Edward PMP Study Notes

Preface
Thank you very much for downloading the PMP Study Notes based on PMBOK Guide 5th
Edition by Edward Chung, PMP. Hope the notes will help you preparing for your PMP
Certification Exam.
I originally created the notes for my PMP certification preparation which helped me to pass the
PMP exam with 4 proficient and 1 moderately proficient. These study notes were the fruits of
hours of reading and studying the PMBOK Guide, the PM PrepCast, the Edwel's PMP Book,
Andy Crowe's PMP book and countless practice exams.
After getting my PMP credential, I posted all the PMP study notes as blog posts on my
personal blog at http://www.edward-designer.com/web/pmp. To my surprise, many fellow PMP
aspirants find my notes useful for them and have literally 'printed' all the blog posts for their
PMP preparation.
I constantly ask myself: what I can do more to help PMP aspirants as a way to make some
contribution to the project management profession. The PMP Study Notes you are now
reading is my response to the need of PMP aspirants quality study notes for the PMP
examination. You can use it from the beginning of your PMP preparation so that you can add
any personal notes to it or as a last minute revision notes to check your PMP progress.
The PMP exam is tough, yet with lots of efforts and the right study materials, you can pass too!
Wish you PMP success!
Edward Chung, PMP
P.S. If you would like to get more tips on the PMP application process and how to know you
are ready for the PMP exam, please visit my blog http://www.edward-designer.com/web/pmp.
Table of Contents
01. Terms and Concepts

