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PMP Final Review
be ready for the exam
Prepared by:
Engr. Mohamed Maged, PMP
Admin of:
https://www.facebook.com/Prof.Planner
Instructor: Mohamed Maged
Senior Project Control Engineer, B.Sc. of Civil engineering – Ain Shams
University, with experience in MENA region of (construction, infrastructure,
and roads) Mega projects, in professions of Contract administration, Procurement,
Tender estimating, Cost control, Planning & Claim analysis.
Instructor of Planning & Project Management:
- Construction Management Planning and Control (CMPC).
- Delay, Claim and Dispute Resolution (DCDR) in PMBOK, FIDIC & SCL protocol.
- Project Management Professional (PMP).
- Free lectures with cooperation of Egyptian Engineers Association in Saudi:
- Product oriented construction management
- Top 10 planning fundamentals
- Scope creep – cases and preventive actions
- Claims and dispute resolution in FIDIC
Mohamed Maged (Professional Certificates)
PMP Project Management Professional (PMI – USA)
SFC Scrum Fundamentals Certified (SCRUM study)
Associate of Chartered Institute of Arbitrators (CIArb - London)
Fellow of Association of International Arbitration (AIA - Brussels)
FIDIC Contracts Consultant: International academy of mediation and
arbitration - Egypt.
Six Sigma Yellow Belt Professional (6 Sigma Study- PMI)
Mohamed Maged (Prof. Planner)
Admin of the biggest online community of Arab Planners (10,000+)
(Facebook Page: to be prof. planner, related group: Best Advice for
Planners – Public group)
SlideShare: www.slideshare.net/MohamedMaged8/
Planning fundamentals: http://www.slideshare.net/Mohamed
Maged8/50qts-of-planning-fundamentals-ver04
YouTube Channel: https://www.youtube.com/ArabPlanners.
Arranged Two Annual Conferences of Planning and
Project Management (Anniversary of Facebook Page: Prof.Planner)-
American University in Cairo, August 2014 & 2015.
A GUIDE TO THE PROJECT
MANAGEMENT BODY OF
KNOWLEDGE (PMBOK®
Guide) – Fifth Edition
Syllabus: Program of Study
• Project management framework
• Project Initiating processes
• Scope management
• Time management
• Cost management
• Quality management
• HR management
• Communication management
• Stakeholder management
• Procurement management
• Risk management
• Integration management
• Professional conduct
• Jan 2016 Exam changes
Project. A temporary endeavor undertaken to create a unique
product, service, or result (not operation: ongoing and
repetitive, can be included in the project if it’s a part of it).
Progressive Elaboration. The iterative process of increasing the
level of detail in a project management plan as greater
amounts of information and more accurate estimates become
available (rolling wave planning).
I1
Temporary
has a beginning & an
end
Unique
product, service, or
result
Progressive
Elaboration
Business Case. Typically, the business need (Market demand,
Organizational need, Customer request, Technological advance, Legal
requirement, Social need) and the cost-benefit analysis are contained in
the business case to justify the project.
Note:
Feasibility Study.
Usually consists of
Technical,
Economic, Market/
Environmental,
and Legal studies.
Statement of Work (SOW). by initiator, sponsor or customer - A narrative
description of products, services, or results to be delivered by the
project (Business need, Product scope description, Strategic plan).
Product Life Cycle. phases of a product,
from concept through delivery, growth,
maturity, and to retirement (Benefit/Cost =1).
Project Life Cycle. The series of phases that a
project passes through from its initiation to its
closure (Project Boundary).
I2
Predictive Life Cycle. project scope, and the time and cost
required to deliver that scope, are determined as early as
possible.
Iterative Life Cycle. Iterations develop the product through a
series of repeated cycles, while increments successively add
to the functionality of the product.
Incremental Life Cycle. A project life cycle where the
project scope is generally determined early in the project life
cycle, but time and cost estimates are routinely modified.
Adaptive Life Cycle. change-driven or agile methods -
Scrum, iterative and incremental, but differ in that iterations
are very rapid.
Predictive Life
Cycle
Project Management. The application of knowledge, skills,
tools, and techniques to project activities to meet the
project requirements/ objectives.
Constraint. A limiting factor that affects the execution of a
project, program, portfolio, or process (time, cost, quality,
scope, risk, resources & customer satisfaction).
Project Management Process Group. A logical grouping of
project management inputs, tools and techniques, and
outputs.
Initiating Process Group. obtaining authorization to start the
project or phase (Two Processes out of 47 Processes ).
Planning Process Group. define the course of action
required to attain the objectives (most important).
Executing Process Group. to complete the work defined in
the project management plan (most time and resource
usage).
Monitoring and Controlling Process Group. to track, review,
and regulate the progress and performance of the project;
identify any areas in which changes to the plan are
required; and initiate the corresponding changes.
Closing Process Group. to finalize all activities to formally
close a project or phase.
I3
I4
Subproject. A smaller portion of the overall project created when a project is
subdivided into more manageable components or pieces.
Program. Related projects, subprograms, and program activities managed in a
coordinated way to obtain benefits not available from managing them individually.
Portfolio. Projects, programs, subportfolios, and operations managed as a group to
achieve strategic objectives.
Organizational Project Management Maturity. The level of an organization’s ability
to deliver the desired strategic outcomes in a predictable, controllable, and reliable
manner - Organizational Project Management Maturity Model (OPM3®).
Project Management Office (PMO). An organizational structure
that standardizes the project-related governance processes and
facilitates the sharing of resources, methodologies, tools, and
techniques (supportive, controlling & directive).
Project Governance. The alignment of project objectives with the strategy of the
larger organization by the project sponsor and project team, and is required to fit
within the larger context of the program or organization sponsoring it, but is
separate from organizational governance.
Product-oriented processes. These
specify and create the project’s
product, typically defined by project
life cycle and vary by application area.
I5
Phase-to-Phase Relationships:
- Sequential relationship. -Overlapping relationship.
Projectized Organization the project
manager has full authority (team is loyal
to the project – buy-in, but don’t have
home).
Functional Organization. clear superior,
and staff are grouped by areas of
specialization (team has career path,
technical support).
Matrix Organization. the project
manager shares responsibility with the
functional managers (strong, balanced
& weak: expeditor or coordinator).
Composite Organization fundamentally
functional organization may create a
special project team.
PM may interact with : Strategic, middle
management, and operational levels.
12
Organizational Governance. Organizations use governance to establish strategic
direction and performance parameters. Organizational governance criteria can impose
constraints on projects - particularly if the project delivers a service which will be subject to
strict organizational governance.
Organizational Process Assets. Plans, processes, policies, procedures, and knowledge
bases that are used by the performing organization (historical information, lessons learned,
policies, templates,…).
Enterprise Environmental Factors. Conditions, not under the immediate control of the
team, that influence, constrain, or direct the project, program, or portfolio.
Business Value. a concept that is unique to each organization. Business value is defined as
the entire value of the business; the total sum of all tangible and intangible elements.
Project Management Information System (PMIS). An information system consisting of the
tools and techniques used to gather, integrate, and disseminate the outputs of project
management processes. It is used to support all aspects of the project from initiating
through closing, and can include both manual and automated systems.
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.
I7
Stakeholder. who may affect, be
affected by, or perceive itself to be
affected by a decision, activity, or
outcome of a project.
Customer. that will pay for the
project’s product, service, or result.
Customers can be internal or external
to the performing organization.
Sponsor. who provides resources
(funding to specific scope) and
support (with stakeholders) for the
project, program, or portfolio and is
accountable for enabling success.
I8
The project manager is the person assigned by the performing organization to lead the team that is responsible for
achieving the project objectives. Depending on the organizational structure, a project manager may report to a
functional manager. PM may be one of several project managers who report to a program or portfolio manager.
1- Responsibilities and Competencies of the Project Manager. to satisfy task needs, team needs, and individual needs.
Competencies: -Knowledge – Performance -Personal, and balancing the project constraints.
2- Interpersonal Skills of a Project Manager. such as: - Leadership, - Team building, - Motivation, - Communication, -
Influencing, - Decision making, - Political and cultural awareness, - Negotiation, - Trust building, - Conflict management,
and - Coaching.
Project Selection
I9
Economic Value Added (EVA). concerned with whether the project returns to the company
more value than the initiative costs.
Payback period. Payback period in capital budgeting refers to the period of time to recoup
the funds expended in an investment. Working Capital. current assets minus liabilities for
an organization or amount of money the company has available to invest.
Benefit cost ratio (BCR). the amount of money a project is going to make versus cost to
build it. Generally, if benefit is higher than 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. People calculate this
number to see if it’s worth doing a project (PV = FV / (1+r)^n). Discount Rate. The interest
rate used to calculate present value of expected yearly benefits and costs.
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 usually
expressed as a percentage of the funding that has been allocated to it.
Depreciation. The rate at which project loses value over time. the product loses value as
time goes on (Straight line: The same amount of depreciation is each year, Accelerated:
Double Declining Balance, Sum of the Years Digits) .
Lifecycle costing. it’s really useful to figure out how much you expect a project to cost -
not just to develop, to support the product once it’s in place and being used by customer.
Opportunity cost. When an organization has to choose between projects, it’s always
giving up the money would have made on the next best one it doesn’t do (not selected).
Sunk cost. is a cost that has already been incurred and cannot be recovered. Sunk costs
should not affect the rational decision-maker's best choice, the prospective cost is
an avoidable future cost and is properly included in any decision-making processes.
Law of Diminishing Returns. After a certain point, adding more input/ resource/ money
will not produce a proportional increase in productivity/ return.
Trade-offs by two categories:
1. Benefit measurement
methods (Comparative
approach)
- Murder board (a panel of
people who try to shoot down
a new project idea).
- Peer review .
- Scoring models .
- Economic models
(described aside).
2. Constrained optimization
methods (Mathematical
approach)
Linear programming .
Integer programming .
Dynamic programming .
Multi-objective programming.
16
Project Management Knowledge Area. An
identified area of project management defined
by its knowledge requirements and described in
terms of its component processes, practices,
inputs, outputs, tools, and techniques.
P1 4.1. Develop Charter - Integration
Initiating Process Group
Agreements. when a project is being performed for an external customer.
Enterprise environmental factors. PMIS (the work authorization system).
Expert Judgement. Such expertise is provided by any group or individual with
specialized knowledge or training.
Facilitation techniques. Building consensus and overcoming obstacles.
Brainstorming, conflict resolution, problem solving, and meeting management
are examples of key techniques used by facilitators.
Project Charter. A document issued by the project initiator or sponsor that
formally authorizes the existence of a project and provides the project manager
with the authority (milestones is helpful in management, may use phase exits/
stage gates/ decision gates/ kill points as phase end reviews to determine if the
project should continue and correct errors).
Not having a project charter is unethical, it wastes
company time, human resources, and money.
P2
13.1. Identify Stakeholders
Procurement Documents. Relevant parties, such as the parties in the contracts,
suppliers, should also be considered as part of the project stakeholder list.
Stakeholder Analysis. systematically gathering and analyzing quantitative and
qualitative information to determine whose interests should be taken into account
throughout the project (as early as possible, Stakeholders can be identified
throughout the project). There are multiple classification models, such as:
- Power/interest grid, grouping the stakeholders based on their level of authority
(“power”) and their level or concern (“interest”) regarding the project outcomes;
- Power/influence grid, grouping the stakeholders based on their level of authority
(“power”) and their active involvement (“influence”) in the project;
- Influence/impact grid, grouping based on their active involvement (“influence”)
and their ability to effect changes to the project’s planning or execution (“impact”);
- Salience model, describing classes of stakeholders based on their power (ability to
impose their will), urgency (need for immediate attention), and legitimacy (their
involvement is appropriate).
Stakeholder Register.
A project document
including the
identification,
assessment (e.g. skill),
and classification of
project stakeholders
(should be shared
with others at the
discretion of the
project manager).
Key stakeholders include anyone in a decision-making or
management role who is impacted by the project outcome.
5.1. Plan Scope Management
P3&4
Scope Management Plan. A
component of the project or program
management plan that describes how
the scope will be defined, developed,
monitored, controlled, and verified.
Requirements Management Plan. A
component of the project or program
management plan that describes how
requirements will be analyzed,
documented, and managed.
5.2. Collect Requirements
Requirements Documentation. A description of how individual
requirements meet the business need for the project.
Requirements Traceability Matrix. A grid that links product
requirements from their origin to the deliverables that satisfy
them.
The project charter is used to provide the
project context needed to plan the scope
management processes.
Requirements: Business requirements
(organization) , Stakeholder requirements,
Solution requirements (functional,
nonfunctional as safety), Transition
requirements (training), Project
requirements, Quality requirements.
20
Interviews. talking directly to stakeholders (confidential).
Focus Groups. An elicitation technique that brings together prequalified stakeholders and
subject matter experts to learn about their expectations.
Facilitated Workshops. focused sessions that bring key cross-functional stakeholders
together (JAD: joint application development, QFD: quality function deployment, VOC:
voice of customer & User stories).
Group Creativity Techniques. ideas within a group of stakeholders.
Brainstorming. by using a group of team members or experts.
Nominal Group Technique. enhances brainstorming with a voting process used to rank
the most useful ideas.
Idea/Mind Mapping. to consolidate ideas created through
individual brainstorming sessions into a single map (tree).
Affinity Diagram. large numbers of ideas to be classified.
Multi-Criteria Decision Analysis. a systematic analytical approach for establishing criteria.
Group Decision-Making Techniques.
Delphi Technique. consensus of experts anonymously unbiased (secretly). A facilitator uses a questionnaire, then
recirculated. Consensus (unanimity/harmony) may be reached in a few rounds.
Unanimity. Agreement by everyone in the group. Majority. Support from more than 50 percent.
Plurality. Decisions made by the largest block. Dictatorship. one individual makes the decision.
Questionnaires and Surveys. Sets of questions to quickly accumulate information from a large no. of respondents.
Observations. a direct way of viewing (job shadowing).
Prototypes. working model before building (storyboarding, mockup).
Benchmarking. the comparison as basis for measuring performance.
Context Diagrams. A visual depiction (scope model) of the product.
Document Analysis. An elicitation technique that analyzes existing documentation.
5.3. Define Scope
P5
Define Scope. The process of developing a detailed description of
the product and project scope (by project team). The key benefit of this
process is by balancing the requirement with the benefit of organization.
It also provides a common understanding of the project scope among project stakeholders.
Product Analysis. For projects that have a product as a deliverable, it is a tool to define scope
that generally means asking questions about a product and forming answers to describe the
use, characteristics, and other the relevant aspects of what is going to be manufactured.
Value Engineering. An approach used to optimize project life cycle costs, save time, increase
profits, improve quality, expand market share, solve problems, and/or use resources more
effectively.
Alternatives Generation. A technique used to develop as many potential options as possible in
order to identify different approaches to execute and perform the work of the project.
5.4. Create WBS
P6
Create WBS. subdividing project deliverables and project work
(including management work) into smaller, more manageable
components, can be used as internal or external communications tool.
Decomposition. A technique used for dividing and subdividing project
scope and project deliverables into smaller, more manageable parts.
Scope Baseline. The approved version of a scope statement (1), work
breakdown structure (WBS (2): A hierarchical decomposition with
leveled numbering system/ Code of Accounts; Work Package. the
lowest level of the WBS or deliverables for which cost, duration can be
estimated and managed -4/40, 8/80, up to 300 hrs based on project
size- contains total work ‘100% rule’), and its associated WBS dictionary
(3) (responsibility), that baseline can be changed only through formal
change control procedures.
P7&8
Verified deliverable. Is output of internal quality control process.
Work Performance Data. execution observations and measurements.
Inspection. Examining, audit policy or measuring (by customer/ sponsor).
Accepted Deliverables.
completed project deliverables
validated by the project
customer or sponsors.
Change Request. A formal
proposal (corrective action,
preventive action, defect
repair, scope change).
Work Performance Information.
Data analyzed (compared to
baseline).
Variance Analysis. determining the cause and degree of
difference between the baseline and actual performance.
5.5. Validate Scope
5.6. Control Scope
Gold plating Sometimes people
think of a really great
improvement to the product
(giving extra) and go ahead and
make it without even checking
the impact (unsuccessful project).
Scope Creep. The uncontrolled
expansion to product or project
scope without adjustments to
time, cost, and resources.
P9&10
Analytical Techniques. evaluate, analyze, or forecast potential
outcomes based on possible variations (any analysis, grouping,
forecast, etc.).
