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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
PMP® Certification Test Preparation
PMBOK® Fifth Edition
Presents
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
The PMP
®
Certification Test Preparation
Objectives
Provide a framework for structuring the ProjectManagement Body of Knowledge;
Identify the most generally accepted practiceswithin the discipline of project management;
Reveal “Exam Tips”;
Explain how to apply for and take the PMP® exam
Page i
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page iii
The World of Business Management Consultants
BristolPhoenix
Chicago
Hong Kong
Beijing
Shanghai
Tokyo
TaipeiMilan
Lisbon
Mumbai
Warsaw
Frankfurt
Houston
Brussels
Istanbul
Singapore
SeoulMoscowWashington DC
Vancouver
Atlanta
Bristol
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page iv
Our Learning Institutions
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Three Day Course Schedule
Page vii
Day Two
Planning Processes(continued)
Practice Test
Executing Processes
Day Three
Monitoring & ControllingProcesses
Practice Test
Closing Processes
Professional Responsibility
Preparing for the PMP
Day One
Introduction and overviewof PMI, PMP and PMBOK
Initiating Processes
Planning Processes
Sample Test
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Introduction and Overview of the PMP
®
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Organization of this Workbook
The PMBOK® Fifth Edition is organized by Knowledge Area.
We believe that people learn the same way
they work on-the-job: by project phases.
So, this Test Preparation workbook is organized
chronologically, start to finish, from Initiating aproject through to Closing the project.
Page 1
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Planning
Processes
ExecutingProcesses
Monitoring &
Controlling Processes
Initiating
Processes
Page 1
Organization is Chronological
Closing
Processes
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New Test and New PMBOK ® Edition
Page 2
The PMBOK® 5th Edition was released in January2013. The test changed again on July 31, 2013.
A new Knowledge Area was introduced:Stakeholder Management.
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Qualification Requirements
A minimum of 4500 hours PMexperience within the past 8
years
A minimum of 7500 hours PM
experience within the past 8years
35 contact hours(PDU’s) of PM
education+ =
Graduate, 4-Year Degree
Non-Graduate, or 2-Year Degree
Eligibility to takethe PMP®
examination
Page 2
This Course ID is E1078and Awards 24 PDU’s
The T&T CD ID is E1091and Awards 11 PDU’s
PMTestOnline is C4070
and Awards 11 PDU’s
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PMBOK Fifth Edition and the New Test
The PMBOK Fifth Edition was introduced in January 2013, and thenew fifth edition test started on July 31, 2013.
The PMP examination consists of 200 questions, with a four hourtime limit
That’s 72 seconds (or 1.2 minutes) per question
This training course will give you everything you need,
with a little self-study, to pass the PMP® examination
Visit www.pmi.org, download PMP Certification Handbook
Page 2
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PMBOK 5th Edition PMP Test Domain Content
Project Initiation 13%Project Planning 24%Project Execution 30%Project Monitoring & Control 25%
Project Closing 8%
Page 2
To pass, you need to get a minimum of 122
questions correct out of 200 questions (61%)
Pass rate on the 4th Edition test is about 74%
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http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspxLog in with your User Name and PasswordFollow the instructions
Submit your application to Project Management Institute (PMI)
http://www.pmi.org/info/PDC_PMPHandbook.pdf
PMI®
may audit when you pay your exam fee to PMI. If you cancel or reschedulewithin 30 days of the test, there is a fee of $70; within 2 days, you forfeit the entire fee.
Control is through audit
Schedule a test date with Prometrichttp://www.prometric.com/PMI/default.htm
Apply to PMI to take the test,Schedule a date with Prometric
Candidates have three (3) opportunities to pass the exam in one year. If theydo not pass any, they must wait one (1) year from the date of the last attempt.
Page 3
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Types of questions to expect
You are advised that a major purchased part on your projectwill be delayed. What do you do?
A. Ignore it. It will go awayB. Notify your bossC. Let the customer know about it and talk over optionsD. Meet with the team and identify alternatives
Questions requiring experience more than study
D. Meet with the team and identify alternatives
Page 4
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Types of questions to expect
Study show that every time you double the production of “widgets”, unit cost goes down by 10%. Based on the study,
the company concludes that the production of 4,000 “widgets”
will cost $19,000. This illustrates:
A. Learning curve effectsB. Law of diminishing returnsC. The 80/20 ruleD. Bottoms up cost estimating
Information that does not matter (distractors)
A. Learning curve effects
Page 4
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Types of questions to expect
Questions designed to make you make you think carefully
The theory “optimum quality level is obtained when
Incremental revenue from product improvement equalsincremental cost to secure it” comes from
A. Quality control analysisB. Marginal analysisC. Standard quality analysisD. Conformance analysis
B. Marginal Analysis
Page 4
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Types of questions to expect
Questions using unfamiliar words and expressions
Parking places, corner office/door, and a key to the executivebathroom are example of:
A. PerquisitesB. OverheadC. Herzberg’s motivators
D. Entitlements
A. Perquisites (aka “Perks”)
Page 5
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
Questions requiring understanding of the subject matter
Decomposing deliverables into smaller manageable activitiesIs complete when:
A. Project justification has been establishedB. Change requests have occurredC. Cost and duration estimates can be developed for each work
element at this levelD. Each work element is found in the WBS dictionary
C. Cost and duration estimates can be developedfor each work element at this level
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
Questions requiring study (memorization) more than
experience
Conflict resolution techniques that may be used on a projectinclude:
A. Withdrawing, compromising, controlling, and forcingB. Controlling, forcing, smoothing, and withdrawingC. Confronting, compromising, smoothing, and directingD. Smoothing, confronting, forcing and withdrawing
D. Smoothing, confronting, forcing and withdrawing
Page 5
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
New thinking about a known topic
In a matrix organization, information dissemination is mostlikely to be effective when?
A.Information flows both horizontally and verticallyB.The communication flows are kept simpleC.There is inherent logic in the type of matrix selectedD.Project managers and functional managers socialize
A. Information flows both horizontally and vertically
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
Questions requiring calculation and knowledge of formulae
A project was estimated to cost $1.5 million and scheduled to lastsix months. After three months, the earn value analysis showsthe following:
BCWP (EV) = $650,000
BCWS (PV) = $750,000ACWP (AC) = $800,000
What are the schedule and cost variances?
A. SV = +$100,000 - - - CV = +$150,000B. SV = +$150,000 - - - CV = -$100,000
C. SV = -$50,000 - - - - CV = +$150,000D. SV = -$100,000 - - - -CV = -$150,000
D. SV=-S100,000 : CV=-$150,000
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
Questions designed to take up your time
You’ve been engaged to manage a project. The estimated cost of the
project is $1,000,000. The project sponsor has approved this amount.Your earned value calculations indicate that the project will becompleted on time and under budget by $200,000. Based on your
calculation, your personal profit will decrease by $2,000. Givenestimated decrease in personal profit, what action should you take?
A. Invoice for the full $1,000,000 based on contract and to cover profitB. Add tasks to improve the outcome and increase the actual project costC. Inform the end-user that you can add features to the project in order to
use the entire budgetD. Communicate the projected financial outcome to the project sponsor
D. Communicate the outcome to the project sponsor
Page 6
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Types of questions to expect
Questions using acronyms you need to understand
There are several different types of network analysis tools fordetermining critical path. Which method for analysis is also calledMethod of Moments?
A. GERTB. CPMC. PERTD. Monte Carlo
C. PERT (Program Evaluation and Review Technique)
Extra
Mapping Process Groups to Knowledge Areas
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page 17
Mapping Process Groups to Knowledge AreasProcess Groups
Knowledge AreasInitiating Planning Executing Closing
Monitoring &
Controlling
4. Project IntegrationManagement
4.2 Develop ProjectManagement Plan
4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated
Change Control
5. Project Scope
Management
5.1
Collect Requirements5.2Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2Sequence Activities6.3Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
7. Project CostManagement
7.2 Estimate Costs7.3 Determine Budget
7.4 Control Costs
8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management11.2 Identify Risks
11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement
12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
Project Work4.1 Develop Project Charter
13.1 Identify Stakeholders
5.4 Create WBS
6.4
4.6 Close Project
or Phase
13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
7.1 Plan Cost Mgt.
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
PMBOK 5th Edition,
Table 3-1, Page 61
(47 Processes)
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Mind Maps: Integration
Handout
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Mind Maps: Scope
Handout
Scope
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Handout
Time
Mi d M C t
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Mind Maps: Cost
Handout
Project Q alit Management
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Mind Maps: Quality
Handout
Project Quality Management
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Mind Maps: Human Resource
Handout
Communication
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Handout
Communication
Ri k
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Handout
Risk
P t
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Handout
Procurement
Stakeholders
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Stakeholders
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
So, what is a project?
• A project is a temporary endeavor undertaken to create a
unique product, service or result.
• A program is a group of related projects, subprograms,and program activities managed in a coordinated way toobtain benefits not obtainable from managing them
individually.• A portfolio is a collection of projects, programs, and
operations managed as a group to achieve strategicobjectives.
• An operation is an organizational function performing theongoing execution of activities that produce the sameproduct or provide the same repetitive service
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Scope(Planned Results)
Resource(Budget)
Schedule(Time)
PMBOK 5th Edition, Page 6The Triple Constraint, plus some.
Page 8
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
Organizational Governance: Linkages
Strategic Planning
Management by Projects
Management of
Operations
Portfolio
Management
Program
Management
Project
Management
Processes,
Tools, Metrics
Page 8
PMBOK 5th Edition, Page 7
Organizational Governance: Linkages
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Organizational Governance: Linkages
Page 9
Organizational Resources
VISION
Mission
Organizational Strategy &
Goals
High-Level
Operations Planning
& Management
Project Portfolio
Planning &
Management
Management of On-Going
Operations(recurring activities)
(producing value)
Management of Authorized
Programs & Projects(projectized activities)
(increasing value production capability)
Comparison: Project Program & Portfolio
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013Page 10
Project Programs Portfolios
Projects have defined objectives. Scope is
progressively elaborated throughout the
project life cycle.
Project managers expect change and
implement processes to keep change
managed and controlled.
Project managers progressively elaborate
high-level information into detailed plans
throughout the project life cycle..
Project managers manage the project team
to meet the project objectives.
Success is measured by product and project
quality, timeliness, budget compliance, anddegree of customer satisfaction..
Project managers monitor and control the
work of producing the products, services,
or results that the project was undertaken to
produce.
Programs have a larger scope and provide
more significant benefits.
Program managers expect change from
both inside and outside the program and
are prepared to manage it.
Program Managers develop the overall
program plan and create high-level plans to
guide detailed planning at the componentlevel.
Program managers manage the program
staff and the project managers; they
provide vision and overall leadership.
Success is measured by the degree to
which the program satisfies the needs and benefits for which it was undertaken..
Program managers monitor the progress of
program components to ensure the overall
goals, schedules, budget and benefits of the
program will be met.
Portfolios have an organizational scope
that changes with the strategic objectives
of the organization.
Portfolio managers continuously monitor
changes in the broader internal and
external environment.
Portfolio managers create and maintain
necessary processes and communication
relative to the aggregate portfolio.
Portfolio managers may manage or
coordinate portfolio management staff, or
program and project staff that may have
reporting responsibilities into the aggregate
portfolio.
Success is measured in terms of aggregate
investment performance and benefitrealization of the portfolio.
Portfolio managers monitor strategic
changes and aggregate resources
allocation, performance results, and risk of
the portfolio.
Organizational Project Management
Comparison: Project, Program & Portfolio
Scope
Change
Planning
Management
Success
Monitoring
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
How do projects come about?
Projects can come about in the following ways:
Market demandStrategic opportunitySocial need
EnvironmentalCustomer requestTechnological advanceLegal requirement
Page 10
More on selection methods later
PMBOK 5th Edition, Page 10
Off ( O)
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
The Project Management Office (PMO)
A PMO is an organizational structure:• standardizes project governance processes,• facilitates the sharing of resources,• develops methodologies, tools and techniques.
Responsibilities can range from providing support
functions to direct management of projects.
Projects supported by a PMO may not be related,other than being managed together
Project Manager
focuses on specific project objectives controls assigned project resources manages the constraints
PMOs
manages major program scope changes optimizes shared resources across all projects manages methodologies, standards, overall risk
Page 12
T f P j M Offi (PMO)
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Types of Project Management Offices (PMO)
• Supportive. Consulting role , e.g., supplying templates, best practices,training, computer information, and lessons learned from other projects.Control from this type of PMO is low.
• Controlling. Provide support and require compliance, e.g., PM methodologies,specific templates-forms-tools, or conformance to governance.
Control from this type of PMO is moderate.
• Directive. Control projects by managing projects.Control from this type of PMO is high.
Page 12
ExamTip
Project
Based Organizations (PBO)
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PMP® Prep: PMBOK® 5th - 2013PMP® Prep: PMBOK® 5th - 2013
PBOs can be created by various organizations(functional, matrix, projectized).
They can diminish hierarchy since work is measured by
results rather than position or politics.
PBOs do a majority of their work as projects ratherthan as a function, but can have functional supportareas.
Project-Based Organizations (PBO)
Page 13
R l f th P j t M
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Project Managers
Page 15
Role of the Project Manager
Role is to achieve project objectives. Understanding tools andtechniques is not enough. It requires general managementskills, and: Knowledge of project management, Performance or accomplishment,
Personal behavior and effectiveness when performingthe project including attitude, personality characteristics,and leadership.
Th R l f th PMBOK
®
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The Role of the PMBOK®
PMBOK ® Guide
Project Management
Body of Knowledge
Application AreaKnowledge,
Standards and
Regulations
Interpersonal
Skills
Understanding
the ProjectEnvironment
General
Management
Knowledge and
Skills
Page 15
O i ti l St t
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Organizational
Structures
ProjectCharacteristics
Functional ProjectizedMatrix
Weak Matrix Balanced Matrix Strong Matrix
Little or None
Little or None
FunctionalManager
Project Manager’s
Authority
Resource
Availability
Who Manages
the Budget?
Project
Manager’s Role
Project Management
Administrative Staff
Part-Time
Part-Time
Part-Time
Part-Time
Full-Time Full-Time Full-Time
Part-Time Full-Time Full-Time
FunctionalManager
MixedProject
ManagerProject
Manager
Low
Low
Low toModerate
Low to
Moderate
Moderate toHigh
High toAlmost Total
Moderate to
High
High to
Almost Total
Organizational Structures PMBOK® Fifth Edition, Page 22
Page 16
O i ti l I fl
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Strong matrix: The balance of power rests with the project manager . Weak matrix: The balance of power rests with the functional manager . Balanced matrix: The power is balanced between the functional and the project managers.
Tight Matrix: Beware here. It has nothing to do with the matrix organization. It refers tolocating the project team’s offices in the same room. Watch for this one!
Exam questions deal with matrix forms.ExamTip
Organizational Influences PMBOK® Fifth Edition, Page 22
Page 17
O i ti l St t
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Organizational Structure PMBOK® Fifth Edition, Page 22
Page 18
ChiefExecutive
FunctionalManager
FunctionalManager
FunctionalManager
Staff
Staff
Staff Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activities
ProjectCoordination
Functional Organization
O i ti l St t
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Organizational Structure PMBOK® Fifth Edition, Page 23
Page 18
Weak Matrix ChiefExecutive
FunctionalManager
FunctionalManager
FunctionalManager
Staff
Staff
Staff Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activities
ProjectCoordination
O i ti l St t
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Organizational Structure PMBOK® Fifth Edition, Page 24
Page 19
Balanced Matrix ChiefExecutive
FunctionalManager
FunctionalManager
FunctionalManager
Staff
Staff
Project
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activities
ProjectCoordination
Organizational Structure
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Manager of ProjectManagers
Organizational Structure PMBOK® Fifth Edition, Page 24
Page 19
Strong Matrix ChiefExecutive
FunctionalManager
FunctionalManager
FunctionalManager
Staff
Staff
Staff Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activitiesProject
Coordination
Project Manager
Project Manager
Project Manager
Organizational Structure
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Organizational Structure PMBOK® Fifth Edition, Page 25
Page 20
Projectized ChiefExecutive
ProjectManager
ProjectManager
ProjectManager
Staff
Staff
Staff Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activitiesProject
Coordination
Organizational Structure
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Organizational Structure PMBOK® Fifth Edition, Page 26
Page 20
Composite ChiefExecutive
FunctionalManager
FunctionalManager
FunctionalManager
Staff
Staff
Staff Staff
Staff
Staff
Staff
Staff
Staff
Staff engaged in project activities Project ACoordination
Manager of ProjectManagers
Project Manager
Project Manager
Project Manager
Project BCoordination
The Organization and it’s Environment
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The Organization and it s Environment
Enterprise Environmental Factors (EEF)EEF are conditions not under the control of the team. They includegovernment or industry standards, organization culture,infrastructure (facilities & equipment), human resources,
marketplace conditions, risk tolerance, politics, communicationchannels, data bases, and PMIS.What is out there?
These are INPUTS to Processes
Page 21
Organizational Process Assets (OPA)OPA are assets available to the project team: (1) processes andprocedures, and (2) corporate knowledge bases. They includeplans, processes, policies, procedures, lessons learned, historicalinformation, schedules, risk data, and earned value data.
What have we got?
Stakeholders
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Stakeholders are persons or organizations who may affect, be affected, or perceive thatthat they are affected by a decision, activity or outcome of the project. They:
• May be actively involved in the project or have interests affected by the project,• May exert influence over the project/team to satisfy strategic business objectives.
Project Governance is an oversight function aligned with the organization’s governance
model and includes the project life cycle. Governance is alignment of the project withstakeholders’ needs or objectives. It is critical to management of stakeholder
engagement, maximizing the value of project outcomes, and aligning projects to thebusiness strategy.
The Project Manager should manage the influences of stakeholders regarding projectrequirements to ensure successful outcome.
Pages 22-23
Who are your stakeholders? Can you name them?See PMBOK® Fifth Edition, Pages 32-33
Stakeholders
The Project Sponsor
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The Project Sponsor
The Project Sponsor is the person or group whoprovides resources and support for the projectand is accountable for enabling success. Thesponsor promotes the project and serves asspokesperson to management. They play a
significant role in project initiation and thedevelopment of the initial scope and charter
Page 22
Project Life Cycle
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Startinga Project Organizingand
Preparing
Executing the Work Closing aProject
C o s t a n d S
t a f f i n g L e v e l
Time
ProjectCharter
ProjectManagement Plan
AcceptedDeliverables
ArchivedProject
Documents
Project Life Cycle
Page 24
Stakeholders Influence Over Project Performance
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Stakeholders Influence Over Project Performance
Page 24
Value
Time
Concept Planning Execution Close-Out
Amount at Stake
Uncertainty (Risk)
Influence of Stakeholders
Process Groups are not Project Phases
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Process Groups are not Project Phases
Phased System Development Life Cycle (SDLC) to Launch
DevelopmentProduction
TechnologyTrials Production
Laboratory
Model LAUNCHIDEA
Feasibility
Study
INPUTS:
Market Basic Requirements
Knowledge Concept Specification Marketing
Technology Department’s K ey Technical Pr oof of Pr ototype Beta Test Pr oduction Pr oduct
Appreciation Expertise Risks Principle Documentation Models Documentation Quantity
Basic Requirements Proof of Prototype Production User Product
Concept Specification Principle Product Documentation Reaction Quantity
Key Risk Beta TestAssessment Models
OUTPUTS:
Project Phases or Life Cycle(Phase-end reviews of deliverables are called
Stage Gates, Phase Exits, or Kill Points)
Process Groups are not Project Phases
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Process Groups are not Project Phases
Process Groups PMBOK® Fifth Edition, Pages 42-43
Links between Process Groups in a Phase
Planning
Processes
Executing
Processes
Monitoring &
Controlling Processes
Initiating
Processes
Closing
Processes
Planning
Processes
Executing
Processes
Planning
Processes
Executing
Processes
Monitoring &
Controlling Processes
Initiating
Processes
Closing
Processes
Plan Do
CheckAct
Walter Shewhart,modified
by Edwards Deming
ExamTip
Process Groups are not Project Phases
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Process Groups are not Project Phases
BeginEnd
Project Lifecycle
Charter Handover
Phase 1 Phase 2 Phase 3 Phase 4
Understand the Differences Between:
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Understand the Differences Between:PMBOK Fifth Edition, Pages 42-46
• Phase-to-Phase Relationships
• Predictive Life Cycles
• Iterative and Incremental Life Cycles
• Adaptive Life Cycles
Page 26
Overview of Project Integration Chapter 4 of the PMBOK®
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Overview of Project Integration Chapter 4 of the PMBOK
by Knowledge Area
Page 28
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project Work
4.4 Monitor and Control Project Work
4.5 Perform Integrated Change Control, and
4.6 Close Project or Phase
Initiating Process Group
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Initiating Process Groupby Chronology
Page 31
Process Groups
Initiating Planning Executing ClosingMonitoring &
PMBOK® Fifth Edition, Page 61
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Knowledge AreasInitiating Planning Executing Closing
Controlling
4. Project IntegrationManagement
4.2 Develop ProjectManagement Plan
4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated
Change Control
5. Project ScopeManagement
5.1
Collect Requirements5.2
Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2Sequence Activities6.3Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
7. Project CostManagement
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management
11.2 Identify Risks11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement
12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
Project Work4.1 Develop Project Charter
13.1 Identify Stakeholders
5.4 Create WBS
6.4
4.6 Close Project
or Phase
13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
7.1 Plan Cost Mgt.
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
Initiating
4.1 Develop Project Charter
13.1 Identify Stakeholders
Initiating Process Group
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Initiation results in:
GO
NO GO
DECISION
Initiating Process Group
Page 30
Initiation: Project Integration Management
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4.1 Develop Project Charter
Initiation: Project Integration Management
Outputs
Project charter
Tools &Techniques
Expert judgmentFacilitation techniques
Inputs
Project statement of work
Business caseAgreementsEnterprise environmental factorsOrganizational process assets
Page 31
4 1 Develop Project Charter
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4.1 Develop Project Charter
Develop Project Charter is the process ofdeveloping a document that formally
authorizes the existence of a projectand provides the project manager withthe authority to apply organizational
resources to project activities.
The project manager is assigned early inthe project, during charter development.
ALWAYS before start of planning.
Page 31
ExamTip
4 1 Develop Project Charter
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4.1 Develop Project Charter
Page 32
CustomerRequirements
• Problem
• Opportunity
• Business Need
ProjectInitiation
• Commitment to goahead
• Project Charter
• Project Managerassigned
Project
Planning
4 1 Develop Project Charter
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4.1 Develop Project Charter
Page 32
Input: Project Statement of Work (SOW)PMBOK® Fifth Edition, Page 68
• States the Business Need and Cost-
Benefit analysis in the Business Case.What triggered the project?
• Documents the characteristics of theend product
• Is progressively elaborated throughoutthe project life cycle
• Includes the Strategic Plan, a factorwhen making project selection
decisions• Should describe both what the deliverable is and what it is not
• With the project scope statement, the SOW protects against both scope
creep and feature creep
4.1 Develop Project Charter
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4.1 Develop Project Charter
Page 33
Input: Business Case, Strategic PlanPMBOK® Fourth Edition, Page 75
Senior management considerseach project’s contribution to thestrategic goals and its alignmentwith the strategic plan before
deciding to undertake, continue,suspend, or terminate projects
Strategic planning analyzes an organization’s strengths, weaknesses,opportunities, and threats (SWOT) to determine long-range objectives andstrategies for reaching them. Strategic planning often involves predictingfuture trends, including the need for new products and services.
4.1 Develop Project Charter
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4.1 Develop Project Charter
Page 33 & 34
Input: EEF and OPAPMBOK® Fifth Edition, Page 70
Enterprise Environmental Factors (EEF)Factors not under the control of the team that influence orconstrain the charter process. EEF include government or industry
standards, organization infrastructure, marketplace conditions, etc.What is out there?
Organizational Process Assets (OPA)OPA are standard processes, policies, and corporate knowledge:
lessons learned, historical information, templates and otherdocuments.What have we got?
These are INPUTS to Develop Charter
4.1 Develop Project Charter
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4.1 Develop Project Charter
Page 35
Output: Project CharterPMBOK® Fifth Edition, Page 71
ExamTip
How do projects come about?
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How do projects come about?
SelectedProjects
SuggestedProjects
Project Selection
Techniques
Net Present ValueReturn on Investment
Internal Rate of Return
Benefit/Cost Ratio
Opportunity Cost
Page 35
Project selection methods Economic Models
ExamTip
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Project selection methods Economic Models
Net Present Value: net economic value (per year) of a project in terms of
present-year monies. A higher overall net present value is better within cash flow constraints.
Expected Present Value: Risk-adjusted NPV
Return on Investment (ROI): income divided by investment.
A higher ROI is better .Payback Period: the amount of time it will take to recover the cost of the
project. A faster payback period is better .
Internal Rate of Return (IRR) or Hurdle Rate:the rate of return for the investment in the
project. Organizations may have a minimum rateof return (or hurdle rate).
A higher rate of return is better
Page 37
Tip
Project selection methods
Economic Models
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j
Return on Investment (ROI) =
Internal Rate of Return (IRR) : Solve the NPV equation for “r” (hurdle rate)
when present value of “cash in” equals
present value of “cash out” (i.e., at breakeven)
Net Present Value (NPV) =
FV
(1+r )n
Where, FV = Future Value
r = Interest Raten = Number of Time Periods
Average Earnings After Tax
Average InvestmentARR
(Accounting Rate ofReturn)
Benefit Cost Ratio : Benefits should exceed costs. The higherBCR wins.
=
Page 37
Project selection methods
Example Question
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Project selection methods Example Question
Exam
Tip
Many things on the Exam are not in the PMBOK.A lot of these are cost questions. Only Present Value
shows up on more than one question.
Opportunity Cost:
“A” has NPV of $45K, “B” has NPV of $75K,
what is the Opportunity Cost of selecting Project “B”?
Answer: $45K. Opportunity cost is what you gave upwhen you made your selection
Page 37
Exercise
Net present Value
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p
Page 38
TIME PERIOD (YR) AMOUNT ($)PRESENT VALUE AT
10% INTEREST RATE
1 50 45
2 100 83
3 300 225
Exercise
Accounting Standards
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PROJECT A PROJECT BWhich Project
Would You
Pick?
Net Present
Value$95,000 $75,000 A
IRR 13% 17% B
Payback
Period16 months 21 months A
Benefit Cost
Ratio2.79 1.3 A
g
Project Selection Methods
Weighted Scoring
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j g g
Si = sijw j
j = 1
n1) determine the evaluation factors2) assign a numerical weight to each factor3) rate the projects on each criterion4) multiply each rating by its weighting5) total the weighted ratings to compute an overall score6) highest number project wins
Removes personal bias, is more objective, and considersrelative importance of different evaluation factors
Project Selection Methods
Decision Models
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$10,000
$12,000
$8,000
$12,000
$10,200}$10,000}
Forced Choice: Decision makers
choose among alternatives, often by
pair-wise comparisons, selecting the
one preferred and discarding the rest.
Decision Trees: Define all the possible
outcomes, the probability of each, andits value. Choose the best alternative.
j
Initiation: Project Stakeholder ManagementPMBOK
® Fifth Edition Section 13 1 Page 393
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13.1 Identify Stakeholders
Outputs
Stakeholder register
Tools &Techniques
Stakeholder analysisExpert judgmentMeetings
Inputs
Project charterProcurement documentsEnterprise environmental factorsOrganizational process assets
Page 40
PMBOK Fifth Edition, Section 13.1, Page 393
13.1 Identify Stakeholders
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y
• It is critical for project success toidentify the stakeholders early in theproject, and to analyze their levels ofinterest, expectations, importanceand influence
• Stakeholders should be classifiedaccording to their interest,involvement and influence in theproject
Who are your stakeholders? Make sure you can name them?
Page 40
Stakeholder Analysis Tools and Techniques
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Pages 42 and 43
Position people on the Power/Influence Grid
Think about who is essential for support:
Who are the most influential people? How much will your project affect them? How are they likely to react to your project?Who is effected by the project’s objectives?
Think about how to identify all stakeholders:
Brainstorming (free or structured) Interviews Past
Utilize the project team
Develop, Monitor, Focus, Stabilize
Influence
high
medium
low
Change
AgentBystanderResistor
P o w e r LÖ
BG
AR
GU
JH
CF
AB
Note: The 5th Edition lists several classification models:• Power/Interest Grid
• Power/Influence Grid• Influence/Impact Grid• Salience Model
Understand the similarities and differences.
Planning Process Group
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Page 45
Process Groups
Knowledge AreasInitiating Planning Executing Closing
Monitoring &
Controlling
PMBOK® Fifth Edition, Page 61
Planning
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4. Project IntegrationManagement
4.2 Develop ProjectManagement Plan
4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated
Change Control
5. Project ScopeManagement
5.1
Collect Requirements5.2
Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2Sequence Activities6.3Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
7. Project CostManagement
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement
12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
Project Work4.1 Develop Project Charter
13.1 Identify Stakeholders
5.4 Create WBS
6.4
4.6 Close Project
or Phase
13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
7.1 Plan Cost Mgt.
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
Planning
4.2 Develop Project Management Plan5.1 Plan Scope Management5.2 Collect Requirements
5.3 Define Scope5.4 Create WBS6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activity Resources6.5 Estimate Activity Durations
6.6 Develop Schedule7.1 Plan Cost Management7.2 Estimate Costs7.3 Determine Budget8.1 Plan Quality Management9.1 Plan Human Resource Management10.1 Plan Communications Management11.1 Plan Risk Management
11.2 Identify Risks11.3 Perform Qualitative Risk Analysis11.4 Perform Quantitative Risk Analysis11.5 Plan Risk Response12.1 Plan Procurement Management13.2 Plan Stakeholder Management
24Plans
Planning is Iterative
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Although the constraints of text and page layout force us todepict the planning process as a linear sequence of activities, thisis not true and probably should not be practiced as such in reality.Planning is, in fact, an iterative activity. The various planningprocesses interact with each other; later processes may cause you
to rethink the execution and output of earlier processes.