02 - 03. Project Management Processes and Knowledge Areas

04. Project Integration Management

05. Project Scope Management

06. Project Time Management

07. Project Cost Management

08. Project Quality Management

09. Project Human Resource Management

10. Project Communication Management

11. Project Risk Management

12. Project Procurement Management

13. Project Stakeholder Management

14. Professional and Social Responsibility

A. PMP Formulas

B. Last Minutes Revision Notes
01. Terms and Concepts
Process - a package of inputs, tools and outputs, there are 47 processes defined by
PMI
Phases - a group of logically related activities, produces one or more deliverables at the
end of the phase (maybe with exit gate/kill point [probably in a sequential relationship])
Phase-to-Phase relationship: sequential -> finish-to-start; overlapping -> for schedule
compression (fast tracking); parallel
Project - a temporary endeavor to create a unique product, service or result (or
enhancement of existing services/products (e.g v.2 development is a project) ) as
opposed to operation, may hand over the product to operation teams
Operation manages process in transforming resources into output
projects have more risks and uncertainties than operations and require more planning
Program - a group of coordinated projects, taking operations into account, maybe with
common goals, achieving benefits not realized by running projects individually, if only
the client/technologies/resource are the same, then the projects should be managed
individually instead of a program
Portfolio - group of programs/projects to achieve organizational strategic goals within
the organization/operation management, all investments of the organization, maximize
the value by examining the components of the portfolio and exclude non-optimal
components
Why projects: market demand, organizational need, customer request, technological
advance, legal requirements, to support organization strategic plan -> projects bring
values
Business Value is the total values (tangible and intangible) of the organization
Organization Strategy may be expressed through mission and vision
Use of portfolio/program/project management to bridge the gap between organization
strategy and business value realization
Progressive Elaboration (rolling wave planning is one of the methods used in
activity planning) - analysis and estimation can be more accurate and elaborated as the
project goes (usually in phased projects) such that detailed planning can be made at
that point
Project Management
Project Management - the application of (appropriate) knowledge, skills, tools &
techniques to project activities to meet the project requirements and achieve customer
satisfactions
The most important task is to align stakeholder expectations with the project
requirements, around 90% of the PM's work is related to communication with
stakeholders
PMBOK Guide is a framework/standard but not methodology (agile, scrum, PRINCE3,
etc.)
should be aligned with organization governance (through EEF and OPA)
Competing constraints: time, cost, scope, quality, risk, resources
Project Management Office (PMO) - standardizes governance, provides training,
shares tools, templates, resources, etc. across all projects/programs/portfolios
3 forms: supportive, controlling and directing (lead the project as PM)
functions: training, resource coordination, methodology, document repository, project
management oversight, standards, career management of PMs
may function as a stakeholder / key decision maker (e.g. to terminate the projects)
align portfolios/programs/projects with business objectives and measurement systems
control shared resources / interdependence across projects at the enterprise level
play a decisive role in project governance
Organizational Project Management (OPM)
strategy execution framework utilizing portfolios, programs and projects and
organizational enabling practices (technology, culture, etc.) for achieving organizational
objectives
linking management principles with strategy, advance capabilities
Management by Objectives (MBO) : is a process of defining objectives within an
organization so that management and employees agree to the objectives and
understand what they need to do in the organization in order to achieve them.
Organizational Project Management Maturity Model (OPM3) : provides a method for
organizations to understand their Organizational Project Management processes and
measure their capabilities in preparation for improvement.
Project Manager
Project Manager: knowledge, performance, personal - general (organization, planning,
meeting, control) management, interpersonal (communication, leadership, motivation,
influence, negotiation, trust building, political and cultural awareness) skills
leader of the project irrespective of the authority
should consider every processes to determine if they are needed for individual projects
may report to the functional manager, program manager, PMO manager, operation
manager, senior management, etc., maybe part-time or devoted
identifies and documents conflicts of project objectives with organization strategy as
early as possible
skills: leadership, team building, motivation, influencing, coaching, trust building,
communication, political awareness, cultural awareness, decision making, conflict
management, negotiation
PM must balance the constraints and tradeoffs, effectively communicate the info
(including bad news) to the sponsor for informed decisions
PM need to involve project team members in the planning process
Project Team includes PM, project management staff, project staff, PMO, SME (subject
matter experts can be outsourced), customer representative (with authority), sellers,
business partners, etc., maybe virtual or collocated
Senior management must be consulted for changes to high-level constraints
Organization Types
Organization Types: Projectized (project manager has the ultimate authority over the
project, team members are often collocated), Matrix (Strong, Balanced, Week),
Functional
Composite - a combination of different types, depending on the actual need
