This document provides an overview of the project planning process. It begins by outlining the initiating processes, which include selecting a project manager, determining the organizational context, and documenting the business need and project objectives. It then details the planning processes, such as developing the work breakdown structure, estimating time and costs, identifying risks, and developing the project management plan. Finally, it discusses executing the plan by acquiring the project team, implementing approved changes, and monitoring and controlling the project to ensure it stays on track. The document provides a comprehensive look at the key elements involved in planning, executing, and overseeing a project from start to finish.

1. Initiating
Initiating
1) Select Project Manager
2) Determine company culture and existing systems - Enterprise Environmental factors
3) Collect processes, procedures, lessons learned, and historical information - Organizational Process
Assets
4) Divide large projects into phases
5) Identify stakeholders
6) Document Business Need
What does the business hope to gain from the project?
Is it realistically attainable?
Is there a time frame requirement? Is it realistic?
Part of need is monetary return:
Net Present Value - Benefit less the Costs over several periods. Pick project with biggest NPV
Internal Rate of Return IRR - the bigger the better
Payback period - how quickly does project pay for itself
Benefit Cost Ratio = Benefit / Cost, bigger better
Opportunity Cost - opportunity lost by choosing one project over another
Working capital = current assets - current liabilities, money available to invest
Constrained optimization - (mathematical approach) a method of project selection using multi-objective
project algorithms
Not Value Analysis - which is a way method of finding the least expensive way of doing something.
7) Determine Project Objectives
What is the end result and purpose. How will the end be determined?
8) Document assumptions and constraints
For assumptions document what is the affect if the assumption is not true. This is the beginning of Risk
identification!
A Normal constraint is pre-determined delivery date
9) Develop project charter
Integration Knowledge area
Contains:
10) Develop preliminary project scope statement
Integration Knowledge area
Contains:
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2. Planning
Planning
1) Determine how you will do planning - part of management plans
The Art of Project Management
What needs to be done for a project is determined by it's size and complexity but...
When "Tailoring" a project to omit a process the reason for omission needs to be documented
Develop Project Management Plan - Integration KA
2) Create project scope statement
Scope Management plan - Scope KA
Scope definition - what is and is not included in the project - Scope KA
Product Scope - requirements that relate to the product of the project
Project Scope - the work to deliver the product of the project
A precise description of a deliverable includes a specification
3 Determine team
Persons to help plan the project: EA, QA, Contracts/Procurement, Risk Mgmt, Regulatory, specialized areas
depending on the project.
In this early part of the project, the PM will most likely be "Directing" the team to get things moving.
4) Create WBS and WBS dictionary
- deliverable oriented - ALL deliverables even PM deliverables
- is the foundation from which the project knows what to do
- is a hierarchal decomposition of the work, a layer at a time, into Work Packages
(work packages cannot be broken down further, can be completed quickly, without need for more information)
WBS is the tool, Decomposition is the process to create the WBS.
There are many benefits of WBS, some are: reduces chance of missing work, helps team see where their piece
fits, provides proof of staffing needs, cost and time requirements
The WBS does NOT show dependencies, that is in the Network Diagram.
WBS Dictionary - Identifier, work to be done, person responsible, milestones or due dates.
Output:
Scope baseline = Project Scope Statement, the WBS, the WBS dictionary
Project Scope Statement is updated
Scope management plan is updated
5) Create Activity List
- is the decomposition of WBS items.
Activity Definition - Time KA
6) Create Network Diagram
Activity Sequencing - Time KA
Float = LF - LS or EF - ES
Total Float - time a task can be delayed w/o affecting project completion.
Free Float - delay that will not affect the next task in the sequence
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3. Planning
7) Estimate Resource requirements
Activity Resource Estimating - Time KA
Directing - Telling others what to do
Facilitating - Coordinating the input of others
Coaching - Instructing others
Supporting - Providing assistance along the way
Autocratic - Do it "my" way
Consultive - Invite ideas and discussion
Consensus - Problem solving in a group, with group agreement
8) Estimate Time and Cost
When there is uncertainty regarding one or more aspects of a project then one of the first steps to take is to
increase the Cost Estimate (not to be confused with padding where the is no uncertainty).