Rolling Wave Planning. An iterative planning technique in
which the work to be accomplished in the near term is
planned in detail, while the future is planned at a higher level.
6.1. Plan Schedule Management
6.2. Define Activities
Activity List. A documented
tabulation of schedule activities
that shows the activity
description, activity identifier,
and a sufficiently detailed scope
of work description.
Activity Attributes. Activity
attributes include activity codes,
predecessor activities, successor
activities, logical relationships,
leads and lags, resource
requirements, imposed dates,
constraints, and assumptions
(may vary by application area).
(Level of Effort (LOE). Hammock,
An activity that does not
produce definitive end products
and is measured by the passage
of time. Milestone List. A list
identifying all milestones and
indicates whether is mandatory
or optional. (Milestone. Check
point: A significant event in a
project, program, or portfolio).
6.3. Sequence Activities
P11
Project Schedule Network
Diagram. A graphical
representation of the logical
relationships among the project
schedule activities (pure logic
diagram).
Precedence Diagramming Method (PDM). constructing a
schedule Activity-on-Node (AON).
Dependency Determination. Logical Relationship/ mathematical
analysis:
Mandatory Dependency. contractually required or inherent in
the nature of the work. Hard Logic.
Discretionary Dependency. based on knowledge of best
practices, Preferred Logic. Soft Logic.
External Dependency. A relationship with non-project activities.
Successor Activity. that logically comes after Vs Predecessor.
Applying Lag. a successor activity waiting Vs Lead (-ve lag).
P12&
13
Identified risks are inputs
to the estimate (to be
done by all team),
additional risks may be
uncovered as output
also.
Alternative Analysis. options to
execute and perform the work.
Published Estimating Data. Several
organizations publish production
rates and unit costs of resources for
different countries.
Activity Resource Requirements.
Types and quantities of resources
required for each activity.
Resource Breakdown Structure. A
hierarchical by category and type.
6.4. Estimate Activity Resources
6.5. Estimate Activity Durations
Bottom-Up Estimating. by
aggregating (roll up) the estimates of
the lower-level of the (WBS).
Analogous Estimating. estimating of
an activity or a project using historical
data from a similar activity or project
(top down estimate- quick & cheap).
Parametric Estimating. an algorithm/
mathematical model (e.g. dollars per
module) to calculate based on
historical data and project
parameters (learning curve).
Calendar. A calendar identifies working days
and shifts that are available, distinguishes time
periods or parts of days that are available.
Activity Duration
Estimate. A
quantitative
assessment of the
likely amount or
outcome for the
duration of an activity.
Three-Point Estimate. A technique used to estimate cost or duration by applying an
average of optimistic, pessimistic, and most likely estimates when there is uncertainty with
the individual activity estimates (PERT), the mean with 50% probability is:
Duration (Triangle distribution) = (Opt. + Most + Pes.) / 3
Duration (Beta distribution) = (Opt. + 4*Most + Pes.) / 6, Standard dev. - σ (uncertainty) =
(Pes.-Opt.) / 6, Variance = (Standard deviation)^2……6 sigma (mean +/- 6 σ)
Program Evaluation and Review Technique (PERT). A technique for estimating that applies a
weighted average of optimistic, pessimistic, and most likely estimates when there is
uncertainty with the individual activity estimates.
Pessimistic Duration. Estimate of the longest activity duration that takes into account all of
the known variables that could affect performance.
Optimistic Duration. An estimate of the shortest activity duration that takes into account all
of the known variables that could affect performance.
Most Likely Duration. An estimate of the most probable activity duration that takes into
account all of the known variables that could affect performance.
Reserve Analysis. An analytical technique to determine the essential features and
relationships of components in the project management plan.
Reserve. A provision to mitigate cost and/or schedule risk.
Contingency. An event or occurrence that could affect the execution of the project.
Management constraint should be analyzed first by options otherwise negotiate for change,
padding (increase without analysis) is not acceptable, but decreasing can be by re-
estimating and eliminating unexpected risks during execution.
fP13
P14
6.6. Develop Schedule
Bar chart is a good tool for
showing progress/ status.
Schedule Network Analysis. identifying early and late start dates,
as well as early and late finish dates, for the uncompleted portions of project schedule.
Critical Path Method. estimate the minimum project duration and determine the
flexibility on the logical network paths within the schedule model.
Critical Chain Method. method that allows the project team to place buffers on any
project schedule path to account for limited resources.
Resource Optimization Techniques. adjust planned resource use.
Resource Leveling. start and finish dates are adjusted based on
resource constraints of balancing demand for resources
(can increase the critical path).
Resource Smoothing. limits (within total float, critical path doesn’t change).
Modeling Techniques. (What-If Scenario Analysis, Simulation- Monte Carlo probability=S,
etc.). GERT. is a conditional diagramming method allows probabilistic treatment (loops).
Schedule Compression. Start by earlier possible critical activities either:
Crashing. adding resources (add cost), or Fast Tracking. in parallel for at least a portion
of their duration (add risk/ rework).
Scheduling Tool. structural relationships, application of a scheduling method.
Time
Resource
need
Actual, not
leveled
Ideal
Leveled,
realistic
29
Forward Pass. A critical path method technique for calculating the early start
and early finish dates. Backward Pass. calculating the late start and late finish
dates by working backward from the project end date.
Free Float. The amount of time that a schedule activity can be delayed
without delaying the early start of any successor.
Total Float. The amount of time that a schedule activity can be delayed or
extended from its early start date without delaying the project finish date or
violating a schedule constraint.
Schedule Baseline. the approved version of a schedule model. It is accepted
and approved by the appropriate stakeholders (may be FMs).
Project Schedule. An output of a schedule model that presents linked
activities with planned dates, durations, milestones, and resources.
Schedule Data. The collection of information for describing and controlling
the schedule. Data Date. A point in time the status of the project is recorded.
Performance Reviews. A technique that is
used to measure, compare, and analyze
actual performance of work in progress on
the project against the baseline.
Schedule Forecasts. Estimates or predictions
of conditions and events in the project’s
future based on information and knowledge
available at the time the schedule is
calculated (Velocity. A measure of a team’s
productivity rate, used capacity planning
approach to forecast future project work).
Path
convergence
Path
divergence
6.7. Control Schedule
P16
&17
In the initiation a rough order of
magnitude (ROM / ballpark estimate)
−25% to +75%. Later budget then
definitive accuracy -5% to +10%.
Direct costs. are directly attributable to the
object. In construction, the costs of
materials, labor, equipment, etc., while
Indirect cost or overheads cannot be
directly traced to a specific project may be
also time-related such as fringe benefits.
Fixed costs. Non-recurring almost indirect
costs of business expenses such as
facilities and setup costs. This is in contrast
to Variable costs, which are volume-
related (and are paid per quantity
produced).
Activity Cost Estimates. cost of the
schedule activity that includes the cost
for all resources required to perform and
complete the activity, including all cost
types.
Basis of Estimates. Supporting
documentation outlining the details used
such as assumptions, constraints, level
of detail, ranges, and confidence levels.
Control thresholds. Variance thresholds for monitoring cost/schedule performance,
amount of variation to be allowed before some action needs to be taken.
7.1. Plan Cost Management
Cost of quality. Cost of confor-
mance & of nonconformance.
Vendor bid analysis.
estimating based on analysis of
the responsive bids from
qualified vendors.
Analytical techniques. include financial techniques
can include payback period, return on investment
(ROI), (IRR), discounted cash flow, and (NPV).
7.2. Estimate Costs
P18
7.3. Determine Budget Cost Aggregation. Summing the
lower-level cost estimates for a
given cost control account.
Planning Package. Control
Account. A management control
point to earned value.
Reserve analysis. Budget reserve
analysis can establish both the
contingency reserves and the
management reserves.
Contingency Reserve. Allowance
for identified risks that are
accepted (known unknown).
Management Reserve. for
unforeseen work that is within
scope (unknown unknown).
Historical Relationships. that result
in parametric or analogous
estimates involve the use of project
characteristics (parameters) to
develop mathematical models to
predict total costs.
Funding Limit Reconciliation.
comparing the planned
expenditure against any limits.
Project Funding
Requirements.
Forecast project costs
to be paid that are
derived from the cost
baseline for total or
periodic requirements,
including projected
expenditures plus
anticipated liabilities.
Budget accuracy -10% to +25%.
Cost Baseline. The approved
version of the time-phased
project budget, excluding
any management reserves.
P19
Performance Reviews.
Variance analysis,
Trend analysis, Earned
value performance.
Cost Forecasts. Either a
calculated EAC value
or a bottom-up EAC
value is documented
and communicated to
stakeholders.
7.4. Control Cost
(Factors)
Fixed Formula Method. An earned
value method for assigning a specified
percentage of budget value for a work
package to the start milestone of the
work package with the remaining budget
value percentage assigned when the
work package is complete.
Weighted Milestone Method. An
earned value method that divides a work
package into segments, each ending
with an observable milestone with a
weighted value of achievement.
percentage range of acceptable
variances will tend to decrease
as more work is accomplished
fP19
34
(Forecast & TCPI)
- Prevention over inspection. Quality should be planned, designed, and built
into - not inspected into the project’s management or the project’s deliverables
(quality is planned-in, not inspected-in), Philip Crosby: zero defect.
- Continuous improvement. (Kaizen: Japanese means continuous
improvement) The PDCA (plan-do-check-act) cycle is the basis for quality
improvement as defined by Shewhart and modified by Deming. In addition,
quality improvement initiatives such as Total Quality Management (TQM), Six
Sigma, and Lean Six Sigma could improve the quality of the project’s
management as well as the quality of the project’s product. Commonly used
process improvement models include Malcolm Baldrige, Organizational Project
Management Maturity Model (OPM3®), and Capability Maturity Model
Integrated (CMMI®).
Just-in-Time. Means keeping only the inventory you need on hand when you
need it. So, instead of keeping a big inventory of parts sitting around. Some
companies have done away with warehouses all together and have production
lines take the parts directly off the trucks to do the work. If you’re working in a
Just-in-Time shop, quality is really important because there isn’t any extra
inventory to deal with mistakes/ rework.
Quality. The degree to which a
set of inherent characteristics
fulfills requirements, (ISO 9000)
[10]. (Customer satisfaction,
fitness for use & conformance to
requirements).
Grade. A category or rank used
to distinguish items that have the
same functional use but different
technical characteristics (e.g.,
“hammer”) but do not share the
same requirements for quality
(e.g., different hammers may
need to withstand different
amounts of force).
8- Quality Management
P20
8.1. Plan Quality Management Quality Management Plan. A
component of the project
management plan describes
how an organization’s quality
policies will be implemented
and how to meet project’s
quality requirements (specs.:
conformance within tolerance).
Process Improvement Plan. It
details the steps for analyzing
processes to identify activities
that enhance value (process
boundaries- process owner,
configuration- graphical, metrics
& targets).
Quality Metrics. A description
of a project or product attribute
and how to measure it, include:
function points, mean time
between failure (MTBF), and
mean time to repair (MTTR).
Quality Checklists. A
structured tool used to verify
that a set of required steps.
Cost-Benefit Analysis. A financial analysis tool to determine the benefits
provided by a project against costs (marginal analysis: to determine level of
quality).
Cost of Quality. The cost of preventing mistakes is generally much less than the
cost of correcting mistakes when they are found by inspection or during usage.
Conformance Work. Work is done to compensate for imperfections that prevent
organizations from completing planned activities correctly as essential first-time
work, that are related to prevention and appraisal/ inspection (to avoid failure).
Nonconformance Work. Work is done to deal with the consequences of errors
and failures (because of failure - internal & external). In efficient quality
management systems, the amount of nonconformance work will approach zero.
37
Seven Basic Quality Tools. A standard toolkit for planning,
monitoring, and controlling the issues related to quality.
Fishbone diagram (1). Cause and Effect Diagram (Ishikawa).
A decomposition technique that helps trace an undesirable
effect back to its root cause, to simulate thinking & discuss.
Flowchart (2). The depiction in a diagram format of the
inputs, process actions, and outputs of one or more
processes.
Pareto Diagram (3). (Joseph Juran- 80/20: Heuristics) A
histogram, ordered by frequency of occurrence, that shows
how many results were generated by each identified cause.
Control Chart (4). A graphic display of process data over time
and against control limits. Run Chart. Trend analysis.
Control Limits. The area composed of standard deviations
on either side of the centerline or mean, any out of control is
assignable (special) cause and require investigation.
Specification Limits. customer’s requirements, may be
greater than or less than the area defined by the control limits.
Rule of seven. A process is considered out of control when 7
consecutive plot points are all above or all below the mean.
Accuracy. assessment of correctness (conformance to
target). Precision: dispersion of the data; standard deviation
(6 sigma (σ)= 99.9997%, 3 sigma (σ)=99.73%, 2 sigma (σ)=
95.46%, 1 sigma (σ)= 68.27%).
Checksheets (5). A tally sheet that can be used as a
checklist when gathering data.
Histogram (6). A special form of bar chart used to describe
the central tendency (group around mean, median or
mode), dispersion, and shape of a statistical distribution.
Scatter Diagram (7). A correlation chart (+ve or -ve) that
uses a regression line to explain or to predict how the
change in an independent variable will change a dependent
variable.
P21
Benchmarking. Benchmarking is the comparison of actual or planned practices, to identify best
practices, generate ideas for improvement, and provide a basis for measuring performance.
Design of Experiments. A statistical method for identifying which factors may
influence specific variables of a product or process under development or in production.
Statistical Sampling. Choosing part of a population of interest for inspection.
- Mutual exclusive: can’t happen at the same time like head and tail.
- Statistical independence: is the opposite of conditional probability. It states that the
probability of one event occurring does not affect the probability of another event occurring.
Additional Quality Planning Tools. They include, but are not limited to: brainstorming, force
field analysis (These are diagrams of the forces for and against change), nominal group
techniques and quality management and control tools.
8.2. Perform Quality Assurance Quality Audits. A quality audit is a
structured, independent process to
determine if project activities
comply with procedures/method
statement, policies and processes,
(by internal or external auditors).
Process Analysis. A process
analysis follows the steps outlined
in the process improvement plan to
identify needed improvements
(add-value).
39
Quality Management and Control Tools. They are a
type of quality planning tools used to link and
sequence the activities identified.
Affinity Diagram (1). A group creativity technique
that allows large numbers of ideas to be classified
into groups for review and analysis.
Process Decision Program Charts (2-PDPC). The
PDPC is used to understand a goal in relation to the
steps for getting to the goal.
Tree Diagram (3). A systematic diagram of a
decomposition hierarchy used to visualize as
parent-to-child relationships a systematic set of
rules.
Prioritization Matrices (4). A quality management
planning tool used to identify key issues and
evaluate suitable alternatives to define a set of
implementation priorities.
Interrelationship Digraphs (5). A quality
management planning tool, the interrelationship
digraphs provide a process for creative problem-
solving in moderately complex scenarios that
possess intertwined logical relationships.
Network Diagrams (6).
Matrix Diagrams (7). A quality management
and control tool used to perform data analysis
within the organizational structure created in
the matrix. The matrix diagram seeks to show
the strength of relationships between factors,
causes, and objectives that exist between the
rows and columns that form the matrix.
P22
8.3. Control Quality
Perform Quality Control. Control Quality is the process of monitoring and recording results of executing the
quality activities to assess performance and recommend necessary changes.
Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to
be produced to complete a process, phase, or project.
Seven basic quality tools.
Statistical sampling./ Attribute sampling (the result either conforms or does not conform - pass/ fail basis)
and variables sampling (the result is rated on a continuous scale that measures the degree of conformity).
Inspection. Also known as reviews, peer reviews, audits, or walkthroughs.
Approved Change Requests Review. A review of the change requests to verify that these were
implemented as approved.
Validated Changes. Any
changed or repaired items are
inspected and will be either
accepted or rejected before
notification of the decision is
provided. Rejected items may
require rework.
Verified Deliverables.
Deliverables that are result of
executing quality control process
to determine correctness.
The process of (5.5.
Validate Scope) to
be implemented
after this process.
P23
9.1. Plan Human Resource Management
Human Resource Management
Plan. A component of the
project management plan that
describes how the roles and
responsibilities, reporting
relationships, required skills, and
staff management will be
addressed and structured (Roles
and responsibilities - Project
organization charts - Staffing
management plan: source,
calendars/ histogram, release
plan, training, rewards,…).