Tight Matrix = co-location, nothing to do with the organization type (not necessarily a
matrix org.)
Functional organizations => the project manager has little authority, often called project
expeditor (no authority) or coordinator (little authority), project coordination among
functional managers
Matrix organization => multiple bosses and more complex
Project Based Organization (PBO) - conduct the majority of their activities as projects
and/or privilege project over functional approaches, they can include: departments with
functional organizations; matrix organizations; projectized organizations and other forms
of organizations that privilege a project approach for conducting their activities, success
is measured by final results rather than position/politics
Project Lifecycle vs Project Management Lifecycle vs Product Lifecycle
Project Lifecycle: initiating, planning and organizing, carrying out/executing work,
closing the project
Predictive [plan driven/waterfall] - scope, time and cost determined early in the
lifecycle, may also employ rolling wave planning
Iterative [incremental] - repeat the phases as understanding of the project increases
until the exit criteria are met, similar to the rolling wave planning, high-level objectives,
either sequential / overlapping phases, scope/time/resources for each phase may be
different
Adaptive [change driven/agile] - for projects with high levels of change, risk and/or
uncertainty, each iterative is very short (2-4 weeks), work is decomposed into product
backlog, each with a production-level product, scrum is one of the most effective agile
methods, stakeholders are involved throughout the process, time and resources are
fixed, allow low change cost/keep stakeholder influence high
each project phase within the product lifecycle may include all the five project
management process groups
product lifecycle: development > production > adoption & growth > maturity > decline
> end of life
Important Terms
Organization Process Assets is a major input in all planning process, which may be
kept at PMO, directly related to project management, including Processess and
Procedures (including templates (e.g. WBS, schedule network diagrams, etc.),
procedures for issuing work authorizations, guidelines, performance measurements)
and Corporate Knowledge Base
The Configuration Management Knowledge Bases contain baselines of all
organization standards
Lessons Learned - focus on the deviances from plan (baseline) to actual results
Enterprise Environment Factors (often are constraints) are influences not in the
immediate control of the project team that affect the project, intra-organization and
extra-organization, e.g. organizational culture, organization structure
(functional/matrix/projectized structure), existing human resources, work authorization
system, PMIS
The work authorization system (WAS) is a system used during project integration
management to ensure that work gets done at the right time and in the right sequence
EEF are inputs for all initiating, most planning process, not much in the
executing/controlling process, none in closing process
Organization culture: process-oriented/results-oriented, job-oriented/employee-oriented,
professional-oriented/parochial-oriented, open system/closed system, tight control/loose
control, pragmatic/normative
Project Governance - for the whole project lifecycle, fits in the organization's
governance model, define responsibilities and accountabilities, controlling the project
and making decisions for success, alignment of project with stakeholders'
needs/objectives, provides a framework for PM and sponsors to make decisions to
satisfy both parties, should be described in the PM plan
Analytical Techniques: used to find the root cause or to forecast
PMIS includes configuration system and change control system
Never accept a change request to trim down one element of the triple constraint without
changing the rest.
Sponsor - provides resources/support to project, lead the process through initiation
(charter/scope statement) through formally authorized, later involved in authorizing
scope/budget change/review
Customer - NOT necessarily provide the financial resources, maybe external to the
organization, final acceptance of the product
Business Partners - certification body, training, support, etc.
Organizational Groups - internal stakeholders
Business Case : background, analysis of the business situation, costs and benefits
(cost-benefit analysis), to help in selection of project created by the initiator
Project Statement of Work (SOW) : describes the business need, high level scope of
deliverables and strategic plan of the organization, created by the
sponsor/initiator/buyer
Project Charter : formally authorizes the project, includes all those from above plus
approval criteria, preliminary budget, primary stakeholders, the name of PM,
assumptions and decisions etc., usually created by PM (in develop project charter
process) and signed by the sponsor, remains fairly the same during project lifecycle,
except big changes like sponsor has resigned [the current sponsor should initiate the
change to the charter before he leaves]
Project Charter is not a contract
Project Management Plan : how the project will be performed and managed -
documents assumptions & decisions, helps communication between stakeholders,
goals, costs & time scheduling (milestones), project management system and
subsidiary management plans and documents
Project Management Plan is NOT a project schedule
Project Management System: includes a list of project management processes, level of
implementation (what actions to take in the management processes), description of
tools and techniques, resources, procedures, change control system [forms with
tracking systems, approval levels]
Requirement Traceability Matrix (RTM) - a matrix connecting deliverables to
requirements and their sources (for managing scope)
Work Breakdown Structure (WBS) - a hierarchal chart of decomposing deliverables
into work packages
Activity List - a full list of all activities with indication of relationship to the work
