Pmp Complete Notes

1.7
PROJEC
T LIFE
CYCLES
 A project life cycle refers to the series of phases
that a project goes through from its initiation
through to its closure. Project life cycles are either
predictive or adaptive and may be sequential,
iterative, or overlapping. Within the project life
cycle, there is typically a development life cycle that
consists of phases that encompass the
development of a product or service.

1.8.1
INITIATIN
G
PROCES
S
GROU
P
 The Initiating Process Group consists of those
processes performed to define a new project or a
new phase of an existing project by obtaining
authorization to start the project or phase. Within
the Initiating processes, the initial scope is defined
and initial financial resources are committed.
Internal and external stakeholders who will interact
and influence the overall outcome of the project are
identified.
 The key purpose of this Process Group is to
align the stakeholders’ expectations with the
project’s purpose.

1.8.2
PLANNIN
G
PROCES
S
GROU
P
 The Planning Process Group consists of those
processes performed to establish the total scope of
the effort, define and refine the objectives, and
develop the course of action required to attain
those objectives. The Planning processes develop
the project management plan and the project
documents that will be used to carry out the project.
 The key benefit of this Process Group is to
delineate the strategy and tactics as well as the
course of action or path to successfully
complete the project or phase.

1.8.3
EXECUTIN
G
PROCES
S
GROUP
 The Executing Process Group consists of those
processes performed to complete the work
defined in the project management plan to
satisfy the project specifications. This Process
Group involves coordinating people and
resources, managing stakeholder expectations,
as well as integrating and performing the
activities of the project in accordance with the
project management plan.
 A large portion of the project’s budget will be
expended in performing the Executing Process
Group processes.

1.8.4
MONITORING
AND
CONTROLLIN
G
PROCES
S
GROU
P
 The Monitoring and Controlling Process Group
consists of those processes required to track,
review, and orchestrate the progress and
performance of the project; identify any areas in
which changes to the plan are required; and
initiate the corresponding changes.
 The key benefit of this Process Group is that
project performance is measured and analyzed at
regular intervals, appropriate events, or exception
conditions to identify variances from the project
management plan.

1.8.4
MONITORING
AND
CONTROLLIN
G
PROCES
S
GROU
P
 Controlling changes and recommending
corrective or preventive action in anticipation of
possible problems,
 Monitoring the ongoing project activities against the
project management plan and the project
performance measurement baseline, and
 Influencing the factors that could circumvent
integrated change control or configuration
management so only approved changes are
implemented.

1.8.5
CLOSIN
G
PROCES
S
GROU
P
 The Closing Process Group consists of those
processes performed to conclude all activities
across all Project Management Process Groups to
formally complete the project, phase, or contractual
obligations.
 This Process Group also formally establishes the
premature closure of the project. Prematurely
closed projects may include, for example: aborted
projects, cancelled projects, and projects having a
critical situation.

1.8.5
CLOSIN
G
PROCES
S
GROU
P
At project or phase closure, the following may
occur:
 Obtain acceptance by the customer or sponsor to
formally close the project or phase,
 Conduct post-project or phase-end review,
 Record impacts of tailoring to any process,
 Document lessons learned,
 Apply appropriate updates to organizational
process assets,

1.8.5
CLOSIN
G
PROCES
S
GROU
P
 Archive all relevant project documents in the
project management information system (PMIS)
to be used as historical data,
 Close out all procurement activities ensuring
termination of all relevant agreements, and
 Perform team members’ assessments and
release project resources.

1.9 ROLE OF
THE
KNOWLEDG
E
AREA
S
 The 49 project management processes identified in
the PMBOK® Guide are further grouped into ten
separate Knowledge Areas. A Knowledge Area
represents a complete set of concepts, terms, and
activities that make up a professional field, project
management field, or area of specialization. These
ten Knowledge Areas are used on most projects
most of the time. Project teams should utilize these
ten Knowledge Areas and other Knowledge Areas,
as appropriate, for their specific project.

