Pmp Exam Preparation V7.1 (consolidated) .pdf

Project Management Professional (PMP)® Exam Preparation Course Book PMP is a registered mark of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP and PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 2

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP and PMBOK are registered marks of the Project Management Institute, Inc.

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MODULE 1

Introduction to PMP® Certification Course Based on the PMBOK® Guide - Sixth Edition

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Learning Objectives

Learning Objectives for this Module are: What is PMI® & PMBOK® Guide? Evolution of the Project Management Institute

Certifications offered by the PMI® PMI® contact resources What is PMP®?

Based on the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute, Inc., 2017

Prerequisites for the PMP® Exam PMP® Exam Syllabus How is the PMP® Exam structured? About this tutorial PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation What is the PMI® and the PMBOK® Guide? PMI: Project Management Institute

PMI official website: www.pmi.org PMI is the world’s leading not-for-profit membership association for the Project Management profession. PMI offers PMP® (Project Management Professional) examinations across the world. PMBOK® Guide: Project Management Body of Knowledge Latest Edition of the PMBOK® Guide is the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation Evolution of the PMI® and the PMBOK® Guide: 1969 - Project Management Institute was founded. 1976 - Discussion on Standards 1981 - PMI Board of Directors approved the Proposal 1984 - Approval of the 2nd standards; launch of PMP® certification 1985 - Workshop as part of PMI® Annual Seminars 1986 - Three New Sections Project Management Framework Risk Management Contract/Procurement Management

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PMP® Exam Preparation 1987 - PMBOK® Guide was approved and published 1996 - A guide to the PMBOK® Guide 2000 - Second Edition 2004 - Third Edition 2008 - Fourth Edition with examination changes in 2011 2012 - Fifth Edition published 2017 - Sixth Edition published

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PMP® Exam Preparation Certifications offered by the PMI: Certified Associate in Project Management (CAPM)® Project Management Professional (PMP)® PMI® Scheduling Professional (PMI-SP)® PMI® Risk Management Professional (PMI-RMP)® Program Management Professional (PgMP)® Portfolio Management Professional (PfMP)® Agile Certified Practitioner (PMI-ACP®)® Professional Business Analyst (PMI-PBA)® CAPM, PMI-SP, PMI-RMP, PgMP, PfPM, PMI-ACP, and PMI-PBA sre registered marks of the Project Management Institute, Inc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMI® Contact Resources Americas Project Management Institute, Inc. - Headquarters 14 Campus Boulevard, Newtown Square, PA 19073-3299 USA E-mail: [email protected] Toll number: +1-610-356-4600 Toll free number: 1-855-746-4849 Fax:+1-610-356-464 EMEA PMI EMEA Service Centre Dundalk, Ireland E-mail: [email protected] Toll number: +353-42-682-5610 (Middle East and Africa) PMP, PMBOK are registered marks of the Project Management Institute, Inc.

India PMI India PMI® Organization Centre Private Limited, Mumbai, India E-mail: [email protected] Website: www.pmi.org.in New Delhi: +91-124-4517-140 Bangalore: +91-80-6583-3671 10

PMI® Contact Resources Asia Pacific PMI Asia Pacific Service Centre 20, Bendemeer Road Cyberhub, #04-02 Singapore 339914 Tel: +65 6496 5501 Fax: +65 6496 5599 E-mail: [email protected]

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China PMI China Room 1107, 11th Floor, Beijing Sun Palace Building No.12A, Taiyanggong Middle Road Chaoyang District, Beijing 100028, China Tel: +86-10-84299191 Fax: +86-10-84299292 Email: [email protected] Website: china.pmi.org

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PMP® Exam Preparation What is PMP®? PMP® : Project Management Professional PMP® is a credential offered by the Project Management Institute (PMI)®

PMP® exam is based on: PMBOK® Guide (see PMP® Exam Content Outline) PMI® Code of Ethics and Professional Conduct Other current Project Management practices Once certified PMP® Certification is valid for 3 years. Holders must achieve 60 PDUs for renewal PDU: Professional Development Units 1 PDU corresponds to 1 hour of professional development activity approved by the PMI® PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Prerequisites for the PMP® Exam Training - 35 contact hours of project management training, e.g. this program enables you to make a claim for the PMI's 35 hour training requirement. Project Experience - Experience leading and directing project "tasks":

With a four year bachelor’s degree or global equivalent – 4500 hours over at least 36 months With High School/Diploma - 7500 hours over at least 60 months Application for exam with payment can be submitted online. After accepting your application, PMI will send an electronic notification indicating: Examination scheduling instructions, or The application has been selected for audit You need to schedule the exam within 1 year from the date of registration PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Format of the PMBOK® Guide The PMBOK® Guide - Sixth Edition consolidates the cross-sectoral and global Project Management experience of thousands of practitioners.

It presents the following in a self-consistent form: 49 Project Management processes assigned to 5 Process Groups (related to when they are used) and 10 Knowledge Areas (related to why they are used)

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The 5 Process Groups:

1. Initiating 2. Planning 3. Executing

4. Monitoring & Controlling 5. Closing

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PMP® Exam Preparation - The 5 Process Groups: Initiating: Consists of 2 processes used to: Develop Project Charter Identify Stakeholders

Planning: There are 24 planning processes that are used for: Defining the Project Scope Defining the project's objectives Defining the course of action required (Project Management Plan)

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PMP® Exam Preparation - The 5 Process Groups: The processes in this group are: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Develop Project Management Plan Plan Scope Management Collect Requirements Define Scope Create WBS or Work Breakdown Structure Plan Schedule Management Define Activities Sequence Activities Estimate Activity Durations Develop Schedule Plan Cost Management Estimate Costs

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▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

Determine Budget Plan Quality Management Plan Resource Management Estimate Activity Resources Plan Communications Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Plan Procurement Management Plan Stakeholder Engagement.

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PMP® Exam Preparation - The 5 Process Groups: Executing: There are 10 executing processes where all the work planned is carried out. Direct and Manage Project Work Manage Project Knowledge Manage Quality Acquire Resources Develop Team Manage Team Manage Communications Implement Risk Responses Conduct Procurements Manage Stakeholder Engagement

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PMP® Exam Preparation - The 5 Process Groups: Monitoring and Controlling: Consists of 12 processes primarily used to: Track actual performance Identify deviations from plan Implement corrective actions Report on project performance

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The processes here are: Monitor and Control Project Work Perform Integrated Change Control Validate Scope Control Scope Control Schedule Control Costs Control Quality Control Resources Monitor Communications Monitor Risks Control Procurements Monitor Stakeholder Engagement

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PMP® Exam Preparation - The 5 Process Groups: Closing: Consists of 1 processes to: Formally close down the project or phase The process is: 

Close Project or Phase

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PMP® Exam Preparation – Knowledge Areas The 10 Knowledge Areas are: Integration Management To ensure integration of all the Project Management processes and activities in meeting the project's objectives.

Scope Management To ensure that the project contains all the work required to meet the objectives, nothing more, nothing less.

Schedule Management To ensure that the project is completed within the time constraints.

Cost Management To ensure that the project can be completed within the approved budget.

Quality Management To ensure that the project meets the quality requirements of the stakeholders. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation – Knowledge Areas The 10 Knowledge Areas (continued): Resource Management To organize, develop and manage the project team

Communications Management To ensure the management of project information, from collection to disposition

Risk Management To increase the Probability (P) & Impact (I) of opportunities and decrease the Probability (P) and Impact (I) of threats

Procurement Management To ensure that products or services are of the required quality and are procured for integration with the final product

Stakeholder Management To identify and manage stakeholders throughout the life cycle of the project and increase the chance of project success. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation How is the PMP® exam structured? There are 200 multiple choice questions to be answered in 4 hours Only 175 answers count for examination purposes 25 questions are randomly placed pretest (un-scored) questions PMI grades the exam on each of the 5 process groups. Based on this grading the PMI declares a PMP® pass or fail Each right answer will earn 1 point Project Management Process There is no penalty for wrong answers.

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Percentage of Questions

Initiating

13

Planning

24

Executing

31

Monitoring & Controlling

25

Closing

7 23

PMP® Exam Preparation About the Course Introduction to the PMP® Certification Course Project Management Framework Project Management Process Groups Knowledge Areas (10): Integration Management Scope Management Schedule Management Cost Management Quality Management Resource Management Communication Management

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Risk Management Procurement Management Stakeholder Management Ethics and Professional Conduct PMP® Examination tips and tricks

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End of Module 1 Introduction to the PMP® Certification Course Based on the PMBOK® Guide - Sixth Edition

PMP is a registered mark of the Project Management Institute, Inc.

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PMP® Exam Preparation Course Book PMP is a registered mark of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP is a registered mark of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 27

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP is a registered mark of the Project Management Institute, Inc.

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MODULE 2 Project Management Framework Based on the PMBOK® Guide - Sixth Edition

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Learning Objectives - Project Management Framework In this module, we will cover: Definition of a Project

Strategic Alignment of Projects

What is Project Management?

Business Benefits

What is Operations Management?

Benefits Realization

What is Program Management?

Business Value

What is Portfolio Management?

Constraints

Project Management Office (PMO)

Organizational Systems

Portfolio, Program, Project – A High Level View

Enterprise Environmental Factors

Mission, Vision, Goal, Strategy, Objective and Tactic

Organizational Process Assets

Organizational Strategy

Project Life Cycle Vs Product Life Cycle

Project’s Link with Organizational Strategy

Role of a Project Manager

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PMP® Exam Preparation Definition of a Project A project can be defined as a unique endeavor involving many activities that have a beginning and an end, undertaken to create a unique product, service or result. It brings about change and is often executed in a fast changing and high risk environment. It will end when either its goals and objectives are met or the project is brought to a premature end (termination). In principal, projects are non-repetitive.

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PMP® Exam Preparation Project - Characteristics Unique Product, Service , or Result : Projects are undertaken to fulfill objectives by producing deliverables. A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself A unique service or a capability to perform a service A unique result, such as an outcome or document A unique combination of one or more products, services, or results Temporary Endeavor : Indicates that a project has a definite beginning and end Projects drive change : A project is aimed to moving an organization from one state to another state in order to achieve a specific objective. Projects enable business value creation : Business value in projects refers to the benefits that the results of a specific project provide to its stakeholders. The benefit from projects may be tangible, intangible, or both. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Management The application of knowledge, skills, tools & techniques to meet the project requirements: Project Management as well as project product knowledge Interpersonal, management & technical skills Tools and techniques such as earned value management, network diagramming techniques, decomposition etc. Accomplished through the appropriate application and integration of the 49 logically grouped Project Management processes.

The primary challenge of Project Management is to achieve all of the project goals and objectives while respecting the project constraints. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Operations Management Operations Management is that aspect of a business enterprise which is involved in the ongoing production of goods and services in the most efficient and effective way: It aims to maximize profits. It is concerned with managing processes that transform inputs into outputs.

Its efficiency and effectiveness can be monitored by the application or implementation of quality systems and techniques. In contrast with projects, it is usually repetitive.

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PMP® Exam Preparation Program Management A program is a group of projects, which are managed together to obtain greater benefits and efficiency which would not be available when managing them individually, while minimizing the negative risks (threats) and costs For a group of projects to be called a program, it must add some value in managing them together. If there is no added value it cannot be defined as a program

Program Management is the coordinated management of a specific program to achieve its strategic goals, objectives and benefits Program Management also includes coordinating and prioritizing resources across projects, managing links between the projects and the overall costs and risks of the program Program focus is on the realization of benefits through projects. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Portfolio Management Portfolio focus is on aggregate investment performance and benefit realization. A portfolio refers to a collection of projects or programs and operations that are grouped together to effectively meet strategic objectives.

Project Portfolio Management is a term used to describe methods for analyzing and collectively managing a Project Portfolio. The projects or programs of the portfolio may or may not be interdependent or directly related.

Portfolio Management focuses on resource prioritization to serve the organization’s strategy.

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PMP® Exam Preparation Project Management Office (PMO) The PMO is an organization structure that is responsible for providing centralized coordinated management and support for projects in the organization. PMOs create value through Standardization (e.g. process, systems), Knowledge (e.g. retention, training) & Consulting (e.g. project, outcome) Typical functions of the PMO include: Providing coaching, training, mentoring, and oversight on how to manage projects. Developing and managing procedures, policies, templates, and other documentation shared by the projects. Auditing projects to ensure compliance with set standards. Managing shared resources across all the projects administered by the PMO. Coordinating communication across projects. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Management Office (PMO) - Types Supportive Provide a consultative role by supplying templates, best practices, training, access to information and lessons learned Serves as a project repository The degree of control is low Controlling Provide support and require compliance through various means The degree of control is moderate Directive Take control of the projects by directly managing the projects Project managers are assigned by and report to the PMO The degree of control is high. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Portfolio, Program, Project – A High Level View Portfolios can have sub-portfolios, projects or programs, which are managed as a group to meet strategic objectives Programs can have a related set of subprograms, projects, operations and other work managed in a coordinated way to get benefits. Projects are at the lowest level in this hierarchy to create product or service or result. A portfolio has a parent-child relationship with component programs/projects; A program has a parent-child relationship with its projects

Portfolios, Programs, Projects and Operations

“A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute, Inc., 2017, Figure 1-3, Page 12“.

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PMP® Exam Preparation Vision, Mission, Goals Vision: Vision describes the future state of the organization. Vision provides a long term direction. Mission: The mission statement describes the purpose. Mission articulates the reason why it exists and tells where to go. Goals: An organization establishes goals that will move toward its vision. Goals define what an organization wants to achieve in a multi-year period. Goals for an organization are set in areas such as profitability, competitive position, technological leadership, productivity. Goals finally lead to clearly defined benefits and outcomes through strategic objectives. Outcomes: Outcomes are the final results, outputs or deliverables realized through individual projects inside a program or a portfolio. Benefits: Benefits are the outcomes of actions and behaviors that provides utility to the intended recipients. Benefits are the economic or other exploited effect of outcomes. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Strategy, Objective and Tactic Strategy: An approach that you take to achieve goal. Strategies direct the execution of work intended to achieve the goals. Hence goals of strategic nature are called strategic goals. Objective: Objectives are measurable steps to achieve a strategy. These are quantifiable. Goals finally will have objectives that measure goal achievement. Objectives serving the strategy are called strategic objectives. Tactic: Tactic is a tool that you use in pursuing an objective associated with a strategy. Tactics are mostly short-term. Although temporary in nature, projects help organization to achieve its goals which are aligned with the organizational strategy. Projects in an organization mostly serve the tactical purpose. Organizations can change their products, systems or operations by creating strategic business objectives which are developed and implemented through projects.

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PMP® Exam Preparation Organizational Strategy Overall 3 types of organization Profit organization: An organization that exists primarily to yield a return for its owners. Nonprofit organization: An organization that does not distribute its surplus funds to owners or shareholders, but instead use them to help pursue its goal. Government organization: An organization that exists under government ownership. The strategic objectives of all types of organizations are outlined in the strategic plan. Strategic Plan: Strategic plan of an organization documents the organization’s strategic vision, goals, objectives and may contain a high level mission statement. All projects should be aligned with this strategic plan. Strategic plan is the key document that ensures project undertaken by the organization contributes to overall organizational objectives. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Organizational Strategy (continued) Organization’s strategic plan describes how an organization’s core strengths and competencies will be used to: Manage resources effectively Manage stakeholder value Capitalize on opportunities Minimize impact of threats Respond to changes in the market, legal, and regulatory environment Reinforce focus on critical operational activities Organization’s strategic plan acts as an input in the creation of project charter and is referenced in the project Statement of Work (SOW) issued by the sponsoring organization for the project.

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PMP® Exam Preparation Project’s Link with Organizational Strategy

Strategic and Operational processes within an Organization

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Top of the triangle – “vision”, “mission” and “strategy and objectives” are the components to set the targets or goals Middle of the triangle – “portfolio management”, “strategic planning and management of projects, program and operations” establishes appropriate actions required to meet the goals Bottom of the triangle – contribution of all programs, projects and operations provide value production capability or produces value (with on-going operations) 44

PMP® Exam Preparation Strategic Alignment of Projects Executive Management

Vision

Strategic Objectives

Governance

Authorized Portfolio

Portfolio Management Project and Program Management

Strategic Plan

Mission

Authorized Component

Operations Management

Program Project Management

Performance Measurements

Program Project Closeout

Operations Cross Organization Project Management Relationship – Aligned towards Strategy

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PMP® Exam Preparation Strategic Alignment of Projects (continued) Organizations have vision and mission as well as goals, strategies and objectives to achieve the vision. Organizational strategy is a result of its strategic planning cycle. Vision and mission are translated into a strategic plan during the strategic planning cycle. The strategic plan is within organization’s value boundaries. The strategic plan of the organization is subdivided into a set of organizational initiatives. Initiatives are grouped into portfolios. These initiatives establish portfolios of programs, projects and operations components to be executed in a pre-determined period. Projects or programs are linked to organization’s strategic plan by portfolio. Within programs and portfolios, projects are a means of achieving organizational strategy and objectives

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PMP® Exam Preparation Projects and Strategic Planning Projects are often utilized to achieve the objectives of an organization’s strategic plan. Projects are authorized as a result of one or more of the following strategic considerations: Market demand, e.g., fuel-efficient cars in response to gasoline shortages Strategic opportunity/business need, e.g., a training company authorizing a project to create a new course to increase its revenue Social need, e.g., a non-government org authorizing a project to provide portable water systems and sanitation education to communities with high rate of infectious diseases Environmental consideration, e.g., solar powered cars by an organization to reduce pollution Customer request, e.g., an electric utility authorizing a project to build a new substation Technological advance, e.g., developing new generation of smart phones based on LTE and 4G technologies Legal requirement, e.g., a project to comply with government regulations PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Business Case A documented economic feasibility study used to establish the validity of the benefits of a selected project Is used as a basis for the authorization of the project Lists the objectives and reasons for project initiation Helps measure the project success at the end of the project against the project objectives Contents of a business case : Business needs Analysis of the situation Recommendation Evaluation.

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PMP® Exam Preparation Business Benefits A benefit is an outcome of actions, behaviors, products or services that provides utility, value or a positive change to the intended recipients, which can be the sponsoring organization as well as the intended stakeholders. Benefits can be certain and quantifiable and may include concrete conditions such as achievement of organization’s financial objectives or creation of a physical product or service or utility, e.g., A 25% increase in revenue or gross margin A 30% increase in sales Reduced operating costs Reduced delivery time or Faster response time Reduced accommodation costs Staff savings

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PMP® Exam Preparation Business Benefits (continued) Benefits can also be less quantifiable (and hence typically captured qualitatively) and may produce somewhat uncertain outcomes, e.g., Improvement in employee morale Greater organizational flexibility Customer satisfaction Increased job satisfaction Reduced incidence of health condition or disease Improved presentation Better market image Better management information Programs and Projects deliver benefits by enhancing current capabilities or developing new capabilities. These support the organization’s strategic goals and objectives. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Benefits Analysis Benefits can be mapped against attributes of financial, nonfinancial, quantifiable, and nonFinancial quantifiable. This is done while analyzing the benefits. Financial and quantitative benefits are quantitatively captured, Non-Financial whereas most of the other types are qualitatively captured.

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Quantifiable

Non-quantifiable

Financial and quantifiable, e.g., increase in revenue

Financial and nonquantifiable, e.g., alignment with strategy

Non-financial and quantifiable, e.g., faster response time

Non-financial and nonquantifiable, e.g., increase in team work

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PMP® Exam Preparation Benefits Analysis (continued) Immediate

While analyzing, benefits can also have other aspects: they are either Tangible and tangible or intangible, and they are Tangible immediate, e.g., reduced accommodation costs incurred or enjoyed either immediately or over the longer term. Combining these aspects gives four Intangible and categories as shown. Intangible immediate, e.g., better management information Tangible benefits are quantified whereas intangible benefits are qualified.

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Longer Term Tangible and longer term, e.g., 30% increase in profit

Intangible and longer term, e.g., improved morale

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PMP® Exam Preparation Benefits Realization Benefit realization illustrates – and measures – precisely how projects and programs add true value to the organization. Benefit realization is the practice of ensuring that the project produces the projected or desired benefits, as outlined in the business case. Organization’s with mature benefits realization process can benefit from: Clearly identifying the strategic rewards prior to starting a project Effectively assessing and monitoring risks to project success Proactively planning for making necessary changes in the organization Explicitly defining accountability for project success Routinely extending responsibility for integration to the project team High benefit realization is inextricably linked to the success of the projects

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PMP® Exam Preparation Benefits Realization (continued) Benefits realization is part of program management. However, project managers need to be aware of how well the project is progressing toward the delivery of benefits. Project managers help identifying various measures for benefit realization. To ensure realization a test period (e.g. soft launch in services) can be part of the total project time before being operationalized. Benefits realization is performed with the help of benefits register, benefits mapping and benefits realization plan. Benefits register: Benefits register collects and lists the planned benefits for the program. It defines appropriate performance measure for each benefit. Benefits realization plan: Benefits realization plan formally documents the activities necessary for achieving the program’s planned benefits through projects, subprograms or other work. Benefits mapping: It shows how benefits are mapped to strategic objectives. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Benefit Management in Program with Projects, Subprograms and Other work Projects, Sub-programs, Other work Project

Discrete Benefits

Benefit Benefit Benefit

Subprogram

Benefit Benefit

Other work

Consolidated

Sustained Benefits

Program Benefits

Benefit

Benefit

Subprogram

Benefit Benefit

Project

Benefit Benefit Benefit

Program Life Cycle PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Benefits Management Plan Describes how and when the benefits of the project will be delivered Describes the mechanisms that should be in place to measure the benefits Contents : Target benefits Strategic alignment Timeframe for realizing benefits Benefits owner Metrics Assumptions Risks

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PMP® Exam Preparation Project Success Measures Key questions that stakeholders and the project manager should answer : What does success look like for the project? How will success be measured? What factors may impact success? Project success should be measured in consideration toward achievement of the project objectives. Project success may include criteria linked to the organizational strategy and to the delivery of business results. Some key project objectives include : Completing the project benefits management plan Meeting the agreed-up financial measures in the business case Meeting the non-financial objectives in the business case, etc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Business Value Business value is defined as the entire value of the business. It is the total sum of all tangible and intangible elements. Business Value can be short, medium or long term depending on the organization. Value is delivered when the organization is able to utilize the benefits coming out of the program – program is about getting benefits through projects. In operations management, the delivery of value is realized through day to day business processes. Effective use of portfolio, programs and projects increases value production capability and gives greater business value from project investments. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Business Value Tangible Elements (Monetary Assets, Fixtures, Stockholder Equity, Utility ) Intangible Elements (Good will, Brand recognition, Public benefit, Trademarks)

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PMP® Exam Preparation Constraints Constraints are usually:

Typical constraints include:

Constraints may also include:

Competing with one another

Time

Contractual provisions

Cost

Organizational policies

Changing over time

Scope

Interrelated

Quality

Communication (language barrier)

Risk

Environment

Resources

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PMP® Exam Preparation Organizational Systems

• • •

A system is a collection of various components that together can produce results not obtainable by the individual components alone. Governance is the framework within which authority is exercised in organizations. Governance framework influences how :

• • •

•

Objectives of the organization are set and achieved Risk is monitored and assessed, and Performance is optimized.