Replanning at phase gates is called “progressive elaboration” or“rolling wave planning.”
Planning is done by the Project TeamExamTip
Page 45
Project Planning
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Don’t over-plan and don’t under-plan(Your challenge is to match the degree of planning to the demands of the project).
Document, distribute, and maintain the plan(You’re not the only one who is going to use the plan)
Page 46
Planning: Integration Management
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4.2 Develop Project Management Plan
Outputs
Project management plan
Tools &Techniques
Expert judgmentFacilitation techniques
Inputs
Project charterOutputs from other processesEnterprise environmental factorsOrganizational process assets
Page 47
4.2 Develop Project Management Plan
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Develop Project ManagementPlan is the process of defining,preparing, and coordinating allsubsidiary plans and integratingthem into a comprehensiveproject management plan.
It is the central document thatdefines the basis of all project
work.
Page 47
I t
The Project Management Plan
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Plan Scope Management Collect Requirements
Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities
Estimate Activity Resources Estimate Activity Durations Develop Schedule Plan Cost Management Estimate Costs
Determine Budget Plan Quality Management
Plan Human Resource Management Plan Communications Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis Plan Risk Response Plan Procurement Management Plan Stakeholder Management
The other 23 planning processes are integrated to create the projectmanagement plan. Updates to any plans require an update to the PM plan. Thinkof the PM plan as a bucket into which all the other plans “drip” until it is full.
Input: Outputs from Other Processes
Output: The PM Plan
Pages 45 & 49
The Project Management Plan
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Subsidiary Plans
Page 49
Documents that flow from these planning processes are called Subsidiary Plans.These documents, also controlled by the Integrated Change Control process.
• Process Improvement Plan
• Human Resource Plan• Communications Management Plan• Risk Management Plan• Procurement Management Plan• Stakeholder Management Plan
• Scope Management Plan
• Requirements Management Plan• Schedule Management Plan• Cost Management Plan• Quality Management Plan
Differentiation: PM Plan and Project DocumentsProject Management Plan Project Documents
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Change management plan Activity attributes Project staff assignments
Communications management plan Activity cost estimates Project statement of work
Configuration management plan Activity duration estimates Quality checklists
Cost baseline Activity list Quality control measurements
Cost management plan Activity resource requirements Quality metrics
Human resource management plan Agreements Requirements documentation
Process improvement plan Basis of estimates Requirements traceability matrix
Procurement management plan Change log Resource breakdown structure
Scope baseline• Project scope statement• WBS• WBS dictionary
Change requests Resource calendars
Quality management plan Forecasts• Cost forecast• Schedule forecast
Risk register
Requirements management plan Issue log Schedule data
Risk management plan Milestone list Seller proposals
Schedule baseline Procurement documents Source selection criteria
Schedule management plan Procurement statement of work Stakeholder register
Scope management plan Project calendars Team performance assessments
Stakeholder management plan Project charterProject funding requirementsProject scheduleProject schedule network diagrams
Work performance dataWork performance informationWork performance reports
Page 50
Planning: Project Scope Management
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5.1 Plan Scope Management
Outputs
Scope management planRequirements management
plan
Tools &Techniques
Expert judgmentMeetings
Inputs
Project management planProject charterEnterprise environmental factorsOrganizational process assets
Page 51
Project Scope Management
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Ensures that the project includes all the work required,
and only the work required, for the project to completesuccessfully. It defines and controls what is and is not inthe project (the positive and negative scope items).
If it is not in the scope, it is not in the WBS
The Scope Baseline includes:1. Project scope statement (SOW)2. Work breakdown structure (WBS)3. WBS dictionary
Page 51
Plan Scope Management
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5.1.1 Inputs
+
Outputs of Previous Processes:
Project Management Plan
Project Charter
Always Inputs:
EEF
OPA
Page 52
Plan Scope Management
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5.1.3 Outputs
Scope Management Plan Part of the project management plan Defines how the scope will be defined, developed,
controlled, and verified.
Requirements Management Plan Also part of the project management plan Describes how requirements will be analyzed,
documented, and managed Includes configuration management, requirements
prioritization, metrics, and traceability.
Page 53
Planning: Scope Management PMBOK
®
Fifth Edition, Section 5.2, Page 110
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5.2 Collect Requirements
Outputs
Requirements documentationRequirements traceability
matrix
Tools &Techniques
InterviewsFocus GroupsFacilitated WorkshopsGroup Creativity TechniquesGroup Decision Making
TechniquesQuestionnaires and SurveysObservationsPrototypesBenchmarking
Context DiagramsDocument Analysis
Inputs
Scope Management Plan
Requirements ManagementPlanStakeholder Management PlanProject CharterStakeholder Register
Page 54
5.2 Collect Requirements
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Collecting Requirements is the process ofdetermining, documenting, andmanaging stakeholders needs andrequirements to meet project objectives
Requirements include the quantified and
documented needs and expectations ofthe sponsor, customer and otherstakeholders
Requirements must be detailed enoughto allow precise measurements during
Project Execution.
Tools and Techniques
InterviewsFocus GroupsFacilitated WorkshopsGroup Creativity TechniquesGroup Decision Making TechniquesQuestionnaires and SurveysObservationsPrototypesBenchmarkingContext Diagrams
Document Analysis
Page 48
5.2.1 Collect Requirements
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Interviews: talk with all stakeholders, checklists
Focus groups: talk with prequalified stakeholdersFacilitated workshops: allow key cross-functional stakeholders to define
product/project features and to reconcile differences.
Joint Application Design/Development (JAD): software
Quality Function Deployment (QFD): new products, manufacturing
Voice of the Customer (VOC): when QFD collects client needsGroup creativity techniques (see list on next page)
Group decision making techniques
Questionnaires and surveys: written sets of questions
Observations: job shadowing
Prototypes: working model
Benchmarking: comparing to best practices
Context Diagrams: a scope model
Document Analysis: analyzing existing documentation
Pages 55-57
Tools and Techniques to define features and functions
ExamTip
5.2.2 Collect Requirements ExamTip
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Tools and Techniques: Group Creativity Techniques
Brainstorming: a technique to generate multiple ideas on requirements.
Does not include voting or prioritization., but is oftenused with creative methods that do.
Nominal Group enhances brainstorming with a voting process
Technique: to rank the best ideas.
Delphi Technique: questionnaires are sent to experts: anonymous.
responses are compiled, prioritized, and sent back.A method for building consensus.
Idea/Mind Mapping: a graphical method to consolidate brainstorm ideas
show commonality and differences: generate new ideas
Affinity Diagram: gathering lots of ideas and sorting them into groupsanalyze to identify patterns within data
Multicriteria Decision uses a decision matrix to establish criteria (risk,
Analysis: uncertainty, valuation), evaluate, and rank many ideas.
Tip
5.2.2 Collect Requirements
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Tools and Techniques: Group Decision-Making Techniques
Unanimity: everyone agrees. Example: Delphi Technique.
Majority: more than 50% agree.
Plurality: largest block in the group decides.
Dictatorship: one person decides. Example: Forced Choice.
5.2.3 Collect Requirements
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Outputs
Requirements progressively elaborated
Documentation: record: how each requirement meets the businessneed. explicit, measurable, accepted in writing
Traceability Matrix: a table linking requirements to their origin
traces then over the project life cycle a structurefor managing scope changes
Example Requirements Traceability Matrix
Planning: Scope Management PMBOK
®
Fifth Edition, Section
5.3,
Page
120
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5.3 Define Scope
Outputs
Project scope statementProject documents updates
Tools &Techniques
Expert judgmentProduct analysisAlternatives generationFacilitated workshops
Inputs
Scope management planProject charterRequirements documentationOrganizational process assets
Page 59
5.3 Define Scope
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“... process required to ensure that the project includes all the work
required, and only the work required, to complete the project successfully.Documents the features and functionality of the product, service, or result”
ExamTip
• Know and understand for exam
• Objectives = Agreement by all parties
• PMI-ism: give customer “No more - No less”
• Controls what IS and what IS NOT in project
ExamTip
• Giving the customer more than they ask for is “Gold Plating”. PMI® does not
approve of Gold Plating.• Currently only 26% of projects succeed, concentrate on doing the agreedscope of work.
• You may see a variety of questions relating to this in Scope and Quality areas.
Page 59
Requirements vs. Scope PMBOK
Fifth Edition, Page 121
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Not all of the requirements identified in “CollectRequirements” may be included in “Define Scope.”
“Define Scope” selects the final project requirements.
Scope is progressively elaborated. Detailed scope isdetermined one iteration at a time.
ExamTip
Page 60
5.3.1 Define ScopeI t
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Inputs
o P r e r e q u i s i
t e s a r e t h
e p r o j e c t
s t a t e m e n t
o f w o r k (
S O W ) a n d
t h e
b u s i n e s s c
a s e ( n e e d
f o r t h e p r
o j e c t
a n d c o s t/ b
e n e f i t a n a
l y s i s
o P r o j e c t p u
r p o s e o r j u
s t i f i c a t i o n
o M e a s u r a b
l e o b j e c t i v
e s
o A s s i g n e d p
r o j e c t m a
n a g e r, a u t
h o r i t y
a n d r e s p o
n s i b i l i t y
o H i g h - l e v e
l r e q u i r e m
e n t s, p r o j e
c t
d e s c r i p t i o n
, a n d r i s k s
o S u m m a r y b
u d g e t a n d
m i l e s t o n e
s
o C r i t i c a l s u c
c e s s f a c t o
r s
o F u n c t i o n a l o r g a
n i z a t i o n s
a n d t h e i r
p a r t i c i p a t
i o n
o N a m e a n d
a u t h o r i t y
o f s p o n s o r
+
+
Outputs of Previous Processes:• Scope Management Plan
• Requirements Documentation
Always an Input:
OPA
There have been as many as 20 “Input, Tools, and Output” questions
on past tests (10%). We want you to get these right!
(One person had 40 ITO questions on his test)
5.3.2 Define ScopeT l d T h i
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Tools and Techniques
+
+
Almost always a Tool:
• Expert Judgment
• Product Analysis
Translate objectivesinto deliverables
• Facilitated Workshops
key players reach understandingof the project objectives andtheir limits.
• Alternatives Generation
develop options usingbrainstorming, lateral thinking,alternatives analysis, etc.
5.3.2 Define Scope PMBOK Fifth Edition, Section 5.3, Page 122
Tools and Techniques: Product Analysis Value Analysis Example
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Tools and Techniques: Product Analysis, Value Analysis Example
Cost/Benefit Analysis
Benefits:increased revenue
capital assetsregulatory compliancestrategic positioning
Costs:liquid assets consumedresources occupieddeferred opportunities
5.3.3 Define Scope PMBOK Fifth Edition, Section 5.3, Page 123
Outputs
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Outputs
+
Subject matter document:
• Project Scope Statement
• Documents Updates:
Stakeholder register Requirements docs Traceability matrix
Includes
5.3.3
Define ScopeExam
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Remember the difference between the
Charter and the Scope Statement:• the charter contains high-level information,• the scope statement is a detailed description
of the scope elements.
Page 62
Both are progressively elaborated throughout the project
See table 5-1, PMBOK Fifth Edition, Section 5.3, Page 124
Tip
5.3 Define Scope
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Sponsor
ProjectManager
Charter
Scope
Statement
Product scope descriptionAcceptance criteriaDeliverablesProject exclusionsConstraintsAssumptions
Summary
High level
Planning: Scope Management
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5.4 Create WBS
Outputs
Scope baselineProject document updates
Tools &Techniques
DecompositionExpert judgment
Inputs
Scope management plan
Project scope statementRequirements documentationEnterprise environmental factorsOrganizational process assets
Page 64
5.4 Create WBS
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The Work Breakdown Structure is the process of subdividing project
deliverables into smaller, more manageable components. It is a hierarchical decomposition of the total scope of work done by the
project team to satisfy the objectives and create the deliverables.
If it is not in the scope, it is not in the WBS, and vice versa.This is called the 100% rule.
The Scope Baseline includes:1. Project scope statement (SOW)2. Work breakdown structure (WBS)3. WBS dictionary
Page 64
ExamTip
5.4 Create WBS PMBOK® Fifth Edition, Page 129
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City Gentrification
LandscapingTree PlantingPreparation
MarkHoles
DigHoles
PlantTrees
FillHoles
Lay Turf Water
Soil
• At the lowest level of the WBS, workcan be properly scheduled, cost estimated,monitored and controlled
• The WBS is critical to project successThe WBS is very important
• The lowest level WBS components arecalled Work Packages
Page 67
Work Packages
5.4.1 Create WBS PMBOK® Fifth Edition, Page 127
Inputs
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Inputs
+
Page 65
Outputs of Previous Processes:
• Scope Management Plan
• Project Scope Statement
• Requirements Documentation
Always Inputs:
• EEF(industry WBS standards)
• OPA (procedures, templates, lessons
learned, files)
5.4.2 Create WBS PMBOK® Fifth Edition, Page 128
Tools and Techniques
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Tools and Techniques
Decomposition
Decomposition is the subdivision of deliverables into smaller, more
manageable components until they are defined to the work package
level, where schedule and cost can be reliably estimatedwithout going to level that takes more effort to administer than is
worthwhile.
Decomposition may be difficult for work to be done far in the future,
so the team does rolling wave planning.
Parts of the WBS done by a supplier are known as the contract work
breakdown structure (CWBS). Each component in a WBS should beassigned to a department, and sorting by organizational unit creates
an Organizational Breakdown Structure (OBS).
Page 66
5.4.2 Create WBSTools and Techniques
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Tools and Techniques
Page 67
001
400300200100
210 220 230 240 250 310 320 330 410 420
221 222 231 251 252 321 322 411 412
Whole Project
Main Divisions
Activity
Deliverables
Work Packages
5.4.2 Create WBSTools and Techniques: Example
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Tools and Techniques: Example
Page 67
Study Concept Prototype Qualification
Typical
Project
Pilot Production ProjectManagement
Chronological
SalesProduct
EngineeringPurchasing
QualityControl
Typical
Project
Job ShopManufacturing
Department
Project
Management
Functional
5.4.2 Create WBSTools and Techniques: Example of WBS by Phase
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Tools and Techniques: Example of WBS by Phase
Page 68
SeagramMIS
Project
FunctionalRequirements
Definition
ProjectDefinition Analysis Design Construction Implementation Support
ProjectManagement
Process &Package
Evaluation
AnalysisCheck Point
Design &Integration
Installation
DesignCheck Point
UserProcedures &
Training
ProgramGeneration& Testing
DevelopmentSign Off
Training & UserAcceptance
User SignOff
5.4.2 Create WBS PMBOK® Fifth Edition, Page 131
-
132
Outputs
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Outputs
Work not included in the WBS is outside the scope of the project.
This is called the 100% rule.
People who do the work must create their part of the WBS.
The work breakdown structure is a KEY document. It provide forhierarchical summation of cost, schedule and resourceinformation, sometimes called “rolling up the WBS.”
Rules of thumb are applied to the size of a work package:the 80-hour and 2-week rules.
Include all project work and all aspects of the project deliverables.Remember, the scope of the project is always greater than thescope of the product alone!
Heuristics
Page 69
ExamTip
5.4.2 Create WBSOutputs, example of software to create WBS
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Outputs, example of software to create WBS
Page 70
5.4.2 Create WBSOutputs, The WBS Dictionary
,
PMBOK
Fifth
Edition, Page
132
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Outputs, The WBS Dictionary, PMBOK Fifth Edition, Page 132
Page 70
Project Title: ___________________________________Task Title: ___________ Charge Number: ___________Task Leader: _______________Department: ________________Project Manager: ____________
Task:Scheduled Start: _____ Scheduled Completion: _____Description: ___________________________________
______________________________________________ ______________________________________________ ______________________________________________
End Requirements: _____________________________ ______________________________________________ ______________________________________________
Budget:Labor Hours Other Direct
_____________ ________ _____________________ _____________ ________ _____________________ _____________ ________ _____________________
Work Package Completed: _______________________
Hours Expended: ________ Date Completed: ______
WBS Dictionary
• Controls what work is done,when, by whom, for how much.
• Created with help of the teammember.
Creating a WBS(Post-It Note Process)
Task “A” Specs. & Req.
Start Date Stop Date
Est. HoursWho?
= Task Description
5.4.2 Create WBSDo not confuse WBS with other breakdown structures
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o o co use S o e b ea do s uc u es
Page 71
WBS: a deliverable-oriented hierarchical decomposition of the work tobe executed by the project team to accomplish project objectives andto create required deliverables.
OBS: Organizational Breakdown Structure: a hierarchical view of theproject organization showing how work packages relate to functionaldepartments in the performing organization, i.e., a departmental
breakdown for the project.
BOM: Bill of Material: a hierarchical tabulation of parts to fabricate amanufactured product.
RBS: Risk Breakdown Structure: a hierarchical depiction of identifiedrisks arranged by risk category.
Resource Breakdown Structure (another RBS?): a hierarchical view of resources by type used on the project.
5.4.2 Create WBSOBS: Organizational Breakdown Structure
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Project
Design Production
Comp. #2Comp. #1Comp. #2Comp. #1
C o m p a n y
E n g i n e e r i n g
M a n u f a c t u r
i n g
A
s s e m b l y
P a r t s
E l e c t r i c a l
M e c h a n i c a l
CostAccount
CostAccount
CostAccount
CostAccount
Cost
Account
CostAccount
Cost
Account
CostAccount
Cost Accounts provide a
way to control howfunctional organizationsto charge to projects.
WBS Codes showfunctional managersexactly what their
people are doing onthe project.
5.4.2 Create WBSOutputs
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Page 72
Phrases about WBS that have been answers on theexam:
Graphical picture of the project
Identifies all tasks
Foundation upon which the project is built
Is VERY important
Forces you to think through all aspects of the project
A WBS can be re-used for other projects
ExamTip W.B.S.
5.4.2 Create WBSOutputs, WBS
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• The structure of the WBS should reflect the way theproject work will be performed and managed
• The WBS should be broken down to the level ofdetail needed to provide control of the work (80hour and 2 week rules)
• Smart PM’s know they need to manage the pieces,not the whole project.
• Each element of the WBS should be given a uniqueidentifier that codes its position in the WBS and anyparent/child relationship among WBS elements
• Each WBS element should have an associated deliverable or set of deliverablesthat allow an indication of work progress and completion
5.4.2 Create WBSWBS Terminology
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gy
Page 73
Chart of Accounts: a numbering systemused to monitor costs by category (e.g.,labor, supplies, travel)
Code of Accounts: The collection ofunique identifiers for each WBS element
Cost Account: A code that allows afunctional group to charge for work on aspecific element of project work
Work Order: A request for a functionalgroup to work on a specific element of aproject
Work Package: An element of work or deliverable at the lowest level of the WBS(relates to tasks or activities on most projects) -- may be subdivided into tasks oractivities by team members on larger projects.
6 1
Plan Schedule Management
Planning: Project Time Management PMBOK Fifth Edition, Page
145
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6.1 Plan Schedule Management
Outputs
Schedule management plan
Tools &Techniques
Expert judgmentAnalytical techniquesMeetings
Inputs
Project Management Plan
Project CharterEnterprise environmental factorsOrganizational process assets
Page 74
6.1 Plan Schedule Management
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Plan Schedule Management is the process of establishing policies,procedures, and documentation for planning, developing, managing,executing and controlling the project schedule.
It defines how schedule contingencies will be reported and assessed.
Page 74
6.1.1 Plan Schedule ManagementInputs
PMBOK® Fifth Edition, Page
146
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+
Outputs of Previous Processes:
• Project Management Plan(includes the Scope Baseline)
• Project Charter
Always Inputs:
• EEF (resource availability, scheduling
tool, commercial databases)
• OPA (reporting tools, lessons
learned, control tools, closure)
6.1.2 Plan Schedule ManagementTools and Techniques
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• Expert Judgment• Analytical Techniques
(techniques to estimate and schedule theproject, PM software, fast track or crash,risk assessment)
• Meetings(to develop the plan)
6.1.3 Plan Schedule ManagementOutputs
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• Schedule Management Plan(model development, accuracy, units,procedures, control thresholds,performance measurement rules, reportformats, process descriptions)
6 2
Define Activities
Planning: Project Time Management PMBOK® Fifth Edition, Page
149
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6.2 Define Activities
Outputs
Activity listActivity attributesMilestone list
Tools &Techniques
DecompositionRolling wave planningExpert judgment
Inputs
Schedule Management Plan
Scope baselineEnterprise environmental factorsOrganizational process assets
Page 77
6.2 Define Activities
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Activity definition identifies specific actions at the work package level of the
WBS to produce the deliverables. Work packages have smaller elementscalled schedule activities that have to be planned, i.e., estimated, scheduled,executed and monitored & controlled, to meet project objectives.
The best way to think about activity definition is that the outputs are
ACTIONS to be done.
Page 77
6.2 Define Activities
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City Gentrification
LandscapingTree PlantingPreparation
MarkHoles
DigHoles
PlantTrees
Fill Holes Lay Turf Water
Soil
Page 80
Check groundMeasure distancesNail stakes…
Actions
Work Packages
6.2.1 Define ActivitiesInputs
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+
Outputs of Previous Processes:
• Schedule Management Plan• Scope Baseline
(Scope Statement, WBS, and WBSDictionary)
Always Inputs:
• EEF (culture, commercial databases,
PMIS)
• OPA (lessons learned, processes,
templates, activity procedures)
6.2.2 Define ActivitiesTools and Techniques
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• Decomposition Subdividing work packages into actions or work effort
necessary to complete the deliverable of the work package.
These actions or work effort are sometimes called “schedule
activities.”
• Rolling Wave Planning(see next page)
• Expert Judgment (Always a tool)
6.2.2 Define ActivitiesTools and Techniques
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Rolling Wave PlanningRolling wave planning is progressive elaboration of the plan throughout theproject life cycle. Work accomplished in the near term is planned in detail ata low level of the WBS, while work far in the future is planned at a higher
level of the WBS. Therefore, schedule activities can exist at various levels inthe project life cycle. For example, in the initiation stage where strategicplanning is done, activities might be kept at the milestone level. As eachproject phase is completed, rolling wave planning means that the next phasecan now be planned in more detail as more is known about the detailactivities.
Page 78 & 79
6.2.1 Define ActivitiesDefinitions
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Sometimes PMP Candidates do not understand thesubtle distinction between an Activity Definition and aWork Breakdown Structure (WBS). This may help:
Activity Definition Outputs areACTIONS TO BE DONE
W.B.S. Outputs areDELIVERABLES(Tangible Items)
ExamTip
Page 79
6.2.3 Define ActivitiesOutputs
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City Gentrification
LandscapingTree PlantingPreparation
MarkHoles
DigHoles
PlantTrees
Fill Holes Lay Turf Water
Soil
1. Check ground2. Measure distances3. Nail stakes…
Page 80
Activity List
6.3
Sequence Activities
Planning: Time Management PMBOK®
Fifth
Edition, Page
153
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q
Outputs
Project schedule networkdiagramsProject documents updates
Tools &Techniques
Precedence diagramming
method (PDM)Dependency determinationLeads and lags
Inputs
Schedule management planActivity list
Activity attributesMilestone listProject scope statementEnterprise environmental factorsOrganizational process assets
Page 82
Activity Sequencing
6.3 Sequence Activities
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Activity Sequencing
Activity sequencing means identifying and documenting logical relationships
among project activities. Think NETWORKS !
Accurate and complete activity sequencing is critical to developing schedules.Schedule activities (actions) can be sequenced to develop the project schedule.
The project planning team should work together to clarify the sequence of activities and dependencies. It is usually more effective to have the team dosome form of manual activity sequencing before turning to projectmanagement software for scheduling.
Page 82
6.3 Sequence Activities
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Activities are commonly sequenced using the PrecedenceDiagramming Method (PDM) which allows finish-to-start,finish-to-finish, start-to-start and start-to-finish
Finish-to-start is the most common type of relationship There are three types of dependencies – mandatory
dependencies, discretionary dependencies and externaldependencies
Lead and lag times add realism to the schedule (you Lead Into fast track, and Lag out to add a gap between activities)
Page 82
6.3.1 Sequence ActivitiesInputs
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• Schedule Management Plan
• Activity List(activities or actions to be sequenced)
• Activity Attributes(activities have durations, resources, and costs
associated and are used for schedule development)• Milestone List
(A significant event in a project. The list identifies allmilestones and if they are mandatory (contractual)They have zero duration.
• Project Scope Statement• EEF and OPA
6.3.2 Sequence ActivitiesTools and Techniques, Precedence Diagramming Method (PDM)
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Dependencies used in PDM
F-F
S-S
S-F
Activity A Activity B
Activity C
Activity D
Activity E
F-S
6.3.2 Sequence ActivitiesTools and Techniques, Precedence Diagramming Method (PDM)
also called Activity on Node
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also called Activity on Node
Page 84
Finish-to-Start (most often used)Finish-to-FinishStart-to-StartStart-to-Finish (rarely used)
Start Finish
A B C
D E F
• No repetitive activities or conditional loops! No Dummies!
• Often used for Three Point Estimates (PERT) and Critical Path Method
(CPM) analysis
A-B; B-C; etc.B-EB-DF-C
Lead inLag out
ExamTip
6.3.2 Sequence ActivitiesTools and Techniques, Arrow Diagramming Method (ADM)
also called Activity on Arrow [
Not in
Fifth
Edition may be on test
]
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also called Activity on Arrow [ Not in Fifth Edition, may be on test ]
Page 85
• Finish-to-Start only (need additional nodes for leads and lags)
• No repetitive activities or conditional loops
• May use “dummy” activities
• Nodes numbered, activities lettered, numbers above arrows are duration
• Often used for Three Point Estimates (PERT) and Critical Path Method
(CPM) analysis
1Start Finish
B
C
DE
2
4 5
3
Exam
Tip
6
F
6.3.2 Sequence ActivitiesTools and Techniques, Conditional Diagramming Method
Graphical Evaluation and Review Technique (GERT)
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Graphical Evaluation and Review Technique (GERT)
Not in Book
• Allows repetitive activities (looping back) and conditional branches
• Combines features of flow diagrams and decision tree models
Manufacture Inspect
Rework Inspect
Package
Scrap
Ship
Not in the Fifth Edition, But has been on recent tests
6.3.2 Sequence ActivitiesTools and Techniques, Dependency Determination
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Mandatory Dependencies (Hard Logic):
Dependencies based on technological constraints, such as notbeing able to paint a wall before it is constructed
Discretionary Dependencies (Soft Logic):
Dependencies based on management preference, such as
delaying one task until another is completed in order to usethe same resources on both.
External Dependencies:
Dependencies based on external constraints such as a
required inspection before proceeding to the next activity.
Internal Dependencies:
Dependencies within the project team’s control, such as
not testing a product until the product is fully assembled.
6.3.2 Sequence ActivitiesTools and Techniques
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Applying Leads and Lags
A lead allows acceleration of the successor activity (you
“lead in” to fast track a project).For example, a team of technical writers can begin writing thesecond draft of a large document 15 days before they finish
the first draft. When scheduling, this is accomplished with afinish-start relationship and a 15 day lead time.
A lag directs a delay in the successor activity (you “lag out” to
allow a waiting time).
For example, you have to wait 10 days to discover infantmortality of new semiconductor chips. This is accomplishedusing a finish start relationship and a 10 day lag time.
ExamTip
Page 87
6.3.2 Sequence Activities
Tools and Techniques
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o A hammock is a summary level activityrepresenting a group of relatedactivities
o A subnet or fragnet is a sub-project ofa larger network diagram
o A hanger is an unintentional break inthe network diagram usually due toomitting either activities or logicalrelationships
Page 87
6.3.3 Sequence ActivitiesOutputs
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• Project Schedule Network Diagrams(a graphical representation of activities showingdependencies)
• Project Documents Updates(include activity lists and attributes, milestone list, andrisk register)
F-F
S-S
S-F
Activity A Activity B
Activity C
Activity D
Activity E
F-S
6.4
Estimate Activity Resources
Planning: Time Management
PMBOK®
Fifth
Edition, Page
160
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Outputs
Activity resource
requirementsResource breakdownstructure
Project documents updates
Tools &
Techniques
Expert judgment
Alternative analysisPublished estimating dataBottom-up estimatingProject management software
Inputs
Schedule management planActivity list
Activity attributesResource calendarsRisk registerEnterprise environmental factorsOrganizational process assets
Page 89
6.3 Estimate Activity Resources
Estimate Activity Resources is the
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Estimate Activity Resources is theprocess of estimating the type and
quantities of material, humanresources, equipment or suppliesrequired to perform each activity.
There are five tools and techniques:
• Expert judgment• Alternative analysis• Published estimating data• Bottom-up estimating• Project management software
Page 89
6.3.1 Estimate Activity ResourcesInputs
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• Schedule Management Plan
• Activity List(Activities that need resources)
• Activity Attributes(data for estimating resources)
• Resource Calendars(periods when resources are available and skill level)
• Risk Register(shows events that impact resource availability)
• Activity Cost Estimates
• EEF and OPA
6.3.1 Estimate Activity ResourcesInputs, Resource Calendars
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Resource calendars document the time periods when
each team member can work on the project. To do thiswe must have a good understanding of the person’s
schedule conflicts, including holiday time andcommitments to other projects. We document activeand idle time for each person over the life of the project
and show the results in a project histogram. Resourcesinclude people, material, equipment and facilities.
