PMP success - Preparation to Passing the Certification.

PMP Prep Guide…. Page # 1
This is FULL version of the document. Please refer to PMBOK if you need further
details or any relevant management books.
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1 Contents
1 PMP Prep.............................................................................................................................................7
2 Project Management ............................................................................................................................7
2.1 Project and project Manager.....................................................................................................7
2.1.1 What you need to be a good project manager? .......................................................................7
2.1.2 Company’s Big Picture ...........................................................................................................7
2.1.3 Things that are common with the above: ................................................................................7
2.1.4 What is project? ....................................................................................................................7
2.1.5 Project is NOT:.......................................................................................................................7
2.1.6 PMO Office ...........................................................................................................................7
2.1.7 Interpersonal Skills of a Project Manager ................................................................................7
2.1.8 whistleblowing ......................................................................................................................7
3 ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE ...............................................................9
3 ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE ...............................................................9
3.1 Organizations Process Assets: ........................................................................................................9
3.2 Enterprise Environmental Factors: .................................................................................................9
3.3 Project Stakeholders Sponsor ........................................................................................................9
3.4 Project Constraints........................................................................................................................9
3.5 Enterprise Environmental Factors ..................................................................................................9
3.6 Project Life Cycles: ........................................................................................................................9
3.6.1 Phase-to-Phase Relationships ............................................................................................... 10
3.7 Predictive Life Cycles................................................................................................................... 10
3.8 Iterative and Incremental Life Cycles ............................................................................................ 10
3.9 Adaptive (or Agile) Life Cycles ...................................................................................................... 10

3.10 Project Structure......................................................................................................................... 11
3.11 Process Groups ........................................................................................................................... 12
4 Project Integration Management ........................................................................................................ 13
4.1 Develop Project Charter— ........................................................................................................... 13
 Purpose of project Charter. ............................................................................................................ 14
 project And Product Overview ......................................................................................................... 14
 Justification ...................................................................................................................................... 14
 Scope ............................................................................................................................................... 14
 Duration............................................................................................................................................ 14
 budget Estimate ............................................................................................................................... 14
 High-Level Alternatives Analysis ..................................................................................................... 14
 Assumptions, Constraints And Risks .............................................................................................. 14
 Project Organization ........................................................................................................................ 14
 Project Charter approval.................................................................................................................. 14
Develop Project Management Plan—...................................................................................................... 15
4.2 Direct and Manage Project Work— .............................................................................................. 17
4.3 Monitor and Control Project Work— ........................................................................................... 18
4.4 Close Project or Phase— ............................................................................................................. 21
5 Project SCOPE Management ............................................................................................................... 22
5.1 Plan scope management: ............................................................................................................ 22
5.2 Collect Requirements .................................................................................................................. 23
5.3 Define Scope .............................................................................................................................. 24
The project statement of work (SOW) is a narrative description ............................................................ 24
5.4 Create WBS ................................................................................................................................ 25
5.5 Validate Scope ............................................................................................................................ 26

5.6 Control Scope ............................................................................................................................. 27
6 Project Time Management.................................................................................................................. 28
6.1 Plan Schedule Management—..................................................................................................... 28
6.2 Define Activities— ...................................................................................................................... 29
6.3 Sequence Activities— ................................................................................................................. 30
6.4 Estimate Activity Resources— ..................................................................................................... 31
6.5 Estimate Activity Durations— ...................................................................................................... 32
6.6 Develop Schedule—.................................................................................................................... 33
6.6.1 Project Schedule.................................................................................................................. 36
6.7 Control Schedule— ..................................................................................................................... 38
7 Project Cost Management:.................................................................................................................. 39
7.1 Plan Cost Management— ............................................................................................................ 39
7.2 Estimate Costs—......................................................................................................................... 40
7.3 Determine Budget— ................................................................................................................... 42
7.4 Control Costs—........................................................................................................................... 43
8 Project Quality Management: ............................................................................................................. 46
8.1 Plan Quality Management ........................................................................................................... 46
8.2 Perform Quality Assurance .......................................................................................................... 48
8.3 Control Quality ........................................................................................................................... 49
9 Project Human Resource Management................................................................................................ 50
9.1 Plan Human Resource Management— ......................................................................................... 50
9.2 Acquire Project Team—............................................................................................................... 52
9.3 Develop Project Team—.............................................................................................................. 53
10 Communication Management ......................................................................................................... 55
Communications Management makes sure everybody gets the right message at the right time. ....... 55

10.1 Plan Communications Management— ..................................................................................... 55
10.2 Manage Communications—..................................................................................................... 56
10.3 Control Communications—...................................................................................................... 57
11 Risk Management Plan.................................................................................................................... 58
11.1 Plan Risk Management— ............................................................................................................ 58
11.2 Identify Risks— ........................................................................................................................... 59
11.3 Perform Qualitative Risk Analysis— ................................................................................................. 60
11.3 Perform Quantitative Risk Analysis— ........................................................................................... 61
11.4 Plan Risk Responses— ................................................................................................................. 63
11.5 Control Risks— ........................................................................................................................ 64
12 Procurement Process: ..................................................................................................................... 65
12.1 Plan Procurement Management— ............................................................................................... 65
12.2 Conduct Procurements— ............................................................................................................ 67
12.3 Control Procurements—.............................................................................................................. 68
12.4 Close Procurements— .................................................................................................................... 69
13 Stakeholder management ............................................................................................................... 70
13.1 Identify Stakeholders— ............................................................................................................... 70
13.2 Plan Stakeholder Management—................................................................................................. 71
13.3 Manage Stakeholder Engagement— ............................................................................................ 73
13.4 Control Stakeholder Engagement— ................................................................................................. 74
14 PMI Code of Conduct: ..................................................................................................................... 75
15 Appendix........................................................................................................................................ 76
15.1 DOMAIN AREAS .......................................................................................................................... 76
15.2 Just a SCAN of Tools and Technologies as a whole......................................................................... 77
16 Missing Items ................................................................................................................................. 79

17 Outputs from Process Areas. ........................................................................................................... 89
17.1 What should you do cases: ........................................................................................................ 101
17.2 Change Requests: ..................................................................................................................... 133

1 PMP Prep
2 Project Management
2.1 Project and project Manager
2.1.1 What you need to be a good project manager?
Knowledge, performance, and personal skills
2.1.2 Company’s Big Picture
Portfolio, Program and project ( it has business values ) [They have charters]
2.1.3 Things that are common with the above:
Professions with proven processes, Business value and Deal with constraints
2.1.4 What is project?
Temporary, creating a unique result and progressively elaborated.
2.1.5 Project is NOT:
Always strategic or critical, ongoing operations, always successful.
2.1.6 PMO Office
Supportive, controlling, and directive.
A project management office (PMO) is a
management structure that standardizes the project -related governance processes
facilitates the sharing of resources, methodologies, tools, and techniques.
The responsibilities of a PMO
providing project management support functions to actually
being responsible for the direct management of one or more projects.
Functions of PMO towards project Manager:
• Identifying and developing project management methodology, best practices, and standards;
• Coaching, mentoring, training, and oversight;
• Monitoring compliance with project management standards, policies, procedures, and templates by
means of project audits;
• Developing and managing project policies, procedures, templates, and other shared documentation
(organizational process assets); and
• Managing shared resources across all projects administered by the PMO;
• Coordinating communication across projects.
2.1.7 Interpersonal Skills of a Project Manager
• Leaders hip, • Team building, • Motivation, • Communication,
• Influencing, • Decis ion making • Political and cultural awarenes s,
• Negotiation, • Trus t building, • Conflict managem ent, and• Coaching.
2.1.8 whistleblowing
It is a term us ed to define an employee’s decision to dis close
information on unethical, immoral or illegal actions at work to an authority figure.
Project Benefits measurement methods:
Murder Board
Peer review
Scoring Models
economic models
Benefits compared to cost
Enterprise environmental factors  how your Organizational process assets  your company

The consequences of whistleblowing are often extreme and might include being branded as an owner of bad
judgment, layoff, civil action and imprisonment.
Carefully performed whistleblowing can lead to the end of unethical business practices.
Not true about whistkeblowing..
An employee should always discuss the matter with people external to the company before following the "chain
of command" and discuss it with the immediate superior.
3
Project Management
Program
Management Portfolio Management
Identifying project
requirements;
A group of related
projects
collection of projects, programs,
sub-portfolios
Managing stakeholders;
managed in a coordinated
way to obtain benefits and
control
managed as a group to achieve
strategic objectives
Balancing project constraints
must be some value added
in managing
A project need not belong to
a program;
program will always have
projects.
may not necessarily be
interdependent or directly
related.
deliver some strategic
“benefits”
benefits could be tangible
and inTangible
centralized management of one
or more portfolios.
focuses on “fulfilling the
requirements” of a project
focuses on “delivery of
benefits”
To grow business in a specific
area.

ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE
3.1 Organizations Process Assets:
• Shared visions, mission, values, beliefs, and expectations;
• Regulations, policies, methods, and procedures;
• Motivation and reward systems;
• Risk tolerance;
• View of leadership, hierarchy, and authority relationships;
• Code of conduct, work ethic, and work hours; and
• Operating environments.
3.2 Enterprise Environmental Factors:
• Organizational culture, structure, and governance;
• Geographic dis tribution of facilities and res ources;
• Government or indus try s tandards (e.g., regulatory agency regulations , codes of conduct, product
standards, quality standards, and workmanship standards);
• Infras tructure (e.g., existing facilities and capital equipment);
• Exis ting human res ources (e.g., s kills , dis ciplines, and knowledge, s uch as des ign, development, legal,
contracting, and purchasing);
• Pers onnel administration (e.g., s taffing and retention guidelines, employee performance reviews and
training records, reward and overtime policy, and time tracking);
• Company work authorization s ys tems ;
• Marketplace conditions;
• Stakeholder risk tolerances;
• Political climate;
• Organization’s es tablished communications channels;
• Commercial databases (e.g., standardized cost estimating data, industry risk study information, and risk
databases); and
• Project management information system (e.g., an automated tool, such as a scheduling software tool,
a configuration management system, an information collection and distribution system, or web interfaces
to other online automated systems).
roject Life Cycle and Organization
3.3 Project Stakeholders Sponsor
• Sellers/BusinessPartners/Customers/vendors
• Users
• Project Team
• Operations Management
• Functional Managers
• Other Project Team Members
• Project Manager
• Project Management Team
• Project Management Office
• Program Manager Portfolio
3.4 Project Constraints
• (cost, Time,Scope) Triple Constraints, quality and risk resource,
3.5 Enterprise Environmental Factors
• People, market, databases, standards, Risk Tolerance
3.6 Project Life Cycles:
Enterprise environmental factors 
how your company does business.
Organizational process assets 
your company normally runs its projects.

3.6.1 Phase-to-Phase Relationships
Sequential relationship.
Overlapping relationship. In an overlapping relationship, a phase starts prior to completion of the
previousone This can sometimes be applied as an example of the schedule compression
technique called fast tracking.
3.7 Predictive Life Cycles
Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the time and
cost required to deliver that scope, are determined as early in the project life cycle as practically possible.
3.8 Iterative and Incremental Life Cycles
Iterative and incremental life cycles are ones in which project phases (also called iterations) intentionally repeat
one or more project activities as the project team’s understanding of the product increases. Iterations develop
the product through a series of repeated cycles, while increments successively add to the functionali ty of the
product. These life cycles develop the product both iteratively and incrementally.
3.9 Adaptive (or Agile) Life Cycles
are very rapid (2 to 4 weeks).
dealing with a rapidly changing environment.
Stage Gates, Phase Gates and Kill
Points
SAME and refer to a
phase end review with the
objective of obtaining authorization
to close the current phase and
starting the next one. This is a
retrospective review of the current
phase.
The phase planning, on
the other hand, is carried out early
during the planning phase of the
project.
 “tight matrix” which stands
for co-located teams.
 If Type of Org is not
mentioned, then its METRIX
ORG.

3.10 Project Structure
Org Stru
Functiona
l
Matrix
Balance
d Strong
Project Char Weak Project Composite
Project Manager's
Authority
Little or
None Low
Low to
Moderate
Moderat
e
to High
High to
Almost
Total
characteristics of a
project team in a
projectized
organization
Resource
Availability
Little or
None Low
Low to
Moderate
Moderat
e
to High
High to
Almost
Total
include full-time staff
from different functional
departments
Who manages the
project budget
Functional
Manager
Functional
Manager Mixed
Project
Manager
Project
Manage
r
Project Manager's
Role Part-time Part-time Full-time Full-time
Full-time
manage most of its
projects in a strong
matrix, but allow small
projects to be
managed by functional
departments.
Project
Management
Administrative
Staff Part-time Part-time Part-time Full-time
Full-time
special project
team to handle a
critical project
Expeditor - No
decision
Co-ordinator -
decision, Authority to
report to high level
manager
Co-ordinator
Or
Expeditor

3.11 Process Groups
Actions - initiating processes:
?Review the statement of work and business case
?Clarify the assumptions and constraints
?Establish the feasibility of the project
?Identify the key stakeholders of the project and their
interest in the project
?Confirm the organization’s willingness and capability to
work on the project
Actions - closing process ( Read Last )
?Confirm that all project requirements are met
?Obtain formal signoff from customer
?Make payment to all parties and update cost records
?Complete contract closure
?Update lessons learned database
?Measure customer satisfaction
?Handover project deliverables to operations team
?Release resources from the project
Actions - planning processes
?Refine requirements and convert it into a scope
statement and the work breakdown structure
?Get stakeholder approval and buy-in
?Develop the baseline scope, cost, and schedule
?Select project team and determine their roles and
responsibilities
?Determ ine project’s quality s tandards and plan
?Framework for risk management, identification, analysis,
and response planning
?Determine what needs to be purchased
?Determine how to execute and control the project
?Document the project management plan
?Handle updates on the plan arising out of change
requests
Actions - executing processes
?Manage stakeholder engagements
?Deliver the work packages as planned
?Implement quality assurance activities
?Produce project reports
?Remove project bottlenecks
?Organize team building activities
?Organize training for the team members
?Conduct project progress meetings
?Implement approved changes, corrective actions,
preventive actions, and defect repair
?Obtain customer/sponsor acceptance, etc. Finalize
procurement arrangements and contracts
Actions - monitoring and controlling processes
?Measure project performance against the baseline
?Determine variances and take appropriate action
?Recommend changes, corrective, and preventive action
?Facilitate conflict resolution
?Identify root causes of problems
?Obtain formal acceptance for the deliverables
?Administer contracts with sellers
?Control changes
?Conduct status review meetings, etc.

4 Project Integration Management
4.1 Develop Project Charter—
Formally authorizes the existence of a project and provides the project manager with the authority to apply
organizational resources to project activities.
IT is handed to Project Manager by the Sponsor.
 Facilitation techniques
Brainstorming,
 conflict resolution,
 problem solving,
 meeting management
The business case tells
everyone why the company
should do the project. It’s
an input to building the
project charter that tells
everyone that the project
actually started, explains
what it’s going to deliver,
and authorizes the project
manager to do the work.
In a brainstorming session,
the project manager can
take on the planner role, as
well as the facilitator role.
Hymes and Olson define
the problem solving
stages as:
 Problem
Identification
 Idea Generation
 Idea Selection
(decision
making)
 Implementation
T&T
Expert Judgement
Facilitation Techniques

project charter
 Purpose of project Charter.
 project And Product Overview
 Justification
 Bus iness need
 Publ ic Health and business Impact
 Strategic Alignment
 Scope
 High level objectives
 High-Level Requirements
 Major Deliverables
 Boundaries
 Duration
 Timelines
 Executive Milestones
 budget Estimate
 Funding soruce
 Es timate
 High-Level Alternatives Analysis
 Assumptions, Constraints And
Risks
 Project Organization
 Roles and Responsibilities
 Stakeholder (internal / External )
 Project Charter approval
The project statement of work (SOW) is a narrative
description of products, services, or results to be
delivered by a project. It references the Following:
Business Need, Product scope description, strategic
Plan.
Work Authorization System. A subsystem of the overall
project management system. It is a collection of formal
documented procedures that defines how project work
will be authorized (committed) to ensure that the work
is done by the identified organization, at the right time,
and in the proper sequence.
It includes the steps, documents, tracking system, and
defined approval levels needed to issue work
authorizations.

Develop Project Management Plan—
The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a
comprehensive project management plan. The project’s integrated baselines and subsidiary plans may be
included within the project management plan.
T&T
Expert Judgement
Facilitation Techniques

Two additional inputs to Develop Project Charter are the agreements and the statement of work. The contract is
what you agreed to do, although not all projects have a contract. The statement of work lists all of the deliverables that
you and your team need to produce.
The Project Management plan is not the same thing as a
project schedule.

4.2 Direct and Manage Project Work—
The process of leading and performing the work defined in the
project management plan and implementing approved changes to achieve the project’s objectives.
Requests for a change can be direct or indirect, externally or internally initiated, and can be optional or
legally/contractually mandated, and may include:
• Corrective action—An intentional activity that realigns the performance of the project work with
the project management plan;
• Preventive action—An intentional activity that ensures the future performance of the project work
is aligned with the project management plan;
• Defect repair—An intentional activity to modify a nonconforming product or product component;
and/or
• Updates—Changes to formally controlled project documents, plans, etc., to reflect modified or
addition all ideas or content.
-
T&T
Expert Judgement
Meetings
PMIS
The Direct and Manage Project Work process is where you and your team actually do the work to produce the
deliverables.
You create work performance data by measuring
how the processes from each knowledge area are
being performed.

