved inthe project or whose interests may positively or negatively beaffected by the performance or completion of the project.• Stakeholders have varying levels of responsibility and authority andcan change over the project life cycle.• Project management team must continuously identify both externaland internal stakeholders.• Project manager must manage the influence of various stakeholders inrelation to the requirements and balance stakeholders’ interest.
Stakeholders• Some examples of project stakeholders
Enterprise Environmental Factors• Refer to both internal & external environmental factors that surround orinfluence a project’s success.• As an input in almost all project management process.• May enhance or constrain project management options.• May have positive or negative influence on the outcome.• Examples: Organizational culture, structure, and processes Government or industry standards Infrastructure Existing human resources Personnel administration Company work authorization systems Marketplace conditions Stakeholder risk tolerances Political climate Organization’s established communications channels Commercial databases Project management information
Organizational Process Assets• Processes & Procedures Organizational standard processes such as standards, policies Standardized guidelines, work instruction, proposal evaluation criteria, andperformance measurement criteria Templates Financial control procedures Procedures for prioritizing, approving, and issuing work authorization, etc.• Corporate Knowledge Base Process measurement databases Project files Historical information & lesson learned knowledge bases Issue and defect management databases Configuration management knowledge bases Financial databases, etc.
Project Management ProcessGroupsProject management processes organize anddescribe the work of the project. ThePMBOK®Guide describes five process groupsused to accomplish this end. These processesare performed by people and, much likeproject phases, are interrelated anddependent on one another.
The five process groups are:• Initiating• Planning• Executing• Monitoring and Controlling• Closing
Project Management ProcessesAll these process groups have individual processes that collectivelymake up the group. For example, the Initiating process group hastwo processes called Develop Project Charter and IdentifyStakeholders.Collectively, these process groups—including all their individualprocesses—make up the project management process.Projects start with the Initiating process and progress through all theprocesses in the Planning process group, the Executing processgroup, and so on, until the project is successfully completed or it’scanceled. All projects must complete the Closing processes, even ifa project is killed.
Knowledge AreasThere are nine knowledge areas and they are:• Integration Management• Scope Management• Time Management• Cost Management• Quality Management• Human Resource Management• Communication Management• Risk Management• Procurement Management
Knowledge Areas• Each Knowledge area has further Processes.There are a total of 42 processes. Eachprocess has inputs, outputs and "tools andtechniques" (ITTO’s). The PMBOK primarilycovers each of the processes and its ITTO’s indetail. You need to understand the conceptsrelated to each of the input, output and "toolsand techniques".
Project Life cycleThe project life cycle is the agglomeration ofall phases in the project.All projects are divided into phases, and allprojects, large or small, have a similar life cyclestructure: These are:• Starting the project• Organizing and preparing• Carrying out the project work• Closing the project
Characteristics of the Project LifeCycleThe project life cycle serves to define the beginning and theend of a project.Phases are generally sequential and are usually definedby some form of technical information or technicalcomponent handoff.Deliverables from the preceding phase are usually approvedbefore work starts on the next phase.
Characteristics of the Project Life CycleMost project life-cycles share a number of commoncharacteristics:Cost and staffing levels are low at the start, highertoward the end, and drop rapidly as the project draws to aconclusion.The ability of the stakeholders to influence the finalcharacteristics of the project’s product and the finalcost of the project is highest at the start and getsprogressively lower as the project continues.
The probability of successful completion generallygets progressively higher as the project continues.Characteristics of the Project Life CycleThe probability of successfully completing theproject is lowest, and hence risk and uncertainty arehighest, at the start of the project.
Project Phases and the Project LifeCycleA project life cycle is a collection of projectphases that defines: What work will be performed in each phase. What deliverables will be produced and when. Who is involved in each phase. How management will control and approve work produced ineach phase. A deliverable is a product or service produced or provided aspart of a project
HandoffsProject phases evolve through the life cycle ina series of phase sequences called handoffs, ortechnical transfers. The end of one phasesequence typically marks the beginning of thenext.
Phase-to-Phase RelationshipsThere are three basic types of phase–to Phaserelationships:• A Sequential relationship : where a phase can only startonce the previous phase is complete.• An Overlapping relationship : where the phase starts priorto completion of the previous one (Fast tracking).Overlapping phase may increase risk and can result inrework.• An Iterative relationship : where only one phase is plannedat any given time and the planning for the next is carried outas work progresses on the current phase and deliverables
PROJECT INTEGRATIONMANAGEMENTProject Management Training
Project IntegrationManagementIntegration managementis an element of projectmanagement thatcoordinates all aspects ofa project.
The Key to Overall Project Success:Good Project Integration Management• Project managers must coordinate all of the otherknowledge areas throughout a project’s life cycle.• Many new project managers have trouble looking atthe “big picture” and want to focus on too manydetails.
Project Integration Management Processes:• Develop the project charter: Work with stakeholders tocreate the document that formally authorizes a project—the charter.• Develop the project management plan: Coordinate allplanning efforts to create a consistent, coherentdocument—the project management plan.• Direct and manage project execution: Carry out theproject management plan by performing the activitiesincluded in it.
Project Integration Management Processes (cont’d)• Monitor and control the project work: Overseeproject work to meet the performance objectives ofthe project.• Perform integrated change control: Coordinatechanges that affect the project’s deliverables andorganizational process assets.• Close the project: Finalize all project activities toformally close the project.
How do Projects come about:• As a result of Needs and Demands, namely:Market needCustomer RequestStrategic opportunity/business needTechnological advanceLegal requirementEcological impactsSocial need
Strategic Planning and Project Selection• Strategic planning involves determining long-term objectives, predictingfuture trends, and projecting the need for new products and services.• Organizations often perform a SWOT analysis:– Strengths, Weaknesses, Opportunities, and Threats• As part of strategic planning, organizations should:– Identify potential projects.– Use realistic methods to select which projects to work on.– Formalize project initiation by issuing a project charter.
Project Selection MethodsThere are many ways to select a project to beinitiated from among many possible projects.Project selection methods measure the value ofwhat the product, service, or result of the projectwill produce and how it will benefit theorganization.
Methods for Selecting Projects• There is usually not enough time orresources to implement all projects.• Methods for selecting projects include:– Focusing on broad organizational needs.– Categorizing projects.– Performing net present value or other financialanalyses.– Using a weighted scoring model.– Implementing a balanced scorecard.65
Project Selection MethodsThere are generally two categories ofselection methods:• Benefit Measurement Methods (Comparativeapproach).• Constrained Optimization Methods(Mathematical models).
Benefit Measurement Method• Murder BoardA panel of people who try to shoot down a newproject idea.• Peer Review• Economic Models• Benefit Compared to Cost
Economic Models for ProjectSelection• Present Value• Net Present Value• Internal Rate of Return• Payback Period• Benefit Cost Ratio
Net Present Value• Net present value (NPV) analysis is a method ofcalculating the expected net monetary gain or loss froma project by discounting all expected future cash inflowsand outflows to the present point in time.Note:• Projects with a positive NPV should be considered iffinancial value is a key criterion.• The higher the NPV, the better.
Internal Rate of Return• The internal rate of return (IRR) is the most difficultequation to calculate of all the cash flowtechniques.• It is a complicated formula and should beperformed on a financial calculator or computer.• Technically speaking, IRR is the discount rate whenthe present value of the cash inflows equals theoriginal investment.