6.3.2 Estimate Activity ResourcesTools and Techniques
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• Expert Judgment• Alternative Analysis
(Different people, skills, equipment, tools, make-buy)
• Published Estimating Data(data for estimating resources)
• Bottom-Up Estimating(Estimating at the bottom level of the WBS and adding[aggregating] to the top. Yields best accuracy)
• Project Management Software
(a scheduling tool helps plan, manage resource pools,and develop resource estimates)
6.3.2 Estimate Activity ResourcesTools and Techniques
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Project Title: ______________________ _____________
Task Title: _ __________ Charge Number: ________ ___ Task Leader: _______________ Department: ________________
Project Manager: ___________ _
Task:Scheduled Start: _____ Scheduled Completion: __ ___
Description: ___________________________________
______________________________________________
______________________________________________
______________________________________________
End Requirements: ______________________ _______
______________________________________________
______________________________________________
Budget:
Labor Hours Other Direct
_____________ ________ _____________________
_____________ ________ _____________________
_____________ ________ _____________________
Work Package Completed: _______________________
Hours Expended: ________ Date Completed: _ _____
WBS Dictionary(PMBOK 3rd Edition, Page 117)
• Controls what work is done,
when, by whom, for how much.
• Created with team member ’s
help
Creating a WBS(Post-It Note Process)
Task “A” Specs. & Req.
Start Date Stop Date
Est. HoursWho?
= Task Description
The WBS dictionary describes the detailed content of the WBS work packages.
Post-It Note Process: A Method For Bottoms Up Estimating
Page 91
Alternative Analysis
Brainstorming: a method of joint creative thinking that first records and
considers all possible options/solutions without judgment before proceeding to
critical evaluation of the project/product requirements.
Nominal Group Technique: enhances brainstorming with a voting process to
rank the best ideas for further brainstorming or prioritization.
Delphi Technique: questionnaires are sent to a group of experts who provide
answers and are kept anonymous. Responses are compiled, prioritized, and
sent back for another round of requirements gathering. A method for building
consensus.
Idea/Mind Mapping: a graphical method of consolidating brainstorm ideas to
show commonality and differences and to generate new ideas.
Affinity Diagram: gathering large numbers of ideas and sorting them into
groups for review and analysis – they help to identify patterns within data.
6.3.3 Estimate Activity ResourcesOutputs
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Activity Resource Requirements
The output of resource planning is a set of resource requirements. The resourcerequirements describe what types of resources are required and in whatquantities for each element of the WBS. The list of resource requirements will beused for staff acquisition and procurement planning. Develop Scheduledetermines when the resources are needed.
This is a hierarchical structure of identified resources, sorted by category andtype. When limited to people resources, it is sometimes referred to as a projectorganization chart.
Updates include activity list, activity attributes, and resource calendars
Resource Breakdown Structure
Project Documents Updates
6.5
Estimate Activity Durations
Planning: Time Management PMBOK® Fifth Edition, Page 166
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Outputs
Activity duration estimatesProject documents updates
Tools &
Techniques
Expert judgmentAnalogous estimating
Parametric estimatingThree-point estimatingGroup decision-making
techniquesReserve analysis
Inputs
Schedule management planActivity listActivity attributesActivity resource requirementsResource calendarsProject scope statementRisk registerResource breakdown structureEnterprise environmental factorsOrganizational process assets
Page 93
6.5 Estimate Activity Durations PMBOK® Fifth Edition, Page 166
Estimates may be obtained in the
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Estimates may be obtained in thefollowing ways:
• Expert judgment• Analogous estimating• Parametric estimating• Three-point estimates• Group decision-making
A contingency reserve (or timereserve, or buffer) may be used toaccount for schedule uncertainty
Page 93
6.5 Estimate Activity Durations
Definition: Estimating the number of work periods needed to complete
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Definition: Estimating the number of work periods needed to completeeach activity with estimated resources.
The team members should make the estimate.
Estimates: (1) amount of work to complete each activity, (2) number of resources to be applied, and (3) number of work periods needed to finish
each activity.
Duration estimates are progressively elaborated.
Rolling Wave applies to duration estimating
Estimating duration includes elapsed time as well as work time.
Page 93
6.5.1 Estimate Activity DurationsInputs
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Schedule management plan Activity list Activity attributes Activity resource requirements Resource calendars Project scope statement Risk register Resource breakdown structure Enterprise environmental factors
Organizational process assets
6.5.2 Estimate Activity DurationsTools and Techniques, Estimating Methods
PMBOK® Fifth Edition, Page
169
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Analogous Time Estimating (a form of expert judgment):
Estimating the time to do tasks or to do a current project by extrapolatingfrom actual cost of a previous project. Also called top-down time estimating.Inexpensive but may also be inaccurate.
Parametric Time Estimating:Using a statistical relationship to predict project times, e.g., activitymultiplied by productivity rate predicts time standards, or number of
drawings multiplied by labor hours per drawing calculates drawing duration.
Expert Judgment:By the project team, or other experts, e.g., rolling up theWBS time estimates to get a project total.
Task “A”
Start Date Stop Date
Est. HoursWho?
ExamTip
People doing the work create time & cost estimates
Reserve Analysis (Contingency):Project Teams can incorporate additionaltime into projects for schedule riskcontingency or buffer. Qual. (%) or Quant.(Monte Carlo)
6.5.2 Estimate Activity Durations PMBOK® Fifth Edition, Page 170
Tools and Techniques, Analysis Methods
Critical Path Method (CPM)
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Critical Path Method (CPM)
• Uses a weighted average to estimate activity and project durations.• Provides variance estimates for duration dates.• Emphasis is on controlling schedule and leaving cost flexible• Used on ADM (AOA) diagrams, can have dummies.• Is used on PDM diagrams also, but they have no dummies
Three Point Estimates (PERT=Program Evaluation and Review Technique)
• One time estimate per task = “most likely” duration.
• The emphasis is on controlling cost and leaving schedule flexible.• Used on ADM (AOA) diagrams, can have dummies.• Is used on PDM diagrams also, but they have no dummies
Exam
Tip
Pessimistic - Optimistic
6
Pessimistic + Optimistic + (4 x Most Likely)
6te =
Pessimistic - Optimistic
6
2Variance =
StandardDeviation =
Sometimes
called BetaDistribution
Sometimes
called Methodof Moments
6.5.2 Estimate Activity DurationsTools and Techniques, Duration Estimates
3-Point or
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Quantitative EstimateIndication of Range
Indication of Confidence
19 1days with 68% confidence19 2 days with 95.5% confidence19 4 days with 99.7% confidence
o = most optimistic completion timep = most pessimistic completion timem= most likely completion time
te = o + 4m + p
6
(te) = p – o
6
te 1 <=> 68% probabilityte 2 <=> 95.5% probability
te 3 <=> 99.7% probability
16 17 18 19 20 21 22 23 2415
PERT
Analysis
Exercise
Calculate the following values using PERT…
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A 14 27 47 28.166 5.5 30.25
B 41 60 89 61.666 8 64
C 39 44 48 43.833 1.5 2.25
D 29 37 42 36.5 2.166 4.693
Task Opt Likely Pess PERT Std. Dev Variance
Assuming that the tasks listed above make up the entire critical path for the project,
how long will the project take? 170.2 days ± 10.1 days (add the variances and take square root)
Page 99
6.6
Develop Schedule
Planning: Time Management
PMBOK®
Fifth
Edition, Page
172
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Outputs
Schedule baselineProject scheduleSchedule dataProject calendarsProject management plan
updatesProject documents updates
Tools &
Techniques
Schedule network analysisCritical path methodCritical chain method
Resource optimizationtechniques
Modeling techniquesLeads and lagsSchedule compressionScheduling tool
Inputs
Schedule management planActivity listActivity attributesProject schedule network diagrams
Activity resource requirementsResource calendarsActivity duration estimatesProject scope statementRisk registerProject staff assignmentsResource breakdown structureEnterprise environmental
factorsOrganizational process
assets
Page 101
6.6 Develop Schedule
Develop Schedule is the process of analyzing activity sequences, durations,
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resource requirements and schedule constraints to create the project schedule
A technique to generate theproject schedule employingvarious analytical
techniques such as criticalpath, critical chain, what-if
analysis and resourceoptimization
Schedule Network Analysis
A method used to estimate
minimum duration andflexibility in network paths.Calculates theoretical early
and late start and finishdates for all activities
without regard to resourcelimitations, using forward
and backward pass analysis
Critical Path Method
Allows the team to placebuffers on any network
path to account for limited
resources and durationuncertainties. The resource-constrained critical path isthe critical chain. A projectbuffer can be placed at the
end of the critical chain,and feeding buffers can be
places on non-critical legsthat feed into the critical
chain.
Critical Chain Method
Pages 103-105 & 110
6.6 Develop Schedule
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Determines planned start and finish calendar dates for project activities
Schedule development is iterative and continuously elaborated
Requires review of duration and resource estimates to create a schedule
Creates a baseline against which to track progress
6.6.2 Develop ScheduleTools and
Techniques, Schedule Network Analysis
k l h h h h d l l
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Critical Path Method (CPM)
• Uses a weighted average to estimate activity and project durations.• Provides variance estimates for duration dates.• Emphasis is on controlling schedule and leaving cost flexible
Three Point Estimates (PERT=Program Evaluation and Review Technique)
• One time estimate per task = “most likely” duration.
• The emphasis is on controlling cost and leaving schedule flexible.
Pessimistic - Optimistic
6
Pessimistic + Optimistic + (4 x Most Likely)6
te =
Pessimistic - Optimistic
6
2Variance =
StandardDeviation =
Network analysis is a technique that generates the project schedule. It employsa schedule model and includes CPM, critical chain method, what-if analysis andresource optimization to calculate early and late start and finish dates.
6.6.2 Develop ScheduleTools and
Techniques, Critical Path Method (CPM)
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CPM calculates early and late start and finish dates for activities using forward and
backward pass analyses through the network paths. The early and late start andfinish dates may not be the same on different network paths since total float may
be positive, negative, or zero. Total float provides schedule flexibility.
Critical paths have either zero or negative total float. The definition of “Critical
Path” is the longest addition of activity durations on a path from start to finish. It is
also defined as the shortest period of time in which the project can be completed.
The definition of “Total Float” is the total amount of time a schedule activity can bedelayed from its early start date without delaying the project finish date. CPMcalculates total float by determining the difference between early finish and late
finish dates, or early and late start dates. Also known as slack, float, or project
float.
“Free Float” is the amount of time a schedule activity can be delayed withoutdelaying the early start date of its successor.
ExamTip
Slack Analysis
If you have a network with parallel paths and one leg has slack,h t th h d l d t k th l k t th d
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when you create the schedule, do you take the slack at the end
of that leg or at the start?
12 days 16 days
9 days 13 days 6 days
Slack
12 days 16 days
9 days 13 days6 days
Slack
OR
When first laying out a schedule, put the slack at the end of
the shorter leg. It helps with resource leveling and recovery ifsomething happens to either of the two shorter legs duringexecution. Don’t schedule projects JIT.
JIT
Example of Critical Path Method©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK
®
Guide), Fifth Edition
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Start FinishA
1 5 5
1 0 5
B
6 5 10
11 5 15
C
6 10 15
6 0 15
D
16 15 30
16 0 30
Activity Name
EarlyStart
EarlyFinishDuration
LateFinish
LateStart
TotalFloat
Legend
Critical PathNon-Critical Path
Path A, B, D = 25
Path A, C, D = 30
Page 105
6.6.2 Develop ScheduleCritical
Path MethodSupport
Sales Aids &Brochure
Production
1 Week
2 Weeks
2 Weeks 0 Week
3 Weeks
4 Weeks 0 Week
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• The critical path is the longest addition ofdurations over a network.
• It is the shortest period of time the project canbe done.
• A project may have more than one critical path• The critical path may change as the projectprogresses
• Critical Path may be found using CPM, Three-Point, or Monte Carlo analyses.
Definition
Brochures
Margin
Stock
Profile
Training
Acceptance
Go/No Go
Decision Advertising
Training
DBT Stocking &Measuring Sys
Go/No Go
Launch
ProgramLaunch
Sales
1 Week 2 Weeks
4 Weeks
1 Week
5 Weeks
7 Weeks
1 Week
12 Weeks
Page 106
Calculate the Critical Path
2 32 days
1 5
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number above the node is the earliest possible start datenumber below the node is the latest possible start datecritical path is where earliest start date = latest start date
1
2
4
3
6
5 Activity D
Activity C
1 day
0
0
9
95
5
3 5
6
7
Page 106 PMP® Prep: PMBOK 4® - 2013
Critical Path: Related termsEarly Start Date is the earliest date that uncompleted activities can be started given thenetwork logic and any schedule constraints
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Early Finish Date is the earliest date that uncompleted activities can be finished giventhe network logic and any schedule constraints
Late Start Date is the latest date that an activity can begin without compromising aspecified milestone (generally the project finish date)
Late Finish Date is the latest date than an activity can finish without compromising a
specified milestone (generally the project finish date)
Total Float is the amount of time an activity can be delayed from its scheduled startdate without delaying the project finish date, or violating a schedule constraint. Alsoknow as float , slack , or project float
Free Float is the amount of time an activity can be delayed without delaying the earlystart of any following activities
Slack Time or Total Float = Late Finish Date - Early Finish Date, or Late Start - Early Start
Page 107
Calculating Critical Path and Float
TF = 14FF = 0
Critical Path (C-E-F) = 24Total Float in A-D-F = 14Total Float in B E F 9
------ = Backward Pass
------ = Forward Pass
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A
B
C
D
E
F3
9
2
12
3
50 5
0 3
0 12
21 24
12 21
5 7
21 24
19 21
0 12
12 21
14 19
9 12
FF 0
TF = 14FF = 14
TF = 9
FF = 2
TF = 0FF = 0
Total Float in B-E-F = 9Free float: The
difference betweenearly start ofpredecessor and earlystart of successor,minus the estimatedtime of the predecessor
Free Float of A = 0 (5-0-5)Free Float of B = 2 (5-0-3)Free Float of D = 14 (21-5-2)
Exercise
(1) Draw the network diagram and find the critical path…
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Work
Package
Preceding
Activity
Estimate in
Months
START 0
D START 4
A START 6
F D,A 7
E D 8
G F,E 5
B F 5
H G 7
C H 8
END C,B 0
START
D
A
E
F
G
B
H C
END
Answer: The critical path (project duration) is 33 months
(2) Find the slack of task A-F-B path, and of the D-E-G-H-Cpath from the answer above.
Answer: A-F-B = 15 Months, D-E-G-H-C = 1 Month
Page 109
Exercise: ADMThere may be 5-7 questions on network diagrams on the exam. Here is an example of aform of question that has a table of information and four questions that relate to it:
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2. If the duration of task F changes to 2 weeks, what is the effect on the project?3. What task(s) must be completed before task D begins?4. If the management tells you to complete the project two weeks early, what is the project float?
Does the critical path change?
Work Package
(Nodes)
Estimate
In WeeksA: (0 - 1) 3
9
C: (1 - 3) 3
(2 - 3) Dummy
E: (2 - 5) 2
D: (3 - 4) 2
F: (3 - 5) 1
G: (5 - 6) 4
H: (4 - 6) 2
B: (0 - 2)
The critical path is B, E, G. (Note that 0, 1, 2, 3, 4, 5, and 6are nodes in the AOA or ADM Diagram). Critical Path = 15Weeks.
0
1
2
3
5
4
6
B = 9
A = 3
C = 3 D = 2
E = 2G = 4
F = 1
H = 2
Dummy
B-Dummy-F-G also becomes critical
Tasks A, B and C
Float is -2 weeks. No CP change unless Crashed or Fast Tracked
1. What tasks are on the critical path?
C i i l h i difi h h d l f li i d I i i ll
6.6.2 Develop ScheduleTools and
Techniques, Critical Chain Method
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Critical chain modifies the schedule to account for limited resources. Initially
the critical path of a network is calculated using activity duration estimates.Then, resources are applied and the resulting schedule may be resource
limited. The critical chain method adds duration buffers that are non-work
activities. The planned activities are then scheduled to their latest start and
finish dates. Instead of managing total float, critical chain focuses on managing
the buffer durations and the resources applied to the planned activities.
Pages 110
Example of Critical Chain Method
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Start Finish
Legend Critical Chain LinkNon-Critical Link
Activity C
Activity A
Activity G
Activity B
Activity D
FeedingBuffer
Feeding
Buffer
Activity E Activity FProjectBuffer
Pages 110
6.6.2 Develop ScheduleTools and
Techniques, Resource
Optimization: Leveling and Smoothing
Th hi t i ti h d di l f th t f
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Month 1 Month 2 Month 3 Month 4
Product Manager
Resource plans are best when resource requirementsincrease and decrease without variations
0.5
1.0
1.5
The resource histogram is a time-phased display of the amount of
project work assigned to each resource
• May be used at the individual or group level• May be used to detect over-allocation of resources• Avoid over-allocation, under-allocation, and peaks and valleys
(PMBOK Fourth Edition, Page 156)
Scheduling Tool
A C
2 2 Duration in Days
Network Analysis
and Resource Leveling
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Critical Path: A-D-F
andB-E-F
4 Days Slack
D
F
EB
Start Finish
4
2
3 3
2 3
1
1 1
2 Work Force RequiredWork Force AvailableEach Day: 4 People
A
D
FC
BE
2 2
1 1 1 1
2 23 3
1 1 1
1 1 1
1 2 3 4 5 6 7 8Days
Work Force 3 3 5 5 2 2 2 2
A C
2 2
42 3
Network Analysis
and Resource Leveling
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D
F
EB
Start Finish
4
23 3
2 3
1
1 1
2
A
B
E
2 2
D
F
1 1 1 1
2 2
C3 3
1 1 1
1 1 1
1 2 3 4 5 6 7 8 9 10Days
Work Force 3 3 4 4 2 2 1 1 2 2
2 Days Slack
Page 112
6.6.2 Develop ScheduleTools and
Techniques, “What if” Scenario Analysis
“What-If” analysis is the process of evaluating scenarios and their effect on schedule,
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i.e., “what if” a major component delivery is delayed? It assesses effect of adverse
conditions on the project schedule and helps with response planning.
Simulations calculate multiple project durations with different activity assumptions.They use three-point estimates (PERT) to determine duration uncertainty. The mostcommon simulation uses Monte Carlo analysis. Possible activity durations are definedand used to calculate outcomes for the total project. Simulations are valuable for
analyzing the sensitivity of the project to changes and for addressing the impact of uncertainty in the network logic, duration of activities, and availability of resources.
Applying Leads and Lags
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A lead allows acceleration of the successor activity (you
“lead in” to fast track a project).
A lag directs a delay in the successor activity (you “lag out” to
allow a waiting time).
ExamTip
Pages 114
If you can’t change the scope, there are two ways to meet schedule constraints:
6.6.2 Develop ScheduleTools and
Techniques, Schedule Compression
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y g p , y
CrashingA technique used to shorten the schedule duration for the least
incremental cost by adding resources.
Page 114
ExamTip
Fast TrackingA technique where activities or phases normally done in sequence
are done in parallel for at least a portion of their duration. Fasttracking may result in rework and increased risk.
Exercise1. What option below would you select to save three months on the
project assuming that the tasks listed below represent critical path?
There is no answer. The answer depends on whether cost or risk is most important.
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Task OriginalDuration
in months
CrashDuration
in months
TimeSavings
OriginalCost
in $
CrashCost
in $
ExtraCost
in $
ExtraCost in $
per mth
RiskImpact
F 14 12 2 10,000 14,000 4,000 2,000 HIGH
A 9 7 2 17,000 27,000 10,000 5,000 LOW
H 3 2 1 25,000 26,000 1,000 1,000 LOWG 7 6 1 14,000 16,000 2,000 2,000 HIGH
C 11 8 3 27,000 36,000 9,000 3,000 NONE
2 Lets assume that time is of most importance followed by cost.Such questions are on the exam. What would be your answer?
The answer would be to select tasks F and H for an additional cost of $5,000.If risk is second to time in importance the answer would be to select task C foran additional cost of $9,000. The exam will probably not include risk columnbecause risk (nor quality) is not considered when most people crash or fast tracktheir projects. Without a risk column, simply pick the least cost alternative
Page 116
The Project Schedule may be presented in tabular form, however it’s more
6.6.3 Develop ScheduleOutputs
, Project Schedule
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often presented graphically using milestone charts, bar charts or project
schedule network diagrams. The schedule baseline is a specific version of theproject schedule that is accepted and approved by the project team. It is acomponent of the project management plan
Page 117
6.6.3 Develop ScheduleOutputs
, Project Schedule
Example Schedules
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Example: Milestone Chart
Example: Bar Chart, Gantt Chart
p
Page 117
ID Task Name
1 Mark Out Site
2 Dig Foundation A
3 Dig Foundation B
4 Concrete Foundation A
5 Concrete Foundation B
6 Com plete Base at A7 Erect Plinth
8 Erect Tower A
9 Erect Tower B
10 Erect Span
F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W
, Nov 16, '97 Nov 23, '97 Nov 30, '97 Dec 7, '97 Dec 14, '97 Dec 21, '97
The Project Schedule
• May be represented by a Gantt chart, an activity networkdiagram, or a milestone chart
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diagram, or a milestone chart
• Indicates the planned start and finish dates for each WBSelement
• May also indicate early start, late start, early finish, andlate finish dates for each activity
Definition
Brochures
Support
Margin
StockProfile
Training
Acceptance
Go/No Go
Decision Advertizing
Training
DBT Stocking &
Measuring Sys
Sales Aids &
Brochure
Production
Go/No Go
Launch
ProgramLaunch
Sales
Name Duration
Definition1w
Feasibility30d
Brochures1w
Margin2w
Stock Profile4w
Support2w
Training2w
Acceptance1w
Go/No Go Decision0d
Program Development35d
Sales Aids & Brochure3w
Advertising4w
Training 5w
DBT Stock & Measure7w
0d
Program Launch 1w
Sales 12w
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7
Page 118
Practice Test #1
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Turn to page 387 in the workbook
There are 60 questions.
You have 72 minutes to complete
Answers are on page 404
Page 387
Hint: Use scratch paper for answers,so you can reuse the questions for practice
7.1
Plan Cost Management
Planning: Cost Management
T l &
PMBOK® Fifth Edition, Page
195
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Outputs
Cost management plan
Tools &
Techniques
Expert judgment
Analytical techniquesMeetings
Inputs
Project management plan
Project charterEnterprise environmental factorsOrganizational process assets
Page 119
Plan
Cost ManagementPlan Cost Management is the process that establishes policies, procedures,documentation for planning, expending, and controlling project costs.This is a component of the project management plan
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This is a component of the project management plan.
Inputs
• Project Management PlanInformation to develop the Cost Management Plan:
• Scope baseline
• Schedule baseline
• Other information
• Project Charter(Provides a summary budget)
• EEF and OPA
Page 120
Plan
Cost ManagementTools and Techniques
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• Expert Judgment• Analytical Techniques
(Choosing options to fund the project: self-funding,equity funding, or debt funding. Ways to financeresources: make, buy, rent, or lease. Policies mayinfluence: ROI, payback period, internal rate of return,
discounted cash flow, and net present value.)
• Meetings
Page 120
Plan
Cost ManagementOutputs
• Cost Management Plan
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units of measure, level of precision,
level of accuracy (e.g., ±10%),
organizational procedures (the WBS is a frameworkfor cost estimating),
control threshold (% deviation from the baselineplan),
rules of performance measurement (EVM),
reporting formats (format and frequency of costreports),
process descriptions, strategic funding, exchange rate fluctuations, and
cost recording.
Page 121
7.2
Estimate Costs
Planning: Cost Management
Tools &
PMBOK® Fifth Edition, Page
200
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Outputs
Activity cost estimates
Basis of estimatesProject documents updates
Tools &
Techniques
Expert judgmentAnalogous estimatingParametric estimatingBottom-up estimatesThree-point estimates
Reserve analysisCost of qualityProject management
softwareVendor bid analysisGroup decision-
makingtechniques
Inputs
Cost management planHuman resource mgt. planScope baseline
Project scheduleRisk registerEnterprise environmental factorsOrganizational process assets
Page 122
7.2 Estimate Costs
Estimate Costs is the process ofdeveloping an approximation of the
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monetary resources needed to complete
project activities.
Usually they are expressed in monetaryterms, although other units of measuresuch as person hours or staff days areoften used.
Costs include the resources to be chargedto the project which includes labor, butmay also include also materials,equipment and facility fees and services.
Both direct and indirect costs should beconsidered.
Page 123
7.2 Estimate Costs PMBOK® Fifth Edition, Page
201
Cost estimates are progressively elaborated during the course of the
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Cost estimates are progressively elaborated during the course of the
project as additional detail becomes available. Accuracy increasesthrough the project life cycle.
For example, a project in the Initiation phase could have a roughorder of magnitude (ROM) estimate in the range of -25% to +75%.Later in the project as more detail is known, estimates could narrow
to -5% to +10%.
7.2.2 Estimate CostsInputs
• Cost Management Plan
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(how project costs will be managed and controlled)
• Human Resource Management Plan(project staffing plan, personnel rates, rewards/recognition)
• Scope baseline(Scope statement, WBS, and WBS dictionary)
• Project Schedule(type and quantity of resources and time required tocomplete the work)
• Risk Register(negative risks cause near-term costs to increase and project
schedules may be delayed)
• EEF and OPA
7.2.2 Estimate CostsInputs
• Should be determined per unit of use (e g hours meters kilos)
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• Should be determined per unit of use (e.g., hours, meters, kilos)
• Salaries should be known at the individual or group rate• Components of labor rates may include:
– base rate – tax burden if applicable (as a percentage of base rate)
– benefit burden if applicable (fixed or percentage of base rate) – allocation for overhead (percentage of burdened rate)
Charge Rate = [(Base Rate) * (Burden)] * Overhead
i.e., Charge Rate = [($30/hr) * (1.3)] * 1.8 = $70/hr.
Expert Judgment: consult with experts and obtain historical information.
A l E ti ti t d ti ti i il j t i th b i f ti t
7.2.2 Estimate CostsTools and
Techniques
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Analogous Estimating: top-down estimating - a similar project is the basis of estimates
for the current one. It is most reliable when previous projects are similar.
Parametric Estimating: uses a statistical link between historical data and the currentproject which is then used for calculation (e.g., cost per square foot).
Reserve Analysis: a contingency reserve may be used to account for cost uncertainty
Cost of Quality (COQ): determining costs incurred to assure quality
Project Management Software: simplifies cost estimating. Rapid alternatives evaluation
Vendor Bid Analysis: bids from suppliers help analyze what a project should cost
Pages 126-129
Bottom-Up Estimating: the smaller the activity, the more accurate is the cost estimate.
Three-Point Estimates (PERT): a weighted average, more accuracy.C
e=
o + 4m + p
6
Group Decision-Making Techniques: Delphi or nominal group techniques improve costaccuracy and the team commitment to cost estimates
7.2.2 Estimate CostsTools and
Techniques
Analogous Cost Estimating (a form of expert judgment):Estimating cost of a current project by extrapolation from actual cost of
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ExamTip
People doing the work create time & cost estimates
g p j y p
a previous project. Also called top-down estimating. Inexpensive butmay also be inaccurate.
Parametric Cost Estimating:The quantities for specific work multiplied by the resource rate canestimate cost (number of drawings times cost per drawing, cost per lineof code, cost per square foot for types of construction).
Bottom-Up Estimating:
Rolling up the WBS estimates to get a project total.
Task “A”
Start Date Stop Date
Est. HoursWho?
Page 128
7.2.2 Estimate CostsTools and
Techniques
o most optimistic cost estimate
3-PointAnalysis or
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Quantitative EstimateIndication of Range
Indication of Confidence
60 5days with 68% confidence60 10 days with 95.5% confidence60 20 days with 99.7% confidence
o = most optimistic cost estimate
p = most pessimistic cost estimatem = most likely cost estimate
Ce =o + 4m + p
6
(Ce) = p – o
6
Ce 1 <=> 68% probabilityCe 2 <=> 95.5% probability
Ce 3 <=> 99.7% probability
45 50 55 60 65 70 75 80 8540
y
PERT
Hours
AACE International Cost Classification Recommended Practices
Cl N E d U L l f P j A
7.2.3 Estimate CostsOutputs, Accuracy of Estimates
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Class Name End Usage Level of Project Accuracy
Definition Range
5 Rough Order of Magnitude Concept Screening 0 to 2% L: -20 to -50%
(ROM) H: +30 to +100%
4 Concept Study or Feasibility 1 to 15% L: -15 to -30%
H: +20 to +50%
3 Budget/Authorization Budget Authorization 10 to 40% L: -10 to -20%
or Control H: +10 to +30%
2 Definitive/Control Control or Bid/Tender 30 to 70% L: -5 to +15%
H: +5 to +20%
1 Detail/Bid/Tender Check Estimate or 50 to 100% L: -3 to -10%
Bid/Tender H: +3 to +15%
PMI, PMBOK®
Order of Magnitude Estimates: -25% to +75%(Usually made during Initiation Phase)
Budget Estimate: -10% to +25%(Usually made during the Planning Phase)
Definitive Estimate: -5% to +10%(Roll up of WBS? Rule of 80 hours or two weeks?)
ExamTip
These come up often on the exam, but are easy
to answer once you memorize the numbers.
Page 130
7.3
Determine Budget
Planning: Cost Management
OTools &
I
PMBOK®
Fifth
Edition, Page
208
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Outputs
Cost baseline
Project funding requirementsProject documents updates
Tools &
Techniques
Cost aggregationReserve analysis
Expert judgmentHistorical relationshipsFunding limit reconciliation
Inputs
Cost management planScope baselineActivity cost estimatesBasis of estimates
Project scheduleResource calendarsRisk registerAgreementsOrganizational process assets
Page 131
7.3.1 Determine BudgetDetermine Budget is the process of aggregating estimated costs of individual activities orwork packages to establish an authorized cost baseline.
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The cost baseline is the time-phased project budget, but excludes management reserves.
Inputs
Cost Management Plan Scope Baseline Activity Cost Estimates Basis of Estimates Project Schedule Resource Calendars Risk Register
Agreements Organizational Process Assets
Pages 131-132
7.3.2 Determine BudgetTools and
Techniques
Cost Aggregation: work package costs at the bottom of the WBS are summed
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(aggregated) to the next level, then costs at this level are summed to higher levels,etc. This is called “rolling costs up the WBS” to develop an overall cost budget.
