The document summarizes key concepts from the Project Management Body of Knowledge (PMBOK) published by the Project Management Institute (PMI). It outlines the five process groups of initiating, planning, executing, monitoring and controlling, and closing. It also describes the ten knowledge areas of integration, scope, time, cost, quality, human resources, communication, risk, procurement, and stakeholders. Several project management terms and principles are defined including the triple constraint, project charter, work breakdown structure, and change management. The purpose is to share foundational PMI project management principles and how they can be applied to project roles.

1. PMI Project Management Principles
A Point of Reference
(based on the 5th Edition PMBOK® Guide)
By Tom Tiede

2. Agenda
• What is PMI and the PMP?
• Why PMI Project Management Principles are
Useful to Know
• A Few Basic PMI Definitions
• Five Process Groups
o Initiating
o Planning
o Executing
o Monitoring and Controlling
o Closing
• Ten Knowledge Areas
o Integration
o Scope
o Time
o Cost
o Quality
o Human Resources
o Communication
o Risk
o Procurement
o Stakeholders
• Project Management Terms, such as:
o Triple Constraint
o Project Charter
o Project Management Plan
o Work Breakdown Structure (WBS)
o Predecessor Relationships
o Earned Value Management
o Gold Plating
o Responsibilities Assignment Matrix
o Forming, Storming, Norming, Performing,
Adjourning
o Communication Noise
o Risk Probability and Impact Matrix
o Contract Type
o Stakeholder Power vs. Interest Grid
• Code of Ethics and Professional Conduct
o Honor
o Responsibility
o Respect
o Fairness
o Honesty
This material will cover the following project management topics:
2

3. WHAT IS MEANT BY PROJECTS MGT.
• Mgt of set up from Infra and eqip. to set up of plant.
• Long term series of activities
• Big Capital outlay
• Construction work in different phase
• ODC transportation
• Expansion of existing facility.
• Shifting of existing facility
• Definite start and End period
• SIP in financial terms.
• Assignments
• Arrnaging a party
• Coordination with people
• Time availability.
• Date availability.
• Food and beverages availability
• Sight seeing.
• Other facilities
• Budget for the party
• Transportation
• Project can be a short term or long term project.

4. What is PMI and the PMP?
The Project Management Institute (PMI) is the world’s largest
membership association for the advocacy of Project and Program
management.
• Over 400,000 current members across 180 countries
• Over 600,000 PMI certification holders
• Their most widely recognized certification is the PMP (Project Management
Professional). The PMP credential recognizes your:
o Experience,
o Education, and
o Competency to lead and manage projects
• Earning the PMP credential requires:
o A bachelor’s degree and 4,500 hours of documented project management experience, or a
secondary degree and 7,500 hours of documented project management experience
o 35 hours of certified project management training
o Passing the certification exam
• Regardless of your inclination to pursue PMP certification, PMI project management
principles apply to your role as a project leader or stakeholder
The purpose of this material is to share a few PMI project management
principles that apply to your role as a project leader or stakeholder
4

5. Leveraging prescribed PMI project management principles reduces the
risk and impact of costly project omissions, changes, and errors.
Cost of Resolving Project Omissions, Changes, or Errors
(Illustrative)
Why Is This Useful to Know?
Project
Initiation
Project
Planning
Project
Execution
Project
Closure
The PMI approach places great emphasis on project initiation and planning when
requirements are clearly defined and agreed upon and the full scope of the project is planned
5

6. Let’s Start with a Few Definitions
• Portfolio – Projects, programs, and operations managed as
a group to achieve strategic objectives
• Program - A group of projects and program activities
managed in a coordinated way
• Project – a temporary endeavor undertaken to create a
unique product, service, or result
• Project Management – the application of knowledge,
skills, tools, and techniques to project management activities
to meet project requirements
• Project Manager – the person authorized by the
performing organization to direct the team accountable for
realizing project objectives
• Project Stakeholder – includes all project team members
and anyone impacted by or impacting the project
• Triple Constraint – the foundation of project management
is balancing scope, time, and cost. Quality is at the center of
the triple constraint
Portfolio
Programs
Projects
A few basic definitions:
Quality
6
Time Cost
Scope