Management Elements are the components that comprise the key functions or principles of general management in the organization

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PMP® Exam Preparation Organizational Systems Organizational Structure Types

• Organic or Simple • Functional • Multi-divisional • Matrix – Strong • Matrix – Weak • Matrix – Balanced • Project-oriented • Virtual • Hybrid • PMO PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Functional Organizational Structure Projects running in this structure normally do not have an appointed Project Manager Funding and reporting are through the organization's functional structure

Managing Director Director

Manager

Project resources report to their own functional managers

Manager

Director

Manager

Manager

Manager

Resource

Resource

Resource

Resource

Resource

Resource

Resource

Resource

Resource

Resource PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Matrix Organizational Structures The Project Manager shares responsibility for assigning project team members with the functional managers. 3 types are described:

Weak Matrix: A part-time Project Manager is appointed who does not control the project budget. The functional managers have more control over the resources than the Project Manager. Manager

Balanced Matrix: The Project Manager and functional Managers share responsibility for the project and authority over the project resources equally. Strong Matrix: A Project Manager who controls the project budget is appointed full time.

Managing Director

Director

Manager

Director

Manager

Resource

Resource

Resource

Resource

Resource

Resource

Resource

The Project Manager has more authority over the project resources than the functional managers. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Project Manager

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PMP® Exam Preparation Projectized Organizational Structure The Project Manager has full authority over project resources, can assign project priorities and direct the work of the project team members. The project team members report only to the Project Manager. Project Manager

Team Leader

Resource

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Resource

Team Leader

Resource

Resource

Resource

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PMP® Exam Preparation Enterprise Environmental Factors Refer to conditions, not under the control of the project team, that influence, constrain, or direct the project. Internal and external factors that impact or influence a project’s success. May originate from any or all of the enterprises involved in the project and include culture and structure of the performing organization.

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PMP® Exam Preparation Enterprise Environmental Factors Internal to the organization : Organizational culture, structure, and governance Geographic distribution of facilities and resources Infrastructure Information technology software Resource availability Employee capability

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External to the organization : Marketplace conditions Social and cultural influences Legal restrictions Commercial databases Academic research Government or industry standards Financial considerations Physical environmental elements

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PMP® Exam Preparation Organizational Process Assets The plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization. Formal or informal plans Policies Procedures Templates Guidelines Lessons learned Configuration management knowledge repositories, etc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Life Cycle vs Product Life Cycle The Project Life Cycle is a logical sequence of activities required to accomplish the project’s goals or objectives. Any project goes through a series of stages during its life, regardless of scope or complexity. The Product Life Cycle usually consists of five major steps:

Product Development Product Introduction Product Growth Product Maturity Product Decline The product will be withdrawn from the market when it becomes obsolete. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

68

PMP® Exam Preparation Project Life Cycle vs. Product Life Cycle The Project Life Cycle has the following characteristics: Phases within one project may be overlapping. Typically one project phase does not last more than 6 months. Phases may be repeated during a project. Project phases may not be sequential. The Product Life Cycle has the following characteristics: Phases are non-overlapping. Phases may last for several years. Each phase occurs only once. Phases are sequential.

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PMP® Exam Preparation Project Life Cycle A project life cycle is the series of phases that a project passes through from its start to its completion.

In the Sixth Edition of the PMBOK® Guide, there are 5 types of life cycle: Predictive Life Cycle Iterative Life Cycle Incremental Life Cycle Adaptive Life Cycle

Hybrid Life Cycle

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PMP® Exam Preparation Project Life Cycle Predictive Life Cycle has the following characteristics: Scope and time, cost required to deliver that scope is known early in the life cycle Used when product to be delivered is well understood, and there is substantial base for industrial practice Typically it follows sequential phases Also known as Fully Plan-driven The Iterative Life Cycle has the following characteristics: The project scope is determined early in the project Time and cost estimates are routinely modified as the product understanding increases Iterations develop the product through a series of repeated cycles Used when organizations need to manage changing objectives and scopes, to reduce complexity of the project

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PMP® Exam Preparation Project Life Cycle The Incremental Life Cycle has the following characteristics: Deliverables is produced through a series of iterations Functionality is successively added within a predetermined time frame Will be considered complete only after the final iteration. The Adaptive Life Cycle has the following characteristics: It has also an iterative and incremental approach, but differs in that iterations are very rapid - usually 2 to 4 weeks of time. Fixed in time and cost before the start of iteration Also known as Change Driven or Agile Methods Used with a rapidly changing environment, when requirements and scopes are difficult to define in advance The Hybrid Life Cycle has the following characteristics: Is a combination of predictive and adaptive life cycle. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation The Role of the Project Manager

• •

•

The Project Manager is responsible for the overall accomplishment of the project, ensuring that the project objectives are achieved. Project Manager role is different from the Functional Manager or Operations Manager

• •

Function Manager  Typically focused on management oversight for an administrative area Operations Manager  Typically responsible for a facet of core business

The key role of the Project Manager is to ensure project integration.

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PMP® Exam Preparation The role of Project Manager comprises many responsibilities including:

Planning and defining scope

Scalability, interoperability and portability

Resource planning

analysis

Schedule development

Activity planning and sequencing

Developing a budget

Developing schedules

Managing risks and issues Risk analysis

Cost estimating Controlling Quality Creating charts and schedules

Documentation

Customer Liaison

Strategic influencing

Team leadership

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PMP® Exam Preparation The Project Manager’s Sphere of Influence

•

The Project

• •

•

Works to balance the competing constraints on the project with the resources available

The Organization

• • • •

•

Leads the project team to meet the project’s objectives and stakeholders’ expectations

Proactively interacts with other project managers Seeks ways to develop relationship that assist the team in achieving the goals and objectives of the project Maintains a strong advocacy role within the organization

Works towards increasing the project management competency and capability within the organization

The Industry

• •

Stays informed about current industry trends Assess the information to understand the impact or its applicability to the current project

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PMP® Exam Preparation The Project Manager’s Sphere of Influence

•

Professional Discipline

• •

•

Contribution of knowledge and expertise to others within the profession Participation in training, continuing education, and development

Across Disciplines

• •

May choose to orient and educate other professionals regarding the value of a project management approach to the organization May serve as an informal ambassador by sharing knowledge and advantages of project management

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Technical Project Management Skills

•

The skills to effectively apply project management knowledge to deliver the desired outcomes for programs or projects.

• • • •

Focus on critical technical project management elements Tailor both traditional and agile tools, techniques, and methods for each project Make time to plan thoroughly and prioritize diligently Manage project elements – schedule, cost, resources and risks

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Strategic and Business Management Skills

•

Involve the ability to see the high-level overview of the organization and effectively negotiate and implement decisions and actions that support strategic alignment and innovation.

• • • • •

Explain to others the essential business aspects of a project Work with the project sponsor, team, and subject matter experts to develop an appropriate project delivery strategy Implement that strategy in a way that maximizes the business value of the project Apply knowledge and information about the organization to ensure project alignment Determine the business factors that should be considered for the project

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Leadership Skills

• •

Ability to guide, motivate, and direct a team Apply leadership skills and qualities when working with project stakeholders

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Leadership : Qualities and Skills of a Leader

• • • • • • • • • • • • •

Being a visionary Being optimistic and positive

Being collaborative Managing relationships and conflict Communicating Being respectful, courteous, trustworthy and ethical Exhibiting integrity Giving credit to others where due Being a life-long learner who is results- and action-oriented Focusing on the important things – prioritizing work Having holistic and systemic view of the project Apply critical thinking Build effective teams.

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Leadership : Different forms of power • Positional • Informational • Referent • Situational • Personal or charismatic • Relational • Expert • Reward-oriented • Punitive or coercive • Ingratiating • Pressure-based • Guilt-based • Persuasive • Avoiding

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Leadership : Styles

• • • • • •

Laissez-faire Transactional Servant leader Transformational Charismatic Interactional

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PMP® Exam Preparation The Project Manager Competences : PMI Talent Triangle®

•

Leadership : Personality

• • • • • • • • • • •

Authentic Courteous Creative Cultural Emotional Intellectual

Managerial Political Service-oriented Social Systemic

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84

PMP® Exam Preparation The Project Manager Role : Performing Integration

•

Two-fold aspects

• •

•

Work with the project sponsor to understand the strategic objectives and ensure alignment with portfolio, program and business areas Guide the team to work together to focus on what is really essential at the project level.

Areas to focus

• • •

Integration at the process level Integration at the cognitive level Integration at the context level

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85

Questions - MODULE 2

Project Management Framework

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PMP® Exam Preparation Questions Module 2 Question – 1 Which of the following is not a characteristic of a project? A. Unique B. Temporary C. Creates a product D. Repetitive Question – 2 You are working in an organization which is fundamentally a functional organization. However, whenever needed, a group of people are taken from various functional departments to work on a project, which is created specially. What kind of organization are you in? A. Strong Matrix B. Balanced Matrix C. Functional D. Composite PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 3 A project can be taken up in an organization due to many strategic factors. Which one of the following is not a factor to initiate a project? A. Technological advance B. Market demand C. Stakeholder wishes D. Legal requirements Question – 4 In which one of the following organizational structures is a project manager’s role not full time? A. Weak matrix B. Balanced matrix C. Strong matrix D. Both A and B PMP, PMBOK are registered marks of the Project Management Institute, Inc.

88

PMP® Exam Preparation Question – 5 Which one of the statements below is not correct? A. A program can have projects, but a project may not be part of a program B. Program or projects in a portfolio may not be interdependent or directly related C. A program can contain work outside the discrete projects under that program D. A project must belong to one of the programs in an organization Question – 6 After a project’s closure, as the project manager you have captured the lessons learned and stored into the archive. The archive will be considered as: A. Enterprise Environmental Factors B. Organizational Process Assets C. Policies for the Organization D. Templates for future projects PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 7 Which one of the statements below is correct? A. Value is realized when the portfolio is closed B. Value is realized when the project is operationalized C. Value is realized when the undertaken program delivers the intended benefits D. Value is realized when initiatives are created from strategic objectives Question – 8 Which one the following depicts the correct sequence? A. Initiatives  Strategy  Portfolio  Program  Project B. Vision  Initiatives  Strategy  Portfolio  Program  Project  Work Package C. Strategy  Initiatives  Portfolio  Program  Project  Work Package  Task D. Goals  Objectives  Strategy  Initiatives  OPM  Portfolio  Program  Project

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End of Module 2

Project Management Framework Based on the PMBOK® Guide - Sixth Edition

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91

PMP® Exam Preparation Course Book PMP is a registered mark of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP is a registered mark of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 93

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP is a registered mark of the Project Management Institute, Inc.

94

MODULE 3

Project Management Processes Based on the PMBOK® Guide - Sixth Edition

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95

Learning Objectives - Project Management Processes In this module, we will cover:

Project Life Cycle Overview Project Life Cycle vs. Project Management process Stakeholders Key Stakeholders Process Groups and Knowledge Areas Inputs/outputs of the 49 Project Management processes Organizational influences on Project Management

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96

PMP® Exam Preparation Project Life Cycle Overview The project life cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives. The project life cycle includes: The technical work to be done in each phase.

When the deliverables are to be generated, how they are reviewed, verified & validated. Who is involved in each phase. How to control and approve each phase.

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97

PMP® Exam Preparation Project vs Process A Project is a one-off, unique undertaking A Process defines what work is done repetitively and how it is done An effective way of managing projects is by utilizing repetitive processes, with suitable one-off

parameters. To improve projects, the processes can be refined. The model can be applied at all levels, e.g. for sub-projects and phases - it does not relate solely to the project level.

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98

PMP® Exam Preparation 5 Process Groups The PMBOK® Guide - Sixth Edition categorizes Project Management processes in 5 Process Groups: Initiating = Starts the cycle Planning = Plan Executing = Do Monitoring & Controlling = Check & Act Closing = Ends the cycle NOTE: Process Groups are groups of processes, not phases.

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99

PMP® Exam Preparation Initiating Process Group The processes that facilitate the formal authorization to start a new project or a project phase. Includes the following Project Management processes: Develop the Project Charter to initiate & authorize the project. Identifying stakeholders by identifying all people or organizations impacted by the project, and documenting relevant information regarding their: o o o

Interests Involvement Potential impact on project success

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100

PMP® Exam Preparation Planning Process Group This process group consists of those processes that: Establish the total scope of the project Define and refine the objectives, and Develop the course of action required to attain those objectives. The planning processes develop the Project Management Plan and the project documents that will be used to carry out the project such as: Requirements Traceability Matrix Activity Lists Activity Attributes Risk Register etc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

101

PMP® Exam Preparation Executing Process Group The Executing Process Group is where all the project work related planning steps are put into action. Can be thought of as the "do" component of the Plan-do-check-act (PDCA) cycle model. Actions during execution process: Direct and manage project work Develop and manage project team Manage stakeholder engagement Implementing quality standards and assurance Implement training needs Implement approved changes Conduct procurement as per the plan Manage communications Update project documents PMP, PMBOK are registered marks of the Project Management Institute, Inc.

102

PMP® Exam Preparation Monitoring & Controlling Process Group A project needs consistent monitoring and controlling in order to stay within scope, be completed on time and within the allocated budget. The Monitoring and Controlling Process Group concerns two main aspects of Project Management: Monitoring and measurement of project performance, making adjustments as needed with the end goal of maintaining the project on its pre-planned course. Providing the checks and balances needed to determine how a project is performing.

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103

PMP® Exam Preparation Monitoring & Controlling Process Group Actions Integrated change control Schedule / plan control Cost control Scope & quality control Identify problems & implement solutions Control stakeholder engagement Control communications Performance reporting

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104

PMP® Exam Preparation Closing Process Group The closing process group formalizes acceptance of the product, service, or result and brings the project or project phase to an orderly end.

This group includes the processes used to formally terminate all activities of a project or a project phase, to hand over completed work products, or to close a cancelled project or project phase. Obtain acceptance by the customer Measure customer satisfaction Conduct end review Study impacts of tailoring to any process Finalize and implement lessons learnt Hand over project deliverables to the operations team. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

105

PMP® Exam Preparation

Stakeholders Project stakeholders are individuals or organizations whose interests are affected positively or negatively by the project. Different project stakeholders can have different and conflicting expectations, which need to be analysed and managed. Stakeholders can include customers, end users, sponsors, program managers, portfolio managers, Project Management Offices (PMOs), project managers, project team members, functional managers, operation managers, sellers, vendors, legal departments, etc.

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PMP® Exam Preparation Key Stakeholder Categories

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107

PMP® Exam Preparation Project Management Process Groups

Monitoring & Controlling Planning Initiating

Closing Executing

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108

PMP® Exam Preparation Flow Diagram - Inputs, Tools and Techniques and Outputs Every project management process belongs to a process group and a knowledge area Each process consists of three component groups: Inputs Tools and Techniques Outputs PROCESS – 1

Inputs from Other Processes

TOOLS AND TECHNIQUES

INPUTS

OUTPUTS

PROCESS – 2 INPUTS

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TOOLS AND TECHNIQUES

Inputs to Other Processes OUTPUTS

109

PMP® Exam Preparation Process Groups & Knowledge Areas

Process Groups & Knowledge Areas Integration Management

Initiating

Develop Project Charter

Planning

Develop Project Management Plan

Executing

Direct & Manage Project Work Manage Project Knowledge

Monitoring & Controlling Monitor & Control Project Work Perform Integrated Change Control

Scope Management

Plan Scope Management Collect Requirements Define Scope Create WBS

Validate Scope Control Scope

Schedule Management

Plan Schedule Management Define Activities Sequence Activities Estimate Activity Durations Develop Schedule

Control Schedule

Cost Management

Plan Cost Management Estimate Costs Determine Budget

Control Costs

"Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) - Sixth Edition, Project Management Institute, Inc., 2017, Table 1-4, Page 25“.

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Closing

Close Project or Phase

PMP® Exam Preparation Process Groups & Knowledge Areas

Process Groups & Knowledge Areas

Initiating

Executing

Monitoring & Controlling

Quality Management

Plan Quality Management

Manage Quality

Control Quality

Resource Management

Plan Resource Management Estimate Activity Resources Plan Communications Management

Acquire Resources Develop Team Manage Team

Control Resources

Manage Communications

Monitor Communications

Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Plan Procurement Management

Implement Risk Responses

Monitor Risks

Conduct Procurements

Control Procurements

Plan Stakeholder Engagement

Manage Stakeholder Engagement

Monitor Stakeholder Engagement

Communications Management Risk Management

Procurement Management "Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK Guide) - Sixth Edition, Project Management Institute, Inc., 2017, Table 1-4, Page 25“.

Planning

Stakeholder Management

Identify Stakeholders

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Closing

PMP® Exam Preparation No

Inputs/outputs of 49 Project Management Processes

Process

Input

1

Develop Project Charter

1. 2. 3. 4.

2

Identify Stakeholders

3

Develop Project Management Plan

4

Plan Scope Management

5

Collect Requirements

1. Project Charter 2. Business Documents 3. Project Management Plan 4. Project Documents 5. Agreements 6. Enterprise Environmental Factors 7. Organizational Process Assets 1. Project Charter 2. Outputs from other Planning Processes 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Project Charter 2. Project Management Plan 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Project Charter 2. Project Management Plan 3. Project Documents 4. Business Documents 5. Agreements 6. Enterprise Environmental Factors 7. Organizational Process Assets

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Business Documents Agreements Enterprise Environmental Factors Organizational Process Assets

Output 1. Project Charter 2. Assumptions Log

1. 2. 3. 4.

Stakeholder Register Change Requests Project Management Plan Updates Project Documents Updates

1. Project Management Plan

1. Scope Management Plan 2. Requirements Management Plan

1. Requirements Documentation 2. Requirements Traceability Matrix

112

PMP® Exam Preparation No

Inputs/outputs of 49 Project Management Processes (Continued)

Process

6

Define Scope

7

Create WBS

8

Plan Schedule Management

9

Define Activities

10

Sequence Activities

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Input 1. 2. 3. 4. 5. 1. 2. 3. 4. 1. 2. 3. 4. 1. 2. 3.

Project Charter Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents 4. Enterprise Environmental Factors 5. Organizational Process Assets Project Charter Project Management Plan Enterprise Environmental Factors Organizational Process Assets Project Management Plan Enterprise Environmental Factors Organizational Process Assets

1. 2. 3. 4.

Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

Output 1. Project Scope Statement 2. Project Documents Updates

1. Scope Baseline 2. Project Documents Updates

1. Schedule Management Plan

1. Activity List 2. Activity Attributes 3. Milestone List 4. Change Requests 5. Project Management Plan Updates 1. Project Schedule Network Diagram 2. Project Documents Updates

113

PMP® Exam Preparation No Inputs/outputs of 11 the 49 Project Management Processes

Process Estimate Activity Durations

Input

Output

1. 2. 3. 4.

Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. Duration Estimates 2. Basis of Estimates 3. Project Documents Updates

1. 2. 3. 4. 5.

Project Management Plan Project Documents Agreements Enterprise Environmental Factors Organizational Process Assets

13 Plan Cost Management 1. 2. 3. 4. 14 Estimate Costs 1. 2. 3. 4.

Project Charter Project Management Plan Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. Schedule Baseline 2. Project Schedule 3. Schedule Data 4. Project Calendars 5. Project Management Plan Updates 6. Project Documents Updates 1. Cost Management Plan

12 Develop Schedule

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1. Cost Estimates 2. Basis of Estimates 3. Project Documents Updates

114

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

15

Determine Budget

1. 2. 3. 4. 5. 6.

Project Management Plan Project Documents Business Documents Agreements Enterprise Environmental Factors Organizational Process Assets

1. Cost Baseline 2. Project Funding Requirements 3. Project Documents Updates

16

Plan Quality Management

1. 2. 3. 4. 5.

Project Charter Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. 2. 3. 4.

17

Plan Resource Management

1. 2. 3. 4. 5.

Project Charter Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. Resource Management Plan 2. Team Charter 3. Project Documents Updates

18

Estimate Activity Resources 1. Project Management Plan 2. Project Documents 3. Enterprise Environmental Factors 4. Organizational Process Assets

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1. 2. 3. 4.

Quality Management Plan Quality Metrics Project Management Plan Updates Project Documents Updates

Resource Requirements Basis of Estimates Resource Breakdown Structure Project Documents Updates

115

PMP® Exam Preparation Inputs/outputs of the 49 Project Management No Processes (Continued) 19

Process

Input

Output

Plan Communications Management

1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4.

1. Communication Management Plan 2. Project Management Plan Updates 3. Project Documents Updates

20

Plan Risk Management

21

Identify Risks

22

Perform Qualitative Risk Analysis

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Project Charter Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets Project Charter Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Agreements Procurement Documentation Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. Risk Management Plan

1. Risk Register 2. Risk Report 3. Project Documents Udates

1. Project Documents Updates

116

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes (Continued)

No 23

Process Perform Quantitative Risk Analysis

Input 1. Project Management Plan 2. Project Documents 3. Enterprise Environmental Factors 4. Organizational Process Assets

Output 1. Project Documents Updates

24

Plan Risk Responses

Plan Procurement Management

Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets Project Charter Business Documents Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

1. Change Requests 2. Project Management Plan Updates 3. Project Documents Updates

25

1. 2. 3. 4. 1. 2. 3. 4. 5. 6.

26

Plan Stakeholder Engagement

1. 2. 3. 4. 5. 6.

Project Charter Project Management Plan Project Documents Agreements Enterprise Environmental Factors Organizational Process Assets

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1. Procurement Management Plan 2. Procurement Strategy 3. Bid Documents 4. Procurement Statement of Work 5. Source Selection Criteria 6. Make-or-Buy Decisions 7. Independent Cost Estimates 8. Change Requests 9. Project Documents Updates 10. Organizational Process Assets Updates 1. Stakeholder Engagement Plan

117

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes (Continued)

N o

Process

Input

Output

27

Direct and Manage Project Work

1. 2. 3. 4. 5.

Project Management Plan Project Documents Approved Change Requests Enterprise Environmental Factors Organizational Process Assets

28

Manage Project Knowledge

29

Manage Quality

1. 2. 3. 4. 5. 1. 2. 3.

Project Management Plan Project Documents Deliverables Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Organizational Process Assets

1. 2. 3. 4. 5. 6. 7. 1. 2. 3.