Reserve Analysis: establishes both contingency reserves (unplanned changes due to
identified risks, “known unknowns”), and management reserves (unplanned changes to
project scope and cost, “unknown unknowns”). Reserves are NOT part of cost baseline,
and not part of earned value calculations, but are included in the budget.
Expert Judgment: budgeting information from prior, similar projects.
Funding Limit Reconciliation: funding limits may be set by the customer to whichspending must be reconciled. This might cause rescheduling and reallocation ofresources to regulate cash flow.
Historical Relationships: parametric analysis from historical sources can predict totalcosts. Math models are used.
ExamTip
Cost Baseline: a time-phased budget (either by period or cumulative overthe life of the project) used to measure, monitor and control project costs.
7.3.3 Determine BudgetOutputs, Cost
Baseline
, or Performance Measurement Baseline (PMB)
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Time
Cost Cost Baseline
CumulativePlanned Value (PV)
Monthly PlannedValue (PV)
Spending Plans
and Cash FlowPlans are special
types of CostBaselines
the life of the project) used to measure, monitor and control project costs.
BAC
Page 134
ExamTip
Project Budget Components
ProjectBudget
ManagementReserve
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CostBaseline
ControlAccounts
Contingency
Reserve
Work PackageCost Estimates
ActivityContingency Reserve
Activity CostEstimates
TotalAmount
Project Budget Component
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
Page 135
7.3.3 Determine BudgetOutputs: Funding Requirements and Management Reserve
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Time
Cost
Cost Baseline
Cumulative PlannedValue (PV)
Cash Flow
Funding
} ManagementReserve
Project Budget
BAC
Expenditures
ExamTip
A Review
The Project Management Plan
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Plan Scope Management Collect Requirements Define Scope Create WBS
Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations
Develop Schedule Plan Cost Management Estimate Costs
Determine Budget Plan Quality Management Plan Human Resource Management Plan Communications Management
Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response
Plan Procurement Management Plan Stakeholder Management
Think of the PM plan as a bucket into which all the other plans “drip” until it is full.
Pages 45 & 49
Make a list of items that go into a Project Plan in the spaces provided below :
Exercise
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Make a list of items that go into a Project Plan in the spaces provided below :
Exercise
Project Management Plan Estimate Costs
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Collect requirements
Define Scope
Create WBS
Plan Schedule ManagementDefine Activities
Sequence Activities
Est. Activity Resources
Est. Activity Durations
Develop Schedule
Plan Cost Management
Determine BudgetPlan Quality
Develop HR Plan
Plan Communications
Plan Risk Management
Identify Risks
Perform Qual. Risk Analysis
Perform Quant. Risk Analysis
Plan Risk Responses
Plan Scope Management
Plan Procurement
Plan Stakeholder Mgt.
Chapter 8: Project Quality ManagementPMBOK
Fifth
Edition, Page
227
Knowledge AreaQuality management processes include:
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Quality is the degree to which a set of inherentcharacteristics fulfill requirements
Page 139
y g p
8.1 Plan Quality Management: The process of identifying quality requirements/standardsfor the project and its deliverables, and documenting how the project will demonstratecompliance.
8.2 Perform Quality Assurance: The process of auditing the quality requirements, andresults from quality control measurements, to ensure that appropriate qualitystandards and operational definitions are used.
8.3 Control Quality: The process of monitoring and recording results from executing qualityactivities to assess performance and recommend changes.
Quality management here is compatible with ISO (International Organization for Standardization) as well asShewhart, Deming, Juran, Crosby, FMEA (Failure Modes and Effects Analysis), Customer Satisfaction, TheVoice of the Customer, Prevention over Inspection, COQ (Cost of Quality), and Continuous Improvement(Total Quality Management, Six-Sigma, maturity models), and Management Responsibility.
Chapter 8: Project Quality Management
Quality vs.
Grade
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Quality: The degree to which a set ofinherent characteristics fulfillrequirements.
Grade: Products that perform the samefunction but have different technicalcharacteristics.
A product may be high quality (no obvious defects)
but low grade (limited number of features)
Page 139
ExamTip
Chapter 8: Project Quality Management
Precision vs. Accuracy
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ExamTip
Precision = Consistency.
Accuracy = Correctness.
Precision: repeated measurements have little scatter.
Accuracy: measured value is close to the true value.
Precision
Accuracy
Note to Test Takers
Quality is one of the most heavily
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tested areas on the examination.
Study it completely during your
preparations to take the test!
Page 141
8.1 Plan
Quality Management
Planning: Project Quality Management
OutputsTools &
Inputs
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Outputs
Quality management planProcess improvement plan
Quality metricsQuality checklistsProject documents updates
Techniques
Cost-benefit analysisCost of quality (COQ)Seven basic quality toolsBenchmarkingDesign of experimentsStatistical samplingAdditional quality planning
toolsMeetings
Inputs
Project management planStakeholder registerRisk register
Requirements documentationEnterprise environmental factorsOrganizational process assets
Page 142
8.1 Plan Quality Management PMBOK® Fifth Edition, Page 231
Plan Quality is the process of identifyingquality requirements and/or standards
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for the project and its deliverables, anddocumenting how the project willdemonstrate compliance.
The Quality Management Plan, which is
an output of this process, describes howthe project management team willimplement the quality policy and meetthe quality requirements.
Quality is planned, designed, and built into the project.It is not inspected in.
Page 142
8.1.1 Plan Quality ManagementInputs
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• Project Management Plan, which includes:Scope Baseline (Scope statement, WBS, and WBS dictionary),
Schedule & Cost Baselines, etc.
• Stakeholder Register
• Risk Register
• Requirements Documentation(stakeholder quality requirements)
• EEF and OPA
8.1.2 Plan Quality ManagementTools and Techniques
Cost-Benefit Analysis: compares COQ with expected benefits.
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Cost of Quality (COQ): investment in preventing non-conformance to requirements.
Seven Basic Quality Tools: (1) cause and effect diagrams, (2) flowcharts, (3)checksheets, (4) Pareto diagrams, (5)histograms, (6) control charts, (7) scatterdiagrams.
Statistical Sampling: inspecting part of a batch to qualify the whole population.
Additional Quality Planning Tools: brainstorming, force field analysis, nominal grouptechnique, quality management and control tools.
Meetings
Benchmarking: comparing to similar projects to identify best practices.
Design of Experiments: statistical: what factors influence project variables?
Pages 144 - 151
8.1.2 Plan QualityTools and Techniques: Quality Definitions
Conformance to Requirements, Specifications and Fitness For Use:
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• This one phrase will help you to answer about 4 questions on the exam.Memorize it!
• The PM should perform careful “needs” analysis of the stakeholders which
become foundations of the Scope
Gold Plating:
• PMI® does not support giving the customer “extras”.
• Gold Plating adds no value to the project.
• Exam questions have the team member’s coming to the PM with impressions of what
the customer would like.
Prevention over Inspection
Note: There may be 15 or more questions relating to definitions and control charts
Exam
Tip
8.1.2 Plan QualityTools and Techniques: Cost of Quality (COQ)
Cost of Conformance Cost of Nonconformance
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Prevention Costs(Build a quality product)
• Training
• Documentation processes
• Equipment
• Time to do it right
Appraisal Costs(Assess the quality)
• Testing
• Destructive testing loss
• Inspections
Internal Failure Costs(Failures found by project team)
• Rework
• Scrap
External Failure Costs(Failures found by the customer)
• Liabilities
• Warranty work
• Lost business
Money spent to avoid failures
Money spent because of failures
ExamTip
8.1.2 Plan Quality ManagementTools and Techniques: Flowcharting
Cause & Effect, Ishikawa or Fishbone Diagrams
Not Following
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EFFECTCAUSES
People
Lack of Training
MethodsMaterial
Transport IT System Procedure
Process Flowchart
Design Review
Revise
OK?Yes
Proceed
No
Not Following
Procedures
8.1.2 Plan Quality ManagementTools and Techniques:
Flowcharting, SIPOC Model
Suppliers Inputs Process Outputs Customers ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ ____________
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Supplier Process Customer
Input Output
Requirements andFeedback Loop
Requirements andFeedback Loop
Requirements List Measurements List Requirements List Measurements List
____________ _____________ _____________ _____________
____________ _____________ _____________ _____________ ____________ _____________ _____________ _____________
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
Page 145-146
8.1.2 Plan Quality ManagementTools and Techniques: Pareto Diagrams and Design of Experiments
e )
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source
% c o n t r
i b u t i o n ( o r f r e q u e
n c y o f o c c u r r e n c e
Pareto’s Law:
80/20 Rule
80%?
Design of Experiments:
Which factors may influence
specific variables?
“What If” Analysis
A histogram shows central tendency, dispersion,
8.1.2 Plan Quality ManagementTools and Techniques:
Histograms
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A histogram shows central tendency, dispersion,and shape of a statistical distribution.
0.5
1.0
1.5
Page 147
8.1.2 Plan Quality ManagementTools and Techniques:
Control Charts
A chart of process performance over time used todetermine if the process is in control or out of control
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in control normal distribution of outcomes due to common causes of variation
inherent in the process
out of control rule of seven, trends, and cycles due to special causes of variation
external to the process
±
1
6 8 %
±
2
9 5 . 5 %
±
3
9 9 . 7 %
...........
.......
...
........
UCL
LCL
...... Mean
.Normal
DistributionCurve
ExpectedVariation
Out of Control(Assignable Cause)
8.1.2 Plan Quality ManagementTools and Techniques:
Control
Chart
Upper Spec. Limit
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Plan or Mean
UCL
LCL
Lower Spec. Limit
Upper Spec. Limit
Actual
Hours recorded for this projectstarted on plan, but if the trendcontinues, hours spent will driftout of control.
8.1.2 Plan Quality ManagementTools and Techniques:
Scatter Diagram
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Timecard Submission vs. Travel Days
8.1.2 Plan Quality ManagementTools and Techniques:
Scatter Diagram
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0 5 10 15 20 250
2
4
6
-2
-4
-6
Total Travel Days in the Month
S u b m i s s i o n D a y s , E
a r l y ( - ) , L a t e ( + )
o o o
o
o
o
o
o
o
o
o
o
o oo
o o
o
oo o o
8.1.2 Plan Quality ManagementTools and Techniques:
Seven Basic Quality Tools
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©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
8.1.2 Plan Quality ManagementTools and Techniques: Statistical Sampling
…a technique for accepting or rejecting a larger population
by choosing a part of the population for inspection ...
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y g p p p p
• Statistical sampling can reduce the cost of QC on a project.
• The validity of statistical sampling depends on anappropriate choice of sample items and sample size.
• Sample size increases exponentially as the level of desired certaintyincreases and the acceptable level of error decreases.
• Sampling strategies include single samples from a lot, multiple smallsamples from a lot, and double sampling methods where the size of thesecond sample depends on the results of the first sample.
• All sampling strategies involve some risk of producer error (type I error)where acceptable lots are rejected based on a non-representative sampleor consumer error (type II error) where unacceptable lots are acceptedbased on a non-representative sample.
8.1.2 Plan Quality ManagementTools and Techniques: Additional Quality Planning Tools, Affinity Diagram
These include brainstorming, affinity diagrams, force field analysis, nominal
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group techniques, matrix diagrams, flowcharts, and prioritization matrices.Affinity Diagrams are useful for gathering large amounts of data (opinions, ideas etc.) and for organizing them into
groupings based on their relationship. An Affinity Diagram can help to identify patterns within data providingrecourse for further investigation or action.
Force Field Analysis looks at all the forces for and against a decision. In effect, it is a specialized method of
weighing pros and cons. You can plan to strengthen the forces supporting a decision, and reduce the impact of opposition to it.
A nominal group technique is a structured process which identifies and ranks the major problems or issues that
need addressing.
8.1.2 Plan QualityTools and Techniques: Additional Quality Planning Tools, Group Creativity
Brainstorming: a method of joint creative thinking that first records and
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considers all possible options/solutions without judgment beforeproceeding to critical evaluation of the project/product requirements.
Nominal Group Technique: enhances brainstorming with a voting processto rank the best ideas for further brainstorming or prioritization.
Delphi Technique: questionnaires are sent to a group of experts who
provide answers and are kept anonymous. Responses are compiled,prioritized, and sent back for another round of requirements gathering. Amethod for building consensus.
Idea/Mind Mapping: a graphical method of consolidating brainstorm ideasto show commonality and differences and to generate new ideas.
Affinity Diagram: gathering large numbers of ideas and sorting them intogroups for review and analysis – they help to identify patterns within data.
8.1.3 Plan Quality ManagementOutputs
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• Quality Management Plan• Process Improvement Plan
(process boundaries, configuration, metrics, and targets forimproved performance)
• Quality Metrics
• Quality Checklists
• Project Documents Updates(stakeholder register, responsibility assignment matrix, WBS,WBS dictionary, etc.)
8.1.3 Plan Quality ManagementOutputs: Update Responsibility Assignment Matrix (RACI Chart)
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R = Responsible
A = Accountable
C = Consulted
I = Informed
Chapter 9: Plan Human Resource ManagementPMBOK
Fifth
Edition, Page
255
Knowledge AreaProject Human Resource Management processes include:
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Human resource management includes the processesthat organize, manage, and lead the project team
The project management team (core, executive, orleadership team) is a subset of the project team
and is responsible for leadership activities.
ExamTip
Page 155
9.1 Plan Human Resource Management: The process of identifying and documentingproject roles., responsibilities required skills, reporting relationships, and creating astaffing management plan.
9.2 Acquire Project Team: confirming HR availability and obtaining the team to completeproject activities.
9.3 Develop Project Team: improving competencies, team members interaction, and teamenvironment to enhance performance.
9.4 Manage Project Team: tracking team member performance, providing feedback,resolving issues, and managing change to enhance project performance.
9.1
Plan
Human Resource
Management
Planning: Human Resource Management
Outputs
Tools &
Inputs
PMBOK
Fifth
Edition, Page
258
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Human resource managementplan
Techniques
Organization charts andposition descriptions
NetworkingOrganizational theoryExpert judgmentMeetings
Project management planActivity resource requirementsEnterprise environmental factorsOrganizational process assets
Page 156
9.1 Plan Human Resource ManagementPMBOK® Fifth Edition, Page 258
Plan Human Resource Management is the
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process of identifying and documentingproject roles, responsibilities, required skillsand reporting relationships and creating astaffing management plan
Page 156
9.1.2
Plan Human Resource ManagementTools and Techniques: Organization Charts and Position Descriptions
Hierarchical Chart
Project Organization Chart. shows project team members related to their work on
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the project. Simply substitute the name of the team member into the box of the WBS
BankingProtocols
Customer
Services(TM #1)
Information
Tech. and IS(TM #2)
Operations(TM #3)
Regulatory(TM #4)
System Design(TM #22)
SystemDevelopment
(TM #23)
Legal(TM #41)
Filing &Documentation
(TM #42)
AccountingRelations(TM #61)
Global Trans.Services(TM #51)
CashManagement
(TM #52)Audit &
Inspection(TM #53)
System Analysis(TM #21)
ProductPlanning(TM #11)
Treasury(TM #5)
Project
Management(PM)
Training(TM #31)
Sales(TM #12)
IntegrationProtocols
(TM #32)
StrategicPlanning
(TM #62)
9.1.2
Plan Human Resource ManagementTools and Techniques: Organization Charts and Position Descriptions
Resource Breakdown Structure and Organizational Breakdown Structure
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Resource Breakdown Structure breaks down projects by type of resource. It can
help track project costs and can contain categories other than human resources.
Organizational Breakdown Structure (OBS) is a depiction of the project
organization arranged to relate work packages to functional departments.
9.1.2
Plan Human Resource ManagementTools and Techniques: Organization Charts and Position Descriptions
Organizational Breakdown Structure
ProjectCost Accounts provide a
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Design Production
Comp. #2Comp. #1Comp. #2Comp. #1
C o m p a n y
E n g i n e e r i n g
M a n u f a c t u r i n g
A s s e m b l y
P a r t s
E l e
c t r i c a l
M e c h a n i c a l
Cost
Account
Cost
Account
Cost
Account
Cost
Account
Cost
Account
Cost
Account
Cost
Account
Cost
Account
way to control howfunctional organizationsto charge to projects.
WBS Codes showfunctional managersexactly what their
people are doing onthe project.
9.1.2
Plan Human Resource ManagementTools and Techniques: Organization Charts and Position Descriptions
Matrix Charts
Responsibility Assignment Matrix (RAM)
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PMI® advocates that all roles and responsibilities on a project be
clearly assigned and be linked to scope and to the WBS.
• Often used for decision responsibilities or to resolve conflict.
• Multiple RAMs at different levels of the project, also called LRCs.
• Other responsibility charts: Resource Histogram, Resource Gantt
Chart - know these.
RAM (n.) a structure that relates the OBS to the WBS to ensure that
the scope of work components are assigned to a responsible person.
Design Lead Support Advise Advise Advise
Prototype Support Lead Advise Advise AdviseScale Up Advise Advise Lead Support Support
Production Advise Advise Advise Lead Support
Assembly Advise Advise Advise Support Lead
D a v e
M a r y
G a v
i n
B o
b
T o m
R = Responsible
A = Accountable
C = Consulted
I = Informed
9.1.2
Plan Human Resource ManagementTools and Techniques: Organization Charts and Position Descriptions
Text
-
Oriented Forms
i i i i
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Position Descriptionsshow team memberresponsibilities,authority,competencies, andqualifications
outlined in a textdocument. These canbe used forPerformance
Evaluations
9.1.3
Plan Human Resource ManagementOutputs
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Human Resource Management Planroles and responsibilities, project organization charts,staffing management plan:
Staff Acquisition
Resource Calendars
Staff Release Plan Training Needs
Recognition and Rewards
Compliance
Safety.
9.1.2 Develop Human Resource PlanOutputs: Resource Calendars,
PMBOK
Fifth
Edition, Page
265
Resource Histogram is a time-phased display of
the amount of project work assigned to each resource
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• May be used at the individual or group level• May be used to detect over-allocation of resources
Chapter 10: Project Communications ManagementPMBOK
Fifth
Edition, Page
287
Knowledge Area
P j C i i M i l d
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Project Communications Management includes the processesrequired to ensure timely and appropriate generation, collection,
distribution, storage, retrieval, and disposition of project information.
Page 164
Project Communications Management processes include:10.1 Plan Communication Management: the process of developing an
appropriate approach and plan for project communications based onstakeholder’s information needs and requirements,
10.2 Manage Communications: the process of creating, collecting, distributing,storing, retrieving, and disposition of project information.
10.3 Control Communications - the process of monitoring and controllingcommunications throughout the entire project life cycle to ensureinformation needs of stakeholders are met.
10.2 Plan
Communications Management
Planning: Project Communications Management
OutputsTools &
T h i
Inputs
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Communications
management planProject documents updates
Techniques
Communication requirementsanalysis
Communication technology
Communication modelsCommunication methodsMeetings
Project management planStakeholder register
Enterprise environmental factorsOrganizational process assets
Page 165
10.2 Plan Communications ManagementPMBOK® Fifth Edition, Page 289
Communications Management is soimportant that it is sometimes included
l
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as a major WBS element
Page 165
Study Concept Prototype Qualification
TypicalProject
Pilot Production ProjectManagement &
CommunicationsPlan
10.2.2
Plan Communications ManagementTools and Techniques
Communications Requirements Analysis
Consider the following information as you plan your project
communications
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Communication Technology
Pages 166-167
communications:• the project organization and stakeholder responsibility relationships• the functional departments involved in the project• the logistics: persons involved with the project and their locations• external information needs: communicating with external
stakeholders and the media
Communications planning will be both enhanced and constrained by theavailable communications technology.
• urgency of need for the information• availability, ease of use, and cost of the technology• experience and expertise of the project staff and other stakeholders
• life of the available technology relative to the length of the project• project environment. Does the team meet face-to-face or in a virtualenvironment
• Sensitivity and confidentiality of the information.
10.2
Plan Communications Management
Plan Communications is the process of
d t i i th j t t k h ld i f ti
Tools and Techniques
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determining the project stakeholder informationneeds and defining a communication approach
N(N – 1)
2
Channels =
The formula:
Reveals the number of possible channels
of communication in a group, where N isthe number of people in the group
Page 166-167
10.2.2
Plan Communications Management
Try it ….
Tools and Techniques
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If a project team of 5 people adds onemore person to the team, how many more
channels of Communication are there?
5 more
Page 167
10.2.2
Plan Communications ManagementTools and Techniques: Communication Models
Thinking
Sending
The basic model of communication is thesend-receive model which includes:• Encoding (translating ideas to language),• Transmit Message (transmitting),• Medium (methods used to transmit)
• Noise (disruptions) and
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Articulating
Hearing
Listening
Transmitting
Thinking
Receiving
Feedback !!
• Noise (disruptions), and• Decoding (translate for receiver)• Acknowledge (receipt of message)• Feedback (back to sender).
10.2.3
Plan Communications ManagementOutputs: Communications Management Plan
The
Communications Management Plan usually provides:
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• Stakeholder communication requirements• Information to be distributed• Reason for the distribution• Time frame and frequency• Communication responsibilities
10.2.3 Plan CommunicationsOutputs: Communications Management Plan
documents a
communication strategy for the project and describes:
St k h ld i ti i t
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Stakeholder communication requirements
Which information flows from whom, when, via which media, and in what format.
Schedule and frequency for information collection and distribution.
Methods to convey information (memos, e-mail, press releases, etc.)
Resources for communication activities, including time and budget
Problem escalation procedure
Method for updating the communication plan
Flow charts of information flow
List of reports and meetings planned (schedule and attendees)
Communications constraints
“Communications infrastructure” for the project (who may talk to whom)
Chapter 11: Project Risk ManagementPMBOK
Fifth
Edition, Page
309
Knowledge Area
Project Risk Management processes include:
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Project risk management includes the processes ofconducting risk planning, identification, analysis, response
planning, and monitoring and control on a project.
Page 171
11.1 Plan Risk Management: deciding how to approach, plan and execute risk management,
11.2 Identify Risks: which risks might affect the project and documenting their characteristics,
11.3 Perform Qualitative Risk Analysis: probability of occurrence and severity of impact,
11.4 Perform Quantitative Risk Analysis: numerically analyzing the effect of risks onobjectives,
11.5 Plan Risk Responses: developing options to enhance opportunities and reduce threats.
11.6 Control Risks: implementing risk response plans, tracking risks, monitoring residual risks,ID new risks, and evaluating effectiveness throughout the project life cycle.
Chapter 11: Project Risk Management• Project risk includes both threats to the project’s objectives
(negative outcomes) and opportunities to improve on thoseobjectives (positive outcomes) - PMBOK® Fifth Edition, page 310.
• Uncertainty: An uncommon state of nature characterized by
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• Uncertainty: An uncommon state of nature, characterized byabsence of information related to a desired outcome.
• Risk Management: The process of identifying, analyzing andresponding to risk - maximizing positive events and minimizingconsequences of negative events.
• Risk arises throughout a project and must be identified andevaluated on a regular basis over the life cycle of the project.
• Inputs to risk management process : All other planning processes,including Create WBS and
ExamTip
11.1 Plan Risk Management
Planning: Project Risk Management
OutputsTools &
Techniques
Inputs
PMBOK®
Fifth
Edition, Page
313
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Risk management plan
Techniques
Analytical techniques
Expert judgmentMeetings
Project management planProject charter
Stakeholder registerEnterprise environmental factorsOrganizational process assets
Page 173
11.1 Plan Risk ManagementPlan
Risk
Management
is
the
process
of
defining
how
to
conductrisk
management
activities
for
a
project
.Risk
planning
should
be
commensurate
with
both
the
risks
and
theimportance
of
the
project
to
the
organization
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11.1.1 Plan Risk ManagementInputs
• Project Management Planprovides current state of risk affected areas including
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11.1.2 Tools and Techniques: Analytical Techniques, Expert Judgment, and Meetings
Pages 174-175
provides current state of risk-affected areas includingscope, schedule, and cost
• Project Charterhigh-level requirements
• Stakeholder Register• EEF and OPA
11.1.3 Plan Risk ManagementOutputs
Risk
Management
Plan, includes
:
• Methodology: Approaches tools and data sources
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Methodology : Approaches, tools and data sources.
• Roles and Responsibilities: Team member ownership for risk activities.
• Budgeting: Funds needed for contingency reserves and management reserves.
• Timing: When processes will be done, reserves applied, and how risk appears in schedule.
• Categories: Risk groupings. The RBS looks at sources of risk, IDs and categorizes them.• Thresholds: What is the trigger? Stakeholders have different thresholds of risk tolerance,
define them, and the must be agreed by all.
• Define P/I Levels: Qualitative (low to high) or probabilities.
• Risk Matrix: Likelihood-Severity, or Probability-Impact.
• Stakeholder Risk Tolerances: Progressively elaborated.
• Reporting Formats and Tracking: Document risk, auditing, defines content of risk register.
Page 176
11.2 Identify Risks
Planning: Project Risk Management
OutputsTools &
Techniques
Inputs
PMBOK®
Fifth
Edition, Page
319
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Risk register
Techniques
Documentation reviewsInformation gathering
techniquesChecklist analysis
Assumptions analysisDiagramming techniquesSWOT analysisExpert judgment
Risk management planCost management planSchedule management planQuality management planHuman resource mgt. plan
Scope baselineActivity cost estimatesActivity duration estimatesStakeholder registerProject documentsProcurement docs.
EEFOPA
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11.2 Identify Risks
Identify Risks is the processof determining which risksmay affect the project anddocumenting their
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documenting theircharacteristics .
All project personnel shouldbe encouraged to identify
potential risks
Page 177
11.2.1 Identify RisksInputs
• Risk Management Plan
provides risk responsibilities risk breakdown structure
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provides risk responsibilities, risk breakdown structure
• Cost, Schedule, Quality, and HR Management Plans
• Scope Baseline (scope statement, WBS, WBS dictionary)
• Activity Cost and Duration Estimates
• Stakeholder Register
• Project Documents (Charter, schedule, network, issue log)
• Procurement Documents
• EEF and OPA
11.2.2 Identify RisksTools and Techniques: Information Gathering Techniques
Brainstorming: a method of joint creative thinking that first records and
considers all possible options/solutions without judgment before proceedingt iti l l ti f th j t/ d t i t
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considers all possible options/solutions without judgment before proceedingto critical evaluation of the project/product requirements.
Delphi Technique: questionnaires are sent to a group of experts who provideanswers and are kept anonymous. Responses are compiled, prioritized, andsent back for another round of requirements gathering. A method forbuilding consensus.
Interviewing: experienced stakeholders and SME can identify risks
Root Cause Analysis: Cause and Effect analysis to find causes and develop
prevention actions.
11.2.2 Identify RisksTools and Techniques:
Checklist Analysis
Checklist Analysis:
Risk identification checklists are developed from previous
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Risk identification checklists are developed from previousprojects or lessons learned.
Lowest level of the WBS or RBS can be used as checklists. Teams should explore items not on the checklist. It
should be pruned as it is progressively elaborated.
Review the checklist during project closure to incorporatenew lessons learned.
Page 180
11.2.2 Identify RisksTools and Techniques: Assumption Analysis
Assumption: a factor in the planning process considered to betrue real or certain without proof or demonstration:
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Assumption Analysis: explores the accuracy ofassumptions and identifies risks to the projectfrom inaccuracy, inconsistency, or incompleteness,
Assumptions involve risk -- identify the risk!
true, real, or certain, without proof or demonstration:
• resource, equipment, and facilities availability• external timelines• technology compatibility
• interpretation of legal and regulatory constraints
11.2.2 Identify RisksTools and Techniques: Diagramming Techniques
Cause & Effect, Ishikawa or Fishbone Diagrams
Not FollowingP d
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EFFECTCAUSES
People
Lack of Training
MethodsMaterial
Transport IT System Procedure
Procedures
11.2.2 Identify RisksTools and Techniques: Diagramming Techniques
An
Influence
Diagram is a visual representation of situationsshowing causal influences, time ordering of events, or other
relationships among variables.
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relationships among variables.
For example, “Unit sales” is a confluence point. What is theprobability that all activities leading into it and out of it willhappen at the scheduled time? It is a causal influence of risk.
11.2.2 Identify RisksTools and Techniques: Diagramming Techniques
Influence Diagram
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Influence Diagram
ProjectEstimates
RiskCondition
ProjectActivity
Deliverables
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
Page 181
11.2.3 Identify RisksOutputs: Risk Register
Risk Register
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Risk Registera document where results of risk analysis and riskresponse planning are recorded:
List of identified risks
• “EVENT” may occur causing “IMPACT”
• If “CAUSE” exists, “EVENT” may occur leading to “EFFECT” List of potential responses
11.3 Perform Qualitative Risk Analysis
Planning: Project Risk Management
OutputsTools &
TechniquesInputs
PMBOK®
Fifth
Edition, Page
328
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Project documents updates
Risk probability and impactassessment
Probability and impact matrix
Risk data quality assessmentRisk categorizationRisk urgency assessmentExpert judgment
Risk management planScope baseline
Risk registerEnterprise environmental factorsOrganizational process assets
Page 183
11.3 Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis
is the process of prioritizing risks forfurther analysis or action by assessingor combining their probability of
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or combining their probability ofoccurrence and impact.
The Perform Qualitative Risk Analysisassesses priority of identified risks
using “probability/Impact” or“likelihood of occurrence/severity”
analysis to determine impact onproject objectives if the risks occur.
Page 183
Probability
Impact
11.3.1 Perform Qualitative Risk AnalysisInputs
•Risk Management Planprovides risk responsibilities budget/schedule P/I matrix
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provides risk responsibilities, budget/schedule, P/I matrix,stakeholder risk tolerance, etc.
• Scope Baseline (scope statement, WBS, WBS dictionary)
• Risk Register
• EEF and OPA
11.3.2 Perform Qualitative Risk AnalysisTools and
Techniques, Risk P/I Assessment
Risk Probability and Impact Assessment
• Probability is the likelihood that a risk event will occur.
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Probability is the likelihood that a risk event will occur.
• Impact is the effect (severity) on the objective (scope, schedule,cost, quality, performance) if the risk event occurs.