Internal Rate of Return cont’dNote:When choosing between projects or whenchoosing alternative methods of doing theproject, projects with higher IRR values aregenerally considered better than projectswith low IRR values.
Payback Period• The payback analysis/payback period is another importantfinancial consideration.• The payback period is the amount of time (number of timeperiods) it will take to recoup your investment in the projectbefore you start accumulating profit.• Many organizations want IT projects to have a fairly shortpayback period.
Project Selection – Economic ModelsConcepts you should know:• Present value (PV): The value today of future cash flows.• Net present value (NPV): Project with positive & greater NPVvalue is better.• Internal rate of return (IRR): Project with greater IRR value isbetter.• Payback period: The shorter the payback period the better.• Benefit-cost ratio: compares the benefits to the costs of differentoptions relates to costing projects and to determining what workshould be done. Project with greater benefit-cost ratio value isbetter.
Project Selection – Economic ModelsMethod MAIN POINTPresent value (PV): value today of future cash flowsNet present value(NPV):greater NPV value is betterInternal rate ofreturn (IRR):greater IRR value is betterPayback Period time periods it takes to recover your investmentSHORTER Payback Period THE BETTERBenefit-cost ratio ABOVE 1; greater benefit-cost ratio value is better.
Weighted Scoring Model• A weighted scoring model is a tool that provides a systematicprocess for selecting projects based on many criteria.• Steps in identifying a weighted scoring model:1. Identify criteria important to the project selectionprocess.2. Assign weights (percentages) to each criterion so theyadd up to 100 percent.3. Assign scores to each criterion for each project.4. Multiply the scores by the weights to get the totalweighted scores.• The higher the weighted score, the better.76
Sample Weighted Scoring Model for Project Selection77Weighted Scoring Model
Implementing a Balanced Scorecard• Drs. Robert Kaplan and David Norton developed thisapproach to help select and manage projects that alignwith business strategy.• A balanced scorecard is a methodology that converts anorganization’s value drivers, such as customer service,innovation, operational efficiency, and financialperformance, to a series of defined metrics.• See www.balancedscorecard.org for more.
Project Selection – Key Terms• Economic Value Added (EVA): concerned with whether theproject returns to the company more value than it costs.• Opportunity Cost: the opportunity given up by selecting oneproject over another.• Sunk Costs: Are expended costs, should not be consideredwhen deciding whether to continue with a troubled project.• Law of Diminishing Returns: after a certain point, addingmore input/resource will not produce a proportional increasein productivity.
Why have a Project Charter• It formally recognises (authorise) the existence of theproject, without it a project does not exist.• It gives the project manager authority to spend moneyand commit corporate resources.• It provides high level requirements for the project. Theproject charter is broad enough so it does not need tochange as the project changes.
Why have a Project Charter• It provides direction on the project’s objectives andmanagement.• Key project stakeholders should sign a projectcharter to acknowledge agreement on the need andintent of the project; a signed charter is a key outputof project integration management.
Develop Project CharterThe process of developing a document that formally authorizes a project or phase,and documenting initial requirements that satisfy the stakeholders’ needs andexpectations.
Develop Project Charter• Projects are authorized by someone external to theproject such as sponsor, PMO, portfolio steeringcommittee.• The project charter can be created by them ordelegated to Project Manager.
Develop Project Charter: Inputs• Statement of Work (SOW)A narrative description of products or services to bedelivered by the project. The SOW references: Business need Product scope description Strategic plan• Business caseProvide the necessary information from businessstandpoint to determine whether or not the project isworth the required investment.
Develop Project Charter: Inputs cont’d• ContractApplicable when the project is being done for an externalcustomer.• Enterprise Environmental Factors Government or industry standards Organization infrastructure Marketplace conditions• Organizational Process Assets Organizational standard processes, policies Templates Historical information and lessons learned
Develop Project Charter: Tools & Techniques• Expert JudgmentThe expertise of individuals or groups with specializedknowledge or training to assist with the technical ormanagement details.They include: Internal customers – people within the organization Consultants Stakeholders Professional & technical associations Industry groups PMO
Develop Project Charter: Outputs• The Project CharterThe project charter documents the businessneeds, current understanding of the customer’sneeds, and the new product,service, or result that it is intended to satisfy.
Develop Project Charter: Outputs cont’dThe project charter documents :– Project purpose or justification– Measurable project objectives and related success criteria– High-level requirements– High-level project description– High-level risks– Summary milestone schedule– Summary budget– Project approval requirements– Assigned project manager, responsibility and authority level– Name and authority of the sponsor or other person(s) authorizingthe project charter
Develop Project Management Plan• The Develop Project Management Plan process includesthe actions necessary to define, integrate, and coordinateall subsidiary plans into a project management plan.• The Develop Project Management Plan process brings allthese subsidiary plans together, along with the outputs ofthe Planning group processes, into one document calledthe project management plan.• The project management plan defines how the project isexecuted, monitored and controlled, and closed.
Develop Project Management PlanThe process of documenting the actions necessary to define,prepare, integrate and coordinate all subsidiary plans.
Develop Project Management Plan:Inputs• Project Charter• Outputs from Planning Processes Outputs from many of the planning processes described inchapter 5 through 12 are integrated to create the projectmanagement plan. Any baselines and subsidiary management plans that are anoutput from the other planning processes are inputs to thisprocess. In addition, updates to these documents can necessitateupdates to the project management plan.
Subsidiary Management PlansThese subsidiary plans include, but are not limited to:• Project scope management plan• Schedule management plan• Cost management plan• Quality management plan• Process improvement plan• Staffing management plan• Communication management plan• Risk management plan• Procurement management plan
Develop Project Management Plan:Inputs• EEF Government or industry standards PMIS Organizational structure and culture Infrastructure Personnel administration• OPA Standardized guidelines, work instructions, evaluation criteria, etc. Project management plan template Change control procedures Project files re: past projects
Project Management Plan (Output)• The strategy for managing the project and the processes ineach knowledge area.• Covers how you will define, plan, manage, and control theproject.• How to handle a problem on a project?look at your management plan to see how you planned tohandle such a problem.• The project management plan can be either summary level ordetailed, and can be composed of one or more subsidiaryplans and other components. Each of the subsidiary plans andcomponents is detailed to the extent required by the specificproject.
The Project Management PlanA Project Management Plan includes:• Project Charter• Budget• Schedule• Resources• Scope Statement• Responsibility charts/assignments• Subsidiary Management Plans
Develop Project Management Plan (cont…)Those other components include, but are notlimited to: Milestone list Resource calendar Schedule baseline Cost baseline Quality baseline Risk register
Project BaselineProject baseline refers to the original version ofthe project management plan. Once the projectmanagement plan is base-lined, it may only bechanged by raising a change request.
Baseline (Performance measurement baseline)• The project management plan contains scope, schedule, and cost baselines,against which the project manager will need to report projectperformance.• Baseline created during planning. Scope baselineThe project scope statement, work breakdown structure (WBS), and WBSdictionary. Schedule baselineThe agreed-upon schedule, including the start and stop times. Cost baselineThe time-phased cost budget.• Deviations from baselines are often due to incomplete risk identificationand risk management.
Configuration Management PlanThis plan describes how configurationmanagement will be performed on theproject.The configuration management systemdefines configurable items, such as productspecifications, and the change controlprocedures on those items.