1.9.1 ROLE
OF
TH
E
KNOWLEDG
E
AREA
S
4.Project Integration Management
5. Project Scope Management
6. Project Schedule Management
7. Project Cost Management
8. Project Quality Management
9. Project Resource Management
10. Project Communications Management
11. Project Risk Management
12. Project Procurement Management
13. Project Stakeholder Management

2.1
ORGANIZATIONA
L CULTURES
AND
STYLES
Organizational culture is shaped by the common
experiences of members of the organization and most
organizations have developed unique cultures over
time by practice and common usage. Common
experiences include, but are not limited to:
 Shared vision, mission, values, beliefs, and
expectations;
 Regulations, policies, methods, and
procedures;
 Motivation and reward systems;

2.1
ORGANIZATIONA
L CULTURES
AND
STYLES
 Risk tolerance;
 View of leadership, hierarchy, and authority
relationships;
 Code of conduct, work ethic, and work hours; and
 Operating environments.

2.2
ORGANIZATIONA
L
COMMUNICATIONS
 Stakeholders and project team members can also
use electronic communications (including e-mail,
texting, instant messaging, social media, video and
web conferencing, and other forms of electronic
media) to communicate with the project manager
formally or informally.

2.3 ORGANIZATIONAL
STRUCTURES
 Organizational structure is an enterprise
environmental factor, which can affect the availability
of resources and influence how projects are
conducted. Organizational structures range from:
 Functional
 Projectized,
 Matrix structures

2.4.1 ORGANIZATIONAL
PROCESS ASSETS (OPA)
Processes and
Procedures
The organization’s processes and procedures for conducting
project work include, but are not limited to:
 Initiating and Planning: Guidelines, organizational standards
such as policies, product and project life cycles, and quality
policies and procedures, Templates.
 Executing, Monitoring and Controlling: Change control
procedures, Financial controls procedures, Risk control
procedures.

2.5
PROJECT
MANAGEMEN
T
OFFIC
E
A project management office (PMO) is a
management structure that standardizes the project-
related governance processes and facilitates the
sharing of resources, methodologies, tools, and
techniques. The responsibilities of a PMO can range
from providing project management support functions
to actually being responsible for the direct
management of one or more projects.

2.5
PROJECT
MANAGEMEN
T
OFFIC
E
There are several types of PMO structures in
organizations, each varying in the degree of
control and influence they have on projects
within the organization, such as:
 Supportive. Provide a consultative role to projects
by supplying templates, best practices, training,
access to information and lessons learned from
other projects. This type of PMO serves as a
project repository. The degree of control provided
by the PMO is low.

2.5
PROJECT
MANAGEMEN
T
OFFIC
E
 Controlling. Controlling PMOs provide support
and require compliance through various means.
Compliance may involve adopting project
management frameworks or methodologies, using
specific templates, forms and tools, or conformance
to governance. The degree of control provided by
the PMO is moderate.
 Directive. Directive PMOs take control of the
projects by directly managing the projects. The
degree of control provided by the PMO is high.

3 ROLE OF
THE
PROJEC
T
MANAGE
R
3.1 Competencies of the Project Manager
 Knowledge—Refers to what the project manager
knows about project management.
 Performance—Refers to what the project
manager is able to do or accomplish while
applying his or her project management
knowledge.
 Personal—Refers to how the project manager
behaves when performing the project or related
activity. Personal effectiveness encompasses
attitudes, core personality characteristics, and
leadership, which provides the ability to guide the
project team while achieving project objectives and
balancing the project constraints.

3.2 ROLE OF THE PROJECT
MANAGER
Interpersonal Skills
Leadership Political and Cultural
awareness
Motivation Trust Building
Influencing Coaching

3.4 PROJECT
STAKEHOLDERS
Project Stakeholders
• Sponsor
• Customers and users
• Sellers
• Business partners
• Organizational groups
• Functional managers
• Other stakeholders

3.5 PROJECT
TEAM
• Project management staff
• Project staff
• Supporting experts
• User or Customer Representatives
• Sellers
• Business partner members
• Business partners

3.5
PROJEC
T
TEA
M
3.5.1 Composition of Project Teams
 Dedicated. In a dedicated team, all or a
majority of the project team members are
assigned to work full-time on the project.
 Part-Time. Some projects are established as
temporary additional work, with the project
manager and team members working on the
project while remaining in their existing
organizations and continuing to carry out their
normal functions.

TIPS FOR THE PMP
EXAM
01
Skip lengthy and
difficult questions,
especially at the
beginning of the
exam.
02
Mark doubtful
questions for review
in a second or third
pass through the
exam.
03
Respond to any
skipped questions in
the second pass
through the exam.
04
Respond to any
marked questions
after all skipped
questions have
been answered.