Bottom up estimating
Analogous Estimating - something similar
Parametric Estimate - lines of code or industry standard
Definitive estimate - -10% to + 15%
Cost of Quality
Cost of PMO
Activity Duration Estimating - Time KA
Cost Estimating - Cost KA
Considerations:
Life Cycle Costing - overall cost of the life of the product
Value Analysis - Finding less costly way to do same work
Cost Risk - who has the most risk for a contract.
9) Determine Critical path
Proves how long a project will take
Shows where to focus efforts
Shows which issues need immediate attention
Shows where schedule compression can take place
Shows affects of float
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4. Planning
10) Develop Schedule
Schedule Management Plan - The schedule baseline is the final schedule.
Schedule Development - Time KA, Outputs = Project Schedule, Resource Rqmts (updates), PM plan
(updates)
Schedule Network Analysis uses one or all of:
PERT - see formulas
Critical Path method
Schedule compression
What if scenarios - Monte Carlo Analysis, simulate schedule outcomes
Resource Leveling - lets schedule slip and cost increase due to limited resources
Critical Chain method - the use of built in buffers, milestones
Schedule compression:
Re-estimating - to reduce/remove risks
Fast tracking - running critical path activities in parallel, increases risk because of potiential re-work
Crashing - to make cost and schedule trade offs
11) Develop Budget
Cost Budgeting - Cost KA
Cost Baseline - includes Contingency Reserve
Cost Budget - includes Management Reserve
Funding Limit Reconciliation - if the funds to pay for the project are not available then Schedule will be
impacted, the project would be delayed because there is no way to pay for it.
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5. Planning
12) Determine Quality Standards, Processes, and Metrics
Qaulity = the degree to which the project fulfills requirements, ie scope
Quality Planning - outputs:
Quality management plan (p 243)
Checklists - items to inspect
Process Improvement plan - Review of: are there repeated processes? how status updates and other stats
gathered?
Quality Baseline - measure of what? Defects after implementation
Quality Metrics - how is project going, are there a lot of defects in testing causing rework.
Benchmarking - uses past projects for improvement ideas and sets guidelines for quality improvement.
Quality Assurance is determining whether standards are being met, work is continuously improved, and
deficiencies corrected. Done mostly in Executing. Continuous improvement. Improvements to company standards
Tools are:
Quality Audits - standards followed, lessons learned
Process Analysis - Qualit improvement of repeated processes
Quality Control = measure results against standards. Changes to Quality baseline. Defect repair. Done during
Monitoring and Controlling, using tools:
Cause and Effect diagram (Fishbone or Ishikawa),
Flowchart,
Histogram, Pareto Chart (80/20 rule) fix 80% of problems from 20% of causes,
Run Chart,
Scatter Diagram,
Control Chart - customer specification versus quality control limit.
13) Determine Roles and Responsibilities
Human Resource KA
Outputs of Human resource planning:
1) Roles and Responsibilities
2) Org Charts - RACI chart
3) Staffing management plan
See chapter 9 for specific roles of sponsor, team, etc
In a Matrix organization the Functional manager controls the resources. Similar to Cardinal
On test assume Matrix orgization if not stated.
For comparisons between organization structures, think Functional
Project Expediter - staff assistant, cannot make decisions
Project Coordinator - has some decision authority
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6. Planning
14) Determine Communication requirements
90% of pm time
Communications Planning - Communications KA
What, Why, Between who, Method, Whose responsible, When, How often
Escalation process, Management chain to assist in Issue resolution
Channels = N(N - 1) / 2
Formal written - complex problems, pm plans, charter, over long distances
Formal verbal - presentations, speeches
Informal written - emails, notes
Informal verbal - meetings, conversations
Nonverbal communication = 55%
Paralingual = pitch and tone
Feedback - make sure understood
15) Risk 1) Identification, 2) qualitative and 3) quantitative risk analysis and 4) response planning
Risk Management planning - Risk KA
Uncertainty (lack of knowledge) about the eventual conclusion of an event.
When there is uncertainty regarding one or more aspects of a project then one of the first steps to take is to
increase the Cost Estimate (not to be confused with padding where the is no uncertainty).