Organization charts and position descriptions. Most of the formats
fall into one of three types hierarchical -OBS (1) Organizational
Breakdown Structure , text-oriented(2) (role of each stakeholder is
determined by project manager and stakeholder).The matrix
format(3). This also ensures that for any one task there is only one
person accountable to avoid confusion of responsibility. One
example of a RAM (Responsibility Assignment Matrix) is a RACI.
RACI uses responsible, accountable, consult, and inform statuses
to define the involvement of stakeholders in project activities.
Networking. Establishing connections and relationships with other
people from the same or other organizations.
Organizational Theory. provides information regarding the way in
which people, teams, and organizational units behave, applicable
theories may recommend exercising a flexible leadership style.
Levels of authority should match
responsibilities (not competencies).
P24
&25
9.2. Acquire Project Team
Pre-assignment. When project team members are selected in advance.
Negotiation. Project management team should effectively negotiate and influence others who are in a
position to provide the required human resources (dedicated full time, or part time, or others).
Acquisition. Obtaining human and material resources necessary to perform project activities (from outside
sources). Acquisition implies a cost of resources, and is not necessarily financial.
Virtual Teams. groups of people who fulfill their roles with little or no time spent meeting face to face.
Project staff assignment. Specify
which resources are assigned to
each activity. Project staff
assignments provide
documentation, which includes
the list of project team
members.
9.3. Develop Project Team Team Performance assessments. As
a result of conducting an evaluation of
the team’s overall performance/
effectiveness, the project management
team can identify the specific training,
coaching, mentoring, assistance, or
changes required to improve the
team’s performance.
fP25
Interpersonal Skills. Soft skills – are behavioral competencies that include proficiencies such as
communication skills, emotional intelligence, conflict resolution, negotiation, influence, team building, Building
trust, Active listening, Overcoming resistance to change and group facilitation (Leadership styles) .
Training. Training can be formal or informal. Examples of training methods include classroom, online,
computer-based, on-the-job training from project team member.
Ground Rules. Expectations regarding acceptable behavior by project team members.
Colocation. “Tight matrix,” (sometimes called “war room”) an organizational placement strategy where the
project team members are physically located close to one another in order to improve communication,
working relationships, and productivity.
Recognition and rewards. Generally, money is viewed as a tangible aspect of any reward system, but
intangible rewards could be equally or even more effective.
Personnel assessment tools. Personnel assessment tools give the project manager and the project team
insight into areas of strength and weakness (such as attitudinal surveys, specific assessments, structured
interviews, ability tests, and focus groups).
'Halo effect'. The halo effect is essentially a cognitive bias, it’s wrong behavior to promote every good one,
because you are good at one thing, you will be good at everything we ask you to do.
‘Perquisites (Perks)’ some employees receives special rewards e.g. parking spaces, corner offices, executive
dining.
‘Fringe Benefits’ Standard benefits formally given to all employees, such as insurance, education benefits
and profit benefits.
Team-building activities. As an ongoing process (The Tuckman Model: Forming. Independent. Storming.
Norming. Trust each other. Performing. Well-organized unit. Adjourning. The team completes the work and
released / moves on from the project).
44
Motivation theories:
Maslow’s Hierarchy of Needs says that people have needs, and until the lower ones
(Physiological (like food and warmth), Security - safety and job security,
Acceptance on the team) are satisfied they won’t even begin to think about the higher
ones (Esteem, Self-actualization (fulfilling your full potential, and making a
contribution)).
Herzberg’s Motivation-Hygiene Theory What Herzberg figured out was that you need
things like good working conditions, a satisfying personal life, and good relations with
your boss and coworkers - stuff he called “hygiene factors.” They don’t motivate you, but
you need them before you can be motivated. Until you have them, you don’t really care
about “motivation factors” like achievement, recognition, personal growth, or career
advancement.
McGregor’s Theory X and Theory Y McGregor tells us that there are two kinds of
managers: ones who assume that everyone on the team is selfish and unmotivated, and
ones who trust their team to do a good job. He calls the kind of manager who distrusts the
team a “Theory X” manager, and the kind who trusts them a “Theory Y” manager,
(Theory Z focused on increasing employee loyalty to the company).
McClelland’s Achievement Theory says that people need to be motivated. Achievement
is when someone performs well and is recognized for it. Power means he or she has a lot
of control or influence in the company. And someone feels a strong sense of affiliation
from being a part of a working team and having good relationships with coworkers.
Expectancy Theory says that you need to give people an expectation of a reward in order
to motivate them—but this works only if that award is achievable. If everyone knows the
award is either worthless or impossible to achieve, it will actually demotivate them!
P26
9.4. Manage Project Team
Issue Log. An issue log can be used to document and monitor who is responsible for resolving specific
issues by a target date (unresolved issues can be a major source of conflict and project delays).
Performance Reports. See work performance reports (Integration – Control).
Observation and Conversation. Observation and conversation are used to stay in touch with the work and
attitudes of project team members.
Project Performance Appraisals. Objectives for conducting performance appraisals can include
clarification of roles and responsibilities, constructive feedback to team members, discovery of unknown or
unresolved issues, development of individual training plans, and the establishment of specific future goals.
Interpersonal Skills. (Leadership: team with common goal– Influencing: sharing power and relying –
Decision making: command, consultation, consensus, and coin flip (random) - Trust building - Political and
cultural awareness: communicate directive, collaborative, logical, explorer – Coaching: enhancing their
skills to can do) - Management skills, kinds of power (Formal: Legitimate, Reward, Penalty/ Punishment/
coercive: the worst – Expert: the best – Referent: the charisma, admire you and loyal to you).
fP26
Collaborate/Problem Solve (Confronting).
Incorporating multiple viewpoints and insights
from differing perspectives; requires a
cooperative attitude and open dialogue
that typically leads to consensus and
commitment (win / win).
Compromise/Reconcile. Searching for
solutions that bring some degree of
satisfaction to all parties in order to
temporarily or partially resolve the conflict
(lose / lose).
Smooth/Accommodate. Emphasizing areas
of agreement rather than areas of
difference; conceding one’s position to the
needs of others to maintain harmony and
relationships.
Withdraw/Avoid. Retreating from an actual or
potential conflict situation; postponing the
issue to be better prepared or to be resolved
by others.
Force/Direct. Pushing one’s viewpoint at the
expense of others; offering only win-lose
solutions, usually enforced through a power
position to resolve an emergency.
Conflict Management. Handling, controlling, and
guiding a conflictual situation to achieve a
resolution – by team themselves then their boss
specially in the social responsibility/ law/ ethics,
(Major reasons of conflicts in order: schedules,
priorities, resources – then - Technical opinions,
Cost, Personalities).
Decision Making Model: Problem Definition- Problem Solution
Generation- Ideas to Action- Solution Action Planning- Solution
Evaluation Planning- Evaluation of the Outcome and Process.
Factors that affect the decision style: time constraints, trust,
quality, and acceptance.
- Internal (within the project) and external (customer,
vendors, other projects, organizations, the public); -Vertical
(up and down the organization) and horizontal (with peers).
- Paralingual communication is the tone and pitch of your voice (55% of the
message transmitted comes through body language, 38% of the message
transmitted comes through vocal inflection (paralingual), Only 7% of your
message consists of the actual words that you use).
- Written and oral/ verbal (voice inflections – 1st warning informal) and
nonverbal (body language).
- Formal (reports, minutes, briefings, 2nd warning) and informal (emails, memos,
ad-hoc discussions); - Official (newsletters, annual report) and unofficial (off
the record communications).
Project
Communications
Management includes
the processes that are
required to ensure
timely and
appropriate planning,
collection, creation,
distribution, storage,
retrieval,
management,
control, monitoring,
and the ultimate
disposition of project
information.
90% of a project
manager’s job is
communication.
10- Communication Management
P27
10.1. Plan Communications Management
Communications Management
Plan. A component of the
project, program, or portfolio
management plan that
describes how information will
be effectively administered.
Communication Requirements Analysis. An analytical technique to
determine the needs of the project stakeholders. The number of potential
communication channels n*(n – 1)/2, n: no. of stakeholders.
Communication Technology. Specific tools, systems, computer programs,
etc., used to transfer information. Factors that can affect the choice
include: (Urgency of the need for information. Availability of technology.
Ease of Use. Project environment. Sensitivity & confidentiality of the info.).
Communication Methods. A systematic procedure, technique, classified :
(interactive is the most efficient - meetings, phone calls, instant
messaging & video conferencing), (push to specific recipients - letters,
memos, reports, emails, faxes, voice mails, blogs, press releases), (pull for
very large volumes of information, or for very large audiences- intranet
sites, e-learning, lessons learned databases, knowledge repositories).
Meetings. Most project meetings are more formal with a prearranged
time, place, and agenda.
Communication Models.
Schematic to represent (sender
encode, transmit Message:
medium-noise, signal
(acknowledge), receiver
decode, then feedback/
response vice versa). the sender
is responsible for the transmission
of the message clear and
complete. The receiver ensuring
that the information is received.
P28&
29
10.2. Manage Communications
Manage Communications. The process of creating, collecting, distributing, and the ultimate disposition of
project information. (Presentation techniques. Awareness of the impact of body language and design of visual
aids. Facilitation techniques. Building consensus and overcoming obstacles. Listening techniques. Listening
actively (acknowledging, clarifying, and confirming understanding, and removal of barriers/blockers).
Information Management Systems. Facilities, processes, and procedures used to collect, store, and distribute
information between producers and consumers of information in physical or electronic format.
Project Communications.
Project communications may
include but are not limited to:
performance reports,
deliverables status, schedule
progress, and cost incurred.
10.3. Control Communications
Issue Log. A project document used to
document and monitor elements under
discussion or in dispute –unresolved may
cause conflict/ delay- between project
stakeholders (who is responsible for
resolving specific issues by a target date).
P30
13.1. Identify Stakeholders - Initiating
Analytical Techniques. The current engagement level of all stakeholders
needs to be compared to the planned engagement levels required for
successful project completion. The engagement level can be classified :
- Unaware. Unaware of project and potential impacts.
- Resistant. Aware of project and potential impacts and resistant to change.
- Neutral. Aware of project yet neither supportive nor resistant.
- Supportive. Aware of project and potential impacts and
supportive to change.
- Leading. Aware of project and potential impacts and
actively engaged in ensuring the project is a success.
* The current engagement can be documented using
Stakeholders Engagement Assessment Matrix. The project
team needs to identify the desired engagement level
based on available information.
Stakeholder Management Plan.
The stakeholder management
plan is a subsidiary plan of the
project management plan that
defines the processes,
procedures, tools, and techniques
/ communication requirements to
effectively engage stakeholders
in project decisions and
execution based on the analysis
of their needs, interests, and
potential impact. should be
aware of the sensitive nature and
take appropriate precautions
(may affect schedule).
13.2. Plan Stakeholder Management
P31
&32
13.3. Manage Stakeholder Engagement
Manage Stakeholder Engagement.
communicating and working with
stakeholders to meet their needs/
expectations (expected result may
happen), satisfaction, address issues
as they occur, and foster appropriate
stakeholder engagement throughout
the project life cycle.
Change Log. A comprehensive list of
changes made. This typically includes
dates of the change and impacts in
terms of time, cost, and risk.
13.4. Control Stakeholder Engagement
Control Stakeholder
Engagement. The process of
monitoring overall project
stakeholder relationships and
adjusting strategies and plans
for engaging stakeholders.
Egotistical refers to being self-centered. Enlightened self interest refers to
persons who act to further the interests of others (to which they belong),
ultimately serving their own self-interest. Ethnocentric means tending to look
at the world primarily from the perspective of one's own culture.
P33
12.1. Plan Procurement Management
Procurement Management Plan. project or program management plan that
describes how acquiring goods and services from outside (potential sellers).
Procurement Statement of Work. Describes the procurement item in complete detail
to allow prospective sellers to determine if they are capable of providing.
Procurement Documents. The documents in bid and proposal include: buyer’s
Invitation for Bid (IFB), Invitation for Negotiations, Request for Information (RFI),
Request for Quotation (RFQ), Request for Proposal (RFP), and seller’s responses.
Source Selection Criteria. required attributes of seller, objective or subjective (Risk,
Capability/ Capacity, Warranty, Past performance,..) may use screening or weighting
systems- (sole source the only provider available, single source a preferred vendor).
Make-or-Buy Decisions. Strategic decisions made regarding the external purchase or
internal manufacture of a product (depends on the duration of use).
Organizational Process
Assets. Formal
procurement policies,
procedures, and guidelines
(centralized or de-
centralized). All legal
contractual relationships
(as shown in the next
slide).
Make-or-Buy Analysis.
The process of gathering
and organizing data about
product requirements and
analyzing them against
available alternatives
including the purchase or
internal manufacture of the
product (consider risk).
Market Research. The
process of gathering
information at conferences,
online reviews, and a
variety of sources to
identify market capabilities.
This process iteration
takes place after
collect req., define
scope and before
create WBS.
fP33
Legal contractual relationships (mutually binding agreement) generally fall into:
Fixed-Price Contracts. (1) An agreement that sets the fee that will be paid for a defined scope of work regardless of
the cost or effort to deliver it (Bid: IFB, much risk for seller).
Firm-Fixed-Price Contract (FFP). A type of fixed price contract where the buyer pays the seller a set amount (as
defined by the contract), regardless of the seller’s costs.
Fixed Price Incentive Fee Contract (FPIF). A type of contract where the buyer pays the seller a set amount (as
defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria.
(Point of Total Assumption: used in the event of cost overrun, is the point at which the seller assumes all additional
costs for delivering a product of the project - PTA = ((Ceiling Price -Total Price) / Buyer's Share Ratio)) + Target Cost);
the ‘total cost’, ‘estimated cost’, or ‘target cost’ (are synonymous), represents the contracted cost without the profit.
Fixed Price with Economic Price Adjustment Contracts (FP-EPA). a special provision allowing for predefined final
adjustments to the contract price due to changed conditions, such as inflation, or cost change for specific commodities.
Cost-Reimbursable Contract. (2) A type of contract involving payment to the seller for the seller’s actual costs, plus a
fee typically representing seller’s profit, this require buyer to audit invoices carefully (Proposal: RFP, risk for buyer).
Cost Plus Fixed Fee Contract (CPFF). A type of cost-reimbursable contract where the buyer reimburses the seller for
the seller’s allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).
Cost Plus Incentive Fee Contract (CPIF). the buyer reimburses the seller for the seller’s allowable costs (are defined
by the contract), and the seller earns its profit if it meets defined performance criteria with a sharing ratio – buyer/seller.
Cost Plus Award Fee Contracts (CPAF). A category of contract that involves payments to the seller for all legitimate
actual costs incurred for completed work, plus an award fee (+ve only) representing seller profit with ceiling/ max.
Time and Material Contract (T&M). (3) a hybrid contractual arrangement containing aspects of both cost-reimbursable
and fixed-price contracts. resemble CR type in that they have no definitive end, because the full value of the
arrangement is not defined. Thus, can grow in contract value as if they were CR type. Conversely, can also resemble
FP type. For example, the unit rates are preset by the buyer and seller (Quotation: RFQ, risk for buyer).
fP33
Buyer Vs Seller
Employer Contractor
Contractor Subcontractor
Purchaser Supplier
Pays money Offers service
fP33
The project manager knows the
project risks. PM needs to make
sure provisions are included in the
contract to address these risks.
Contract priority of documents:
-Agreement -Particular Conditions
-General Conditions -Special Specs.
-General Specs. -Drawings -B.O.Q.
Words are binding more than no.s
Force majeure = EOT, Extension of Time
P34
12.2. Conduct Procurements
Seller Proposals. Formal responses from sellers to a request for proposal or other procurement document
specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will
do for the requesting organization that, if accepted, would bind the seller to perform the resulting
agreement. Buyer. The acquirer of products, services, or results for an organization. Seller. A provider or
supplier of products, services, or results to an organization. Contract supersede prior agreements.
Bidder Conference. The meetings with prospective sellers prior to the preparation of a bid or proposal to
ensure all prospective vendors have a clear and common understanding of the procurement. Also
known as contractor conferences, vendor conferences, or pre-bid conferences.
Proposal Evaluation Techniques. The process of reviewing proposals provided by suppliers to support
contract award decisions (as per selection criteria: shortlisting, screening system,…).
Selected Sellers. The sellers
selected to provide a
contracted set.