packages
Activity Attributes - further information (duration, start date, end date, etc.) of all the
activities in the list (for scheduling)
Roles and Responsibilities (RAR) - a document listing all the roles and description of
their responsibilities in the project (often by category)
Responsibility Assignment Matrix (RAM) - a matrix connecting people to work
packages/activities, e.g. the RACI matrix (responsible, accountable, consult, inform),
usually only one person is accountable for each activity
Resources Breakdown Structure (RBS) - a hierarchical chart listing all the resources
by categories, e.g. marketing, design, etc.
Risk Breakdown Structure (RBS) - a hierarchical chart listing all risks by categories
Project Information
Work Performance Data - raw data collected
Work Performance Info - analyzed in context and integrated data, e.g. some
forecasts
Work Performance Reports - work performance information compiled in report
format
Sunk costs - money already spent, not to be considered whether to terminate a
project, similar to committed cost (often through contracts)
Direct costs, indirect (shared) costs, Fixed costs, Variable costs
Law of diminishing returns - beyond a point, the more input, the less return
Working capital - assets minus liability, what the company has to invest in the projects
Payback period - a time to earn back capital investment
Benefit-cost ratio (BCR) - an indicator, used in the formal discipline of cost-benefit
analysis, that attempts to summarize the overall value for money of a project
Depreciation - straight-line depreciation vs accelerated depreciation (the amount of
depreciation taken each year is higher during the earlier years of an assets life)
Under double declining balance, the asset is depreciated twice as fast as under straight line. Using the example
above, 10% of the cost is depreciated each year using straight line. Doubling the rate would mean that 20% would
be depreciated each year, so the asset would be fully depreciated in 5 years, rather than 10.
Under sum-of-the-years-digits, the asset is depreciated faster than straight line but not as fast as declining
balance. As an example of how this method works, let's say an asset's useful life is 5 years. Adding up the digits
would be 5+4+3+2+1 or a total of 15. The first year, 5/15 is expensed; the next year 4/15 is expensed, and so on.
So if the asset's cost is $1000, 5/15, or $333.34 would be expensed the first year, $266.67 the second year, and
so on.
Economic value added - the value of the project brought minus the cost of project
(including opportunity costs) e.g. for a project cost of $100, the estimated return for 1st
year is $5, assuming the same money can be invested to gain 8% per year, then the
EVA is $5 - $100 * 8% = -$3
Net present value (NPV) - the sum of the present values (PVs) of the individual cash
flows of the same entity
Present value (PV) - or called present discounted value, is a future amount of money
that has been discounted to reflect its current value, as if it existed today (i.e. with
inflation, etc.)
Future value (FV) - is the value of an asset at a specific date
Internal Rate of Return (IRR) - The inherent discount rate or investment yield rate
produced by the project's deliverables over a pre-defined period of time.
Forecast (future) vs Status Report (current status) vs Progress Report (what have
been done/delivered)
Journey to Abilene (Abilene's Paradox) - committee decisions can have a paradox
outcome, the joint decision is not welcome by either party (because of fear of raising
objections)
when something unusual happens, always refer to the PM Plan/Charter for instruction
on how to proceed; if not found, ask for direction from the management
unresolved issues will lead to conflicts
02 - 03. Project Management Processes and
Knowledge Areas
The Project Management Process Groups (IPECC)
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing
Planning and Executing are iterative. Monitoring and Controlling is exercised over Planning
and Executing.
A phase is not a process group. The 5 processes can happen in 1 phase.
The process groups is not in sequence
The PM should tailor the choices of processes to fit in individual processes (tailoring)
deliverables are often incremental in nature
Initiating
align project purposes with stakeholders' expectations
assign a project manager
identify stakeholders and develop project charter
document business case (created by initiator, maybe well before the initiating process
group) and cost-benfit analysis, identify high-level risks, identify project selection criteria
early in the process, the staffing, costs and chance of success are low, risk and
stakeholder influence are high
may be performed at portfolio/program level (i.e. outside the project's level of control)
Planning
create Project Management Plan [why the project? what to deliver? who do what?
when accepted? how executed?], subsidiary documents (schedule baseline, cost
baseline, performance management baseline, scope baseline (scope statement,
WBS, WBS dictionary) and subsidiary management plans (scope, schedule, budget,
quality, human resources [roles & responsibility, organization chart and staffing
management plan include the staff need, rewards, safety and training need] ,
stakeholder, requirements, process improvement, communication, change, risk and
procurement) - all are not finalized until a thorough risk management has been
performed, need to be approved before work begins
all plan and documents can be formal or informal, generalized or detailed, depending
on needs
Project Management Plan maybe continually updated during the project with rolling
wave planning / progressive elaboration
obtain approval of plan from designated stakeholders, changes to the project
management plan and subsidiary documents/plans need formal procedures described
in the change control system
hold kick-off meeting
planning process group is MOST important, with over 1/2 of all the 47 process in this
group
may need re-planning when significant changes to the baseline is observed in the