Configuration Management• Ensures that the descriptions of the project’s productsare correct and complete.• Involves identifying and controlling the functional andphysical design characteristics of products and theirsupport documentation.• Configuration management specialists identify anddocument configuration requirements, control changes,record and report changes, and audit the products toverify conformance to requirements.
Change Management Plan• Describes how changes will be managed and controlled.• Covers for the project as whole.• May include:- Change control procedures (how and who)- The approval levels for authorizing changes- The creation of a change control board to approve changes.- A plan outlining how changes will be managed and controlled.- Who should attend meetings regarding changes.- Tools to use to track and control changesEach knowledge area are described in the individual management plans
Requirements Management PlanDescribes how the requirements will be elicited,analyzed, documented, prioritized, and managedthroughout the project.Requirements drive the features andcharacteristics of the project’s deliverables. Thisplan is created in the Collect Requirementsprocess.
Stakeholder Analysis• A stakeholder analysis documents important (often sensitive)information about stakeholders such as:– Stakeholders’ names and organizations.– Their roles on the project.– Unique facts about each stakeholder.– Their level of influence on and interest in the project.– Suggestions for managing relationships with eachstakeholder.
Progressive ElaborationProgressive Elaboration involves theprocess of taking a project fromconcept to detailed design.
Kickoff MeetingKick-off meeting happens after the planningphase and before the project execution. It istypically used to communicate responsibilitiesof key stakeholders.
Project Execution• During project execution the project teamfocuses on completing the tasks assigned.• The Sponsor protects the project fromchanges and loss of resources.• The Project Manager integrates all the piecesinto the project as a whole.
Project Execution (Cont…)• Project execution involves managing andperforming the work described in the projectmanagement plan.• The majority of time and money is usuallyspent on execution.• The products of the project are producedduring project execution.
Coordinating Planning and Execution• Project planning and execution are intertwinedand inseparable activities.• Those who will do the work should help to planthe work.• Project managers must solicit input from theteam to develop realistic plans.
Important Skills for Project Execution• General management skills such asleadership, communication, and politicalskills.• Product, business, and application area skillsand knowledge.• Use of specialized tools and techniques.
Direct and Manage Project ExecutionThis process requires implementation ofapproved changes covering:• Corrective action• Preventive action• Defect repair
Direct & Manage Project ExecutionThis is the process for performing the work defined in the project managementplan to achieve the project’s objectives
Using Software to Assist in Project Integration Management• Several types of software can be used to assist in projectintegration management:– Word processing software creates documents.– Presentation software creates presentations.– Spreadsheets or databases perform tracking.– Communication software such as e-mail and Web authoringtools facilitate communications.• Project management software can pull everything together andshow detailed and summarized information. The exam does not focuson any specific system (for example Microsoft Project ).
Project Execution: Tools and Techniques• Project Management Information Systems:Hundreds of project management softwareproducts are available on the market today,and many organizations are moving towardpowerful enterprise project managementsystems that are accessible via the Internet.
Project ManagementInformation System (PMIS)Project Management Information System(PMIS) is a system that keeps track of statusof all the project tasks. It is used to track thestatus of the project.
Change Requests• When a change request is received, the followingsteps must be taken (in this order):• Evaluate (assess) the impact of change to the project• Create alternatives including cutting other tasks,crashing, fast-tracking etc.• Meet with management, sponsors etc.• Meet with the customer if necessary
Monitoring and Controlling ProjectWork• Changes are inevitable on most projects, so it’simportant to develop and follow a process tomonitor and control changes.• Monitoring project work includes collecting,measuring, and disseminating performanceinformation.• Outputs of monitoring and controlling project workinclude Change Requests, Project management planupdates and project document updates.
Monitor & Control Project Work•This process includes tracking, reviewing and regulating the progress to meet theperformance objectives defined in the project management plan.
Monitor & Control Project Work: Input• Performance Reports : Reports should be prepared bythe project team detailing activities ,accomplishments ,milestones ,identified issues andproblems . Performance reports can be used to reportthe key information , but not limited to :– Current status– Significant accomplishments for the period– Scheduled activities– Forecasts– Issues
Perform Integrated Change ControlThe process of reviewing all change requests,approving changes, and managing changes tothe deliverables, organisational processassets, project documents and the projectmanagement plan.
Perform Integrated ChangeControl• The integrated change control process is a control functionthat is done from project initiating through project closing.• This is where all the recommendations for changes,corrective actions, preventive actions and defect repairsare evaluated across all the knowledge areas and eitherapproved or rejected.• Changes to any part of the project management plan or theproduct of the project are handled in the integrated changecontrol process.
Integrated Change Control• Three main objectives are:– Influence the factors that create changes toensure that changes are beneficial.– Determine that a change has occurred.– Manage actual changes as they occur.• A baseline is the approved projectmanagement plan plus approved changes.
Change Control SystemA formal, documented process thatdescribes when and how officialproject documents and work maybe changed.Describes who is authorized to makechanges and how to make them.
Change Control BoardChange Control Board is formed to reviewchange requests. It is used to approve orreject change requests. After the projectscope has been baselined, each requestedchange must go through a change controlreview process.
Change Control Boards (CCBs)• A formal group of people responsible forapproving or rejecting changes on a project.• CCBs provide guidelines for preparing changerequests, evaluate change requests, and managethe implementation of approved changes.• CCBs include stakeholders from the entireorganization.
Configuration Management• Ensures that the descriptions of the project’s products arecorrect and complete.• Involves identifying and controlling the functional andphysical design characteristics of products and their supportdocumentation.• Configuration management specialists identify and documentconfiguration requirements, control changes, record andreport changes, and audit the products to verify conformanceto requirements.
Defines how you will manage changes to the deliverables and the resultingdocumentation, including which organizational tools you will use.PMISConfigurationManagement SystemChange Control System
Closing Projects• To close a project, you must finalize allactivities and transfer the completed orcancelled work to the appropriate people.• Main outputs include:– Administrative closure procedures.– Contract closure procedures.– Final products, services, or results.– Organizational process asset updates.
Close Project or PhaseProjects come to an end for several reasons:• They’re completed successfully.• They’re canceled or killed prior to completion.• They evolve into ongoing operations and no longer exist asprojects.There are four formal types of project endings you mightneed to know for the exam:• Addition• Starvation• Integration• Extinction
Close Project or Phase• Addition- Projects that evolve into ongoingoperations are considered projects that end due toaddition; in other words, they become their ownongoing business unit.• Starvation- When resources are cut off from theproject or are no longer provided to the project, it’sstarved prior to completing all therequirements and you’re left with an unfinishedproject on your hands.
Close Project or Phase• Integration- Integration occurs when the resources of theproject—people, equipment, property, and supplies— aredistributed to other areas in the organization or areassigned to other projects.• Extinction- This is the best kind of project end becauseextinction means the project has been completed andaccepted by the stakeholders. As such, it no longer existsbecause it had a definite ending date, the goals of theproject were achieved, and the project was closed out.
Close ProjectThe Close Project or Phase is the process of formal completion of all project relatedactivities.
