PMP chap 1 - PMP Introduction (PMBOK 6)

By: Anand Bobade (nmbobade@gmail.com)By: Anand Bobade (nmbobade@gmail.com)
PMBOK Chap 1 – Introduction
Learn Project Management & prepare for PMP exam:
• Learn visually
• Detailed coverage of all PMP concepts
• Sample Questions

PMBOK Chap 1 - Introduction
What is Project
What is Project Management?
What is Project Management Office (PMO)?
Relationships among Portfolio, Program & Project
Relationship among PM, OM & Organizational Strategy
Business Value
Role of the Project Manager.
Review

What is Project?

What is Project?
A project is a temporary endeavour undertaken
to create a unique product, service or result.
Temporary
endeavour
Undertaken
to create

Project Attributes
Has unique
purpose
It is temporary Progressively
elaborated
Requires
Resources
Initiated by
Customer or
Sponsor
Uncertainty

Example’s of Project
Developing a new product Organization restructuring
(Change in Structure,
process, Staffing)
Developing or acquiring
new Information System
(Software or Hardware)
Conducting a Research Business process re-
enginnering

Project Results -> Project can Create
Products
Call Center Service
Global Warming
research paper
Improved
IPhone
New Business
process
A product or artefact - that can be component
of another item.
Service - A capability to perform a service,
such as call centre.
A result, such as research results or
research documents.
An improvement in an existing product or
service.
Process Improvement - Such as an improved
business process.

When Project will end?
The project end is reached when project objectives has been
achieved. Project can be:
• Terminated – due to change in strategy or many not be feasible.
• Stopped - When need for project no longer exists.
Constructed House
– Objective achieved
Hydropolic Underwater
Hotel- Terminated
Completed Bridge
– Objective achieved
Polio Project –No longer
exists

Project’s are Authorized because of
Market demand Strategic & business need Social need
Environmental
consideration
Customer request
Technological Advance
Legal requirements

Project’s are Authorized because of
Market demand:
Automobile company building fuel efficient CAR
Strategic & business need:
Company started project to build own research facility to build futuristic
technologies.
Social need:
Private company building charity hospital for controlling diseases.
Environmental consideration:
Government authorized new project to clear rivers & river banks.
Customer request:
Customer requested to automate their financial processes.
Technological Advancement:
Mobile company launched new project to build smaller & more powerful mobiles.
Legal requirements:
Project authorised by Taxi company to upgrade security framework as per new
government policies.

Is it only about
managing People?
Science Art
Follow systematic
process
Process groups Knowledge areas
Project management
framework

The application of knowledge, skills, tools & techniques
to project activities to meet project requirements.
Knowledge
Skills
Tools & Techniques
to meet
Project Requirements
to
Project
Activities

Advantages of Project Management
Better control of financial, physical and human resources.
Improved customer relations.
Shorter development times.
Lower costs & Higher profit margins.
Improved productivity.
Better internal coordination.
Higher quality and increased reliability.

Learn Project Management & prepare for PMP exam:
• Learn visually
• Detailed coverage of all PMP concepts
• Sample Questions

Relationships among Portfolio, Program & Project

Project, Project Management & Project Manager
Project:
• A project is a temporary endeavour undertaken to create a
unique product, service or result.
• Individual projects that can be in-depended under portfolio or
can be a part of the Program.
Project Management::
• The application of knowledge, skills, tools, & techniques to
project activities to meet project requirements
Project Manager:
• The Person assigned by the Performing Organization to lead the
team that is responsible for achieving the project Objectives.

What is Program?
Group of
related
Projects
Project
1
Project
2
Project
3
Project
4
Organization
can coordinate
management of
these projects
Focus on
interdependenc
ies between
projects
May help
achieve
decrease in Risk
May help
achieve
Economy of
scale

What is Program?
A group of related projects, subprograms and program activities
managed in a coordinated way.
Obtain benefits & control which is not obtainable from managing
them individually.
Projects
Sub
Program
Program
activities
Group of related
Managed in coordinated way
To Obtain
Benefits Controls
Not obtainable by managing projects individually.

What is Program?
How Program is organized?
Program
Project1 Project2
Sub-
Programs
Project1 Project2
Other
work

Program Example
Example: Setting up Metro.
Building Metro Stations Acquisition of Metro
Development of
Maintenance facility
Elevated route
construction
Metro tracks & signaling Reservation software Organization setup.
Other work
(Advertisement, temp.
service centre)

Program Example
Example: Metro Program
Metro Program
Metro Stations Subprogram
Station1 Project
Station 2 Project
Project: Acquisition of Metro
Project: Maintenance facility
Elevated route construction
Subprogram
Bridge1 Project
Bridg2 Project
Route ConstructionProject: Metro tracks & signaling
Project: Reservation software
Project: Organization setup.
Other Work (Advertisement,
Service Centre)

Characteristics of a Program
1. Contains Related Projects 2. Common or related output
3. Align Projects direction &
improve co-ordination
4. Helps organization to
increase Benefit & Control
5. Decreased risk

Program Management & Program Manager
Program Management:
• The application of Knowledge, skills, tools and
techniques to a Program to meet the Program
requirements.
• Obtain benefits and control not available by
Managing Projects individually.
Program manager:
• Provides leadership and direction for the project
managers heading the projects within the program.
• Advantages:
• Focus on Benefits.
• Decreased risk.