7. Initiating Planning Executing &
Controlling
Closing
A process group is a logical grouping of activities, inputs, tools,
techniques, and outputs required for any type of project.
Monitoring
Project Management Process Groups
Define a new project or
new phase, identify
stakeholders, and
obtain authorization
“Authorize the Work”
Develop an integrated
project management
plan to attain project
objectives
“Plan the Work”
Complete the work and
satisfy project
objectives
“Work the Plan”
Track and review
project progress and
performance; manage
variance and change
“Control the Plan”
Finalize all activities
and formally close the
project or phase
“End the Work”
• Project Charter
• Stakeholder Register
• Project Mgt. Plans &
Related Documents
- Scope
- Requirements
- Schedule
- Cost
- Quality
- Human Resources
- Communication
- Risk
- Procurement
- Change
- Stakeholders
• Project Deliverables
• Work Performance
Data
• Team Performance
Assessments
• Project
Communications (e.g.
status reports)
• Selected Suppliers &
Agreements
• Change Requests
• Issue Log
• Change Logs
• Approved Change
Requests
• Work Performance
Information
• Schedule Forecasts
• Cost Forecasts
• Updates to Project
Plan
• Quality Control
Measurements
• Verified Deliverable
• Accepted Deliverables
• Final Product,
Service, or Result
(i.e. purpose of
project)
• Closed Procurement
(e.g. formal signature
of acceptance)
7
Activities
Key
Output
s
Process
Groups

8. Applying Project Management Process Groups
Time
Initiating
The five process groups overlap and follow a basic cycle of “plan, do,
check, act” until project closure.
Process Group Overlap
Executing
Planning
Monitoring & Controlling
Closing
Initiating
Planning Executing
Monitoring &
Controlling
Closing
Change
?
Yes
8
Complete
?
Yes
No
No
“Plan, Do, Check, Act”

9. Knowledge Areas
A project manager is responsible for applying and managing the following
ten knowledge areas:
Identify, define, combine, unify and coordinate activities within the Project Management Process
Groups
Integration
Ensure the project includes all work required to complete the project successfully
Scope
Manage the timely completion of the project
Time
Cost
Quality
Human Resources
Communication
Risk
Procurement
Manage the planning, estimating, budgeting, financing, funding, monitoring, and controlling of
cost to enable the project to be completed within the approved budget
Determine quality policies , objectives, and responsibilities so that the project will satisfy the needs
for which it was undertaken
Organize, manage, and lead the project team, including the identification of roles, responsibilities,
required skills, and reporting relationships
Ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring and disposition of project information
Identify and assess risks, plan responses, and control risk to increase the likelihood and impact of
positive events and decrease the likelihood and impact of negative events on the project
Purchase or acquire and control products, services, or results needed from outside the project
team
Identify people, groups, or organizations that could impact or be impacted by the project; analyze
expectations, and develop strategies to engage stakeholders in decisions and activities
Stakeholders
9

10. 9
Activity within each knowledge area is applied based on the appropriate
process group.
Knowledge Areas & Process Groups
Process Groups
Knowledge Areas
(Below)
Initiating Planning Executing
Monitoring &
Controlling
Closing
Integration Applicable Applicable Applicable Applicable Applicable
Scope Applicable Applicable
Time Applicable Applicable
Cost Applicable Applicable
Quality Applicable Applicable Applicable
Human Resources Applicable Applicable
Communication Applicable Applicable Applicable
Risk Applicable Applicable
Procurement Applicable Applicable Applicable Applicable
Stakeholders Applicable Applicable Applicable Applicable
Each shaded intersection has defined activities, inputs,
tools & techniques, and outputs

11. C h a n g e
R e q u e s t s
D e v e l o p
P r o je c t
C h a r t e r
D e v e l o p
P r o je c t Mg t . P l a n
D i r e c t & M a n a g e
P r o je c t W o r k
M o n i t o r & C o n t r o l
P r o je c t W o r k
P e r f o r m
I n t e g r a t e d C h a n g e
C o n t r o l
U p d ate
s
R e p o r t s
C h a n g e
R e q u e s t s
C l o s e
P r o je c t o r P h a s e
U p d a t e s
C h a n g e
L o g
A p p r o v e d
C h a n g e
R e q u e s t
s
F i n a l
P r o d u c t
S e r v i c e, o r
R e s u l t s
P r o je c t S O W
B u s i n e s s
C a s e
A g r e e m e n t s
A p p ro v e
d
C h a n g e
R e q u e s t s
P r o je c t M g t .
P l a n
P r o je c t
C
h a r te r
P r o je c t M a n a g e m e n t
Pl a n
U p d a t e s
P r o je c t
D o c u me n t s ,
D e l i v e r a b l e s , &
W o r k
P e r f o r ma n c e
D a t a
1. Integration Management - Process Activities
Integration management connects all of the knowledge areas together
from beginning (project initiation) to end (project closure).
Develop a document that formally
authorizes the project
Define, prepare,
coordinate and
integrate all
subsidiary plans into
a comprehensive
plan
Lead and perform the work to
accomplish project objectives
Track, review, and report progress
to meet performance objectives
Review all change requests,
approve changes, and manage
changes to deliverables and the
project management plan
Finalize all activities across all
Process Groups to formally
complete the project or phase
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
11