Lessons LearnedAt the end of each phase of a project, a lessonslearned document must be prepared. The lessonslearned document defines what was done right,wrong etc. It is required to be completed in orderfor the project to be completed.Also called “Post – Mortem”
AssumptionsAssumptions are beliefs held to be true for the purposesof the project – you don’t have to prove them, but theymust be documented in the Project Plan. As they areassumptions then be aware that they have an element ofrisk attached to them. If assumptions later turn out to befalse during the execution of the project then this maylead to changes in project scope.
Project ConstraintsEvery project has to manage at leastthree basic constraints; time, cost andscope. The success of a project dependson the skills and knowledge of a projectmanager to take into considerationthese constraints and develop the plansand processes to keep them in balance.
Project Scope Management• Processes required to ensure that project includes allthe work required, and only the work required, tocomplete the project.• Managing a project scope is primarily concerned withdefining and controlling what is and is not included inthe project.• Scope management defines how the deliverables ofproject will be verified and accepted.• Develop project management plan, under integrationproduces the scope management plan which willdefine how the scope shall be defined, verified andcontrolled.
Scope management means:• Not letting people randomly add to the scopewithout a structured change control system.• Making sure all changes fit within the projectcharter.• Preventing extra work or “gold plating”.• Uncontrolled scope is called scope creep.
In the project context the term scope may refer to:• Product scope : the features and functions that are to beincluded in a product or service. Completion of product scopeis measured against requirements.• Project scope : The work that must be done in order to delivera product with the specified features and functions.Completion of project scope is measured against the projectmanagement plan.Both types of scope management must be well integrated toensure the work of the project will result in the delivery of thespecified product.
project scope, product scope & requirementsExample: Lets say you have a plot of land and you want to build a houseon it.Product: The houseProduct Scope: The house should have 3 storeys, 1000 sq. m ofbuilt up area, 4 bedrooms with attached baths, 2 living room, akitchen, basement and a garage. The exteriors should be white.Project Scope: Hiring a building contractor, an architect and aninterior designer, acquiring legal permits, estimating the cost, takingbank loan, planning for risks such as rains and storms, designing thehouse, buying building materials,
Example: project scope, product scope & requirementsconstructing the house, conducting inspections, conductingregular site visits to track the progress, resolving disputes,Making payments and compensations, closing contracts andmoving in.Requirements: In addition to product scope, there could beother requirements for the house. Using a particular grade ofcement could be your quality requirements. Making the houseearthquake- proof could be a performance requirement. Gettinga weekly progress update from your contractor, and makingmonthly payments could be your project managementrequirements.
Documenting the Scope Management PlanThe scope management plan describes how theproject team will go about defining project scope,verifying the work of the project, and managing andcontrolling scope. The PMBOK Guide does not gointo detail regarding this plan, but there are somethings you may need to know about this plan for theexam.
Project Scope Management PlanThe project scope management plan should contain thefollowing:• The process you’ll use to prepare the project scopestatement.• A process for creating the work breakdown structure(WBS).• A definition of how the deliverables will be verified foraccuracy and the process used for acceptingdeliverables.• A description of the process for controlling scope changerequests, including the procedure for requesting changesand how to obtain a change request form.
Project Scope Management Processes:• Collect Requirements : the process of defining anddocumenting stakeholder’s needs to meet the projectobjectives.• Define Scope : the process of developing a detaileddescription of the project and the product.• Create WBS: the process of subdividing the projectdeliverables and the project work into smaller, moremanageable components• Verify Scope : the process of formalizing acceptance of thecompleted project deliverables• Control Scope : the process of monitoring the status of theproject and product scope and managing changes to thescope baseline.
Requirements• Requirements describe the characteristics of thedeliverables. They might also describe functionalitythat a deliverable must have or specific conditions adeliverable must meet in order to satisfy theobjective of the project.• Requirements are typically conditions that must bemet or criteria that the product or service of theproject must possess in order to satisfy theobjectives of the project.
Collect Requirements• Collect requirements is the process of defining anddocumenting stakeholders’ needs to meet the projectobjectives .• Requirements include the quantified and documented needsand expectations of the sponsor, customer, and otherstakeholders.• These requirements need to be elicited , analyzed, andrecorded in enough detail to be measured once projectexecution begins .• Collecting requirements is defining and managing customerexpectations . Requirements become the foundation of theWBS. Cost , Schedule, and quality planning are all built uponthese requirements
Collect Requirements• The development of requirements begins with ananalysis of the information contained in the projectcharter and the stakeholder register .• Many organizations categorize requirements intoproject requirements and product requirements• Project requirements : business requirements, projectmanagement requirements ,delivery requirements etc• Product requirements: technical, security,performance , etc
Collect RequirementsCollect Requirements is the process of defining and documenting stakeholdersneeds to meet the project objectives.
Collect Requirements: Tools &TechniquesInterviews :• Is a formal or informal approach to discover informationfrom stakeholders by talking to them directly• It is typically performed by asking prepared andspontaneous questions and recording the responses .• Interviewing experienced project participants,stakeholders and subject matter experts can aid inidentifying and the defining the features and thefunctions of the desired project deliverables .
Collect Requirements – Tools &TechniquesFocus Groups :• Focus groups bring together prequalifiedstakeholders and subject matter experts to learnabout their expectations and attitudes about aproposed product, service, or result .• A trained moderator guides the group through aninteractive discussion , designed to be moreconversational than a one-on-one interview
Collect Requirements – Tools &TechniquesFacilitated workshops:Cross-functional stakeholders come together in afacilitated workshop to discuss and define requirementsthat affect more than one department. For example, ifyou’re implementing a software package that impactsseveral business units, you’ll need representatives fromeach unit together in a workshop so that each of theirneeds are represented and prioritized. This way, all theparticipants understand the various needs and havea facilitated forum to discuss and resolve their issues.
Collect Requirements – Tools &TechniquesGroup Creativity Techniques : Group creativityinvolves several techniques, like brainstorming,nominal group technique, the delphi technique, andaffinity diagrams.• Brainstorming : a technique used to generate andcollect multiple ideas related to the project andproduct requirements .
Collect Requirements – Tools &TechniquesGroup Creativity Techniques :• Nominal Group Technique : enhancesbrainstorming with a voting process used torank the most useful ideas for furtherbrainstorming or prioritization (Brainstorming+ Voting)
Collect Requirements – Tools &TechniquesGroup Creativity Techniques :• The Delphi Technique is an anonymousmethod to query experts. Delphi techniqueuses an experienced Facilitator.• The responses are only available to thefacilitator.• Participants can express ideas or opinionswithout fear or being intimidated.
Collect Requirements – Tools &TechniquesGroup Creativity Techniques :• Idea/mind mapping : ideas created throughindividual brainstorming are consolidated into asingle map to reflect commonality and differences inunderstanding , generate new ideas (Brainstorming+Map).• Affinity Diagram : this technique allows largenumber of ideas to be sorted into groups for reviewand analysis
Collect Requirements – Tools &TechniquesGroup Decision Making Techniques : there aremultiplemethods of reaching a group decision :• Unanimity :everyone agrees on a single course ofaction• Majority : support from more than 50% of themembers of the group.• Plurality : the largest block in a group decides evenif a majority is not achieved.• Dictatorship : one individual makes the decision forthe group
Collect Requirements – Tools &TechniquesQuestionnaires and Surveys:This technique involves querying a largegroup of participants via questionnaires orsurveys. These tools allow you to gatherinformation quickly and apply statisticalanalysis, if needed, to the results.