What is Portfolio?
Collection
of
Program
1
Program
2
Projects
Operati
ons
Helps achieve
specific
strategic
business goals
Optimize use of
resources
Enhance Benifts
to Organization
Reduce Risks

What is Portfolio?
Collection of Projects, programs, sub portfolios and operations
managed as a group to achieve strategic objective.
Collection of
Projects
Programs
Sub
Portfolio
Operations
Managed as Group Strategic

Portfolio Example
How Portfolio is organized?
Portfolio
Sub-
Portfolio
Project1 Program
Sub-
Programs
Project1 Project2
Program
Projects1 Project2
Projects Operations

Portfolio Example
Example: Think of big construction company
Luxury housing Low cost housing Villas Towers
Roads Bridges Railway routes Cricket stadium

Portfolio Example
Example: Construction Company Portfolio
Construction
Company Portfolio
Operations
(Contracting,
Finance, Legal)
Housing
Sub-Portfolio
Luxury Housing
Program1
(Greens)
Luxury Housing
Program 2
(Garden's)
International city
Program 3
Sub Program 1
(Italy Cluster)
Project1: Building
No1
Project2: Building
No2
Sub Program 2
(England Cluster)
Transport Sub-
Portfolio
Road1 Program
Rail road1
Program
Cricket Stadium
Program
Project: Stadium
construction
Project: Sports
facility setupProject: Finance
system
implementation

Characteristics of a Portfolio
Driven by Return on
Investment
Aligned to Strategic Objective Centralized Control
Not necessarily directly
related
Include Operations

Project, Program & Portfolio
Similarities:
• Certain Practices &
methods are similar
• Similar Project needs
Difference:
• Different Objectives
• Organized differently
Project Program Portfolio
Portfolio Management
Project, Operations & Program investments
Program Management
Managing related Projects
Project Management
Managing single Project

Project, Program & Portfolio summary
• Individual projects that
can be in depended or
part of the Program.
• They are still
considered as part of
the Portfolio.
Project:
• A group of related
projects, subprograms
and program activities
managed in a
coordinated way.
• Obtain benefits and
control not obtainable
from managing them
individually.
Program:
• It is a collection of
Projects, programs, sub
portfolios and
operations managed as
a group to achieve
strategic objectives.
• Not necessarily directly
related.
Portfolio:

Relationship among Project, Program & Portfolio

What is Organizational Project Management (OPM)?
OPM
Project Program Portfolio
What's a
difference
OPM act as
Guide or driver
Prioritized,
Managed,
Executed,
& Measured
Provide
Directions
on how
Keeps
Organization
focus on
Unless told, assume OPM is in place in organization while answering the
questions.

What is Organizational Project Management (OPM)?
OPM is Strategy execution framework:
• Support practices to consistently & predictably deliver org. strategy
• Produce better performance, results, & sustainable competitive
advantage.
Strategy
Execution
Framework
• Better
performance
• Better
results
• Sustainable
competitive
advantage
Consistently &
Predictably deliver

What is Project Management Office (PMO)?

What is Project Management Office (PMO)
It is a management structure that standardizes project-
related governance processes & facilitates sharing of
resources, methodologies, tools & techniques.
Management
structure
Standardizes
project
governance
Facilitate
Sharing of
Resources
Methodologies
Tools &
techniques
Can act as integral stakeholder & key decision maker

Project Management Office (PMO)
Supporting
• Consultative role
• Supplies templates
• Best practice
• Lessons learnt
• Has low control
Controlling
• Requires compliance
• Train others
• Assist with tools
• Has moderate control
Directive
• Provide PM for projects
• Takes control
• Manages directly
• Responsible for results
of these projects
• Has high control

Primary function of PMO -> Supports PM’s
Identifying & developing Project Management methodology,
practices & standards.
Monitoring compliance with Project Management standard policies,
procedures , and templates via project audits .
Developing and managing project policies, procedures, templates,
and other shared documentation ( organizational process assets);
Coaching, mentoring , training and oversight.
Co-coordinating communication across projects.
Managing shared resources across all the projects.