30

Acquire Resources

1. 2. 3. 4.

Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

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Deliverables Work Performance Data Issue Log Change Requests Project Management Plan Updates Project Documents Updates Organizational Process Assets Updates Lessons Learned Register Project Management Plan Updates Organizational Process Assets Updates

1. Quality Reports 2. Test and Evaluation Documents 3. Change Requests 4. Project Management Plan Updates 5. Project Documents Updates Physical Resource Assignments Project Team Assignments Resource Calendars Change Requests Project Management Plan Updates Project Documents Updates Enterprise Environmental Factors Updates Organizational Process Assets Updates

118

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

31

Develop Team

1. 2. 3. 4.

Project Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets

32

Manage Team

33

Manage Communications

34

Implement Risk Responses

1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 1. 2. 3.

Project Management Plan Project Documents Work Performance Reports Team Performance Assessments Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Work Performance Reports Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Organizational Process Assets

1. Team Performance Assessments 2. Change Requests 3. Project Management Plan Updates 4. Project Documents Updates 5. Enterprise Environmental Factors Updates 6. Organizational Process Assets Updates 1. Change Requests 2. Project Management Plan Updates 3. Project Documents Updates 4. Enterprise Environmental Factors Updates

35

Conduct Procurements

1. 2. 3. 4. 5. 6.

Procurement Management Plan Project Documents Procurement Documents Seller Proposals Enterprise Environmental Factors Organizational Process Assets

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1. Project Communications 2. Project Management Plan Updates 3. Project Documents Updates 4. Organizational Process Assets Updates 1. Change Requests 2. Project Documents Updates

1. 2. 3. 4. 5. 6.

Selected Sellers Agreements Change Requests Project Management Plan Updates Project Documents Updates Organizational Process Assets Updates 119

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

36 Manage Stakeholder Engagement

1. 2. 3. 4.

1. Change Requests 2. Project Management Plan Updates 3. Project Documents Updates

37 Monitor and Control Project Work

1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4.

38 Perform Integrated Change Control

39 Validate Scope

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Procurement Management Plan Project Documents Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Work Performance Information Agreements Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Work Performance Reports Change Requests Enterprise Environmental Factors Organizational Process Assets Project Management Plan Project Documents Verified Deliverables Work Performance Data

1. 2. 3. 4.

Work Performance Reports Change Requests 3. Project Management Plan Updates 4. Project Documents Updates

1. 2. 3.

Approved Change Requests Project Management Plan Updates Project Documents Updates

1. 2. 3. 4.

Accepted Deliverables Work Performance Information Change Requests Project Documents Updates

120

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

40 Control Scope

1. 2. 3. 4.

Project Management Plan Project Documents Work Performance Data Organizational Process Assets

1. Work Performance Information 2. Change Requests 3. Project Management Plan Updates 4. Project Documents Updates

41 Control Schedule

1. 2. 3. 4.

Project Management Plan Project Documents Work Performance Data Organizational Process Assets

1. 2. 3. 4. 5.

Work Performance Information Schedule Forecasts Change Requests Project Management Plan Updates Project Documents Updates

42 Control Costs

1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7.

Project Management Plan Project Documents Project Funding Requirements Work Performance Information Organizational Process Assets Project Management Plan Project Documents Approved Change Requests Deliverables Work Performance Data Enterprise Environmental Factors Organizational Process Assets

1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6.

Work Performance Information Cost Forecasts Change Requests Project Management Plan Updates Project Documents Updates Quality Control Measurements Verified Deliverables Work Performance Information Change Requests Project Management Plan Updates Project Documents Updates

43 Control Quality

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121

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

44 Control Resources

1. 2. 3. 4. 5. 1. 2. 3. 4. 5.

Project Management Plan Project Documents Work Performance Data Agreements Organizational Process Assets Project Management Plan Project Documents Work Performance Data Enterprise Environmental Factors Organizational Process Assets

1. 2. 3. 4.

46 Monitor Risks

1. 2. 3. 4.

Project Management Plan Project Documents Work Performance Data Work Performance Reports

1. 2. 3. 4. 5.

Work Performance Information Change Requests Project Management Plan Updates Project Documents Updates Organizational Process Assets Updates

47 Control Procurements

1. 2. 3. 4. 5. 6. 7. 8.

Project Management Plan Project Documents Agreements Procurement Documentation Approved Change Requests Work Performance Data Enterprise Environmental Factors Organizational Process Assets

1. 2. 3. 4. 5. 6. 7.

Closed Procurements Work Performance Information Procurement Documentation Updates Change Requests Project Management Plan Updates Project Documents Updates Organizational Process Assets Updates

45 Monitor Communications

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Work Performance Information Change Requests Project Management Plan Updates Project Documents Updates

1. Work Performance Information 2. Change Requests 3. Project Management Plan Updates 4. Project Documents Updates

122

PMP® Exam Preparation Inputs/outputs of the 49 Project Management Processes

No Process

Input

Output

48 Monitor Stakeholder Engagement

1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7.

1. Work Performance Information 2. Change Requests 3. Project Management Plan Updates 4. Project Documents Updates

49 Close Project or Phase

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Project Management Plan Project Documents Work Performance Data Enterprise Environmental Factors Organizational Process Assets Project Charger Project Management Plan Accepted Deliverables Business Documents Agreements Procurement Documentation Organizational Process Assets

1. 2. 3. 4.

Project Documents Updates Final Product, Service or Result Transition Final Report Organizational Process Assets Updates

123

PMP® Exam Preparation Project Integration Management Processes Develop Project Charter - Developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to the project. Develop Project Management Plan - Defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan.

Direct and Manage Project Work - Leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives. Manage Project Knowledge – Using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. Monitor and Control Project Work - Tracking, reviewing, and reporting project progress against the performance objectives defined in the project management plan. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

124

PMP® Exam Preparation Project Integration Management Processes (cont.) Perform Integrated Change Control - Reviewing all change requests, approving changes and managing changes to deliverables, organizational process assets, project documents and the project management plan and communicating their disposition. Close Project or Phase - Finalizing all activities across all of the project management process groups to formally complete the project or phase.

Project Scope Management Processes Plan Scope Management - Creating a scope management plan that documents how the project scope will be defined, validated, and controlled. Collect Requirements - Determining, documenting, and managing stakeholder needs and requirements to meet project objectives. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

125

PMP® Exam Preparation Project Scope Management Processes (cont.) Define Scope - Developing a detailed description of the project and product. Create WBS - Subdividing project deliverables and project work into smaller, more manageable components Validate Scope - Formalizing acceptance of the completed project deliverables. Control Scope - Monitoring the status of the project and product scope and managing changes to the scope baseline.

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126

PMP® Exam Preparation Project Schedule Management Processes

Plan Schedule Management - Establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

Define Activities - Identifying and documenting the specific actions to be performed to produce the project deliverables. Sequence Activities - Identifying and documenting the relationships among the project activities. Estimate Activity Durations - Estimating the number of work periods needed to complete individual activities with estimated resources. Develop Schedule - Analyzing activity sequences, durations, resource requirements, and schedule constraints to create the schedule model. Control Schedule - Monitoring the status of the project to update project schedule and manage changes to the schedule baseline to achieve the plan. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

127

PMP® Exam Preparation Project Cost Management Processes Plan Cost Management – Defining how the project costs will be estimated, budgeted, managed, monitored and controlled. Estimate Costs - Developing an approximation of the monetary resources needed to complete project work. Determine Budget - Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline. Control Costs - Monitoring the status of the project to update the project costs and managing changes to the cost baseline.

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128

PMP® Exam Preparation Project Quality Management Processes Plan Quality Management - Identifying quality requirements and/or standards for the project and its deliverables and documenting how the project will demonstrate compliance with quality requirements and/or standards.

Perform Quality Assurance – Translating the quality management plan into executable quality activities that incorporate the organization’s quality policies into the project. Control Quality - Monitoring and recording results of executing the quality activities to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.

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129

PMP® Exam Preparation Project Resource Management Processes Plan Resource Management – Defining how to estimate, acquire, manage, and utilize physical and team resources. Estimate Activity Resources - Estimating team resources and the type and quantities of materials, equipment, or supplies required to perform project work. Acquire Resources – Obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work. Develop Team - Improving competencies, team member interaction, and overall team environment to enhance project performance. Manage Team - Tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance. Control Resources – Ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual use of resources, and performing corrective action as necessary. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

130

PMP® Exam Preparation Project Communications Management Processes Plan Communications Management - Developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements, and available organizational assets.

Manage Communications - Creating, collecting, distributing, storing, retrieving and the ultimate disposition of project information in accordance with the communications management plan. Monitor Communications – Ensuring the information needs of the project and its stakeholders are met.

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131

PMP® Exam Preparation Project Risk Management Processes Plan Risk Management - Defining how to conduct risk management activities for a project. Identify Risks – Identifying individual project risks as well as sources of overall project risk and documenting their characteristics. Perform Qualitative Risk Analysis - Prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. Perform Quantitative Risk Analysis - Numerically analyzing the effect of identified risks on overall project objectives. Plan Risk Responses - Developing options, selecting strategies, and agreeing on actions to enhance opportunities and reduce threats to project objectives. Implement Risk Responses – Implementing agreed-upon risk response plans. Monitor Risks - Implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

132

PMP® Exam Preparation Project Procurement Management Processes

Plan Procurement Management – Documenting project procurement decisions, specifying the approach, and identifying potential sellers. Conduct Procurements – Obtaining seller responses, selecting a seller, and awarding a contract.

Control Procurements – Managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.

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133

PMP® Exam Preparation Project Stakeholders Management Processes Identify Stakeholders - Identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success. Plan Stakeholder Engagement - Developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success. Manage Stakeholder Engagement - Communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

134

PMP® Exam Preparation Project Stakeholders Management Processes (cont.) Monitor Stakeholder Engagement - Monitoring overall project stakeholder relationships and tailoring strategies and plans for engaging stakeholders.

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135

PMP® Exam Preparation Organizational Influences on Project Management The organizational culture, style and structure influence how projects are performed. The term culture generally means “how we do things around here.” Process orientation - If the organization follows a good, scalable Project Management process you are likely to deliver consistently successful projects. Governance - The management function that concerns making sure people do what they’re supposed to do in accordance with the standards and guidelines. Training - appropriate training to project managers should result in a better project outcome. Roles and responsibilities - roles and responsibilities of every individual and work need to be defined. The sponsor, for instance, needs to perform a quality assurance role and be the project champion in his or her organization. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

136

PMP® Exam Preparation Organizational Influences on Project Management Organizational structure - the structure of the performing organization often constrains the availability of resources in a spectrum from functional to projectized, with a variety of matrix structures in between.

Organic or simple Functional Multi-divisional Matrix – Strong, weak, and balanced Project-oriented Virtual Hybrid

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137

Questions - MODULE 3

Project Management Processes

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138

PMP® Exam Preparation Questions Module 3 Question – 1 Which Process Group tracks the progress and performance of the project? A. Planning Process Group B. Executing Process Group C. Monitoring and Controlling Process Group D. Closing Process Group

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139

PMP® Exam Preparation Question – 2 Stakeholder Management is one of the most important works performed by a Project Manager. For identification of stakeholders, which of the following Process Groups and Knowledge Areas does “Identify Stakeholders” belong? A. B. C. D.

Initiating Process Group and Resource Management Knowledge Area Planning Process Group and Resource Management Knowledge Area Initiating Process Group and Stakeholder Management Knowledge Area Planning Process Group and Integration Management Knowledge Area

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140

PMP® Exam Preparation Question – 3 Which Knowledge Area has a process area defined in all of the Process Groups? A. Integration Management B. Schedule Management C. Cost Management D. Scope Management

Question – 4 Which one of the following is not a valid process area defined in the PMBOK® Guide - Sixth Edition? A. Monitor and Control Quality B. Monitor and Control Procurements C. Monitor and Control Project Work D. Both A and B PMP, PMBOK are registered marks of the Project Management Institute, Inc.

141

PMP® Exam Preparation Question – 5 The Risk Register will be the Output of which Process as defined in the PMBOK® Guide - Sixth Edition?

A. B. C. D.

Plan Risk Management Identify Risks Control Risks Develop Project Management Plan

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142

End of Module 3

Project Management Processes Based on the PMBOK® Guide - Sixth Edition

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143

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 145

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

146

MODULE 4 Project Integration Management Based on the PMBOK® Guide - Sixth Edition

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147

Learning Objectives - Project Integration Management In this module, we will cover: What is Project Integration Management? Role of project team Role of project sponsor Project selection methods Project charter and role of project manager in charter development Lessons learned for continuous improvement Core processes of the Project Integration Management Knowledge Area: Develop Project Charter Monitor and Control Project Work Develop Project Management Plan

Perform Integrated Change Control

Direct and Manage Project Work

Close Project or Phase

Manage Project Knowledge PMP, PMBOK are registered marks of the Project Management Institute, Inc.

148

PMP® Exam Preparation What is Project Integration Management? The process of ensuring that the various elements of a project are properly consolidated, coordinated and integrated to ensure the successful completion of the project. Project Integration Management includes: ▪ Initiating the project (Project Charter) ▪ Project Planning (Project Management Plan) ▪ Directing and Managing Project Work ▪ Managing Project Knowledge ▪ Monitoring and Controlling Project Work

▪ Performing Integrated Change Control, and ▪ Closing the Project or a Phase of a project PMP, PMBOK are registered marks of the Project Management Institute, Inc.

149

PMP® Exam Preparation The Role of the Project Team The key role of the project team is to concentrate on achieving the project’s objectives. The team consists of: The Project Manager The Project Management Team The individuals and groups who perform the work of the project to produce the project outcome Typical responsibilities include:

Project Communication Day-to-day management of the project Monitoring the project’s critical path PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Risk Management Change control Delivering the project’s products 150

PMP® Exam Preparation The Role of the Project Sponsor The sponsor is the project champion. This role includes maintaining support for the project by acting as project spokesperson to the higher-level management and spelling out the benefits of the project. Key responsibilities of the Project Sponsor are: Project advocate and visionary Final decision point for escalated issues Supports and directs the project manager and team Communicates project status to executive management Ensures the realization of the project’s benefits Controls the project budget Authorizes project baselines, etc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

151

PMP® Exam Preparation Project Selection Methods Project selection uses various techniques to select the most appropriate project(s) amongst the available alternatives. The techniques can be grouped into two major categories: Benefit Measurement (comparative approach)

Scoring Models Cost-benefit analysis Economic Models

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Constrained Optimization (mathematical approach) Linear and non-linear programming Integer programming & dynamic programming Multi-objective programming

152

PMP® Exam Preparation Scoring Models Evaluates projects by using a set of criteria with a weight or score assigned to each criterion in accordance with managerial policy. Different weights can be assigned to different criteria to represent the varied degree of importance given to various criteria. All projects are evaluated against this set of criteria and the project with the maximum score is selected. Both objective and subjective criteria can be included, such as financial data, organizational expertise, market value, innovation and those which fit with the corporate culture.

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153

PMP® Exam Preparation Cost Benefit Analysis A process of determining the pros and cons of any process, product or activity. Based on comparing the projected cost and income (benefit). Can be used as the basis for comparing alternative competing projects or implementation methods. This method favors projects that create quantifiable benefits as the long-term benefits of projects that might not be tangible at the current time, such as innovation and strategic values.

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154

PMP® Exam Preparation Cost Benefit Analysis Benefit Cost Ratio (BCR) can be calculated as Benefit ÷ Cost

For the benefit to exceed cost, the BCR must be greater than 1. The greater the BCR is, the more attractive the project and the project with the highest BCR will be selected. Example: If the projected costs and benefits of two projects are: Project A with a cost of $10,000, generating an expected income of $60,000. The BCR is equal to $60,000 ÷ $10,000 = 6. Project B with a cost of $20,000, generating an estimated income of $100,000. The BCR is equal to $100,000 ÷ $20,000 = 5. Using BCR, project A will be chosen over project B PMP, PMBOK are registered marks of the Project Management Institute, Inc.

155

PMP® Exam Preparation Economic Models Economic models are used to estimate the economic efficiency of a project. It involves a set of calculations to provide overall financial data about the project and projects that offer the best monetary benefits to the company and therefore would be prioritized. The common terms involved in economic models are explained in the following list. Cash flow - Refers to both the money coming in and the money going out of an organization. Two common methods are NPV (Net Present Value) and IRR (Internal Rate of Return).

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156

PMP® Exam Preparation Present Value (PV) and Net Present Value (NPV) To understand these two concepts, understand that one dollar today can buy you more than what one dollar can buy next year (because of inflation). Net Present Value is the sum of all the cash flows of the project (including both costs and benefits), each adjusted to today’s value ( = Present Value) according to estimated future inflation. Alternative Projects can be compared using the NPV, even if they are not expected to be completed during the same time frame and benefits are reaped over different periods of time.

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157

PMP® Exam Preparation Internal Return Rate (IRR) Another way of estimating the potential benefit of a project

The cost of the project is viewed as the capital investment and the profit is translated into the interest rate over the life of that investment. IRR is the rate of interest used in the NPV calculation which makes the NPV = 0.

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158

PMP® Exam Preparation Constrained Optimization Methods Constrained optimization methods are concerned with predicting the success of the project. These methods are based on complex mathematical models that use formulae and algorithms to predict the success. These models use the following kinds of algorithms: Linear

Nonlinear Dynamic Integer Multiple objective programming

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159

PMP® Exam Preparation Expert Judgment Expert judgment is one of the techniques used in project management to accomplish various tasks, including project selection. It refers to making a decision by relying on expert advice from one or more of the following sources: 

Senior management



An appropriate unit within the organization



The project stakeholders, including customers and sponsors



Consultants



Professional and technical associations



Industry groups



Subject matter experts from within or outside of the performing organization



Project management office (PMO)

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160

PMP® Exam Preparation Processes in the Project Integration Management Knowledge Are: Develop Project Charter Develop Project Management Plan Direct and Manage Project Work Manage Project Knowledge Monitor and Control Project Work Perform Integrated Change Control Close Project or Phase

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161

PMP® Exam Preparation Develop Project Charter

Initiating

Project Integration Management

The project charter formally authorizes the project and defines the responsibility and authority of the project manager. Inputs to develop the Project Charter: Business Documents – Business case and Benefits management plan. Agreements – defines initial intention of the project and can be in the form of a contract, Memorandum of Understanding (MoU), Service Level Agreement (SLA), etc. A contract is for an external customer. Enterprise Environmental Factors - culture and structure, infrastructure, existing human resources, marketplace & its conditions etc. Organizational Process Assets - the organization's policies, guidelines, procedures, plans, approaches, or standards for conducting work, including project work. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

162

PMP® Exam Preparation Develop Project Charter (continued) Business Case - documents information required from a business standpoint to determine whether or not the project is worth the required investment. It is usually created by a business analyst using various stakeholder inputs. Business case will contain business need, business benefits, justification, participating stakeholders, project overview (containing description, goals and objectives, assumptions, constraints, and major project milestones), strategic alignment, costbenefit analysis, alternative analysis and also recommendation. The project sponsor agrees to the scope and limitations of business case. The project manager is responsible for ensuring that the project meets the goals of the organization and broad stakeholder requirements as defined in the business case. In a multiphase project, the business case is periodically reviewed to ensure that the project is on track to deliver the intended business benefits. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

163

PMP® Exam Preparation Develop Project Charter (continued) Business Case may include the following :

Business needs Analysis of the situation Recommendation Evaluation

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164

PMP® Exam Preparation Develop Project Charter (continued) Benefits Management Plan – is a document that describes how and when the benefits of the project will be delivered, and describes the mechanisms that should be in place to measure those benefits. The plan may include : Target benefits Strategic alignment Timeframe for realizing benefits Benefits owner Metrics Assumptions Risks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

165

PMP® Exam Preparation Develop Project Charter The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. Inputs

Tools & Techniques

Outputs

Business Documents

Expert Judgement

Project Charter

Business Case

Data gathering Agreements

Brainstorming Focus Groups Interviews

Assumption Log

Interpersonal and team skills

Enterprise Environmental Factors

Conflict Management Facilitation Meeting Management

Organizational Process Assets

Meetings

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166

PMP® Exam Preparation Elements of Project Charter Project charter documents the business needs, and the new product, service or result that will be created by the project. The various elements of a project charter are: Project purpose and justification Measurable project objectives and related success criteria High-level requirements High-level project descriptions and boundaries Overall project risk Summary milestone schedule Preapproved financial resources PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Key stakeholder list Project approval requirements (what constitutes project, who decides project is successful, and who signs off on the project) Project exit criteria Assigned project manager, responsibility, and authority level Name and authority of the sponsor or other person(s) authorizing the project charter 167

PMP® Exam Preparation Role of Project Manager in Project Charter Development Project charter is issued by the project sponsor or project initiator or customer. The project manager participates in the development of the project charter, but not solely responsible for creating it. Project manager is more of a contributor in the development of the charter. Project manager handles team members and stakeholders about its content for common understanding on key deliverables, milestones and their roles and responsibilities The sponsor or customer approves the project charter. The project manager communicates on the approval of the project charter to stakeholders. Project charter provides the authority to the project manager to assign organization resources to project activities. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

168

PMP® Exam Preparation Develop Project Management Plan

Planning

Project Integration Management

The Project Management Plan is the key document that contains the overall planning, monitoring, and implementing activities to be done on a project. Inputs to develop the Project Management Plan Project Charter, including business needs and project objectives

Outputs from planning processes regarding cost, scope, schedule, quality, risk, procurement and resources. Enterprise Environmental Factors i.e. company culture Organizational Process Assets i.e. procurement procedures

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169

PMP® Exam Preparation Develop Project Management Plan The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan. Inputs

Tool & Techniques

Outputs

Project Charter

Expert Judgment

Project Management Plan

Outputs from other Processes

Data Gathering Brainstorming Checklist Focus Groups Interviews

Interpersonal and Team Skills Enterprise Environmental Factors

Conflict Management Facilitation Meeting Management

Meetings Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

170

PMP® Exam Preparation Project Management Plan The Project Management Plan is the document that describes how the project will be executed, monitored and controlled, and closed. It integrates and consolidates all of the subsidiary management plans and baselines, and other information necessary to manage the project Subsidiary Plans • • • • • • • • • •

Scope Management Plan Requirements Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Resource Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Stakeholder Management Plan

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Baselines • • •

Scope Baseline Schedule Baseline Cost Baseline

Additional Components • • • • • •

Change Management Plan Configuration Management Plan Performance Measurement Baseline Project Lifecycle Development Approach Management Reviews

171

PMP® Exam Preparation Direct and Manage Project Work

Executing

Project Integration Management

Direct and Manage Project Execution is the process that comprises all the work needed to deliver the project’s deliverables as defined in the Scope Baseline consisting of the Scope Statement, WBS and WBS Dictionary. Project Deliverables: The primary Output which is any unique and verifiable product, result or capability to perform a service

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172

PMP® Exam Preparation Direct and Manage Project Work Change Requests are one of the Outputs of this process. There are four types of changes that can be requested: Corrective action: This is the documented direction for executing the project work to bring expected future performance in line with the Project Management Plan. Preventive action: Documented direction to perform an activity that can reduce the probability of negative Outputs. Defect repair: Formally documented identification of a defect in the project with a recommendation for repairing or replacing the component.