Agreements. the initial
intentions of a project after
(LOI: letter of intent) if used.
This can take the form of a
contract, memorandum of
understanding (MOU),
letters of agreement, verbal
agreements, a purchase
order, email, etc. (include
terms and conditions).
fP34
Independent Estimates. A process of using a third party to obtain and analyze information to support
prediction of cost, schedule, or other items.
Advertising. The process of calling public attention to a project or effort.
Analytical Techniques. By examining past performance information, teams may identify areas that may have
more risk and that need to be monitored closely to ensure success of the project.
Procurement Negotiations. clarify the structure, requirements, and other terms of the purchases so that
mutual agreement can be reached prior to signing the contract. Final contract language reflects all
agreements reached (in order: performance, scope, schedule, price). You may refer to any of these tactics:
• Fait Accompli - Standard contract terms that are nonnegotiable. (In reality, anything in the contract is
negotiable although your adversary will never admit it).
• Deadline - Make it clear that this is the time by which they must do. As the deadline approaches, increase
the emotional pressure, talking more about what will happen if the deadline is missed.
• Good guy /bad guy - One person acts in an aggressive and pushy way, making unreasonable demands
and requiring compliance. The other person acts in kind and friendly, asking nicely - and getting compliance.
• Missing man - The person who can actually make the decision is missing from the negotiation. The
negotiator can then negotiate for a lower price or more favorable terms which they claim they can agree to.
• Limited authority - Refusing to give in on items because you have not been given authority to do what is
being requested.
• Fair and reasonable - You can engage the other person by asking them 'what is fair'. You can also bring
something into the negotiation that is, by definition, fair. You can also reject criteria from the adversary on the
grounds that it is not fair.
• Unreasonable - Stating that the other side is making unreasonable demands of you in the negotiation.
• Delay - Stretching out the negotiation, especially at critical moments.
• Attack - A direct attack on your integrity, trustworthiness, competence, or other such bullying bombast
designed to force compliance out of you.
P35
12.3. Control Procurements
Contract Change Control System. The system used to collect, track, adjudicate, and communicate changes
(CCB might review and approve, but only the procurement manager has the authority to sign a change).
Procurement Performance Reviews. A structured review of the seller’s progress to deliver project scope and
quality, within cost and on schedule, as compared to the contract.
Inspections and Audits. A process to observe performance of contracted work or a promised product against
agreed-upon requirements, any breach happens (Privity: no contractual relationship between client and
subcontractors, so he has to deal with him through the main contractor).
Performance Reporting. See work performance reports (Integration – Control).
Payment Systems. The system used to provide and track supplier’s invoices and payments.
Claims Administration. The process of processing, adjudicating, and communicating contract claims (contested
or potential constructive changes: requested change can’t reach agreement between buyer and seller).
Records Management System. A specific set of processes, related control functions, and tools that are
consolidated and combined to record and retain information about the project.
Organizational Process
Assets Updates.
(Correspondence,
Payment schedules and
requests, Seller
performance
evaluation
documentation).
P36
12.4. Close Procurements
Close Procurements. The process of completing each project procurement (completion or termination),
also involves administrative activities such as finalizing open claims, updating records to reflect final results,
and archiving such information for future use.
Procurement Audits. The review of contracts and contracting processes for completeness, accuracy, and
effectiveness (audits are used to improve processes and learn from success).
Procurement Negotiations. . the final equitable settlement of all outstanding issues, claims, and disputes by
negotiation is preferred. Otherwise some form of alternative dispute resolution (ADR) including mediation
or arbitration may be explored. When all else fails, litigation in courts is the least desirable option.
Records Management System. by the project manager to manage, archive contract and procurement
documentation , correspondence and records.
Closed Procurements. Project contracts or other procurement agreements that have been formally
acknowledged by the proper authorizing agent as being finalized and signed off.
Organizational Process Assets Updates. (Procurement file, Deliverable acceptance, Lessons learned
documentation).
Project Risk Management. Project Risk Management includes the
processes of conducting risk management planning, identification,
analysis, response planning, and controlling risk on a project.
Risk Appetite. Attitude. The degree of uncertainty an entity is willing to
take on, in anticipation of a reward (risk seeker vs risk averse).
Threshold. A cost, time, quality, technical, or resource value used as a
parameter, and which may be included in product specifications.
Crossing the threshold should trigger some action, such as generating
an exception report.
Risk Threshold. Measure of the level of uncertainty or the level of impact
at which a stakeholder may have a specific interest. Below that risk
threshold, the organization will accept the risk. Above that risk threshold,
the organization will not tolerate the risk.
Risk Tolerance. The degree, amount, or volume of risk that an
organization or individual will withstand.
Risk. An uncertain event or
condition that, if it occurs,
has a positive or negative
effect on one or more
project objectives
(Business risk: gain or loss,
Pure risk: loss only “i.e., fire,
theft, etc.”).
Threat. A risk that would
have a negative effect on
one or more project
objectives.
Opportunity. A risk that
would have a positive
effect on one or more
project objectives.
11- Risk Management
P37
11.1. Plan Risk Management Risk Management Plan. A
component of the project,
program, or portfolio
management plan that describes
how risk management activities
will be structured and performed.
Risk Breakdown Structure (RBS). A
hierarchical representation of risks
according to their risk categories.
Risk Category. A group of
potential causes of risk.
Probability and Impact.
A risk rating
matrix is
developed
by a
department
or a
company
should be
standardize
d between
projects.
P38
11.2. Identify Risks
Documentation Reviews. The process of gathering a corpus of information and
reviewing it to determine accuracy and completeness.
Information Gathering Techniques. Repeatable processes used to assemble and
organize data across a spectrum of sources (Brainstorming, Delphi Technique,
Interviewing, Root Cause Analysis).
Checklist Analysis. checklists are developed based on historical information,
knowledge accumulated from previous projects, and other sources of information.
Assumptions Analysis. A technique that explores the accuracy of assumptions and
identifies risks to the project from inaccuracy, inconsistency, or incompleteness of
assumptions.
Diagramming Techniques. Approaches to presenting information with logical
linkages that aid in understanding (Cause-and-effect diagrams, System or process
flow charts, Influence diagrams: graphical representations of situations showing causal
influences, time ordering of events, and other relationships among variables).
SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats of an
organization, project, or option.
Risk Register. A document
in which the results of risk
analysis and risk response
planning are recorded
(POTENTIAL responses).
P39
11.3. Perform Qualitative Risk Analysis
Risk Probability and Impact Assessment. Risks with low ratings of probability and impact
will be included within the risk register as part of the watch list for future monitoring.
Probability and Impact Matrix. A grid for mapping the probability of each risk occurrence and its impact
on project objectives if occurs. That leads to rating (risk score) the risks as low, moderate, or high priority.
Perform Qualitative Risk
Analysis. The process of
prioritizing (rank) risks for
further analysis or action by
assessing and combining their
probability of occurrence and
impact.
Risk Data Quality Assessment. Technique to evaluate the degree
to which the data about risks is useful for risk management. It
involves examining accuracy, quality, reliability, and integrity.
Risk Categorization. Organization by (e.g., using the RBS), the
area affected (e.g., WBS), or other useful category, to determine
the areas most exposed to the effects of uncertainty.
Risk Urgency Assessment. Review and determination of the
timing of actions that may need to occur to give a final risk
severity rating.
watch
list
P40
Perform Quantitative Risk
Analysis. The process of
numerically analyzing the
effect of identified risks on
overall project objectives.
Modeling and simulation. A project simulation uses a model that translates
the specified detailed uncertainties of the project into their potential impact
on project objectives, typically performed using: Monte Carlo Simulation. A
process which generates hundreds or thousands of probable performance
outcomes based on probability distributions for cost and schedule on
individual tasks. The outcomes are then used to generate a probability
distribution for the project as a whole, demonstrates cumulative distribution,
otherwise known as an 'S' curve.
Data Gathering and Representation Techniques. used to collect, organize, and present information and data
(Interviewing, Probability Distribution: continuous probability distributions represent the uncertainty like -beta or
triangle distribution, uniform distribution when most likely is not obvious in early stage, discrete distribution for
possibility in modeling such as in tree analysis).
Quantitative Risk Analysis and Modeling Techniques. Commonly used both event-oriented and project-oriented
analysis approaches (Sensitivity analysis, EMV analysis, Modeling and Simulation).
11.4. Perform Quantitative Risk Analysis
fP40
Expected Monetary Value
(EMV) Analysis. A statistical
technique that calculates the
average outcome when the
future includes scenarios that
may or may not happen. A
common use of this technique
is within decision tree analysis.
Sensitivity Analysis. A quantitative risk
analysis and modeling technique used
to help determine which risks have the
most potential impact. The typical
display of results is in form of a tornado
diagram.
P41
11.5. Plan Risk Responses
Trigger Condition. (Detectability) An event or situation that indicates that a risk is about
to occur, symptoms, and warning signs of a risk occurrence.
Residual Risk. A risk that remains after risk responses have been implemented (accept).
-Secondary Risks. arise as a direct result of implementing a risk response to be analyzed.
Strategies for negative risks or threats (4). Avoid. eliminate the threat or protect from its impact. Mitigate.
reduce the probability of occurrence or impact. Transfer/ deflect/ allocate. shifts the impact of a threat
to a third party, together with ownership (insurance). Accept. not take any action unless the risk occurs.
Strategies for positive risks or opportunity (4). Exploit. for risks with positive impacts where the organization
wishes to ensure that the opportunity is realized. Enhance. to increase the probability and/or the positive
impacts of an opportunity. Share. involves allocating some or all of the ownership of the opportunity to a
third party who is best able to capture the opportunity for the benefit of the project (joint ventures).
Accept. is being willing to take advantage of the opportunity if it arises, but not actively pursuing it.
Contingent Response Strategies. Responses provided may be used in the event that a specific trigger
occurs. Fallback Plan. (Plan B) Fallback plans include an alternative set of actions and tasks available in
the event that the primary plan needs to be abandoned because of issues, risks, or other causes.
Plan Risk Responses. The
process of developing
options and actions to
enhance opportunities and
to reduce threats to project
objectives (Risk owner).
Response plan will cause final
reserves include values of
actively accepted risks. Start planning
processes
Iterations after
risk planning
fP41
P42
11.6. Control Risks
Risk Reassessment. the identification of new risks, reassessment of current risks (unexpected impact/ additional
responses), closing of outdated and not repetitive risks, and look at the risks impact on the overall project.
Workaround. A response to a threat that has occurred, for which a prior response had not been planned or was
not effective, may be passive acceptance (trick: risk discovered and not occurred qualify first/ analyze/ assess).
Risk Audits. Examination and documentation of the effectiveness of risk responses in dealing with identified risks
and their root causes, as well as the effectiveness of the risk management process.
Variance and trend analysis. variance analysis to compare the planned results to the actual results, trends in the
project’s execution should be reviewed using performance information.
Technical performance measurement.
Reserve Analysis. An analytical technique to determine the essential features and relationships of components
in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or
funds for a project.
Meetings. Risk management should be an agenda item at status meetings to exchange project information.
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.
It’s a good option to revisit or
reevaluate any area of lack /
variance to be revised for
minimizing the future impacts.
No OPA
input in
11.5,11.6
P43
4.1. Develop Charter - Initiating
Project Management Plan. The document that describes
how the project will be executed monitored, and
controlled. The project management plan’s content varies
depending upon the application area and complexity of
the project. It is developed through a series of integrated
processes extending through project closure. This process
results in a project management plan that is progressively
elaborated by updates, and controlled and approved
through the Perform Integrated Change Control process
(no need to submit change request during
planning), contains all baselines (performance
measurement baselines) and management plans.
4.2. Develop Project Management Plan
Develop Project Management
Plan. The process of defining,
preparing, and coordinating all
subsidiary plans and integrating
them into a comprehensive
project management plan.
PM is integrator, focus the interfaces,
and not to delegate this role.
Most project documents are created by
the project manager for using during the
project, and do not require outside
approval for changes.
Kickoff
Meeting
P44
4.3. Direct and Manage Project Work
Approved Change Request. A change request that has been processed through the integrated change
control process and approved.
Project Management Information System. An information system consisting of the tools and techniques
used to gather, integrate, and disseminate the outputs of project management processes. It is used to
support all aspects of the project from initiating through closing, and can include both manual and
automated systems. Automated gathering and reporting on key performance indicators (KPI) can be
part of this system.
Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required
to be produced to complete a process, phase, or project.
Work Performance Data. The raw observations and measurements identified during activities being
performed to carry out the project work.
Change requests. (Corrective Action, Preventive Action, Defect Repair, Scope change).
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.
P45
4.4. Monitor and Control Project Work
Analytical Techniques. 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. Examples of analytical techniques used in projects are:
- 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.
Work Performance Reports. The physical or electronic representation of work performance information
compiled in project documents,(and includes the following types of reporting: -Status reports: where the
project now stands -Progress Reports: what is been accomplished to date -Variance report: compares
actuals to performance baselines -Trend report: measures performance over time to determine if
performance is improving, deteriorating, or staying about the same -Earned value reports: reports on
schedule, budget, and scope to assess project progress -Forecasts: predictions of future performance of
schedule, budget, scope, risks, quality, and other)
Manage Commum. & HR.
Control Procurement & Risk.
P46
4.5. Perform Integrated Change Control
Notes:
PM role is to influence the factors that affect the change, by determining the sources and fixing the root causes.
Sponsor should help in control and preventing unnecessary changes (e.g. scope change not within the charter).
Approved Change Request. A
change request that has been
processed through the
integrated change control
process and approved.
Change Log. A comprehensive
list of changes made during the
project. This typically includes
dates of the change and
impacts on project constraints.
fP46
Change Control Board (CCB). A formally chartered group responsible for
reviewing, evaluating, approving, delaying, or rejecting Requested Change/s to
the project, and for recording and communicating such decisions. Customer or
sponsor approval may be required after CCB approval, unless they are part of
the CCB. Some of the configuration management activities included in the
Perform Integrated Change Control process are as follows: Configuration
identification, status accounting, verification and audit.
PM to: Understand - Study the
cause & effect/Impact -
Proactively propose action - CCB -
Sponsor
Change Control Tools. Manual or automated tools to assist with change and/or
configuration management. At a minimum, the tools should support the activities of the
CCB.
Configuration Management System. A subsystem of the overall project management
system. It is a collection of formal documented procedures used to apply technical and
administrative direction and surveillance to:
identify and document the functional and physical
characteristics of a product, result, service, or
component; control any changes to such
characteristics; record and report each change
and its implementation status; and support
the audit of the products, results, or components to
verify conformance to requirements.
It includes the documentation, tracking systems, and
defined approval levels for authorizing and controlling changes.
P47
4.6. Close Project or Phase
Close Project or Phase. The process of finalizing all activities across all of the
Project Management Process Groups to formally complete a project or phase.
Final product, service or result transition. This output refers to the transition of the
final product, service, or result that the project was authorized to produce (or in
the case of phase closure, the intermediate product, service, or result of that
phase).
Organizational Process Assets Updates. Include deliverables such as: Project or
phase closure documents/ final report of success, Historical information, lessons
learned such as improved process, Project files/ archives.
All procurements
must be closed
before the project as
a whole is closed.
E1
14- PMI Code of Ethics and
Professional Conduct
RESPONSIBILITY
2.1 Description of Responsibility: Responsibility is our duty to take ownership for the decisions we make or
fail to make, the actions we take or fail to take, and the consequences that result.
2.2 Responsibility: Aspirational Standards / As practitioners in the global project management community:
2.2.1 We make decisions and take actions based on the best interests of society, public safety, and the
environment. 2.2.5 We protect proprietary or confidential information that has been entrusted to us.
2.3 Responsibility: Mandatory Standards / Regulations and Legal Requirements
2.3.2 We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by
the conduct. Reporting is not easy and we recognize that it may have negative consequences. Comment:
These provisions have several implications. Specifically, we do not engage in any illegal behavior, including but
not limited to: theft, fraud, corruption, embezzlement, or bribery. Further, we do not take or abuse the property of
others, including intellectual property, nor do we engage in slander or libel. As practitioners and representatives
of our profession, we do not condone or assist others in engaging in illegal behavior (Only government officials
can collect routine government fees).