Collect Requirement : Tools &TechniquesObservation:This technique is typically a one-on-one experiencewhere an observer sits side by side with theparticipant to observe how the participant interactswith the product or service. This technique is alsoknown as job shadowing. For example, you may usethis technique to determine requirements for anupgrade to a software product. Sitting with the userand watching their interactions with the productenables the observer to uncover requirements theywould not have ordinarily discovered.
Collect Requirements – Tools &TechniquesPrototypes :Prototyping is a technique involving constructing aworking model or mock-up of the final product forparticipants to experiment with. The prototype does notusually contain all the functionality the end productdoes, but it gives participants enough information thatthey can provide feedback regarding the mock-up. This isan iterative process where participants experiment andprovide feedback and the prototype is revised and thecycle starts again
Balance Stakeholder’s Requirement• There is a need to balance stakeholder’s requirement.• Some issue are so complex they cannot be resolved by PM alone.• Facilitate the resolution of competing requirement, consider:1. business case,2. project charter,3. project scope statement,4. project constraintsWhat you can do:Conflict resolution, team building, meeting, problem solving skills, escalation,approval from stakeholder.• Stakeholder request to do or add something that is not related to the reasonof project created should be rejected!
Collect Requirements: OutputsRequirements DocumentationAs mentioned earlier, requirements quantify and prioritizethe wants, needs, and expectations of the project sponsorand stakeholders. Requirements typically start out high-leveland are progressively elaborated as the project progresses.You must be able to track, measure, test, and trace therequirements of the project. If you can’t measure or testwhether the requirement satisfies the business need of theproject, the definition of success is left to the subjectiveopinions of the stakeholders and team members.
Requirements DocumentationThe requirements document may include the following elements:• Business need for the project and why it was undertaken• Objectives of the project and the business objectives theproject hopes to fulfill• Functional requirements and Nonfunctional requirements• Quality requirements• Acceptance criteria• Business rules• Organizational areas and outside entities impacted• Support and training requirements• Assumptions and constraints
Collect Requirements- OutputsRequirements Management Plan :• Documents how requirements will be analyzed , documentedand managed throughout the project.• The type of phase relationship you choose to manage theproject will determine how requirements are managedthroughout the project. For example, in a sequentially phasedproject, it’s possible to define requirements in later phases ofthe project after some work has been completed. In anoverlapping phased relationship, you’ll need to define anddocument most all the requirements early in the life cycle.• Configuration management is often used to manage and trackchanges to deliverable (product, service or result)requirements.
Requirements Management PlanThe Requirements Management Plan should include the following:• How planning, tracking, and reporting of requirements activitieswill occur• How changes to the requirements will be requested, tracked, andanalyzed along with other configuration management activities• How requirements will be prioritized• What metrics will be used to trace product requirements• What requirements attributes will be documented in thetraceability matrix• Remember that the requirements management plan can beconsidered a subsidiary management plan and be included in theproject management plan.
Requirements Traceability MatrixIt is a matrix that links requirements to their origin and tracesthem throughout the project life cycle .It helps to ensure thatrequirements approved in the requirements documentation aredelivered at the end of the project. It can include:• Unique identifier• Textual description• Rationale• Owner source• Status• Date Completed
Define ScopeScope is collectively the product, service, or result of theproject.Now that you’ve documented the project requirements,you’re ready to further define the needs of the project in theDefine Scope process. The project scope statement (an outputof this process) is what you’ll use to develop and document adetailed description of the deliverables of the project and thework needed to produce them. This process is progressivelyelaborated as more detail becomes known.
Define ScopeThis is the process of developing a detailed description of the project andproduct
Define Scope – Tools and Techniques1. Product Analysis• The purpose of product analysis is to analyze the objectives statedby the customer or sponsor and turn them into real requirements.(Product breakdown, systems analysis, value engineering,requirements analysis and value analysis).2.Alternative Identification• Identifying alternatives is a technique used to generate differentapproaches to execute and perform the work of the project. Brainstorming Lateral Thinking Pair wise comparison
Lateral ThinkingLateral thinking is a form of alternativesidentification that can be used to help define scope.Edward de Bono created this term and has doneextensive research and writing on this topic. Thesimplest definition is that it’s thinking outside thebox.Lateral thinking is a process of separating the problem, or inour case the components of project scope (the deliverablesand requirements), looking at them from angles other thantheir obvious presentation and encouraging team membersto come up with ways to solve problems or look at scope thatare not apparently or obvious.
Lateral Thinking ExampleQuestion: How could your pet Yorkie fall from thewindow of an 18-story building and live?Answer: The question asks how your pet could fallfrom an 18-story building and live; however, thequestion doesn’t state that your pet fell from the18th floor. So, your pet Yorkie fell from thebasement-level window.
Define Scope - OutputsProject Scope Statement• Project scope statements describes, in detail(remember SOW), project deliverables andwork required to create these deliverables.• It helps to create a common understandingamong stakeholders (avoid scope creep)• Project team can perform detailed planningnow
What is Work Breakdown Structure (WBS)?The PMBOK Guide describes a WBS as “a deliverable-orientedhierarchical decomposition of the work to be executed by the projectteam, to accomplish the project objectives and create the requireddeliverables…the WBS defines the total scope of the project.” Like theScope statement, the WBS serves as a foundational agreement amongThe stakeholders and project team members regarding project scope.Work that doesn’t fit into the WBS does not fit within the project.• Projects are normally too big to manage and WBS breaks the projectworks into smaller more manageable components arranged accordingto deliverables.• This is a top down effort, break works down from top to bottom.
Create WBS• Each level of WBS is a smaller piece of the levelabove.• The top most level of each WBS is the total projectitself.• Work is broken down to the lowest level possible tillfurther division is logically not possible or the workcan be confidently estimated and scheduled.• WBS represents total work specified in the currentapproved scope statement and shall be revised if amajor scope change occurs.
Create WBS Cont’• Work package: lowest level WBS component which canbe scheduled, cost estimated, monitored and controlled.• WBS Structure can be organized by- Phases- Major deliverables- Subprojects e.g. contracted work.• Beware of excessive decomposition. It can lead to non-productive management effort, inefficient use ofresources (performing work)
Control Accounts• Unique identifiers are normally taken from theorganization’s code of accounts to track cost by category.• Each item in WBS need to be estimated, resourced,budgeted and controlled. If management need to measuresPerformance (budget & time), WBS shall be linked toaccounting system.• Normally control account is placed in WBS for this purpose.• Control account is placed above work package level in WBS• Each control account may have more than one workpackage but one work package shall only be linked to onecontrol account.
100% Rule• Each WBS levels represents a breakdown of WBSlevel above.• Lowest level in the WBS is called work package• If the lowest levels are rolled up to the higher levels,the total must represents the total work of theproject. This is called 100% rule.• This ensures that no work is left out or no extra workis added.
Develop WBS100% rule: WBS includes 100% of the work defined by project scope and capture ALL deliverables (external,internal, interim) in term of work to be completed including project management.
Develop WBS: Tool & TechniqueDecomposition• This technique involves breaking down thedeliverables into smaller, more manageablecomponents of work.• The idea here is to break down the deliverables to apoint where you can easily plan, execute, monitorand control, and close out the project deliverables.• Each level of WBS is a more detailed definition of thelevel above it.