Updates: Changes to formally controlled documentation PMP, PMBOK are registered marks of the Project Management Institute, Inc.

173

PMP® Exam Preparation 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. Inputs

Tools & Techniques

Outputs

Project Management Plan Any component

Expert Judgment

Deliverables

Project Documents Change log Lessons learned register Milestone list Project communications Project schedule Requirements traceability matrix Risk register Risk report

Approved Change Requests Enterprise Environmental Factors Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Work Performance Data Issue Log Project Management Information System

Change Requests Project Management Plan Updates Any component

Meetings

Project Document Updates Activity list Assumption log Lessons learned register Requirements documentation Risk register Stakeholder register Organizational Process Assets Updates 174

PMP® Exam Preparation Manage Project Knowledge

Executing

Project Integration Management

Manage Project Knowledge is the process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning. Key benefits : • Prior organizational knowledge is leveraged to produce or improve project outcomes • Knowledge created is available for supporting organizational operations and future projects and phases Lessons Learned Register: Is the key output from this process. It is used to record challenges, problems, realized risks and opportunities or other aspects as appropriate.

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175

PMP® Exam Preparation Lesson Learned for Continuous Improvement In the earlier paradigm, focus on lesson learned: During the initiation of the project when historical information and lessons learned from previous projects can be applied to the current project Analysis of current project during closing – both contract and administrative closure In the new paradigm, lesson learned is emphasized during the entire project life cycle. Advantages of utilizing lessons learned for continuous improvement: Gets information from all the team members throughout the life of the project, rather than at the end, where few members might be available Enables effective knowledge transfer and knowledge management Lessons learned plays a crucial role, especially projects with adaptive life cycles When planning for project communications and stakeholder management, lessonslearned information can be used whenever possible, e.g., a key stakeholder wants status reports to be delivered personally instead of emailing it Minimizes the possibility of team members repeating the same mistakes PMP, PMBOK are registered marks of the Project Management Institute, Inc.

176

PMP® Exam Preparation Manage Project Knowledge From an organizational perspective, knowledge management is about making sure the skills, experiences, and expertise of the project team and other stakeholders are used before, during, and after the project. Inputs

Tools & Techniques

Outputs

Project Management Plan All Components

Expert Judgment

Lessons Learned Register

Knowledge Management

Project Management Plan updates Any Components

Information Management

Organizational Process Assets Updates

Project Documents Lessons learned register Project team assignments Resource breakdown structure Stakeholder register Deliverables Enterprise Environmental Factors Organizational Process Assets

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Interpersonal and Team Skills Active Listening Facilitation Leadership Networking Political Awareness

177

PMP® Exam Preparation Monitoring & Controlling

Project Integration Management

Monitor and Control Project Work This process involves collecting, tracking, reviewing and reporting the performance objectives defined in the project management plan. Inputs to monitor and control project work are: The results of the Monitoring & Control process are: Project Management Plan

Change Requests:

Work Performance Information

recommended changes to the project as

Schedule and Cost Forecasts

well as

Validated Changes

recommended corrective and preventive

Enterprise Environmental Factors

actions.

Organization Process Assets

Work Performance Reports Project Management Plan updates Project Document updates

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178

PMP® Exam Preparation Monitor and Control Project Work

Inputs

Tools & Techniques

Outputs

Project Management Plan

Expert Judgment

Work Performance Reports

Any Component

The process of tracking, reviewing and reporting the progress to meet the performance objectives defined in the Project management plan.

Project Documents Assumption Log Issue Log Cost Forecasts Schedule Forecasts Lessons Learned Register Risk Register Risk Report Quality Report

Work Performance Information Agreements

Data Analysis Alternatives Analysis Cost Benefits Analysis Earned Value Analysis Root Cause Analysis Trend Analysis Variance Analysis

Decision Making Voting Meetings

Change Requests

Project Management Plan Updates Any Components

Project Document Updates

Enterprise Environmental Factors

Organizational Process Assets

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179

PMP® Exam Preparation Perform Integrated Change Control

Monitoring & Controlling

Project Integration Management

The objective of this process is to ensure that only approved changes are incorporated into a revised baseline and implemented in the project. It is achieved through reviewing all change requests, approving and managing changes to the: Deliverables Organizational Process Assets Project Documents The Project Management Plan

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180

PMP® Exam Preparation Perform Integrated Change Control During integrated change control the following actions are performed: Reviewing of all change requests Approving changes Managing changes Inputs to perform integrated change control are: Project Management Plan Project Documents Work Performance Reports Change Requests

Enterprise Environmental Factors Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

181

PMP® Exam Preparation Perform Integrated Change Control The process of reviewing all change requests, approving changes and managing changes to deliverables, organizational process assets, project documents and the project management plan; and communicating the decisions. Inputs Project Management Plan Change Management Plan Configuration Management Plan Scope Baseline Schedule Baseline Cost Baseline

Project Documents Basis of Estimates Requirements Traceability Matrix Risk Report

Tools & Techniques

Outputs

Expert Judgment

Approved Change Requests

Change Control Tools

Project Management Plan Updates

Data Analysis

Project Documents Updates

Alternatives Analysis Cost-benefit Analysis

Any Component

Change Log

Work Performance Reports Change Requests Enterprise Environmental Factors Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Decision Making Voting Autocratic Decision Making Multicriteria Decision Analysis

Meetings 182

PMP® Exam Preparation Change Management Plan Change management plan informs the definitions of various changes related to project objectives, and how changes will be implemented, monitored and controlled. Change management plan is created in “Develop Project Management” process and is a subsidiary plan of project management plan. Roles, responsibilities, and authority of the change control board (CCB) are clearly defined and agreed upon by stakeholders and documented in the change management plan. The CCB is responsible for reviewing, evaluating, approving, delaying or rejecting changes to the project. The CCB conducts its activities under “Perform Integrated Change Control” process. The change control process – submittal, tracking, review and disposition – is defined in the change management plan Changes should be managed in accordance with change management plan to ensure that project goals remain aligned with business needs. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

183

PMP® Exam Preparation Close Project or Phase

Closing

Project Integration Management

Project closure involves:

Handing over the deliverables to the customer Passing the documentation to the business Closing / Cancelling supplier contracts Releasing staff and equipment

Finalizing lessons learned and Informing stakeholders of the closure of the project.

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PMP® Exam Preparation Close Project or Phase The process of finalizing all the activities for the project, phase, or contract. Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Project Documents Updates

Project Management Plan

Lessons Learned Register

Final Product, Service, or Result Transition

All Components

Project Documents

Data Analysis

Assumption log, Basis of estimates Change log, Issue log, Lessons learned register Milestone list, Project communications Quality control measurements, Quality reports Requirements documentation, Risk register, Risk report

Document Analysis Regression Analysis Trend Analysis Variance Analysis

Accepted Deliverables

Meetings

Final Report

Organizational Process Assets Updates

Business Documents Business case Benefits management plan

Agreements

Procurement Documentation Organizational Process Assets

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PMP® Exam Preparation Project Integration Management Tailoring: Every project is unique and hence the project management team should look for the need to tailor the way Project Integration Management processes are applied. The various aspects that may be considered are : Project life cycle Development life cycle Management approaches Knowledge management Change Governance Lessons learned Benefits PMP, PMBOK are registered marks of the Project Management Institute, Inc.

186

Questions - MODULE 4

Project Integration Management

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187

PMP® Exam Preparation Questions Module 4 Question – 1 Which one of the following best describes the main purpose of the Project Charter? A. It identifies the sponsor and describes his or her role in the project B. It identifies the list of important stakeholders in the project C. It describes the initial scope of the project work D. It authorizes the project manager to work on the project Question – 2 Which of the following does not define a Project Life Cycle? A. Concept, Planning, Execution, Finishing B. Initiation, Planning, Implementation, Termination C. Concept, Development, Implementation, Close-out D. Initiation, Planning, Execution, Operation, Termination PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 3 Which one of the following is not a mathematical approach in project selection? A. Using linear algorithms B. Using dynamic algorithms C. Using economic models D. Using multiple objective programming Question – 4 The person responsible for approving the changes to the baseline in the Project Management Plan is: A. Project Sponsor B. Project Manager C. Program Manager D. Portfolio Manager PMP, PMBOK are registered marks of the Project Management Institute, Inc.

189

PMP® Exam Preparation Question – 5 Change Requests can act as inputs and outputs to which of the following process pairs? A. Develop Project Management Plan & Monitor and Control Project Work B. Perform Integrated Change Control & Direct and Manage Project Work . C. Monitor and Control Project Work & Close Project or Phase D. Develop Project Management Plan & Develop Project Charter Question – 6 A Project Management Plan is a combination of the following documents with the exception of: A. Schedule Management Plan B. Cost Management Plan C. Risk Management Plan D. Issue Log PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 7 Who issues the project charter? A. Project Manager B. Program Sponsor C. Project Sponsor D. Project Governance Board Question – 8 Lesson learned for a project happens: A. At the beginning of the project B. At the end of the project or a phase C. During project transition planning and operationalization D. Throughout the life cycle of the project PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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End of Module 4

Project Integration Management Based on the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation Course Book PMP is a registered mark of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP is a registered mark of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 194

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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MODULE 5 Project Scope Management Based on the PMBOK® Guide - Sixth Edition

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Learning Objectives - Project Scope Management In this module, we will cover: What is Project Scope Management? Product Scope vs. Project Scope Plan Scope Management Collect Requirements Define Scope Create WBS Validate Scope Control Scope

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PMP® Exam Preparation Project Scope Management Project Scope Management, according to the PMBOK® Guide - Sixth Edition, is “the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.” The Project Scope Management Knowledge Area consists of six processes: Plan Scope Management - Creating a Scope Management Plan

Collect Requirements - obtaining stakeholder’s needs Define Scope - in the Project Scope Statement Create WBS - decomposing scope into work packages Validate Scope - user acceptance and sign-off Control Scope - Integrated Change Control of the Scope Baseline PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Scope Management Scope Management may be characterized as the function of developing and managing the project's scope: From given goals and objectives Through development and explicit definition Through execution or production To satisfactory product delivery

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PMP® Exam Preparation Product Scope vs Project Scope Product Scope - is the set of functions and features that characterize a product, service, or result to be delivered by the project. Project Scope - is the work required to deliver the product scope. The major goal of Scope Management is to ensure that all the required work and only the required work is included and performed in the project. This goal is accomplished by the following processes:

Plan Scope Management

Collect Requirements

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Define Scope

Create WBS

Validate Scope

Control Scope

200

PMP® Exam Preparation Planning

Plan Scope Management

Project Scope Management

The process of creating a Scope Management Plan that documents how the project and product scope is defined, validated and controlled – provides guidance and direction on how scope will be managed throughout the project life cycle. Inputs Project Charter Project Management Plan Enterprise Environmental Factors

Tools & Techniques Expert Judgement Data Analysis Alternative Analysis

Outputs Scope Management Plan Requirements Management Plan

Meetings

Organizational Process Assets

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PMP® Exam Preparation Collect Requirements

Planning

Project Scope Management

Collect Requirements is the process of determining, documenting, and managing stakeholder needs to meet objectives. Requirements include the quantified and documented needs and expectations of the sponsor, customer, and other stakeholders and can be categorized into: Project Requirements (business requirements, project management requirements, delivery requirements, etc.) Product Requirements (information on technical requirements, security requirements, performance requirements etc.)

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PMP® Exam Preparation Collect Requirements

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Requirements Documentation

Data Gathering

Process of determining, documenting, and managing stakeholder’s needs and requirements to meet project objectives.

Project Management Plan Scope Management Plan Requirements Management Plan Stakeholder Engagement Plan

Project Documents Assumption Log Lessons Learned Register Stakeholder Register

Business Documents Business Case

Brainstorming Focus Groups Interviews Questionnaires/Surveys Benchmarking

Requirements Traceability Matrix

Data Analysis Document Analysis

Decision Making Voting Autocratic Decision Making Multi-criteria Decision Analysis

Data Representation Agreements

Affinity Diagram Mind Mapping

Interpersonal and Team Skills Enterprise Environmental Factors

Nominal Group Technique Facilitation Observation/Conversation

Organizational Process Assets

Context Diagram Prototypes

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PMP® Exam Preparation Planning

Define Scope

Project Scope Management

The Process of developing a detailed description of the project and product. This process describes the project, service, or result boundaries and acceptance criteria. Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Project Scope Statement

Project Management Plan Scope Management Plan

Project Documents Assumption Log Requirements Documentation Risk Register Enterprise Environmental Factors Organizational Process Assets

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Data Analysis Alternatives Analysis

Project Documents Updates Assumption Log Requirements Documentation Requirements Traceability Matrix Stakeholder Register

Decision Making Multi-criteria Decision Making

Interpersonal and Team Skills Facilitation Product Analysis

204

PMP® Exam Preparation Create WBS

Planning

Project Scope Management

The Work Breakdown Structure (WBS) as defined by the PMBOK® Guide - Sixth Edition is “a hierarchical decomposition of the total scope of work to be carried by the project team to accomplish the project objectives and create the required deliverables.“ The lowest level of the WBS is referred to as a work package. For every work package a WBS Dictionary is compiled.

The Scope Baseline consists of the approved detailed Project Scope Statement, WBS and WBS Dictionary.

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PMP® Exam Preparation WBS Dictionary The WBS dictionary may typically include: Code of account identifier Description of work Assumptions and constraints Responsible organization Schedule milestones Resources required Cost estimates Quality requirements

Acceptance criteria, etc. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Create WBS The process of sub-dividing project deliverables and project work into smaller, more manageable components. Inputs

Tools & Techniques

Project Management Plan

Expert Judgement

Scope Management Plan

Project Documents Project Scope Statement Requirements Documentation

Decomposition

Outputs Scope Baseline Project Documents Updates Assumption Log Requirements Documentation

Enterprise Environmental Factors

Organizational Process Assets

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PMP® Exam Preparation WBS Example

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PMP® Exam Preparation Monitoring & Controlling It is the process of formalizing acceptance of the completed project deliverables.

Validate Scope

Project Scope Management

It includes reviewing deliverables to ensure that they are completed as expected and obtaining formal acceptance of the deliverables by the customer. Inputs

Tools & Techniques

Outputs

Inspection

Accepted Deliverables

Project Management Plan Scope Management Plan Requirements Management Plan Scope Baseline

Project Documents Lessons Learned Register Quality Reports Requirements Documentation Requirements Traceability Matrix

Decision Making Voting

Work Performance Information

Verified Deliverables

Change Requests

Work Performance Data

Project Documents Updates Lessons Learned Register Requirements Documentation Requirements Traceability Matrix

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PMP® Exam Preparation Monitoring & Controlling

Control Scope Scope Control includes: • Monitoring the status of the Project and Product Scope • Managing changes to the Scope Baseline.

• Focusing on the Project Management aspects for

Inputs

Tools & Techniques

Outputs

Project Management Plan

Scope Management Plan Requirements Management Plan Change Management Plan Configuration Management Plan Scope Baseline Project Documents Lessons Learned Register Requirements Documentation Requirements Traceability Matrix

Data Analysis Variance Analysis Trend Analysis

Work Performance Information

Change Requests

Project Management Plan Updates

Work Performance Data

Scope Management Plan Scope Baseline Schedule Baseline Cost Baseline Performance Measurement Baseline

Organizational Process Assets

Project Documents Updates Lessons Learned Register Requirements Documentation Requirements Traceability Matrix

delivering the product/service.

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Project Scope Management

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PMP® Exam Preparation Project Scope Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Scope Management processes are applied. The various aspects that may be considered are : Knowledge and requirements management Validation and control Development approach Stability of requirements Governance

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Questions - MODULE 5

Project Scope Management

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PMP® Exam Preparation Questions Module 5 Question – 1 Which one of the following best describes the Scope Baseline for a project? A. WBS, WBS Dictionary and Project Management Plan B. WBS Dictionary, WBS and Requirements Management Plan C. WBS, WBS Dictionary and Scope Statement . D. WBS, WBS Dictionary and Requirements Documentation Question – 2 According to the PMBOK® Guide - Sixth Edition, the Project Scope Statement is an Output of which project management process? C. Collect Scope A. Define Scope D. Validate Scope B. Plan Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 3 Your project team is executing the work packages for your project when a serious disagreement regarding the interpretation of the scope is brought to your notice by two senior technical members. How should the dispute be resolved? A. Project team should decide on the resolution B. Dispute should be resolved in favour of the customer C. Dispute should be resolved in favour of senior management D. Project Manager should consult the project charter for guidance

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PMP® Exam Preparation Question – 4 The most important part of validating Project Scope is: A. Gaining formal acceptance of the deliverables from the customer B. Checking scope of the project against stakeholder expectations C. Verifying that the project is performed on time & within budget D. Verifying that the project met the quality specification

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PMP® Exam Preparation Question – 5 You recently joined as a project manager for a construction project. Construction for the project has already been started, but you found that no WBS is available. Which will be your best course of action? A. Stop construction on the project until the WBS is created B. Refuse to manage the project C. Consult the senior management team & consult on the oversight on the WBS D. Check the historical information on the project Question – 6 The lowest level in a Work Breakdown Structure is known as: C. Deliverable A. Control Account D. Work Package B. Activity PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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End of Module 5

Project Scope Management Based on the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation Course Book PMP is a registered mark of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 219

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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MODULE 6 Project Schedule Management Based on the PMBOK® Guide - Sixth Edition

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221

Learning Objectives - Project Schedule Management In this module, we will cover: What is Project Schedule Management? What is Project Schedule? Gantt Charts Network Diagram Estimation Schedule Network Analysis Techniques PERT, PERT Analysis, Critical Path Method and Schedule Compression Project Schedule Management Knowledge Area Processes Estimate Activity Durations Plan Schedule Management Develop Schedule Define Activities Control Schedule Sequence Activities PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Project Schedule Management In simple words the Project Schedule Management processes describe how to monitor and control time spent within a project. Every resource on the project needs to know what to do and when. Without an agreed and realistic schedule, time may be wasted waiting for predecessor tasks to complete or tasks may be done out of sequence, leading to rework and additional costs. Using the Schedule Management processes, the amount of time being spent by the project team can be controlled, which will increase the chances of delivering the project on time and as scheduled.

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PMP® Exam Preparation Project Schedule A Project Schedule is the agreed upon start dates, durations and end dates of the project tasks sequenced in a logical order. This is done by analyzing activity sequences, durations, resource requirements, and schedule constraints. The Baseline Schedule is the finalized and approved version that will be used to control the project schedule. The Schedule Management Plan contains details like, how to go about planning the project schedule and how to effectively manage and control the project to the schedule baseline.

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PMP® Exam Preparation Project Schedule Project schedules support the following: They provide a basis to monitor and control project activities. They help with determining how best to allocate resources to achieve the project goals. They help with assessing how time delays will impact the project. They enable the identification of where excess resources are available for re-allocation to other tasks or projects. They provide a basis for tracking project progress.

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PMP® Exam Preparation Gantt Chart It provides a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project. It illustrates the start and finish dates of the elements of a project. It is constructed with a horizontal axis representing the total time span of the project, broken down into increments (for example, days, weeks, or months) and a vertical axis representing the tasks that make up the project.

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PMP® Exam Preparation Project Schedule Network Diagram A visual representation technique that depicts the activities involved in a project and the logical relationships (dependencies) among them. Precedence diagramming method (PDM) may use an activity-on-node (AON) schedule network diagramming technique, where the boxes (nodes) represent the activities and the arrows represent the logical relationships.

Activity 2 Start

Activity 1

Activity 4

End

Activity 3

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227

PMP® Exam Preparation Schedule Network Dependencies There are four types of dependencies:

Finish-Start The successor activity (B) cannot start before the predecessor activity (A) has ended e.g. you cannot cook a stew before gathering all the ingredients. Start-Start The successor activity (B) cannot start before the predecessor activity (A) has started e.g. project management can only start on the project once the project has started. Finish-Finish The successor activity (B) cannot finish before the predecessor activity (A) has finished e.g. project management can only stop once the last activity on the project is completed. Start-Finish The predecessor (A) can not start until the successor (B) has finished. This type is seldom used. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Estimation Estimation is a quantitative assessment of the likely amount or outcome. It should always include some indication of accuracy (e.g., plus/minus a certain percentage). Types of estimation techniques include: Analogous An estimate done using the values of parameters from previous experiences with similar activities. Parametric Uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters e.g. multiplying the planned work to be performed by the historical cost per work unit to obtain an estimated cost value.

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PMP® Exam Preparation Estimation (Continued) Bottom-up Estimating based on individual work packages of the WBS and rolled-up to get the total estimate for the project. This estimate is normally the most accurate because it is based on estimating at detail level. Heuristics A heuristic estimate means rule of thumb i.e. the 80/20 quality rule that suggests that 80 percent of quality problems are caused by 20 percent of problem sources. (Experience-based technique) 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 or budget for a project.

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PMP® Exam Preparation Single & Three Point Estimation Single Estimate Only one estimate per activity is provided i.e. the person doing the estimate says that the activity would take 2 weeks. Three-point Estimates PERT (Program Evaluation Review Technique) uses a three-point estimating technique, with weighted averages of optimistic, pessimistic and most likely estimates. The most likely estimate is weighted most heavily. The equation is: E = PERT estimate (time or cost) ML = Most Likely estimate PMP, PMBOK are registered marks of the Project Management Institute, Inc.

O = Optimistic estimate P = Pessimistic estimate 231

PMP® Exam Preparation Single & Three Point Estimation (Continued) Example: It is estimated that an activity would at best be completed within 5 days, at worst within 15 days, but most of the time should be completed within 7 days: PERT duration estimate E = (5 + (4 X 7) + 15) / 6 = 48 / 6 = 8 days

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PMP® Exam Preparation Schedule Network Analysis Techniques Schedule network analysis techniques are used to produce the project schedule.

Examples of these techniques are: Scenario analysis technique, investigating questions such as “what if a particular aspect is changed on the project, would that produce a shorter schedule?”. The aim is to produce a more realistic schedule. Monte Carlo analysis is a computer based technique to simulate the outcome of a project. The risks and other sources of uncertainty are used to calculate possible schedule outcomes for the total project.

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PMP® Exam Preparation Schedule Network Analysis Techniques (Continued) Resource levelling is used to produce a resource limited schedule and results in more realistic resource assignments. Resource Smoothing is a technique that adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predefined limits.