• These apply to specific risk events, not to the overall project.
• High likelihood and high consequence defines a risk that must bemanaged aggressively, or must be mitigated.
• Risks with low P/I ratings will be included on a watch list.
11.3.2 Perform Qualitative Risk AnalysisTools and
Techniques, Probability and Impact Matrix
Risk Probability and Impact Matrix
• The risk matrix is one of the simplest and most effective tools
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The risk matrix is one of the simplest and most effective toolsto analyze risk. It has probability (likelihood) on one axis andimpact (consequence or severity) on the other.
• The scales can be either numeric or subjective.
• The organization should determine the threshold
of risk that can be tolerated. This will determine: high risk (red light), moderate risk (yellow light), and low risk (green light).
• The score guides risk response actions.
11.3.2 Perform Qualitative Risk AnalysisTools and Techniques: P/I Matrix
Project risk includes both threats to the project’s objectives (negative outcomes) and
opportunities to improve on those objectives (positive outcomes) - PMBOK® 5th Edition, 331.
Probability Threats OpportunitiesExam
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
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0.90
0.70
0.50
0.30
0.10
0.05
0.04
0.03
0.02
0.01
0.05
0.18
0.14
0.10
0.06
0.02
0.20
0.36
0.28
0.20
0.12
0.04
0.40
0.72
0.56
0.40
0.24
0.08
0.80
0.09
0.07
0.05
0.03
0.01
0.10
0.05
0.04
0.03
0.02
0.01
0.05
0.72
0.56
0.40
0.24
0.08
0.80
0.36
0.28
0.20
0.12
0.04
0.40
0.18
0.14
0.10
0.06
0.02
0.20
0.09
0.07
0.05
0.03
0.01
0.10
y pp
Impact (ratio scale) on an Objective
ExamTip
11.3.2 Perform Qualitative Risk AnalysisTools and Techniques: Risk Matrix
Unacceptable
Risk Legend
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HighMediumLow
Likelihood (Probability)
Low
High
Medium
Managed
Controlled
Identified, nocontingent plan
Must Mitigate
11.3.2 Perform Qualitative Risk AnalysisTools and Techniques:
Industry Guidelines
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11.3.3 Perform Qualitative Risk AnalysisOutputs:
Project Documents Updates
Project Documents Updates
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j p Risk register
• Assessments of P/I for each risk
• Risk ranking
• Risk categorization
• Watch list for low probability risks Assumptions log updates
11.4 Perform Quantitative Risk Analysis
Planning: Project Risk Management
OutputsTools & TechniquesInputs
PMBOK®
Fifth
Edition, Page
333
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Project documents updates
Data gathering andrepresentation techniques
Quantitative risk analysis andmodeling techniques
Expert judgment
Risk management planCost management planSchedule management plan
Risk registerEnterprise environmental factorsOrganizational process assets
Page 188
11.4 Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis
is the process of numerically analyzing the
effect of identified risks on overall project
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objectives.
Perform Quantitative Analysis is used onrisks that have been prioritized by
qualitative analysis as substantiallyimpacting project objectives.
Page 188
11.4 Perform Quantitative Risk Analysis
Quantitative
risk
analysis
The Quantitative process analyzes priority risk events and assigns a
numerical rating. It also helps you make decisions in areas of uncertainty.
Q tit ti Ri k t h i lik Monte Carlo Simulation
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Quantitative Risk process uses techniques like Monte Carlo Simulationand decision tree analysis to:
★ Quantify outcomes for the project and the probabilities.
★ Assess the probability of achieving project objectives
★ Identify priority risks by quantifying their contribution to overallproject risk.
★ Identify realistic cost, schedule, scope and quality targets, given theproject risks.
★ Determine the best project decision when some outcomes areuncertain.
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques:
Data Gathering and Representation Techniques
Risk Interview
WBS Element Optimistic PessimisticMost Likely
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Build
Test
Total Project
Design $4 M $6 M $10 M
$16 M $20 M $35 M
$11 M $15 M $23 M
$31 M $41 M $68 M
Likelihood of completing the project at or below $41 million is
relatively low given the range and skew of the simulation results.
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Data Gathering and Representation Techniques
o = most optimistic cost estimate
p = most pessimistic cost estimatem = most likely cost estimate
3-PointAnalysis or
PERT
Probability Distributions
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Beta Distribution
60 5 hours with 68% confidence60 10 hours with 95.5% confidence60 20 hours with 99.7% confidence
ost e y cost est ate
Ce =o + 4m + p
6
(Ce) = p – o
6
Ce 1 <=> 68% probabilityCe 2 <=> 95.5% probability
Ce 3 <=> 99.7% probability
45 50 55 60 65 70 75 80 8540 Hours
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Sensitivity Analysis
Sensitivity Analysis helps determine which risks have the most impact on a project. A typical display
of sensitivity is the tornado diagram, which compares the importance of variables having highuncertainty to those that are more stable.
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uncertainty to those that are more stable.
Expected Monetary Value
Expected Monetary Value (EMV) calculates average outcomes on uncertain future scenarios. TheEMV of opportunities will be positive values, where those of risks may be negative. That is, when
evaluating alternatives during project selection, EMV that is most positive (the higher number) isprobably the best outcome. However, when alternative risks are evaluated, perhaps the lower
number (minimum risk) is best.
Decision Tree Analysis
Decision Tree Analysis is a common use of EMV analysis. It incorporates the cost of each available
choice, the probabilities in each path, and the outcomes. Solving the decision tree provides theEMV for each alternative. As said before, in selecting competing projects the higher number maygive the best payback, but in evaluating risk alternatives, the lower number may be best.
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Sensitivity Analysis: Tornado Diagram
Low High
Uncertainty
Uncertaintyat baseValues
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V a r i a b l e s
What is a Tornado Diagram?
The purpose of sensitivity analysis is toidentify which uncertainty variables havethe greatest impact on total value.Why create a Tornado Diagram?
The tornado diagram helps identify
uncertainties with the highest economicimpact. (Risk-Adjusted NPV). 80% of thetotal uncertainty can be discovered by usingthe top 5-8 variables in the tornado diagram
(+) Positive Impact(-) Negative Impact
Risk 1
Risk 2
Risk 3
Risk 4
Risk 5
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Expected Monetary Value (EMV)
$ 12,000
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$ 10,000
$ 10,200
$ 8,000
$ 12,000
$ 10,000
Select “B” for lowest Risk
A
Decision Tree : a common use of
EMV analysis
Flagship store in
Increased shopper
traffic(+$100,000)
0.6
Exercise
Answer:
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New store orrenovation?
new mall(-$1,000,000) Stronger
competition(-$50,000)
Renovate existingstore
(-$250,000) Dwindling shopper
traffic(-$100,000)
Initial businesssurge
(+$50,000)
0.4
0.8
0.2
-$960,000
-$230,000
Page 192
EMV is the second most-tested topic on theexam after “the process of risk management”
ExamTip
1. Test yourself :You are planning modifications to a product line Below is the
Exercise
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You are planning modifications to a product line. Below is thecomplete assessment of risks on the project Calculate the EMV ofyour budget’s reserve.
• 30% probability that parts delivery will be delayed at a cost of
$50,000.
• 20% chance that the parts will be $10,000 less expensive.
• 25% likelihood that two parts will have interference fit,resulting in extra cost of $3,500.
• 30% chance that production will be simpler, saving us $2,500.
• 5% probability that design defects will cause $5,000 in rework.
-
+
- - $13,375
+
-
2. Test yourself on a decision tree:
What is the EMV of A and B?
Exercise
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A
B
Answer: $42K+$6K = $48K
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Modeling and Simulation
Monte Carlo Simulation
The most common simulation technique is Monte Carlo simulation.
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qEarlier in the workbook it was called “What-If” analysis, where acomputer is used to calculate a distribution of possible outcomes forthe total project.
For example, calculate multiple project durations with different setsof activity assumptions and calculate a risk probability distribution.
For cost risk, simulations can use the WBS or cost breakdownstructure as its model.
For schedule risk, simulations use Precedence Diagramming Method(PDM) models.
11.4.2 Perform Quantitative Risk AnalysisTools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Modeling and Simulation
Uses the network diagram (PDM) and Three-Point Estimates as models toi l t h d l i t th j t d th WBS it d l i
Monte Carlo Simulation
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simulate schedule impacts on the project, and the WBS as its model usingThree-Point estimates to simulate cost impacts, then “performs” the project
several times to determine uncertainty.
• Indicates schedule risk by estimating probability that each task will
be on the critical path.
• Accounts for task convergence - calculates increased schedule riskwhere paths in a network diagram converge into one task.
• Stakeholders (team) estimate cost ranges for each WBS element.Simulation shows probability of meeting the most likely budget
estimate.
7 5 %
1 0 0 %
Mean = $46M
Total Project Cost (cumulative)
11.4.2 Perform Quantitative Risk Analysis
Tools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Modeling and
Simulation, Cost Risk Simulation
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Cost
$30 M $38M $47M $56M $65M
P r o b a b i l i t y
0 %
2 5 %
5 0 %
$50M$41M
The project is only 12% likely to meet the 41 million “most likely”
cost estimate. If the organization wants 75% chance of success, $50million is required (at contingency of 22%, [$50M-41M)/$41M]).
12%
Page 194
11.4.2 Perform Quantitative Risk Analysis
Monte Carlo Simulation
Road Closed
R i t
30% Mean Probabilityof Project Failure
Tools and Techniques: Quantitative Risk Analysis and Modeling Techniques
Modeling and
Simulation
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0 .25 .5 .75 1.0
Running outof Gas
Getting Stuckin Snow Drift
0 .25 .5 .75 1.0
Monte Carlo Simulation,Overall Project Risk
5% Chance ThatProbability is 75%
11.4.2 Perform Quantitative Risk AnalysisOutputs: Project Documents Updates
Risk Register Updates include: Probability analysis of the project
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Probability analysis of the project
• confidence levels and distributions are used to calculate costand time reserves.
Probability of achieving cost and time objectives
Priority list of quantified risks Trends in risk analysis results
11.5 Plan Risk Responses
Planning: Project Risk Management
OutputsTools &
TechniquesInputs
PMBOK®
Fifth
Edition, Page
342
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Project management planupdates
Project documents updates
Strategies for negative risksor threats
Strategies for positive risksor opportunities
Contingent responsestrategies
Expert judgment
Risk management plan
Risk register
Page 196
11.5 Plan Risk Responses
Plan Risk Responses is the process of
developing options and actions toenhance opportunities and to reduce
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threats to project objectives
Page 196
11.5.2 Plan Risk ResponsesTools and Techniques: Strategies for
Threats
or Opportunities
• Avoid
Eliminate the threat by eliminating the cause.
• Transfer
Contract the risk out. Transfer it to a third party with incentives, penalties,warranties, bonding, .. , purchase insurance.
NegativeRisk orTh t
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• Mitigate
Effect the probability and/or the impact of the risk.
• Exploit
Eliminate uncertainty of upside risk to ensure opportunity happens
• ShareThird party helps to capture the opportunity
• Enhance
Opposite of Mitigation. Proactively target and reinforce the trigger toachieve a positive opportunity.
• Acceptance
Know about the risk, but decide to accept the consequences if failure
occurs.
Threats
PositiveRisk orOpportunities
Both
ExamTip
Pages 197-199
• Knowledge and Research
Perform tests & simulations. Consult experts. Start risk tasks asearly as possible within available slack.
11.5.3 Plan Risk ResponsesOutputs: Contingency Reserve, Part of the Risk Register
A provision in the project plan to mitigate cost and/or schedule risk
May be calculated as a percent of baseline to allow for overrunsMay be established as a separate fund for unforeseen problems
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y p pMay have many different (and application area specific) names:
• management reserve• contingency
May be assigned to any level of the WBS
ExamTip
PMI recommends aminimum totalreserve of 10%
11.5.3 Plan Risk ResponsesOutputs:
Project Documents Updates
Risk Register Updates include: Risk owners and their responsibilities, Agreed response strategies, Actions to implement from the response strategy, Trigger conditions and warning signs of risk occurrence,
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Budget and schedule activities to implement the response, Contingency plans and triggers that call for their execution, Fallback plans for inadequate risk responses, Residual risks remaining after response has been taken, and those
that have been deliberately accepted,
Secondary risks that arise from implementing a risk response, Calculated contingency reserves,
Other Documents Updates: Assumption log updates. Technical documentation updates, Change requests processed
Chapter 12: Project Procurement ManagementPMBOK
Fifth
Edition, Page
355
Knowledge Area
12.1 Plan Procurement Management: Documenting purchase decisions,specifying the approach, and identifying potential sellers.
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Plan Procurement Management includes the processes necessary to purchase
or acquire products, services, or results needed from outside the projectteam. It includes contract management and change control processes, as well
as administering contracts and obligations under the contracts.
12,2 Conduct Procurements: Obtaining seller responses, selecting aseller, and awarding a contract.
12.3 Administer Procurements: Managing procurement relationships,
monitoring contract performance, and making changes andcorrections as needed.
12.4 Close Procurements: Competing each project procurement.
Chapter 12: Project Procurement Management
Procurement Process
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Make orBuy
RFP/RFQIssued
ProposalReceived
ContractAward
SubstantiveCompletion
Q&A
PlanPurchases &Acquisitions
PlanContracting
RequestSeller
Responses
SelectSellers
ContractAdministration
ContractClosure
12.1 Plan Procurements
Planning: Plan Procurement Management
Outputs
Tools &Techniques
Inputs
Project management plan
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Procurement managementplan
Procurement statement ofwork
Procurement documentsSource selection criteriaMake-or-buy decisionsChange requestsProject documents updates
Make-or-buy analysisExpert judgment
Market researchMeetings
Project management planRequirements documentationRisk registerActivity resource requirementsProject schedule
Activity cost estimatesStakeholder registerEnterprise environmental
factorsOrganizational process
assets
Page 203
12.1 Plan Procurement Management
Plan Procurement Management is the
process of documenting projectpurchasing decisions, specifying the
PMBOK®
Fifth
Edition, Page
358
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p g , p y gapproach and identifying potentialsellers.
The plan procurements process involvesdeciding whether to “make-or-buy”, the
consideration of potential sellers, andthe consideration of the risks involved
Page 202
12.1.2
Plan Procurement ManagementInputs: Organizational Process Assets
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Contract TypesThere are several contract types that may be used, and the contract type determines how the
risk is shared between the buyer and the seller.
Page 204-206
12.1.2
Plan Procurement Management
Fixed Price/Lump Sum Contracts: • Firm Fixed Price (FFP)
• Fixed Price Incentive Fee (FPIF)• Fixed Price with an Economic PriceAdjustment (FP EPA)
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Adjustment (FP-EPA)
Cost Reimbursable Contracts:
Unit Price or Time & Materials Contracts (T&M)
• Cost Plus Fixed Fee (CPFF)• Cost Plus Incentive Fee (CPIF)• Cost Plus Award Fee (CPAF)
Contracts are risk mitigation tools Other professionals may handle the contract, but contracts
should not be created before the PM is assigned Match the contract type to the type of project Contract type will determine the balance of financial risk between
the buyer and the supplier.
Page 204-207
12.1.2
Plan Procurement Management
Fixed Price (or Lump Sum) Type Contracts:
Used on well specified projects for which costs can be accuratelyestimated Cost risk is on the supplier (includes FFP FPIF FP-EPA)
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Cost Reimbursable Type Contracts:
Time & Materials Type Contracts:
Used on development projects for flexibility. Cost risk is on the buyer, soestablish administrative & reporting systems to allow both buyer and sellervisibility into costs. (Includes CPFF, CPIF, CPAF)
estimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)
Used on projects where the deliverables are well defined, repetitive units
but the quantities are not yet known (e.g., identical pieces of equipment, orlabor hours and associated material costs – includes overhead and burden)
ExamTip
12.1.2
Plan Procurement Management
FFP
FPEPA
FPAF
Client, Customer
or Buyer
100% 0%
On the exam contract
Inputs: Organizational Process Assets
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FPAF
FPIS
FPIF
CPIF
CPAF
CS
CPFF
COSTContractoror Seller
0% 100%
RISK
On the exam, contractquestions are written
from the buyer’s
perspective
RISK
FFP
FPEPA
FPAF
Firm Fixed Price: A negotiated fixed price to produce the good or service.
Fixed Price with Economic Price Adjustment: Unstable market or labor
conditions, price can be adjusted up or down with a ceiling
Fixed Price Award Fee: award amount related to a subjective judgmentof the quality of the contractor's performance.
Fi d P i I i (S i T ) d ( )
US Federal Acquisition Regulations (FAR 16.104)
12.1.2 Plan Procurements Inputs: OPA
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FPIS
FPIF
CPIF
CPAF
CS
CPFF
COST
Fixed Price Incentive (Successive Targets): Contains production point (s)
at which either a firm target and final profit formula can be negotiated.
Fixed Price Incentive (Fee or Firm Target): target profit, and profit sharing
formula are negotiated into contract, profit is adjusted upon contract completion.
Cost Plus Incentive Fee: positive profit incentives are negotiated.
Cost Plus Award Fee: Award fee is earned for performance, quality,
timeliness, and cost effectiveness and can be earned in whole or in part.
Cost Plus a Fixed Fee: Level of effort is unknown, fee is expressed as
percentage of estimated cost at time contract is awarded.
Cost Sharing: Development or research projects, contractor sees a commercialbenefit which they accept in lieu of fee.
Cost: Typically for R&D with nonprofit organizations, educational institutions,
and facilities contracts.
12.1.2
Plan Procurement ManagementTools and Techniques: Budget Implications
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12.1.2
Plan Procurement ManagementTools and Techniques: Profit or Fees for Different Contracts
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12.1.2
Plan Procurement ManagementTools and Techniques: Point of Total Assumption
Exam
Tip
Is on the exam
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Cost Plus Incentive Fee Calculation
Incentive Fee Calculation
Exercise
You may have to calculate both the Fee and the Final Price for the Exam!
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Target cost $210,000
Target fee $ 25,000
Target price $235,000
Sharing ratio 80/20 Actual cost $200,000
Fee
Final
Price
$210,000 - $200,000 = $10,000 x 20% = $2000
$25,000 target fee + $2,000 = $27,000 fee
$200,000 + $27,000 = $227,000
12.1.2
Plan Procurement ManagementTools and Techniques
:
Make
-
or
-
Buy AnalysisA general management technique to determine whether work is best done by the project
team or purchased from an outside source. Considerations such as capability, risk, budget and
schedule are all considered as well as whether to purchase, lease or rent
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Expert JudgmentExperts may be used in several areas. Technical experts will assess capability, inputs and
outputs. Purchasing experts will generate the criteria to select appropriate sellers, and legalexperts will focus on terms, conditions and issues
Market ResearchCapabilities of industry and seller must be researched by information gained at conferences,
on-line, and other sources. Leverage mature technologies while balancing the risks with otherless mature technologies.
Page 206
MeetingsInformation exchange with potential bidders can benefit the project.
12.1.3
Plan Procurement ManagementOutputs: Procurement Management Plan, and
Procurement
Statement of Work
• Provides the basis of agreement between buyer and supplier
• Sufficient detail to allow prospective suppliers to determine
A narrative description of products or services to be supplied under contract.
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Sufficient detail to allow prospective suppliers to determinewhether or not they can comply
• Sufficient latitude for creative solutions only if appropriate
• Each procurement requires a separate SOW. But one SOW
may cover many items in a single procurement
• May be revised as the procurement progresses
• Should be clear, concise, and unambiguous
• May be developed by the project team or
supporting offices (or even the seller)depending on policy and ability
• Your best defense against procurement scope creep!
12.1.3
Plan Procurement ManagementOutputs: Procurement Documents
Procurement documents from the buyer:
TECHNICALLY-DRIVEN CONTRACTS:
• Request for Proposal (RFP) - requests a detailed proposal on how thework will be done, who will do it, . . . , basically a Project Execution Plan
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from the contractor or seller.
PRICE-DRIVEN CONTRACTS:
• Invitation for Bid (IFB, or RFB) - requests one price to do all the work.
• Request for Quotation (RFQ) - Requests a price quote per item, per hourcharges, etc.
Procurement Terminology is not universal
Understandingof need
Life-cycle cost Technicalcapability
Risk Managementapproach
Examples of source selection
criteria are:
12.1.3
Plan Procurement ManagementOutputs: Source Selection Criteria
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Technicalapproach
Warranty Financialstability
Productioncapacity
Business sizeand type
Pastperformance
of sellers
References Intellectualproperty rights
Proprietaryrights
• The Contracting Officer or Administrator is the one with authority to change the contract• The Project Manager must understand the contract and manage its completion• The exam tests conflicts that arise between the two
ExamTip
Page 212
Notes on procurement for the exam
• The exam questions are always from the buyer’s
perspective
• Different words are sometimes used (vendor,owner, contractor, subcontractor etc.)
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, , )• A contract is a formal agreement• All requirements should be specifically stated in
the contract• Changes must be in writing and formallycontrolled
• The US Government backs all contracts byproviding a court system (this is a US exam)
Page 213
13.2 Plan Stakeholder Management
Planning: Project Stakeholder Management
Outputs
Tools &Techniques
Inputs
PMBOK
® Fifth Edition, Section
13.2,
Page 393
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Stakeholder managementplan
Project documents updates
Expert judgmentMeetings
Analytical techniques
Project management planStakeholder register
Enterprise environmental factorsOrganizational process assets
Page 314
13.2 Plan Stakeholder Management
Plan Stakeholder Management is the
process of developing managementstrategies to engage stakeholdersthroughout the project life cycle,
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throughout the project life cycle,based on the analysis of their needs,interests, and impact on projectsuccess.
It allows the project manager thedevelop ways to engage stakeholdersin the project, to manage theirexpectations, and to achieve theproject objectives.
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13.2 Plan Stakeholder ManagementTools and Techniques
: Analytical Techniques
Engagement level of the stakeholders can be classified as follows:
• Unaware of project and potential impacts
Engagement Level of Stakeholders
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• Unaware. of project and potential impacts
• Resistant. Aware of project and impacts, and resistant to change
• Neutral. Aware of project yet neither supportive nor resistant
• Supportive. Aware of project/impacts and supportive to change
• Leading. Aware of project/impacts and actively engaged inensuring success.
13.2 Plan Stakeholder ManagementTools and Techniques
: Analytical Techniques
Stakeholder Engagement Assessment Matrix
Stakeholder LeadingSupportiveNeutralResistantUnaware
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ExamTip
Stakeholder 1
Stakeholder 2
Stakeholder 3
C
C
D
D
D C
Legend: “C” = Current Engagement
“D” = Desired Engagement
©2013 PMI. A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition
13.2 Plan Stakeholder ManagementOutputs: Stakeholder Management Plan
This plan identifies the management strategies required to engage
stakeholders.• Desired engagement levels of key stakeholders,
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• Scope and impact of change to stakeholders,
• Interrelationships and overlap between stakeholders,
• Stakeholder communication requirements for the current phase,
• Information to be distributed to stakeholders (language, format,content, level of detail),
• Timing and frequency for distributing the information,
• Method for updating the stakeholder management plan as theproject progresses.
Executing Process GroupPMBOK® Fifth Edition, Page 79
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Process Groups
Knowledge Areas
Initiating Planning Executing ClosingMonitoring &
Controlling4. Project Integration
Management4.2 Develop Project
Management Plan4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work
4.5 Perform IntegratedChange Control
5. Project ScopeManagement
5.1
Collect Requirements5.2
Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2
Sequence Activities6.3Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
Project Work4.1 Develop Project Charter
5.4 Create WBS
6.4
4.6 Close Project
or Phase
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
PMBOK® Fifth Edition, Page 61
Executing
4.3 Direct and Manage Project
Work8.2 Perform Quality Assurance9.2 Acquire Project Team
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7. Project CostManagement
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement
12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
13.1 Identify Stakeholders 13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
7.1 Plan Cost Mgt.
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
9. Acquire Project Team9.3 Develop Project Team9.4 Manage Project Team10.2 Manage Communications
12.2 Conduct Procurements13.3 Manage Stakeholder
Engagement
4.3 Direct and Manage Project
Work
Executing: Integration Management
OutputsTools &
TechniquesInputs
PMBOK®
Fifth
Edition, Page
79
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DeliverablesWork performance dataChange requests
Project management planupdatesProject documents updates
Expert judgmentProject management
information systemMeetings
Project management planApproved change requests
Enterprise environmental factorsOrganizational process assets
Page 220
4.3 Direct and Manage Project Work
Direct and Manage Project Work
is the process of leading and performing
the work defined in the projectmanagement plan and implementing
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approved changes to achieve the
project’s objectives
Page 220
The activities of Direct and Manage Project Work include:
• Perform activities to accomplish project objectives,
• Create deliverables,• Provide, train, and manage team members• Obtain materials, equipment, and facilities,
4.3 Direct and Manage Project Work
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, q p , ,• Implement methods and standards,• Establish communication channels,• Generate project date: cost schedule, technical, quality, and status to
facilitate forecasting,• Issue change requests and manage approved changes
(corrective action, preventative action, defect repair),• Manage risks and risk responses,• Manage sellers and contractors,• Manage stakeholders and their engagement, and• Collect and document lessons learned
Page 220
The other 23 planning processes are integrated to createthe project management plan. Updates to any plansrequire an update to the PM plan. Think of the PM plan asa bucket into which all the other plans “drip” until it is full.
Inputs: The Project Management Plan
4.3.1 Direct and Manage Project Work
Plan Scope Management Determine Budget
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Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations
Develop Schedule Plan Cost Management Estimate Costs
Determine Budget Plan Quality Management Plan Human Resource Management Plan Communications Management Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses
Plan Procurement Management Plan Stakeholder Management
4.3.2 Direct and Manage Project WorkTools and Techniques
Expertise is provided by the project manager and the PM team, andadditional knowledge can be gained from a variety of sources inside
and outside of the organization.
PM Information System (PMIS)
Expert Judgment
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f y ( )
The PMIS provides access to tools: scheduling tool, work authorization system,configuration management system, information collection/distribution system, reportingon key performance indicators (KPI), and interfaces to online automated systems.
Meetings
Meetings can include information exchange, brainstorming, option evaluation, or
decision making. Meetings are most effective when face-to-face. Virtual meetings (audioor video-conferencing) require additional preparation and organization to be as effectiveas face-to-face.
4.3.3 Direct and Manage Project WorkOutputs
Deliverables
Any product, result or service identified in the PM Plan produced during project execution.
Work Performance Information
Status of project activities is routinely collected. It includes schedule progress, deliverablestatus quality requirements met costs incurred estimates to complete lessons learned
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status, quality requirements met, costs incurred, estimates to complete, lessons learned,and resources used.
Change Requests
Changes are requested to expand or reduce scope, modify policies/procedures, costs,budgets, quality, or schedules. They also include corrective action, preventative action,defect repair, and document updates.
PM Plan Updates
Requirements, schedule, cost, quality, HR, communications, risk, procurement, and theproject baselines.
Project Document Updates: requirements, logs, risk register, and stakeholder register.
8.2 Perform Quality Assurance
Executing: Quality Management
Outputs
Tools &Techniques
Inputs
PMBOK®
Fifth
Edition, Page
242
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Change requestsProject management plan
updates
Project document updatesOrganizational process assetsupdates
Quality management andControl tools
Quality auditsProcess analysis
Quality management planProcess Improvement planQuality metrics
Quality control measurementsProject documents
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8.2 Perform Quality Assurance
Perform
Quality
Assurance isthe process of auditing the
quality requirements and theresults from quality control
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measurements to ensureappropriate quality standardsand operational definitions
are used
Page 224
8.2.2 Perform Quality AssuranceTools and Techniques: Quality
Management and Control Tools
• Flowcharting• Brainstorming
• Benefit/Cost Analysis• Cost of Quality (COQ)
l h
The Tools for Quality Planning should be used for Quality Assurance
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• Force Field Analysis• Nominal Group Techniques• Matrix Diagrams
• Priority Matrixes
• Control Charts• Benchmarking• Design of Experiments (DOE)
• Statistical Sampling• Proprietary Methods
8.2.2 Perform Quality Assurance
• Prioritization Matrices• Activity Network Diagrams
• Affinity Diagrams• Process Decision Program
Ch ( C)
In Addition, Use the Seven Quality Management and Control Tools
Tools and Techniques: Quality
Management and Control Tools
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• Matrix DiagramsCharts (PDPC)• Interrelationship Digraphs• Tree Diagrams
The Seven Quality Management and Control Tools
Affinity Diagram PDPC Interrelationship Digraph
Tree Diagrams Prioritization Matrices
No Yes YesNo No No
Network Diagrams
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Tree Diagrams Prioritization Matrices
Matrix Diagrams
Start Finish
A B C
D E F
1Start Finish
BC
D
E
F
2
4 5
3
6
F
PDM
ADM
Network Diagrams
8.2.2 Perform Quality Assurance
Tools and Techniques: Quality Audits
Quality
Assurance
(QA)
: the process of auditing quality requirements, and the
results from quality control (QC) measurements, to ensure quality standards and
operational definitions are used..
Quality assurance involves Quality Audits, and is done in Execution Processes.
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Quality Control (QC): a process of monitoring and recording results (both product
and project management ) of executing quality activities to assess performance and
to recommend necessary changes. Involves identifying ways to remove the causes of quality defects.
Quality control involves inspection and requires an understanding of samplingstrategies, tolerances, and the causes of variation in a process. It is done in theMonitoring and Controlling Processes.
y Q y ,
8.2.1 Perform Quality AssuranceTools and Techniques: Quality Audits
. . a structured review (audit) of the project’s quality management
activities to determine if they comply with organizational and project
policies, processes, and procedures.• Quality audits may be random or scheduled
Q lit dit b f d i t ll t ll
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• Quality audits may be performed internally or externally
Quality audits Identify best practices and gaps or shortcomings Share good practices with similar projects in the organization Proactively assist to improve processes and raise team productivity Contribute audit results to lessons learned archives.
Practice Test #2
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Turn to page 416 in the workbookThere are 68 questions.