Ethics Complaints: 2.3.3 We bring violations of this Code to the attention of the appropriate body for
resolution. 2.3.4 We only file ethics complaints when they are substantiated by facts. Comment: These
provisions have several implications. We cooperate with PMI concerning ethics violations and the collection of
related information whether we are a complainant or a respondent. 2.3.5 We pursue disciplinary action against
an individual who retaliates against a person raising ethics concerns.
RESPONSIBILITY
RESPECT
FAIRNESS HONESTY
Ethical Decision-
Making
E2
FAIRNESS
4.1 Description of Fairness: Fairness is our duty to make decisions and act impartially and objectively. Our
conduct must be free from competing self-interest, prejudice, and favoritism.
4.2 Fairness: Aspirational Standards/ As practitioners in the global project management community:
4.2.1 We demonstrate transparency in our decision-making process. 4.2.2 We constantly reexamine our
impartiality and objectivity, taking corrective action as appropriate. Comment: Research with practitioners
indicated that the subject of conflicts of interest is one of the most challenging faced by our profession. One of
the biggest problems practitioners report is not recognizing when we have conflicted loyalties and recognizing.
We as practitioners must proactively search for potential conflicts and insisting that they be resolved (in the
legitimate interests of the customer).
4.2.3 We provide equal access to information to those who are authorized to have that information.
4.2.4 We make opportunities equally available to qualified candidates. Comment: An implication of these
provisions is, in contracting arrangement, we provide equal access to information during the bidding process.
4.3 Fairness: Mandatory Standards/ Conflict of Interest Situations
4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.
4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in the
decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full
disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the
consent of the stakeholders to proceed.
Favoritism and Discrimination: 4.3.3 We do not hire or fire, reward or punish, or award or deny contracts
based on personal considerations, including but not limited to, favoritism, nepotism, or bribery. 4.3.4 We do not
discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or
sexual orientation. 4.3.5 We apply the rules of the organization (employer, Project Management Institute, or
other group) without favoritism or prejudice.
E3
HONESTY
5.1 Description of Honesty: Honesty is our duty to understand the truth and act in a truthful manner both in
our communications and in our conduct.
5.2 Honesty: Aspirational Standards/ As practitioners in the global project management community:
5.2.1 We earnestly seek to understand the truth.
5.2.2 We are truthful in our communications and in our conduct.
5.2.3 We provide accurate information in a timely manner. Comment: An implication of these provisions,
includes having the courage to share bad news even when it may be poorly received. Also, when outcomes are
negative, we avoid burying information or shifting blame to others. When outcomes are positive, we avoid taking
credit for the achievements of others. These provisions reinforce our commitment to be both honest and
responsible.
5.2.4 We make commitments and promises, implied or explicit, in good faith.
5.2.5 We strive to create an environment in which others feel safe to tell the truth.
5.3 Honesty: Mandatory Standards/ As practitioners in the global project management community, we require
the following of ourselves and our fellow practitioners:
5.3.1 We do not engage in or condone behavior that is designed to deceive others, including but not limited to,
making misleading or false statements, stating half-truths, providing information out of context or withholding
information that, if known, would render our statements as misleading or incomplete.
5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.
Comment: The aspirational standards exhort us to be truthful. Half-truths and non-disclosures intended to
mislead stakeholders are as unprofessional as affirmatively making misrepresentations. We develop credibility
by providing complete and accurate information.
E4
RESPECT
3.1 Description of Respect: Respect is our duty to show a high regard for ourselves,
others, and the resources entrusted to us. Resources entrusted to us may include
people, money, reputation, the safety of others, and natural or environmental resources.
An environment of respect engenders trust, confidence, and performance excellence by
fostering mutual cooperation.
3.2 Respect: Aspirational Standards/ As practitioners in the global project
management community:
3.2.1 We inform ourselves about the norms and customs of others and avoid engaging
in behaviors they might consider disrespectful.
3.2.2 We listen to others’ points of view, seeking to understand them.
3.2.3 We approach directly those persons with whom we have a conflict or
disagreement.
3.2.4 We conduct ourselves in a professional manner, even when it is not reciprocated.
Comment: An implication of these provisions is that we avoid engaging in gossip and
avoid making negative remarks to undermine another person’s reputation. We also have
a duty under this Code to confront others who engage in these types of behaviors.
3.3 Respect: Mandatory Standards/ As practitioners in the global project management
community, we require the following of ourselves and our fellow practitioners:
3.3.1 We negotiate in good faith.
3.3.2 We do not exercise the power of our expertise or position to influence the
decisions or actions of others in order to benefit personally at their expense.
3.3.3 We do not act in an abusive manner toward others.
3.3.4 We respect the property rights of others.
PMI Volunteer. A person
who participates in PMI-
sponsored activities,
whether a member of
the Project
Management Institute
or not.
January 2016 - Exam change (25%)
Role Delineation Study
every 3-5 years
Thank You
Don’t Hesitate to contact….
M.Maged
magedkom@gmail.com
mobile : 00966-580264968

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Pmp Final Review - M Maged

  • 1. PMP Final Review be ready for the exam Prepared by: Engr. Mohamed Maged, PMP Admin of: https://www.facebook.com/Prof.Planner
  • 2. Instructor: Mohamed Maged Senior Project Control Engineer, B.Sc. of Civil engineering – Ain Shams University, with experience in MENA region of (construction, infrastructure, and roads) Mega projects, in professions of Contract administration, Procurement, Tender estimating, Cost control, Planning & Claim analysis. Instructor of Planning & Project Management: - Construction Management Planning and Control (CMPC). - Delay, Claim and Dispute Resolution (DCDR) in PMBOK, FIDIC & SCL protocol. - Project Management Professional (PMP). - Free lectures with cooperation of Egyptian Engineers Association in Saudi: - Product oriented construction management - Top 10 planning fundamentals - Scope creep – cases and preventive actions - Claims and dispute resolution in FIDIC
  • 3. Mohamed Maged (Professional Certificates) PMP Project Management Professional (PMI – USA) SFC Scrum Fundamentals Certified (SCRUM study) Associate of Chartered Institute of Arbitrators (CIArb - London) Fellow of Association of International Arbitration (AIA - Brussels) FIDIC Contracts Consultant: International academy of mediation and arbitration - Egypt. Six Sigma Yellow Belt Professional (6 Sigma Study- PMI)
  • 4. Mohamed Maged (Prof. Planner) Admin of the biggest online community of Arab Planners (10,000+) (Facebook Page: to be prof. planner, related group: Best Advice for Planners – Public group) SlideShare: www.slideshare.net/MohamedMaged8/ Planning fundamentals: http://www.slideshare.net/Mohamed Maged8/50qts-of-planning-fundamentals-ver04 YouTube Channel: https://www.youtube.com/ArabPlanners. Arranged Two Annual Conferences of Planning and Project Management (Anniversary of Facebook Page: Prof.Planner)- American University in Cairo, August 2014 & 2015.
  • 5. A GUIDE TO THE PROJECT MANAGEMENT BODY OF KNOWLEDGE (PMBOK® Guide) – Fifth Edition
  • 6. Syllabus: Program of Study • Project management framework • Project Initiating processes • Scope management • Time management • Cost management • Quality management • HR management • Communication management • Stakeholder management • Procurement management • Risk management • Integration management • Professional conduct • Jan 2016 Exam changes
  • 7. Project. A temporary endeavor undertaken to create a unique product, service, or result (not operation: ongoing and repetitive, can be included in the project if it’s a part of it). Progressive Elaboration. The iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available (rolling wave planning). I1 Temporary has a beginning & an end Unique product, service, or result Progressive Elaboration Business Case. Typically, the business need (Market demand, Organizational need, Customer request, Technological advance, Legal requirement, Social need) and the cost-benefit analysis are contained in the business case to justify the project. Note: Feasibility Study. Usually consists of Technical, Economic, Market/ Environmental, and Legal studies. Statement of Work (SOW). by initiator, sponsor or customer - A narrative description of products, services, or results to be delivered by the project (Business need, Product scope description, Strategic plan).
  • 8. Product Life Cycle. phases of a product, from concept through delivery, growth, maturity, and to retirement (Benefit/Cost =1). Project Life Cycle. The series of phases that a project passes through from its initiation to its closure (Project Boundary). I2 Predictive Life Cycle. project scope, and the time and cost required to deliver that scope, are determined as early as possible. Iterative Life Cycle. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product. Incremental Life Cycle. A project life cycle where the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified. Adaptive Life Cycle. change-driven or agile methods - Scrum, iterative and incremental, but differ in that iterations are very rapid. Predictive Life Cycle
  • 9. Project Management. The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements/ objectives. Constraint. A limiting factor that affects the execution of a project, program, portfolio, or process (time, cost, quality, scope, risk, resources & customer satisfaction). Project Management Process Group. A logical grouping of project management inputs, tools and techniques, and outputs. Initiating Process Group. obtaining authorization to start the project or phase (Two Processes out of 47 Processes ). Planning Process Group. define the course of action required to attain the objectives (most important). Executing Process Group. to complete the work defined in the project management plan (most time and resource usage). Monitoring and Controlling Process Group. to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. Closing Process Group. to finalize all activities to formally close a project or phase. I3
  • 10. I4 Subproject. A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces. Program. Related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually. Portfolio. Projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. Organizational Project Management Maturity. The level of an organization’s ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner - Organizational Project Management Maturity Model (OPM3®). Project Management Office (PMO). An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques (supportive, controlling & directive). Project Governance. The alignment of project objectives with the strategy of the larger organization by the project sponsor and project team, and is required to fit within the larger context of the program or organization sponsoring it, but is separate from organizational governance.
  • 11. Product-oriented processes. These specify and create the project’s product, typically defined by project life cycle and vary by application area. I5 Phase-to-Phase Relationships: - Sequential relationship. -Overlapping relationship.
  • 12. Projectized Organization the project manager has full authority (team is loyal to the project – buy-in, but don’t have home). Functional Organization. clear superior, and staff are grouped by areas of specialization (team has career path, technical support). Matrix Organization. the project manager shares responsibility with the functional managers (strong, balanced & weak: expeditor or coordinator). Composite Organization fundamentally functional organization may create a special project team. PM may interact with : Strategic, middle management, and operational levels. 12
  • 13. Organizational Governance. Organizations use governance to establish strategic direction and performance parameters. Organizational governance criteria can impose constraints on projects - particularly if the project delivers a service which will be subject to strict organizational governance. Organizational Process Assets. Plans, processes, policies, procedures, and knowledge bases that are used by the performing organization (historical information, lessons learned, policies, templates,…). Enterprise Environmental Factors. Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio. Business Value. a concept that is unique to each organization. Business value is defined as the entire value of the business; the total sum of all tangible and intangible elements. Project Management Information System (PMIS). An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems. 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. I7
  • 14. Stakeholder. who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project. Customer. that will pay for the project’s product, service, or result. Customers can be internal or external to the performing organization. Sponsor. who provides resources (funding to specific scope) and support (with stakeholders) for the project, program, or portfolio and is accountable for enabling success. I8 The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. Depending on the organizational structure, a project manager may report to a functional manager. PM may be one of several project managers who report to a program or portfolio manager. 1- Responsibilities and Competencies of the Project Manager. to satisfy task needs, team needs, and individual needs. Competencies: -Knowledge – Performance -Personal, and balancing the project constraints. 2- Interpersonal Skills of a Project Manager. such as: - Leadership, - Team building, - Motivation, - Communication, - Influencing, - Decision making, - Political and cultural awareness, - Negotiation, - Trust building, - Conflict management, and - Coaching.
  • 15. Project Selection I9 Economic Value Added (EVA). concerned with whether the project returns to the company more value than the initiative costs. Payback period. Payback period in capital budgeting refers to the period of time to recoup the funds expended in an investment. Working Capital. current assets minus liabilities for an organization or amount of money the company has available to invest. Benefit cost ratio (BCR). the amount of money a project is going to make versus cost to build it. Generally, if benefit is higher than 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. People calculate this number to see if it’s worth doing a project (PV = FV / (1+r)^n). Discount Rate. The interest rate used to calculate present value of expected yearly benefits and costs. 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 usually expressed as a percentage of the funding that has been allocated to it. Depreciation. The rate at which project loses value over time. the product loses value as time goes on (Straight line: The same amount of depreciation is each year, Accelerated: Double Declining Balance, Sum of the Years Digits) . Lifecycle costing. it’s really useful to figure out how much you expect a project to cost - not just to develop, to support the product once it’s in place and being used by customer. Opportunity cost. When an organization has to choose between projects, it’s always giving up the money would have made on the next best one it doesn’t do (not selected). Sunk cost. is a cost that has already been incurred and cannot be recovered. Sunk costs should not affect the rational decision-maker's best choice, the prospective cost is an avoidable future cost and is properly included in any decision-making processes. Law of Diminishing Returns. After a certain point, adding more input/ resource/ money will not produce a proportional increase in productivity/ return. Trade-offs by two categories: 1. Benefit measurement methods (Comparative approach) - Murder board (a panel of people who try to shoot down a new project idea). - Peer review . - Scoring models . - Economic models (described aside). 2. Constrained optimization methods (Mathematical approach) Linear programming . Integer programming . Dynamic programming . Multi-objective programming.
  • 16. 16 Project Management Knowledge Area. An identified area of project management defined by its knowledge requirements and described in terms of its component processes, practices, inputs, outputs, tools, and techniques.
  • 17. P1 4.1. Develop Charter - Integration Initiating Process Group Agreements. when a project is being performed for an external customer. Enterprise environmental factors. PMIS (the work authorization system). Expert Judgement. Such expertise is provided by any group or individual with specialized knowledge or training. Facilitation techniques. Building consensus and overcoming obstacles. Brainstorming, conflict resolution, problem solving, and meeting management are examples of key techniques used by facilitators. Project Charter. A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority (milestones is helpful in management, may use phase exits/ stage gates/ decision gates/ kill points as phase end reviews to determine if the project should continue and correct errors). Not having a project charter is unethical, it wastes company time, human resources, and money.
  • 18. P2 13.1. Identify Stakeholders Procurement Documents. Relevant parties, such as the parties in the contracts, suppliers, should also be considered as part of the project stakeholder list. Stakeholder Analysis. systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project (as early as possible, Stakeholders can be identified throughout the project). There are multiple classification models, such as: - Power/interest grid, grouping the stakeholders based on their level of authority (“power”) and their level or concern (“interest”) regarding the project outcomes; - Power/influence grid, grouping the stakeholders based on their level of authority (“power”) and their active involvement (“influence”) in the project; - Influence/impact grid, grouping based on their active involvement (“influence”) and their ability to effect changes to the project’s planning or execution (“impact”); - Salience model, describing classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention), and legitimacy (their involvement is appropriate). Stakeholder Register. A project document including the identification, assessment (e.g. skill), and classification of project stakeholders (should be shared with others at the discretion of the project manager). Key stakeholders include anyone in a decision-making or management role who is impacted by the project outcome.
  • 19. 5.1. Plan Scope Management P3&4 Scope Management Plan. A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled, and verified. Requirements Management Plan. A component of the project or program management plan that describes how requirements will be analyzed, documented, and managed. 5.2. Collect Requirements Requirements Documentation. A description of how individual requirements meet the business need for the project. Requirements Traceability Matrix. A grid that links product requirements from their origin to the deliverables that satisfy them. The project charter is used to provide the project context needed to plan the scope management processes. Requirements: Business requirements (organization) , Stakeholder requirements, Solution requirements (functional, nonfunctional as safety), Transition requirements (training), Project requirements, Quality requirements.
  • 20. 20 Interviews. talking directly to stakeholders (confidential). Focus Groups. An elicitation technique that brings together prequalified stakeholders and subject matter experts to learn about their expectations. Facilitated Workshops. focused sessions that bring key cross-functional stakeholders together (JAD: joint application development, QFD: quality function deployment, VOC: voice of customer & User stories). Group Creativity Techniques. ideas within a group of stakeholders. Brainstorming. by using a group of team members or experts. Nominal Group Technique. enhances brainstorming with a voting process used to rank the most useful ideas. Idea/Mind Mapping. to consolidate ideas created through individual brainstorming sessions into a single map (tree). Affinity Diagram. large numbers of ideas to be classified. Multi-Criteria Decision Analysis. a systematic analytical approach for establishing criteria. Group Decision-Making Techniques. Delphi Technique. consensus of experts anonymously unbiased (secretly). A facilitator uses a questionnaire, then recirculated. Consensus (unanimity/harmony) may be reached in a few rounds. Unanimity. Agreement by everyone in the group. Majority. Support from more than 50 percent. Plurality. Decisions made by the largest block. Dictatorship. one individual makes the decision. Questionnaires and Surveys. Sets of questions to quickly accumulate information from a large no. of respondents. Observations. a direct way of viewing (job shadowing). Prototypes. working model before building (storyboarding, mockup). Benchmarking. the comparison as basis for measuring performance. Context Diagrams. A visual depiction (scope model) of the product. Document Analysis. An elicitation technique that analyzes existing documentation.