Both resource levelling and resource smoothing are known as Resource Optimization techniques Critical chain method is a technique to develop the project schedule that takes both the activity and resource dependencies into account.

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PMP® Exam Preparation Critical Path Method The critical path determines the shortest time within which the project can be completed and it is the longest duration path through a network of tasks. Critical tasks (activities) are tasks or activities on the critical path. Float or slack time is the amount of time a task can slip before it delays the project schedule. There are two common types of floats. Free float is the time a single task can be delayed without delaying the early start of the successor task. Total float is the time a single task can be delayed without delaying project completion. Float is defined as: float = LS - ES or LF - EF Activity duration is defined as: EF - ES or LF - LS Where LS = Late Start, ES = Early Start, LF = Late Finish, EF = Early Finish Critical path has zero or negative total float. A project can have several critical paths. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Critical Path Example

S

A 1w B 2w C 3w

D 4w E 5w F 4w G 6w

H 6w J 3w

F

I 2w

Critical path is determined by doing a: Forward pass (calculate ES and EF) Backward pass (calculate LS and LF) Calculating float Determining the critical path PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Critical Path Example

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PMP® Exam Preparation Schedule Compression Schedule compression is the shortening of the project schedule without affecting the project scope.

Two ways of creating schedule compression are: Fast Tracking Crashing

Fast Tracking is the process of compressing the total project duration by performing some activities concurrently that were originally scheduled sequentially. Crashing analyses cost and schedule trade-offs to determine how to obtain the greatest amount of schedule compression for the least incremental cost.

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PMP® Exam Preparation Schedule Compression Example

Based on the above information we can decide to crash the activity ‘YY’ as it has the least cost impact for the most schedule compression. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation PERT Analysis Steps Calculate per activity the estimated durations using ✓ PERT [E = (O + 4 x ML + P) / 6] and ✓ Standard deviation [σ = (P - O) / 6] Draw the project schedule network, analyze the paths through the network and find the critical path. Determine the length of the critical path based on the PERT duration estimates. Calculate the standard deviation of the critical path with the formula √(σtask 1) ² + (σtask 2) ² + (σtask 3) ² + …… Probability predictions can now be made using this information. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation PERT Example

If W,X,Y and Z are the only activities in a project and all are on the critical path, what is the project duration? The answer is 172 with a standard deviation of 10.19. The probability of completing the project between: 161.81 and 182.19 days is 68.27% (one sigma) 151.63 and 192.37 days is 95.45% (two sigma) 141.44 and 202.56 days is 99.73% (three sigma) PMP, PMBOK are registered marks of the Project Management Institute, Inc.

241

PMP® Exam Preparation Planning

Plan Schedule Management

Project Schedule Management

The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule. Gives guidance and direction on how the project schedule should be managed throughout the project lifecycle. Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Schedule Management Plan

Project Management Plan

Data Analysis

Scope Management Plan Development Approach

Enterprise Environmental Factors

Alternative Analysis

Meetings

Organizational Process Assets

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242

PMP® Exam Preparation Planning

Define Activities

Project Schedule Management

Activity definition is the process of identifying the specific actions to be performed to produce the project deliverables. Inputs

Tools & Techniques

Project Management Plan

Expert Judgement

Schedule Management Plan Scope Baseline

Enterprise Environmental Factors Organizational Process Assets

Decomposition Rolling Wave Planning

Meetings

Outputs

Activity List

Activity Attributes Milestone List

Change Requests Project Management Plan Updates Schedule Baseline Cost Baseline

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PMP® Exam Preparation Sequence Activities Sequencing activities is where activities are put in order of when they should be performed by defining the relationships between them.

Planning

Inputs

Tools & Techniques

Outputs

Project Management Plan

Precedence Diagramming Method (PDM)

Project Schedule Network Diagrams

Schedule Management Plan Scope Baseline

Project Documents Activity List Activity Attributes Assumption Log Milestone List

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Project Schedule Management

Project Documents Updates

Dependency Determination

Enterprise Environmental Factors

Leads and Lags

Organizational Process Assets

Project Management Information System

Activity List Activity Attributes Assumption Log Milestone List

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PMP® Exam Preparation Sequence Activities continued Leads and Lags: Lead – is the amount of time that a successor activity can be advanced with respect to a predecessor activity. Eg, on a new build office project, the car park for the offices could be scheduled to start two weeks before the actual building work on the office itself completes. This would be shown as a finish-tostart with a two week lead. Leads are often indicated as having negative value in scheduling software. Complete office build

Write document

FS - 2 Weeks (Lead)

SS + 5 Days (Lag) Build car park

Edit document

Lag – is the amount of time that a successor activity will be delayed with respect to a predecessor activity. Eg, a review team may start editing a draft document 5 days after starting to write it. This would be shown as a start-to-start with a 5 day lag. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Estimate Activity Durations Activity duration estimation is the process of estimating the number of work periods needed to complete individual activities with estimated resources.

Planning Inputs Project Management Plan Scope Management Plan Scope Baseline

Project Schedule Management

Tools & Techniques

Outputs

Expert Judgement

Duration Estimates

Analogous Estimating

Basis of Estimates

Parametric Estimating

Project Documents Updates Activity Attributes Assumption Log Milestone List

Project Documents Activity List Activity Attributes Assumption Log Lessons Learned Register Milestone List Project Team Assignments Resource Breakdown Structure Resource Calendars Resource Requirements Risk Register

Three Point Estimating Bottom-up Estimating

Data Analysis Alternative Analysis Reserve Analysis

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Enterprise Environmental Factors

Decision Making

Organizational Process Assets

Meetings

Voting

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PMP® Exam Preparation Planning

Develop Schedule The process of analyzing activity sequences, durations, resource requirements and schedule constraints to create a schedule for project execution, monitoring and controlling.

Project Schedule Management

Inputs

Tools & Techniques

Outputs

Project Management Plan

Schedule Network Analysis

Schedule Baseline

Project Documents

Critical Path Method

Project Schedule

Project Documents Activity List Activity Attributes Assumption Log Basic of Estimates Duration Estimates Lessons Learned Register Milestone List Project Schedule Network Diagrams Project Team Assignments Resource Calendars Resource Requirements Risk Register

Resource Optimization

Schedule Data

Data Analysis

Project Calendars

Agreements

Schedule Compression

Enterprise Environmental Factors

Project Management Information System

Organizational Process Assets

Agile Release Planning

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What-if scenario analysis Simulation

Leads and Lags

Change Requests Project Documents Updates Activity Attributes Assumption Log Duration Estimates Lessons Learned Register Resource Requirements Risk Register Project Management Plan Updates Schedule Management Plan Cost Baseline

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PMP® Exam Preparation Monitoring & Controlling

Control Schedule Controlling the schedule includes monitoring schedule performance and controlling changes to the schedule baseline.

Project Schedule Management

Inputs

Tools & Techniques

Outputs

Data Analysis Project Management Plan

Work Performance Information

Schedule Management Plan Schedule Baseline Scope Baseline Performance Measurement Baseline

Earned Value Analysis Iteration Burndown Chart Performance Reviews Trend Analysis Variance Analysis What-if scenario analysis

Project Documents

Critical Path Method

Schedule Forecasts Change Requests

Project Management Plan Updates Work Performance Data

Project Management Information System

Organizational Process Assets

Resource Optimization

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Schedule Management Plan Schedule Baseline Scope Baseline Cost Baseline

Leads and Lags

Project Documents Updates

Schedule Compression

Issue Log Lessons Learned Register Stakeholder Register

248

PMP® Exam Preparation Project Schedule Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Schedule Management processes are applied. The various aspects that may be considered are : Life cycle approach Resource availability Project dimensions Technology support

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Questions - MODULE 6

Project Schedule Management

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250

PMP® Exam Preparation Questions Module 6 Question – 1 Two Tasks P (duration of 2 weeks) and Q (duration of 3 weeks) should both be finished, but Q has a lag of 2 days with its predecessor P. Which is the correct way of representation for Q’s predecessor field? C. FS + 2 A. FF + 2 D. FS - 2 B. FF – 2 Question – 2 The PERT estimate for a task with optimistic value of 3 days, pessimistic value of 7 days and most likely value of 5 days is: C. 5 days A. 4 days D. 3 days B. 7 days

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251

PMP® Exam Preparation Question – 3 What-if analysis is used as one of the Tools and Techniques in which one of the following processes? A. Sequence Activities and Estimate Activity Durations B. Develop Schedule and Define Activities C. Develop Schedule and Control Schedule D. Only in Develop Schedule Question – 4 An activity has an ES of 0 day and LS of 2 days. Which one of the following is a correct statement? A. The activity is one of the first tasks to be executed in the project B. The activity has a float of 2 days C. The activity is not on the critical path D. All of the above

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PMP® Exam Preparation Question – 5 What is the correct sequence of execution for processes in Schedule Management? A. Create WBS, Define Activities, Sequence Activities, Estimate Activity Durations, and then Develop Schedule B. Create WBS, Define Activities, Sequence Activities, Develop Schedule, and then Estimate Activity Durations

C. Define Activities, Sequence Activities, Estimate Activity Durations, and then Develop Schedule D. Define Activities, Sequence Activities, Estimate Activity Durations, Create WBS, and then Develop Schedule

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253

End of Module 6

Project Schedule Management Based on the PMBOK® Guide - Sixth Edition

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254

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 256

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

257

MODULE 7 Project Cost Management Based on the PMBOK® Guide - Sixth Edition

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258

Learning Objectives – Project Cost Management In this module, we will cover: What is Project Cost Management? Differentiate between Cost Estimating and Cost Budgeting Key Terminology in Project Cost Management Core PM processes of the Project Cost Management Knowledge Area Plan Cost Management Estimate Costs Determine Budget Control Costs Earned Value Technique

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259

PMP® Exam Preparation Project Cost Management Project Cost Management involves: Making an approximation of the expected costs (estimate costs) Getting approval for the costs (determine budget) Monitoring the status of the project cost and taking action where needed (control cost). Cost Management Plan: States how costs will be controlled, estimating units of measure, estimating precision, permissible variance thresholds, earned value rules and reporting formats.

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260

PMP® Exam Preparation Planning

Plan Cost Management

Project Cost Management

The process that establishes the policies, procedures and documentation for planning, managing, expending, and controlling project costs Gives guidance and direction on how cost will be managed throughout the project Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Cost Management Plan

Project Management Plan Schedule Management Plan Risk Management Plan

Enterprise Environmental Factors

Data Analysis Alternative Analysis

Meetings

Organizational Process Assets

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261

PMP® Exam Preparation Estimate Costs

Planning

Cost Estimating is the process of "developing an approximation of the cost of resources needed to complete project work".

Inputs

Project Cost Management

Tools & Techniques

Outputs

Cost Management Plan Quality Management Plan Scope Baseline

Expert Judgement

Cost Estimates

Project Documents

Analogous Estimating

Project Management Plan

Lessons Learned Register Project Schedule Resource Requirements Risk Register

Bottom-Up Estimating

Enterprise Environmental Factors

Three Point Estimating

Project Documents Updates

Organizational Process Assets

Data Analysis Alternative Analysis (Build/Buy)

Assumption Log Lessons Learned Register Risk Register

Parametric Estimating

Basis of Estimates

Reserve Analysis Cost of Quality

Project Management Information System Decision Making Voting

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262

PMP® Exam Preparation Determine Budget

Planning

Cost budgeting is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Inputs

Project Cost Management

Tools & Techniques

Outputs

Expert Judgement

Cost Baseline

Cost Aggregation

Project Funding Requirements

Project Management Plan Cost Management Plan Resource Management Plan Scope Baseline

Project Documents Basis of Estimates Cost Estimates Project Schedule Risk Register

Business Documents Business Case Benefits Management Plan

Data Analysis Reserve Analysis

Agreements

Historical Information Review

Enterprise Environmental Factors

Funding Limit Reconciliation

Organizational Process Assets

Financing

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Project Documents Updates Cost Estimates Project Schedule Risk Register

263

PMP® Exam Preparation Control Costs Control cost is the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.

Monitoring & Controlling Inputs

Project Cost Management

Tools & Techniques

Outputs

Cost Management Plan Cost Baseline Performance Measurement Baseline

Expert Judgement

Work Performance Information

Data Analysis Project Documents Lessons Learned Register

Earned Value Analysis Trend Analysis Variance Analysis Reserve Analysis

Cost Forecasts

Project Funding Requirements

To-compete Performance Index

Work Performance Data

Project Management Information System

Project Management Plan

Change Requests

Project Management Plan Updates Cost Management Plan Cost Baseline Performance Measurement Baseline

Project Documents Updates Organizational Process Assets

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Assumption Log Basis of Estimates Lessons Learned Register Risk Register

264

PMP® Exam Preparation Earned Value Management Earned value management or EVM is the methodology that combines scope, schedule, and resource measurements to assess project performance and progress. It is commonly used as the basis for performance measurement in projects. It integrates: The Scope Baseline The Cost Baseline The Schedule Baseline This forms the Performance Measurement Baseline for a project.

This helps project teams to assess and measure the project’s performance and progress. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Earned Value Management Terms and Calculations A summary of important earned value terms, associated calculations and their interpretations:

Term

Description

Formula

Interpretation

PV (BCWS)

Planned Value (Budgeted Cost of Work Scheduled)

-

What is the estimated value of the work planned to be done?

EV (BCWP)

Earned Value (Budgeted Cost of Work Performed)

-

What is the estimated value of the work actually accomplished?

AC (ACWP)

Actual Cost (Actual Cost of Work Performed)

-

What is the actual cost incurred?

BAC

Budget at Completion

-

How much did you budget for the project?

EV – AC

At a given point in time, what is the project’s budget deficit or surplus? POSITIVE is under planned cost NEUTRAL (ZERO) is on planned cost NEGATIVE is over planned cost

EV – PV

At a given point in time, by what amount the project is ahead or behind the planned delivery date? POSITIVE is ahead of schedule NEUTRAL (ZERO) is on schedule NEGATIVE is behind schedule

CV

SV

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Cost Variance

Schedule Variance

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PMP® Exam Preparation Earned Value Management Terms and Calculations (continued) A summary of important earned value terms, associated calculations and their interpretations:

Term

CPI

Description

Cost Performance Index

Formula

Interpretation

EV / AC

How well the project is doing with respect to cost? Getting (Only) ___ cents out of every $1. Greater than 1 .0 is under planned cost Exactly 1.0 is on planned cost Less than 1.0 is over planned cost

SPI

Schedule Performance Index

EV / PV

How well the project is doing with respect to schedule? Progressing at (Only) ___% of the rate originally planned. Greater than 1 .0 is ahead of schedule Exactly 1.0 is on schedule Less than 1.0 is behind schedule

EAC

Estimate At Completion

BAC/CPI (default)

What is the total project estimate to cost?

ETC

Estimate To Complete

EAC – AC

From this point on, how much more do we expect it to cost to finish the job?

BAC - EAC

How much over or under budget do we expect to be? POSITIVE is under planned cost NEUTRAL (ZERO) is on planned cost NEGATIVE is over planned cost

VAC

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Variance at Completion

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PMP® Exam Preparation EAC with Various Assumptions Earned Value Management formulae for EAC based on various assumptions.

Name

Estimate At Completion (EAC)

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Assumptions

Formula

Assumption – 1: If the CPI is expected to be the same for the remainder of the project

EAC = BAC/CPI (The default formula)

Assumption – 2: If future work will be completed at the planned rate

EAC = AC + (BAC – EV)

Assumption – 3: If both the CPI and SPI will influence the remaining work.

EAC = AC + [ (BAC – EV) / (CPI * SPI)]

Assumption – 4: If both the CPI and SPI will influence the remaining work in some proportion. It is a variant of Assumption 4.

EAC = AC + [ (BAC – EV) / (0.8* CPI + 0.2 * SPI)] Above 80% weightage is given to CPI and 20% weightage is given to SPI. If the weightage changes, the denominator will change accordingly.

Assumption – 5: If the initial plan is no longer valid.

EAC = AC + Bottom-up ETC

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PMP® Exam Preparation To Complete Performance Index

Name

Earned Value Management formulae for TCPI based on conditions.

How Used

The efficiency that must be maintained in order to complete on plan.

Formula

Interpretation

TCPI = (BAC - EV) / (BAC – AC)

Greater than 1 .0 is harder to complete Exactly 1.0 is same to complete Less than 1.0 is easier to complete

TCPI = (BAC - EV) / (EAC – AC)

Greater than 1 .0 is harder to complete Exactly 1.0 is same to complete Less than 1.0 is easier to complete

To Complete Performance Index (TCPI)

The efficiency that must be maintained in order to complete the current EAC.

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PMP® Exam Preparation EVM Illustration To illustrate the concept of EVM, assume a project of building a wall has exactly one task. The task was baselined at 8 hours, but 11 hours have been spent and the estimate to complete is 1 additional hour. The task was to have been completed already. Assume an Hourly Rate of $100 per hour. Using this information: Calculate CPI and SPI. Problem Solution: Hourly Rate = $100 PV = Hourly Rate * Total Hours Planned or Scheduled PV = $800 ($100 * 8 hours) AC = Hourly Rate * Total Hours Spent AC = $1100 ($100 * 11 hours) PMP, PMBOK are registered marks of the Project Management Institute, Inc.

BAC = Baselined Effort-hours * Hourly Rate BAC = $800 (8 hours * $100) EAC (estimate at complete) = AC + ETC EAC = $1200 ($1100 + $100) VAC = BAC - EAC VAC = -$400 ($800 - $1200 ) % Completed Planned = PV / BAC % Complete Planned = 100% ($800 PV / $800 BAC) % Completed Actual = AC / EAC % Complete Actual = 91.7% ($1100 AC / $1200 EAC) EV = Base lined Cost * % Complete Actual EV = $734 (baseline of $800 * 91.7% complete)

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PMP® Exam Preparation EVM Illustration (Continued) BAC = Baselined Effort-hours * Hourly Rate BAC = $800 (8 hours * $100)

% Completed Planned = PV / BAC % Complete Planned = 100% ($800 PV / $800 BAC)

EAC = AC + ETC EAC = $1200 ($1100 + $100)

% Completed Actual = AC / EAC % Complete Actual = 91.7% ($1100 AC / $1200 EAC)

VAC = BAC - EAC VAC = -$400 ($800 - $1200 )

EV = Base lined Cost * % Complete Actual EV = $734 (baseline of $800 * 91.7% complete)

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PMP® Exam Preparation EVM Illustration (Continued) SV = Earned Value (EV) - Planned Value (PV) SV = -$66 ($734 EV - $800 PV) SPI = Earned Value (EV) / Planned Value (PV) SPI = 0.91 ($734 EV / $800 PV) CV = Earned Value (EV) - Actual Cost (AC) CV = -$366 ($734 EV - $1100 AC) indicating a cost overrun CPI = Earned Value (EV) / Actual Cost (AC) CPI = 0.66 ($734 EV / $1100 AC) indicating over budget

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272

PMP® Exam Preparation Project Cost Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Cost Management processes are applied. The various aspects that may be considered are : Knowledge management Estimating and budgeting Earned value management Use of agile approach Governance

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273

Questions - MODULE 7

Project Cost Management

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274

PMP® Exam Preparation Questions Module 7 Question – 1 In which process is the initial Cost Management Plan prepared? A. Estimate Costs B. Determine Budget C. Develop Project Management Plan D. Plan Cost Management

Question – 2 In a project the SPI is found to be 0.8. It means which of the following? A. For every one dollar spent, 80 cents is received back B. For every estimated day of effort, 0.8 days of productive work is performed C. For every estimated week of effort, 4 days of productive work is performed D. Both B and C PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 3 A project has an SPI of 0.9375 and EV of 105. What is the SV of the project? A. -7 B. -10 C. -12 D. 10 Question – 4 The Estimate to Complete (ETC) is defined as which of the following: A. Total budget that will be spent based on past performance B. Projected remaining amount of money that will be spent based on past performance C. Difference between what was budgeted and what is expected to be spent D. Originally planned cost minus the cost incurred to date

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PMP® Exam Preparation Question – 5 As a project manager, your best use of the Cost Baseline would be: A. Measure and monitor the cost performance of the project B. Track approved changes C. Calculate team performance bonuses D. Measure and report project variable costs Question – 6 The value of work completed so far is: A. EV B. AC C. PV D. EAC

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End of Module 7

Project Cost Management Based on the PMBOK® Guide - Sixth Edition

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278

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 280

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

281

MODULE 8 Project Quality Management Based on the PMBOK® Guide - Sixth Edition

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282

Learning Objectives – Project Quality Management In this module, we will cover:

What is Quality? What is Quality Management? Cost of Quality Core PM processes of the Project Quality Management Knowledge Area. Plan Quality Management Manage Quality Control Quality Seven Basic Tools of Quality

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283

PMP® Exam Preparation Quality “Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs”. This definition basically says that quality is "meeting or exceeding customer expectations.“ Project quality management involves making sure the project meets the needs or expectations of the stakeholder. The project manager is responsible for project quality, whereas senior management is responsible for the quality of the whole organization.

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284

PMP® Exam Preparation What is Quality Management? Quality Management on a project is making sure that the final product or service meets certain standards. The standards can be set by the Project Manager or the customer or by established norms such as legal requirements. The three processes of the Project Quality Management Knowledge Area are: Plan Quality Management Manage Quality Control Quality

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PMP® Exam Preparation What is Quality Management? (Continued) In the context of achieving ISO compatibility, modern quality management approaches seek to minimize variations and to deliver results that meet defined requirements. These types of approach recognize the importance of: Customer satisfaction Understanding, evaluating, defining requirements and expectations of customers and clients

Prevention over inspection Quality should be planned, designed and built into project deliverables not inspected into the project deliverables.

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286

PMP® Exam Preparation What is Quality Management? (Continued) Continual improvement Plan-Do-Check-Act (PDCA) is the basis for quality improvement as defined by Shewhart and modified by Deming. Quality improvement initiatives such as Total Quality Management (TQM) where everyone involved in the project can contribute to its quality improvements and Lean Six Sigma could improve the quality of the project’s management as well as the quality of the deliverables. Management Responsibility Management retains within it the responsibility for quality and for the provision of suitable resources with adequate capabilities.

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287

PMP® Exam Preparation Cost of Quality Cost of quality includes all costs incurred over the life of the product by investing in preventing nonconformance to requirements and ensuring that the product conforms to requirements. Cost of conformance The costs incurred while building in, or ensuring, quality are called the costs of conformance. Costs of conformance can include activities such as: Process documentation Training Inspections Audits This is money spent to avoid failures. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

288

PMP® Exam Preparation Cost of Quality Cost of Non-Conformance

There is a potential loss of money spent for costs associated with any resulting project failures. These costs are referred to as the costs of non-conformance. This is money spent because of failures. Costs of non-conformance can include things such as:

Payments made out on warranties, Re-work or scrap, and/or Damage to reputation.