12. • A typical charter will identify:
o Business need or justification
o Scope (high level)
o Objectives (such as the intended product, service, or result)
o Requirements (high level)
o Risks (high level)
o Assumptions and constraints
o Stakeholders (primary)
o Timing (anticipated)
o Costs (anticipated)
• The charter must be signed by someone who can invest authority for the project
(typically senior management or a sponsor)
A project charter formally authorizes the project and the project manager
to apply resources to project activities. Per PMI, without a charter, there
is no project.
12
Project Charter
Project Charter

13. The project management plan is the collection of all plans and related
documents pertaining to planning, executing, monitoring, controlling, and
closing the project.
Project Management Plan
Project
Management
Plan
Procurement
Change
Scope
Cost
Process
Improvement
Risk
Stakeholders
Configuration
Schedule
Quality
Communication
13

14. 13
P l a n
S c o p e M a n a g e m e n t
C o l l e c t
R e q u i r e m e n t s
D e f i n e
S c o p e
C r e a t e
W B S
V a l i d a t e
S c o p e
C o n t r o l
S c o p e
S c o p e
B a s e l i n e
( S c o p e B a s e l i n e ,
W B S ,
W B S D i
c t i o n a r y )
P r o j e c t
D o c u m e n t s
U p d a t e
s
W o r k s h o p s
I n t e r v i e w s
B e n c h m a r k i n g
C o n t e x t
D i a g r a m s
D e c o m p o s i t i o n
o f W o r k
C h a n g e
R
I n s p e c t i o n
P r o j e c t
S c o p e
S t a te m e n
t
R e q s
D o c u m e n t a t i o n
R e q s
T r a c e a b i l i t y
M a tr i x
S c o p e M g t ; .
P l a n
R e q s M g t .
P l a n
C h a n g e
R e q u e s t s
P r o j e c t
C h a r t e r
This area includes collecting requirements, defining scope, creating the
work breakdown structure (WBS), and validating and controlling scope.
2. Scope Management - Process Activities
Project Scope is the work performed to deliver a product, service,
Determine,
document, and
manage
stakeholder
needs and
requirements to
meet objectives
Create a plan that documents how
the project scope will be defined,
validated, and controlled
Develop a
detailed
description of
the project
and product
Subdivide project
deliverables into
smaller, more
manageable
components
Gain formal
acceptance of
completed project
deliverables
Monitor
status of the
project scope
and manage
changes to
the scope
baseline
e q u e s t s A c c e p t e d
D e l i v e r a b l e s
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
or result that satisfies specified features and functions
Note, additional inputs, outputs, tools and techniques not depicted may apply
Scope

15. Work Breakdown Structure (WBS)
Deliverable 1
Work
Packages
Deliverable 2
Work
Packages
Control
Account
Planning
Packages
Work
Packages
The WBS is the decomposition of the work to be performed. The output is
called the Scope Baseline.
Scope Baseline:
• Scope Statement – description of project scope, major deliverables, assumptions, and
constraints
• WBS – hierarchical decomposition of the total scope of work
• WBS Dictionary – provides details regarding the deliverables, activities, and scheduling
information of each component of the WBS
Illustrative WBS
Project Title
Used when
insufficient detail is
available at the
work package level
Break down the
work into the
smallest level for
which cost and time
can be assessed and
administered
15

16. Plan
Schedule
Ma n a g e m e n t
Def ine
A ct ivitie
s
Se q u enc
e
A ct ivitie s
E s t ima te
Activity Re s o u rc e s
E s t ima te
Activity Durations
De v e lo p
Schedule
Control
Schedule
Schedule
Baseline
Project
Schedule
Project
Calendars
Exp.
J u d g me nt
D e co
m p o sit io n
Rolling W a v e
Planning
P D M
De p endencies
Leads/Lags
Exp.
J u d g me nt
B o t t o m Up
P MI S
Exp.
J u d g me nt
A n a lo gous
P a ramet ric
3 Point
Reserve Anal.
Critical P a th
C o m p re ss io
n Re s ourc e
O p tim iza tio n
P MI S
Project Schedule
Ne t wo rk
Dia g ra ms
Activity
Re s o u rc e
Re q uirement
s RB
S
Activity Du ra tion
Estimate
s
Schedule Mg t .
Plan
Activity
Mile s t o ne
List
S c h edule
Forecasts
Project
Charter
S c ope
Baseline
Time management includes all activity related to developing and
managing the project schedule.
3. Time Management – Process Activities
Establish the policies,
procedures, and
documentation for planning,
developing, managing,
executing, and controlling
the project schedule
Define and document specific
actions to be perf
produce project de
List
ormed to
liverables
Identify and document
relationships among project
activities
Estimate the type and quantities of
material, human resources, or suppliers
required to perform each activity
Estimate the number of work periods
needed to complete individual activities
with estimated resources
Analyze activity sequences, durations,
resource requirements, and schedule
constraints to create the project schedule
Monitor the
status of project
activities to
update project
progress and
manage
changes to the
schedule
baseline to
achieve the plan
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
16