Contingency Reserves for Known Risks - is part of the Cost baseline
Management Reserves for Unknown Risks - is part of the overall budget but not part of the Cost baseline
Risk review and identification should be primary purpose of Update meetings
Know stakeholders:
Risk Tolerance - whether a risk is acceptable
Risk Threshold - how much risk is acceptable
Risk Register - Trigger (the root cause), What will occur, the chance it will occur, when it would occur,
how frequently occurs, response, response owner, reason for risk going to the watch list
Ways to determine risks:
Sources of Risk / Risk Categories - areas that need to be reviewed for risks (pmp prep 333)
Brainstorming
Delphi technique - anonymous expert participation to reach a consensus (of risk response id'ing)
Root Cause Analysis - the cause of the risk could reveal other risks
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of the project to find risks.
RISK is continued in next cell.
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7. Planning
15) Risk Identification, qualitative and quantitative risk analysis and response planning
Qualitative Risk Analysis - subjective feel for the risk events probablity and impact. Qualitative risk analysis are
probability and impact definition, assumptions testing and probability and impact matrix development
Risk Matrix - probablity and impact ranking
Risk Quality assessment - how accurate and understood is the risk
Risk Urgency assessment - how quickly will the risk occur OR will it take along time to plan a response
Watch List - non-critical, low priority risks to be reviewed later, an output from Qualitative Risk Analysis
Quantitative Risk Analysis - a "risk assessment" that is a numerical analysis of probablity and impact
Monte Carlo analysis - using 3 point estimates to simulate project outcomes and overall project risk
Sensitivity Analysis - what risks have the most potiential impact to the project
Expected Monetary Value - the probablity of a risk Times the risks monetary impact
Decision Tree - maps out possible choices that are mutually exclusive and their impact to determine best choice.
Uses expected monetary value
Risk Response Planning - first, look to get rid of the cause of the risk
Strategies for threats: Avoid (eliminate cause), Mitigate (reduce probability), Transfer (also Deflect, Allocate)
Strategies for opportunities: Exploit (make it happen), Enhance (increase probability), Share (ie partner to enhance
Acceptance (if it happens, it happens) is a strategy
Risk Response Owner - person that owns, inititiates, and oversees the risk response plan for a specific risk
16) Iterations - Go back
17) Determine what to purchase
Plan Purchases and Acquisitions
Procurement Management plan
Contract Statement of Work
Make or Buy decision
Contract types:
Fixed Price (FP) - the best for the buyer
Seller may under bid then try to make up with difference with change orders, more work for buyer to write SOW,
seller has strong incentive to control costs
Time and Material (T&M) - medium risk to buyer, usually for smaller projects
Requires auditing of invoices, hard to manage requires day to day oversight, no cost control incentive.
Good for quick startup and staff augmentation
Cost Reimbursable (CR) - buyer has most risk because costs are unknown
Requires auditing of seller invoices, hard to manage, seller has no incentive to control costs
The Contract Manager is the ONLY person that can change the Contract.
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8. Planning
18) Prepare procurement documents
Protect relationship with seller
Outputs:
Plan Contracting
Procurment documents
1) Request for Proposal RFP - price and how work will be done. Cost Reimbursable (CR) contract
2) Invitation for Price IFP, or Request for Bid RFB - one price to do all the work. Fixed Price (FP) contract
3) Request for Quotation RFQ - request price per item, product, etc. Time and Material (T&M) contract
A letter of intent is not a contract
4) Statement of Work SOW - can be changed and updated as it moves thru procurement process (Herman W)
Privity is a contractual relationship. If A contracts with B, and B subcontracts with C. C does not have to listen to
A. A needs to talk with B, then B will talk with C.
Evaluation Criteria of sellers - should be in the Procurement docs so Sellers know how they will be judged
Single Source - Preferred Supplier
Sole Source - Only one Supplier
19) Determine the "How to Execute and Control aspects of all management plans
20) Create Process Improvement plans
As planning occurs, where are the points where improvements could occur?
What are these touch points?
21) Develop final PM plan and performance measurement baselines
22) Gain formal approval
This is making sure that all of the major Stakeholders buy-in to the project and the plan to guide the project.
23) Hold Kickoff meeting
First thing, in the kick-off is to discuss/review the Roles and Responsibilities of both individuals and teams.
There should be no surprises as the persons should already have been involved but it needs to be re-iterated.