executing/monitoring processes
Executing
to satisfy project specifications
coordinating human/infrastructure resources in accordance with the project
management plan
updates and re-baselining the project management plan and subsidiary management
plans
normal execution, manage contracts, acquire, develop & manager project team,
perform quality assurance and manage stakeholder expectation/communication
direct and manage project work
continuous improvement process (quality assurance)
use up the largest share of resources
Monitoring and Controlling
measure performance, address change requests, recommend corrective/preventive
measures and rectify defects
usually performed at regular intervals
control the quality, inspection and reporting, problem solving, identify new risks
reassess control process
should there be any internal deviance from the stated plan, the PM should make
correction (use contingency reserve if necessary)
monitor and control project work and integrate change control
make sure only approved changes (through integrated change control) are incorporated
Closing
either project finished or cancelled
final product verification, contract closure, produce final report (closeout
documentation), obtain formal acceptance, archive, release resources, close project
feedback, review and lessons learned (about the process), transition of deliverables to
operation
procurement closure and administrative closure
Product-oriented Processes
initiating
planning and organizing
executing
closing
PMI Knowledge Areas
- complete set of concepts that made up a professional field/specilization
1. Project Integration Management - assemble and combine all parts into a coherent
whole
7. Project Communications Management
Interaction Between Process Groups
04. Project Integration Management
integration management is needed when processes interacts
to identify,combine, unify and coordinate various processes/activities and manage the
interdependencies
communication is most important
a PM Plan not meeting requirements is a defect
Develop Project
Charter
Project SOW
Business Case
Agreements
Enterprise
Environmental Factors
Organization Process
Assets
Expert
Judgements
Facilitation
Techniques
Project Charter
Develop Project
Management
Plan
Project Charter
Outputs from Planning
Processes
Enterprise Environment
Factors
Assets
Expert
Judgements
Facilitation
Techniques
Project Management Plan
Direct and
Manage
Project Work
Project Management
Plan
Approved Change
Requests
Factors
Assets
Expert
Judgements
PMIS
Meetings
Deliverables
Work Performance Data
Change Requests
PM Plan Updates
Project Document Updates
Monitor and
Control
Project Work
Project Management
Plan
Schedule Forecasts
Cost Forecasts
Validated Changes
Expert
Judgements
Analytical
Techniques
PMIS
Work Performance Reports
Change Requests
PM Plan Updates
Work Performance Info
Factors
Assets
Meetings
Perform
Integrated
Change Control
Project Management
Plan
Work Performance
Reports
Change Requests
Factors
Assets
Expert
Judgements
Meetings
Change Control
Tools
Approved Change Requests
Change Log
PM Plan Updates
Close Project or
Phase
Project Management
Plan
Accepted Deliverables
Assets
Expert
Judgements
Analytical
Techniques
Meetings
Final Product/Service/Result
Transition
Organization Process Assets
Update
Develop Project Charter
formally authorize the project and allow the PM to apply organizational resources
well-defined project start and project boundaries
project charter is a several page document including high level information of the
project: project background, business case, goals (S.M.A.R.T. specific, measurable,
attainable, realistic, time-bound), who is and the authority of the project manager, budget,
risk, stakeholders, deliverables, approval criteria, etc.
can link the project to other works in the organization through portfolio/program
management
signed off by the sponsor (the one who supply the money/resources)
agreements: either a contract (for external parties), letter of intent, service level
agreement, etc. (can be legally binding or NOT)
a charter is NOT a contract because there is no consideration
PMO may provide the expert judgement
Facilitation techniques includes brainstorming, conflict resolution, problem solving,
meeting, etc.
Develop Project Management Plan
the project management plan is a formal written document on how the project is
executed, monitored and closed, including all subsidiary management plans (scope,
requirements, change, configuration, schedule, cost, quality, process improvement,
human resource, communication, risk, procurement) and documents (cost baseline,
schedule baseline, scope baseline, performance measurement baseline, cost estimate,
schedule, responsibility for each deliverable, staff requirements) and some additional
documents/plans (selected PM processes and level of implementation)
the contents to be tailored by the PM (tailoring) to suit each project
created by PM, signed off by destined KEY stakeholders (e.g. project sponsor, project
team, project manager)
may be progressively elaborated in iterative phases (outputs from other processes), this
must be the final process/iteration to consolidate the PM Plan
when the project management plan is baselined (i.e. validated and then signed off by
key stakeholders), it is subject to formal change control and is used as a basis for
comparison to the actual plan
after baselining, the senior management must be consulted if these high level
constraints are to be altered (whether to use the management reserves)
can be re-baselined if significant changes are seen (scope change, internal
changes/variances (for the project execution), external factors) <- needed to be approved
by sponsors/stakeholders/senior management, must understand the underlying reasons
first (built-in costs is not usually a legitimate reason)
cost baseline (specific time-phased budget), schedule baseline (-> knows when to
spend money), scope baseline (includes scope statement, WBS, WBS dictionary):
whether preventive/corrective/defect repair actions are needed
the performance measurement baseline (PMB) is an approved scope-schedule-cost