17. Below are a few of many terms project managers should know when
developing and managing a project schedule.
Time (Schedule) Management Terms
PMI Terms Descriptions
3-Pt. Estimating Based on estimated Pessimistic (P), Optimistic (O), and Most Likely (M) durations
Analogous Estimating High level, top down estimate based on similar projects (usually by a SME - subject matter expert)
Bottom-Up Estimating Estimate at the lowest level of the WBS (level 3) and then roll up for the total project estimate
Parametric Estimating Based on an existing, comparable parameter (e.g. $/ft. in the same neighborhood)
Reserve Analysis Contingency (buffer based on known risk) & include in project budget or Managerial (buffer based on unknown risks)
Rolling Wave Planning An iterative technique used when future details aren't known; near term is planned in detail; future is higher level
Predecessor
Relationships
Finish to Start (FS) Finish to Finish (FF) Start to Start (SS) Start to Finish (SF)
Default relationship; B cannot
start until A is finished
B cannot finish until A is
finished
B cannot start until A starts
Rare, A starts before B
finishes (e.g. when replacing
an old system B with a new
system A)
A B
A
B
A
B
A
B
Free Slack The latest an activity can start without delaying next activities
Total Slack The latest an activity can start without delaying project finish date
Float Often referred to as the same as Slack
Lag Lag (a delay) = the successor must wait due to some delay after the predecessor is complete
Lead Lead (an accelerant) = the successor can begin before the predecessor is complete
Schedule Compression Crashing or fast tracking the schedule to adjust the schedule to align with the plan
Fast Tracking Compression technique based on overlapping sequential activities (risky)
Resource Leveling Adjusting peaks and valleys to create a level usage of resources
Resource Smoothing Adjusting peaks and valleys to create a level usage of resources AND also accounts for individual resource limitations
17

18. Plan
Cost Management
Estim at
e
Costs
Determin
e
Budget
Control
Costs
Cost
Baseline
Project
Funding
Requirement
s
Work Performance
Info Cost
Forecasts
Change
Requests
Updates
Analogo u
s
Param etri
c Bottom
Up 3
Point
Reserve
Exp.
Judgment
Aggregation
Reserve
Analysis
Funding
LImits
Earned Value
TCPI
Forecasting
PMIS
Reserve
Anal.
Cost Mgt.
Plan
Activity Cost
Estimates
Basis of
Estimates
IR
R
NP
V
ROI
Opportunity
$
Payback
This area includes defining how project costs will be managed, estimating
activity costs, determining the budget, and controlling costs.
4. Cost Management – Process Activities
Establish the
policies,
procedures, and
documentation
for planning,
managing,
expending, and
controlling
project costs
Develop an approximation
of the monetary resources
needed to complete
project activities
Aggregate estimated costs of
individual activities or work
packages to establish an
authorized cost baseline
Monitor the status of the
project to update project
costs and manage changes to
the cost baseline
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
18

19. EVM is a means of measuring project cost and schedule vs. the plan.
Earned Value Management (EVM)
Dollars
Cost Baseline (“S” Curve)
Approved Time-Phased Budget
BAC
ETC
Estimate to Complete (ETC) = cost to complete
the project based on current spending efficiency
EAC
Estimate at Completion (EAC) =
current projected final cost based on
current spending efficiency
Variance at Completion (VAC)
Budget at Completion (BAC) = total
project budget
Cost Variance
(CV)
Schedule Variance
(SV)
Cost Performance (CPI) = EV/AC
Schedule Performance (SPI) = EV/PV
Actual Cost (AC)
at point in time
AC
PV
Point in Time
EV
Earned Value (EV) = budgeted cost for work actually completed
Planned Value (PV) = budgeted cost for work scheduled
Time
19