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289

PMP® Exam Preparation Planning

Plan Quality Management The goal is to identify all relevant standards that apply to a project as well as the quality requirements that need to be met.

Project Quality Management

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Quality Management Plan

Project Management Plan

Data Gathering

Requirements Management Plan Risk Management Plan Stakeholder Engagement Plan Scope Baseline

Benchmarking Brainstorming Interviews

Quality Metrics

Project Documents Assumption Log Requirements Documentation Requirements Traceability Matrix Stakeholder Register Risk Register

Enterprise Environmental Factors

Data Analysis Cost Benefits Analysis Cost of Quality

Risk Management Plan Scope Baseline

Decision Making Multicriteria Decision Analysis

Data Representation Organizational Process Assets

Project Management Plan Updates

Flowcharts Logical Data Model Matrix Diagram Mind Mapping

Project Document Updates Lessons Learned Register Requirements Traceability Matrix Risk Register Stakeholder Register

Test and Inspection Planning Meetings PMP, PMBOK are registered marks of the Project Management Institute, Inc.

290

PMP® Exam Preparation Executing

Manage Quality Is the process of translating the quality management plan into executable quality activities that incorporate the organization’s quality policies into the project.

Project Quality Management

Inputs

Tools & Techniques

Outputs

Project Management Plan

Data Gathering

Quality Management Plan

Checklists

Quality Reports

Project Documents Lessons Learned Register Control Quality Measurements Quality Metrics Risk Report

Organizational Process Assets

Data Analysis Process Analysis Root Cause Analysis (RCA)

Decision Making Multicriteria Decision Analysis

Data Representation

It increases the probability of meeting the quality objectives as well as identifying ineffective processes and causes of poor quality.

Affinity Diagram Cause-and-effect Diagram Flowcharts Histograms Matrix Diagrams Scatter Diagram

Test and Evaluation Documents

Change Requests Project Management Plan Updates Quality Management Plan Scope Baseline Schedule Baseline Cost Baseline

Audits Design for X Problem Solving

Project Documents Updates Issue Log Lessons Learned Register Risk Register

Quality Improvement Methods PMP, PMBOK are registered marks of the Project Management Institute, Inc.

291

PMP® Exam Preparation Monitoring & Controlling

Control Quality Inputs

Control Quality is the process of monitoring and recording results of executing the quality management activities in order to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.

Tools & Techniques

Project Quality Management Outputs

Data Gathering Project Management Plan Quality Management Plan

Project Documents

Checklists Check Sheets Statistical Sampling Questionnaire and Surveys

Data Analysis

Quality Control Measurements

Verified Deliverables

Lessons Learned Register Quality Metrics Test and Evaluation Documents

Performance Reviews Root Cause Analysis

Approved Change Requests

Inspection

Work Performance Information

Deliverables

Testing/Product Evaluations

Change Requests

Data Representation Work Performance Data

Enterprise Environmental Factors Organizational Process Assets

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Cause-and-effect Diagram Control Charts Histogram Scatter Diagram

Project Management Plan Updates

Meetings

Project Documents Updates

Approved CR Review

Issue Log Lessons Learned Register Risk Register Test and Evaluation Documents

Quality Management Plan

292

PMP® Exam Preparation Seven Basic Tools of Quality Seven basic tools can be: Understood and used by anyone without training in statistics Used to solve the vast majority of quality-related issues Also known as 7QC Tools, they are used within the context of the PDCA Cycle Cause and Effect Diagrams Flowcharts Check-sheets Histograms Pareto Charts or Diagrams

Scatter Diagrams Control Charts PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Cause & Effect Diagram A graphic tool that helps identify, sort, and display possible causes of a problem or quality characteristic. Also called fishbone or Ishikawa diagrams. Benefits of using this diagram: Helps determine root causes Encourages group participation Uses an orderly, easy-to-read format Increases process knowledge Identifies areas for collecting data.

Basic layout of Cause & Effect Diagram Cause A

Effect

Cause B PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Cause C

Cause D 294

PMP® Exam Preparation Flowchart A pictorial representation of the separate steps of a process in sequential order. Used in designing and documenting complex processes. Like other types of diagrams, they help visualize what is going on and thereby help the viewer to understand a process, and perhaps also find flaws, bottlenecks, and other less-obvious features within it. Help you get a handle on how processes work by showing all of the decision points graphically.

Start Do

Decide

Do

Do End

Flowcharts are extended with the SIPOC model which adds more details to each of the processes in a flowchart. SIPOC stands for suppliers, inputs, process, outputs, and customers which form the columns of the table. Ref Page 236/237 of the PMBOK© Guide – Sixth Edition. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Check Sheet Also known as Tally sheets and can be used as a checklist while gathering data. Facts are organized in a manner, which will facilitate the effective collection of useful data about a potential quality problem. It is especially useful for gathering attributes data while performing inspections to identify defects. This is later put into Pareto Diagrams for analysis.

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PMP® Exam Preparation Histogram A histogram is a vertical bar chart showing how often a particular variable occurred.

Histograms are used to plot the density of data, and often for density estimation, and estimating the probability density function of the underlying variable.

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PMP® Exam Preparation Pareto Chart

A bar graph, where the lengths of the bars represent frequency or cost (time or money), and are arranged with the longest bars on the left and the shortest to the right. Pareto charts help to figure out which problems need attention right away. They’re based on the idea that a large number of problems are caused by a small number of causes. In fact, that’s called the 80 / 20 rule - 80% of the defects are usually caused by 20% of the causes.

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± 80% of defects

± 20% of causes

298

PMP® Exam Preparation Run Chart Also known as a run-sequence plot, it is a graph that displays observed data in a time sequence. Often, the data displayed represent some aspect of the output or performance of a manufacturing or other business process.

observed data

Run charts are similar to the control charts used in statistical process control, but do not show the control limits of the process.

time sequence PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Scatter Diagram The scatter diagram graphs pairs of numerical data, with one variable on each axis, to look for a relationship between them. If the variables are correlated, the points will fall along a line or curve. The better the correlation, the tighter the points will hug the line. Scatter charts help look at the relationship between two different kinds of data. http://n.wikipedia.org/wiki/Scatter_plot

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300

PMP® Exam Preparation Control Chart Also known as Shewhart chart or process behavior charts have a central line for the average, an upper line for the upper control limit and a lower line for the lower control limit. The control chart is a graph used to study how a process changes over time. Data are plotted in time order.

observed data

UCL

Process out of control PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Mean LCL

time sequence

UCL = Upper Control Limit LCL = Lower Control Limit 301

PMP® Exam Preparation Project Quality Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Quality Management processes are applied. The various aspects that may be considered are : Policy compliance and auditing Standards and regulatory compliance Continuous improvement Stakeholder engagement

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302

Questions - MODULE 8

Project Quality Management

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303

PMP® Exam Preparation Questions Module 8 Question – 1 In which one of the following charts is the rule of seven used? A. Control Chart B. Run Chart C. Pareto Chart D. Flowchart

Question – 2 You are a project manager and have been called by the senior management team to find out what standards and practices are being followed in your project. By this, which process is being performed? A. Total Quality Management B. Plan Quality Management C. Manage Quality D. Control Quality PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Question – 3 An Ishikawa Diagram is used in which of the following process? A. Manage Quality B. Plan Quality Management C. Control Quality D. All of the above Question – 4 Which one of the following best represents the Total Quality Management (TQM) philosophy? A. Decreasing inventory to zero or near zero level B. Everyone in the organization can contribute to quality improvements C. Zero defects D. Continuous improvement is preferred over disruptive changes

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PMP® Exam Preparation Question – 5 In a Control Chart, the upper and lower control limits are set at what value from the mean? A. One standard deviation B. Two standard deviations C. Three standard deviations D. Six standard deviations Question – 6 The PDCA cycle was initially proposed by: A. ISO body B. Edward Deming C. Francis Bacon D. Walter D. Shewart

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End of Module 8

Project Quality Management Based on the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 309

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

310

MODULE 9 Project Resource Management Based on the PMBOK® Guide - Sixth Edition

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311

Learning Objectives – Project Resource Management In this module, we will cover: What is Resource Management? Roles and Responsibilities of the Project Sponsor Functional Manager vs. Project Manager Core PM processes of the Resource Management Knowledge Area. Plan Resource Management Estimate Activity Resources Acquire Resources Develop Team Manage Team Control Resources

Conflict Management Motivation Theory PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Resource Management Project Resource Management includes the processes to identify, acquire, and manage the resources needed for the successful completion of the project. Project resource management includes the following: Plan Resource Management: Define and document how to estimate, acquire, manage, and utilize physical and team resources. Estimate Activity Resources: Estimating team resources and the type and quantities of material, equipment, and supplies necessary to perform project work Acquire Resources: Obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work. Develop Team: Improve the competencies and interaction of team members to enhance project management. Manage Team: Tracking team member performance, providing feedback, resolving issues and coordinating changes to enhance project performance. Control Resources: Ensuring that the physical resources assigned are available as planned and monitoring the planned versus actual use of resources. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Role of Project Sponsor The sponsor is a key stakeholder of the project that provides the financial resources, in cash or in kind, for the project. There may be more than one sponsor for a project. The Project Sponsor: Is responsible for providing the project budget Provides authority to the project manager Prioritizes the constraints for the project Approves the project management plan Enforces quality policies Approves changes Formally accepts project deliverables Ensures the benefits from the project are realized PMP, PMBOK are registered marks of the Project Management Institute, Inc.

314

PMP® Exam Preparation Functional vs. Project Manager Functional Manager

▪ Responsible for activities in a specialized department or function. ▪ Responsible for one of the principle elements of the organization, such as production, marketing, finance, etc. ▪ Each functional manager tends to emphasize his/her own function or department and his/her authority level is limited to his/her own department or function. ▪ Likely to be a part of the function or department planning and controlling.

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Project Manager

▪ A manager or individual responsible for managing a project. ▪ A project manager is responsible for the whole project and each phase. ▪ The project manager is the person responsible for accomplishing the project objectives within the constraints of the project. ▪ The project manager is involved in the planning, controlling and monitoring and managing the assigned project resources to best meet project objectives.

315

PMP® Exam Preparation Plan Resource Management Plan Resource Management is the process of defining how to estimate, acquire, manage, and use team and physical resources. It establishes the approach and level of management effort needed for managing project resources based on the type and complexity of the project.

Planning

Project Resource Management

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Resource Management Plan

Project Management Plan

Data Representation

Quality Management Plan Scope Baseline

Hierarchical Charts Responsibility Assignment Matrix Text-oriented Formats

Project Documents Project Schedule Requirement Documentation Risk Register Stakeholder Register

Enterprise Environmental Factors

Organizational Theory

Team Charter

Project Documents Updates Assumption Log Risk Register

Meetings

Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

316

PMP® Exam Preparation Plan Resource Management (continued) A RACI Chart is a matrix based chart known also as a responsibility assignment matrix (RAM). A RACI Chart (responsible, accountable, consult, and inform) is useful when the project team consists of internal and external resources and it assists in ensuring clear divisions of individual roles and expectations. RACI Chart Activity

Dave

William

Carol

Ben

Emma

Create Project Charter

A

R

I

I

I

Collect requirements

I

A

R

C

C

Submit Change Requests

I

A

R

R

C

Develop Project Plan

A

C

I

I

R

R = Responsible A = Accountable C = Consult I = Inform "A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute, Inc., 2017, Figure 9-4, Page 317." PMP, PMBOK are registered marks of the Project Management Institute, Inc.

317

PMP® Exam Preparation Planning

Estimate Activity Resources Estimate Activity Resources is the process of estimating team resources and the type and quantities of materials, equipment and supplies necessary to perform project work.

It identifies the type, quantity, and characteristics of resources required to complete the project.

Inputs Project Management Plan Resource Management Plan Scope Baseline

Project Documents Activity Attributes Activity List Assumption Log Cost Estimates Resource Calendars Risk Register

Enterprise Environmental Factors Organizational Process Assets

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Project Resource Management

Tools & Techniques Expert Judgement

Outputs Resource Requirements

Bottom-up Estimating Parametric Estimating

Basis of Estimates

Analogous Estimating Project Management Information System

Resource Breakdown Structure

Data Analysis

Project Documents Updates

Alternatives Analysis

Meetings

Activity Attributes Assumption Log Lessons Learned Register

318

PMP® Exam Preparation Executing

Acquire Resources The Acquire Resources process involves obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work.

Inputs Project Management Plan Resource Management Plan Procurement Management Plan Cost Baseline

Project Documents Project Schedule Resource Calendars Resource Requirements Stakeholder Register

Project Resource Management

Tools & Techniques Decision Making Multicriteria Decision Analysis

Interpersonal and Team Skills Negotiation

Enterprise Environmental Factors

Pre-assignment

Organizational Process Assets

Virtual Teams

Outputs Physical Resource Assignments Project Team Assignments Resource Calendars Change Requests Project Management Plan Updates Resource Management Plan Cost Baseline

Project Documents Updates Lessons Learned Register Project Schedule Resource Breakdown Structure Resource Requirements Risk Register Stakeholder Register

Enterprise Environmental Factors Updates Organizational Process Assets Updates PMP, PMBOK are registered marks of the Project Management Institute, Inc.

319

PMP® Exam Preparation Executing

Develop Team The Develop Team process under Resource Management is the means by which "improving competencies, team interaction and the overall team environment will enhance project performance."

Inputs Project Management Plan

Project Resource Management

Tools & Techniques

Outputs

Colocation

Team Performance Assessments

Virtual Teams

Change Requests

Resource Management Plan

Project Documents Lessons Learned Register Project Schedule Project Team Assignment Resource Calendar Team Charter

Communication Technology Recognition and Rewards

Project Management Plan Updates Resource management plan

Interpersonal and Team Skills Enterprise Environmental Factors

Organizational Process Assets

Conflict Management Influencing Motivation Negotiation Team Building

Project Documents Updates Lessons Learned Register Project Schedule Project Team Assignments Resource Calendars Team Charter

Training

Enterprise Environmental Factors Updates

Individual and Team Assessments

Organizational Process Assets Updates

Meetings PMP, PMBOK are registered marks of the Project Management Institute, Inc.

320

PMP® Exam Preparation Develop Team Team Building Activities:

Team building can come in the form of five minute briefings, sports activities or professional facilitated meetings. Team building is essential in the early stages of a project. It is a continual process throughout a project. The project manager must continually monitor the functionality and performance of the team and take action to prevent or correct various team problems. The Tuckman Ladder (Tuckman & Jensen, 1977) includes five stages of team development: Forming Storming Norming Performing Adjourning PMP, PMBOK are registered marks of the Project Management Institute, Inc.

321

PMP® Exam Preparation Develop Team Forming This is where the team meets and learns about the project and their formal roles and responsibilities. At this point team members tend to be independent and not as open to one another. Storming Here the team starts to address the project work, technical decisions and the management approach to the project. The team needs to be open and collaborative at this stage or the environment can become counterproductive. Norming Team members begin to work together and adjust to the environment. They also may adjust their own work habits to suit the environment.

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322

PMP® Exam Preparation Develop Team Performing Reaching this stage a team will be well organized. They will be interdependent and work through issues smoothly and effectively. Adjourning The team completes the work and moves on from the project to other assignments.

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323

PMP® Exam Preparation Executing

Manage Team Manage Team process involves the tracking and appraisal of team member performance, providing feedback, resolving issues, managing conflict and coordinating changes to enhance project performance.

Inputs

Tools & Techniques

Project Resource Management Outputs

Interpersonal and Team Skills Project Management Plan Resource Management Plan

Conflict Management Decision Making Emotional Intelligence Influencing Leadership

Project Documents Issue Log Lessons Learned Register Project Team Assignments Team Charter

Work Performance Reports Team Performance Assessments

Enterprise Environmental Factors

Project Management Information System

Change Requests

Project Management Plan Updates Resource Management Plan Schedule Baseline Cost Baseline

Project Documents Updates Issue Log Lessons Learned Register Project Team Assignments

Enterprise Environmental Factors Updates

Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

324

PMP® Exam Preparation Conflict Management Conflict is a form of interacting where we find ourselves under perceived threat to our personal or collective goals. Conflict is an inevitable consequence of organizational interactions. Conflict situations result in negative and positive effects. They may help diffuse more serious conflicts, stimulate a search for new facts or resolution, increase group cohesion and performance, and demonstrate the power or ability of the conflicting parties.

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325

PMP® Exam Preparation Conflict Management (continued) Conflict can be avoided by: Keeping the project team informed about the exact project status Assigning responsibilities in such a way that overlapping of responsibilities do not occur. Keeping the whole project team motivated. Approaches to conflict resolution: Collaborate/Problem-solve approach Withdraw/Avoid approach Compromise/Reconcile approach Smooth/Accommodate approach Force/Direct approach PMP, PMBOK are registered marks of the Project Management Institute, Inc.

326

PMP® Exam Preparation Motivation Theory Motivation is an internal drive to meet a set of objectives.

Being a project manager one should be aware of what motivates the team, in order to get the results expected. McGregor's X-Y theory: According to McGregor, there are the following two types of managers: • Theory X managers believe people are self-centered, are only motivated by their physiological and safety needs. They lack ambition and have very little problem solving skills, they also dislike and try to avoid work.

• Theory Y managers trust their employees. People are willing to work without supervision. They are creative, committed and want to achieve something. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

327

PMP® Exam Preparation Maslow’s Hierarchy of Human Needs

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328

PMP® Exam Preparation Maslow’s Hierarchy of Human Needs

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329

PMP® Exam Preparation Monitoring and Controlling

Control Resources Control Resources is the process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective action as necessary.

Inputs Project Management Plan Resource Management Plan Project Documents Issue Log Lessons Learned Register Physical Resource Assignments Project Schedule Resource Breakdown Structure Resource Requirements Risks Register

Tools & Techniques Problem Solving Data Analysis Alternative Analysis Cost Benefits Analysis Performance Reviews Trend Analysis

Work Performance Data

Agreements

Project Management Information System

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Outputs Work Performance Information

Change Requests

Project Management Plan Updates Interpersonal and Team Skills Negotiation Influencing

Organizational Process Assets

Project Resource Management

Resource Management Plan Schedule Baseline Cost Baseline

Project Documents Updates Assumption Log Issue Log Lessons Learned Register Physical Resource Assignments Resource Breakdown Structure Risk Register

330

PMP® Exam Preparation Project Resource Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Resource Management processes are applied. The various aspects that may be considered are : Diversity Physical Location Industry-specific resources Acquisition of team members Management of team Life cycle approaches

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331

Questions - MODULE 9

Project Resource Management

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332

PMP® Exam Preparation Questions Module 9 Question – 1 Which one of the following is the best form of Conflict Management technique? A. Withdrawal B. Avoidance C. Collaboration D. Compromise

Question – 2 What do the letters RACI stand for in a RACI chart? A. Responsible, Analyze, Consult and Inform B. Responsible, Accountable, Confirm and Inform C. Role, Accountability, Confirmation and Information D. Responsible, Accountable, Consult and Inform PMP, PMBOK are registered marks of the Project Management Institute, Inc.

333

PMP® Exam Preparation Question – 3 At the higher level of Maslow’s hierarchy of needs which one will hold true? A. Food, Sleeping and Breathing B. Self confidence, Achievement C. Friendship, Family D. Security of family, Employment Question – 4 A Resource Calendar is prepared for the resources within the Resource Management Knowledge Area and is part of: A. Risk Management Plan B. Release Plan C. Project Documents D. Project Management Plan

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334

PMP® Exam Preparation Question – 5 What is the correct sequence of steps taken during the development of a project team? A. Storming, Forming, Norming and Adjourning B. Forming, Storming, Norming, Performing and Adjourning C. Forming, Storming, Norming, Performing and Relieving D. Forming, Storming, Norming, Performing, Achieving and Adjourning Question – 6 The best forms of power given to a project manager are: A. Reward and Referral B. Reward and Formal C. Expert and Reward D. Expert and Formal

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335

End of Module 9

Project Resource Management Based on the PMBOK® Guide - Sixth Edition

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336

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 338

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

339

MODULE 10 Project Communications Management Based on the PMBOK® Guide - Sixth Edition

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340

Learning Objectives – Project Communications Managment In this module, we will cover:

What is Communication? Communication Methods, Technology and Channels Basic Communication Model Key Terminology in Project Communication Management Core PM processes of the Communication Management Knowledge Area Plan Communications Management Manage Communications Monitor Communications

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341

PMP® Exam Preparation Communication Communication is the activity of conveying meaningful information. Communication requires a sender, a message, and an intended recipient. The communication process is complete once the receiver has understood the sender. Project teams are not normally natural teams and sometimes do not even reside in the same geographic location. Unique delivery methods and communication devices need to be utilized to overcome this challenge. Project managers spend most of their time in communicating to stakeholders. A project manager needs to understand the project well enough to know who needs to know which pieces of information, and just as importantly, which pieces of information are of no use to other members. Communication isn’t about how much you say to everyone, it’s about saying the right things to the right people. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

342

PMP® Exam Preparation Communication Methods The PMBOK® Guide - Sixth Edition categorizes the methods of communication into: Interactive Communication Push Communication Pull Communication For Interactive communication, all stakeholders involved in the communication can respond to each other in real-time i.e. face-to-face meetings, video conferencing, phone calls & messenger chats. Push communication is a method in which information is distributed without any feedback from the recipients i.e. meeting notes to people after a brainstorming workshop, email or voicemail. Organizations use push communication to notify shareholders through a press release. Pull communication is best for a large audience that needs to access information at their discretion. i.e. organization websites. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

343

PMP® Exam Preparation Basic Communication Model

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Message

Decode

Sender

Encode

A Communication model looks like a circle with 3 parts (see picture): The sender The message The receiver. Encode: To translate thoughts or ideas into a language that is understood by others. Decode: To translate the message back into meaningful thoughts or ideas.

Receiver

344

PMP® Exam Preparation Communication Channels The Project Manager must also take into consideration the number of communication channels that will be involved in the project and how complex it might be. It is important to establish who will communicate with whom and to limit the number of channels to only those necessary to complete the project. The formula for establishing the number of communications channels is: n ( n - 1) / 2 Where “n” represents the number of stakeholders. Example: There are 10 stakeholders involved in a project. The number of communication channels will be: n = 10 Using the formula 10 ( 10 - 1 ) / 2 = 45 There are 45 communications channels for this project. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

345

PMP® Exam Preparation Planning

Plan Communications Management Plan communications is the process of developing an appropriate approach and plan for project communications activities based on the stakeholder’s information needs and requirements, and available organizational assets.