plan for the project work (to use in earned value management), it includes
contingency reserve but excludes management reserves
configuration management (works with change control management plan), document
all change versions of project deliverables and completed project components, PMIS
includes: Configuration Management System (contains the updated deliverable/project
specifications and processes) and Change Control System (contains formal documents
for tracking changes)
configuration management system contains the most updated version of project
documents
other project documents NOT included in the project management plan:
Kick-off Meeting: at beginning of the project/phase, participants including project
team+stakeholders, element including project review, responsibility assignment matrix,
participation of stakeholders, escalation path, frequency of meetings
Microsoft Project is considered by PMI as close to a bar chart, not an PMIS
Direct and Manage Project Work
create project deliverables, acquire/assign/train staff, manage vendors, collect data for
reports, document lessons learned
implement approved process improvement plans and changes, change requests include
corrective actions, preventive actions, defect repair and updates (all considered to be
change requests)
if the PM discovers a defect, he/she should instruct the team to make defect repair during
this process (need change request but may be approved by the PM only (if stipulated in
PM Plan for minor change))
approved change requests - approved in the perform integrated change control, may
include preventive, corrective and defect repair actions
change requests may arise as a result of implementing approved change requests
PM should be of service to the team, not a boss
a work authorization system (part of EEF) defines approval levels needed to issue
work authorization (to allocate the work) and is used to prevent scope creep as formal
approval must be sought before work begins
Stakeholder risk tolerance is part of EEF
Face-to-face meeting is considered to be most effective
The PM Plan can be considered as a deliverable
most of the time of project spends here
Monitor and Control Project Work
validated changes - actions taken as a result of the approved change requests are
validated against the original change requests, to ensure correct implementation
corrective and preventive actions usually don't affect the baseline, only affect the
performance against the baseline
defect repair: considered as rework, deliverable not accepted, either rework or scrap,
strongly advise defect prevention to defect repair
the work performance info is fed from all other control processes (e.g. control schedule,
control stakeholder engagement, control communications, control costs, control quality,
etc.)
variance analysis is NOT a forecast method
Perform Integrated Change Control
the PM should influence the factors that cause project change
changes arises as a result of: missed requirements, views of stakeholders, poorly
designed WBS, misunderstanding, inadequate risk assessment
all the process is documented in the change log
tracked using a change management system, also affect configuration management
system
configuration control: changes to deliverables and processes
change control: identify/document/approve changes
configuration management activities: configuration identification, configuration status
accounting, configuration verification / audit to ensure the latest configuration is adopted
and delivered
for a change request: 1) identify need, 2) assess the impact, response and alternatives,
3) create CR, 4) Meet with stakeholders, 5) obtain approval from CCB (change control
board) or PM as defined in roles and responsibility document/PM Plan, 6) request more
funding if needed
customers/sponsors may need to approve certain decisions by CCB (if they are not part
of CCB)
communicate the resolutions (approve or reject) to change requests to stakeholders
Burnup chart vs Burndown chart
Close Project or Phase
ensure all procurements are closed (in the Close Procurements Process) before formal
closure of the project/phase
create the project closure documents
formal sign off by designated stakeholders/customer
obtain formal approval to close out the project/phase (administrative closure)
obtain approval and deliver the deliverables (maybe with training)
finish and archive documentations, lessons learnt and update to organizational process
asset
if the contract comes with a warranty, make sure that changes during the project are
evaluated against the origin clauses, ensure alignment of the warranty and changes
to close a project as neatly and permanently possible
for multi-phase projects, this process will be performed once for every phase end and
once for the whole project (5 times for project with 4 phases)
litigation can be further pursued after the closure
ensure the inclusion of all and only the work required to complete the project
successfully
Product Scope - requirements needed to be fulfilled to create the product, assessed
against the product requirements and WBS
Project Scope - activities and processes needed to be performed to deliver the
product scope, assessed against the scope baseline (scope statement, WBS and WBS
dictionary), e.g. including testing & quality assurance, assessed against the PM plan
scope management to prevent scope creep (additional requirements added without
any proper control)
The completion of project scope is measured against the project management plan
whereas the completion of product scope is measured against the product
requirements/WBS
gold plating - additional requirements initiated by the team members to exceed
expectation, considered a subset of scope creep
Scope Baseline: scope statement + WBS + WBS dictionary
WBS includes only the deliverables/outcomes/results (not actions)
Plan Scope
Management
Project Management
Plan
Project Charter
Enterprise
Environment Factors
Assets
Expert Judgements
Meetings
Scope Management Plan
Requirements
Management Plan
Collect
Requirements
Scope Management