20. Plan
Qualit
y
Management
Perform
Quality
Assurance
Contro
l
Qualit
y
Cost/Benefit
Cost of
Quality 7
Basic Tools
Benchmarkin
g Sampling
Quality Mgt.
Plan
Process
Improvement
Pla
n
Quality Metrics
Quality
Checklists
Quality
Audits
Controls
Charts
Process
Analysis
Update
s
Verified
Deliverables
QC Measures
Validated
Changes
Measurement
s
Quality management includes identifying quality requirements and
standards, auditing requirements and control measurements, assessing
quality performance, and recommending changes, when needed.
5. Quality Management – Process Activities
Identify quality requirements
and/or standards for the
project and its deliverables,
and document how the project
will demonstrate compliance
Audit the quality requirements
and the results from quality
control measurements to ensure
appropriate standards and
operational definitions are used
Monitor and record results of
quality activities to assess
performance and recommend
necessary changes
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
20

21. Quality Management Philosophies and Principles
Quality Philosophies:
• Total Quality Management (Deming) –
proactive approach with statistical analysis
• Zero Defects (Crosby) – Do it right the first time
• Fitness for Use (Juran) – Satisfy customer
needs
• Continuous Improvement (Kaizen) – proactive
approach to process improvement
• Gold Plating – unacceptable practice of
providing more than requested
• Cost of Quality – cost of conforming is less than
cost of non-conforming
• Design of Experiments – isolate factors that
influence results
• 6 Sigma – strive for 99.9997% error free
• ISO 9000 – document what you do; do what you
document
Quality Principles:
• Define and satisfy customer needs
• Prevent rather than inspect
• Be proactive rather reactive
• Validate project processes
• Measure against approved
standards
• Continually improve
• Take accountability
PMI quality management principles are based on a few popular
philosophies.
21

22. Project managers should be familiar with common quality management
tools and terms.
Quality Management Tools and Terms
Tools Description
1. Cause and Effect Diagrams Fishbone (Ishikawa) diagram
2. Flowcharts Basic flow chart or GERT diagram with feedback loop
3. Checksheets Check list (e.g. pre-flight list to ensure you are "cockpit ready" before taking flight)
4. Pareto Diagrams Cumulative histogram (e.g. 80/20 rule)
5. Histograms Depiction of volume or frequency of occurrences of several events
6. Control Charts Depiction of process output over time with UCL & LCL at 3 sigma from mean
7. Scatter Diagrams Depicts pattern of results across two variables
Terms Description
Benchmarking Comparing actual or planned processes to comparable projects to identify best practices
Design of Experiments Variable based analysis (freeze all variables but one and assess outcome)
Statistical Sampling Using a % of the population and extrapolating the results within an acceptable confidence level
Quality Audits Identify best practices; identify gaps; share best practices; offer assistance to improve; highlight lessons learned
Process Analysis Assess process, identify root causes, alleviate root causes
Inspection Examination of work product and comparison to documented standards (e.g. reviews, audits)
85/15 Rule 85% of quality relates to mgt.; 15% is worker related
80/20 Rule 80% of problems come from 20% of the issues
Rule of 7 Must have 7 consecutive data points above or below mean to consider process "out of control"
Mean Time Before Failure MTBF, example quality metric
Mean Time to Repair MTTR, example quality metric
Grade vs. Quality Not the same; you can have a lower grade product with high quality and vice versa (e.g. automobile models)
Upper Control Limit UCL = 3 sigma above mean (average)
Lower Control Limit LCL = 3 sigma below mean (average)
Upper Specification Limit USL is customer established and can be above or below UCL
Lower Specification Limit USL is customer established and can be above or below LCL
22

23. Plan
HR Management
Acquire
Project
Team
Develop
Project
Team
Manage
Project
Team
Change
Requests
Update
s
Org Charts
Job
Descriptions
Org. Theory
Pre-
Assignme
nt
Acquisition
Negotiatio
n
Training
Team
Building
Ground
Rules
Recognition
Rewards
HR Mgt.
Plan
Projec
t
Assign
m
Staf
f
ent
s
Resource
C
alendars
Team
Performance
Assessmen
ts
Observations
Conversatio
ns Conflict
Mgt.
Performance
Appraisals
Human resource management consists of planning, acquiring, developing,
and managing the project team.
6. Human Resource Management - Process Activities
Define roles,
responsibilities,
required skills,
and reporting
relationships
Confirm availability
and obtain the
necessary team
Improve competencies,
team interaction, the
team environment, and
enhance project team
performance
Track team member
performance, provide
feedback, resolve issues,
and manage changes to
the team to optimize team
performance
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
23