WBS DictionaryIn order to more clearly define the work necessary for project completion the WBS Dictionary isused. The WBS Dictionary includes but not limited to the following: level, WBS element, elementname, description of work, deliverable.
WBS DictionaryWBS dictionary should include the following elements for eachcomponent of the WBS:• Code of accounts identifier• Description of the work of the component• Organization responsible for completing the component• List of schedule milestones• Required resources• Cost estimates• Quality requirements• Criteria for acceptance• Technical references• Contract information
Scope BaselineThe Scope Baseline is a component of theproject management plan and include thefollowing:• Project scope statement• Work Breakdown Structure (WBS)• WBS Dictionary
Verify Scope• It is the process of obtaining formalacceptance of the project scope by thestakeholders.• It requires reviewing deliverables and workresults to ensure that all were completedcorrectly and satisfactorily• If the project is terminated early, the scopeverification process should establish anddocument the level and extent of completion
Verify Scope Cont’d.• Scope verification is concerned withacceptance of deliverables but Quality controlis concerned with meeting the qualityrequirements specified.• Quality control is normally performed prior toscope verification but both may be performedin parallel.
Verify Scope : Tools & TechniquesInspection• To complete scope verification, the work must be inspected.• This may require measuring, examining, and testing theproduct to prove it meets customer requirements.• Inspection usually involves the project manager and customerinspecting the project work for verification, which in turnresults in acceptance.• Depending on the industry, inspection may also be known as:Reviews, Product Reviews, Audits & Walkthroughs.
Verify Scope : Outputs• Accepted Deliverables: This is a formal process that requiressigned documentation of the acceptance by the sponsor orcustomer.• Change Requests : those completed deliverables that havenot been accepted are documented , along with the reasonsfor non-acceptance . Those deliverables may require a changerequest for defect repair .• Project Document Updates : Project documents that may beupdated include any documents that define the product orreport status on product completion
Control Scope• Monitor the status of project and productscope and manages any changes to scopebaseline.• Is part of integrative change control.• Uncontrolled scope changes result in scopecreep.
Control ScopeThe process of monitoring the status of the project and product scope and managing changes tothe scope baseline.
Control Scope – Tools &Techniques1. Variance Analysis :• Project performance measurements are used to assessthe magnitude of variation from the original scopebaseline .• Important aspects of the project scope control includedetermining the cause and the degree of variancerelative to the scope baseline and deciding whethercorrective or preventive action is required
Control Scope - Outputs1.Work Performance Measurements: Measurements can includeplanned vs. actual technical performance or other scopeperformance measurements. This information is documented andcommunicated to the stakeholders.2. Change Requests : change requests to the scope baseline or othercomponents of the project management plan. Change requests caninclude preventive or corrective actions or defect repairs .3. Project Management Plan Updates :• Scope Baseline Updates• Other Baseline Updates4. Project Document Updates : requirements documentation update,requirements traceability matrix updates , etc
Scope ChangeChanges to scope will likely require that you repeatsome of the project planning processes and makeany needed adjustments, including updating theproject documents. Scope changes require an updateto the project scope statement. This may require anupdate to the WBS and WBS dictionary as well.Scope baseline updates are part of the projectmanagement plan updates.
Scope Change Cont’dScope changes include any changes to the projectscope as defined by the agreed upon WBS. This inturn might require changes or updates to projectobjectives, costs, quality measures or controls,performance measurements baselines, or time in theform of schedule revisions. Scope changes almostalways affect project costs and/or require schedulerevisions
You are the project manager of a project.You have just completed the CollectRequirements and Define Scope. Whatshould you do next?A. Control ScopeB. Create WBSC. Value analysisD. Verify ScopeQUESTION NO: 1
QUESTION NO: 2A summary WBS is usually developed in the:A. close-out phaseB. Conceptual phaseC. implementation phaseD. planning phase
QUESTION NO: 3The work that must be done in order to delivera product with the specified features andfunctions is:A. Project verificationB. Project scopeC. Project controlD. Product scope
QUESTION NO: 4The project manager is assigned in the?A. Management PlanB. SOWC. Charter (contract)D. Planning Stage
QUESTION NO: 5You are a project manager for Dutch Harbor Consulting. Yourlatest project involves the upgrade of an organizations operatingsystem on 236 servers. You performed this project under contract.You are in the closing process and know that product verificationis for what purpose?A. To verify that all the work was completed correctly and satisfactorilyB. To evaluate project goals and ensure that the product of the projectmeets the requirementsC. To verify the goals of the project and ensure that the product of theproject is completeD. To evaluate all the work of the project and compare the results toproject scope
TIME MANAGEMENTThe PMBOK states that Project TimeManagement is the Knowledge Area that“includes the processes required toaccomplish timely completion of the project.
TIME MANAGEMENTProject Time Management Processes:• Activity Definition• Activity Sequencing• Activity Resource Estimating• Activity Duration Estimating• Schedule Development• Schedule Control
Process Groups & Time ManagementProcess Groups & Time ManagementActivitiesActivitiesInitiating PlanningPlanning Executing ControllingControlling ClosingActivity DefinitionActivity DefinitionActivity SequencingActivity SequencingResource EstimatingResource EstimatingDuration EstimatingDuration EstimatingScheduleScheduleDevelopmentDevelopmentSchedule ControlSchedule Control
Project Time Management Processes• Activity definition: Identifying the specific activities that the projectteam members and stakeholders must perform to produce theproject deliverables.• Activity sequencing: Identifying and documenting the relationshipsbetween project activities.• Activity resource estimating: Estimating how many resources aproject team should use to perform project activities.• Activity duration estimating: Estimating the number of work periodsthat are needed to complete individual activities.• Schedule development: Analyzing activity sequences, activityresource estimates, and activity duration estimates to create theproject schedule.• Schedule control: Controlling and managing changes to the projectschedule.211
Define Activity• Involves identifying and documenting the work thatis planned to be performed• This process identifies the deliverables at the lowestlevel of the work breakdown structure (WBS), calledthe work package• The work package is then broken down into smallercomponents called schedule activities*These provide a basis for estimating, scheduling, executing, andmonitoring and controlling the project work
1.Define Activity1.Define ActivityInputs01. ScopeBaseline02. OPA03. EEF04. Constraints05. AssumptionsOutputs01. Activity list02. ActivityAttributes03. Milestones listTools & Techniques01. Decompositions02. Templates03. Rolling WavePlanning04. Expert JudgmentIdentifying the specific activities that must be performed to produce the variousproject deliverables.
– The Project Management Plan contains theschedule management plan, which providesguidance on the development and planning ofschedule activities.– Decomposition: The process of subdividing theproject work packages into smaller, moremanageable components called scheduleactivities.
Define Activity ( Tools & Techniques)Templates• A standard activity list or a portion of an activity listfrom a previous project can often be used as atemplate.Rolling Wave Planning• A form of progressive elaboration planning wherethe work to be accomplished at the near term isplanned in detail at a low level of the WBS, whilethe work far in the future is planned at relativelyhigh levels of the WBS.
Rolling Wave Plan• Detailed decomposition of work may not bepossible for works that will be completed inthe future since project team is not fullyaware of details of work. Team waits for themore details and only work in the near futureis decomposed. This is called Rolling WavePlanning• Work in the near term is elaborated in moredetail than work to performed in the future.