PROJECT MANAGEMENT PLAN VS. PROJECT
DOCUMENTS

WHATIS GOLD
PLATING?
Gold plating refers to the addition of any feature not considered in
the original scope plan at any point of the project since it
introduces a new source of risks to the original planning i.e.
additional testing, documentation, costs, timelines, etc.
Gold Plating is thinking to make our customers happy but according PMI
as PM we need to avoid the Gold Plating because this will increase our
customers expectations.

5.4.3
CREAT
E WBS:
OUTPUTS
WBS Dictionary:
Code of account identifier, Description of work,
Assumptions and constraints, Responsible
organization, Schedule milestones, Associated
schedule activities, Resources required, Cost
estimates, Quality requirements, Acceptance criteria,
Technical references, and Agreement information.

Inspection includes activities such as
measuring, examining, and validating to
determine whether work and deliverables
meet requirements and product acceptance
criteria.
5.5.2 VALIDATE SCOPE: TOOLS
AND TECHNIQUES
1. Inspection 2. Decision Making (Voting)

5.6.1
CONTRO
L SCOPE:
INPUTS
1. Project Management Plan
 Scope baseline, Scope management
plan, Change management plan,
Configuration management plan,
Requirements management plan.
2. Project Documents (Lessons Learned,
Requirements, Requirements Matrix)
3. Work Performance Data
4. Organizational Process Assets

5.6.2
CONTRO
L SCOPE:
TOOLS
AND
TECHNIQUE
S
1. Data Analysis (Variance Analysis)
Variance analysis is a technique for determining the
cause and degree of difference between the
baseline and actual performance. Project
performance measurements are used to assess the
magnitude of variation from the original scope
baseline. Important aspects of project scope control
include determining the cause and degree of
variance relative to the scope baseline and deciding
whether corrective or preventive action is required.

AGIL
E CONCEPTS
FOR
SCOP
E
MANAGEMEN
T
 Product Backlog: It is a list of all functional and
nonfunctional work identified for the project. It is a
list of the work that needs to be done, the items are
removed from the list as they are completed.
Sprint Backlog is a subset of the Product Backlog,
there you can find the items to be complete in the
coming sprint.
 Product Owner: The Product Owner is the
responsible for developing the Backlog and
prioritize all the backlog items based on the
business value for the organization.

It is a component of the project management plan that
establishes the criteria and the activities for developing,
monitoring, and controlling the schedule. The schedule
management plan may be formal or informal, highly detailed or
broadly framed, based upon the needs of the project, and
includes appropriate control thresholds.
6.1.3 PLANSCHEDULE
MANAGEMENT:
OUTPUTS
1. Schedule
Management Plan

6.2.2
DEFIN
E
ACTIVITIES:
TOOLS AND
TECHNIQUE
S
1. Expert Judgment
2. Decomposition
3. Rolling Wave Planning
 Rolling wave planning is an iterative planning
technique in which the work to be accomplished in
the near term is planned in detail, while the work in
the future is planned at a higher level. It is a form of
progressive elaboration.
4. Meetings

6.2.3
DEFIN
E
ACTIVITIE
S:
OUTPUTS
1. Activity
List
 The activity list is a comprehensive list that
includes all schedule activities required on the
project. The activity list also includes the activity
identifier and a scope of work description for each
activity in sufficient detail to ensure that project
team members understand what work is required
to be completed. Each activity should have a
unique title that describes its place in the schedule,
even if that activity title is displayed outside the
context of the project schedule.
2. Activity
Attributes

6.2.3
DEFIN
E
ACTIVITIE
S:
OUTPUTS
3. Milestone List
 A milestone is a significant point or event in a
project. A milestone list identifies all project
milestones and indicates whether the milestone is
mandatory, such as those required by contract, or
optional, such as those based on historical
information. Milestones have zero duration
because they represent a significant point or event.
4.Change Requests
5.Project Management Plan Updates (Schedule,
Cost)

6.3.1 SEQUENCE ACTIVITIES:
INPUTS
• Schedule Management Plan
• Scope Baseline
2. Project Documents
• Activity Attributes
• Activity List
• Assumption Log
• Milestone List
1. Project Management Plan

6.3.2
SEQUENC
E
ACTIVITIE
S: TOOLS
AND
TECHNIQUE
S
1. Precedence Diagramming Method (PDM)
 Finish-to-start (FS). An activity must finish before
the successor can start. This is the most
commonly used relationship. Example: You
must finish digging a hole before you can start the
next activity of planting a tree.
 Finish-to-
finish
(FF). An activity must finish
before the successor can finish. Example: You
must finish testing
documentation.
before you can finish

6.3.2
SEQUENC
E
ACTIVITIE
S: TOOLS
AND
TECHNIQUE
S
1. Precedence Diagramming Method (PDM)
 Start-to-start (SS). An activity must start before
the successor can start. Example: You must
start designing and wait for two weeks’ lag in
order to have enough of the design
completed to start coding.
 Start-to-finish (SF). An activity must start before
the successor can finish. This dependency is
rarely used.