You have 81 minutes to completeAnswers are on page 433
Page 416
Hint: Use scratch paper for answers,so you can reuse the questions for practice
9.2 Acquire Project Team
Executing: Human Resource Management
OutputsTools &
TechniquesInputs
PMBOK®
Fifth
Edition, Page
267
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Project staff assignmentsResource calendarsProject management plan
updates
Pre-assignmentNegotiationAcquisition
Virtual teamsMulti-criteria decisionanalysis
Human resources managementplan
Enterprise environmental factorsOrganization process assets
Page 230
9.2 Acquire Project Team
Acquire Project Team is the process ofconfirming human resource availability
and obtaining the team necessary tocomplete project activities
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9.2.1 Acquire Project TeamInputs: Project Management Plan, that includes:
• Human Resource Management Plan
defining positions, skills, and competencies
project organization charts
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when team members are needed
• EEF and OPA
9.2.2 Acquire Project TeamTools and Techniques
Pre
-
Assignment
Project team members are selected in advance, perhaps where the project is part ofa proposal
The project manager should effectively negotiate and influence others whoare in a position to provide the required human resources for the project
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NegotiationThe project manager may need to negotiate with functional managers or other
project managers to gain the staff required
AcquisitionHiring or subcontracting team members from outside sources. This may involve
outsourcing work to another organization
Virtual TeamsTeams where the members may not be able to meet face-to-face because ofgeographic or mobility limitations. Communication planning becomes increasingly
important in a virtual team environment
Pages 232-233
9.2.2 Acquire Project TeamTools and Techniques
Multi
-
Criteria Decision Analysis
Criteria are used to rate potential team members. The criteria are weighted byconsidering relative importance within the team.
• Availability. Is the team member available to work in the time period needed?• Cost Is the team member’s cost within the budget constraints?
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• Cost. Is the team member s cost within the budget constraints?
• Experience. Have the people done similar work before? Done it well?• Ability. Does the team member have the required competence?• Knowledge. Does the team member know the customer, worked on similar
projects, understand PM?• Skills. Can they use project tools, or have appropriate training?• Attitude. Can the team member work with others in a cohesive team?• International Factors. What is the location of the team member, time zones,
communication skills?
9.3 Develop Project Team
Executing: Human Resource Management
OutputsTools &
Techniques
Interpersonal skills
Inputs
PMBOK®
Fifth
Edition, Page
273
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Team performanceassessments
Enterprise environmentalfactors updates
pTrainingTeam-building activitiesGround rules
Co-locationRecognition and rewardsPersonnel assessment tools
Human resource managementplan
Project staff assignmentsResource calendars
Page 235
9.3 Develop Project Team
Develop Project Team is the process of
improving the competencies, teaminteraction and the overall teamenvironment to enhance project
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environment to enhance projectperformance.Teamwork is a critical factor for project
success, and developing effective projectteams is one of the primary responsibilities
of the project manager
Page 235
ExamTip
Interpersonal Skills:
“soft skills”
Training:
activities designed to improve competencies of the
9.3.2 Develop Project TeamTools and Techniques:
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project team members
Team-Building Activities:
should be designed to help individual team memberswork together effectively and establish good workingrelationships.
Pages 236-237
9.3.2 Develop Project TeamTools and Techniques: Team Building Activities
Bruce
Tuckman
: The Five Stages of Team Development
• Forming: Team meets, learns about the project, understands
roles, but is independent, not open
• Storming: Team addresses project and methodology and must
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Sto g ea add esses p oject a d et odo ogy a d ust
be open in this phase or it can become destructive.
• Norming: Team works together, adjusts behaviors that are
supportive, and trust develops
• Performing: Team performs as well organized unit and works
through issues smoothly and effectively
• Adjourning: Team completes the work, celebrates their success,and moves on from the project.
9.3.2 Develop Project TeamTools and Techniques: Team Building Activities
The proper use of most project management tools & techniquescontribute to teambuilding, but PMI defines “Team Building Activities” as
“actions taken specifically and primarily to improve team performance.”
• Facilitated off-site workshops• Inter-personal skills development
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training and workshops• Communications training
(including listening skills)
• Conflict resolution• Psychological preference
indicators such as Myers-Briggs• Physical challenge workshops• Planned team outings• Standing agenda item at review
meetings• Shared space, publicity, and
symbols to create a team identity
Ground Rules: Discussing ground rules allows team
members to discover values important to one another, to
set clear expectation for team behavior, and to share theircommitment to the rules
Co
-
location: Physically locating team members in the same
9.3.2 Develop Project TeamOther Tools
and
Techniques
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y y g
physical location enhances team communication andperformance
Recognition and Rewards: Promote and reinforce desired
behaviors, and only desired behavior should berewarded.
“What gets measured, gets done”
Page 239
9.3.2 Develop Project TeamTools and Techniques: Recognition and Rewards
ExamTip
Herzberg’s
Motivators
1. Achievement
2. Recognition
3. Work Itself4. Responsibility
5 Advancement
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Self Actualization = Achievement
Self Esteem = Recognition
Social
SafetyPhysiological
Maslow’s
Hierarchyof Needs
5. Advancement
6. Growth
9.3.2 Develop Project TeamTools and Techniques: Recognition and Rewards
ExamMcClelland’s Achievement
A person’s motivation and effectiveness
are influenced by three needs:
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ExamTip “Theory of
Needs” Affiliation
Power
9.3.2 Develop Project TeamTools and Techniques: Recognition and Rewards
• prized assignments• responsibility
• presentation opportunities• training opportunities-growth• flexible scheduling/days off
• Recognition of achievement• better offices, new
equipment• bonuses, trips• promotions, pay raises
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Be sure the link between performance and reward isclear, explicit, timely, and achievable.
Be sure to reward desired behaviors more thanrecovery from the results of undesired behaviors.
Consider cultural factors such as individualism vs.
collectivism in choosing rewards and givingrecognition (team vs. personal).
A
Page 240
Outputs: Team Performance Assessments
Position Descriptions
show team member
responsibilities,authority,competencies, and
9.3.3 Develop Project Team
improvements inindividual skills
I t i
Performance
Assessments
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qualifications outlinedin a text document.
Improvements inteam behaviors
improvements inprojectperformance
reduced staffturnover rate.
9.4 Manage Project Team
Executing: Human Resource Management
Outputs
Change requestsProject management plan
Tools &Techniques
Inputs
Human resource management
PMBOK®
Fifth
Edition, Page
279
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Project management planupdates
Project documents updatesEnterprise environmental
factors updatesOrganizational process assets
updates
Observation and conversationProject performance appraisalsConflict managementInterpersonal skills
gplan
Project staff assignmentsTeam performance assessments
Issue logWork performance reportsOrganizational process assets
Page 242
9.4 Manage Project Team
Manage Project Team
is the process of tracking teammember performance, providing
feedback, resolving issues andmanaging team changes tooptimize project performance
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Team members are accountable both to theirfunctional manager and to their project manager.
Effective Management of the dual reporting relationshipis the responsibility of the Project Manager
ExamTip
9.4.1 Manage Project TeamInputs:
• Human Resource Management Planresponsibilities, project organization, staffing management
plan.• Project Staff Assignments
• Team Performance Assessments
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• Team Performance Assessments
• Issue Log
• Work Performance Reportsproject status, project forecasts, schedule/cost/qualitycontrol, scope validation, future HR requirements
• Scope Baseline (scope statement, WBS, WBS dictionary)
• OPA
9.4.2 Manage Project Team
Fill in the last column with PM (Project Manager), T (Team member) or SM (Senior/FunctionalManagement) as to who is most appropriate to solve the problem listed under the “situation”
column. Understanding of these questions will help with your with your Situation Questions:
Situation Who Solves the
Problem
Tools and Techniques: Project Performance Appraisals,
Roles and Responsibilities
Exercise
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(PM/T/SM)?
1 Two project team members are having a disagreement -
2 There is a change to the overall project deliverables –
3 A boss is trying to pull a team member off the project to do other work –
4 The project manager does not have the authority to get things done –
5 There are not enough resources to complete the project –
6 The team is unsure of what needs to happen when –
7 A task needs more time and will cause the project to be delayed –
8 A tasks needs more time without causing the project to be delayed –
T
SM
SM
PM
SM
PM
T
SM
Page 245
9.4.2 Manage Project TeamTools and Techniques: Project Performance Appraisals, Roles and Responsibilities
Exercise
9 A team member is not performing -
10 The team is not sure who is in charge of the project –
11 There is a talk that the project may be no longer needed –
SM
SM
SM
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12 Senior management provides an unrealistic schedule requirement –
13The team is in conflict over priorities between tasks
–
14 The project is behind schedule –
15 A team member determines that another method is needed to complete the
task within its scope of work -
SM
PM
PM
T
SM
Page 245
9.4.2 Manage Project TeamTools and Techniques: Powers of a Project Manager
Powers of the P.M. How
Earned?
Expert: recognition by others On your own
Reward: giving rewards to others PM’s Position
Formal: power based on the position PM’s Position
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ExamTip
Formal: power based on the position PM s Position
Referent: refer to authority of management Other’s Position
Penalty: ability to penalize team members PM’s Position
Principles of Project Management, PMI, ISBN: 1-880410-30-3
9.4.2 Manage Project TeamTools and Techniques: Conflict Management
Conflict ResolutionBest to Worst
1. Collaborate/Problem Solving: solving the real problem2. Compromise/Reconcile: solutions that satisfy all parties
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ExamTip
p y p3. Withdraw/Avoid: retreating or postponing a decision4. Smooth/Accommodate: emphasis on agreement rather than differences
5. Force/Direct: one viewpoint at the expense of another
Principles of Project Management, PMI, ISBN: 1-880410-30-3
9.4.2 Manage Project Team
Factors for Conflict Resolution
• Importance and intensity of conflict• Time pressure to resolve
• Position taken by persons involved
Tools and Techniques: Conflict Management
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ExamTip
y p
• Motivation to resolve, long and short term
9.4.2 Manage Project TeamTools and Techniques: Conflict Management
Sources of Conflict(order of priority)
1. Schedules
2. Project priorities
ExamTip
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3. Resources
4. Technical opinions
5. Admin. Procedures
6. Cost
7. Personality
Principles of Project Management,PMI, ISBN: 1-880410-30-3
9.4.2 Manage Project TeamTools and Techniques: Interpersonal Skills
The Fourth Edition was the first time the “soft skills” have been givenspecial recognition by PMI in the guidebook.
Please refer to Appendix X
3 in the Fifth Edition for a listing of
E
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interpersonal skills important to project management. PMI said theseskills were too large to cover in-depth in the PMBOK. This makes it a ripe
source for questions on the fifth edition test.
ExamTip
9.4.2 Manage Project TeamTools and Techniques: Leadership
Leadership focuses team efforts toward a common goal. Leaders getthings done through other people. They develop
trust
and
respect, not
fear and submission.
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9.4.2 Manage Project TeamTools and Techniques: Leadership, the Team Performance Curve
P e r f o r m a n c e I m p a c t
RealTeam
High-PerformanceTeam
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Team Effectiveness
P
Pseudo-Team
WorkingGroup
PotentialTeam
Katzenbach and Smith“The Wisdom of Teams”
A high performing team is
:
• A small group of people• with complimentary skills
• committed to a common
9.3.2 Develop Project TeamTools and Techniques: Team Building Activities
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• committed to a common
purpose, performance
goals and methods• for which they hold
themselves accountable
• and take the risk of
conflict
Page 236 and 249
9.4.2 Manage Project TeamTools and Techniques: Communication and Influencing
Communication
is
one
of
the
biggest
contributors
to
project
success
or
failure
.
• Geert
Hofstede
:
Cultural
Dimensions
(national
cultural
differences)
• Myers
Briggs
:
“Personality
Test”
• The
“Sender
-
Receiver
Model”
(mentioned
earlier)
Communication
ExamTip
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( )
• Conflict resolution is part of communication (mentioned earlier)
• Lead by example, follow through with commitments
• Clarify how decisions will be made
• Use a flexible style, adjust to the situation (Situational Leadership)
• Apply your power skillfully and cautiously
Influencing
“Influence: What you think you have until your try to use it” Joan Welsh
9.4.2 Manage Project TeamTools and Techniques: Decision Making
• Command
• Consultation• Consensus• Random (coin flip)
Decision Making Styles Factors Affecting Style
• Time constraints
• Trust• Quality• Acceptance
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1. Problem Definition: explore, clarify, and define the problem
2. Solution Generation: brainstorm solutions and discourage early decisions
3. Ideas to Actions: define evaluation criteria, rate pros/cons, select one
4. Solution Plan: involve team for acceptance and commitment
5. Evaluation Plan: implement, analyze, evaluate, lessons learned
6. Evaluation Outcome: was the problem solved? Goals achieved?
Six-Phase Problem Solving Model
ExamTip
9.4.2 Manage Project TeamTools and Techniques: Negotiation
Negotiating Skills and Behaviors
1. Analyze the situation
2. Differentiate between wants and needs by both parties
3 Focus on interests and issues not positions
ExamTip
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3. Focus on interests and issues, not positions
4. Ask high and offer low (but be realistic). Do you have a BAFO?
5. When making a concession, act like you are yielding something ofvalue. Don’t just give in.
6. Both parties should feel like they won (win-win). Never let theother party leave feeling they have lost.
7. Do a good job of active listening and articulating
9.4.2 Manage Project TeamTools and Techniques: Appendix
X3,
Covey,
Dinsmore
, Levin,
Verma
Seven Habits of Highly Effective People
Habit 1:
Be Proactive: Principles of Personal ChoiceHabit 2:
Begin with the End in Mind: Principles of Personal VisionH bit 3
P t Fi t Thi Fi t P i i l f I t it & E ti
ExamTip
Stephen R. Covey, 2004
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Habit 3: Put First Things First: Principles of Integrity & ExecutionHabit 4: Think Win/Win: Principles of Mutual Benefit
Habit 5: Seek First to Understand, Then to be UnderstoodHabit 6: Synergize: Principles of Creative CooperationHabit 7: Sharpen the Saw: Principles of Balanced Self-Renewal
(The Eighth Habit: “From Effectiveness to Greatness”;
Find your voice and inspire others to find theirs)
9.4.2 Manage Project TeamTools and Techniques:
Trust Building
• Open and direct communications to resolve problems• Inform all stakeholders when commitments are at risk
• Engage directly with the team, ask a lot of questions
Trust Building
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ExamTip
• Be direct and explicit about what you need or expect
• Do not withhold information• Be receptive to innovation
• Look beyond your own interests
• Demonstrate true concern for others
10.2 Manage Communications
Executing: Communications Management
Outputs
Project communications
Tools &Techniques
Communication technologyC i ti d l
Inputs
Communications management
PMBOK®
Fifth
Edition, Page
297
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jPM plan updatesProject documents updates
Organizational process assetsupdates
Communication modelsCommunication methodsInformation management
systemsPerformance reporting
gplan
Work performance reports
Enterprise environmental factorsOrganizational process assets
Page 255
10.2 Manage Communications
Manage Communications is theprocess of creating, collecting,
distributing, storing, retrieving,and the ultimate disposition ofproject information inaccordance with the
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accordance with theCommunications Management
Plan.
Page 255
Communication Management Plan
describes how communications will be planned,
structured, monitored and controlled.
Stakeholder communication requirements
Which information flows from whom, when, via which media, and in what format.
Schedule and frequency for information collection and distribution.
Methods to convey information (memos, e-mail, press releases , etc.)
Resources for communication activities, including time and budget
Problem escalation procedure
Method for updating the communication plan
Flow charts of information flow
List of reports and meetings planned (schedule and attendees)
Communications constraints
“Communications infrastructure” for the project (who may talk to whom )
Inputs: Includes the
Communications Management PlanInputs:
10.2.1 Manage Communications
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Performance Reports
• Organizes and summarizes information on project
status and progress
• May have different reports for different stakeholders,
each to the level of detail and in the format and
frequency appropriate to the stakeholder
Caution: Ensure a consistent “data date”,
ideally from a common set of data
• Includes cost, schedule, quality and scope accomplishment and variance
information
• Reports the results of variance analysis, trend analysis, and earned value
analysis. Generally involves charts such as bar charts (e.g., Gantt charts)
and S-curves (e.g., earned value charts) to summarize data and facilitate
reporting by exception.
Performance Reports
Guidelines for Performance Reports:
• keep the report short, matching its length tothe projects’ complexity and the audience’sneeds
• use a consistent template and format
• use visual elements such as charts and graphs
Criteria for Performance Reporting:
• gives timely, complete, and accurate information
• doesn’t add more a dministrative overhead thanit’s worth
• is acceptable and useful to all participants
• gives warning of problems in ti me for preventiveor corrective actions
• is easily understood by those who have a need toknow
Purpose of Performance Reports:
• to detect problems in time to take corrective or preventiveaction
• to reduce customer and management anxiety
• to share project information within the project team
More on these reports later . . .
Tools and Techniques
10.2.2 Manage Communications
Communication Technology Technology can vary from project-to-project and throughout the lifecycle of the same project. The team must ensure that the technology is
appropriate for the information being communicated.
Communication ModelsThe choice of communication model must be appropriate for the project
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pp p p jand any barriers (noise) are identified and managed.
Communications MethodsMethods to communicate can take place through many media. Effectiveand efficient use of each requires appropriate communication skills: Written and oral, listening and speaking Internal (in the project) and external (client, public) Formal (reports) and informal (memos, e-mail, IM, telecon) Vertical (up/down the org.) and horizontal (with peers)
Tools and Techniques
10.2.2 Manage Communications
Information Management SystemsA variety of tools are available for managing and distributing information:• Hard copy documents: letters, memos, reports, and press releases• Electronic communication media: e-mail, fax, IM, voice mail, telephone, video, web
conferencing, web sites, web publishing, FTP sites, intranet• Electronic PM tools: web interfaces for scheduling , PM software, Skype, meeting software,
virtual office software, portals, and collaborative work management tools.
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Performance ReportingThis is collecting and distributing performance information (status reports, progress
measurements, and forecasts). It includes periodic analysis of baseline versus actual data tocommunicate progress and to forecast project results. Simple reports show percent completeor status dashboards (scope, schedule, cost, quality). More elaborate reports may include:• Analysis of past performance• Analysis of forecasts (including time and cost)• Status of risks and issues• Work completed during the period• Work to be completed during the next period
• Summary of changes approved, etc.
12.2 Conduct Procurements
Executing: Procurement Management
Outputs
Selected sellersAgreements
Tools &Techniques
Bidder conferencesProposal evaluation
techniques
Inputs
Project management planProcurement documentsSource selection criteria
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Resource calendarsChange requests
Project management planupdatesProject documents updates
techniquesIndependent estimatesExpert judgment
AdvertisingAnalytical techniquesProcurement negotiations
Source selection criteriaSeller proposalsProject documents
Make-or-buy decisionsProcurement statement of workOrganizational process assets
Page 260
12.2 Conduct Procurements
Conduct Procurements is theprocess of obtaining seller
responses, selecting a seller andawarding a contract.
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It may involve developing a shortlist of qualified sellers which are
then subject to furtherinformation
Page 260
Understand the following Inputs for the test:
Procurement Management Plan: How procurement processes will be managed
Procurement Documents: Used to request proposals from sellers, audit trail
Source Selection Criteria: Used to rate and scope proposals
12.2.1 Conduct ProcurementsInputs
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Seller Proposals: Evaluated to select the successful seller
Project Documents: Risk Register and contract decisions on risk
Make-or-Buy Decisions: Will the work be done internally or be acquired?
Procurement Statement of Work: Clearly stated goals and requirements
OPA: Company supplier lists
Pages 260-261
Bidder Conferences – Assembling allprospective vendors in a single meeting, with
information disseminated and individual bidslater received
Proposal Evaluation Techniques –
Comparison of alternative proposals on theb i f d
W i ht d S i
12.2.2 Conduct ProcurementsTools and Techniques
Weighting System
1) determines the evaluation factors
2) assigns a numerical weight to each factor
3) rates the prospective sellers on each criterion
4) multiplies each rating by its weighting
5) totals the ratings to compute an overall score
Removes personal bias, is more objective, and considers
relative importance of different evaluation factors
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basis of vendor responses. Weighted Scoringis a commonly used technique
Independent Estimates – Use of an outsideprofessional to provide a benchmarkestimate of costs in advance of receivingproposalsExpert Judgment – Experts from variousdisciplines may be used to evaluate and
advise on proposals
• Typical factors include technical,
management, and cost factors
• Avoid overly complicated rating models
Pages 262-263
Advertising – Advertising in selectednewspapers or trade publications.Government may require advertising ofcertain kinds of contracts.
Analytical Techniques – evaluate readiness ofa seller, examine past performance for risks.
12.2.2 Conduct ProcurementsTools and Techniques
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Procurement Negotiations – The projectmanager may not be the lead negotiator in
many cases, but will provide technical andproject clarification.
Pages 263-264
12.2.2 Conduct ProcurementsTools and Techniques: Procurement Negotiations
• responsibilities and authorities (Who Will Negotiate?)• pricing, payments, and payment schedules
… undertaken to clarify structure, requirements,
and contract terms so that mutual agreement on
contract terms can be reached prior to signing.
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p g p y p y• penalty terms• deliverables -- specifications, quantities, quality, timing• applicable laws, standards, regulations, and other requirements• technical and management approaches• copyright and ownership issues; data rights
Ethical Negotiations: each party is honest with the other,regardless of expectations related to future work.
Page 264
Selected Sellers:
Sellers who are competitive and have
negotiated a draft contractAgreements:
A legal agreement between Buyer and Seller,mutually binding. It includes many
12.2.3 Conduct ProcurementsOutputs
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mutually binding. It includes manyrequirements and terms that you shouldremember, including Incoterms and ADR.Read this section carefully.
Page 265
12.2.3 Conduct ProcurementsOutputs: Types of Contracts
Fixed Price (or Lump Sum) Type Contracts:
Cost Reimbursable Type Contracts:
Used on well specified projects for which costs can be accuratelyestimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)
ExamTip
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Time & Materials Type Contracts:
Used on development projects for flexibility. Cost risk is on the buyer, so
establish administrative & reporting systems to allow both buyer and sellervisibility into costs. (Includes CPFF, CPIF, CPAF)
Used on projects where the deliverables are well defined, repetitive unitsbut the quantities are not yet known (e.g., identical pieces of equipment, or
labor hours and associated material costs – includes overhead and burden)
p
13.3
Manage Stakeholder
Engagement
Executing: Stakeholder Management
Outputs
Issue logChange requestsP j l
Tools &Techniques
C i i h d
Inputs
Stakeholder management planC i i
PMBOK®
Fifth
Edition, Page
404
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Project management planupdates
Project documents updatesOrganizational process assetsupdates
Communication methodsInterpersonal skills
Management skills
Communications managementplan
Change logOrganizational process assets
Page 268
13.3 Manage Stakeholder Engagement
Manage Stakeholder Engagement is theprocess of communicating and working withstakeholders to meet their needs, addressissues as they occur, and foster stakeholderengagement in project activities throughoutthe project life cycle.
i k h ld i h
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Managing stakeholders increases thelikelihood of project success by ensuring
they clearly understand project goals,objectives, benefits, and risk.
Test items in this process are Inputs/Tools and Techniques/Outputs, andunderstanding the issues and change logs.
Pages 268
The Project Manager (PM) is responsible for engaging and managingstakeholders.
Monitoring & Controlling Process GroupPMBOK®
Fifth
Edition, Page
86
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Process Groups
Knowledge AreasInitiating Planning Executing Closing
Monitoring &
Controlling
4. Project IntegrationManagement
4.2 Develop ProjectManagement Plan
4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated
Change Control
5. Project ScopeManagement
5.1
Collect Requirements5.2
Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2Sequence Activities6.3
Est. Activity ResourcesEst. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
7. Project CostManagement
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
Project Work4.1 Develop Project Charter
5.4 Create WBS
6.4
4.6 Close Project
or Phase
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
7.1 Plan Cost Mgt.
PMBOK® Fifth Edition, Page 61
Monitoring and Controlling
4.4 Manage and ControlProject Work
4.5 Perform IntegratedChange Control5.5 Validate Scope5.6 Control Scope
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8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement
12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
13.1 Identify Stakeholders 13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
6.7 Control Schedule7.4 Control Costs
8.3 Control Quality10.3 Control Communications11.6 Control Risks12.3 Control Procurements13.4 Control Stakeholder
Engagement
4.4 Monitor and Control Project Work
M&C: Integration Management
Outputs
Change requestsWork performance reports
Tools &Techniques
Expert judgmentAnalytical techniques
Inputs
Project management planSchedule forecastsCost forecasts
PMBOK®
Fifth
Edition, Page
86
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Work performance reportsProject management plan
updatesProject documents updates
Analytical techniquesProject management
information systemMeetings
Cost forecastsValidated changes
Work performance informationEnterprise environmental factorsOrganizational process assets
Page 274
4.4 Monitor and Control Project Work
Monitor and Control Project
Work is the process of tracking,
reviewing and reporting theprogress to meet theperformance objectives definedin the project management plan
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in the project management plan.
Control includes determiningcorrective action, preventativeaction or defect repair andfollowing up on actions taken toresolve performance issues
Page 274
4.4 Monitor and Control Project Work
Taken together, the controlling processes monitor project progress and performance
against the plan and provide the appropriate response to deviations from plan. Theseresponses frequently require changes to the project plan; hence, project planning,
project execution, and project control form a triad of process groups that are
repeated throughout the project life cycle at each phase gate.
Project
monitoring
and
control
is
more
than
earned
value
Many project management technicians and some inexperienced project managersequate project control with earned value. While earned value is an essential part of
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project control, it is only a part. Fully integrated project control draws from severalknowledge areas and calls upon all of the leadership, communication, and negotiation
skills of the project manager.
Project monitoring and control is more than data collection
Another common, practical problem is confusing data collection with project control.
Project control is more than just collecting data about project performance; it alsorequires analyzing the data, evaluating the meaning of the data and any variances,
taking appropriate corrective actions, and related record keeping.
4.4 Monitor and Control Project Work
This process is part of Project Integration Management knowledge area,
along with Integrated Change Control. This process involves
monitoring
all
processes: initiating, planning, executing, and closing.
Monitoring &
Controlling Processes
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Planning
Processes
Executing
Processes
Initiating
Processes
Closing
Processes
Inputs: The Project Management Plan (Another Reminder)
4.4.1 Monitor and Control Project Work
Plan Scope Management Collect Requirements Define Scope
Determine Budget Plan Quality Management Plan Human Resource Management
The other 23 planning processes are integrated to create the projectmanagement plan. Updates to any plans require an update to the PM plan. Think
of the PM plan as a bucket into which all the other plans “drip” until it is full.
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Define Scope Create WBS
Plan Schedule Management Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations
Develop Schedule Plan Cost Management Estimate Costs
Plan Human Resource Management Plan Communications Management
Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response
Plan Procurement Management Plan Stakeholder Management
Other Inputs:
4.4.1 Monitor and Control Project Work
• Schedule Forecastsusing schedule variance (SV) and schedule performance index
(SPI) to compute estimate to complete (ETC)
• Cost Forecastsusing cost variance (CV) and cost performance index (CPI) to
t ti t t l ti (EAC)
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compute estimate at completion (EAC)
• Validated Changes• Work Performance Information
collected data is analyzed and transformed into workperformance information
• EEF and OPA
Work Performance Information
• Status of deliverables
• Implementation of change requests
• Forecasts: variance, trend, and earned valueinformation, estimates at completion (EAC),schedule forecasts, index information
(SPI CPI TCPI)
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(SPI, CPI, TCPI).
• Generally involves Gantt charts and S-curves.• Includes cost, schedule, quality and scope
accomplishment and variance information
Page 276
Tools and Techniques:
4.4.1 Monitor and Control Project Work
• Expert Judgment
• Analytical Techniquesregression analysis, grouping methodscausal analysis root cause, FMEA, trends, etc.
• Validated Changes
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g
• PMIS and Meetings
4.5 Perform Integrated Change Control
M&C: Integration Management
Outputs
Approved change requestsChange log
Tools &Techniques
Expert judgment
Inputs
Project management planWork performance reports
PMBOK®
Fifth
Edition, Page
94
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Change logProject management plan
updatesProject documents updates
Expert judgmentMeetingsChange control tools
Work performance reportsChange requestsEnterprise environmental factorsOrganizational process assets
Page 279
4.5 Perform Integrated Change Control
Perform Integrated Change Control
is the process of reviewing allchange requests, approvingchanges and managing changes to
deliverables, organizational processassets, project documents and theproject management plan; andcommunicating their disposition.
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Sometimes a Change Control Board
(CCB) is responsible for approvingor rejecting changes, as approvedby the customer or sponsor.
Page 279-280
Configuration Control focuses on the specification of deliverables andprocesses.
Change Control focuses on changes to project documents, deliverables orbaselines.
4.5 Perform Integrated Change ControlChange
Control System
A set of procedures that describes how modifications to theproject deliverables and documentation are managed andcontrolled, including:
• requesting changes• reviewing the implications of changes requests
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• approving or rejecting changes
• communicating changes• maintaining a change log - comprehensive list of changes
4.5.2 Perform Integrated Change ControlTools and Techniques: Configuration Management
A set of processes and procedures to ensure that thedocumentation of the product and the actualproduct remain consistent with each other:
Glossary Definition:
The config ration management s stem is a collection of proced res sed
ExamTip
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The configuration management system is a collection of procedures usedto identify and document the functional and physical characteristics of aproduct or component. It:
• controls changes to these characteristics,• records/reports each change,• audits the products to verify conformance to requirements.• documentation, tracking, and approval levels• validates the impact, and• communicates them to stakeholders.
4.5.1 Perform Integrated Change ControlInputs: Work Performance Reports
Reports of interest include:• resource availability,• schedule/cost data,
• earned value management (EVM) reports, and• Burnup or burndown charts.
A burndown chart tracks how muchk i j t d
A burnup chart tracks how much
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work remains on your project andwhether or not you will hit the deadline.
work is done.