Expert judgment, in the form of project teammembers with prior experience developing projectscope statementMilestone list (Output) are typically majoraccomplishments of the project and mark thecompletion of major deliverables or some otherkey event in the project. For example, approval andsign-off on project deliverables might beconsidered milestones.
Define Activity (Outputs)• An activity list is a tabulation of activities to be included ona project schedule. The list should include:– The activity name– An activity identifier or number– A brief description of the activity• Activity attributes provide more information about eachactivity, such as predecessors, successors, logicalrelationships, leads and lags, resource requirements,constraints, imposed dates, and assumptions related to theactivity.
Sequence Activities• Activity list prepared are now logically sequenced.• A dependency or relationship between activities established.• Dependencies shall be determined in order to use criticalpath analysis.• Can be performed by using manual or automated techniquesor project management software
Dependency Determination• Mandatory dependencies: Also referred to as hard logic Requiredas per contract or inherent in the nature of the work. Usually involvephysical limitations (e.g., you cannot build the ceiling until walls areconstructed) Are determined by the project management team duringthe activity sequencing process.• Discretionary dependencies: Also referred to as preferred logic,preferential logic, or soft logic Are determined by the projectmanagement team during the activity sequencing process Should beused with care and well documented, since they may limit laterscheduling options.
External Dependency• External dependencies: Are determined by theproject management team during the activitysequencing process. Involve a relationshipbetween project and non-project activitiessuch as activities outside the project team’scontrol (e.g., dependence on external sourcesfor deliveries, environmental factors governedby statutes, etc
Network Diagrams• Network diagrams are the preferredtechnique for showing activity sequencing.• A network diagram is a schematic display ofthe logical relationships among, or sequencingof, project activities.• Two main formats are the Arrow andPrecedence diagramming methods.224
Precedence Diagramming MethodPrecedence Diagramming Method(PDM)(PDM)• Activities are represented by boxes• Arrows show relationships between activities• More popular than ADM method as used by PM software• Better at showing different types of dependencies• In PDM, finish-to-start is the most common relationship
Precedence DiagrammingMethod(PDM)Includes four types of dependencies or logical relationships:– Finish-to-start (FS)– Finish-to-finish (FF)– Start-to-start (SS)– Start-to-finish (SF)The PDM is also called Activity–On-Node (AON) and it does notuse dummy activities nor does it allow for loops orconditional branches.
Arrow Diagramming Method (ADM)Arrow Diagramming Method (ADM)• Uses arrows to represent activities• Connects activities with nodes• Uses only finish-to-start dependencies• May require dummy activities to define relationships
PERT( Program Evaluation and ReviewTechnique)• Program Evaluation and Review Technique (PERT) has the followingcharacteristics.– It uses three estimates per activity - optimistic, pessimistic and mostlikely– It can be drawn only using AOA diagrams– It can have dummy events• PERT utilizes more information than CPM as it considers the "Pessimistic"and "Optimistic" values in addition to the "Most Likely" value in itscalculations. The following are formula used by PERT -Mean = (P + 4M + O)/6Standard Deviation = (P-O)/6Variance = ((P-O)/6)2• GERT is another type of network diagram. It can support looping.
Applying Leads and Lags• A Lead may be added to start an activity before thepredecessor activity is finished. Ex: Furniture may beinstalled 2 weeks prior to completion of painting (Finishto start relationship with 2 weeks lead)• Lag introduces waiting period between activities. Lagintroduces a delay in the successor activity.
Sequence Activities : Outputs1. Project Schedule Network Diagrams :• It can be produced manually or by using a projectmanagement software• Project Schedule Network Diagrams are not finalschedule For the exam, know that, in its pure form, thenetwork diagram shows just dependencies.2. Project Document Updates
Estimate Activity Resources• All projects, from the smallest to the largest, requireresources. Before estimating activity durations, you musthave a good idea of the quantity and type of resourcesthat will be assigned to each activity• The term resources in this case does not mean justpeople; it means all the physical resources required tocomplete the project.• People• Equipment• Materials
3. Estimate Activity Resources3. Estimate Activity ResourcesInputs01. Activity list02. Activity Attribute03. Resource calendars04. EEF05. O.P.AOutputs01. Activity ResourceRequirements02. Resource BreakdownStructure (R.B.S)03. Project Document UpdatesTools & Techniques01. Expert judgment02. Alternative Analysis03. Published Estimating Data04. Bottom Up Estimating05. Project Management Software-this process is concerned with determining the types of resources needed and inwhat quantities for each schedule activity.
Resource Calendars( Input)- is a calendar that is usedTo reflect specific working hours, vacations, leaves ofabsence, and planned personal time for individualresources. Resource calendars can be used for humanresources as well as equipment.Alternative Analysis (Tool & Technique)-is usedWhen thinking about the methods you might use toaccomplish the activities your resources have beenassigned. Many times, you can accomplish an activity inmore than one way, and alternatives analysis helpsdecide among the possibilities.
Estimate Activity ResourcesEstimate Activity Resources(Tools &Techniques)Published Estimating data- Estimating data mayinclude organizational guidelines, industry rates orestimates, production rates, and so on.Bottom Up Estimating-Bottom-up estimating isA process of estimating individual scheduleactivities or costs and then adding thesetogether to come up with a total estimate for thework package.
Activity Resource EstimatingActivity Resource Estimating(Outputs)(Outputs)Activity Resource Requirements – Activity resourcerequirements provide an estimate of the type and quantityof resources needed to complete activities. The ScheduleDevelopment process considers when the requiredResources will be used.Resource Breakdown Structure (RBS) - The ResourceBreakdown Structure (RBS) displays the hierarchicalstructure of the categories and types of resources needed.
Estimate Activity Durations• Here the network diagram is updated by estimating durationfor each activities.• The Activity Duration Estimating process attempts to estimatethe work effort and number of work periods needed tocomplete each schedule activity.• A person or team most familiar with work of the project shallestimate duration to make it more accurate.• All data and assumptions used for estimation shall bedocumented for future analysis (remember this, we need thisinformation during the risk management process)
4.4. Estimate Activity DurationsInputs01. Activity list02. Activity Attribute03. Activity ResourceRequirements04. Resourcecalendars05. Project ScopeStatement06. O.P.A07. E.E.FOutputs01. Activity durationestimates02. Project DocumentupdatesTools & Techniques01. Expert judgment02. Analogousestimating03. ParametricEstimating04. Three PointEstimates04. Reserve Analysis(contingency)- estimating the number of work periods that will be needed to completeindividual activities.
Analogous EstimatingAnalogous Estimating, is a form of expert judgmentand is also known as Top-down Estimating.Analogous estimates are typically less timeconsuming and less costly than other estimatingtechniques, but it’s also less accurate.
Estimate Activity Durations : Tools &TechniquesParametric Estimating• Parametric estimate uses a statistical relationship betweenhistorical data and other variables.• More accurate than analogous estimate• Example : A resource will take 20hrs per module and hence1000 modules will take 50hrs (50X20 = 1000hrs)• Estimation is done by multiplying quantity of work by laborhours per unit of work.
Three-Point EstimatesThree-point estimates, as you can probablyguess, use three estimates that whenaveraged come up with a final estimate. Thethree estimates you’ll use in this technique are themost likely estimate, an optimistic estimate, and apessimistic estimate.Three-point estimates are needed for PERT estimates and Monte Carlo simulations
Three-Point EstimatesPERT analysis calculates An Expected t(E)activity duration using a weighted average ofthree estimates : t(E) = [to+4tm+tp]/6• PERT analysis consider estimationuncertainties and risks and hence accuracy ofestimate is improved.