24. Responsibility assignment matrix (RAM) charts such as a “RACI” let each
team member know who is responsible for each activity and deliverable.
Roles and Responsibilities
• (R) Responsible - those who do the work
• (A) Accountable - The one who:
o Is ultimately answerable for the completion of the deliverable
o Delegates the work to those responsible
o Approves the work that the responsible person provides
• (C) Consulted – those whose opinions are sought (typically subject matter experts); typically this is a two
way communication
• (I) Informed – those who are kept up-to-date on progress; typically this is a one way communication
RACI Person
Activity Ann Ben Carlos Denny
Develop Schedule A R I I
Collect Requirements I A R C
Develop Test Plan I A R C
Develop Training Plan A C I R
24

25. Project Life Cycle - Team Building & Leadership Styles
Team Building Stages
• Forming – creating the team
• Storming – team chaos as people start
working with one another
• Norming – team behavior starts to
normalize
• Performing – team performs as a unit
• Adjourning – team completes work
and disbands
Situational Leadership Styles
25
• Directing – provide specific, clear
instructions and closely supervise
• Coaching – solicit input, offer rationale
and examples
• Facilitating –maintain team progress;
delegate day-to-day control
• Supporting – support and motivate
the team to complete objectives
Project managers should be aware of typical team building dynamics and
situational leadership styles across a project life cycle.
Time
Storming Norming Performing
Forming
Directing
Adjourning
Supporting
Team Building:
Leadership Style: Coaching Facilitating
Project Life Cycle
Initiating Closing

26. Conflict Management
• Scheduling Priorities
• Scarce Resources
• Personal Work Styles
• Methodology/Details
• Cost/Budget
• Personalities
Recommended:
1. Collaborate/Problem Solve
2. Compromise/Reconcile
3. Force/Direct
Not Recommended:
1. Smooth/Accommodate
2. Withdraw/Avoid
Conflict is inevitable. A project manager should be aware of typical
sources of project conflict and recommended techniques to resolve them.
Sources of Conflict Conflict Resolution Techniques
Higher
26
Lower
Probability
of Conflict

27. Plan
Communicatio
n
Management
Manage
Communications
Communciatio
n Mgt.
Plan
Control
Communication
s
Project
Communications
Req.
Analysis
Technology
Models
Methods
Meetings
Models
Method
Systems
Reportin
g
Exp.
Judgment
Systems
Meetings
Work
Performance
Information
Change
Requests
Roughly 90% of a project manager’s job is communication.
7. Communication Management - Process Activities
Develop a
communication
approach based
on stakeholder’s
informational
needs
Create, collect,
distribute, store,
and retrieve
information
Monitor and control
communication
throughout the entire
project life cycle
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
27

28. Communication Paths
N
N N
N
•# of Communication Paths
equals [N x (N-1)]/2
• N equals # of Stakeholders
• Example: [4 x (4-1)]/2 = 6
Communication Methods
• Interactive – between two people
• Push – send to specific recipients
• Pull – recipient actively seeks information
Communication Management
Communication Types
• Active listening – receiver verifies correct
interpretation
• Effective listening – receiver observes visual
and vocal cues
• Feedback – sender receives feedback from
receiver
• Nonverbal - ~55% of communication (e.g.
body and facial language)
• Para-lingual – Voice characteristics
Project managers should be aware of the basics of effective
communication across the broad stakeholder community.
Communication Model
Sender/Encode Decode/Receiver
Transmit
Acknowledgement
Response
28
Noise
Noise

29. 28
Plan
Risk Management
Identify
Risks
Perform
Qualitative Analysis
Perform
Quantitativ
e Analysis
Plan
Risk Response
Control
Risks
Update
s
Update
s
Project
Documents
Risk Register
(Risks &
Triggers)
Risk Mgt.
Plan
Update
s
Update
s
8. Risk Management – Process Activities
Risks are possible events that could impact the project in a positive (an
opportunity) or negative (a threat) way.
Define how to
conduct risk
management
activities
Determine and document the
characteristics of risk which
may affect the project
Prioritize risks for further analysis or
action by assessing their probability of
occurrence and impact
Analyze the effect of
identified risks on overall
project objectives
Develop options
and actions to
enhance
opportunities and
reduce threats to
project objectives
Implement risk response plans, track identified
risks, monitor residual risks, identify new risks,
and evaluate risk process effectiveness
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and
techniques not depicted may apply