4.3 Monitor and Control Project Work—
The process of tracking, reviewing, and reporting project progress against the performance objectives
defined in the project management plan.
Analytical techniques are applied in project management to
forecast potential outcomes based on possible
variations of project or environmental variables and their
relationships with other variables
Analytical
Techniques
• Regression analysis,
• Grouping methods,
• Causal analysis,
• Root cause analysis,
• Forecasting methods (e.g.,
time series, scenario
building, simulation, etc.),
• Failure mode and effect
analysis (FMEA), • Fault
tree analysis (FTA),
• Reserve analysis,
• Trend analysis,
• Earned value
management, and •
Variance analysis.
(RPN) Probability, Impact,
and Timeframe.
To calculate the Risk Priority
number for the risks,
probability, impact, and
timeframe are used. The
formula for risk is
Probability * Impact *
T&T Timeframe (P*I*T).
Expert Judgement
Meetings
PMIS
Analytical Techniques

Three Point Estimates: to improve the accuracy of the estimates of cost or duration when the underlying
activity or cost component is uncertain.
Reserve analysis, components in the project management plan to establish a reserve for the schedule
duration, budget, estimated cost, or funds for a project. *Means adding extra time to the schedule (called
a contingency reserve or buffer) to account for extra risk.
Regression analysis, is a statistical process for estimating the relationships among variables. It includes many
techniques for modeling and analyzing several variables, when the focus is on the relationship between a
dependent variable and one or more independent variables.
Causal analysis, the real reason why things happen and hence allows focused change activity.
FEMA - first step of a system reliability study.
Fault tree analysis (FTA), is a top down, deductive failure analysis
Trend Analysis: technical analysis that tries to predict the future movement of a component based on past
data.
Variance analysis . Planned vs actual results.
• Regression
analysis,• Grouping
methods,
• Causal analysis,
• Root cause
analysis,
• Forecasting
methods (e.g., time
series, scenario
building, simulation,
etc.),
• Failure mode and
effect analysis
(FMEA), • Fault tree
analysis (FTA),
• Reserve analysis,
• Trend analysis,
• Earned value
management,
 and • Variance
analysis.

Perform Integrated Change Control—
The process of reviewing all change requests; approving changes and managing changes to deliverables,
organizational process assets, project documents, and the project management plan; and communicating their
disposition.
Configuration control is focused on the
specification of both the deliverables and
the processes; while
Change control is focused on identifying,
documenting, and approving or rejecting
changes to the project documents,
deliverables, or baselines.
The configuration management activities
included in the Perform Integrated Change
Control process are
Configuration Identification,
Configuration Status Accounting,
Configuration Verification and Auditing.
T&T
Expert Judgement
Meetings
Change control tools
Change control board (CCB)
is a group of people—usually
including the sponsor—that
approves or rejects
changes. Any time a change
goes through integrated
change control, the CCB
decides whether or not it
should be made. When they
approve the change, you send
it on to the team to implement.
Change control is how you
deal with changes to your
Project Management plan.
A change control system is the
set of procedures that lets you
make those changes in an
organized way.
The Perform Integrated
Change Control process is
conducted from project
inception through completion
and is the ultimate
responsibility of the project
manager.

4.4 Close Project or Phase—
The last thing you do on the project is close it out. Make sure you document everything…especially the lessons
you and your team have learned along the way.
T&T
Expert Judgment
Meetings
project management
information system,
which determines how
work is assigned, and
makes sure that tasks
are done in the right
order.
One of the most
important assets is
lessons learned, which
is where you write
down all of the valuable
historical information
that you learn
throughout the project
to be used later
Customer or Client can be Sponsor when project is about Consulting or
Procurement.
This phase end represents a natural point to reassess the activities underway and
to change or terminate the project if necessary. This point may be referred to as a
stage gate, milestone, phase review, phase gate or kill point.
Stage Gates, Phase Gates and Kill
Points
SAME and refer to a
phase end review with the
objective of obtaining authorization
to close the current phase and
starting the next one. This is a
retrospective review of the current
phase.
The phase planning, on
the other hand, is carried out early
during the planning phase of the
project.

5 Project SCOPE Management
5.1 Plan scope management:
Scope Management plan describes how you write down the scope, make sure it’s right, and keep it up to
date.
The Plan Scope Management process helps you think through everything you’ll need to do to keep your project focus ed on
the right work from beginning to end.
Components of the requirements management plan can include, but are not limited to:
• How requirements activities will be planned, tracked, and reported;
• Configuration management activities such as: how changes to the product will be initiated, how
impacts will be analyzed, how they will be traced, tracked, and reported, as well as the authorization
levels required to approve these changes;
• Requirements prioritization process;
• Product metrics that will be used and the rationale for using them; and
• Traceability structure to reflect which requirement attributes will be captured on the traceability matrix.
The WBS must
contain all of the project and
product work including the project
management work. This is also
called as 100% rule.
Ground Rules is one of the T&T
used while Develop Project
Team.
T&T
Expert Judgement
Meetings

5.2 Collect Requirements
In this proces s , you find out all of the s takeholders’ needs and write them down s o that you know what to build and your
requirements can be measured and tracked.
Group Creativity Techniques
 Brainstorming.
 Nominal group technique ,
 Idea/mind mapping.
 Affinity diagram.
 Multicriteria decision analysis.
Types of Requirement
 Business requirements,
 Stakeholder requirements,
 Solution requirements,
 (Functional requirements,
 Non Functional requirements),
 Transition requirements,
 Project requirements,
 Quality requirements
T&T
Interviews
Focus groups
Facililated workshops
Group creativity techniques
Group decision making
Techniques
Questionnaires & Surveys
Observations
Prototypes
Benchmarking
Context Diagrams
Document Analysis
Methods for reaching Group Decisions:
 Unanimity means everyone agrees on
the decision.
 Majority means that more than half the
people in the group agree on the
decision.
 Plurality means that the idea that gets
the most votes wins.
 Dictatorship is when one person makes
the decision for the whole group.

5.3 Define Scope
Here’s where you write down a detailed des cription of the work you’ll do and what you’ll produce.
Alternatives Generation
Techniques such as brainstorming, lateral thinking, analysis of alternatives
The project scope statement tells
what work you are— and are
not—going to do in the project.
Project scope statement – List of
assumptions…
Product analysis Techniques
 Product breakdown,
 Systems analysis,
 requirements analysis,
 systems engineering,
 value engineering,
 and value analysis.
T&T
Expert Judgement
Facilitated Workshops
Product Analysis
Alternatives Generation
The project statement of
work (SOW) is a narrative
description
of products, services, or
results to be delivered by a
project. It references the
Following: Business
Need, Product scope
description, strategic Plan.
The project charter is the document
issued by the project initiator or sponsor
that formally authorizes the existence of a
project and provides the project manager
with the authority to apply organizational
resources to
project activities.
business needs,
assumptions,
constraints,
the understanding of the customer’s needs
and high-level requirements,
and the new product, service, or result
Project Scope Statement
Product scope description.
Acceptance criteria
Deliverable.
Project exclusion.
Constraints and
Assumptions

5.4 Create WBS
The work breakdown s tructure (WBS) organizes all of your team’s work into work packages —or discrete pieces of work that
team members do—so that you can keep the momentum of the project going from the start.
The Create WBS process is the most
important process in the Scope
Management knowledge area
becaus e it’s where you actually figure
out all the work you’re going to do. It’s
where you create the work
breakdown structure (or WBS), which
is the main Scope Management
output.
lowest level of WBS components,
which are called work packages
Creating the WBS is all about taking
deliverables and coming up with work
packages that will create them. When
you do that, it’s called decomposition,
and it’s the main tool you us e to
create a WBS.
Decomposition is a technique used
for dividing and subdividing the
project scope and project deliverables
into smaller, more manageable parts.
Decomposition may not be possible
for a deliverable or subcomponent
that will be accomplished far into the
future.
The WBS dictionary contains the
details of every work package. It’s
a separate output of the Create
WBS process.
Scope baseline consists of Project
Scope statement, WBS and WBS
Dictionary.
The project scope baseline is a
snapshot of the plan, and it’s an
important output of Create WBS.
Any time you make a change, you
need to get it approved, and then
update the baseline.
T&T
Decomposition
Expert Judgement
WBS Activities:
• Identifying and analyzing the deliverables and related work;
• Structuring and organizing the WBS;
• Decomposing the upper WBS levels into lower-level detailed components;
• Developing and as s igning identification codes to the WBS components; and
• Verifying that the degree of decomposition of the deliverables is appropriate.
WBS dictionary.
The WBS dictionary is a document that provides detailed deliverable, activity, And
scheduling information about each component in the WBS. The WBS dictionary is a
document that supports the WBS.
Control accounts are associated with WBS (work packages) comes later
In the cost management plan.
A control account may include one or more planning packages. A planning package
is a work breakdown structure component below the control account with known
work content but without detailed schedule activities.