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9. Executing
Executing
1) Acquire final team
Should be according to the Staffing management plan
Human Resource KA
Outputs:
1) Staff assignments
2) Resource Availability
3) Updated Staffing management plan
Is according to how the Budget and Schedule were determined
2) Execute the PM plan
Direct and Manage project execution - Integration KA
Outputs are all of the deliverables from all the activities in this process group
3) Complete the Product Scope
- requirements that relate to and describe the product of the project
4) Follow processes
5) Use Work Authorization system
To help schedule when and by who the work is to be performed.
6) Hold progress meetings
Agenda should have team input
Have meeting ground rules
7) Continuous Improvement
Quality Assurance is determining whether standards are being met, work is continuously improved, and
deficiencies corrected. Done mostly in Executing. Continuous improvements to company standards
Tools are:
Quality Audits - standards followed, lessons learned, Quality Plan followed
Process Analysis - improve repeated processes
Lessons Learned - gathered throughout project
8) Recommend changes and corrective actions
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10. Executing
9) Send and Receive information
Information distribution - Communications KA
Making information available in a timely manner to stakeholders. This includes:
Performance reporting against baselines,
Requested changes
Forecasts,
Issues,
Lessons Learned
Nonverbal = 55% of communication
Paralingual = Pitch and Tone of voice
10) Implement approved changes, defect repair, preventive, corrective actions, AND contingency plans
Integration is Key at Interface points in the project, where different processes interact (ie. Request
changes, Defect repair, Approve and Implement changes)
11) Team Building
Develop Project Team - Human Resource KA
Output is Team Performance assessment - how effective is the team, how can it be improved
PM powers: 1) Expert, 2) Reward, 3) Formal, 4) Referent 5) Penalty
Get training for team members to improve skill set.
Constructive team role of PM is Initiator, Encourager, Gatekeeper
Project Performance Appraisals - of each employee
Team Performance Assessment - team effectiveness
12) Give recognition and awards
Manage Project Team - Human Resource KA
13) Request Seller responses
Protect relationship with seller
Bidder Conferences
Keep all questions and answers in writing; issued to all potential sellers
Outputs:
1) Qualified Seller list
2) Procurement Document package
3) Proposals
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11. Executing
14) Select Sellers
Methods of evaluating:
Weighting based on criteria
Independent estimate - reasonableness check
Past Performance, Presentations, Negotiations tactics
Some of the outputs:
1) Selected Sellers
2) Contract
An offer with Acceptance, that has a Consideration (ie some form of payment), Legal Capacity, Legal
Purpose (cannot have a contract for illegal activity)
3) Contract Management plan - have a summary of milestones, deliverables, reporting, etc
4) Resource Availability
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12. Monitor and Control
Monitoring and Controlling
OVERSEES the Entire project thru ALL of the process Groups
1) Configuration management
Subset of Project Management System, documents the procedures used to give guidance to the
project.
Allows for the documenting of all Requested Changes and that they were reviewed thoroughly for
"Triple Constraints"
Is a repository of all documents especially the Baselines for all pm plans
Configuration Management is used to ensure that the product description correct and complete
via the repository of information.
A precise description of a deliverable includes a specification
2) Integrated change control - Integration KA
Every change request must go thru the Change Control process to seek approval
Stakeholders may need to approve changes that affect them.
For every change request the affects to scope, schedule, budget, quality, risk, and customer
satisfaction must be considered.
3) Use Issue Log
Manage Stakeholders - Communication KA
Is used from the beginning of a project to make sure all stakeholders requirements are
addressed.
Assists in keeping stakeholders aware of change requests and corrective actions.
Can be used to track team member concerns
4) Facilitate conflict resolution
Confronting (Problem Solving) - Win/Win confronting the problem to solve the real problem
Compromising - Lose/Lose - some degree of satisfaction but not totally happy
Withdrawal (Avoidance)
Smoothing - focus on agreements rather than differences of opinion
Forcing - push one point of view. For personal issues Forcing is not a good thing, work related
issues it is more ok.
Top 4 causes of conflict: 1) Schedules, 2) Priorities, 3) Resources, 4) Technical opinions. Not
personality issues.
Manage Project Team - Human Resource KA
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13. Monitor and Control
5) Risk Audits
Are processes being followed, are there ways to improve
Risk Monitoring and Controlling - Risk KA
Risk review and identification should be primary purpose of Update meetings
Are assumptions of risks still valid.