30. Risk Probability and Impact Matrix
Low High
High
Moderate
Moderate
Level of Impact
Probability of
Occurrence
• Share – split the responsibility
and benefit to maximize the
opportunity
• Exploit – take steps to ensure
success
• Enhance – improve the size of
the risk event and impact
• Accept – do nothing
Negative Risk Responses
• Avoid – get rid of the potential
problem
• Transfer – re-assign to another
party
• Mitigate – minimize the bad
characteristics of the risk
• Accept – do nothing
A probability and impact matrix can be used to evaluate the impact of a
risk and the probability of its occurrence.
Probability and Impact Matrix
Positive Risk Responses
The higher the combined probability and impact of the risk
event the greater the need to develop a risk response plan
30

31. Project managers should be aware of risk management terms.
Risk Management Terms
• Monte Carlo – simulation of possible outcomes
• Risk Breakdown Structure – breakdown by category (e.g. internal, external, technology,
organizational, etc.)
• Risk Trigger – an indicator that an event “could” occur
• SWOT Analysis – strengths, weaknesses, opportunities, and threats
• Expected Monetary Value (EMV) – summation of probability x impact of alternative decisions (…not
to be confused with EVM – earned value management)
• Contingency Reserves – for known risks (include in budget and schedule)
• Management Reserves – for unknown risks (excluded from baselines for budget and schedule)
• Residual Risk – risk remaining after risk response
• Secondary Risk – potential risk as a result of risk response
• Workaround – “wing it” response when other risk response plans don’t work
• Types of Risk Tolerance
o Averse – Avoids risk
o Seeker – Seeks risk
o Neutral – Middle ground
31
Risk Management

32. Procuremen
t Mgt.
Plan
Plan
Procurement
Mgt.
Conduct
Procurement
s
Control
Procurement
s
Close
Procurement
s
Work Performance
Info
Updates
Change
Requests
Procurement Mgt.
Plan SOW
RFP
Selectio
n Make
Buy
s
Criteria
Decisio
n
Selected
Suppliers
Agreements
Resource
Calendars
Exp.
Judgment
Make Buy
Analysis
Exp.
Judgment
Bidder Conf.
Ind.
Estimates
Advertising
Seller Proposals
Inspect/Audit
s Reporting
A/P
Systems
Claims
Admin.
Records Mgt.
Audits
Negotiation
s Record
Mgt.
Closed
Procurements
OPA
Udpates
Procurement management includes planning, selecting, contracting,
controlling, and closing outsourced products and services.
9. Procurement Management – Process Activities
Document
project
procurement
decisions,
specify the
approach, and
identify
potential sellers
Obtain seller response,
select a seller, and
award a contract
Manage procurement
relationship, monitor contract
performance, and make changes
and corrections as appropriate
Complete each project
procurement, including
finalizing open claims,
updating records to
reflect final results, and
archiving information
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
32

33. Project managers should be aware of the benefits and risks of different
contract types from a buyer’s perspective and a seller’s perspective.
Contract Types
Buyer’s Risk
Seller’s Risk
Low High
High Low
• (FFP) Firm Fixed Price – allows buyer to budget fixed price; requires seller to detail scope and accurately
estimate price; very common
• (FFIF) Fixed Price Incentive Fee – includes incentive to motivate seller to produce at greater speed
• (FF EPA) Fixed Price Economic Price Adjustment – compensates for year to year economic changes
• (T&M) Time and Materials – typically used for smaller initiatives
• (PO) Purchase Order – typically used for commodity items
• (CPFF) Cost Plus Fixed Fee – typically variable costs are cost-plus and predictable costs are fixed fee
• (CPIF) Cost Plus Incentive Fee – actual costs plus incentive to motivate seller to produce at greater speed
• (CPAF) Cost Plus Award Fee – actual costs plus award based on customer satisfaction with agreed criteria
• (CPPC) Cost Plus Percent of Cost – actual cost plus % of actual; the higher the cost, the higher the fees
33
FFP FPIF FP EPA T&M PO CPFF CPIF CPAF CPPC