Project Communications Management

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Communications Management Plan

Project Management Plan

Communications Requirement Analysis

Resource Management Plan Stakeholder Engagement Plan

Project Documents Requirements Documentations Stakeholder Register

Enterprise Environmental Factors

Project Management Plan Updates Stakeholder Engagement Plan

Communications Technology Communications Models

Project Documents Updates

Communications Methods

Project Schedule Stakeholder Register

Interpersonal and Team Skills Organizational Process Assets

Communications Styles Assessment Political Awareness Culture Awareness

Data Representation Stakeholder Engagement Assessment Matrix

Meetings

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346

PMP® Exam Preparation Executing

Manage Communications The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance with the Communication Management Plan.

Project Communications Management

Inputs

Tools & Techniques

Outputs

Project Management Plan

Communication Technology

Project Communications

Resource Management Plan Communications Management Plan Stakeholder Engagement Plan

Communication Methods

Project Documents Change Log Issue Log Lessons Learned Register Quality Report Risk Report Stakeholder Register

Work Performance Reports

Communication Skills Communication Competence Feedback Nonverbal Presentations

Organizational Process Assets

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Communications Management Plan Stakeholder Engagement Plan

Project Management Information Systems Project Reporting Interpersonal and Team Skills

Enterprise Environmental Factors

Project Management Plan Updates

Active Listening Conflict Management Political Awareness Networking Meeting Management Cultural Awareness

Meetings

Project Documents Updates Issue Log Lessons Learned Register Project Schedule Risk Register Stakeholder Register

Organizational Process Assets Updates

347

PMP® Exam Preparation Monitoring & Controlling

Monitor Communications The process of ensuring the information needs of the project and its stakeholders are met.

Inputs

Tools & Techniques

Outputs

Project Management Plan Resource Management Plan Communications Management Plan Stakeholder Engagement Plan

Expert Judgement

Work Performance Information

Project Management Information System

Change Requests

Data Representation

Project Management Plan Updates Communications Management Plan Stakeholder Engagement Plan

Project Documents

It ensures optimal information flow as defined in the Communications Management Plan and Stakeholder Engagement Plan.

Project Communications Management

Issue Log Lessons Learned Register Project Communications

Work Performance Data

Enterprise Environmental Factors

Organizational Process Assets

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Stakeholder Engagement Assessment Matrix

Interpersonal and Team Skills Observation/Conversation

Project Documents Updates Issue Log Lessons Learned Register Stakeholedr Register

Meetings

348

PMP® Exam Preparation Project Communications Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Communications Management processes are applied. The various aspects that may be considered are : Stakeholders Physical location Communications technology Language Knowledge management

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349

Questions - MODULE 10

Project Communications Management

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350

PMP® Exam Preparation Questions Module 10 Question – 1 An Issue Log is an Input to which processes in the Communications Management Knowledge Area? C. Monitor Communications Management A. Plan Communications Management B. Manage Communications Management D. Both B and C Question – 2 You have prepared the Project Management Plan and have sent it through email. What form of communication is being used? C. Formal, Written A. Informal, Written D. Formal, Verbal B. Informal, Verbal PMP, PMBOK are registered marks of the Project Management Institute, Inc.

351

PMP® Exam Preparation Question – 3 You have a team of 15 people including you, the Project Manager, and recently one of the members moved to another project team. How many communication channels are removed due to this? A. 12 B. 14 C. 15 D. 18 Question – 4 The Project Management Plan is an Input to which process of the following processes? A. Plan Communications Management B. Manage Communications C. Monitor Communications D. All of the above

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352

PMP® Exam Preparation Question – 5 The number of internal and external stakeholders on a project are “I” and “E”, respectively. How many communication channels are possible? A. N * (N - 1) / 2 B. I * ( I - 1) / 2 C. E * (E - 1) / 2 D. (I + E) * (I + E - 1) / 2 Question – 6 The responsibility of decoding the message lies with: A. The Sender B. The Receiver C. Communication Channel D. Communication Methods

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353

End of Module 10

Project Communications Management Based on the PMBOK® Guide - Sixth Edition

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354

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 356

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

357

MODULE 11 Project Risk Management Based on the PMBOK® Guide - Sixth Edition

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358

Learning Objectives – Project Risk Management In this module, we will cover:

What is Risk? Project Management Risks How is Risk & EMV calculated? Risk Classification Decision Tree Analysis Risk Reserve & Contingency Reserve Key Terminology in Project Risk Management

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Core PM processes of the Risk Management Knowledge Area Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Implement Risk Responses Monitor Risks

359

PMP® Exam Preparation Risk According to the PMBOK® Guide - Sixth Edition, risk is “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.”

Two characteristics of a risk in project management are: It occurs from elements of uncertainty (probability). It might have negative or positive effects on meeting the project objectives (impact).

Risk Management includes: Planning risk management

Monitoring the risk

Identifying and analyzing the risks

Implementing the risk responses

Preparing the response plan PMP, PMBOK are registered marks of the Project Management Institute, Inc.

360

PMP® Exam Preparation Project Management Risk Processes Plan Risk Management To determine how to conduct risk management for the project at hand. Identify Risks To identify and document the risks that might occur. Perform Qualitative Risk Analysis To estimate the overall probability and impact for risks to occur and to prioritize them accordingly for further analysis. Perform Quantitative Risk Analysis To analyze numerically the probability and effect of selected risks on meeting the project objectives.

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361

PMP® Exam Preparation Project Management Risk Processes (Continued) Plan Risk Responses To prepare a risk response plan in order to increase the positive impact and decrease the negative impact of risks on the project. Implement Risk Responses To implement agreed-upon risk response plans. Monitor Risks To track identified risks, identify new risks, execute risk response plans, and evaluate the effectiveness of the responses.

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362

PMP® Exam Preparation Risk & Expected Monetary Value (EMV) EMV = Probability x Impact (in units of money)

EMV calculates the average result of positive (opportunity) and negative (threat) risks. The EMV of opportunities are expressed as positive values, while those of threats are negative.

EMV for a project is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the results together. A common use of this type of analysis is in decision tree analysis.

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363

PMP® Exam Preparation Risk & Expected Monetary Value (EMV) (Continued) Example: There is a negative risk (threat) that has a 25% probability of prohibiting the execution of the work package ABC and if that risk occurs the impact of not having executed the package is estimated at $10,000. EMV = 25% * $10,000 = -$2,500. There is also a positive risk (opportunity) that has a 10% probability of speeding up the execution of the work package ABC and if that happens it will save the project $15,000. EMV = 10% * $15,000 = +$1,500. Therefore, the EMV for the work package ABC is $1,500 - $2,500 = -$1,000 PMP, PMBOK are registered marks of the Project Management Institute, Inc.

364

PMP® Exam Preparation Risk Classification Risk categorization is the grouping of project risks that can support: Risk identification by acting as a check list Risk response planning as many of the risks in a particular category can often be addressed with the same response strategy. Project risks can be categorized as: External risks i.e. an unstable legal or regulatory environment, labour issues, changing owner priorities, or weather. Internal (organizational) risks such as cost, time, and scope objectives that are internally inconsistent, lack of prioritization of projects, inadequacy or interruption of funding, and resource conflicts with other projects in the organization.

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365

PMP® Exam Preparation Risk Classification (Continued) Technical risks Such as reliance on unproven or complex technology, unrealistic performance goals, changes to the technology used or to industry standards during the project. Project Management risks Such as poor allocation of time and resources, inadequate quality of the project plan, poor use of project management disciplines. Risk categories can be represented by a Risk Breakdown Structure (RBS):

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Project Risks Internal Risks

External Risks Funding

Regulatory Risks

Project Management

Weather

366

PMP® Exam Preparation Decision Tree Analysis An assessment of the data using the decision tree method to evaluate various possible outcomes.

Allows decision-makers to factor in both probability and impact for each branch of every decision under consideration Indicates the decision that will provide the greatest expected monetary value (EMV) when all the uncertain implications of costs, rewards and subsequent decisions are quantified. To use decision tree analysis in Project Risk Management, you need to: Document a decision in a decision tree Assign a probability of occurrence for the risk pertaining to that decision Assign monetary value of the impact of the risk if it occurs Compute the expected monetary value for each decision path. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

367

PMP® Exam Preparation Decision Tree Example The diagram depicts the decision tree. The EMV (expected monetary value) associated with each risk is calculated by multiplying the probability of the risk by the impact. Build new product: EMV = ($5m x 0.5) - $0.5m = $2,000,000 Buy new product: EMV = ($3m x 0.8) - $0.8m = $1,600,000 Retain legacy product EMV = ($0.5m x 1.0) - 0 = $500,000 PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Probability of Success

Retain legacy Product, buy or build?

0.50

Market Failure Revenue $0

0.50

Success Revenue $ 5 m

0.20

Market Failure Revenue $0

0.80

Market Success Revenue $ 3 m

0.00

Market Failure Revenue $000

1.00

Market Success Revenue $500,000

Build new product cost $500,000

Buy new product cost $800,000

Retain legacy Product cost $0

368

PMP® Exam Preparation Risk & Contingency Reserve Reserve

Contingency Reserve

Budgeted Cost Management Reserve Planned Cost Contingency Reserve Project Control A/C

Works Activities

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Contingency Reserve is: Established to deal with unknown risks and accepted known risks. Might be in the form of additional time, money or resources. Covers risk events that are not accounted for in the project baseline for duration and cost estimations. Determined by the potential impact of the risk but should include enough to implement any contingency plans as well as a buffer for dealing with unidentified risks. 369

PMP® Exam Preparation Plan Risk Management Planning

Plan Risk Management is the process of determining how to conduct Risk Management for the project at hand and document it in the Risk Management Plan.

Project Risk Management

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgement

Risk Management Plan

Project Management Plan

Data Analysis

All Components

Project Documents Stakeholder Register

Stakeholder Analysis

Meetings

Enterprise Environmental Factors Organizational Process Assets

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370

PMP® Exam Preparation Planning

Identify Risks Identifying risks is the process of identifying and documenting the risks that might occur for a given project.

Inputs

Project Risk Management

Tools & Techniques

Outputs

Project Management Plan Requirements Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Resource Management Plan Risk Management Plan Scope Baseline Schedule Baseline Cost Baseline

Expert Judgement

Risk Register

Data Gathering Brainstorming Checklists Interviews

Project Documents Assumption Log Cost Estimates Duration Estimates Issue Log Lessons Learned Register Requirements Documentation Resource Requirements Stakeholder Register

Agreements

Data Analysis Assumptions and Constraints Analysis Root Cause Analysis SWOT Analysis

Risk Report

Interpersonal and Team Skills Facilitation

Project Document Updates

Procurement Documentation Enterprise Environmental Factors Organizational Process Assets

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Assumption Log Issue Log Lessons Learned Register

Prompt Lists PESTLE

Meetings

371

PMP® Exam Preparation Planning

Perform Qualitative Risk Analysis Used to estimate the overall probability for risks to occur and their impact and to prioritize them accordingly for further analysis.

Project Risk Management

Inputs

Tools & Techniques

Outputs

Project Management Plan

Expert Judgement

Project Documents Updates Assumption Log Issue Log Risk Register Risk Report

Risk Management Plan

Project Documents Assumption Log Risk Register

Enterprise Environmental Factors

Organizational Process Assets

Data Gathering Interviews Data Analysis Risk Data Quality Assessment Risk Probability & Impact Assessment Assessment of other risk parameters Interpersonal and Team Skills Facilitation

Risk Categorization

Data Representation Probability and Impact Chart Hierarchical Charts Meetings

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372

PMP® Exam Preparation Perform Quantitative Risk Analysis The process used to analyze numerically the effect of prioritized risks on overall project objectives.

Planning Inputs

Tools & Techniques

Project Management Plan

Expert Judgement

Risk Management Plan Scope Baseline Schedule Baseline Cost Baseline

Project Documents Assumption Log Basis of Estimates Cost Estimates Cost Forecasts Schedule Forecasts Duration Estimates Milestone List Resource Requirements Risk Register Risk Report Enterprise Environmental Factors

Project Risk Management Outputs

Project Documents Updates Risk Report

Data Gathering Interviews Interpersonal and Team Skills Facilitation Data Analysis Simulations Sensitivity Analysis Decision Tree Analysis Influence Diagram

Representations of Uncertainty Probability Distribution (T/B)

Organizational Process Assets

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373

PMP® Exam Preparation Planning

Plan Risk Responses The process used to prepare a risk response plan in order to increase the positive impact and/or decrease the negative impact of risks on the project.

Project Risk Management

Inputs

Tools & Techniques

Outputs

Project Management Plan

Expert Judgement

Change Requests

Resource Management Plan Risk Management Plan Cost Baseline

Data Gathering Interviews

Interpersonal and Team Skills Project Documents Lessons Learned Register Project Schedule Project Team Assignments Resource Calendars Risk Register Risk Report Stakeholder Register

Facilitation

Strategies for Threats Escalate, Avoid, Transfer, Mitigate, Accept

Strategies for Opportunities

Project Management Plan Updates

Schedule Management Plan Cost Management Plan Quality Management Plan Resource Management Plan Procurement Management Plan Scope Baseline Schedule Baseline Cost Baseline

Escalate, Exploit, Share, Enhance, Accept

Contingent Response Strategies Enterprise Environmental Factors

Strategies for Overall Project Risk Avoid/Exploit, Mitigate/Enhance, Transfer/Share, Accept

Data Analysis Organizational Process Assets

Alternatives Analysis Cost-benefit Analysis

Decision Making

Project Documents Updates Assumption Log Cost Forecasts Lessons Learned Register Project Schedule Project Team Assignments Risk Register Risk Report

Multi-criteria Decision Analysis

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374

PMP® Exam Preparation Planning

Plan Risk Responses

Strategies for Threats

Strategies for Opportunities

Avoid

Exploit

Transfer

Share

Mitigate

Enhance

Project Risk Management

Escalate Accept

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375

PMP® Exam Preparation Implement Risk Responses

Executing

The process used for implementing agreed-upon risk response plans. It ensures that agreed-up risk responses are executed as planned in order to address over project risk exposure, minimize individual projects threats and maximize individual project opportunities. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Project Risk Management

Inputs

Tools & Techniques

Outputs

Project Management Plan Risk Management Plan

Expert Judgment

Change Requests

Project Documents Lessons Learned Register Risk Register Risk Report

Interpersonal and Team Skills

Organizational Process Assets

Project Management Information System

Influencing

Project Documents Updates Issue Log Lessons Learned Register Project Team Assignments Risk Register Risk Report

376

PMP® Exam Preparation Monitor Risks The process used for tracking identified risks, identifying new risks, and evaluating the effectiveness of executing risk responses throughout the lifecycle of the project.

Monitoring & Controlling

Project Risk Management

Inputs

Tools & Techniques

Outputs

Project Management Plan Risk Management Plan

Data Analysis Technical Performance Analysis Reserve Analysis

Work Performance Information

Project Documents Issue Log Lessons Learned Register Risk Register Risk Report

Audits

Work Performance Data

Meetings

Work Performance Reports

Change Requests

Project Management Plan Updates Any Component Project Documents Updates Assumption Log Issue Log Lessons Learned Register Risk Register Risk Report Organizational Process Assets Updates

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377

PMP® Exam Preparation Project Risk Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Risk Management processes are applied. The various aspects that may be considered are : Project size Project complexity Project importance Development approach

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378

Questions - MODULE 11

Project Risk Management

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379

PMP® Exam Preparation Questions Module 11 Question – 1 The Risk Register is the Output of which process? A. Plan Risk Management B. Perform Qualitative Risk Analysis C. Identify Risks D. Plan Risk Responses

Question – 2 A negative risk has a 20% probability of prohibiting the execution of the work package with an impact of $20,000. The same work package has a positive risk with a 10% probability and will save the project $25,000. What is the EMV value for the work package? A. - $1,500 C. $2,000 B. $1,500 D. - $2,000 PMP, PMBOK are registered marks of the Project Management Institute, Inc.

380

PMP® Exam Preparation Question – 3 The Risk Register has many fields such as name, response plan, category, impact, and probability. However, the initial categorization of risk happens in: A. Plan Risk Management B. Plan Risk Responses C. Perform Qualitative Risk Analysis D. Identify Risks Question – 4 Both the Schedule Management Plan and the Cost Management Plan are Inputs to which two Processes? A. Perform Qualitative Risk Analysis B. Plan Risk Management C. Identify Risks D. Both B and C PMP, PMBOK are registered marks of the Project Management Institute, Inc.

381

PMP® Exam Preparation Question – 5 Which one of the following processes give a numeric value weight in monetary terms? A. Plan Risk Management B. Identify Risks C. Perform Qualitative Risk Analysis D. Perform Quantitative Risk Analysis Question – 6 You are planning to take a healthcare insurance plan for your family. What kind of risk response strategy are you adopting? A. Accept B. Transfer C. Mitigate D. Avoid

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382

End of Module 11

Project Risk Management Based on the PMBOK® Guide - Sixth Edition

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383

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 385

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

386

MODULE 12 Project Procurement Management Based on the PMBOK® Guide - Sixth Edition

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387

Learning Objectives – Project Procurement Management In this module, we will cover: What is a Contract?

Different Types of Contracts Advantages and Disadvantages of contract types Key Terminology in Project Procurement Management Processes of the Project Procurement Management Knowledge Area Plan Procurement Management Conduct Procurements Control Procurements

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388

PMP® Exam Preparation Contract A legally enforceable agreement between two or more parties. Contracts contain terms and conditions that set the rights and obligations of the contracting parties. The aim of a procurement contract is to obtain the services or products as agreed in the contract to the satisfaction of all parties to the contract. Procurement Management helps ensure that the products and components not made by a company but purchased from outside the project will not negatively impact on the quality of the project’s final product. The procurement manager or office (contract manager) is normally responsible for creating and managing the procurement contract.

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389

PMP® Exam Preparation Contract Types Fixed Price (FP or FFP) "Firm fixed price" also called "Lump Sum“. The simplest type of contract. The buyer specifies the work required and the supplier quotes a price. The seller assumes almost all of the risks of this contract. Time and Materials (T&M) Simple billing at pre-negotiated rates for labor and materials on a project. Rates normally include a certain percentage mark-up for overheads or profit. In this arrangement the buyer carries most of the risk. Cost Reimbursable (CR) In this type of contract the buyer agrees to reimburse the seller’s actual costs. Added to that is a fee that typically represents the seller’s profit. In this type of contract the buyer carries most of the risk.

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390

PMP® Exam Preparation Advantages & Disadvantages – Fixed Price Contract Advantages of fixed price contracts: Less work for the buyer to manage The seller has a strong incentive to control costs Companies normally have experience with this type of contract The buyer knows the total price at project start Disadvantages of fixed price contracts include: The seller may underprice the work and try to make up profits on change orders The seller may not complete some of the contract statement of work once the contract becomes unprofitable More work for the buyer to write the contract statement of work Can be more expensive than cost reimbursable contracts The seller will have to provide for risk in the price quoted PMP, PMBOK are registered marks of the Project Management Institute, Inc.

391

PMP® Exam Preparation Advantages & Disadvantages – Time & Materials Contract Advantages of time & materials contracts include: Quick to create Good choice when hiring "bodies" or people to augment staffing Disadvantages of time & materials contracts include: Seller has no incentive to control cost Requires monitoring of daily output More suitable for small projects only

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392

PMP® Exam Preparation Advantages & Disadvantages – Cost Reimbursable Contract Advantages of cost reimbursable contracts include: Simpler contract statement of work Usually requires less work to define the scope than fixed price Generally lower cost than fixed price because the seller does not have to “add on” for risk Disadvantages of cost reimbursable contracts include: Require auditing of the seller's invoices Require more work for the buyer to manage Seller has only a moderate incentive to control costs Total price is unknown

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393

PMP® Exam Preparation Plan Procurement Management Outline how procurement management will be conducted on the project. Develop make/buy decision making and seller selection Processes.

Planning Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgment

Procurement Management Plan

Business Documents

Data Gathering

Procurement Strategy

Business Case Benefits Management Plan Project Management Plan Scope Management Plan Quality Management Plan Resource Management Plan Scope Baseline

Project Documents Milestone List Project Team Assignments Resource Requirements Requirement Documentation Requirement Traceability Matrix Resource Requirements Risk Register Stakeholder Register

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Project Procurement Management

Market Research

Data Analysis Make-or-Buy Analysis

Bid Documents

Source Selection Analysis

Procurement Statement of Work

Meetings

Source Selection Criteria

Make-or-Buy Decisions Independent Cost Estimates Change Requests

Enterprise Environmental Factors

Project Documents Updates

Organizational Process Assets

Organizational Process Assets Updates 394

PMP® Exam Preparation Executing

Conduct Procurements Conduct Procurements is the process of obtaining responses from sellers, selecting sellers, and awarding contract(s) to the selected seller(s).

Inputs Project Management Plan Scope Management Plan Requirements Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Configuration Management Plan Cost Baseline Project Documents Lessons Learned Register Project Schedule Requirements Documentations Risk Register Stakeholder Register

Procurement Documentation Seller Proposals

Enterprise Environmental Factors Organizational Process Assets

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Project Procurement Management

Tools & Techniques

Outputs Selected Sellers

Expert Judgement

Agreements Change Requests

Advertising

Bidder Conferences Data Analysis Proposal Evaluation

Interpersonal and Team Skills Negotiation

Project Management Plan Updates Requirements Management Plan Quality Management Plan Communications Management Plan Risk Management Plan Procurement Management Plan Scope Baseline Schedule Baseline Cost Baseline Project Documents Updates Lessons Learned Register Requirements Documentation Requirement Traceability Matrix Resource Calendars Risk Register Stakeholder Register Organizational Process Assets Updates

395

PMP® Exam Preparation Monitoring & Controlling

Control Procurements The process of managing procurement relationships, monitoring contract performance and making changes & corrections as appropriate and closing out contracts.

Inputs

Tools & Techniques

Project Management Plan Requirements Management Plan Risk Management Plan Procurement Management Plan Change Management Plan Schedule Baseline

Expert Judgment

Project Documents

Claims Administration

Assumption Log Lessons Learned Register Milestone List Requirements Documentation Requirements Traceability Matrix Risk Register Stakeholder Register

Work Performance Information Procurement Documentation Updates Change Requests Data Analysis Performance Reviews Earned Value Analysis Trend Analysis

Procurement Documentation

Inspection

Approved Change Requests

Audits

Enterprise Environmental Factors

Outputs Closed Procurements

Agreements

Work Performance Data

Project Procurement Management

Project Management Plan Updates Risk Management Plan Procurement Management Plan Schedule Baseline Cost Baseline Project Documents Updates Lessons Learned Register Resource Requirements Requirements Traceability Matrix Risk Register Stakeholder Register

Organizational Process Assets Updates

Organizational Process Assets PMP, PMBOK are registered marks of the Project Management Institute, Inc.