4.5.1 Perform Integrated Change ControlInputs: Change Requests are NOT Change Orders
Change Requests: oral or written, formal or informal, may or may not
be implemented
Change Orders: formal request for change to approved project plan;
typically used for projects performed under contract
Beware of the “Constructive Change Order” -- an oral or writtencommunication from a perceived authority that the project team may(possibly legally) respond to as equivalent to a written change order
ExamTip
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(possibly legally) respond to as equivalent to a written change order.
“A Functional Manager wants to make a change in the project. What is the firstthing a PM should do?”
“A Senior Manager decides the scope of work should be changed. What is bestto do?”
Answer: Evaluate the impact on the project. Meet with the team to discussalternatives, before deciding to use reserves and meet with management.
The Exam lists incorrect choices, like: “meet with the customer first” or “meet
with management first” The correct answer is evaluate first
4.5.2 Perform Integrated Change ControlTools and Techniques: Change Control Meeting
Approved or Rejected Change Requests
A formally chartered group responsible for reviewing, evaluating,i d l i j ti h t th j t d f di
In some projects, changes are controlled by a Change Control Board (CCB),
And implemented by the Project Team
A Change Control Board (CCB) is:
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approving, delaying, or rejecting changes to the project, and for recordingand communicating such decisions.
• Reviews and approves or rejects change requests• May also be responsible for defining the change request process,
communicating change decisions, and managing the implementationof approved changes.
• Power and responsibilities should be reviewed and agreed to by
stakeholders
5.5 Validate
Scope
M&C: Scope Management
Outputs
Accepted deliverablesChange requests
Tools &Techniques
Inspection
Inputs
Project management planRequirements documentation
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Work performanceinformation
Project documents updates
Group decision-makingtechniques
Requirements traceability matrixVerified deliverablesWork performance data
Page 285
5.5 Validate Scope
Validate Scope
is the process offormalizing acceptanceof the completedproject deliverables.
Scope validation is
PMBOK® Fourth Edition, Page 123
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Scope validation isdifferent from quality
control in thatvalidate scope isprimarily concernedwith the acceptance ofthe deliverables
Page 285
5.5.3
Validate ScopeOutputs: Accepted Deliverables
These have all been answers on the test:
Customer feedback on a more detailed basis
Done at the end of each Project Phase Results in formal acceptance
ExamThe questions on the exam are vague on Scope Validation.
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Tip Read them carefully.
One question asks for: “the key aspect of scope validation”
Answer: “customer acceptance of project efforts”.
The answer does not involve correctness of the work.
5.6
Control Scope
M&C: Scope Management
Outputs
Work performanceinformation
Change requestsProject management plan
Tools &Techniques
Inputs
Project management planRequirements documentation
PMBOK®
Fifth
Edition, Page
136
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updatesProject documents updatesOrganizational process assets
updates
Variance analysisRequirements traceability matrixWork performance dataOrganizational process assets
Page 288
5.6 Control Scope
Control Scope is the processof monitoring the status of theproject and product scope and
managing changes to thescope baseline
Uncontrolled changes areoften referred to as
Scope
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often referred to as Scope
Creep.
Page 288
5.6.1 Control ScopeInputs
The primary inputs to Control Scope are: Project management plan Requirements documentation Requirements traceability matrix
Work performance data Organizational process assets
The project management plan includes the following to control scope:
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p j g p g p
The scope baseline Scope management plan Change management plan Configuration management plan Requirements management plan
5.5.2 Control ScopeTools and Techniques: Variance Analysis
… a comparison of actual results to planned results for the purpose of early
problem detection ...
• Cost, schedule, scope, and quality variancesare most typical – but they can also includeresources and risk variances.
• Both positive and negative variances need
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analysis
• Should involve an evaluation of cause andimpact
• Becomes an input to change control processfor generating corrective actions
5.5.2 Control ScopeOutputs: Work Performance Information
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6.7
Control Schedule
M&C: Time Management
Outputs
Work performanceinformation
Schedule forecastsChange requestsP j l
Tools &Techniques
Performance reviewsProject management
softwareResource optimization
Inputs
Project management planProject scheduleWork performance data
PMBOK®
Fifth
Edition, Page
185
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Project management planupdates
Project documents updatesOrganizational process
assets updates
techniques
Modeling techniquesLeads and lagsSchedule compressionScheduling tool
Work performance dataProject calendars
Schedule dataOrganizational process assets
Page 292
6.7 Control Schedule
Control Schedule is the processof monitoring the status ofproject activities to updateproject progress and managechanges to the schedule baselineto achieve the plan
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6.7.1 Control ScheduleInputs
The inputs to Control Schedule are: Project management plan Project schedule
Work performance data Project calendars Schedule data OPA
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To control schedule, the project management plan includes:
The schedule management plan The schedule baseline
6.7.2 Control ScheduleTools and Techniques: Performance Reviews
PV = Planned Value (was BCWS) (1)
EV = Earned Value (was BCWP) (2)
AC = Actual Cost (was ACWP) (3)
(1) requires a performance baseline
(2) requires a way to measure value ofwork completed (earned value)
(3) requires a way to collect actual
costs at work package level
PV
AC
Actual Cost
CV
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t Actual
t When Planned
Time
Cost,Hours,or WorkProducts
EV
Work Performed(Earned Value)
PV
Planned Value
SVScheduleVariance
CVCost
Variance
Pages 294-295
6.7.2 Control ScheduleTools and Techniques: Variance Analysis
… a comparison of actual results to planned results for the purpose of early
problem detection ...
• Cost, schedule, scope, and quality variancesare most typical – but they can also includeresources and risk variances.
• Both positive and negative variances need
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analysis
• Should involve an evaluation of cause andimpact
• Becomes an input to change control processfor generating corrective actions
6.7.2 Control ScheduleTools and Techniques: Corrective Action
* Taking action to expedite schedules, suchi i diff t
Changes to align future project performance with the project plan.Corrective actions should be based on what-if evaluations and may
be the result of formal replanning. Corrective actions complete theloop between project control and project execution:
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as assigning more or different resources or
overlapping tasks
* Delaying a purchase to protect cash flow
* Invoking planned risk responses when riskevents occur
6.7.2 Control ScheduleTools and Techniques: Trend Analysis
• a tool that uses mathematicaltechniques to forecast future
outcomes based on past results
• may be used to monitor quality(product), cost and
scheduleperformance of a project
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performance of a project
• provides a high-level overview thatindicates whether or not moredetailed information is needed The Rule of Seven: 7 data
points all above or below themean, or all increasing or
decreasing, indicate a trend
6.7.2 Control ScheduleTools and Techniques: Project Management Software
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6.7.2 Control ScheduleTools and Techniques: Resource
Optimization Techniques
Month 1 Month 2 Month 3 Month 4
Resource plans are best when resource requirementsincrease and decrease without variations
1.5
The
resource histogram is a time-phased display of the amount ofproject work assigned to each resource (PMBOK Fifth Edition, Page 189-190)
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Product Manager
0.5
1.0
6.7.2 Control ScheduleTools and Techniques: Modeling Techniques
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6.7.2 Control ScheduleTools and Techniques: Schedule Compression
Activity
ABC
NormalTime
4 wks3 wks2 wks
NormalCost
12,0006,0004,000
CrashTime
2 wks2 wks1 wks
CrashCost
15,0007,0005,500
Crash(wks)
2 wks1wks1 wks
TotalCrash Cost
3,000
1,0001,500
Crash Costper week
1,5001,0001,500
Fast TrackingParalleling - Activities or phases normally be done in sequence are performed in
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Paralleling Activities or phases normally be done in sequence are performed inparallel for at least a portion of their duration. fast tracking can result in rework and
increased risk.
CrashingA technique to shorten the schedule duration for the least incremental cost by adding
resources. Works only for activities on the critical path. May result in increased riskand/or cost.
ExamTip
7.4
Control Costs
M&C: Cost Management
Outputs
Work performanceinformation
Cost forecastsChange requestsProject management plan
Tools &Techniques
Earned Value ManagementForecastingTo-complete performance
index (TCPI)
Inputs
Project management planProject funding requirements
PMBOK®
Fifth
Edition, Page
215
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Project management planupdates
Project documents updatesOrganizational process
assets updates
index (TCPI)Performance reviews
Project management softwareReserve analysis
Work performance data
Organizational process assets
Page 300
7.4 Control Costs
Control Costs is the process ofmonitoring the status of theproject to update the project
costs and managing changes tothe cost baseline
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7.4.1 Control CostsInputs: Project Management Plan (Cost Management Plan & Cost Baseline)
Cost Cost Performance Baseline
CumulativePlanned Value (PV)
Spending Plansand Cash Flow
ExamTip
A time-phased budget (either by performance period or summed cumulativelyover the life of the project) used to monitor and control project costs.
BAC
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Time
Planned Value (PV)
Monthly PlannedValue (PV)
Plans are special
types of CostBaselines
7.4.1 Control CostsInputs: Project Funding
Requirements and Management Reserve
ExamTip
Cost
Cost BaselineCumulative Planned
Value (PV)
}Management
Reserve
Project Budget
BAC
EAC (forecasted cost)
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Time
Cash FlowFunding
Expenditures
7.4.1 Control CostsInputs: Work Performance
Data
• Organizes and summarizes information on projectstatus and progress
• It includes data on activities that have started , theirprogress, and which deliverables have been finished
• Includes cost, schedule, scope accomplishment and variance information
• Includes data on costs authorized and costs incurred
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Caution: Ensure a consistent “data date”,
ideally from a common set of data
• Includes data on costs authorized and costs incurred
7.4.2 Control CostsTools and Techniques: Earned Value Management (EVM)
Earned value management (EVM), also known as earned
value technique (EVT) compares Earned Value (EV or BCWP)to both Planned Value (PV or BCWS) and Actual Cost (AC orACWP) to analyze cost control, resource management, andproduction. Cost control determines the cause of a variance,its magnitude, and if corrective action is needed.
ExamTip
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CV at the end of a project is BAC minus total actual cost. SVat the end of a project is zero, because all of the plannedvalues will have been earned.
CPI and SPI are efficiency indicators.
7.4.2 Control CostsTools and Techniques: Earned Value Management (EVM)
Definition of Terms
Value of work planned to be done at any point in time.
How much did we spend to get the work done at a point in time?
Planned value of the work we completed at any point in time.
How much did we budget for the whole project?
Given our progress, what is our forecast of the total project cost?
PV
AC
EV
BAC
EAC
Planned Value
Actual Cost
Earned Value
Budget at Completion
Estimate at Completion
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How much more do we estimate the job will cost?
How much over/under budget will we be?
ETC
VAC
Estimate to Complete
Variance at Completion
Tools and Techniques: Earned Value Management (EVM)
-
Equations
CV Cost Variance CV = EV – AC Negative = Over budget,Positive = Under budget
SV Schedule Variance SV = EV – PV Negative = Behind schedule,Positive = Ahead of schedule
CPI Cost Performance Index Less than 1.0 = Over budgetGreater than 1.0 = Under budget
SPI Schedule PerformanceIndex
Less than 1.0 = Behind scheduleGreater than 1.0 = Ahead of schedule
EAC Estimate at Completion(4 formulas)
Used when EV trend is typical (CPI will be thesame for the rest of the project)
EAC AC + (BAC EV)
BACCPI
EVAC
CPI =
EVPV
SPI =
EAC =
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Definition:At this time in the project,what is the forecast oftotal project cost?
Used when EV trend is atypical (CPI will
change to follow the planned rate, or PV line)
Actual cost plus bottom-up estimate tocomplete by the team. (plan is no longer valid,re-estimate the plan)
Used when both CPI and SPI influence theremaining work. Assumes negative costperformance and need for firm schedule.
EAC = AC + (BAC-EV)
(BAC-EV)
(CPI x SPI)
EAC = AC + ETC
EAC = AC +
Tools and Techniques: Earned Value Management (EVM)
-
Equations
ETC Estimate to Complete ETC = EAC - AC
ETC= Re-estimate
The expected cost to finish all the remainingwork. If work is proceeding on plan, use thisthis to calculate the work remaining
Bottom up re-estimate by the team
TCPI
Based
on
Less than 1.0 = Easier to completeGreater than 1.0 = Harder to completeBAC-EV
BAC ACTCPI =
7.4.2 Control Costs
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BAC
Based
on
EAC
VAC
Cost efficiency that must
be maintained tocomplete the project onplan (BAC).
Cost efficiency that mustbe maintained tocomplete the current EAC.
Variance at Com letion
(Value of work remaining divided by the value
of the budget remaining)
Less than 1.0 = Easier to completeGreater than 1.0 = Harder to complete(Value of work remaining divided bycalculated estimate to complete, ETC)
At the end, how much more or less than planwill we have spent?
BAC-AC
BAC-EVEAC-AC
TCPI =
VAC = BAC-EAC
7.4.2 Control CostsTools and Techniques: Earned Value Management (EVM)
EACWork Products
Money Hours Deliverables.
$2,000 200 20
$3,000 300 30
ACCost
ProjectedOverrun
PV( li )
BAC
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0
$1,000 100 10
1 2Weeks
3
Schedule Variance (SV)
Variance
(CV)
EV
(Baseline)
7.4.2 Control CostsTools and Techniques: EVM, The Easy Way to Remember It
• EV (BCWP) comes first in every formula.
• If it is a variance - it is EV minus something• If it is an index - it is EV divided by something
• If the question relates to cost - use AC
• If the question refers to schedule - use PV
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• Negative is either behind schedule or over budget( For example: CV = -30% = over budget)
• Positive is either ahead of schedule or under budget
WBSCum Hrs
Project Status at the end of Week 2
Task A 100% complete AC = 140 hours
Task B 25% complete AC = 80 hours
Task C 0% complete AC = 0 hours
Try It:
Schedule Variance ____________
Cost Variance ____________
Cost at Completion ____________(Typical)
Cost at Completion ___________(Atypical)
-50 hours
-70 hours
733 hours
570 hours
Exercise
Dimensions of Project Performance
PV = Planned ValueAC = Actual Cost
EV = Earned Value
Schedule Variance = EV - PV
Cost Variance = EV - AC
CPIc = EVc/ACc
Estimated (Cost) (BAC-EVc)]
at Completion =(EAC): Typical
Estimated (Cost)at Completion = ACc + (BAC-EVc)
(EAC): Atypical
CPIcAC
c
+
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Task A100 Hrs
Task B200 Hrs
Task C200 Hrs
WBS
A
C
Time, weeks 1 2 3 4
500
Cum. Hrs.
400
300
200
100
BCWS
B
50 50
100 100
100 100
EVc = 150 hours
PVc = 200 hours
SV = - 50 hours
EVc = 150 hours
ACc = 220 hours
CV = - 70 hours
Cost at Completion = 220 + [(500-150)/(150/220)]
(Typical) = 733 hours
Cost at Completion = 220 + (500 -150)
(Atypical) = 570 hours
PV
= BAC/CPI
Page 308
7.4.2 Control CostsTools and Techniques: Forecasting
• EAC Based on ETC by the Team
EAC = AC + Bottom-Up ETC
• EAC Forecast where Future Work is at Same Rate of Work Shown in the Baseline Budget
Past costs were atypical, and future work will be at the same rate of expenditure as in the baseline budget.
EAC = AC + (BAC - EV)
• EAC Forecast where Future Work will not Change from Actual
Past costs were typical of what will happen in the future.
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Past costs were typical of what will happen in the future.
EAC = BAC/CPI
• EAC Forecast where Future Work be Modified by both CPI and SPI
Future work will be at the same rate of expenditure as in the original baseline budget, but is modified byboth of the indexes. It assumes the project is in a cost overrun situation and there is a requirement to meeta firm schedule commitment. It is useful when schedule is a factor affecting future work. The weighting of CPI and SPI can be varied according to the PM’s judgment (80/20, 50/50, etc.)
EAC = AC + [(BAC – EV)/(CPI x SPI)]
Same as:
EAC = AC + [(BAC – EV)]/CPI]
7.4.2 Control CostsTools and Techniques: To
-
Complete Performance Index (TCPI)
TCPI is used to determine if the BAC or the EAC can be reasonably achieved
It measures future cost performance needed achieve either a target BAC ortarget EAC. Calculate the reasonableness of BAC first. If it is obvious that theBAC is no longer viable, the project manager should consider thereasonableness of achieving the forecasted EAC.
To Achieve a Target BAC To Achieve a Target EAC
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TCPI (BAC) =Work Remaining
Funds Remaining
TCPI (BAC) =BAC - EV
BAC - AC
To Achieve a Target BAC
TCPI (EAC) =BAC - EV
EAC - AC
To Achieve a Target EAC
7.4.2 Control CostsTools and Techniques: To
-
Complete Performance Index (TCPI)
The TCPI is compared to the cumulative CPI to determine if a target EAC isreasonable, e.g., within plus/minus 0.05 of the cumulative CPI (some
management groups allow plus/minus 0.10). If a TCPI delta exceeds 0.05, the
target EAC may be overly optimistic. If a TCPI delta is lower than 0.05, the target
EAC may be overly conservative.
Given a TCPI of 1.1, the simple definition is: for every dollar spent from here to
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Given a TCPI of 1.1, the simple definition is: for every dollar spent from here to
the end of the contract, a dollar and ten cents worth of budgeted work must becompleted (or earned) to achieve the target EAC. Likewise a TCPI of 0.95 means:
for every dollar spent from here to the end of the contract, only 95 cents worth
of budgeted work must be completed or earned.
7.4.2 Control CostsTools and Techniques: To
-
Complete Performance Index (TCPI)
To-Complete Performance Index
+TCPI (BAC)
Status Date
To-Complete Performance Index
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1.00
-
Baseline Plan
TCPI (EAC)
Cumulative CPI
8.3
Control Quality
M&C: Quality Management
Outputs
Quality controlmeasurements
Validated changesVerified deliverablesWork performance informationChange requests
Tools & Techniques
Seven basic quality toolsStatistical samplingI ti
Inputs
Project management planQuality metricsQuality checklistsWork performance dataApproved change requests
PMBOK®
Fifth
Edition, Page
248
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Project management planupdates
Project documents updatesOrganizational process
assets updates
Inspection
Approved change requestsreview
Approved change requests
DeliverablesProject documentsOrganizational process
assets
Page 315
8.3 Control Quality
Perform Quality Control isthe process of monitoringand recording results of
executing the qualityactivities to assessperformance andrecommend necessarychanges
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Page 315
8.3.1
Control Quality
Quality Control (QC): a process of monitoring and recording results (both product
and project management ) of executing quality activities to assess performance and
Inputs: Are straight forward, read them, but
remember
:
Quality Assurance (QA): the process of auditing quality requirements, and the
results from quality control (QC) measurements, to ensure quality standards andoperational definitions are used..
Quality assurance involves Quality Audits, and is done in Execution Process.
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to recommend necessary changes. Involves identifying ways to remove the causes of quality defects.
Quality control involves inspection and requires an understanding of samplingstrategies, tolerances, and the causes of variation in a process. It is done in theMonitoring and Controlling Process.
8.3.2
Control QualityTools and Techniques
Cause and Effect Diagram
Control Charts
Flowcharting
Histograms
The first seven (7) Tools & Techniques in this section arecalled the
Seven Basic Tools of Quality - know these for thetest!
ExamTip
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Pareto Diagrams
Checksheets
Scatter Diagram
8.3.2
Control QualityTools and Techniques: Cause and Effect Diagram
Cause & Effect, Ishikawa or Fishbone Diagrams
EFFECTCAUSES
People
Lack of Training
MethodsMaterialNot Following
Procedures
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EFFECT
Transport IT System Procedure
8.3.2
Control QualityTools and Techniques: Control Charts
A chart of process performance over time used todetermine if the process is in control or out of control
% 5
% 7
%
.. . ... .
.......UCL
. . ..
NormalDistributionCurve
Expected
Out of Control(Assignable Cause)
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in control normal distribution of outcomes due to common causes of variation
inherent in the process
out of control rule of seven, trends, and cycles due to special causes of variation
external to the process
±
1
6
8 %
±
2
9 5
. 5
±
3
9 9
. 7.... ..
.. .
...
.....
LCL
. . .MeanExpected
Variation
8.3.2
Control QualityTools and Techniques: Control Charts
Plan or MeanUCL
LCL
Lower Spec. Limit
Upper Spec. LimitHours recorded for this projectstarted on plan, but if the trend
continues, hours spent will driftout of control.
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Actual
8.3.2
Control QualityTools and Techniques: Flowcharting
Process Flowchart
Design Review
Revise
OK?
Yes
Proceed
No
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8.3.2
Control QualityTools and Techniques: Pareto Charts
q u e n c y o f o c c u r r e n c e ) Pareto Diagram: a histogram, ordered by
frequency of occurrence, that shows the percent
contribution of each category of identified cause tothe overall quality defects in a product or process.
80%?
Pareto Analysis: Pareto diagrams help
project teams identify the vital few factors that
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source
% c o n t r i b u t i o n ( o r f r e
Pareto’s Law:
80/20 Rule
Design of Experiments:
Which variables have influenceover the outcome.
“What If” Analysis
account for most quality problems from the morenumerous trivial many factors.
8.3.2
Control QualityTools and Techniques: Run Chart
… a tool that uses mathematicaltechniques to forecast futureoutcomes based on past results
… may be used to monitor quality(product), cost and scheduleperformance of a project
… provides a high-level overview that
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p g
indicates whether or not moredetailed information is needed The Rule of Seven: 7 data
points all above or below themean, or all increasing ordecreasing, indicate a trend
8.3.2
Control QualityTools and Techniques: Scatter Diagram
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8.3.2
Control QualityTools and Techniques: Statistical Sampling
…a technique for accepting or rejecting a larger population
by choosing a part of the population for inspection ...
• Statistical sampling can reduce the cost of QC on a project.• The validity of statistical sampling depends on an
appropriate choice of sample items and sample size.
• Sample size increases exponentially as the level of desired certaintyincreases and the acceptable level of error decreases
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increases and the acceptable level of error decreases.
• Sampling strategies include single samples from a lot, multiple smallsamples from a lot, and double sampling methods where the size of thesecond sample depends on the results of the first sample.
• All sampling strategies involve some risk of producer error (type I error)where acceptable lots are rejected based on a non-representative sample
or consumer error (type II error) where unacceptable lots are acceptedbased on a non-representative sample.
8.3.2
Control QualityTools and Techniques: Inspection Techniques
… An evaluation of whether or not the project results
conform to the latest specifications and requirements ...
Types of Inspection :• measuring• examining• auditing• testing
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• acceptance testing• reviewing• walk-throughs
Inspection generally takes place throughoutthe project’s lifecycle. Be sure to plan for it
accordingly and to include it in the WBS.
10.3 Control Communications
M&C: Communications Management
Outputs
Work Performanceinformation
Change requestsProject management plan
updates
Tools &Techniques
Information managementsystems
Expert judgment
Inputs
Project management planProject communicationsIssue logWork performance data
PMBOK®
Fifth
Edition, Page
303
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updates
Project documents updatesOrganizational process
assets updates
p j g
Meetings
Work performance data
Organizational process assets
Page 328
10.3 Control Communications
Control Communications is theprocess of monitoring andcontrolling communications
throughout the entire projectlife cycle to insure theinformation needs of theproject stakeholders are met.
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Inputs: Work Performance D
ata
• How much work is done so far?
• How much work did we plan to have done so far?
• When do we now estimate the project will be done?
• How much have we spent for what we’ve achieved?
?Earned Value Management: Test Yourself
10.3.1 Control Communications
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• How much have we spent for what we’ve achieved?
• How much did we plan to spend for what we’ve achieved?
• How much do we now estimate the project will cost to complete?
?
Outputs: Work Performance Information
10.3.3 Control Communications
Variance Analysis
… a comparison of actual results to p lanned results for the purpose of early
problem detection ...
• Cost, schedule, scope, and quality variances
are most typical – but they can also includeresources and risk variances.
• Both positive and negative variances need
analysis
• Should involve an evaluation of cause and
impact
• Becomes an input to change control process
for generating corrective actions
Earned Value Management: The Data
PV = Planned Value (was BCWS) (1)
EV = Earned Value (was BCWP) (2)
AC = Actual Cost (was ACWP) (3)
(1) requires a performance baseline
(2) requires a way to measure value of
work completed (earned value)
(3) requires a way to collect actual
costs at work package level
t Actual
t WhenPlanned
Time
Cost,
Hours,
or Work
Products
EV
Work Performed
(Earned Value)
PV
Planned Value
AC
Actual Cost
SVScheduleVariance
CVCost
Variance
TotalVariance
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• a tool that uses mathematical
techniques to forecast future outcomes
based on past results
• may be used to monitor quality
(product), cost and schedule
performance of a project
• provides a high-level overview that
indicates whether or not more detailed
information is neededThe Rule of Seven: 7 data
points all above or below the
mean, or all increasing or
decreasing, indicate a trend
Trend Analysis
11.6
Control
Risks
M&C: Risk Management
Outputs
Work performanceinformation
Change requestsProject management plan
updatesP j t d t d t
Tools &Techniques
Risk reassessmentRisk auditsVariance and trend analysisTechnical performance
measurement
Inputs
Project management planRisk registerWork performance dataW k f t
PMBOK®
Fifth
Edition, Page
349
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Project documents updatesOrganizational process
assets updates
Reserve analysisMeetings
Work performance reports
Page 335
11.6 Control Risks
Control Risks is the process ofimplementing risk responseplans, tracking identified
risks, monitoring residualrisks, identifying new risksand evaluating risk processeffectiveness throughout theproject
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11.6.1 Control RisksInputs
Work Performance Reports
The Risk Management Plan Includes:
• Methodology : Approaches, tools and data sources.
• Roles and Responsibilities: Team member ownership for risk activities.
• Budgeting: Funds needed for contingency reserves and management reserves.
• Timing: When processes will be done, reserves applied, and how risk appears in schedule.
• Categories: Risk groupings. The RBS looks at sources of risk, IDs and categorizes them.
• Thresholds :
What is the trigger? Stakeholders have different thresholds of risk tolerance,define them, and the must be agreed by all.
• Define P/I Levels: Qualitative (low to high) or probabilities.
• Risk Matrix: Likelihood-Severity, or Probability-Impact.
• Stakeholder Risk Tolerances: Progressively elaborated.
• Reporting Formats and Tracking: Document risk, auditing, defines content of risk register.
Risk Register
• Sources of risk, potential risk event, and risk symptoms
• Opportunities to pursue, opportunities to ignore
• Threats to respond to, threats to accept• Planned risk responses and how contingencies will be implemented
• Risk reserves
• Responsibilities for risk management
• Plan for ongoing risk identification,
quantification, and response development
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Guidelines for Performance Reports:
• keep the report short, matching its length tothe projects’ complexity and the audience’sneeds
• use a consistent template and format
• use visual elements such a s charts and graphs
Criteria for Performance Reporting:
• gives timely, complete, and accurate information
• doesn’t add more administrative overhead thanit’s worth
• is acceptable and useful to all participants
• gives warning of problems in time for preventiveor corrective actions
• is easily understood by those who have a need toknow
Purpose of Performance Reports:
• to detect problems in time to take corrective or preventiveaction
• to reduce customer and management anxiety
• to share project information within the project team
11.6.2 Control RisksTools and Techniques: Variance and Trend Analysis
Variance Analysis
… a comparison of actual results to planned results for the purpose of early problem detection ...
• Cost, schedule, scope, and quality variances
are most typical – but they can also include
resources and risk variances.
• Both positive and negative variances need
analysis
• Should involve an evaluation of cause and
impact
• Becomes an input to change control process
• a tool that uses mathematicaltechniques to forecast future outcomes
based on past results
• may be used to monitor quality
(product), cost and schedule
performance of a project
• provides a high-level overview that
indicates whether or not more detailed
information is neededThe Rule of Seven: 7 data
points all above or below the
Trend Analysis
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Becomes an input to change control process
for generating corrective actions
points all above or below the
mean, or all increasing ordecreasing, indicate a trend
11.6.2 Control RisksTools and Techniques: Reserve Analysis
A provision in the project plan to mitigate cost and/or schedulerisk
May be calculated as a percent of baseline to allow for overruns
May be established as a separate fund for unforeseen problemsMay have many different (and application area specific) names:
• management reserve• contingency
May be assigned to any level of the WBS, or RBS cause.
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ExamTip
PMI recommends aminimum total
reserve of 10%
11.6.3 Control RisksOutputs: Updates and Change Requests
Implementing contingency plans or workaroundsrequires change to the project plan.Workaround is defined as a response to a threat
that has occurred, for which a prior response hadnot been planned or was not effective.Change requests can include corrective andpreventive actions.
Change Control System
A set of procedures that describes how modifications to
the project deliverables and documentation are managed
and controlled, including:• requesting changes
• reviewing the implications of changes requests
• approving or rejecting changes
• communicating changes
• maintaining a change log - comprehensive list of changes
ExamTip
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Contingency =
Pre-Planned
Was on
my test
ExerciseRisk Monitoring and Control
ExamTip
The exam often asks questions such as:
•What do you do with non-critical risks?
•Would you select only one risk response strategy?
•What risk activities would you do during Execution?.
•What is most important to address in team meetings?
•How would risk be addressed in team meetings?
Answer: Document and revisit frequently
Answer: No, a combination of choices
Answer: Watch for non-critical risks thatbecome more important
Answer: Risk
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•How would risk be addressed in team meetings?
•Which are more frequent, contingency plans
or workarounds?
Answer: “Status of risks?”, “Any newrisks?”, “Any change to the
order of importance?”
Answer: With proper risk managementWorkarounds become lessfrequent than contingency plans.