6.3.2
SEQUENC
E
ACTIVITIE
S: TOOLS
AND
TECHNIQUE
S
Example of Lag:
 You must wait 3 days after purchasing a book in
Amazon before you can start preparing the class
material based on the book content.
 This is an example of a lag of 3 days (Prepare
class material 3 days after the book was
purchased.)
Purchase
Book
Prepare
class
3 Days

6.3.2
SEQUENC
E
ACTIVITIE
S: TOOLS
AND
TECHNIQUE
S
Example of Lead:
 You need to start coding before all the designing
activity is complete. According to the designer you
can start the coding activity 4 hours before all the
design is complete.
 This is an example of a lead of 4 hours (Start
coding 4 hours before designing completes.)
Designing Coding
-4
hours

6.4.3 ESTIMATE ACTIVITY
DURATIONS: TOOLS AND
TECHNIQUES
Three-Point Estimating
Formulas:
 Triangular Distribution (Simple Average)
 (P + O + M)/3
 Beta Distribution (Weighted Average)
 (P + O + 4M)/6

 Jim says that for developing a standard report he will need 10
hours, if he got everything clear and can do it faster could take 5
hours, but if he will have issues with the access or any impediment
could take 12 hours. Using Three-points the triangular distribution
what could be a good estimate duration for this task?
12 + 5 + 10 / 3 = 27 / 3 = 9 hours
Using the Beta Distribution would be:
12 + 5 + 4(10) / 6 = 57 / 6 = 9.5 hours
TECHNIQUES
Example

T-Shirt Sizing: T-shirt sizing as the name suggests
is simply estimating with sizes like what you
would find on a T-shirts’ label from Extra Small
(XS) through to Extra Large (XL). Example: For
an online movie service, the team has
identified six product features:
 Rate movies
 Browse movies
 Rent movies
 Sell movies
 Review movies
 Sort movies by year
TECHNIQUES - AGILE

PLANNIN
G POKER
Planning poker: (also called Scrum poker) helps agile teams estimate the time and effort
needed to complete each initiative on their product backlog. The name from this gamified
technique is planning poker because participants use physical cards. These cards, which look
like playing cards, estimate the number of story points for each backlog story or task up for
discussion.

 Activity duration estimates may include some indication of the
range of possible results. For example:
 2 weeks +- 2 days, which indicates that the activity will take at least
eight days and not more than twelve (assuming a five- day
workweek); and
 15 % probability of exceeding three weeks, which indicates a high
probability—85 %—that the activity will take three weeks or less.
2.Basis of Estimates (The amount and type of additional details
supporting the duration estimate vary by application area.)
3.Project Documents Updates (Activity Attributes, Assumption Log,
Lessons Learned Register)
DURATIONS: OUTPUTS
1. Duration
Estimates

6.5.2 DEVELOP SCHEDULE: TOOLS
AND TECHNIQUES
1. Schedule Network Analysis
2. Critical Path Method
 It is the longest path(s) in the
network diagram. By definition all
the activities in the critical path
have zero float.

6.5.2
DEVELO
P
SCHEDULE:
TOOLS AND
TECHNIQUE
S
Resource Optimization Techniques
 Resource Smoothing. It is a modified form of
resource leveling, where resources are leveled
only within the limits of the float of their
activities, so the completion dates of activities are
not delayed.

6.5.2
DEVELO
P
SCHEDULE:
TOOLS AND
TECHNIQUE
S
Data Analysis
 What-If Scenario Analysis. Is the process of
evaluating scenarios in order to predict their effect,
positively or negatively, on project objectives. This
is an analysis of the question, “What if the situation
represented by scenario ‘X’ happens?” A schedule
network analysis is performed using the schedule
to compute the different scenarios, such as
delaying a major component delivery, extending
specific engineering durations, or introducing
external factors, such as a strike or a change in the
permitting process.