Plan
Requirements
Management Plan
Stakeholder
Interviews
Focus Groups
Facilitated Workshops
Group Creativity
Techniques
Requirements
Documentation
Requirements
Traceability Matrix
Management Plan
Stakeholder
Register
Project Charter
Group Decision-making
Techniques
Questionnaire and
Surveys
Observations
Prototypes
Benchmarking
Context Diagram
Document Analysis
Define Scope Scope Management
Plan
Project Charter
Requirements
Documentation
Assets
Expert Judgements
Product Analysis
Alternatives
Identification
Facilitated Workshops
Project Scope
Statement
Project Document
Updates
Create WBS Scope Management
Plan
Project Scope
Statement
Requirements
Documentation
Enterprise
Environment Factors
Assets
Decomposition
Expert Judgements
Scope Baseline
Project Document
Updates
Validate Scope Project Management
Plan
Requirements
Documentation
Requirements
Traceability Matrix
Verified Deliverables
Work Performance
Data
Inspection
Group Decision Making
Techniques
Accepted Deliverables
Change Requests
Project Document
Updates
Control Scope Project Management
Plan
Requirements
Documentation
Requirements
Traceability Matrix
Work Performance
Data
Assets
Variance Analysis Work Performance Info
Change Requests
Project Management
Plan Updates
Project Document
Updates
Assets Updates
Plan Scope Management
Scope Management Plan: how the scope will be defined, validated and controlled
including how to prevent scope creep, how to handle change requests, escalation
path for disagreement on scope elements between stakeholders, process for creating
scope statement, WBS, processing CR, how the deliverables will be accepted
Requirements Management Plan: how the requirements will be managed, documented
and analyzed,
including how to process requirements, address missed requirements, configuration
management, prioritize requirements, metrics (and rationale) for defining the product,
define the traceability structure (in RTM), authorization level for approving new
requirements
important: primary means to understand and manage stakeholder expectations
Collect Requirements
Requirement: a condition/capability that must be met /possessed by a deliverable to
satisfy a contract/standard/etc., including quantified/documented needs, wants,
expectation of the sponsor/stakeholder/customer
Business requirements - support business objectives of the company
Stakeholder requirements
Solution requirements - functional (product behavior) and nonfunctional
requirements (reliability, security, performance, safety, etc.)
Transitional requirements : temporary capability including data
conversion/tracking/training
Project requirements : actions/processes/conditions the project needs to met
Quality requirements : quality criteria defined by stakeholders
Requirements Collection Tools
interviewing (expert interviewing)
focus groups (with SME and pre-qualified stakeholders)
facilitated workshops (QFD (Quality Function Deployment) - capture VOC voice of
customer, translate customer needs into requirements; JAD (Joint Application Design) -
facilitated workshop for IT and knowledge workers)
questionnaires and surveys
observation (shadowing or Gemba)
prototypes
context diagrams (diagrams showing input/source and output, to show how people
interact with the system)
document analysis
Product analysis includes techniques such as product breakdown, systems analysis,
requirements analysis, systems engineering, value engineering, and value analysis
Group Creativity Techniques: brainstorming, nominal group technique (to rank
brainstormed ideas by voting anonymously), mind-mapping, affinity diagram (KJ
method - group ideas into larger categories based on their similarity and give titles to
each group), Delphi technique (for experts with widely varying opinions, all participants
are anonymous, evaluation of ideas funneled by a facilitator), Multi-criteria Decision
Analysis (with a decision matrix)
Group Decisions-making Techniques: Analytic Hierarchy Process (AHP, for
complex decisions, give different weighs to factors to build an hierarchy), Voting
(unanimous, majority >50%, plurality, dictatorship)
Requirements Traceability Matrix tracks requirements from origins to deliverables,
including source of requirements and completion status, effective to prevent gold plating
(also work with work authorization system)
requirement documentation needs to be unambiguous, traceable, compete,
consistent and acceptable to key stakeholders and is approved by the customer and
other stakeholders
Define Scope
project & product scope, outlines what will be and what will NOT be included in the
deliverables, including details of risks, constraints and assumptions
vs project charter which includes high-level descriptions
provides alternatives if the budget and schedule could not meet management's
expectations
value engineering is a part of the product analysis technique (Value Engineering
(value analysis, value management, value methodology) - finding alternatives to
constraints to improve product/reduce cost without sacrificing the scope)
project scope statement includes objectives, (project and product) scope,
requirements, boundaries, deliverables, acceptance criteria, constraints,
assumptions, milestones, cost estimation, specifications, configuration management
requirements, approval requirements, etc.
The scope statement is progressively elaborated
Create WBS
the WBS must be created (if take on a running project without WBS, stop the project
and prepare the WBS first)
WBS is a structured hierarchy created by the organization/stakeholders, can be in an
organization chart or table form, based on the project deliverables (not tasks
needed)
can be a template in OPA
a higher level above a work package is 'control account' (control point where scope,
cost and schedule are compared to earn value for performance measurement), a work
package can have only ONE control account
WBS includes 100% of scope (100% rule)
code of accounts: a numbering system to identify WBS components
chart of accounts: a list of all account names and numbers
1.1 for the 2nd level, 1.1.1 for the 3rd level