12.3
Control
Procurements
M&C: Procurement Management
Outputs
Work performanceinformation
Change requestsProject management plan
updates
Tools &Techniques
Contract change controlsystem
Procurement performancereviews
Inspections and auditsPerformance reporting
Inputs
Project management planProcurement documentsAgreementsApproved change requestsWork performance reports
PMBOK®
Fifth
Edition, Page
379
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Project documents updatesOrganizational process
assets updates
p g
Payment systemsClaims administrationRecords management
system
Work performance reportsWork performance data
Page 341
12.3 Control Procurements
Control Procurements is theprocess of managingprocurement relationships,
monitoring contract performanceand making changes andcorrections to contracts asappropriate
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Inputs
Match Contract Type to the Project
Fixed Price (or Lump Sum) Type Contracts:
Cost Reimbursable Type Contracts:
Time & Materials Type Contracts:
Used on development projects for flexibility. Cost risk is on the buyer,
so establish administrative & reporting systems to allow both bu yer and
seller visibility into costs. (Includes CPFF, CPIF, CPAF)
Used on well specified projects for which costs can be accurately
estimated. Cost risk is on the supplier. (includes FFP, FPIF, FP-EPA)
Used on projects where the deliverables are well defined, repetitive units
ExamTip
12.3.1 Control Procurements
Procurement Statement of Work
A narrative description of products or services to be supplied under contract.
• Provides the basis of agreement between buyer and supplier
• Sufficient detail to allow prospective suppliers to de termine
whether or not they can comply
• Sufficient latitude for creative solutions only if appropriate
• Each procurement requires a separate SOW. But one SOW
may cover many items in a single procurement
• May be revised as the procurement progresses
• Should be clear, concise, and unambiguous
• May be developed by the project team
or supporting offices (or even the seller)
depending on policy and ability
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but the quantities are not yet known (e.g., identical pieces of equipment, orlabor hours and associated material costs – includes overhead and burden)
p g p y y
• Your best defense against procurement scope creep!
Inputs: Approved Change Requests
Change Requests/ Change Orders / Constructive Change Orders --know the differences
Use the Change Control System and Change Control Board
Approved / Unapproved -- document all “changes”
Re-plan and update the documentation (including risk)
12.3.1 Control Procurements
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Contractors may use change orders to “get well”
Tools and Techniques: Contract Change Control System
12.3.2 Control Procurements
Contract Change Control System
Defines the process by which the contract can be modified. It is
part of the Integrated Change Control system, and includespaperwork, tracking systems, dispute resolution conditions, andapproval levels for authorization.
If the buyer terminates the contract for cause, convenience, or
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default, it is done in accordance with the termination and changecontrol sections of the contract.
Contract changes usually also involve changes in either contractpricing or schedule or both. Disputed changes may require
mediation or legal resolution.
Tools and Techniques: Contract Change Control System
Contract Change Control System (PMBOK® Fourth Edition, Page 338): “A Process formodifying the contract”
• Note: When working under a contract, the PM’s success depends not solely on
success of team members, but on the culture and procedures of the buyer’s company.
• Exam questions - “How is project control different in a contracted
environment?” Answers may include:
Example
12.3.3 Control Procurements
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• You need to deal with a different company’s set of procedures
• It is not as easy to “see” the problems
• A greater reliance on reports to determine if a problem exists
• A greater reliance on relationships between Buyer and Seller’s PMs.
Tools and Techniques: Claims Administration
12.3.2 Control Procurements
Claims Administration
Contested changes and constructive changes are those where thebuyer and seller cannot agree on payment for the change, orcannot agree that the change even occurred. These become claims,disputes, or appeals.
If not settled by the parties, it may be subject to dispute resolution
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y p , y j pprocedures in the contract, e.g., arbitration dispute resolution(ADR), and can be started either before or after contract closure.The preferred method of settlement is negotiation.
EXERCISECONTRACT INTERPRETATION
–
“WHICH WINS”In each line, circle the item that would “win” in a dispute over contract interpretation !
It depends on the Order of Precedence Clause in the contract !
Contract Language OR A memo describing changes after the contract is signed
Contract Language OR A memo signed by both parties before the contract is signed thatdescribes what was agreed to during negotiations
Contract terms and conditions OR Scope of work
Common definition OR The intended meaning (without supplying a definition)
Industry use of the term OR Common use of term
12.3 Control Procurements
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Special provisions OR General provisions
Typed over wording on contract OR A handwritten comment on the contract that is also initialed
Numbers OR Words
Detailed terms OR General terms
Page 350
13.4 Control Stakeholder Engagement
M&C: Project Stakeholder Management
Outputs
Work performanceinformation
Change requestsProject management plan
updates
Tools &Techniques
Information managementsystems
Expert judgment
Inputs
Project management planIssue logWork performance dataProject documents
PMBOK®
Fifth
Edition, Page
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Project documents updatesOrganizational process
assets updates
Meetingsj
Page 351
13.4 Control Stakeholder Engagement
Control Stakeholder
Engagement is the process ofmonitoring overall project
stakeholder relationships andadjusting strategies and plans forengaging stakeholders. Thisprocess will increase theefficiency and effectiveness of
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engaging stakeholders as theproject evolves.The Project Manager (PM) isresponsible for engaging andmanaging stakeholders.
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Tools and Techniques: Information Management Systems
13.4.2 Control Stakeholder Engagement
Information Management Systems
A variety of tools are available to the PM for capturing anddistributing information on cost schedule and performance.Reports can be consolidated from several systems fordistribution.
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Examples are table reporting, spreadsheet analysis, andpresentations. Dashboard graphics can be used for visualpresentation of project performance
Closing Process Group
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Process Groups
Knowledge AreasInitiating Planning Executing Closing
Monitoring &
Controlling
4. Project IntegrationManagement
4.2 Develop ProjectManagement Plan
4.3 Direct & Manage 4.4 Mon/Ctrl Proj Work4.5 Perform Integrated
Change Control
5. Project ScopeManagement
5.1
Collect Requirements5.2
Define Scope
5.5 Validate Scope
5.6 Control Scope
6. Project TimeManagement
6.1
Define Activities6.2Sequence Activities6.3Est. Activity Resources
Est. Activity Durations6.5Dev. Schedule
6.7 Control Schedule
7. Project CostManagement
7.2 Estimate Costs
7.3 Determine Budget
7.4 Control Costs
8. Project QualityManagement
8.1 Plan Quality Mgt. 8.2 Perform Quality
Assurance8.3 Control Quality
9. Project HumanResourceManagement
9.1 Plan Human
Resource Mgt.9.2 Acquire Project Team9.3 Develop Project Team
9.4 Manage Project Team
Project Work4.1 Develop Project Charter
5.4 Create WBS
6.4
4.6 Close Project
or Phase
Plan Scope Mgt.
5.3
Plan Schedule Mgt.
6.6
7.1 Plan Cost Mgt.
PMBOK® Fifth Edition, Page 61
Closing
4.6 Close Project or Phase12.4 Close Procurements
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10. ProjectCommunicationsManagement
10.1 Plan Communications
Management10.2 Manage Communications
11. Project RiskManagement
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform QualitativeRisk Analysis
11.4 Perform QuantitativeRisk Analysis
11.5 Plan Risk Response
11.6 Control Risks
12. Project ProcurementManagement 12.1 Plan Procurement Mgt. 12.2 Conduct Procurements 12.3 Control Procurements 12.4 Close Procurements
13.1 Identify Stakeholders 13.3 Manage Stakeholder
Engagement
13.4 Control Stakeholder
Engagement
10.3 Control Communications
13. Project Stakeholder
Management13.2 Plan Stakeholder
Management
4.6 Close Project or Phase
Closing: Integration Management
Outputs
Final product, service or resulttransition
Organizational process assets
Tools &Techniques
Expert judgmentAnalytical techniquesMeetings
Inputs
Project management planAccepted deliverablesOrganizational process assets
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Fifth
Edition, Page
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updates
Page 355
4.6 Close Project or Phase
Close Project or Phase isthe process of finalizingall activities across all ofthe Project ManagementProcess Groups toformally complete theproject or phase
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The PM reviews all information from previous phaseclosures to ensure that all work has been done andobjectives have been met. The scope baseline (scope,WBS and WBS dictionary) is reviewed to ensurecompletion.
If a project is terminated before completion, proceduresare established to investigate and document why the
4.6 Close Project or Phase
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action was taken.
Stakeholders are engaged in the process.
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4.6.1 Close Project or Phase
Inputs: The Project Management Plan (Another Reminder)
Plan Scope Management Collect Requirements Define Scope Create WBS Plan Schedule Management
Determine Budget Plan Quality Management Plan Human Resource Management Plan Communications Management Plan Risk Management
The other 23 planning processes are integrated to create the projectmanagement plan. Updates to any plans require an update to the PM plan. Thinkof the PM plan as a bucket into which all the other plans “drip” until it is full.
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Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule
Plan Cost Management Estimate Costs
g Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Response Plan Procurement Management
Plan Stakeholder Management
4.61 Close Project or Phase
Inputs: Accepted Deliverables
These have all been answers on the test:
• Customer feedback on a more detailed basis
• Done at the end of each Project Phase (not PM phase)
• Results in formal acceptance
ExamTip
The questions on the exam are vague on Scope Validation.Read them carefully.
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One question asks for: “the key aspect of scope validation”
Answer: “customer acceptance of project efforts”.
The answer does not involve correctness of the work.
4.63 Close Project or Phase
Outputs: Final Product, Service, or Result Transition
Final Product, Service, or Result Transition
The output of Close Project or Phase is the transition of what the project was authorized to produce. If it is aphase closure, it is the intermediate product, service orresult of that phase. Formal acceptance includesreceiving a formal statement that the requirements of the project or phase have been met.
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4.63 Close Project or Phase
Outputs: Organizational Process Assets Updates
Organizational Process Assets Updates
Closure will include storage of project documentation using the configurationmanagement system. OPA updated during closure include:
Project FilesAssemble a complete set of project records from all processes for archiving, and updatinghistorical databases. Examples include: the PM plan, scope, cost, schedule, calendars, riskregisters, change documents, risk responses, and risk impact.
j h l
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Project or Phase Closure DocumentsDocumentation showing project completion (or termination) and transfer of deliverables.During closure, the PM reviews closure documents from all prior phases, acceptancedocuments from Validate Scope and the contract to ensure that all requirements arecompleted.
Historical InformationLessons learned are transferred to archives for future use. This can be information on issuesand risks as well as techniques that worked well and can be applied to future projects.
12.4 Close Procurements
Closing: Project Procurement Management
Outputs
Closed procurementsOrganizational process assets
updates
Tools &Techniques
Procurement auditsProcurement negotiationsRecords management system
Inputs
Project management planProcurement documents
PMBOK®
Fifth
Edition, Page
386
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12.4 Close Procurements
Close Procurements is theprocess of completing eachprocurement.
Contract closure involvesverification that all the work anddeliverables produced undercontract were
acceptable.
l h h
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In multi-phase contracts, theterm of the contract may onlyapply to the end of each phase,and this process would closephase-end contracts.
Page 360
Contract closure involves verification that all the work anddeliverables produced under contract were
acceptable. It alsoinvolves updating records to as-built and archiving this information
for future use. In multi-phase contracts, this process closes phase-end contracts.
Early
termination of a contract (or a portion) can result from
mutualagreement of the parties
or
from
default of one of the parties, or forconvenience of the buyer. Rights and responsibilities of the parties
ll d b h
i i
l
12.4 Close Procurements
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are controlled by the terminations clause.
Buyer may have the right to terminate all or part of a contract forcause or convenience at any time, but buyer may have tocompensate seller for preparations, partial completions, andcompleted/accepted work
Page 360
12.4.2 Close Procurements
Tools and Techniques: Procurement Negotiations
Negotiation is the primary goal for settlingdisputes
If this cannot be achieved, use AlternativeDispute Resolution (ADR) – Mediation orArbitration
Litigation is the
LEAST desirable option.
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4.6 and 12.4
Close Project/Phases and Close Procurements
Be prepared for as many as sixteen questions on these topics:
• Inputs and Outputs
• How Close Project is similar/different from Close Contract(Close Procurements has similar work to Close Project, butwith more attention on documentation, completion of filesand verification/acceptance.)
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10.2 Plan Communications
Plan Communications is the process of
determining the project stakeholder informationneeds and defining a communication approach
N(N
–
1)
Ch l
The formula:
One More Time: It was on my examination twice
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2Channels =
Reveals the number of possible channelsof communication in a group, where N isthe number of people in the group
Page 166-167
Professional Responsibility
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Professional Responsibility
Professional Responsibility
was introduced into thePMBOK in version in it’s third
edition. It requires project
managers to consider legal andethical issues, and at all timesto focus on professionalism andadvancement of the professionof project management
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Professional Responsibility
• Think about Legal, ethical and professional behavior whenanswering exam questions
• You will be challenged with multiple situational questions
• Read PMI Member Ethical Standards: Member Code of Ethics andMember Standards of Conduct, PMP Code of Professional Conduct
• Follow the law, follow bylaws and cooperate on ethics investigations
• The PMI prefers that ethics be handled through infractions without
ti t f l d
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resorting to formal procedures• Focus on professionalism, integrity, responsibility, self-
improvement, fairness, honesty and communication
• Balance stakeholders’ interests
Professional Responsibility
Read Pages 365-366 Carefully
Clarifying Information
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Professional Responsibility
Code of Professional Conduct 2006
CHAPTER 1. VISION AND APPLICABILITY1.1 Vision and PurposeAs practitioners of project management, we are committed to doing what is right and honorable. We set highstandards for ourselves and we aspire to meet these standards in all aspects of our lives—at work, at home, andin service to our profession.This Code of Ethics and Professional Conduct describes the expectations that we have of ourselves and our fellowpractitioners 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 individualbecome a better practitioner. We do this by establishing a profession-wide understanding of appropriatebehavior. We believe that the credibility and reputation of the project management profession is shaped by thecollective conduct of individual practitioners.We believe that we can advance our profession, both individually and collectively, by embracing this Code ofEthics and Professional Conduct. We also believe that this Code will assist us in making wise decisions, particularlywhen faced with difficult situations where we may be asked to compromise our integrity or our values.
Our hope that this Code of Ethics and Professional Conduct will serve as a catalyst for others to study deliberate
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Our hope that this Code of Ethics and Professional Conduct will serve as a catalyst for others to study, deliberate,and write about ethics and values. Further, we hope that this Code will ultimately be used to build upon andevolve our profession.
1.2 Persons to Whom the Code AppliesThe Code of Ethics and Professional Conduct applies to:1.2.1 All PMI members
1.2.2 Individuals who are not members of PMI but meet one or more of the following criteria:
.1 Non-members who hold a PMI certification
.2 Non-members who apply to commence a PMI certification process
. .3 Non-members who serve PMI in a volunteer capacity.
Professional Responsibility
Code of Professional Conduct 2006CHAPTER 2. RESPONSIBILITY
2.1 Description of ResponsibilityResponsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or failto take, and the consequences that result.
2.2 Responsibility: Aspirational StandardsAs practitioners in the global project management community:
2.2.1 We make decisions and take actions based on the best interests of society, public safety, andthe environment.
2.2.2 We accept only those assignments that are consistent with our background, experience, skills,and qualifications.
2.2.3 We fulfill the commitments that we undertake – we do what we say we will do.
2 2 4 When we make errors or omissions we take ownership and make corrections promptlyWhen e disco er errors or omissions ca sed b others e comm nicate them to the
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2.2.4 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 theappropriate body as soon they are discovered. We accept accountability for any issues resultingfrom our errors or omissions and any resulting consequences.
2.2.5 We protect proprietary or confidential information that has been entrusted to us.2.2.6 We uphold this Code and hold each other accountable to it.
Professional Responsibility
Code of Professional Conduct 2006
2.3 Responsibility: Mandatory Standards
As practitioners in the global project management community, we require the following ofourselves and our fellow practitioners:
Regulations and Legal Requirements2.3.1 We inform ourselves and uphold the policies, rules, regulations and laws thatgovern our work, professional, and volunteer activities.
2.3.2 We report unethical or illegal conduct to appropriate management and, ifnecessary, to those affected by the conduct.
Ethics Complaints
2 3 3 We bring violations of this Code to the attention of the appropriate body for
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2.3.3 We bring violations of this Code to the attention of the appropriate body forresolution.
2.3.4 We only file ethics complaints when they are substantiated by facts.2.3.5 We pursue disciplinary action against an individual who retaliates against a
person raising ethics concerns.
Professional Responsibility
Code of Professional Conduct 2006
CHAPTER 3. RESPECT
3.1 Description of Respect
Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us.Resources entrusted to us may include people, money, reputation, the safety of others, and naturalor environmental resources.An environment of respect engenders trust, confidence, and performance excellence by fostering
mutual cooperation.3.2 Respect: Aspirational Standards
As practitioners in the global project management community:3.2.1 We inform ourselves about the norms and customs of others and avoid engaging in
behaviors they might consider disrespectful.3.2.2 We listen to others’ points of view, seeking to understand them.
3.2.3 We approach directly those persons with whom we have a conflict or disagreement.
3 2 4 We conduct ourselves in a professional manner even when it is not reciprocated
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3.2.4 We conduct ourselves in a professional manner, even when it is not reciprocated.3.3 Respect: Mandatory Standards
As practitioners in the global project management community, we require the following ofourselves and our fellow practitioners:
3.3.1 We negotiate in good faith.3.3.2 We do not exercise the power of our expertise or position to influence the decisions or
actions of others in order to benefit personally at their expense.3.3.3 We do not act in an abusive manner toward others.3.3.4 We respect the property rights of others.
Professional Responsibility
Code of Professional Conduct 2006
CHAPTER 4. FAIRNESS
4.1 Description of FairnessFairness is our duty to make decisions and act impartially and objectively. Our conduct must be free fromcompeting self interest, prejudice, and favoritism.
4.2 Fairness: Aspirational Standards
As practitioners in the global project management community:4.2.1 We demonstrate transparency in our decision-making process.4.2.2 We constantly reexamine our impartiality and objectivity, taking corrective action as appropriate.4.2.3 We provide equal access to information to those who are authorized to have that information.4.2.4 We make opportunities equally available to qualified candidates.
4.3 Fairness: Mandatory Standards
As practitioners in the global project management community we require the following of ourselves and our
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As practitioners in the global project management community, we require the following of ourselves and ourfellow practitioners:
Conflict of Interest Situations
4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate
stakeholders.4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in
the decision-making process or otherwise attempting to influence outcomes, unless or until:we have made full disclosure to the affected stakeholders; we have an approved mitigationplan; and we have obtained the consent of the stakeholders to proceed.
Professional Responsibility
Code of Professional Conduct 2006
Favoritism and Discrimination
4.3.3 We do not hire or fire, reward or punish, or award or deny contracts based on personal
considerations, including but not limited to, favoritism, nepotism, or bribery.4.3.4 We do not discriminate against others based on, but not limited to, gender, race, age, religion,
disability, nationality, or sexual orientation.4.3.5 We apply the rules of the organization (employer, Project Management Institute, or other
group) without favoritism or prejudice.
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Professional Responsibility
Code of Professional Conduct 2006
CHAPTER 5. HONESTY
5.1 Description of HonestyHonesty is our duty to understand the truth and act in a truthful manner both in our communications and inour conduct.
5.2 Honesty: Aspirational StandardsAs practitioners in the global project management community:
5.2.1 We earnestly seek to understand the truth.5.2.2 We are truthful in our communications and in our conduct.5.2.3 We provide accurate information in a timely manner.
5.3 Honesty: Mandatory Standards
As practitioners in the global project management community, we require the following of ourselves and our
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As practitioners in the global project management community, we require the following of ourselves and ourfellow practitioners:
5.3.1 We do not engage in or condone behavior that is designed to deceive others, including butnot limited to, making misleading or false statements, stating half-truths, providing informationout of context or withholding information that, if known, would render our statements asmisleading or incomplete.
5.3.2 We do not engage in dishonest behavior with the intention of personal gain or at the expenseof another.
Professional Responsibility
Read Pages 375-377 Carefully
History of the Standard
Glossary
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Professional Responsibility
P.M.P ® Code of Professional ConductI. Responsibilities to the Profession
A. Compliance with all organizational rules and policies.1. Responsibility to provide accurate and truthful representations concerning all information directly or
indirectly related to all aspects of the PMI Certification Program, including and not limited to the following:examination applications, test item banks, examinations, answer sheets, candidate information, and
professional development program reporting forms.2. Upon a reasonable and clear factual basis, responsibility to report possible violations of the professional code
of conduct by individuals in the field of project management.3. Responsibility to cooperate with PMI concerning ethics violations and the collection of related information.4. Responsibility to disclose to clients, customers, owners, or contractors, significant circumstances that could be
construed as a conflict of interest, or an appearance of impropriety.
B. Candidate/Certificant Professional Practice.1 Responsibility to provide accurate truthful advertising and representations concerning qualifications
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B. Candidate/Certificant Professional Practice.1. Responsibility to provide accurate, truthful advertising and representations concerning qualifications,experience, and performance of services.
2. Responsibility to comply with laws, regulations, and ethical standards governing professional practice in thestate/province and/or country when providing project management services.
C. Advancement of the Profession.1. Responsibility to recognize and respect intellectual property developed or owned by others, and to otherwise
act in an accurate, truthful, and complete manner, including, all activities related to professional work andresearch.
2. Responsibility to support and disseminate the professional code of conduct to other PMI certificants.
Professional Responsibility
P.M.P ® Code of Professional ConductI. Candidate/Certificant Responsibilities to Customers and the Public
A. Qualifications, experience, and performance of professional services.
1. Responsibility to provide accurate and truthful representations to the public in advertising,public statements, and in the preparation of estimates concerning costs, services, and
expected results.2. Responsibility to maintain and satisfy the scope and objectives of professional services,
unless otherwise directed by the customer.3. Responsibility to maintain and respect the confidentiality of sensitive information obtained
in the course of professional activities or otherwise where a clear obligation exists.
B. Conflict of interest situations and other prohibited professional conduct.
1 Responsibility to ensure that a conflict of interest does not compromise legitimate interests
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1. Responsibility to ensure that a conflict of interest does not compromise legitimate interestsof a client or customer, or influence/interfere with professional judgments.
2. Responsibility to refrain from offering or accepting inappropriate payments, gifts, or other
forms of compensation for personal gain, unless in conformity with applicable laws or
customs of the country where project management services are being provided.
Professional responsibility
Types of Questions to Expect
You are building a water treatment facility. Routine tests indicatethat there are contaminants in the water but that they have anextremely low risk of causing sickness. As a project manager you
should:
A. Inform the public that a detailed examination has been orderedto determine the extent to which the problem exists
B. Do nothing because there is an extremely low risk except forsome effects on small children or the elderly
C. Tell the public there is no problem, except for small children and
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A. Inform the public …
C. Tell the public there is no problem, except for small children andthe elderly who should boil their water before drinking it
D. Educate the public about the advances in water treatmenttechnology and the industry efficiency and safety record
Professional responsibility
Types of Questions to Expect
B. Requirements
A KEY activity to defining customer satisfaction is to define:
A. Business Use
B. RequirementsC. Product SpecificityD. Change Control
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Professional responsibility
Types of Questions to Expect
B. Develop alternative solutions to the problem
When it appears that a design error will interfere with technicalperformance objectives, the PREFERRED response is to:
A. Decrease the performance value to equal the assessed valueB. Develop alternative solutions to the problemC. Increase the specified value to set a new performance goalD. Reduce the overall technical complexity of the project
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B. Develop alternative solutions to the problem
Professional responsibility
Types of Questions to Expect
B. Training
What is the MOST effective practice to ensure that cultural andethical differences do not impede the success of your multi-nationalproject?
A. Co-LocatingB. TrainingC. FormingD. Teaming
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B. Training
Professional responsibility
Types of Questions to Expect
A Mutual trust and cooperation
Negotiating across international cultures involves mutualinterdependence between parties. The negotiations MUST beconducted in an atmosphere of:
A. Mutual trust and cooperationB. Generalities and vaguenessC. Sincerity and compassionD. Uncertainty and caution
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A. Mutual trust and cooperation
PMP
®
Certification Test Preparation
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New Test and New PMBOK
®
Edition
The PMBOK® 5th
Edition was released in January2013. The test changed again on July 31, 2013.A new Knowledge Area was introduced:Stakeholder Management.
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Qualification Requirements
A minimum of 4500 hours PMexperience within the past 8
years
35 contact hours(PDU’s) of PM
education
+ =
Graduate, 4-Year Degree
Non-Graduate, or 2-Year Degree
Eligibility to takethe PMP®
examination
The T&T CD ID is E1091and Awards 11 PDU’s
PMTestOnline is C4070and Awards 11 PDU’s
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A minimum of 7500 hours PMexperience within the past 8
years
Page 2
This Course ID is E1078
and Awards 24 PDU’s
PMBOK Fifth Edition and the New Test
The PMBOK Fifth Edition was introduced in January 2013, and thenew fifth edition test started on July 31, 2013.
The PMP examination consists of 200 questions, with a four hourtime limit
That’s 72 seconds (or 1.2 minutes) per question
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This training course will give you everything you need,with a little self-study, to pass the PMP® examination
Visit www.pmi.org, download PMP Certification Handbook
Page 2
PMBOK
5
th
Edition PMP Test Domain Content
Project Initiation 13%Project Planning 24%
Project Execution 30%Project Monitoring & Control 25%Project Closing 8%
To pass, you need to get a minimum of 122ti t t f 200 ti (61%)
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To pass, you need to get a minimum of 122questions correct out of 200 questions (61%)
Pass rate on the 4th Edition test is about 74%
http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspxLog in with your User Name and PasswordFollow the instructions
Submit your application to Project Management Institute (PMI)
http://www.pmi.org/info/PDC_PMPHandbook.pdf
Control is through audit (when you pay)
Schedule a test date with Prometrichttp://www.prometric.com/PMI/default.htm
Apply to PMI to take the test,
Schedule a date with
Prometric
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PMI ® may audit when you pay your exam fee to PMI. If you cancel or reschedulewithin 30 days of the test, there is a fee of $70; within 2 days, you forfeit the entire fee.
Candidates have three (3) opportunities to pass the exam in one year. If they
do not pass any, they must wait one (1) year from the date of the last attempt.
Page 3
Taking the PMP
®
examination
Ensure youhave therequired
experience
Send inyour
application
Ensure youhave 35PDU’s
AND
Join thePMI® (if you
haven’t)
Studyhard forabout 2weeks
Take theexam
and pass
www pmi org
Scheduleexam at
Prometrics
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Complete aPMP® Prep
course
www.pmi.org
Applying to Take The Exam
• Apply using the PMI web site.http://www.pmi.org/Certification/Project-Management-Professional-PMP.aspx
• Using the PMI® web site to complete the application is fast and easy. Turn
around to approval is normally just a few days, but it may take a littlelonger.
• Sometimes your test center may not have an opening for a few weeks.
• On the computerized test, the questions are in English, but pop-up screens
will aid you in understanding the question in your native language. Thisfeature must be requested by you in your application
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y g q y g gfeature must be requested by you in your application.
• In some countries, the test may be given on paper, in English, not in yournative language.
Taking the PMP
®
examination
Number of Questions: 200
Time for the Exam: 4 Hours
To Pass: you must get about 122 of 200 questions correct About 61%
Questions are randomly generated, 4-option, multiple choice.
Questions not answered are wrong - answer all questions.
Don’t be surprised if some long questions are early in the exam
and you get behind on time.
Breaks are allowed, but extra time is NOT allotted for them.
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,
In most test centers you must sign out and sign back in, which takes time
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Reasons people fail the exam
• They do not read all the questionscorrectly
• They do not read all the choices ineach question
• They are too nervous• They have not studied enough or use
source books other than the PMBOK®• They believe they can rely purely on
experience
• They have not taken a PMP® prep
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course like this one
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• Go to the test center before the day of your test, find where it is, look at thetesting room, talk to the administrator.
• Bring your PMI® authorization e-mail or letter to the test site.
• Bring a picture identification.
• PMI has recently decided not to allow any personal calculators in the testingroom. A pop-up calculator is available on the computer. If that is awkward foryou to use, ask the administrator to provide a calculator for you.
• You will be given scrap paper, pencils, and in some test centers, earplugs.
Taking the PMP
®
examination
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• All personal items will be safely stored for you and cannot be taken into the testroom.
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• Upon entering the test room, you will be given 15 minutes to use the computertutorial and to become familiar with the commands. You can mark questions onthe computer and return to the marked questions later, or you can reviewevery question.
• Use the entire 15 minutes to write information you need to remember on the
scratch paper.• You will see one question on the screen at a time.
• Many people finish the exam ahead of the 4-hour limit and return to “marked”
questions for review/correction.
• When you finish the exam or when the time limit is expired, your answers arei di t l d d Th t t ll if A t
Taking the PMP
®
examination
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immediately graded. The computer tells you if you pass. A temporarycertificate is printed at the test center, and you immediately become a PMP®.PMI® will post a formal certificate to you later.
• If you do not pass, PMI® will be notified and will send you information about
retaking the exam. See PMI®s website about the additional fee.
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Hints on Test Questions
Choices like “ A or B” and “never and always” have been removed.
Watch out for distractors - choices that are true, but not the best answer.
There are about 45 to 75 “what should you do in this situation” questions.
Most people feel unsure about 50 of the 200 questions.
You must be familiar with PMI®-specific definitions. A big trick to success on the exam is to try to
use PMI®’s perspective, not your experience. If that does not work, then use your training and lifeexperiences.
Read the last sentence of each question first. What is the question asking?
Read ALL FOUR answers, without making a choice.
Read the whole question. Understand the topic and descriptors. Read the last sentence AGAIN,then eliminate two of the four answers.
Read the last sentence AGAIN, then pick the best of the two remaining answers.
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Read the last sentence AGAIN, then pick the best of the two remaining answers.
About 8 to 12 questions deal with PMBOK® step-by-step processes and the input/output toprocesses.
There have been less than 8 earned value questions on the exam in the last three years.
Use all the exam time; do not leave early unless you have reviewed each question twice.
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h kb k
Practice Test #3
CONGRATULATIONS !!!
You have just completed more
than the entire PMP Test!
You have done 228 questions
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Turn to page 449 in the workbookThere are 100 questions.
You have 120 minutes to completeAnswers are on page 475
Page 403
Hint: Use scratch paper for answers,so you can reuse the questions for practice
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