  • 21. 5.3. Define Scope P5 Define Scope. The process of developing a detailed description of the product and project scope (by project team). The key benefit of this process is by balancing the requirement with the benefit of organization. It also provides a common understanding of the project scope among project stakeholders. Product Analysis. For projects that have a product as a deliverable, it is a tool to define scope that generally means asking questions about a product and forming answers to describe the use, characteristics, and other the relevant aspects of what is going to be manufactured. Value Engineering. An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively. Alternatives Generation. A technique used to develop as many potential options as possible in order to identify different approaches to execute and perform the work of the project.
  • 22. 5.4. Create WBS P6 Create WBS. subdividing project deliverables and project work (including management work) into smaller, more manageable components, can be used as internal or external communications tool. Decomposition. A technique used for dividing and subdividing project scope and project deliverables into smaller, more manageable parts. Scope Baseline. The approved version of a scope statement (1), work breakdown structure (WBS (2): A hierarchical decomposition with leveled numbering system/ Code of Accounts; Work Package. the lowest level of the WBS or deliverables for which cost, duration can be estimated and managed -4/40, 8/80, up to 300 hrs based on project size- contains total work ‘100% rule’), and its associated WBS dictionary (3) (responsibility), that baseline can be changed only through formal change control procedures.
  • 23. P7&8 Verified deliverable. Is output of internal quality control process. Work Performance Data. execution observations and measurements. Inspection. Examining, audit policy or measuring (by customer/ sponsor). Accepted Deliverables. completed project deliverables validated by the project customer or sponsors. Change Request. A formal proposal (corrective action, preventive action, defect repair, scope change). Work Performance Information. Data analyzed (compared to baseline). Variance Analysis. determining the cause and degree of difference between the baseline and actual performance. 5.5. Validate Scope 5.6. Control Scope Gold plating Sometimes people think of a really great improvement to the product (giving extra) and go ahead and make it without even checking the impact (unsuccessful project). Scope Creep. The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources.
  • 24. P9&10 Analytical Techniques. evaluate, analyze, or forecast potential outcomes based on possible variations (any analysis, grouping, forecast, etc.). Rolling Wave Planning. An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the future is planned at a higher level. 6.1. Plan Schedule Management 6.2. Define Activities Activity List. A documented tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope of work description. Activity Attributes. Activity attributes include activity codes, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions (may vary by application area). (Level of Effort (LOE). Hammock, An activity that does not produce definitive end products and is measured by the passage of time. Milestone List. A list identifying all milestones and indicates whether is mandatory or optional. (Milestone. Check point: A significant event in a project, program, or portfolio).
  • 25. 6.3. Sequence Activities P11 Project Schedule Network Diagram. A graphical representation of the logical relationships among the project schedule activities (pure logic diagram). Precedence Diagramming Method (PDM). constructing a schedule Activity-on-Node (AON). Dependency Determination. Logical Relationship/ mathematical analysis: Mandatory Dependency. contractually required or inherent in the nature of the work. Hard Logic. Discretionary Dependency. based on knowledge of best practices, Preferred Logic. Soft Logic. External Dependency. A relationship with non-project activities. Successor Activity. that logically comes after Vs Predecessor. Applying Lag. a successor activity waiting Vs Lead (-ve lag).
  • 26. P12& 13 Identified risks are inputs to the estimate (to be done by all team), additional risks may be uncovered as output also. Alternative Analysis. options to execute and perform the work. Published Estimating Data. Several organizations publish production rates and unit costs of resources for different countries. Activity Resource Requirements. Types and quantities of resources required for each activity. Resource Breakdown Structure. A hierarchical by category and type. 6.4. Estimate Activity Resources 6.5. Estimate Activity Durations Bottom-Up Estimating. by aggregating (roll up) the estimates of the lower-level of the (WBS). Analogous Estimating. estimating of an activity or a project using historical data from a similar activity or project (top down estimate- quick & cheap). Parametric Estimating. an algorithm/ mathematical model (e.g. dollars per module) to calculate based on historical data and project parameters (learning curve). Calendar. A calendar identifies working days and shifts that are available, distinguishes time periods or parts of days that are available. Activity Duration Estimate. A quantitative assessment of the likely amount or outcome for the duration of an activity.
  • 27. Three-Point Estimate. A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates (PERT), the mean with 50% probability is: Duration (Triangle distribution) = (Opt. + Most + Pes.) / 3 Duration (Beta distribution) = (Opt. + 4*Most + Pes.) / 6, Standard dev. - σ (uncertainty) = (Pes.-Opt.) / 6, Variance = (Standard deviation)^2……6 sigma (mean +/- 6 σ) Program Evaluation and Review Technique (PERT). A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. Pessimistic Duration. Estimate of the longest activity duration that takes into account all of the known variables that could affect performance. Optimistic Duration. An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance. Most Likely Duration. An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance. Reserve Analysis. An analytical technique to determine the essential features and relationships of components in the project management plan. Reserve. A provision to mitigate cost and/or schedule risk. Contingency. An event or occurrence that could affect the execution of the project. Management constraint should be analyzed first by options otherwise negotiate for change, padding (increase without analysis) is not acceptable, but decreasing can be by re- estimating and eliminating unexpected risks during execution. fP13
  • 28. P14 6.6. Develop Schedule Bar chart is a good tool for showing progress/ status. Schedule Network Analysis. identifying early and late start dates, as well as early and late finish dates, for the uncompleted portions of project schedule. Critical Path Method. estimate the minimum project duration and determine the flexibility on the logical network paths within the schedule model. Critical Chain Method. method that allows the project team to place buffers on any project schedule path to account for limited resources. Resource Optimization Techniques. adjust planned resource use. Resource Leveling. start and finish dates are adjusted based on resource constraints of balancing demand for resources (can increase the critical path). Resource Smoothing. limits (within total float, critical path doesn’t change). Modeling Techniques. (What-If Scenario Analysis, Simulation- Monte Carlo probability=S, etc.). GERT. is a conditional diagramming method allows probabilistic treatment (loops). Schedule Compression. Start by earlier possible critical activities either: Crashing. adding resources (add cost), or Fast Tracking. in parallel for at least a portion of their duration (add risk/ rework). Scheduling Tool. structural relationships, application of a scheduling method. Time Resource need Actual, not leveled Ideal Leveled, realistic
  • 29. 29 Forward Pass. A critical path method technique for calculating the early start and early finish dates. Backward Pass. calculating the late start and late finish dates by working backward from the project end date. Free Float. The amount of time that a schedule activity can be delayed without delaying the early start of any successor. Total Float. The amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint. Schedule Baseline. the approved version of a schedule model. It is accepted and approved by the appropriate stakeholders (may be FMs). Project Schedule. An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources. Schedule Data. The collection of information for describing and controlling the schedule. Data Date. A point in time the status of the project is recorded. Performance Reviews. A technique that is used to measure, compare, and analyze actual performance of work in progress on the project against the baseline. Schedule Forecasts. Estimates or predictions of conditions and events in the project’s future based on information and knowledge available at the time the schedule is calculated (Velocity. A measure of a team’s productivity rate, used capacity planning approach to forecast future project work). Path convergence Path divergence 6.7. Control Schedule
  • 30. P16 &17 In the initiation a rough order of magnitude (ROM / ballpark estimate) −25% to +75%. Later budget then definitive accuracy -5% to +10%. Direct costs. are directly attributable to the object. In construction, the costs of materials, labor, equipment, etc., while Indirect cost or overheads cannot be directly traced to a specific project may be also time-related such as fringe benefits. Fixed costs. Non-recurring almost indirect costs of business expenses such as facilities and setup costs. This is in contrast to Variable costs, which are volume- related (and are paid per quantity produced). Activity Cost Estimates. cost of the schedule activity that includes the cost for all resources required to perform and complete the activity, including all cost types. Basis of Estimates. Supporting documentation outlining the details used such as assumptions, constraints, level of detail, ranges, and confidence levels. Control thresholds. Variance thresholds for monitoring cost/schedule performance, amount of variation to be allowed before some action needs to be taken. 7.1. Plan Cost Management Cost of quality. Cost of confor- mance & of nonconformance. Vendor bid analysis. estimating based on analysis of the responsive bids from qualified vendors. Analytical techniques. include financial techniques can include payback period, return on investment (ROI), (IRR), discounted cash flow, and (NPV). 7.2. Estimate Costs
  • 31. P18 7.3. Determine Budget Cost Aggregation. Summing the lower-level cost estimates for a given cost control account. Planning Package. Control Account. A management control point to earned value. Reserve analysis. Budget reserve analysis can establish both the contingency reserves and the management reserves. Contingency Reserve. Allowance for identified risks that are accepted (known unknown). Management Reserve. for unforeseen work that is within scope (unknown unknown). Historical Relationships. that result in parametric or analogous estimates involve the use of project characteristics (parameters) to develop mathematical models to predict total costs. Funding Limit Reconciliation. comparing the planned expenditure against any limits. Project Funding Requirements. Forecast project costs to be paid that are derived from the cost baseline for total or periodic requirements, including projected expenditures plus anticipated liabilities. Budget accuracy -10% to +25%. Cost Baseline. The approved version of the time-phased project budget, excluding any management reserves.
  • 32. P19 Performance Reviews. Variance analysis, Trend analysis, Earned value performance. Cost Forecasts. Either a calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders. 7.4. Control Cost (Factors) Fixed Formula Method. An earned value method for assigning a specified percentage of budget value for a work package to the start milestone of the work package with the remaining budget value percentage assigned when the work package is complete. Weighted Milestone Method. An earned value method that divides a work package into segments, each ending with an observable milestone with a weighted value of achievement. percentage range of acceptable variances will tend to decrease as more work is accomplished
  • 33. fP19
  • 35. - Prevention over inspection. Quality should be planned, designed, and built into - not inspected into the project’s management or the project’s deliverables (quality is planned-in, not inspected-in), Philip Crosby: zero defect. - Continuous improvement. (Kaizen: Japanese means continuous improvement) The PDCA (plan-do-check-act) cycle is the basis for quality improvement as defined by Shewhart and modified by Deming. In addition, quality improvement initiatives such as Total Quality Management (TQM), Six Sigma, and Lean Six Sigma could improve the quality of the project’s management as well as the quality of the project’s product. Commonly used process improvement models include Malcolm Baldrige, Organizational Project Management Maturity Model (OPM3®), and Capability Maturity Model Integrated (CMMI®). Just-in-Time. Means keeping only the inventory you need on hand when you need it. So, instead of keeping a big inventory of parts sitting around. Some companies have done away with warehouses all together and have production lines take the parts directly off the trucks to do the work. If you’re working in a Just-in-Time shop, quality is really important because there isn’t any extra inventory to deal with mistakes/ rework. Quality. The degree to which a set of inherent characteristics fulfills requirements, (ISO 9000) [10]. (Customer satisfaction, fitness for use & conformance to requirements). Grade. A category or rank used to distinguish items that have the same functional use but different technical characteristics (e.g., “hammer”) but do not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force). 8- Quality Management
  • 36. P20 8.1. Plan Quality Management Quality Management Plan. A component of the project management plan describes how an organization’s quality policies will be implemented and how to meet project’s quality requirements (specs.: conformance within tolerance). Process Improvement Plan. It details the steps for analyzing processes to identify activities that enhance value (process boundaries- process owner, configuration- graphical, metrics & targets). Quality Metrics. A description of a project or product attribute and how to measure it, include: function points, mean time between failure (MTBF), and mean time to repair (MTTR). Quality Checklists. A structured tool used to verify that a set of required steps. Cost-Benefit Analysis. A financial analysis tool to determine the benefits provided by a project against costs (marginal analysis: to determine level of quality). Cost of Quality. The cost of preventing mistakes is generally much less than the cost of correcting mistakes when they are found by inspection or during usage. Conformance Work. Work is done to compensate for imperfections that prevent organizations from completing planned activities correctly as essential first-time work, that are related to prevention and appraisal/ inspection (to avoid failure). Nonconformance Work. Work is done to deal with the consequences of errors and failures (because of failure - internal & external). In efficient quality management systems, the amount of nonconformance work will approach zero.
  • 37. 37 Seven Basic Quality Tools. A standard toolkit for planning, monitoring, and controlling the issues related to quality. Fishbone diagram (1). Cause and Effect Diagram (Ishikawa). A decomposition technique that helps trace an undesirable effect back to its root cause, to simulate thinking & discuss. Flowchart (2). The depiction in a diagram format of the inputs, process actions, and outputs of one or more processes. Pareto Diagram (3). (Joseph Juran- 80/20: Heuristics) A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause. Control Chart (4). A graphic display of process data over time and against control limits. Run Chart. Trend analysis. Control Limits. The area composed of standard deviations on either side of the centerline or mean, any out of control is assignable (special) cause and require investigation. Specification Limits. customer’s requirements, may be greater than or less than the area defined by the control limits. Rule of seven. A process is considered out of control when 7 consecutive plot points are all above or all below the mean. Accuracy. assessment of correctness (conformance to target). Precision: dispersion of the data; standard deviation (6 sigma (σ)= 99.9997%, 3 sigma (σ)=99.73%, 2 sigma (σ)= 95.46%, 1 sigma (σ)= 68.27%). Checksheets (5). A tally sheet that can be used as a checklist when gathering data. Histogram (6). A special form of bar chart used to describe the central tendency (group around mean, median or mode), dispersion, and shape of a statistical distribution. Scatter Diagram (7). A correlation chart (+ve or -ve) that uses a regression line to explain or to predict how the change in an independent variable will change a dependent variable.
  • 38. P21 Benchmarking. Benchmarking is the comparison of actual or planned practices, to identify best practices, generate ideas for improvement, and provide a basis for measuring performance. Design of Experiments. A statistical method for identifying which factors may influence specific variables of a product or process under development or in production. Statistical Sampling. Choosing part of a population of interest for inspection. - Mutual exclusive: can’t happen at the same time like head and tail. - Statistical independence: is the opposite of conditional probability. It states that the probability of one event occurring does not affect the probability of another event occurring. Additional Quality Planning Tools. They include, but are not limited to: brainstorming, force field analysis (These are diagrams of the forces for and against change), nominal group techniques and quality management and control tools. 8.2. Perform Quality Assurance Quality Audits. A quality audit is a structured, independent process to determine if project activities comply with procedures/method statement, policies and processes, (by internal or external auditors). Process Analysis. A process analysis follows the steps outlined in the process improvement plan to identify needed improvements (add-value).
  • 39. 39 Quality Management and Control Tools. They are a type of quality planning tools used to link and sequence the activities identified. Affinity Diagram (1). A group creativity technique that allows large numbers of ideas to be classified into groups for review and analysis. Process Decision Program Charts (2-PDPC). The PDPC is used to understand a goal in relation to the steps for getting to the goal. Tree Diagram (3). A systematic diagram of a decomposition hierarchy used to visualize as parent-to-child relationships a systematic set of rules. Prioritization Matrices (4). A quality management planning tool used to identify key issues and evaluate suitable alternatives to define a set of implementation priorities. Interrelationship Digraphs (5). A quality management planning tool, the interrelationship digraphs provide a process for creative problem- solving in moderately complex scenarios that possess intertwined logical relationships. Network Diagrams (6). Matrix Diagrams (7). A quality management and control tool used to perform data analysis within the organizational structure created in the matrix. The matrix diagram seeks to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix.
  • 40. P22 8.3. Control Quality Perform Quality Control. Control Quality is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Seven basic quality tools. Statistical sampling./ Attribute sampling (the result either conforms or does not conform - pass/ fail basis) and variables sampling (the result is rated on a continuous scale that measures the degree of conformity). Inspection. Also known as reviews, peer reviews, audits, or walkthroughs. Approved Change Requests Review. A review of the change requests to verify that these were implemented as approved. Validated Changes. Any changed or repaired items are inspected and will be either accepted or rejected before notification of the decision is provided. Rejected items may require rework. Verified Deliverables. Deliverables that are result of executing quality control process to determine correctness. The process of (5.5. Validate Scope) to be implemented after this process.