6.5.2
DEVELO
P
SCHEDULE:
TOOLS AND
TECHNIQUE
S
Data Analysis
 Simulation. Monte Carlo Analysis is the
most popular simulation technique.
This uses
computer software to simulate the outcome of a
project, based on the three-point estimates
(optimistic, pessimistic, and most likely) for
each activity and the network diagram.
The simulation can tell you:
 The probability of completing the project on any
specific day.
 The probability of completing the project for any
specific cost.
 The probability of any activity being on the
critical path.
 An indication of the overall project risk.

7.1.3 PLAN
COST
MANAGEMENT:
OUTPUTS
1. Cost
Management
Plan
The cost management plan is a component of the
project management plan and describes how the
project costs will be planned, structured, and
controlled. The cost management processes and
their associated tools and techniques are
documented in the cost management plan.

1. Expert Judgment
2. Cost Aggregation
 It is the process of collecting individual cost estimates into a whole. Specifically, cost estimates are aggregated by
work packages, then into higher components (typically monitored by control accounts) of the work break down
structure (WBS), and then for the entire project.
3. Data Analysis (Reserve Analysis: Contingency and Management Reserves)
4. Historical Information Review: Review of historical information can be used to develop parametric or
analogous estimates. Historical information my include project characteristics to evolve mathematical
models to forecast the total project cost.
5. Funding Limit Reconciliation: Funding limit reconciliation consists of accommodating the
expenditure of funds to established funding limits for a specific period of time. Any variances between
expenditures and funding limits can result in rescheduling work. To prevent this, any date constraints
for work should be included in the work schedule.
6. Financing
7.3.2 DETERMINE BUDGET:
TOOLS AND TECHNIQUES

7.3.4 DETERMINE
BUDGET: QUESTIONS
1. An important technique used in Determine Budget process is:
2. Which type of reserve is included in the Cost Baseline?
a) Management Reserve
b) Contingeny Reserve
3. Which reserves is attributed to unforeseen risks that have not
been identified?
4. An important output of the Determine Budget process is the:

2. Data Analysis: Earned Value Analysis
 Planned Value (PV)
 Earned Value (EV)
 Actual Cost (AC)
 Schedule Variance (SV) = EV - PV
 Cost Variance (CV) = EV - AC
 Schedule Performance Index (SPI) = EV / PV
 Cost Performance Index (CPI) = EV / AC
7.4.2 CONTROL COSTS:
1. Expert Judgment

2. Data Analysis: Variance analysis. Variance analysis, as used in
EVA, is the explanation (cause, impact, and corrective actions) for cost
(CV = EV – AC), schedule (SV = EV – PV), and variance at completion
(VAC = BAC – EAC) variances. Cost and schedule variances are the
most frequently analyzed measurements.

2. Data Analysis: Forecasting
 EAC forecast for ETC work performed at the budgeted rate.
 Equation: EAC = AC + (BAC – EV)
 EAC forecast for ETC work performed at the present CPI.
 Equation: EAC = BAC / CPI
 EAC forecast for ETC work considering both SPI and CPI
factors.
 Equation: EAC = AC + [(BAC – EV) / (CPI × SPI)]

2. Data Analysis: Reserve Analysis
 During cost control, reserve analysis is used to monitor the status of
contingency and management reserves for the project to determine if
these reserves are still needed or if additional reserves need to be
requested.

3. To-Complete Performance Index (TCPI)
The equation for the TCPI based on the BAC:
• (BAC – EV) / (BAC – AC).
The equation for the TCPI based on the EAC:
 (BAC – EV) / (EAC – AC).

QUALIT
Y
Quality is the degree to which a set of inherent
characteristics fulfills requirements.
A project is said to meet quality expectations, when all
the project requirements agreed in the beginning of the
project are met, and the resulting product is usable.

CONCEPTS RELATED
TO QUALITY
 Prevention over Inspection
 Is it better to inspect work to find problems or to
prevent them in the first place? Which takes less effort and
is less costly? Remember that quality must be planned
in, not inspected in! The concept of prevention
over inspection was advocated by quality theorist Philip
Crosby. You may see exam questions that test your
understanding that failure to plan quality into a project
will lead to problems later in the project.