5.5 Validate Scope
Once the work is complete, you need to make s ure that what you’re delivering matches what you wrote down in the project
scope statement. That way, the team never delivers the wrong product to the customer.
T&T
Inspection
Group Decision Making Tech

5.6 Control Scope
We already know how important it is to control changes on your project. When s cope changes aren’t controlled, it leads to
the most frustrating sort of project problems. Luckily, you already know about change control, and now
The Delphi technique
Questionnaire is given to everybody and asked to write your answer against each of the questions and sent anonymous.
Scope creep One change leads to another.
Gold plating great improvements - make it without even checking the impact. Customer does not asks it but you feel.
Formal acceptance means that you have written confirmation from all of the stakeholders that the deliverables match the
requirements and the Project Management plan.
Variance analysis is a technique for
determining the cause and degree of
difference between the baseline and
actual performance.
The goal of Control Scope is
updating the scope, plan,
baseline, and WBS info.
Every scope change goes through
the Control Scope process.
T&T
Variance Analysis

6 Project Time Management
6.1 Plan Schedule Management—
The process of establishing the policies, procedures, and documentation for planning, developing,
managing, executing, and controlling the project schedule.
Scope baseline from Project
Management Plan - Input
T&T
Expert Judgment
Meetings

6.2 Define Activities—
The process of identifying and documenting the specific actions to be performed
to produce the project deliverables.
Rolling wave planning (Planning for Right Time Or Near Future ….and the rest is as it comes)
When you plan this way, you decompos e only the activities that you need to plan for becaus e they’re coming up
soon. You leave everything else planned at the milestone level until it gets clos er to the time when you’ll do it.
Activity list
This is a list of everything that needs to be done to complete your project. This list is lower -level than the WBS. It’s all the
activities that must be accomplished to deliver the work packages.
Activity attributes
Here’s where the des cription of each activity is kept. All of the inform ation you need to figure out the order of the
work should be here, too. So any predecessor activities, successor activities, or constraints should be l isted in the attributes,
along with descriptions and any other information about resources or time that you need for planning.
Milestone list
All of the important checkpoints of your project are tracked as milestones. Some of them could be listed in your
contract as requirements of successful completion; some could just be significant points in the project that you want to keep
track of. The milestone list needs to let everybody know which are required and which are not.
The key benefit of this process is to
break down work packages into activities
that provide a basis for estimating,
scheduling, executing, monitoring, and
controlling the project work.
The activity list, WBS, and WBS
dictionary can be developed either
sequentially or concurrently, with the
WBS
and WBS dictionary as the basis for
development of the final activity list
Milestones in Milestones list does not
have any T&T TIME mentioned.
Decomposition
Rolling Wave planning
Expert Judgement

6.3 Sequence Activities—
The process of identifying and documenting relationships among the project activities.
T&T
PDM
Dependency
Determination
Leads and Lags
PDM - Showing the activities in rectangles and their relationships
as arrows is called a precedence diagramming method (PDM).
A lead is the amount of time whereby
a successor activity can be advanced
with respect to a predecessor activity.
A lag is the amount of time whereby
a successor activity will be delayed
with respect to a predecessor activity.
Hammock activity. The
comprehensive summary activity that
is displayed in bar chart reports for
control and management
communication is called Hammock
activity
ADM –Arrows represent activities and
direction indicates relationships.
Activity-on-node (AON) is one method of representing a
precedence diagram.
Activity on Arrow (AOA)
Can only show Finish-Start relationships.
Network diagrams address all four types of relationships May need to use dummy activities to show

between the activities
a dependency.
6.4 Estimate Activity Resources—
The process of estimating the type and quantities of material, human
resources, equipment, or supplies required to perform each activity.
T&T
Expert Judgement
Alternatives Analysis
Published Estimating data
Bottom-Up Estimating
Project Management Software
Most of the outputs of Estimate Activity Resources are immediately used as inputs for Estimate Activity Durations.
The resource breakdown structure is a hierarchical representation of resources by category and type.
Resources are people, equipment, locations, or anything else that you need in order to do all of the activities that you
planned for. Every activity in your activity list needs to have resources assigned to it.
Bottom-up estimating means
breaking down complex activities into
pieces, and working out the resource
assignments for each of those
simpler pieces using the other four
tools and techniques.

6.5 Estimate Activity Durations—
The process of estimating the number of work periods needed to
complete individual activities with estimated resources.
Analogous estimating is when you look at activities from previous projects that were similar to this one and look at how
long it took to do similar work before. But this only works if the activities and the project team are similar!
Parametric estimating means plugging data about your project into a formula, spreadsheet, database, or computer
program that comes up with an estimate. The software or form ula that you use for parametric estimating is built on a
database of actual durations from past projects.
Three-point estimates are when you come up with three numbers: a most likely estimate that probably will happen, an
optimistic one that represents the best-case scenario, and a pessimistic one that represents the worst-case scenario. The
final estimate is the average.
Reserve analysis:
Management Reservers Contingency Reserve
unknown-unknowns known-unknowns
quantitative analysis
Monte Carlo simulation
NOT included in the
schedule baseline
estimated duration within the
schedule baseline
Triangular Distribution.
tE = (tO + tM + tP) / 3
Beta Distribution
tE = (tO + 4tM + tP) /6
Group decision techniques help the
team decide on the best estimates for
the activities they’ve defined.
PERT Utilizes three-point
estimates
Expected duration (μ) =
(P+4M+O)/6
Standard deviation of an activity
(s) = P-O)/6
Variance of an activity = s ^ 2
T&T
Expert Judgement
Analogous estimating
Parametric Estimating
Three Point Estimates
Group Decision making
techniques
Reserve Analysis

6.6 Develop Schedule—
The process of analyzing activity sequences, durations, resource requirements,
and schedule constraints to create the project schedule model.
Product scope means the features
and functions of the product or
service that you and your team are
building.
Project scope is all of the work that
needs to be done to make the
product.
Scope creep means uncontrolled
changes that cause the team to do
extra work.
Project Schedule; The outputs
from a schedule model are schedule
presentations Bar Charts, Milestone
charts and Project Schedule network
Diagram.
Schedule baseline: A schedule
baseline is the approved version of a
schedule model
Project Calendar: A project
calendar identifies working days
and shifts that are available for
scheduled activities.
Total Float = Late – Early
LS –ES OR LF – EF
Negative total float is caused when a
constraint on the late dates is violated
by duration and logic.
T&T
Schedule network Analysis
Critical path method
Critical chain method
Resource optimization
techniques
Modelling techniques
Leads & Lags
Schedule compression
Scheduling tool
Critical Path: The longest duration path through a network diagram and determines the
shortest time to complete the project. Float for CPM is ZERO.
Total Float (Slack): “The amount of time that a s chedule activity can be delayed or extended from
its early start date without delaying the project finis h date or violating a s chedule cons traint.”
Free Float (Slack): “The amount of time that a s chedule activity can be delayed without delaying
the early start date of any immediate s uccessor or violating a s chedule cons traint.”
Independent Float (Slack): The amount of time an activity can be delayed if all the immediate
predecessors finish at their latest finish dates and all the immediate successors are to be started
on the earliest start dates.
Schedule flexibility – Amount of time activity can be delayed/extended without Project Delay -
“total float.” Positive total float is caused when the backward pass is calculated from a schedule
constraint that is later than the early finish date that has been calculated during forward pass
calculation.

6.6.1 QQ:
The project manager doesn’t just
wait for change to happen! She
finds the things
that cause change and influences
them.
Before you can do change
control, you need to request
changes.
Once the change is approved, you
can update the baseline!
Schedule Compression Techniques:
Crashing the schedule means adding resources or moving them around to shorten it.
Crashing does not always produce a viable alternative and may result in increased risk
and/or cost. Cras hing ALWAYS cos ts more and does n’t always work!
Fast tracking. activities or phases normally done in sequence are performed in
parallel for at least a portion of their duration. Fast tracking may result in rework and
increased risk.