Reserve AnalysisReserve time, also called buffers, time reserves, orcontingency reserve in the PMBOK Guide, means aportion of time that is added to the activity toaccount for schedule risk or uncertainty. You mightchoose to add a percentage of time or a set numberof work periods to the activity or the overallschedule.For example, you know it will take 100 hours to run new cable, you also know that sometimes you hit problemareas when running the cable. To make sure you don’t impact the project schedule, you build in a reserve time of 10percent of your original estimate to account for the problems you might encounter.
Activity Duration EstimatesYou use the inputs and tools and techniques toestablish these estimates. Activity durationestimates are an estimate of the required workperiods needed to complete the activity. This is aquantitative measure usually expressed in hours,weeks, days, ormonths.
Develop Schedule• The Develop Schedule process is the heart ofthe Planning process group.• The creation of the project schedule isiterative. It’s rare for a schedule to getcreated, approved, and implemented withoutsome iterative examination, arrangement, andmanagement input—though on smallerprojects it may be possible.
Develop ScheduleSchedule Management Plan• A Guide to the PMBOK notes that the schedulemanagement plan (a subsidiary of the projectmanagement plan) is produced as part of theDevelop Project Management Plan process andcontains the criteria for formatting, developing,and controlling the project schedule.
Develop Schedule (tools &Techniques)Schedule Network Analysis• Schedule network analysis is a technique thatgenerates the project schedule. It employs aschedule model and various analyticaltechniques, such as critical path method,critical chain method, what-if analysis, andresource leveling to develop the schedule.
Develop Schedule (Tools &Techniques)Critical path method (CPM) is a schedule network analysistechnique. It determines the amount of float, or scheduleflexibility, for each of the network paths by calculating theearliest start date, earliest finish date, latest start date, andlatest finish date for each activity.The critical path (CP) is generally the longest full path on theproject. Any project activity with a float time that equals zerois considered a critical path task.
Floats• Floats are not the same as lead or lag.• Lead or lags are introduced (manually) to correct thesequence while float is calculated in CPM method• Float for all activities on critical path will be zero value.• A forward pass through the network diagram determines theearly start and finish dates.• A backward pass determines the late start and finish dates
Types of Floats (or Slacks)Float time is also called slack time and there are threetypes of float:• Total Float – The amount of time an activity can be delayedwithout delaying the project end date or milestone.• Free Float – The amount of time an activity can be delayedwithout delaying the early start date of successor activity.• Project Float – The amount of time a project can be delayedwithout delaying an externally imposed project completiondate (other than calculated by CPM) by customer.
Calculating Early and Late Start andFinish Dates
Critical Chain MethodCritical chain method is a schedule network analysistechnique that will modify the project schedule byaccounting for limited or restricted resources. After theproject schedule network diagram is constructed usingduration estimates, dependencies, and constraints,resource availability is entered into the scheduling tool.The modified schedule is calculated and you’ll find that itoften changes the critical path. The new critical pathshowing the resource restrictions is called the criticalchain.
Schedule CompressionSchedule compression is the method of shortening theproject schedule without changing the scope. Need forcompression occurs if a customer need a dateprior to the end date shown in original schedule or tobring back a project schedule back to baseline.• Crashing – This approach adds more resources to activities onthe critical path to complete the project earlier. Crashingalmost always result in increased cost. Many options areconsidered and the option with maximum compression withminimum cost impact is selected.
Schedule Compression• Fast Tracking –Critical activities that wouldnormally be done in sequence are allowed tobe done in parallel or with some overlap. Fasttrack may result in rework and increases risk.Communication requirements increasesduring fast tracking.
Develop Schedule: OutputsThe schedule can be displayed in a variety ofways:• Project Schedule Network Diagram• Gantt Charts/ Bar Charts• Milestone ChartsThe purpose of the Schedule Development process is todetermine the start and finish date for the each of the projectactivity. The project schedule should be approved andsigned off by stakeholders and functional managers. This assures that they have read the schedule, understand the dates and resourcecommitments, and will likely cooperate
Control ScheduleSchedule Control is concerned with:1. Determining the current status of the projectschedule2. Influencing the factors that create schedule changes.3. Determining that the project schedule has changed,and4. Managing the actual changes as they occur.
6. Control Schedule6. Control ScheduleInputs1.ProjectManagementPlan2. Project Schedule3. Work PerformanceInformation4. O. P.AOutputs1. Work performanceMeasurements2. Project ManagementPlan Updates3. OrganizationalProcess AssetsUpdates4. Change Requests5. Project DocumentUpdatesTools & Techniques1. Performance reviews2. Variance Analysis3. Project managementsoftware4. Resource Leveling5. What if Scenarios6. Adjusting Leads &Lags7. Schedule Compression8. Scheduling Tool- controlling changes to the project schedule.
Control Schedule ( Tools & Techniques)• Performance Reviews- Performance reviewsmeasure , compare, and analyze schedule performancesuch as actual start and finish dates, percent complete, andthe remaining duration for the work in progress .• Variance Analysis- Variance analysis is a key factorin monitoring and controlling project time because thistechnique helps determine variances in schedule start andend dates.
Control Schedule : OutputsThe Schedule Control process has the following outputs:1. Work Performance Measurements- CalculatedSchedule Variance (SV) and Schedule Performance Index(SPI) are documented and communicated withStakeholders.2. Organizational process asset updates (lessonslearned)3. Change Requests – Approved schedule baselines shallbe only updated through integrative change control. SV &SPI may result in change requests for baseline update forbaseline update.4. Project Management Plan Update5. Project Document updates – Schedule data
Schedule Control• Perform reality checks on schedules.• Allow for contingencies.• Don’t plan for everyone to work at 100 percentcapacity all the time.• Hold progress meetings with stakeholders and beclear and honest in communicating scheduleissues.
Solution: SD = (P-O)/6 = (7-3)/6 = 2/3Source: PMP Exam Prep by Rita MulcahyQ1. The estimate for a task is O = 3days, P = 7 days, M = 4 days. Whatis the standard deviation of thetask?A. 5/6 of a dayB. 2/3 of a dayC. 1 ½ daysD. 5 2/3 days
Q2. A project has three critical paths.Which of the following BESTdescribes how this affects theproject?A. It makes it easier to manageB. It increases the project riskC. It requires more peopleD. It makes it more expensiveSource: PMP Exam Prep by Rita Mulcahy
Source: PMP Exam Prep by Rita MulcahyQ3. You are taking over a project and determinethe following: Task B has an early finish ofday 3, a late finish of day 6, and an early startof day 2. Task L is being done by a hard-to-get resource. The CPI is 1.1 and the SPI is 0.8.Based on the information above, what wouldyou be most concerned about?A. FloatB. ResourcesC. CostD. Schedule
Project Cost ManagementProject Management Training
Project Cost ManagementAccording to PMBOK, Project Cost Managementincludes the processes involved in estimating,budgeting, and controlling so that the project can becompleted within the approved budget costs. ProjectCost Management include the following processes:• Estimate cost- The process of developing anapproximation of the monetary resources needed tocomplete project activities.
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