The role of PM Vs. PMO
Project Manager:
Focuses on project objectives.
Controls assigned project resources.
Manages constraints of individual projects.
Project Management Office
Manages major program scope changes to
better achieve business objectives.
Optimizes use of shared resources across
projects.
Manages methodologies, standards,
risks/opportunities, metrics, &
interdependencies.

Exercise – Determine PMO type
#
1
2
3
4
5
6
Description
Manage & control all projects within organization
Coordinate between all the projects in the organization
PMO playing Consultative role, provides PM with
templates & Best practice.
Hire & Fie project manager
Start or stop project
Prioritize Projects
PMO
Type
Directive
Controlling
or Directive
Supportive
Directive
Directive
Controlling
or Directive

Relationship between Project Management,
Operations Management & Organizational Strategy

What is Operations?
Produce
repetitive
outputs
assigned
resources Perform
same set of
tasks
On-going Endeavours
According to standards of
On-going endeavours that produce repetitive outputs, with
resources assigned to perform same set of tasks according to
standards institutionalized in a product life cycle.

Project or Operation?
Call Center Moon Mission
Bridge Construction
Filling Gas@Petrol
Pump

Project or Operation?
Bank Reception Bank Software
Upgrading to new
OS
CAR Manufacturing

Project vs. Operations:
• Are Temporary (has start
&end date)
• To attain project objectives.
• Catalyst for change.
• Deliver unique product or
services.
• Uses Heterogeneous teams.
Project
• On-going activity that
produces repetitive output.
• To sustain the business.
• Maintain status quo.
• Standard product or services.
• Uses Homogeneous teams.
Operation

Project Interact with Operations
Interacts at each closeout phase & end of product life cycle.
When developing a new product, upgrading, or expanding.
While improving operations or product development process.
Deliverables
Knowledge
Operational resources
Project Resources

What is Operations Management ?
It is an area of management concerned with overseeing, designing,
& controlling process of production & redesigning business
operations in production of goods or services.
Production
Process
Redesigning
Business
operations
Area of
management
Concern with
Overseeing
Designing
Controlling
Necessary to achieve strategic and tactical goals of the business.
Production Manufacturing
Accounting
Software
support
Examples

Operations management
Operational Stakeholders in Project Management
Plant
operators,
Manufacturing
line
supervisors,
Help desk
staff,
Production
system
support
analysts,
Customer
service
representative,
Salespersons,
Maintenance
workers,
Telephone
sales
personnel,
Call center
personnel,
Retail workers,
Line managers,
and
Training
officers.
It is outside the scope of formal project Management
Concerned with ongoing production of goods & services.
Ensure business operations continuity
Concerned with managing processes that transform input into output

Organizations and Project Management
Organizations use governance to establish strategic
direction and performance parameters.
E.g., Organizational Project Management (OPM3)
• It provides the purpose,
expectations, goals, and
actions necessary to guide
business pursuit and is
aligned with business
objectives.
Strategic direction
• When business alignment is
constant, the chance for
project success greatly
increases because project
remains aligned with
strategic direction of the
organization.
Business alignment

What is Organizational Governance?
Rules Practices Processes
Organizational Governance is the System of
Direct &
Control
Company
The system of rules, practices and processes by which a
company is directed and controlled.
It balance interests of:
Shareholders Management Customers Suppliers Financiers Government Community

Link between Project Management & Org. Governance
Service subject to
strict Org.
Governance
Rules Practices Processes
Organizational Governance Process & Procedures
Direct &
Control
Company
Governance
Criteria
Impose
Constraints
Ensure Strategic
business Outcome
is achived
The Projects (& programs) are undertaken to achieve strategic
business outcomes by applying formal organizational governance
processes & Procedures.
Ex: If an organization has adopted policies in support of sustainability practices then
PM should be aware of sustainability requirements.

Relationship between Project Management & Org. Strategy
Sponsor
Portfolio Manager
Program Manager
Alignment Potential
conflicts
Organizational Strategy is an expression of how an organization
needs to evolve over time to meet its objectives along with a
detailed assessment of what needs to be done.
Org. strategy should provide guidance & direction to project
management, specially when project is supporting organizational
strategies.
PM should document conflicts if goals of a project are in conflict with org. strategy
Project Organizational

Business Value
The entire value of the business; total sum of all
tangible & intangible elements. It is unique to each
organization.
Tangible
Monetary assets
Fixtures
Stockholder equity
Utility
Intangible
Good will
Brand recognition
Public benefit
Trademarks.
Value may be created through effective management of ongoing operations.
Using Portfolio, program, and project management, organizations will possess ability to
obtain greater business value.

Role of Project Manager

Project Manager
Management Skills:
Planning
Meeting Management
Time Management
Organizing
Controlling
Interpersonal Skills
Leadership
Communication
Influence
Motivation
Negotiation
Team/Trust building
The Person assigned by Performing Organization to lead
team that is responsible for achieving project Objective.