Resource Levelling Resource Smoothing CCM Critical chain method:
start and finish dates are
adjusted based on resource
constraints
adjusts the activities of a schedule model
such that the requirements for resources
on the project do not exceed certain
predefined resource limits
place buffers on any project schedule path
to account for limited resources and project
uncertainties
can cause CPM to
change, usually to
increase. CPM does not change
The resource-constrained critical path is
known as the critical chain.
Plays with Free float or Total Float.
May Not able to Optimize all
resources.
it is developed from CPM method
considers the effects of resource
allocation, resource optimization,
resource leveling,
and activity duration uncertainty
Do not include safety margins, logical
relationships, and resource availability
Critical Link – Project Buffer
Non-Critical Link –Feeding Buffer

Project Schedule
Schedule Model Creates lots of schedule presentations as O/P.
O/P of schedule model  project Schedule.
Presents linked activities with planned dates, durations, milestones, and resource
Also called as master schedule or milestone schedule, or presented in details.
Three ways to present: BAR CHART, Milestone Charts, Project schedule network diagrams
For control and management communications, the broader, more comprehensive summary activity,
sometimes referred to as a hammock activity, is used between milestones or across multiple
interdependent work packages, and
data date , as-of date or status date a point
in time when the status of the project is
recorded. Also called,

6.7 Control Schedule—
The process of monitoring the status of project activities to update project
progress and manage changes to the schedule baseline to achieve the plan.
The Control Schedule process turns
Work Performance Data into Work
Performance Information.
 Performance Reviews
 Trend analysis,
 CPM,
 CCM,
 Earn Value Management
T&T
Performance reviews
Resource optimization techniques
Schedule compression
Leads & Lags
Scheduling tool
Modelling tecniques
PMP Sofftware

7 Project Cost Management:
7.1 Plan Cost Management—
The process that establishes the policies, procedures, and documentation for planning, managing, expending,
and controlling project costs.
 payback period,
 return on investment,
 internal rate of return,
 discounted cash flow,
 net present value.
O/P: Cost Management Plan:
 Units of Measure
 Levels of Precision
 Level of Accuracy
 Oraganizations Procedureal
Links
 Control Thresholds
 Rules of performance
measurement
T&T
Expert Judgment
Meetings

7.2 Estimate Costs—
The process of developing an approximation of the monetary resources needed to
complete project activities. HOW MUCH is calculated here
bottom-up cost estimating The
cost and accuracy are typically
influenced by the size and
complexity of the individual
activity or work package.
Cost estimates may include
contingency reserves (sometimes
called contingency allowances)
All the Tools used in Estimate
Activity Duration are used here.
Group Decision-Making
Techniques
Team-based approaches,
such as
 brainstorming,
 the Delphi or
 nominal group techniques
T&T
Expert judgment
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point estimates
Reserve analysis
Cost of Quality
PM estimating software
Vendor bid analysis
Group Decision Making
Techniques
Only Quality Related part in T&T while estimating COST – Cost of Quality.
Cost Estimating – Accuracy
Rough order of magnitude (ROM)
−25% to +75%.
Budgetary: -10% to +25%
Definitive estimates - -5% to +10%.

 Fixed Costs :
These costs stay the same and do
not change throughout the project
life cycle .
Examples of fixed costs include
setup costs , rental costs , etc .
 Variable Costs :
Variable costs are costs that
change with the amount of work .
Examples of variable costs are
hourly labour, cost of material ,
cost of supply , fuel for bulldozer ,
etc .
 Sunk Costs :
Sunk costs are costs that have
been incurred on a project but have
not produced value towards the
project objectives . Sunk costs are
like spilt milk .If they are
unrecovereable , they are to be
treated as if they are irrelevant .
 Direct Costs :
Direct costs are expenses that are
billed directly to the project .
Examples of Direct costs are team
travel expenses , team wages ,
cost of material used in a project ,
costs incurred for recognition and
awards , materials used to contruct
a building .
 Indirect Costs :
Indirect costs are costs that are
shared and allocated among
several or all projects .
Examples include fringe benefits ,
taxes , etc .
Another example of indirect costs
could be the salary of an architect
or a project manager who are
partially allocated across many
projects . But since the project
manager is allocated to several
projects , the costs incurred on his
salary are indirect costs to the
project .
For instance lets assume that you
hire a freelance developer to
develop your website in Java
technologies . However , after
working on the job for some time ,
the developer quits the job for a
personal reason . When you hire
another developer for the job , he
convinces you that he could do a
better job in .NET technolgies and
you too make up your mind to
develop your website in .NET
technologies . In such a case the
costs that you have incurred on the
freelance java developer could be
treated as sunk costs .

7.3 Determine Budget—
The process of aggregating the estimated costs of individual activities or work
packages to establish an authorized cost baseline.
Funding Limit Reconciliation
T&T
 Cost aggregation
 Reserve analysis
 Expert judgment
 Historical
relationships
 Funding limit
reconciliation
Cost Baseline
The cost baseline is the approved
version of the time-phased project
budget, excluding any
management reserves, which can
only be changed through formal
change control procedures and is
used as a basis for comparison to
actual results.
Funding Limit Reconciliation.
The process of comparing the
planned expenditure of project
funds against any
limits on the commitment of funds
for the project to identify any
variances between the funding
limits and the
planned expenditures.

7.4 Control Costs—
The process of monitoring the status of the project to update the project costs and
managing changes to the cost baseline.
Earn Value Management Technique:
Burn rate = AC/EV
Burn Rate=1/CPI
Where CPI is cost performance
index.
While Calculation of EVM :
EV is put at TOP.
T&T
Earned value management
Forecasting
To-complete performance index (TCPI)
Performance reviews
Reserve analysis
Project Management Software

Planned Value ( PV )
BAC*PC ( Planned
Complete)
The total planned value for the project is also known
as budget at completion (BAC).
performance
measurement
baseline
Earned Value ( EV )
BAC*AC ( Actual
Complete)
both incrementally to determine current status and
cumulatively to determine the long-term performance
trends
Actual Cost ( AC ) AC
The AC will have no upper limit; whatever is spent
to achieve the EV will be measured.
Schedule performance Index (
SPI ) EV/PV
< 1 - Behind Schedule
> 1 - Ahead of schedule
Schdule Varience ( SV ) EV-PV
Schedule variance is best used in conjunction with
critical path methodology (CPM) scheduling and risk
management
Cost performance Index ( CPI ) EV/AC
< 1 - Over Budget
> 1 - under Budget .. Well Budgted
Cost varience ( SV ) EV-AC Negative CV is often difficult for the project to recover
Estimate At Completion ( EAC
)
AC + Bottom-up ETC. The project manager’s bottom-up EAC method builds
EAC Forecast@ Budgeted Rate EAC = AC + (BAC – EV)
EAC forecast for ETC work performed at the
budgeted rate.
EAC Forecast@ Current CPI BAC / CPI
EAC forecast for ETC work performed at the present
CPI.
EAC Forecast@ CPI & SPI
AC + [(BAC – EV) / (CPI
× SPI)]
EAC forecast for ETC work considering both SPI and
CPI factors
TO Complete Perf Ind (BAC-EV)/(BAC-AC) CPI , SPI > 1
TO Complete Perf Ind (BAC-EV)/(EAC-AC) When BAC is no Longer VIABLE, CPI, SPI < 1
Estimate TO complete EAC – AC
Variance at completion BAC – EAC

Performance Reviews considers Variance analysis, trend analysis, Earned value performance
Benefit cost ratio (BCR)This is the amount of money a project is going to make versus how much it will cost to
build it. Generally, if the benefit is higher than the cost, the project is a good investment.
Net present value (NPV)This is the actual value at a given time of the project minus all of the costs associated
with it. This includes the time it takes to build it and labor as well as materials. People calculate this number to
see if it’s worth doing a project.
Opportunity cost When an organization has to choose between two projects , it’s always giving up the money it would have
made on the one it does n’t do. That’s called opportunity cos t. It’s the money you don’t get becaus e you chos e not to do a
project.
Internal rate of return This is the amount of money the project will return to the company that is funding it. It’s how much
money a project is making the company. It’s us ually expres s ed as a percentage of the funding that has been alloca ted to it.
Depreciation This is the rate at which your project loses value over time. So, if you are building a project that will only be
marketable at a high price for a short period of time, the product loses value as time goes on.
Lifecycle costingBefore you get s tarted on a project, it’s really us eful to figure out how much you expect it to cos t—not just
to develop, but to s upport the product once it’s in place and being us ed by the cus tomer.
cost aggregation. You take your activity estimates and roll them up into control accounts on your work breakdown
structure. That makes it easy for you to know what each work package in your project is going to cost. "cradle to grave" or
"womb to tomb" costs
Make s ure you haven’t blown your limits .
funding limit reconciliation. Since mos t people work in companies that aren’t willing to throw unlimited money at a project,
you need to be sure that you can do the project within the amount that your company is willing to spend.