396

PMP® Exam Preparation Project Procurement Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Procurement Management processes are applied. The various aspects that may be considered are : Complexity of procurement Physical location Governance and regulatory environment Availability of contractors

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

397

Questions - MODULE 12

Project Procurement Management

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398

PMP® Exam Preparation Questions Module 12 Question – 1 Which of the following contracts is not of fixed type? A. Firm Fixed Price C. Fixed Price with Economic Price Adjustment B. Fixed Price Incentive Fee D. Fixed Price with Fixed Fee Question – 2 As project manager you found that you need to automate certain test cases and perform analysis with your team to find out whether to build or buy certain software. Which Tools and Techniques from which Process are you working on? A. Checking on the Procurement Documents in Plan Procurement B. Make or buy analysis in Plan Procurement C. Build or buy analysis in Plan Procurement D. Checking on the Source Selection Criteria PMP, PMBOK are registered marks of the Project Management Institute, Inc.

399

PMP® Exam Preparation Question – 3 Which type of contract poses minimal risk to the seller? A. T & M (Time & Material) B. FFP (Firm Fixed Price) C. CPIF (Cost Plus Incentive Fee) D. CP – EPA (Cost Plus Economic Price Adjustment) Question – 4 Which process area falls into the Monitoring and Controlling Process Group during Procurement Management? A. Plan Procurement Management B. Control Procurements C. Administer Procurements D. Conduct Procurements

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400

PMP® Exam Preparation Question – 5 You have completed your project and delivered the project to the buyer. The buyer has accepted the deliverables, but is not happy with the result. What is the correct statement about the contract? A. Contract is incomplete B. Lack of terms and conditions in the contract C. Contract is complete and can be closed D. Contract is to be renewed Question – 6 A Procurement Audit happens in which Process? A. Plan Procurement Management B. Conduct Procurements C. Control Procurements D. Administer Procurements

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401

End of Module 12

Project Procurement Management Based on the PMBOK® Guide - Sixth Edition

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

402

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 404

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

405

MODULE 13 Project Stakeholder Management Based on the PMBOK® Guide - Sixth Edition

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

406

Learning Objectives – Project Stakeholder Management In this module, we will cover: Who is a Stakeholder? Stakeholder Register Various Analytical Techniques for Stakeholder Analysis Managing stakeholder engagement and relationship Key Terminology in Project Stakeholder Management Processes of the Project Stakeholder Management Knowledge Area Identify Stakeholders Plan Stakeholder Engagement Manage Stakeholder Engagement Monitor Stakeholder Engagement PMP, PMBOK are registered marks of the Project Management Institute, Inc.

407

PMP® Exam Preparation Stakeholder and Stakeholder Management Stakeholder: Anyone who can impact the project or can be impacted by the project in a positive or negative way. Some stakeholders may have a limited ability to influence the project, whereas others may be a significant influence on the Project. Stakeholders can be people, groups or organizations. Stakeholder Management: Includes processes required to identify various stakeholders, analyse expectations and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution. Includes communication with stakeholders to understand needs and expectations, managing conflicting interests and fostering appropriate stakeholder engagement. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

408

PMP® Exam Preparation Initiating

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

Project Stakeholder Management

Inputs

Tools & Techniques

Outputs

Project Charter

Expert Judgment

Stakeholder Register

Business Documents Business Case Benefits Realization Plan

Data Gathering Questionnaire and Surveys Brainstorming

Change Requests

Project Management Plan Communications Management Plan Stakeholder Engagement Plan

Data Analysis Stakeholder Analysis

Project Documents Change Log Issue Log Requirements Documentation

Data Representation Stakeholder Mapping/Representation

Agreements Enterprise Environmental Factors

Project Management Plan Updates Requirements Management Plan Communications Management Plan Risk Management Plan Stakeholder Engagement Plan

Meetings Project Documents Updates Assumption Log Issue Log Risk Register

Organizational Process Assets

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409

PMP® Exam Preparation Stakeholder Analysis A technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interest should be taken into account in 3 steps. Step – 1: Identify all the stakeholders with their roles, interests, expectations, influence etc. The later part is typically done by interviewing the identified stakeholders. Step – 2: Identify the potential impact each stakeholder could generate and classify them so as to define an appropriate strategy. Step – 3: Assess how key stakeholders are likely to react or respond in various situations, in order to plan how to influence them to enhance their support and mitigate potential negative impacts.

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410

PMP® Exam Preparation Stakeholder Analysis Grids

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High

Keep Satisfied

Manage Closely

Power

Various Grids can be defined during Stakeholder Analysis. • Power/Interest Grid: Level of authority (Power) and Level of concern (Interest) • Power/Influence Grid: Level of authority (Power) and Level of active involvement (Influence) • Influence/Impact Grid: Level of active involvement (Influence) and their ability to affect changes to a project’s planning or execution (Impact) • Salience Model: Describes classes of stakeholders based on their power (ability to impose their will), urgency (need for immediate attention) and legitimacy (appropriate involvement)

Monitor

Keep Informed

Low Low

High

Interest

411

PMP® Exam Preparation Stakeholder Register Stakeholder Register: The primary output of the Identify Stakeholder Process Contains all information related to the stakeholders It can contain: Identification Information: Name, Organizational Position, Location, Role in the Project and Contact Information Assessment Information: Major requirements, main expectations, potential influence on the project etc. Stakeholder Classification: Can be internal or external, can be a supporter, resistor or neutral. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

412

PMP® Exam Preparation Planning

Plan Stakeholder Engagement The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests and potential impact on the project success. Provides a clear and actionable plan to interact with the stakeholders to support interest in the project. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Inputs

Tools & Techniques

Project Charter

Expert Judgment

Project Management Plan Resource Management Plan Communications Management Plan Risk Management Plan

Data Gathering Benchmarking

Project Documents Assumption Log Change Log Issue Log Project Schedule Risk Register Stakeholder Register

Data Analysis Assumptions and Constraints Analysis Root Cause Analysis

Agreements

Decision Making Prioritization/Ranking

Enterprise Environmental Factors

Data Representation Stakeholder Engagement Assessment Matrix Mind Mapping

Organizational Process Assets

Meetings

Project Stakeholder Management Outputs

Stakeholder Engagement Plan

413

PMP® Exam Preparation Analytical Techniques Analytical Techniques: It is used to know the current engagement level of stakeholders as compared to the planned engagement. Engagement levels can be: Unaware: Unaware of project and potential impacts Resistant: Aware of project and potential impacts, but resistant to change Neutral: Aware of project, but neither supports or is resistant Supportive: Aware of project and potential impacts and supportive of change Leading: Aware of project and potential impact and actively engaged in ensuring project success

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414

PMP® Exam Preparation Stakeholders Engagement Assessment Matrix The current and desired engagement levels of the stakeholders can be put into a matrix known as stakeholders engagement assessment matrix. “C” – Indicates the current engagement level of the stakeholder. “D” - Indicates the desired engagement level of the stakeholder. The project team identifies the desired engagement level. Stakeholder

Unaware

Resistant

Neutral

Michael John Sarah

C

Supportive

Leading

C

D

D

C

D

Ana

C, D

Stakeholders Engagement Assessment Matrix "A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute, Inc., 2017, Figure 13-6, Page 522." PMP, PMBOK are registered marks of the Project Management Institute, Inc.

415

PMP® Exam Preparation Stakeholders Engagement Plan Stakeholder Engagement Plan identifies the management strategies to effectively engage stakeholders. It can be formal or informal, detailed or broadly documented. In addition to data from stakeholder register, Stakeholder Engagement Plan provides: Desired and current engagement levels Scope and impact of change to stakeholders Identified relationships and potential overlap between stakeholders Stakeholder communications requirement (current phase for multi-phase project) Information to be distributed – includes format, content, language, and level of detail Reason for distribution of that information and expected impact on engagement Primary metrics for engagement such as time frame and frequency of distribution; stakeholder participation, positive contribution towards project’s objectives Method for updating and refining the plan as the project progresses Stakeholder engagement plan is a key plan as it is followed by the project manager to maintain stakeholder relationships. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

416

PMP® Exam Preparation Executing

Manage Stakeholder Engagement The process of communicating and working with stakeholders to meet their needs and expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle. Allows the project manager to increase support and minimize resistance increasing the chances of project success.

Project Stakeholder Management

Inputs

Tools & Techniques

Outputs

Project Management Plan Communications Management Plan Risk Management Plan Stakeholder Engagement Plan Change Management Plan

Expert Judgment

Change Requests

Communication Skills

Project Management Plan Updates Communications Management Plan Stakeholder Engagement Plan

Project Documents Change Log Issue Log Lessons Learned Register Stakeholder Register

Feedback

Interpersonal and Team Skills Enterprise Environmental Factors

Organizational Process Assets

Conflict Management Cultural Awareness Negotiation Observation/Conversation Political Awareness

Project Documents Updates Change Log Issue Log Lessons Learned Register Stakeholder Register

Ground Rules Meetings

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417

PMP® Exam Preparation Managing Stakeholders Engagement and Relationship Stakeholders can not be managed. Only stakeholder expectations can be managed. Stakeholder engagement is a continuous activity because stakeholders and their attitudes change as the project progresses. Stakeholder engagement is often a direct and indirect communication between the stakeholders and the project manager/team. It is a two-way relationship and process. Stakeholder register, Stakeholder Engagement Plan and communication management plan are continuously referenced and evaluated. They are also updated as new stakeholders are identified or communication requirements of the stakeholders’ change. Beyond communication stakeholder engagement involves: Negotiation and facilitating consensus towards project goals and objectives Commitment to resources Influencing to support the project & ensuring ongoing support throughput the project Project manager uses various interpersonal skills and management skills to engage the project stakeholders. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

418

PMP® Exam Preparation Monitoring & Controlling

Monitor Stakeholder Engagement The process of monitoring project stakeholder relationships and tailoring strategies and plans for engaging stakeholders. Stakeholder engagement activities are included in the Stakeholder Engagement Plan and are continuously monitored.

Inputs

Tools & Techniques

Project Management Plan Resource Management Plan Communications Management Plan Stakeholder Engagement Plan

Alternative Analysis Root Cause Analysis Stakeholder Analysis

Project Documents Issue Log Lessons Learned Register Project Communications Risk Register Stakeholder Register Work Performance Data Enterprise Environmental Factors Organizational Process Assets

Outputs

Data Analysis

Decision Making Multi-criteria Decision Analysis Voting

Work Performance Information

Change Requests

Data Representation Stakeholder Engagement Assessment Matrix

Communication Skills Feedback Presentation

Interpersonal and Team Skills Active Listening Cultural Awareness Leadership Networking Political Awareness

Meetings PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Project Stakeholder Management

Project Management Plan Updates Resource Management Plan Communications Management Plan Stakeholder Engagement Plan

Project Documents Updates Issue Log Lessons Learned Register Project Communications Risk Register Stakeholder Register

419

PMP® Exam Preparation Project Stakeholder Management Tailoring:

Every project is unique and hence the project management team should look for the need to tailor the way Project Stakeholder Management processes are applied. The various aspects that may be considered are : Stakeholder diversity Complexity of stakeholder relationships Communication technology

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

420

Questions - MODULE 13

Project Stakeholder Management

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421

PMP® Exam Preparation Questions Module 13 Question – 1 Updates to Issue Log is an Output of which Processes of Stakeholder Management? A. Identify Stakeholders B. Manage Stakeholder Engagement C. Monitor Stakeholder Engagement D. All of the above

Question – 2 There are five levels of stakeholder engagement. What are they? A. Unaware, Resistant, Neutral, Supportive, Influencing B. Aware, Resistant, Neutral, Supportive, Leading C. Unaware, Resistant, Neutral, Supportive, Leading D. Aware, Resistant, Interested, Supportive, Leading PMP, PMBOK are registered marks of the Project Management Institute, Inc.

422

PMP® Exam Preparation Question – 3 A Salience Model is used as one of the classification models for Stakeholder Management. Which combination does it have? A. Power, Influence B. Power, Interest C. Influence, Impact D. Power, Legitimacy Question – 4 Which one of the following is not an engagement level of the stakeholder, performed with the Analytical techniques tool? A. Resistant B. Leading C. Directing D. Supportive PMP, PMBOK are registered marks of the Project Management Institute, Inc.

423

PMP® Exam Preparation Question – 5 Interpersonal and Team Skills, and Communication Skills are used in? A. Plan Stakeholder Engagement B. Manage Stakeholder Engagement C. Monitor Stakeholder Engagement D. Both B and C Question – 6 Data Analysis is used in all of the Processes of the Stakeholder Management Knowledge Area, other than? A. Identify Stakeholders B. Plan Stakeholder Engagement C. Manage Stakeholder Engagement D. Monitor Stakeholder Engagement

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424

End of Module 13

Project Stakeholder Management Based on the PMBOK® Guide - Sixth Edition

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

425

PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Scuedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 427

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

428

MODULE 14 Ethics & Professional Conduct Based on the PMBOK® Guide - Sixth Edition

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

429

Learning Objectives - Ethics & Professional Conduct In this module, we will cover: PMI’s Code of Ethics and Professional Conduct Vision and purpose of the Code To whom does the Code apply? Structure of the Code Aspirational and Mandatory Conduct Responsibility and Ethics Complaints Description of Respect, Fairness and Honesty

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

430

PMP® Exam Preparation PMI’s Code of Ethics and Professional Conduct Project professionals interact with many different types of people, and often are faced with various ethical dilemmas throughout their careers: Interpersonal project team conflicts Challenges with project sponsors Vendor negotiations Cultural differences Government regulations Deciding what is ethical can be challenging, and the answers may differ depending on your organization and culture. To provide some guidance, PMI volunteers helped to develop the PMI Code of Ethics and Professional Conduct. All PMI members and credential holders must sign the code, agreeing to adhere to a high standard of ethical behavior. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

431

PMP® Exam Preparation Vision and purpose of the Code The following excerpt from the Code explains its vision and purpose: As practitioners of project management, we are committed to doing what is right and honorable. We set high standards for ourselves and we aspire to meet these standards in all aspects of our lives - at work, at home, and in service to our profession. This Code of Ethics and Professional Conduct describes the expectations that we have of ourselves and our fellow practitioners in the global project management community. It articulates the ideals to which we aspire as well as the behaviors that are mandatory in our professional and volunteer roles. The purpose of this Code is to instill confidence in the project management profession and to help an individual become a better practitioner. We do this by establishing a profession-wide understanding of appropriate behavior. We believe that the credibility and reputation of the project management profession is shaped by the collective conduct of individual practitioners. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

432

PMP® Exam Preparation To whom does the Code apply? The Code of Ethics and Professional Conduct applies to:

All PMI members Individuals who are not members of PMI but meet one or more of the following criteria: Non-members who hold a PMI certification Non-members who apply to commence a PMI certification process Non-members who serve PMI in a volunteer capacity

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

433

PMP® Exam Preparation Structure of the Code The Code of Ethics and Professional Conduct is divided into sections that contain standards of conduct which are aligned with the four values that were identified as most important to the project management community. Finally, a glossary can be found at the end of the standard. The glossary defines words and phrases used in the Code. The values that the global project management community defined as most important were: Responsibility Respect Fairness Honesty This Code affirms these four values as its foundation. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Aspirational and Mandatory Conduct Each section of the Code of Ethics and Professional Conduct includes both aspirational standards and mandatory standards. The aspirational standards describe the conduct that we strive to uphold as practitioners. Although adherence to the aspirational standards is not easily measured, conducting ourselves in accordance with these is an expectation that we have of ourselves as professionals—it is not optional. The mandatory standards establish firm requirements, and in some cases, limit or prohibit practitioner behavior. Practitioners who do not conduct themselves in accordance with these standards will be subject to disciplinary procedures before the PMI’s Ethics Review Committee.

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PMP® Exam Preparation Responsibility - Aspirational Aspirational Standards

As practitioners in the global project management community: We make decisions and take actions based on the best interests of society, public safety, and the environment. We accept only those assignments that are consistent with our background, experience, skills, and qualifications. We fulfil the commitments that we undertake – we do what we say we will do. When we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Responsibility - Aspirational Aspirational Standards

We accept accountability for any issues resulting from our errors or omissions and any resulting consequences. We protect proprietary or confidential information that has been entrusted to us.

We uphold this Code and hold each other accountable to it.

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PMP® Exam Preparation Responsibility - Mandatory Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: Regulations and Legal Requirements: We inform ourselves and uphold the policies, rules, regulations and laws that govern our work, professional, and

volunteer activities. We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct. Ethics Complaints:

We bring violations of this Code to the attention of the appropriate body for resolution. We only file ethics complaints when they are substantiated by facts. We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation 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 - an environment where diverse perspectives and views are encouraged and valued. Respect: Aspirational Standards As practitioners in the global project management community: We inform ourselves about the norms and customs of others and avoid engaging in behaviors they might consider disrespectful. We listen to others’ points of view, seeking to understand them. We approach directly those persons with whom we have a conflict or disagreement. We conduct ourselves in a professional manner, even when it is not reciprocated. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Description of Respect Respect: Mandatory Standards

As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: We negotiate in good faith. 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. We do not act in an abusive manner toward others. We respect the property rights of others.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation 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. Fairness: Aspirational Standards As practitioners in the global project management community: We demonstrate transparency in our decision-making process. We constantly re-examine our impartiality and objectivity, taking corrective action as appropriate. We provide equal access to information to those who are authorized to have that information. We make opportunities equally available to qualified candidates.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Description of Fairness Fairness: Mandatory Standards As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: In Conflict of Interest Situations We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders. 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.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Description of Fairness (Continued) Favouritism and Discrimination. 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. We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation. We apply the rules of the organization (employer, Project Management Institute, or other group) without favoritism or prejudice.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation 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. Honesty: Aspirational Standards As practitioners in the global project management community: We earnestly seek to understand the truth. We are truthful in our communications and in our conduct. We provide accurate information in a timely manner. We make commitments and promises, implied or explicit, in good faith. We strive to create an environment in which others feel safe to tell the truth.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Description of Honesty Honesty: Mandatory Standards

As practitioners in the global project management community, we require the following of ourselves and our fellow practitioners: 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. We do not engage in dishonest behavior with the intention of personal gain or at the expense of another.

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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End of Module 14

Ethics & Professional Conduct Based on the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation Course Book PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Table of Contents Module 1 An introduction to PMP® Certification Course Module 2 Project Management Framework Module 3 Project Management Processes Module 4 Project Integration Management Module 5 Project Scope Management PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Module 6 Project Schedule Management Module 7 Project Cost Management Module 8 Project Quality Management Module 9 Project Resource Management Module 10 Project Communications Management 448

Table of Contents Module 11 Project Risk Management Module 12 Project Procurement Management Module 13 Project Stakeholder Management

Module 14 Ethics & Professional Conduct Module 15 PMP® Examination Tips and Tricks PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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MODULE 15 PMP® Exam Tips and Tricks Based on the PMBOK® Guide - Sixth Edition

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PMP® Exam Preparation PMP® - Example Questions An accepted deadline for a project approaches. However, the project manager realizes that only 75% of the work has been completed. The project manager then issues a change request. What should the change request authorize?

Additional resources using the contingency fund Escalation approval to use contingency funding Team overtime to meet schedule Corrective action based on causes

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation PMP® - Example Questions The project manager is also responsible to encourage continuous process improvement during the life of the project. Which of the following is a valid tool or technique to assist the project manager to assure the identification and success of the process improvements? Change control system

Process Analysis Benchmarking Configuration management system

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PMP® Exam Preparation PMP® - Example Questions The project manager meets with the project team to review lessons learned from previous projects. In what activity is the team involved? Performance Management Scope Identification Risk Identification Project team status meeting

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PMP® Exam Preparation EV = 240,000, AC = 260,000, PV = 250,000, SPI = 0.96, BAC = 700,000. How much is your new ETC assuming that current variances are typical? PV 250,000 EV 240,000

AC 260,000 BAC 700,000

EV 240,000

ETC = ?

CPI=EV/AC = 240000/260000 = 0.92 ETC = (BAC - EV) / CPI = (700000 - 240000) / 0.92 = 500000 PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation PMP® - Tricky Test Questions Your team size will go from 12 to 11 people. How many fewer communication channels are there on your project? Number of Communication Channels = n ( n - 1 ) / 2 For 12 members:

12 (12 - 1) / 2 = 66

For 11 members:

11 (11 - 1) / 2 = 55

By reducing the number of people by 1 you will reduce the number of communications channels by 11. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation PMP® - Tricky Test Questions EV = 105 and SPI = 0.9375. How much is the Schedule Variance (SV)? SV = EV - PV = 105 - ? SPI = EV / PV PV = EV / SPI = 105/0.9375 = 112 SV = EV - PV = 105 - 112 = -7

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PMP® Exam Preparation Suggestions The following are some suggestions on how to make the exam preparation process easier and more enjoyable: Take practice exams and look at what you got right, what you got wrong, and what you've learned since your previous attempt. Avail of or use more simulation exams from the Computer Based Training (CBT) courses available, and always choose the best resource. Make sure you are using resources based on the PMBOK® Guide - Sixth Edition. Homework The high-level ordered lists are:

The 5 Process Groups PMP, PMBOK are registered marks of the Project Management Institute, Inc.

The 10 Knowledge Areas

The 47 component Processes 457

PMP® Exam Preparation Suggestions on key terms to know The following are some key terms you need to know: Constraints Assumptions Historical information (always an Input) Organizational policies (always an Input) Organizational procedures (almost always a Technique) Corrective actions Change Requests

Work Breakdown Structure (WBS) Decomposition Expert Judgment Project Charter Scope Statement Statement of Work (SOW)

Also important to know and understand where each process is in relation to the Process Group it belongs to and the Knowledge Area it is in. Ref Page 25 in the PMBOK® Guide - Sixth Edition. PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Suggestions Be on the lookout for how the Processes for each of the following terms flow, how the Output of one process becomes the Input for another: Assumptions and constraints. Change requests and corrective action. The Management Plans (as an Output of Planning and an Input to both Execution and Control).

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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PMP® Exam Preparation Exam Tips What the exam DOES test Your knowledge of the PMI®'s processes and philosophy Your understanding of the many terms that are used to describe the processes Your ability to apply those processes in various contexts Your understanding of professional responsibility as it applies to the project management discipline Your ability to apply key formulas to scheduling, costing, estimating, and other problems. What the exam DOES NOT test Your project management experience Your common sense Your knowledge of industry practices PMP, PMBOK are registered marks of the Project Management Institute, Inc.

Your knowledge of software tools What you've learned in management school Your intelligence 460

End of Module 15 PMP® Exam Tips and Tricks & Quiz Answers Based on the PMBOK® Guide - Sixth Edition

PMP, PMBOK are registered marks of the Project Management Institute, Inc.

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Thank You and Good Luck !!!

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