8.2.2 MANAGE
QUALITY:
TOOLS
AND
TECHNIQUE
S
5.
Audits
 Quality Audit is a structured, independent
process to determine if project activities comply
with organizational and project policies,
processes, and procedures. Quality Audits are
typically performed by individuals outside of the
project, such as internal or external auditors.
6. Design for X (DfX)
 Includes a set of technical guidelines applied
during design of a product to optimize a specific
design aspect (e.g. reliability, assembly, usability,
safety).

9.4.2 DEVELOP TEAM: TOOLS AND
TECHNIQUES Tuckman Ladder
 Forming. This phase is where the team members meet and learn about the project
and their formal roles and responsibilities. Team members tend to be independent
and not as open in this phase.
 Storming. During this phase, the team begins to address the project work, technical
decisions, and the project management approach. If team members are not
collaborative or open to differing ideas and perspectives, the environment can become
counterproductive.
 Norming. In this phase, team members begin to work together and adjust their work
habits and behaviors to support the team. The team members learn to trust each other.
 Performing. Teams that reach the performing stage function as a well-organized unit.
They are interdependent and work through issues smoothly and effectively.
 Adjourning. In this phase, the team completes the work and moves on from the project.
This typically occurs when staff is released from the project as deliverables are completed
or as part of the Close Project or Phase process.

9.4.2 DEVELOP TEAM: TOOLS AND
TECHNIQUES
Shu-Ha-Ri Model of Skill Mastery
Shuhari is a Japanese martial art concept which describes the
stages of learning to mastery.
Shu - Follow the rules, obeying the rules to keep or
maintain.
Ha - Move away from the rules, to detach or break free.
Ri - Unconsciously finding an individual path, means to go
beyond or transcend.
Shu ha ri is roughly translated to “first learn, then detach, and
finally, transcend.”

9.5.2 MANAGE TEAM: TOOLS AND
TECHNIQUES
Conflict Management:
 Withdraw/avoid. Retreating from an actual or potential conflict situation; postponing the issue to
be better prepared or to be resolved by others. This is referred to as a Lose-Leave situation.
 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.
This is referred to as a Lose-Yield situation
 Compromise/reconcile. Searching for solutions that bring some degree of satisfaction to all
parties in order to temporarily or partially resolve the conflict. This approach occasionally results
in a Lose-Lose situation.
 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. This approach
often results to a Win-Lose situation.
 Collaborate/problem solve. Incorporating multiple viewpoints and insights from differing
perspectives; requires a cooperative attitude and open dialogue that typically leads to
consensus and commitment. This approach can result in a Win-Win situation.

TECHNIQUES
Management and leadership styles:
Some of the primary styles are:
Directing
Facilitating
Coaching
Supporting
Influencing
Delegating
Servant

TECHNIQUES
The following ones are effective when the team is dealing with issues
such as resolving conflicts, negotiating, prioritizing, or other decision-
making activities:
Consultative
Consensus
Democratic or participative
Bureaucratic
Analytical

TECHNIQUES
These ones are additional styles based on some challenging
situations:
Charismatic
Autocratic
Consultative-autocratic
Laissez-faire
Driver

TECHNIQUES
Powers of the Project Manager
One of the major difficulties for a project manager is getting people to
cooperate and perform. This is a major issue in a matrix organization. The
different types of power for the project managers include:
 Formal (legitimate): This power is based on the position of the project
manager
 Reward: This power stems from giving rewards
 Penalty (Coercive): This power comes from the ability to penalize team
members
 Expert: This power comes from being the technical expert or even the
project management expert
 Referent: Referent is the power of charisma and fame. This power comes from
another person liking the project manager, respecting him, or wanting to be like
him.

10. COMMUNICATIONS MANAGEMENT:
KEY CONCEPTS
Communication is the exchange of information, intended or involuntary. The information
exchanged can be in the form of ideas, instructions, or emotions. The mechanisms by
which information is exchanged can be in:
 Written form. Either physical or electronic.
 Spoken. Either face-to-face or remote.
 Formal or informal (as in formal papers or social media).
 Through gestures. Tone of voice and facial expressions.
 Through media. Pictures, actions, or even just the choice of words.
 Choice of words. There is often more than one word to express an idea; there can be
subtle differences in the meaning of each of these words and phrases.