8 Project Quality Management:
Quality is the measurement of how closely your product meets its requirements.
Quality Approaches:
 Customer satisfaction.
 Prevention over inspection
 Continuous improvement
 Management Responsibility
 Cost of quality (COQ).
Common process improvement
models:
 Malcolm Baldrige,
 Organizational Project
8.1 Plan Quality Management
The process of identifying quality requirements and/or standards for the project
and its deliverables and documenting how the project will demonstrate
compliance with quality requirements
Quality means that something does what
you needed it to do.
Grade describes how much people value it.
( Number of Features, Limited Features,
Non Technical Features but people value it
).
Grade Quality
Low High Acceptable
High Low
Not
Acceptable
Precision is a measure of exactness.
Accuracy is an assessment of
correctness.
T&T:
Cost-benefit analysis is looking at how
much your quality activities will cost versus
how much you will gain from doing them.
Benchmarking means using the results of
Plan Quality on other projects to set goals
for your own.
Design of experiments is where you apply
the scientific method to create a set of tests
for your project’s deliverables.
Seven basic quality tools are the main
methods used for measuring quality across
your project.
Meetings,
Cost of Quality
and Statistical Sampling
Additional Quality Planning Tools
 Brainstorming (which you’ll learn all about in Chapter 11).
 Affinity diagrams (which you learned about in Chapter 5).
 Force field analysis is how engineers analyze structures to see what
forces affect their use.
 Nominal group techniques mean brainstorming with small groups, and
then working with larger groups to review and expand the results.
 Matrix diagrams are tables, spreadsheets or pivot tables that help you
analyze complex relationships.
 Prioritization matrices let you analyze multiple issues and prioritize, so
you can attack the important ones first.
Management Maturity Model
(OPM3®),
 Capability Maturity Model
Integrated (CMMIR).

The seven basic tools of quality
T&T
 Cost-benefit analysis
 Cost of quality
 7 Basic Quality Tools
 Benchmarking
 Design of Experiments
 Statistical Sampling
 Additional Quality
Planning Tools
 Meetings
Cause and effect diagrams are also called
fishbone and Ishikawa
Pareto charts, 80/20 rule—80% of the
defects are usually caused by 20% of the
causes. It is a type type of histogram
where the causes are ordered by
frequency.
flowcharts,- Flowcharts let you show how
processes work visually.
histograms - form of bar chart and
are used to describe the central tendency,
dispersion, and shape of a statistical
distribution.
Checksheets- Checksheets allow you to
collect data on the product under test.
Scatter diagrams show how two different
types of data relate to each other.
Control Charts
Specification Limits =/= Control Limits
Special Causes
 Operator absent.
 Poor adjustment of equipment.
 Operator falls asleep.
 Faulty controllers.
 Machine malfunction.
 Computer crashes.
 Poor batch of raw material.
 Power surges.
Outliners in control chart:Measurement
that are outside the bandwidth between the
upper and lower control limit.
Special causes are difficult to predict and
handle than random causes (also called
common causes)

8.2 Perform Quality Assurance
Perform Quality Assurance is the process of auditing the quality requirements and the results from quality
control measurements The Quality Management plan is the main tool for preventing defects on your project.
T&T – QM and Control Tools, Quality Audit, Process Analysis.
T&T
 Quality Management &
Control tools
 Quality audits
 Process analysis
rule of seven,
Seven measurements going in
either directions.

8.3 Control Quality
Control Quality is the process of monitoring and recording results of executing the quality activities to assess
performance and recommend necessary changes.
Quality
Planning
Quality
Assurance
Quality Control
Determine a plan
for quality.
Determine if the project
is complying with the
organizational (as well as
project) policies and
procedures.
Measure specific project results
(product) against standards.
A major task is
preparation of the
quality
management plan.
A major task is
conducting regular
process audits.
Results of the audit are
corrective and
preventive actions.
A major activity is to inspect and
verify the project’s product, defect
repair, and measuring whether
the quality indicators are
improving.
T&T
 7 Basic Quality Tools
 Statistical sampling
 Inspection
 Approved CR review
The Control Quality process is all about
inspecting work products to find defects.
If there are problems, you recommend a
change. That way, you can either fix the
problem or make s ure that it does n’t happen
again.
Concepts in quality management
(Process Improvement Methods,
ideaology Vs Models)
1. Total quality management: An
integrated management philosophy
around quality and continuous
improvement
2. Kaizen: Japanes e for “change for
better”; small, continuous
improvements
3. Kanban: Just-in-Time means keeping
only the inventory you need on hand
when you need it.
4. Plan-Do-Check-Act is one way to go
about improving your proces s , and it’s
used by a lot of Kaizen practitioners.It
is also known as the Deming
circle/cycle/wheel, Shewhart cycle,
control circle/cycle, or plan–do–study–
act (PDSA).
5. Six Sigma, and Lean Six Sigma

9 Project Human Resource Management
9.1 Plan Human Resource Management—
The process of identifying and documenting project roles, responsibilities, required skills, reporting
relationships, and creating a staffing management plan.
T&T
 Organization charts & Position descriptions
 Networking
 Organizational theory
 Expert Judgement
 Meetings
Organization Charts and Position
Descriptions
In the Plan Human Resource
Management process, you plan out
exactly which res ources you’ll need,
what their roles and responsibilities are,
and how you’ll train your team and
make sure they stay motivated.
RACI matrix – Responsibility,
Accountability, consulted and informed.
O/P: Human Resource Management
Plan
Roles and responsibilities,
Project organization charts,
Contains Staffing management plan.
 including timetables for staff
acquisition and release,
 identification of training needs,
 team-building strategies,
 plans for recognition and rewards
programs,
 compliance considerations, safety
issues,
 and the impact of the staffing
management plan on the
organization

Hierarchical matrix RAM ( RACI ) text-oriented
represent high-level roles
responsibility assignment matrix
(RAM) is a grid that shows the
project
resources assigned to each
work package.
document the detailed
responsibilities
relationships in a graphical,
top-down format
connections between work
packages or activities and
project team members.
Team member responsibilities that
require detailed descriptions can be
specified in text-oriented formats.
The resource breakdown
structure (RBS) is a
hierarchical list of resources
related by category and
resource type that is used to
facilitate planning and
controlling of project work.
responsibilities, authority,
competencies, and qualifications
in conjunction with the work
breakdown structure (WBS)
position descriptions and role-responsibility-
authority forms

9.2 Acquire Project Team—
The process of confirming human resource availability and obtaining the team necessary to complete project
activities.
Virtual Teams –
 Disadvantages- possibility for misunderstandings,
 Feeling of isolation,
 difficulties in sharing knowledge
 and experience between team members,
 and cost of appropriate technology.
Staffing Management Plan
Everything you do with your team—
acquiring them, developing them, and managing them—depends on a good Staffing Management plan.
T&T
 Pre-assignment
 Negotiation
 Acquisition
 Virtual teams
 Multi Criteria Decision Analysis
Resource calendars tell the company
exactly when the team members will be
available once they’re done.
HALO Effect:
That’s when you put s omeone in a
pos ition they can’t handle, jus t becaus e
they’re good at another job.

9.3 Develop Project Team—
The process of improving competencies, team member interaction, and
overall team environment to enhance project performance.
McKinsey’s Seven-S Management needs
to focus on hard elements as well as soft elements.
Hard elements
oStrategy
oStructure
oSystems
Soft elements
oShared values
oSkills
oStyle
oStaff
T&T
 Interpersonal skills
 Training
 Team-building activities
 Ground rules
 Co-location
 Recognition and Rewards
 Personnel Assessment Tools
Bruce Tuckman’s five stages of team
development are
forming (the team still finding their roles),
storming (the team forming opinions),
norming (adjusting work habits to help the
team),
performing (working like a well-oiled machine),
and
adjourning (closing down the project).
Project Managers LeaderShip Styles:
Authoritarian/Autocratic: Gives clear
direction and expects compliance
Participative/Democratic: Offers
guidance to team members but also
encourages participation
Delegative (laissez faire): Offers little or
no guidance to the team and believes in
“letting them be”

9.4 Manage Project Team—The process of tracking team member performance, providing feedback,
resolving issues, and managing changes to optimize project performance.
Mas low’s Hierarchy of Needs
Herzberg’s Motivation-Hygiene
Theory about hygine apart from good boss and other co-workers.
McGregor’s Theory X and Theory Y -
Theory X being non motivated. Needs Micromanagement.
Theory y being good. Trust your team and you are a good manager.
Expectancy Theory says that you need to give people an expectation of a reward
in order to motivate them—
McClelland’s Achievement Theory says that people need to be motivated.
Achievement, power and affiliation is when someone performs well and is recognized for it.
T&T
 Observation and
conversation
 Project performance
appraisals
 Conflict management
 Interpersonal skills
How to resolve Conflict:
Confronting—or problem solving—is the
most effective way to resolve a conflict.
Compromise – Loose –Loose situation.
Collaborating-Problem solving - means
working with other people to make sure
that their viewpoints and perspectives are
taken into account.
Smoothing - Accommodate –
Talk more on agreements than
dis agreements…
Forcing – Direct - means putting your foot
down and making a decision. Win _ Loose
Withdrawl – Avoid -
Project performance appraisals means
looking at each pers on’s work and
assessing his or her performance.
Interpersonal skills are all about helping
the people on your team to solve
problems.
Observation and conversation are how
you communicate to manage your team.
Some of the common reasons that
conflicts happen as per the Importance:
 Schedules ,
 Project Priorities,
 Resources,
 Causes 50% of conflict.
Technical opinion.
 Admin Procedures
 Cost,
 Personalities,
Merrill and Reid identified four
personal styles that motivate people.
Driver – Action Orientated
Expressive – Intuition Orientated
Amiable – Relationship
Analytical – Thinking Oriented
Conflict should be addressed early and usually in private, using a direct,
collaborative approach.
If disruptive conflict continues, formal procedures maybe used, including
disciplinary actions.