  • 41. P23 9.1. Plan Human Resource Management Human Resource Management Plan. A component of the project management plan that describes how the roles and responsibilities, reporting relationships, required skills, and staff management will be addressed and structured (Roles and responsibilities - Project organization charts - Staffing management plan: source, calendars/ histogram, release plan, training, rewards,…). Organization charts and position descriptions. Most of the formats fall into one of three types hierarchical -OBS (1) Organizational Breakdown Structure , text-oriented(2) (role of each stakeholder is determined by project manager and stakeholder).The matrix format(3). This also ensures that for any one task there is only one person accountable to avoid confusion of responsibility. One example of a RAM (Responsibility Assignment Matrix) is a RACI. RACI uses responsible, accountable, consult, and inform statuses to define the involvement of stakeholders in project activities. Networking. Establishing connections and relationships with other people from the same or other organizations. Organizational Theory. provides information regarding the way in which people, teams, and organizational units behave, applicable theories may recommend exercising a flexible leadership style. Levels of authority should match responsibilities (not competencies).
  • 42. P24 &25 9.2. Acquire Project Team Pre-assignment. When project team members are selected in advance. Negotiation. Project management team should effectively negotiate and influence others who are in a position to provide the required human resources (dedicated full time, or part time, or others). Acquisition. Obtaining human and material resources necessary to perform project activities (from outside sources). Acquisition implies a cost of resources, and is not necessarily financial. Virtual Teams. groups of people who fulfill their roles with little or no time spent meeting face to face. Project staff assignment. Specify which resources are assigned to each activity. Project staff assignments provide documentation, which includes the list of project team members. 9.3. Develop Project Team Team Performance assessments. As a result of conducting an evaluation of the team’s overall performance/ effectiveness, the project management team can identify the specific training, coaching, mentoring, assistance, or changes required to improve the team’s performance.
  • 43. fP25 Interpersonal Skills. Soft skills – are behavioral competencies that include proficiencies such as communication skills, emotional intelligence, conflict resolution, negotiation, influence, team building, Building trust, Active listening, Overcoming resistance to change and group facilitation (Leadership styles) . Training. Training can be formal or informal. Examples of training methods include classroom, online, computer-based, on-the-job training from project team member. Ground Rules. Expectations regarding acceptable behavior by project team members. Colocation. “Tight matrix,” (sometimes called “war room”) an organizational placement strategy where the project team members are physically located close to one another in order to improve communication, working relationships, and productivity. Recognition and rewards. Generally, money is viewed as a tangible aspect of any reward system, but intangible rewards could be equally or even more effective. Personnel assessment tools. Personnel assessment tools give the project manager and the project team insight into areas of strength and weakness (such as attitudinal surveys, specific assessments, structured interviews, ability tests, and focus groups). 'Halo effect'. The halo effect is essentially a cognitive bias, it’s wrong behavior to promote every good one, because you are good at one thing, you will be good at everything we ask you to do. ‘Perquisites (Perks)’ some employees receives special rewards e.g. parking spaces, corner offices, executive dining. ‘Fringe Benefits’ Standard benefits formally given to all employees, such as insurance, education benefits and profit benefits. Team-building activities. As an ongoing process (The Tuckman Model: Forming. Independent. Storming. Norming. Trust each other. Performing. Well-organized unit. Adjourning. The team completes the work and released / moves on from the project).
  • 44. 44 Motivation theories: Maslow’s Hierarchy of Needs says that people have needs, and until the lower ones (Physiological (like food and warmth), Security - safety and job security, Acceptance on the team) are satisfied they won’t even begin to think about the higher ones (Esteem, Self-actualization (fulfilling your full potential, and making a contribution)). Herzberg’s Motivation-Hygiene Theory What Herzberg figured out was that you need things like good working conditions, a satisfying personal life, and good relations with your boss and coworkers - stuff he called “hygiene factors.” They don’t motivate you, but you need them before you can be motivated. Until you have them, you don’t really care about “motivation factors” like achievement, recognition, personal growth, or career advancement. McGregor’s Theory X and Theory Y McGregor tells us that there are two kinds of managers: ones who assume that everyone on the team is selfish and unmotivated, and ones who trust their team to do a good job. He calls the kind of manager who distrusts the team a “Theory X” manager, and the kind who trusts them a “Theory Y” manager, (Theory Z focused on increasing employee loyalty to the company). McClelland’s Achievement Theory says that people need to be motivated. Achievement is when someone performs well and is recognized for it. Power means he or she has a lot of control or influence in the company. And someone feels a strong sense of affiliation from being a part of a working team and having good relationships with coworkers. Expectancy Theory says that you need to give people an expectation of a reward in order to motivate them—but this works only if that award is achievable. If everyone knows the award is either worthless or impossible to achieve, it will actually demotivate them!
  • 45. P26 9.4. Manage Project Team Issue Log. An issue log can be used to document and monitor who is responsible for resolving specific issues by a target date (unresolved issues can be a major source of conflict and project delays). Performance Reports. See work performance reports (Integration – Control). Observation and Conversation. Observation and conversation are used to stay in touch with the work and attitudes of project team members. Project Performance Appraisals. Objectives for conducting performance appraisals can include clarification of roles and responsibilities, constructive feedback to team members, discovery of unknown or unresolved issues, development of individual training plans, and the establishment of specific future goals. Interpersonal Skills. (Leadership: team with common goal– Influencing: sharing power and relying – Decision making: command, consultation, consensus, and coin flip (random) - Trust building - Political and cultural awareness: communicate directive, collaborative, logical, explorer – Coaching: enhancing their skills to can do) - Management skills, kinds of power (Formal: Legitimate, Reward, Penalty/ Punishment/ coercive: the worst – Expert: the best – Referent: the charisma, admire you and loyal to you).
  • 46. fP26 Collaborate/Problem Solve (Confronting). Incorporating multiple viewpoints and insights from differing perspectives; requires a cooperative attitude and open dialogue that typically leads to consensus and commitment (win / win). Compromise/Reconcile. Searching for solutions that bring some degree of satisfaction to all parties in order to temporarily or partially resolve the conflict (lose / lose). Smooth/Accommodate. Emphasizing areas of agreement rather than areas of difference; conceding one’s position to the needs of others to maintain harmony and relationships. Withdraw/Avoid. Retreating from an actual or potential conflict situation; postponing the issue to be better prepared or to be resolved by others. Force/Direct. Pushing one’s viewpoint at the expense of others; offering only win-lose solutions, usually enforced through a power position to resolve an emergency. Conflict Management. Handling, controlling, and guiding a conflictual situation to achieve a resolution – by team themselves then their boss specially in the social responsibility/ law/ ethics, (Major reasons of conflicts in order: schedules, priorities, resources – then - Technical opinions, Cost, Personalities). Decision Making Model: Problem Definition- Problem Solution Generation- Ideas to Action- Solution Action Planning- Solution Evaluation Planning- Evaluation of the Outcome and Process. Factors that affect the decision style: time constraints, trust, quality, and acceptance.
  • 47. - Internal (within the project) and external (customer, vendors, other projects, organizations, the public); -Vertical (up and down the organization) and horizontal (with peers). - Paralingual communication is the tone and pitch of your voice (55% of the message transmitted comes through body language, 38% of the message transmitted comes through vocal inflection (paralingual), Only 7% of your message consists of the actual words that you use). - Written and oral/ verbal (voice inflections – 1st warning informal) and nonverbal (body language). - Formal (reports, minutes, briefings, 2nd warning) and informal (emails, memos, ad-hoc discussions); - Official (newsletters, annual report) and unofficial (off the record communications). Project Communications Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information. 90% of a project manager’s job is communication. 10- Communication Management
  • 48. P27 10.1. Plan Communications Management Communications Management Plan. A component of the project, program, or portfolio management plan that describes how information will be effectively administered. Communication Requirements Analysis. An analytical technique to determine the needs of the project stakeholders. The number of potential communication channels n*(n – 1)/2, n: no. of stakeholders. Communication Technology. Specific tools, systems, computer programs, etc., used to transfer information. Factors that can affect the choice include: (Urgency of the need for information. Availability of technology. Ease of Use. Project environment. Sensitivity & confidentiality of the info.). Communication Methods. A systematic procedure, technique, classified : (interactive is the most efficient - meetings, phone calls, instant messaging & video conferencing), (push to specific recipients - letters, memos, reports, emails, faxes, voice mails, blogs, press releases), (pull for very large volumes of information, or for very large audiences- intranet sites, e-learning, lessons learned databases, knowledge repositories). Meetings. Most project meetings are more formal with a prearranged time, place, and agenda. Communication Models. Schematic to represent (sender encode, transmit Message: medium-noise, signal (acknowledge), receiver decode, then feedback/ response vice versa). the sender is responsible for the transmission of the message clear and complete. The receiver ensuring that the information is received.
  • 49. P28& 29 10.2. Manage Communications Manage Communications. The process of creating, collecting, distributing, and the ultimate disposition of project information. (Presentation techniques. Awareness of the impact of body language and design of visual aids. Facilitation techniques. Building consensus and overcoming obstacles. Listening techniques. Listening actively (acknowledging, clarifying, and confirming understanding, and removal of barriers/blockers). Information Management Systems. Facilities, processes, and procedures used to collect, store, and distribute information between producers and consumers of information in physical or electronic format. Project Communications. Project communications may include but are not limited to: performance reports, deliverables status, schedule progress, and cost incurred. 10.3. Control Communications Issue Log. A project document used to document and monitor elements under discussion or in dispute –unresolved may cause conflict/ delay- between project stakeholders (who is responsible for resolving specific issues by a target date).
  • 50. P30 13.1. Identify Stakeholders - Initiating Analytical Techniques. The current engagement level of all stakeholders needs to be compared to the planned engagement levels required for successful project completion. The engagement level can be classified : - Unaware. Unaware of project and potential impacts. - Resistant. Aware of project and potential impacts and resistant to change. - Neutral. Aware of project yet neither supportive nor resistant. - Supportive. Aware of project and potential impacts and supportive to change. - Leading. Aware of project and potential impacts and actively engaged in ensuring the project is a success. * The current engagement can be documented using Stakeholders Engagement Assessment Matrix. The project team needs to identify the desired engagement level based on available information. Stakeholder Management Plan. The stakeholder management plan is a subsidiary plan of the project management plan that defines the processes, procedures, tools, and techniques / communication requirements to effectively engage stakeholders in project decisions and execution based on the analysis of their needs, interests, and potential impact. should be aware of the sensitive nature and take appropriate precautions (may affect schedule). 13.2. Plan Stakeholder Management
  • 51. P31 &32 13.3. Manage Stakeholder Engagement Manage Stakeholder Engagement. communicating and working with stakeholders to meet their needs/ expectations (expected result may happen), satisfaction, address issues as they occur, and foster appropriate stakeholder engagement throughout the project life cycle. Change Log. A comprehensive list of changes made. This typically includes dates of the change and impacts in terms of time, cost, and risk. 13.4. Control Stakeholder Engagement Control Stakeholder Engagement. The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders. Egotistical refers to being self-centered. Enlightened self interest refers to persons who act to further the interests of others (to which they belong), ultimately serving their own self-interest. Ethnocentric means tending to look at the world primarily from the perspective of one's own culture.
  • 52. P33 12.1. Plan Procurement Management Procurement Management Plan. project or program management plan that describes how acquiring goods and services from outside (potential sellers). Procurement Statement of Work. Describes the procurement item in complete detail to allow prospective sellers to determine if they are capable of providing. Procurement Documents. The documents in bid and proposal include: buyer’s Invitation for Bid (IFB), Invitation for Negotiations, Request for Information (RFI), Request for Quotation (RFQ), Request for Proposal (RFP), and seller’s responses. Source Selection Criteria. required attributes of seller, objective or subjective (Risk, Capability/ Capacity, Warranty, Past performance,..) may use screening or weighting systems- (sole source the only provider available, single source a preferred vendor). Make-or-Buy Decisions. Strategic decisions made regarding the external purchase or internal manufacture of a product (depends on the duration of use). Organizational Process Assets. Formal procurement policies, procedures, and guidelines (centralized or de- centralized). All legal contractual relationships (as shown in the next slide). Make-or-Buy Analysis. The process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product (consider risk). Market Research. The process of gathering information at conferences, online reviews, and a variety of sources to identify market capabilities. This process iteration takes place after collect req., define scope and before create WBS.
  • 53. fP33 Legal contractual relationships (mutually binding agreement) generally fall into: Fixed-Price Contracts. (1) An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it (Bid: IFB, much risk for seller). Firm-Fixed-Price Contract (FFP). A type of fixed price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller’s costs. Fixed Price Incentive Fee Contract (FPIF). A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria. (Point of Total Assumption: used in the event of cost overrun, is the point at which the seller assumes all additional costs for delivering a product of the project - PTA = ((Ceiling Price -Total Price) / Buyer's Share Ratio)) + Target Cost); the ‘total cost’, ‘estimated cost’, or ‘target cost’ (are synonymous), represents the contracted cost without the profit. Fixed Price with Economic Price Adjustment Contracts (FP-EPA). a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation, or cost change for specific commodities. Cost-Reimbursable Contract. (2) A type of contract involving payment to the seller for the seller’s actual costs, plus a fee typically representing seller’s profit, this require buyer to audit invoices carefully (Proposal: RFP, risk for buyer). Cost Plus Fixed Fee Contract (CPFF). A type of cost-reimbursable contract where the buyer reimburses the seller for the seller’s allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee). Cost Plus Incentive Fee Contract (CPIF). the buyer reimburses the seller for the seller’s allowable costs (are defined by the contract), and the seller earns its profit if it meets defined performance criteria with a sharing ratio – buyer/seller. Cost Plus Award Fee Contracts (CPAF). A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee (+ve only) representing seller profit with ceiling/ max. Time and Material Contract (T&M). (3) a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixed-price contracts. resemble CR type in that they have no definitive end, because the full value of the arrangement is not defined. Thus, can grow in contract value as if they were CR type. Conversely, can also resemble FP type. For example, the unit rates are preset by the buyer and seller (Quotation: RFQ, risk for buyer).
  • 54. fP33 Buyer Vs Seller Employer Contractor Contractor Subcontractor Purchaser Supplier Pays money Offers service
  • 55. fP33 The project manager knows the project risks. PM needs to make sure provisions are included in the contract to address these risks. Contract priority of documents: -Agreement -Particular Conditions -General Conditions -Special Specs. -General Specs. -Drawings -B.O.Q. Words are binding more than no.s Force majeure = EOT, Extension of Time
  • 56. P34 12.2. Conduct Procurements Seller Proposals. Formal responses from sellers to a request for proposal or other procurement document specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will do for the requesting organization that, if accepted, would bind the seller to perform the resulting agreement. Buyer. The acquirer of products, services, or results for an organization. Seller. A provider or supplier of products, services, or results to an organization. Contract supersede prior agreements. Bidder Conference. The meetings with prospective sellers prior to the preparation of a bid or proposal to ensure all prospective vendors have a clear and common understanding of the procurement. Also known as contractor conferences, vendor conferences, or pre-bid conferences. Proposal Evaluation Techniques. The process of reviewing proposals provided by suppliers to support contract award decisions (as per selection criteria: shortlisting, screening system,…). Selected Sellers. The sellers selected to provide a contracted set. Agreements. the initial intentions of a project after (LOI: letter of intent) if used. This can take the form of a contract, memorandum of understanding (MOU), letters of agreement, verbal agreements, a purchase order, email, etc. (include terms and conditions).
  • 57. fP34 Independent Estimates. A process of using a third party to obtain and analyze information to support prediction of cost, schedule, or other items. Advertising. The process of calling public attention to a project or effort. Analytical Techniques. By examining past performance information, teams may identify areas that may have more risk and that need to be monitored closely to ensure success of the project. Procurement Negotiations. clarify the structure, requirements, and other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final contract language reflects all agreements reached (in order: performance, scope, schedule, price). You may refer to any of these tactics: • Fait Accompli - Standard contract terms that are nonnegotiable. (In reality, anything in the contract is negotiable although your adversary will never admit it). • Deadline - Make it clear that this is the time by which they must do. As the deadline approaches, increase the emotional pressure, talking more about what will happen if the deadline is missed. • Good guy /bad guy - One person acts in an aggressive and pushy way, making unreasonable demands and requiring compliance. The other person acts in kind and friendly, asking nicely - and getting compliance. • Missing man - The person who can actually make the decision is missing from the negotiation. The negotiator can then negotiate for a lower price or more favorable terms which they claim they can agree to. • Limited authority - Refusing to give in on items because you have not been given authority to do what is being requested. • Fair and reasonable - You can engage the other person by asking them 'what is fair'. You can also bring something into the negotiation that is, by definition, fair. You can also reject criteria from the adversary on the grounds that it is not fair. • Unreasonable - Stating that the other side is making unreasonable demands of you in the negotiation. • Delay - Stretching out the negotiation, especially at critical moments. • Attack - A direct attack on your integrity, trustworthiness, competence, or other such bullying bombast designed to force compliance out of you.