KEY CONCEPTS
Communication activities have many dimensions, including but not limited to:
 Internal. Focus on stakeholders within the project and within the organization.
 External. Focus on external stakeholders such as customers, vendors, other projects,
organizations, government, the public, and environmental advocates.
 Formal. Reports, formal meetings (both regular and ad hoc), meeting agendas and
minutes, stakeholder briefings, and presentations.
 Informal. General communications activities using emails, social media, websit ,
and informal ad hoc discussions.

KEY CONCEPTS
 Hierarchical focus. The position of the stakeholder or group with respect to the project
team will affect the format and content of the message, in the following ways:
 Upward. Senior management stakeholders.
 Downward. The team and others who will contribute to the work of the project.
 Horizontal. Peers of the project manager or team.
 Official. Annual reports; reports to regulators or government bodies.
 Unofficial. Communications that focus on establishing and maintaining the profile and
recognition of the project and building strong relationships between the project team and
its stakeholders using flexible and often informal means.
 Written and oral. Verbal (words and voice inflections) and nonverbal (body
language and actions), social media and websites, media releases

10.1
PLAN
COMMUNICATIONS
MANAGEMENT
Important considerations that may need to be
taken into account include, but are not limited to:
 Who needs what information, and who is
authorized to access that information;
 When they will need the information;
 Where the information should be stored;
 What format the information should be stored in;
 How the information can be retrieved; and
 Whether time zone, language barriers, and cross-
cultural considerations need to be taken into
account.

 Status report: This report describes where the project currently stands in relation to the
performance measurement baseline.
 Progress report: A progress report describes what has been accomplished.
 Trend report: This report examines project results over time to see if performance is
improving or deteriorating.
 Forecasting report: This report predicts future project status and performance.
 Variance report: A variance report compares actual results to baselines.
 Earned value report: An earned value report integrates scope, cost, and
Schedule measurements to assess project performance.
10.2.2 MANAGE COMMUNICATIONS:
Types of
Reports

 Progress metrics: Reports such as Cumulative Flow Diagrams and
burnup charts are used to assess performance.
 Retrospective findings: This report is used to inspect, adapt, and
improve projects and team performance.
 Lessons learned: Lessons learned report of performance and may be
used for future projects.
Types of Reports

Interpersonal and Team Skills
 Active Listening
 Conflict Management
 Cultural awareness
 Meeting Management
 Networking
 Political awareness

10.3.3 MONITOR
COMMUNICATIONS:
OUTPUTS
Work Performance
Information
Change Requests
Project Management Plan
Updates (Communications,
Stakeholder engagement)
Project Documents Updates
Issue Log
Lessons Learned Register
Stakeholder Register

11. RISK MANAGEMENT:KEY
CONCEPTS
According to the PMBOK® Guide, once a negative risk event occurs, it's considered an issue and is no longer a
risk.
Risk attitude consists of three elements:
Risk appetite is the level of uncertainty the stakeholders are willing to accept in exchange for the
potential positive impacts of the risk.
Risk tolerance is that balance where stakeholders are comfortable taking a risk because the known
benefits to be gained outweigh what could be lost—or just the opposite.
Risk thresholds are measures or levels of uncertainty or impact the organization is willing to
operate within.
Risk Trigger: An event, condition, or something that generate the occurrence of a risk. They are
warning signs or symptoms that a risk event is about to occur.

11.5.2 PLANRISK RESPONSES:
Strategies for Threats
Escalate
Avoid.
Transfer.
Mitigate.
Accept.
Strategies for
Opportunities
Escalate
Exploit.
Share.
Enhance.
Accept.

12.1.1 PLAN
PROCUREMENT
MANAGEMENT:INPUTS
5. Enterprise Environmental Factors
6. Organizational Process Assets
• Fixed-price contracts (FFP, FPIFC, FP-EPA)
• Cost-reimbursable contracts (CPFF, CPIF, CPAF, CPF or CPPC)
• Time and Material Contracts (T&M)

 Firm Fixed Price Contracts (FFP). Most commonly used. Cost
increase due performance is responsibility of the seller.
 Fixed Price Incentive Fee Contracts (FPIF). Gives the buyer and
seller some flexibility in that it allows for deviation from performance
 Fixed Price with Economic Price Adjustment Contracts (FP-EPA),
considered for big projects that last many years and factors like
inflation or cost increases or decreases affect the project. The FP- EPA
contract is intended to protect both buyer and seller from external
conditions beyond their control
12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS
Contract Types (Fixed-Price):