10 Communication Management
Communications Management makes sure everybody gets the right message at the right time.
10.1 Plan Communications Management—
The process of developing an appropriate approach and
plan for project communications based on stakeholders information needs and requirements, and available organizational
assets.
T&T
 Communication requirements analysis
 Communication technology
 Communication models
 Communication methods
 Meetings
Communications Requirements Analysis
Technology Factor Model Methods
Urgency of the need for information Encode. Interactive
Availability of technology Transmit Message
Push - letters, memos, reports,
emails, faxes, voice mails,
blogs, press releases
Ease of Use Decode.
Pull - intranet sites, e-learning,
lessons learned databases,
knowledge repositories
Project environment Acknowledgement
Sensitivity and confidentiality of the
information Feedback/Response
Communication Channels
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
0 1 3 6 10 15 21 28 36 45 55 66 78 91 105 120 136 153 171 190

10.2 Manage Communications—
The process of creating, collecting, distributing, storing, retrieving and the ultimate disposition of project information in
accordance with the communications management plan.
T&T
Technology Factor Model Methods
Urgency of the need for information Encode. Interactive
Availability of technology Transmit Message
Push - letters, memos, reports,
emails, faxes, voice mails,
blogs, press releases
Ease of Use Decode.
Pull - intranet sites, e-learning,
lessons learned databases,
knowledge repositories
Project environment Acknowledgement
Sensitivity and confidentiality of the
information Feedback/Response
T&T
 Communication technology
 Communication models
 Communication methods
 Information Mgmt Systems
 Performance Reporting
Noise: Interference.
Ex: Distance and Unfamiliar
technologies.

10.3 Control Communications—
The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information
needs of the project stakeholders are met.
Communications Wirtten Verbal
Formal
Blueprints, specifications, and all other
project documents, Contracts
T&T
 Information Mgmt Systems
 Meetings
High-contest culters: A message has
no meaning without an understanding
of the surrounding context.
presentation, speeches and prepared
talk
Informal
a quick email or leave her a memo or a sticky
note,
Meetings, hallway chats, and planning
sessions are informal.
Communications Internal External
Within Project
customer, vendors, other projects,
organizations, the public
Formal informal
reports, minutes, briefings emails, memos, ad-hoc discussions
Vertical Horizontal
up and down the organization with peers
Official unofficial
news letter, Annual Report Off the Records communication
Written and oral, and verbal nonverbal
Voice Body Language

11 Risk Management Plan
Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or
more project objectives such as scope, schedule, cost, and quality.
11.1 Plan Risk Management—
The process of defining how to conduct risk management activities for a project.
Where to look for risks
Resources  Assumptions 
CPM  Outside project.
T&T
 Planning meetings and analysis
The RBS is a hierarchical representation of
risks according to their risk categories.
Known Risk Contingency Reserve
Unknown Risks Management Reserve
Negative Risk Issue
O/P:
Risk management Plan: Contains
 Methodology
 Roles and responsibilities.
 Budgeting.
 Timing
 Risk Categories
 Definitions of risk probability and
impact.
 Probability and impact matrix.
 Revised stakeholders’ tolerances.
 Reporting formats.
 Tracking

11.2 Identify Risks—
The process of determining which risks may affect the project and documenting
their characteristics.
Identify risks is an iterative process, because new risks may evolve
or become known as the project progresses through its life cycle.
T&T:
Documentation Reviews
Information Gathering Techniques
 Brainstorming
 Delphi Technique
 Interviewing
 RCA
Checklist Analysis
Assumptions Analysis
Diagramming Techniques
• Cause and effect
diagrams.
• System or process flow
charts.
• Influence diagrams.
SWOT Analysis
OP:
Risk Register
List of identified risks.
List of potential responses.
The risk register is built into the
Risk Management plan.
Updates to the risk register are the
only output of the Identify Risks
process.
Alpha and Beat Risks
Alpha RISK: Alpha error is also called False Positive and Type I Error .
Confidence Level = 1 - Alpha
confidence level = 95%. Alpha Risk: 0.05
Beta Risk
The Power of a test = 1 - Beta
Beta error is also called False Negative and Type II Error.
Trigger
A warning sign that a previously identified risk might be occurring or has occurred

11.3 Perform Qualitative Risk Analysis—
The process of prioritizing risks for further analysis or action by assessing and combining their probability of
occurrence and impact.
Risk probability assessment
investigates the likelihood
that each specific risk will
occur.
T&T
Risk Probability and Impact
Assessment
Probability and Impact Matrix
Risk Data Quality
Assessment
Risk Categorization
Risk Urgency Assessment
OP:
Project Document Updates
 Risk Register updates
 Assumptions log updates.
The risk score
helps guide risk responses.
.
Risk Reserve

11.3 Perform Quantitative Risk Analysis—
The process of numerically analyzing the effect of identified risks on overall project objectives.
Interviewing relevant stakeholders helps determine the three-point estimates for each WBS
element for triangular, beta or other distributions
three-point estimates - used for Quantitative Risk analysis as well as
Estimate Activity Durations and Estimate Costs
A tornado diagram is a special type of bar chart used
in sensitivity analysis for comparing the relative importance of the variables. In a tornado diagram,
the Y-axis contains each type of uncertainty at base values, and the X-axis contains the spread or
correlation of the uncertainty to the studied output.
Perform Quantitative Risk
Analysis is not always
followed due to data
constraints.
T&T
Data Gathering and
Representation Techniques
 Interviewing
 Probability distributions.
o Beta and Traingular
Distributions
 Quantitative Risk
Analysis and Modeling
Techniques
o Sensitivity analysis.
o Expected monetary
value analysis.
o Modeling and
simulation.
Iterative modeling and
simulation is done – monte
carlo technique.
Expected monetary value
analysis
Modeling and simulation.
Monte Carlo –
Randomizing the outcome
of Risk and probabilities.
Decision Tree for EMV
Your risk register should
include both threats and
opportunities. Opportunities
have positive impact
values, while threats have
negative ones. Don’t forget
the plus or minus sign when
you’re calculating EMV
OP:
 Risk Register updates

EMV requires a risk-neutral
assumption—
neither risk averse nor
risk seeking.
Modeling and simulation. ( Monte Carlo Simulation ) ( SW Programmed )
A project simulation uses a model that translates the specified detailed uncertainties of the project into their potential
impact on project objectives. Simulations are typically performed using the Monte Carlo technique.
In a simulation, the project model is computed many times(iterated), with the input values (e.g., cost estimates or
activity durations) chosen at random for each
iteration from the probability distributions of these variables.
A histogram (e.g., total cost or completion date) is calculated from the iterations.
For a cost risk analysis, a simulation uses cost estimates.
For a schedule risk analysis, the schedule network diagram and duration estimates are used.