Project Manager
The Person assigned by Performing Organization to lead
team that is responsible for achieving project Objective.
Reports to
Functional manager
Program manager
Portfolio Manager
Works with
Business, System analyst,
Quality assurance manager
SME, Vendor, Project Staff, PMO
PM often has lot of responsibility and lacks real authority. He often
negotiate with management/ functional manager for resources.

Project Manager & Other Managers
Project Manager is responsible to manage Project constraints:
• Project WorkProject Manager
• Program ManagementProgram Manager
• Portfolio managementPortfolio Manager
• Administrative workFunctional Manager
• Production/ Operational workOperations Manager
•Budget •Quality •Schedule •Resources •Scope •Risk

Project Manager & Project Constraints
Triple Constraints Competing Project
Constraint
•Budget •Quality •Schedule •Resources •Scope •Risk

Project Manager -> Authority
In control of the project all the time
Authorized to spend the approved project budget
Authorized to make all project execution decisions
Empowered to use resources

Project Manager -> Competencies
Knowledge
PerformancePersonal
• What PM knows about project management.Knowledge
• What PM is able to do or accomplish while applying his or
her project management knowledge.
Performance
• How PM behaves while performing project activity.
(Attitudes, core personality and leadership)
Personal

Interpersonal skills
Leadership Team building Motivation
Decision-maker Communication Influencing
Political and cultural
awareness
Negotiation Trust Building
Conflict management Coaching

PMBOK Body of Knowledge
Standards for Program
Management
Program Management
Standards for Portfolio
Management
Portfolio Management
Organizational Project
Management Maturity
Model
OPM

Questions -1
A series of activities to create a unique product of service by a specific date is best described as which one
of the following?
A. A program
B. An operation
C. A project
D. A subproject
C - A project is a temporary endeavour to create a unique product, service, or result. Deadlines
and cost constraints are tied to the project.
A is incorrect because programs are a collection of projects working towards a common cause.
B is incorrect because operations are ongoing activities of an organization.
D, a subproject, describes a project that is part of and supports a larger project.

Questions -3
Which one is the best example of progressive elaboration?
A. It is the process of decomposing the work into small, manageable tasks
B. It is the process of taking a project from concept to completion
C. It is the process of taking a project concept to a project budget
D. It is the process of identifying the business needs of a potential project
B - Progressive elaboration means developing in steps and then continuing by increments. (PMBOK
1.2.1.3)
A describes the process of breaking down the project scope into the task list.
C is not a valid choice for this question.
D is part of stakeholder analysis, and is not the best answer for this question.

Questions -4
Your organization would like to create a new product based on market research. This new
product will be created by a project. This is an example of which one of the following reasons to
launch a new project?
A. Organizational need
B. Customer request
C. Market demand
D. Legal requirement
C - Products can be created for a number of reasons, & this example supports market demand choice.
(PMBOK 1.2.3)
A, an organizational need, is a project to satisfy an internal need.
B is incorrect because no specific customer asked for this new product.
D is incorrect because there is no legal requirement to create the new product.

Questions -5
A program is which one of the following?
A. A very large, complex project
B. A collection of small projects with a common goal
C. A collection of projects with a common cause
D. A collection of subprojects with a common customer
C - best describes a program. A program is a collection of projects working together
to gain benefits by managing the projects as a group rather than on an individual
basis.
A, B, and D are not attributes of programs. PMBOK 1.6.1

Questions -6
You have an excellent idea for a new project that can increase productivity by 20 percent in
your organization. Management, however, declines to approve the proposed project because
too many resources are already devoted to other projects. You have just experienced what?
A. Parametric modelling
B. Management by exception
C. Project portfolio management
D. Management reserve
C - Project portfolio management is the management, selection, and assignment of projects
that support an organization's business objectives. (PMBOK 1.6.2)
A, B, and D are all incorrect choices.

Questions - 7
Which statement is correct?
A. A project manager must use every process identified within the PMBOK on every project
B. A project must use every tool and technique as identified within the PMBOK on every project
C. A project manager must use the most appropriate processes on every project
D. A project manager must agree that he will use most appropriate tools & techniques on every
project
C - A project manager does not have to use all of the process within the PMBOK, only the
most appropriate.
A, B, and D are incorrect statements, as the project manager does not use every
process or tool and technique within the PMBOK. PMBOK 1.1

Questions - 8
Projects are temporary endeavours to create a unique product, service, or result.
Which one of the following does not relate to the concept of "temporary" in project
management?
A. The project team
B. The market window status on which the project is capitalizing
C. The project deliverable
D. The project manager
C. Most projects create a deliverable that will outlive the project itself.
A, B, and D are incorrect, as these attributes are temporary in nature. PMBOK
1.2.1.1

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