Respond to Risk Triggers
6) Measure against the performance measurement baselines:
Monitor and Control Project Work - Integration KA
Monitor and Controlling oversees all of the other process groups, even during Initiatiing Process
Group
Scope Control - changes will occur but they must be managed. Look for where scope changes
can occur
Schedule Control -
Cost Control - outputs are Estimate at Completion EAC, Budget Updates, Revised Cost
Estimates
Quality Control - Quality audits = measure results against standards. Changes to Quality
baseline. Defect repair. Done during Monitoring and Controlling,
Tools: Cause and Effect diagram (Fishbone or Ishikawa), Flowchart, Histogram, Pareto Chart
(80/20 rule) fix 80% of problems from 20% of causes, Run Chart, Scatter Diagram, Control Chart -
customer specification versus quality control limit.
Risk Control below
Use of Earned Value Analysis (EVA) for CPI and SPI
7) Measure according to the management plans
8) Determine variances and if they warrant corrective action or a change
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14. Monitor and Control
9) Scope verification
Tool: Inspect a deliverable
Inputs: Project Scope Statement, WBS Dictionary, Project Scope Management plan, Deliverables
A precise description of a deliverable includes a specification
Output:
Get formal (written) acceptance of a deliverable from the customer
else Request changes, Defect repair, Corrective actions
An example of Scope Verification is reviewing the performance of an installed software module
Scope Verification is concerned with acceptance of deliverables
While Quality Control is concerned with meeting Quality requirements
Note: Corrective actions are an OUTPUT of both Scope Verification AND Scope Control
10) Recommend changes, defect repair, preventive and corrective actions
11) Manage reserves - Time and Cost
Reserve Analysis - accommodate time and cost risks thru the use of reserves
Contingency Reserves - Known Risks - is part of the Cost baseline
Management Reserves - Unknown Risks - is part of the overall budget but not part of the Cost
baseline
12) Approve changes, defect repair, preventive and corrective actions
13) Measure team member performance
Manage Project Team - Human Resource KA
Project Performance Appraisals - of each employee
Team Performance Assessment - team effectiveness
14) Create forecasts
Performance reporting - Communication KA
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15. Monitor and Control
15) Administer contracts
Protect relationship with seller
The PM is responsible for assuring that all things in the contract are done, however small, and
that the PM must uphold all parts of the contract. If there is some item of the contact not being
performed then it needs to be called out immediately.
Outputs:
Contract Documentation
PM Plan updates - Procurement plan, Contract Mgmt plan
Force Majeure - act of God
16) Report on performance
This relates to BOTH the project performance as well as the team and individual performance
Performance reporting - Communication KA
Motivation theories:
McGregor's theory X (employees need to be watched) and Y (people can take initiative to work on
own)
Maslow's Hierarchy - Self actualization, Esteem, Social, Safety, Physical needs
Herzberg's Theory - Hygiene factors (things surrounding work) vs. Motivating agents (things
within work)
Bribes are never to be paid, ever! If it looks like a bribe, smells like a bribe, then it's a bribe.
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16. Closing
Closing - not in any specific order EXCEPT that Release Resources is always
last.
1) Develop Closure procedures
Projects always need to be formally closed regardless of what causes the project to end.
Contract Closure - Closes a contract that is part of the project. Occurs before administrative
closure. Addresses all the terms and conditions of the contract. Documents the acceptance of
all exit criteria for contract closure. Uses term "Procurement audit"
Administrative Closure - done at end of project or project phases. Documents the approval all
changes. Documents that all deliverables have been formally accepted. Documents the
acceptance of all exit criteria. Uses term "Lessons Learned". Is done after Contract Closure
2) Confirm work is to requirements
Do project deliverables meet completion or exit criteria set at the beginning during planning
3) Gain formal acceptance of the product
Formal, written signoff of acceptance from customer
4) Hand off completed product
Turn over to the Maintenance/Run teams, Operations, etc.
5) Complete Contract Closure
Make final payments, complete cost records.
Complete Contract Closure - Product verification, Financial closure, Final Contract Performance
reporting
6) Final performance reporting
Update team information, new skills acquired, overall performance, etc
7) Index and archive records
8) Update lessons learned knowledge base
9) Release resources
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