34. Project managers should be familiar with additional procurement terms
in the table below:
Procurement Terms
Terms Description
Make or Buy Analysis Is it more practical to insource or outsource (based on a cost comparison between the two)?
Bidder Conference Prior to bid submission, offers opportunities for prospective sellers to obtain requirements clarification from buyer
Independent Estimates Used to validate proposal information
Contract (CCOLA) Must have 5 Components: Capacity, Consideration, Offer, Legal Purpose, Acceptance
Point of Total Assumption
Point at which seller is responsible for all cost overruns; PTA = (Ceiling Price - Target Price)/Buyer Share + Target
Cost
Ceiling Price % of Target Cost (e.g. Ceiling = 140% of target cost)
Target Cost Expected cost of work in the contract
Target Price Equals Target Cost + Target Profit
Share Ratio Ratio of split between buyer and seller of cost savings or overruns (e.g. 70/30)
RFP Request for Proposal, typically used for higher priced, customized services or products
RFQ Request for Quote, typically used for small dollar commodity type products
IFB Invitation to Bid, used for government sealed bids (similar to RFP)
Design Scope of Work (SOW) Buyer provides exact details; generally results in fixed price contract
Functional Scope of Work (SOW) Buyer provides functionality needed; generally results in cost plus contract
Sole Source Go direct to a supplier without any available competition (e.g. supplier holds the patent)
Single Source Go direct to a supplier although competitors are available (e.g. "preferred supplier")
Negotiation PMI prefers "win/win" negotiation approach
Standard Terms & Conditions Typical common (non-negotiable) contract items with a tight range or parameters
Special Provisions Typically added to account for changes to standard terms and conditions
Claims Administration Means of administering contested changes or disagreements regarding compensation
ADR Alternative dispute resolution (e.g. arbitration) used when claims cannot be negotiated between buyer and seller
34

35. Identify
Stakeholders
Plan
Stakeholder
Managemen
t
Manage
Stakeholde
r
Engageme
nt
Stakeholder
Register
Stakeholder Mgt.
Plan
Control
Stakeholde
r
Engageme
nt
Issue
Log
Change
Requests
Update
s
Work Performance
Info
Change
Requests
Update
s
Exp.
Judgment
Stakeholder
Analysis
(Power/
Interest)
Interperson
al Skills
Management
Skills
Stakeholder
Engagement
Matrix (Unaware,
Neutral,
Resistance,
Leading)
It is critical to project success to identify stakeholders, address their
requirements, meet their expectations, and foster their engagement.
10. Stakeholder Management – Process Activities
Identify the people,
groups, or
organizations that
could impact or be
impacted by the
decision, activity, or
outcome of the
project.
Develop appropriate management
strategies to effectively engage
stakeholders throughout the project
life cycle based on their needs and
potential impact on project success
Communicate and work with stakeholders to meet
their needs and expectations, address issues as
they occur, and foster appropriate stakeholder
engagement throughout the project life cycle
Monitor overall
project stakeholder
relationships and
adjust strategies and
plans for engaging
stakeholders
Key:
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Note, additional inputs, outputs, tools and techniques not depicted may apply
35

36. Keep Satisfied Manage Closely
Monitor Keep Informed
Stakeholder Power vs. Interest Grid
All stakeholders are different and, therefore, need to be managed
differently based on their relative authority (power) and level of concern
(interest).
Stakeholder
36
Low High
High
Moderate
Moderate
Power
Interest
Power vs. Interest Grid

37. All PMI members must agree to adhere to a high personal standard of
ethical and professional behavior.
Tenets of Code:
1. Honor
o Do what is right and honorable
o Set high standards for yourself and aspire to meet those standards is all aspects of life
2. Responsibility – Take ownership of:
o The decisions you make or fail to make
o The actions you take or fail to take
o The consequences that result
3. Respect
o Show high regard for yourself, others, and the resources (e.g. people, money, reputation,
safety) entrusted to you
o Engender trust confidence, performance excellence, and mutual cooperation in an environment
of diverse perspectives and views
4. Fairness
o Make decisions and act impartially and objectively
o Conduct yourself in a way free from competing self interest, prejudice, and favoritism
5. Honesty
o Understand the truth
o Act in a truthful manner both in your communication and in your conduct
Code of Ethics and Professional Conduct
37

38. 37
Summary
• What is PMI and the PMP?
• Why PMI Project Management Principles are
Useful to Know
• A Few Basic PMI Definitions
• Five Process Groups
o Initiating
o Planning
o Executing
o Monitoring and Controlling
o Closing
• Ten Knowledge Areas
o Integration
o Scope
o Time
o Cost
o Quality
o Human Resources
o Communication
o Risk
o Procurement
o Stakeholders
• Project Management Terms, such as:
o Triple Constraint
o Project Charter
o Project Management Plan
o Work Breakdown Structure (WBS)
o Predecessor Relationships
o Earned Value Management
o Gold Plating
o Responsibilities Assignment Matrix
o Forming, Storming, Norming, Performing,
Adjourning
o Communication Noise
o Risk Probability and Impact Matrix
o Contract Type
o Stakeholder Power vs. Interest Grid
• Code of Ethics and Professional Conduct
o Honor
o Responsibility
o Respect
o Fairness
o Honesty
This material covered the following project management topics:
Thank you for taking the time to review this material!