11.4 Plan Risk Responses—
The process of developing options and actions to enhance opportunities and to reduce threats to project
objectives.
T&T
 Strategies for negative risks or threats
 Strategies for positive risks or
opportunities
 Contingent response strategies
 Expert judgment
Risk transference nearly always involves
payment of a risk premium to the party
taking on the risk.
T&T: Contingent Response
Strategies
gaining higher priority with a supplier.
Residual risks that are expected to remain
after planned responses have been taken,
as well as those that
have been deliberately accepted;
Contingency reserves that are calculated
based on the quantitative risk analysis of
the project and the
organizations risk thresholds.
Direct result of implementing a RISK response is Secondary RISK.
RISK Response Strategies
Negative RISK Positive Risk
AVOID Exploit – Make the best use of OPTY,
Mitigate Enhance – Enhance the probability of the opportunity.
Transfer Share - When you can not make the use of it, share it.
Accept Accept: When it unavoidable, accept it.
Risk
Strategy What it means Examples
AVOID Eliminate the Threat
missing intermediate milestones or
Triggers  contingency plans or
fallback plans
Work around the RISK – Accept it
extending the schedule, changing the strategy,
or reducing scope.
Transfer
shifts the impact of
a threat to a third party,
insurance, performance bonds,
warranties, guarantees,
Mitigation
Acts to reduce the probability of
occurrence or impact of a risk.
Adopting less complex processes, conducting more tests, or
choosing a more stable supplier
Accept
to acknowledge the risk and not take
any action unless the risk occurs.
Establish a contingency reserve, including amounts of time,
money, or resources to handle the risks.
Exploit
Organization wishes to ensure that
the opportunity is realized.
Assigning an organization’s most talented resources,
using new technologies or technology upgrades to reduce
cost and duration required to realize project objectives.
Enhance
increase the probability and/or the
positive impacts adding more resources to an activity to finish early.
Share
allocating some or all of the
ownership of the opportunity to a
third party
forming risk-sharing partnerships, teams, special-purpose
companies, or joint ventures

11.5 Control Risks—
The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying
new risks, and evaluating risk process effectiveness throughout the project.
As this is control process, Why do you need WPR as input?
Work performance reports take information from performance measurements and analyze it to provide project
work performance information including variance analysis, earned value data, and forecasting data. These data
points could be impactful in controlling performance related risks.
A risk is any uncertain event
or condition that might affect
your project. Not all risks are
negative.
T&T
 Risk Assessment
 Risk Audit
 Variance and trend analysis
 Technical Performance
Measurement
 Reserve Analysis

12 Procurement Process:
12.1 Plan Procurement Management—
The process of documenting project procurement decisions, specifying the approach, and identifying potential
sellers.
Depending upon the application area, a contract can also be called an agreement, an understanding,
a subcontract, or a purchase order
T&M = CPFF subject to cost increase by the buyer.
T&T
 Make or Buy analysis
 Market research
 Meetings
 Measurement
 Reserve Analysis
OP
 Source Selection Criteria
 Make or Buy decision.
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.
Person responsible for managing contracts?
Conratcts manager, procurement manager or procurement officer.

Fixed Price Contracts
Buyer ( Client
) Seller ( Contractor)
Buyer - Scope is known
Seller - obligates under contract to
complete the product or service
Changes in Scope - Increase in
price
Firm Fixed price (FFP Pays Receives
Favourd by Buyer.
Any Changes to the scope, buyer
pays Delta.
FP + incentive Fee ( FPIF
) Above + Incentives
Price ceiling is set
All Costs above the price ceiling
are the responsibility of the seller
Incentives are typically for
Technical Performance, schedule
achievement.
Fixed Price with
Economic Price
Adjustment Contracts (
FP - EPA )
Longer period in many
years ( inflation changes, or
cost increases ) should be
taken into consideations
Intended to protect both buyer and
seller from external conditions
beyond
their control.
Cost-reimbursable
contracts
the scope of work cannot be
precisely defined at the start and
needs to be altered, or when high
risks may exist in
the effort.
Costs plus fixed fee
(CPFF) Costs + Fixed agreed value
A fee is paid only for completed
work and does not change due to
seller performance.
Costs plus award fee
(CPAF
Costs + Fee based on
Buyer Evaluations
The determination of fee is
based solely on the subjective
determination of seller
performance by the buyer, and is
generally
not subject to appeals.
Costs plus incentive fee
(CPIF) Costs+ Incentives
Receives a predetermined
incentive fee based upon
achieving certain performance
objectives as set forth in the
contract. Keep the costs as low
as possible,
Finish the contract as early as
possible,
And generate the maximum
incentive and profit.
Time and materials
(T&M) Contract tenure unknown
Contract
tenure
unknown
Protects both Buyer and
Seller

12.2 Conduct Procurements—
The process of obtaining seller responses, selecting a seller, and awarding a contract.
T&T
• Bidder Confernce
o (called contractor
conferences,
vendor
conferences, and
pre-bid
conferences)
 Proposal Evaluation
Techniques
 Independent Estimates
 Advertising
 Analytical Techniques
 Procurement
Negotiations
OP
 Selected Sellers
 Agreements
 Evaluate sellers performance: according to weighted criterais
o Has a CV of the prospective project manager has been send with the proposal.

12.3 Control Procurements—
The process of managing procurement relationships, monitoring contract
performance, and making changes and corrections as appropriate.
Whenever you see “inspection” or “audit,” it means that you’re looking at the products that the
seller delivered to see if they meet your standards.
T&T
• Payment systems
• RMS ( Records
Management Systems )
• Claims admin
• Performance reporting
• Procurement Performance
Review
• Inspection and audits
• Contract change control
system
•
A contract change control system defines the process by which the procurement can be modified. It
includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary
for authorizing changes.

12.4 Close Procurements—The process of completing each project procurement.
force majeure. This is a kind of clause for a war, riot, or natural disaster happens , you’re excused from the terms
of the contract.
Doctrine of Waiver: Voluntary act by person or party that surrenders legal right. As you collect premium, you
can not refuse for the settlement.
Privity of Contracts : Cannot confor right in any other form other than two parties involved in contract.
The point of total assumption this is the point where the costs have gotten so large that the seller
basically runs out of money from the contract and has to start paying the costs.
When you work with a union, even if it’s through a seller, then the union contract (also called a
collective bargaining agreement) can have an impact on your project. That means you need to
consider the union itself a stakeholder, and when you do your planning you need to make sure any union
rules and agreements are considered as constraints.
Admin Activities as:
 finalizing open claims,
 updating records to reflect
final results,
 and archiving such
information for future use

13 Stakeholder management
13.1 Identify Stakeholders—
The process of identifying the people, groups, or organizations that
could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and
documenting relevant information regarding their interests, involvement, interdependencies,
influence, and potential impact on project success.

13.2 Plan Stakeholder Management—
The process of developing appropriate management strategies to effectively engage stakeholders throughout
the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.
Any suppliers or vendors listed in contracts should be
part of your stakeholder list.
Tools
Stakeholder analysis Meetings
Expert Judgement
O/P
Stakeholder Register
• Identification information.
• Assessment information.
• Stak eholder classification.
Its an Iterative Process:
Tools
Meetings
Expert Judgement
O/P
Stakeholder
Management Plan

13.3 Manage Stakeholder Engagement—
The process of communicating and working with stakeholders to meet their needs/expectations, address issues
as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life
cycle.
Stakeholder Influence – High –
Beginning
Stakeholder Influence – Low –
As the project progresses
T&T
Communication Methods
Interpersonal Skills
• Building trust,
• Resolving conflict,
• Active listening, and
• Overcoming
resistance to change.
Management Skills
Faci litate consensus toward project
objectives,
• Influence people to s upport the
project,
• Ne gotiate agreements to satisfy the
project needs, and
• Modi fy organizational behavior to
accept the project outcomes
O/P: Organizational
Process Assets Updates
• Stakeholder notifications.
• Project reports.
• Project presentations.
• Project records.
• Feedback from stakeholders.
• Lessons learned documentation.
O/P:
Issue logs
Change Requests

13.4 Control Stakeholder Engagement—
The process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.
14
T&T:
Information Management
Systems
Meetings
Expert Judgement
O/P: Organizational
Process Assets Updates
• Stakeholder notifications.
• Project reports.
• Project presentations.
• Project records.
• Feedback from stakeholders.
• Lessons learned documentation.
O/P:
Work Performance
Information
Change request
• Stakeholder register.
•Issue logs

PMI Code of Conduct:
1. Follow all laws and company policies.
2. Treat everybody fairly and respectfully.
3. Have respect for the environment and the community you’re working in.
4. Give back to the project management community by writing, speaking, and sharing your experience with
other project managers.
5. Keep learning and getting better and better at your job.
6. Respect other people’s cultures.
7. Respect copyright laws.
8. Always be honest with everyone on the project.
9. If you find that another person has done something to damage the PMP credential in any way, you must
report it to PMI.
Reporting
Honesty Misues
Respect
Copyright
Laws
Respect
others
culture
Keep
learning
and
getting
better
Giving
Respect Back
Environemtn
community
Faireness,
LAWS Respect
PMI Code of Conduct ( Not to be followed in order )


Always report the truth, even i f i t shows the project in a bad light.
Fol low the copyright rules. Never use unlicensed products.
When conflict occurs - deal with i t - don’t shy a way.
Don’t a cce pt a ny ki nd of bribe.
Treat everyone with respect.
Always give more importance to project needs than to personal gains.
Always do the right thing and follow the right process.
Never divulge company information to unauthorized parties.
Respect intellectual property rights.
Fol l ow PMI’s Code of Ethics and Professional Conduct. The document can be found on the PMI website.

PMP success - Preparation to Passing the Certification.

PMP success - Preparation to Passing the Certification.

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