  • 58. P35 12.3. Control Procurements Contract Change Control System. The system used to collect, track, adjudicate, and communicate changes (CCB might review and approve, but only the procurement manager has the authority to sign a change). Procurement Performance Reviews. A structured review of the seller’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. Inspections and Audits. A process to observe performance of contracted work or a promised product against agreed-upon requirements, any breach happens (Privity: no contractual relationship between client and subcontractors, so he has to deal with him through the main contractor). Performance Reporting. See work performance reports (Integration – Control). Payment Systems. The system used to provide and track supplier’s invoices and payments. Claims Administration. The process of processing, adjudicating, and communicating contract claims (contested or potential constructive changes: requested change can’t reach agreement between buyer and seller). Records Management System. A specific set of processes, related control functions, and tools that are consolidated and combined to record and retain information about the project. Organizational Process Assets Updates. (Correspondence, Payment schedules and requests, Seller performance evaluation documentation).
  • 59. P36 12.4. Close Procurements Close Procurements. The process of completing each project procurement (completion or termination), also involves administrative activities such as finalizing open claims, updating records to reflect final results, and archiving such information for future use. Procurement Audits. The review of contracts and contracting processes for completeness, accuracy, and effectiveness (audits are used to improve processes and learn from success). Procurement Negotiations. . the final equitable settlement of all outstanding issues, claims, and disputes by negotiation is preferred. Otherwise some form of alternative dispute resolution (ADR) including mediation or arbitration may be explored. When all else fails, litigation in courts is the least desirable option. Records Management System. by the project manager to manage, archive contract and procurement documentation , correspondence and records. Closed Procurements. Project contracts or other procurement agreements that have been formally acknowledged by the proper authorizing agent as being finalized and signed off. Organizational Process Assets Updates. (Procurement file, Deliverable acceptance, Lessons learned documentation).
  • 60. Project Risk Management. Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. Risk Appetite. Attitude. The degree of uncertainty an entity is willing to take on, in anticipation of a reward (risk seeker vs risk averse). Threshold. A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications. Crossing the threshold should trigger some action, such as generating an exception report. Risk Threshold. Measure of the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk. Risk Tolerance. The degree, amount, or volume of risk that an organization or individual will withstand. Risk. An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives (Business risk: gain or loss, Pure risk: loss only “i.e., fire, theft, etc.”). Threat. A risk that would have a negative effect on one or more project objectives. Opportunity. A risk that would have a positive effect on one or more project objectives. 11- Risk Management
  • 61. P37 11.1. Plan Risk Management Risk Management Plan. A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed. Risk Breakdown Structure (RBS). A hierarchical representation of risks according to their risk categories. Risk Category. A group of potential causes of risk. Probability and Impact. A risk rating matrix is developed by a department or a company should be standardize d between projects.
  • 62. P38 11.2. Identify Risks Documentation Reviews. The process of gathering a corpus of information and reviewing it to determine accuracy and completeness. Information Gathering Techniques. Repeatable processes used to assemble and organize data across a spectrum of sources (Brainstorming, Delphi Technique, Interviewing, Root Cause Analysis). Checklist Analysis. checklists are developed based on historical information, knowledge accumulated from previous projects, and other sources of information. Assumptions Analysis. A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions. Diagramming Techniques. Approaches to presenting information with logical linkages that aid in understanding (Cause-and-effect diagrams, System or process flow charts, Influence diagrams: graphical representations of situations showing causal influences, time ordering of events, and other relationships among variables). SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats of an organization, project, or option. Risk Register. A document in which the results of risk analysis and risk response planning are recorded (POTENTIAL responses).
  • 63. P39 11.3. Perform Qualitative Risk Analysis Risk Probability and Impact Assessment. Risks with low ratings of probability and impact will be included within the risk register as part of the watch list for future monitoring. Probability and Impact Matrix. A grid for mapping the probability of each risk occurrence and its impact on project objectives if occurs. That leads to rating (risk score) the risks as low, moderate, or high priority. Perform Qualitative Risk Analysis. The process of prioritizing (rank) risks for further analysis or action by assessing and combining their probability of occurrence and impact. Risk Data Quality Assessment. Technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining accuracy, quality, reliability, and integrity. Risk Categorization. Organization by (e.g., using the RBS), the area affected (e.g., WBS), or other useful category, to determine the areas most exposed to the effects of uncertainty. Risk Urgency Assessment. Review and determination of the timing of actions that may need to occur to give a final risk severity rating. watch list
  • 64. P40 Perform Quantitative Risk Analysis. The process of numerically analyzing the effect of identified risks on overall project objectives. Modeling and simulation. A project simulation uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives, typically performed using: Monte Carlo Simulation. A process which generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole, demonstrates cumulative distribution, otherwise known as an 'S' curve. Data Gathering and Representation Techniques. used to collect, organize, and present information and data (Interviewing, Probability Distribution: continuous probability distributions represent the uncertainty like -beta or triangle distribution, uniform distribution when most likely is not obvious in early stage, discrete distribution for possibility in modeling such as in tree analysis). Quantitative Risk Analysis and Modeling Techniques. Commonly used both event-oriented and project-oriented analysis approaches (Sensitivity analysis, EMV analysis, Modeling and Simulation). 11.4. Perform Quantitative Risk Analysis
  • 65. fP40 Expected Monetary Value (EMV) Analysis. A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen. A common use of this technique is within decision tree analysis. Sensitivity Analysis. A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact. The typical display of results is in form of a tornado diagram.
  • 66. P41 11.5. Plan Risk Responses Trigger Condition. (Detectability) An event or situation that indicates that a risk is about to occur, symptoms, and warning signs of a risk occurrence. Residual Risk. A risk that remains after risk responses have been implemented (accept). -Secondary Risks. arise as a direct result of implementing a risk response to be analyzed. Strategies for negative risks or threats (4). Avoid. eliminate the threat or protect from its impact. Mitigate. reduce the probability of occurrence or impact. Transfer/ deflect/ allocate. shifts the impact of a threat to a third party, together with ownership (insurance). Accept. not take any action unless the risk occurs. Strategies for positive risks or opportunity (4). Exploit. for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. Enhance. to increase the probability and/or the positive impacts of an opportunity. Share. involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project (joint ventures). Accept. is being willing to take advantage of the opportunity if it arises, but not actively pursuing it. Contingent Response Strategies. Responses provided may be used in the event that a specific trigger occurs. Fallback Plan. (Plan B) Fallback plans include an alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes. Plan Risk Responses. The process of developing options and actions to enhance opportunities and to reduce threats to project objectives (Risk owner). Response plan will cause final reserves include values of actively accepted risks. Start planning processes Iterations after risk planning
  • 67. fP41
  • 68. P42 11.6. Control Risks Risk Reassessment. the identification of new risks, reassessment of current risks (unexpected impact/ additional responses), closing of outdated and not repetitive risks, and look at the risks impact on the overall project. Workaround. A response to a threat that has occurred, for which a prior response had not been planned or was not effective, may be passive acceptance (trick: risk discovered and not occurred qualify first/ analyze/ assess). Risk Audits. Examination and documentation of the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process. Variance and trend analysis. variance analysis to compare the planned results to the actual results, trends in the project’s execution should be reviewed using performance information. Technical performance measurement. Reserve Analysis. An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project. Meetings. Risk management should be an agenda item at status meetings to exchange project information. 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. It’s a good option to revisit or reevaluate any area of lack / variance to be revised for minimizing the future impacts. No OPA input in 11.5,11.6
  • 69. P43 4.1. Develop Charter - Initiating Project Management Plan. The document that describes how the project will be executed monitored, and controlled. The project management plan’s content varies depending upon the application area and complexity of the project. It is developed through a series of integrated processes extending through project closure. This process results in a project management plan that is progressively elaborated by updates, and controlled and approved through the Perform Integrated Change Control process (no need to submit change request during planning), contains all baselines (performance measurement baselines) and management plans. 4.2. Develop Project Management Plan Develop Project Management Plan. The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. PM is integrator, focus the interfaces, and not to delegate this role. Most project documents are created by the project manager for using during the project, and do not require outside approval for changes. Kickoff Meeting
  • 70. P44 4.3. Direct and Manage Project Work Approved Change Request. A change request that has been processed through the integrated change control process and approved. Project Management Information System. An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems. Automated gathering and reporting on key performance indicators (KPI) can be part of this system. Deliverable. Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. Work Performance Data. The raw observations and measurements identified during activities being performed to carry out the project work. Change requests. (Corrective Action, Preventive Action, Defect Repair, Scope change). 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.
  • 71. P45 4.4. Monitor and Control Project Work Analytical Techniques. 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. Examples of analytical techniques used in projects are: - 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. Work Performance Reports. The physical or electronic representation of work performance information compiled in project documents,(and includes the following types of reporting: -Status reports: where the project now stands -Progress Reports: what is been accomplished to date -Variance report: compares actuals to performance baselines -Trend report: measures performance over time to determine if performance is improving, deteriorating, or staying about the same -Earned value reports: reports on schedule, budget, and scope to assess project progress -Forecasts: predictions of future performance of schedule, budget, scope, risks, quality, and other) Manage Commum. & HR. Control Procurement & Risk.
  • 72. P46 4.5. Perform Integrated Change Control Notes: PM role is to influence the factors that affect the change, by determining the sources and fixing the root causes. Sponsor should help in control and preventing unnecessary changes (e.g. scope change not within the charter). Approved Change Request. A change request that has been processed through the integrated change control process and approved. Change Log. A comprehensive list of changes made during the project. This typically includes dates of the change and impacts on project constraints.
  • 73. fP46 Change Control Board (CCB). A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting Requested Change/s to the project, and for recording and communicating such decisions. Customer or sponsor approval may be required after CCB approval, unless they are part of the CCB. Some of the configuration management activities included in the Perform Integrated Change Control process are as follows: Configuration identification, status accounting, verification and audit. PM to: Understand - Study the cause & effect/Impact - Proactively propose action - CCB - Sponsor Change Control Tools. Manual or automated tools to assist with change and/or configuration management. At a minimum, the tools should support the activities of the CCB. Configuration Management System. A subsystem of the overall project management system. It is a collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each change and its implementation status; and support the audit of the products, results, or components to verify conformance to requirements. It includes the documentation, tracking systems, and defined approval levels for authorizing and controlling changes.
  • 74. P47 4.6. Close Project or Phase Close Project or Phase. The process of finalizing all activities across all of the Project Management Process Groups to formally complete a project or phase. Final product, service or result transition. This output refers to the transition of the final product, service, or result that the project was authorized to produce (or in the case of phase closure, the intermediate product, service, or result of that phase). Organizational Process Assets Updates. Include deliverables such as: Project or phase closure documents/ final report of success, Historical information, lessons learned such as improved process, Project files/ archives. All procurements must be closed before the project as a whole is closed.
  • 75. E1 14- PMI Code of Ethics and Professional Conduct RESPONSIBILITY 2.1 Description of Responsibility: Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result. 2.2 Responsibility: Aspirational Standards / As practitioners in the global project management community: 2.2.1 We make decisions and take actions based on the best interests of society, public safety, and the environment. 2.2.5 We protect proprietary or confidential information that has been entrusted to us. 2.3 Responsibility: Mandatory Standards / Regulations and Legal Requirements 2.3.2 We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct. Reporting is not easy and we recognize that it may have negative consequences. Comment: These provisions have several implications. Specifically, we do not engage in any illegal behavior, including but not limited to: theft, fraud, corruption, embezzlement, or bribery. Further, we do not take or abuse the property of others, including intellectual property, nor do we engage in slander or libel. As practitioners and representatives of our profession, we do not condone or assist others in engaging in illegal behavior (Only government officials can collect routine government fees). Ethics Complaints: 2.3.3 We bring violations of this Code to the attention of the appropriate body for resolution. 2.3.4 We only file ethics complaints when they are substantiated by facts. Comment: These provisions have several implications. We cooperate with PMI concerning ethics violations and the collection of related information whether we are a complainant or a respondent. 2.3.5 We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns. RESPONSIBILITY RESPECT FAIRNESS HONESTY Ethical Decision- Making
  • 76. E2 FAIRNESS 4.1 Description of Fairness: Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self-interest, prejudice, and favoritism. 4.2 Fairness: Aspirational Standards/ As practitioners in the global project management community: 4.2.1 We demonstrate transparency in our decision-making process. 4.2.2 We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate. Comment: Research with practitioners indicated that the subject of conflicts of interest is one of the most challenging faced by our profession. One of the biggest problems practitioners report is not recognizing when we have conflicted loyalties and recognizing. We as practitioners must proactively search for potential conflicts and insisting that they be resolved (in the legitimate interests of the customer). 4.2.3 We provide equal access to information to those who are authorized to have that information. 4.2.4 We make opportunities equally available to qualified candidates. Comment: An implication of these provisions is, in contracting arrangement, we provide equal access to information during the bidding process. 4.3 Fairness: Mandatory Standards/ Conflict of Interest Situations 4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders. 4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision-making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed. Favoritism and Discrimination: 4.3.3 We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery. 4.3.4 We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation. 4.3.5 We apply the rules of the organization (employer, Project Management Institute, or other group) without favoritism or prejudice.
  • 77. E3 HONESTY 5.1 Description of Honesty: Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct. 5.2 Honesty: Aspirational Standards/ As practitioners in the global project management community: 5.2.1 We earnestly seek to understand the truth. 5.2.2 We are truthful in our communications and in our conduct. 5.2.3 We provide accurate information in a timely manner. Comment: An implication of these provisions, includes having the courage to share bad news even when it may be poorly received. Also, when outcomes are negative, we avoid burying information or shifting blame to others. When outcomes are positive, we avoid taking credit for the achievements of others. These provisions reinforce our commitment to be both honest and responsible. 5.2.4 We make commitments and promises, implied or explicit, in good faith. 5.2.5 We strive to create an environment in which others feel safe to tell the truth. 5.3 Honesty: Mandatory Standards/ As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: 5.3.1 We do not engage in or condone behavior that is designed to deceive others, including but not limited to, making misleading or false statements, stating half-truths, providing information out of context or withholding information that, if known, would render our statements as misleading or incomplete. 5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expense of another. Comment: The aspirational standards exhort us to be truthful. Half-truths and non-disclosures intended to mislead stakeholders are as unprofessional as affirmatively making misrepresentations. We develop credibility by providing complete and accurate information.
  • 78. E4 RESPECT 3.1 Description of Respect: Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. An environment of respect engenders trust, confidence, and performance excellence by fostering mutual cooperation. 3.2 Respect: Aspirational Standards/ As practitioners in the global project management community: 3.2.1 We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful. 3.2.2 We listen to others’ points of view, seeking to understand them. 3.2.3 We approach directly those persons with whom we have a conflict or disagreement. 3.2.4 We conduct ourselves in a professional manner, even when it is not reciprocated. Comment: An implication of these provisions is that we avoid engaging in gossip and avoid making negative remarks to undermine another person’s reputation. We also have a duty under this Code to confront others who engage in these types of behaviors. 3.3 Respect: Mandatory Standards/ As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: 3.3.1 We negotiate in good faith. 3.3.2 We do not exercise the power of our expertise or position to influence the decisions or actions of others in order to benefit personally at their expense. 3.3.3 We do not act in an abusive manner toward others. 3.3.4 We respect the property rights of others. PMI Volunteer. A person who participates in PMI- sponsored activities, whether a member of the Project Management Institute or not.
  • 79. January 2016 - Exam change (25%) Role Delineation Study every 3-5 years
  • 80. Thank You Don’t Hesitate to contact…. M.Maged magedkom@gmail.com mobile : 00966-580264968