Contract Types (Cost-Reimbursable):
 Cost Plus Fixed Fee Contracts (CPFF). The seller is reimbursed for all allowable costs for
performing the contract work and receives a fixed-fee payment calculated as a percentage
of the initial estimated project costs.
 Cost Plus Incentive Fee Contracts (CPIF). The seller is reimbursed for all allowable costs for
performing the contract work and receives a predetermined incentive fee based upon
achieving certain performance objectives as set forth in the contract.
 Cost Plus Award Fee Contracts (CPAF). The seller is reimbursed for all legitimate costs, but the
majority of the fee is earned only based on the satisfaction of certain broad subjective
performance criteria defined and incorporated into the contract.
 Cost Plus Fee (CPF) or Cost-Plus Percentage of Costs (CPPC). It requires the buyer to pay for
all costs plus a percentage of costs as a fee.
12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS

12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS
Contract Types (T&M):
 Time and material contracts (T&M). Time and material contracts
(also called time and means) are a hybrid type of contractual
arrangement with aspects of both cost-reimbursable and fixed- price
contracts. They are often used for staff augmentation, acquisition of
experts, and any outside support when a precise statement of work
cannot be quickly prescribed.

Contract Types Examples:
 Firm Fixed Price Contracts (FFP).
 Contract = $US 1’000,000
 Fixed Price Incentive Fee Contracts (FPIF).
 Contract = $US 1’000,000
 For every month early the project is finished, an additional US$ 10,000 is paid to the
seller.
 Fixed Price with Economic Price Adjustment Contracts
 Contract = $US 1’000,000, but a price increase will be allowed in year 2 based on the
US Consumer Price Index report for year 1. Or
 Contract = $US 1’000,000, but a price increase will be allowed in year 2 to account for
increases in specific material costs
12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS

 Cost Plus Fixed Fee Contracts (CPFF).
 Contract = Cost plus a fee of US$100,000
 Cost Plus Incentive Fee Contracts (CPIF).
 Contract = US$ 500,000 target cost plus US$ 50,000 target fee. The buyer and seller
share any cost savings or overruns at 80% to the buyer and 20% to the seller.
 Cost Plus Award Fee Contracts (CPAF).
 Contract = Cost plus a base fee plus award for meeting buyer-specified performance criteria.
Maximum award available is US$ 50,000.
 Cost Plus Fee (CPF) or Cost-Plus Percentage of Costs (CPPC).
 Contract = Cost plus 10 percent of costs as fee.
12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS

12.1.1 PLAN
PROCUREMENT
MANAGEMENT: INPUTS
 Time and Material Contract:
 Contract = $100 per hour plus expenses or materials at cost.
Or
 Contract = $100 per hour plus materials at $5 per linear meter of
wood.

 Request for information (RFI). An RFI is used when more information on the goods and services to be
acquired is needed from the sellers. It will typically be followed by an RFQ or RFP.
 Request for quotation (RFQ). An RFQ is commonly used when more information is needed on how
vendors would satisfy the requirements and/or how much it will cost.
 Request for proposal (RFP). An RFP requests a detailed proposal that includes information on
price, how the work will be accomplished, who will do it (along with resumes, in some cases), and
company experience.
 Statement of Work (SOW). Describes the goods or services you want to procure from outside the
organization.
 Invitation for bid (IFB), Sometimes called a request for bid (RFB), usually requests a total price to do
all the work. Think of an IFB as a form of RFP where the work described in the procurement statement
of work is detailed enough for bidders to determine a total price.
12.1.3 PLAN
PROCUREMENT
MANAGEMENT: OUTPUTS

12.1.3 PLAN
PROCUREMENT
MANAGEMENT: OUTPUTS
Source Selection Criteria:
Understanding of need
Overall or life-cycle cost
Technical capability Risk
Management approach
Technical approach
Warranty
Financial capacity
Production capacity and interest
Business size and type
Past performance of sellers
References
Intellectual property rights
Proprietary rights

13.2.2
PLA
N
STAKEHOLDE
R
ENGAGEMENT
: TOOLS AND
TECHNIQUES
Stakeholder engagement assessment matrix
 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.

13.4.2
MONITOR
STAKEHOLDE
R
ENGAGEMEN
T: TOOLS AND
TECHNIQUES
Interpersonal and Team Skills
Active Listening
Cultural Awareness
Leadership
Networking
Political Awareness
Meetings

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