WBS is a decomposition tool to break down work into lowest level manageable (time
and cost can be estimated, work package can be assigned to a team member) work
packages, e.g. by phase or major deliverables
different work packages can be at different levels of decompositions
WBS does not show dependencies between work packages, but a WBS dictionary does
(WBS dictionary clarifies WBS by adding additional information)
the major deliverables should always be defined in terms of how the project will actually
be organized, for a project with phases, the decomposition should begin with the phase
first
scope baseline, an output from Create WBS, is created by the project team
the work packages are broken down enough to delegate to a staff, usu. 8 - 80 hours
work
Validate Scope
gain formal acceptance of deliverables from customer/stakeholders (e.g. obtain
customer sign off, requirements validations, etc.) near the end of project/phase/each
deliverable, e.g. user acceptance test
work performance data tells how the deliverables were created, work performance
data includes non-conformance and compliance data
change requests may be an output
if no formal sign off is received as stipulated, follow the pre-defined process in PM plan,
e.g. escalation to management
often preceded by Control Quality Process to give the verified deliverable as input to
this process, verified deliverables is fed from the control quality process
this process, verified deliverables is fed from the control quality process
vs Control Quality: the process of monitoring/recording results of executing quality
activities to assess performance and recommend necessary changes, e.g. unit testing -
> high quality vs low quality
need to perform even in case of early termination/cancellation of the project to save
any usable deliverables for other projects
Control Scope
assessing additional requirements by the customer or proactively overlooking the
project scope
measure the work product against the scope baseline to ensure the project stays on
track proactively, may need preventive, corrective actions or defect repair
to prevent unnecessary changes (either internally or externally requested) to the
project
a documented and enforced change control process
the customer has the ultimate authority to change scope while the senior management
can make use of management reserves
variance analysis - method to compare planned (baseline) and actual work and
determine the causes/actions e.g. update baseline (keep the variance) or
preventive/corrective actions, both need CR
work performance info - scope variance, causes, recommended action
may update the inputs - requirements documentation & requirement traceability matrix
& lessons learnt in OPA
in general, disagreement should be resolved in favor of the customer
Plan Schedule
Management
Project Management
Plan
Project Charter
Factors
Assets
Expert Judgement
Analytical Techniques
Meetings
Schedule Management
Plan
Define Activities Schedule Management
Plan
Scope Baseline
Factors
Assets
Expert Judgement
Decomposition
Rolling Wave Planning
Activity List
Activity Attributes
Milestone List
Sequence
Activities
Schedule Management
Plan
Activity List
Activity Attributes
Milestone List
Project Scope
Statement
Factors
Assets
PDM
Dependency
Determination
Applying Leads and Lags
Project Schedule
Network Diagram
Project Document
Updates
Estimate Activity
Resources
Schedule Management
Plan
Expert Judgement
Alternatives Analysis
Activity Resource
Requirements
Activity List
Activity Attributes
Resource Calendars
Activity Cost Estimates
Risk Register
Factors
Assets
Published Estimating
Data
Bottom-up Estimating
PM Software
Resource Breakdown
Structure
Project Document
Updates
Estimate Activity
Durations
Schedule Management
Plan
Activity List
Activity Attributes
Activity Resource
Requirements
Resource Breakdown
Structure
Resource Calendars
Project Scope
Statement
Risk Register
Factors
Assets
Expert Judgement
Analogous Estimating
Parametric Estimating
Three Point Estimates
Technique
Reserve Analysis
Activity Duration
Estimates
Project Document
Updates
Develop Schedule Schedule Management
Plan
Activity List
Activity Attributes
Activity Resource
Requirements
Activity Duration
Estimates
Project Schedule
Network Diagram
Resource Breakdown
Structure
Resource Calendars
Project Scope Statement
Risk Register
Project Staff
Assignments
Factors
Assets
Schedule Network
Analysis
Critical Path Method
Critical Chain Method
Resource Optimization
Techniques
Modeling Techniques
Leads and Lags
Schedule Compression
Scheduling Tools
Schedule Baseline
Project Schedule
Schedule Data
Project Calendars
PM Plan Updates
Control Schedule Project Management
Plan
Project Schedule
Work Performance
Data
Project Calendars
Schedule Data
Assets
Performance Reviews
Project Management
Software
Resource Optimization
Technique
Modeling Techniques
Leads and Lags
Schedule Compression
Scheduling Tools
Schedule Forecasts
Change Requests
PM Plan Update
Project Document
Update
Assets Update
Plan Schedule Management
define policies, procedures and documentation for managing and controlling project schedule
including scheduling methodology, tools, level of accuracy, control thresholds (limit beyond
which preventive/corrective actions needed), rules of performance measurement (e.g. earned
value)
lead and lags are NOT schedule constraints
Define Activities
the scope baseline is used here as it represents the approved (stable) scope
further decompose work packages into activities for more detailed and accurate estimations
'activities' is the PMI terminology for 'tasks' and 'work efforts'
activity is more related to the actual work/process to produce the deliverables
activity types: level of efforts (support, measured in time period), discrete efforts or
apportioned effort (in direct proportion to another discrete effort)
activities have durations while milestones do not (zero duration)
Sequence Activities
WBS is no longer needed, so the Project Scope Statement is the input rather than scope
baseline
Precedence Diagramming Method (PDM) to diagram dependencies
Network Diagramming Tools are software tools that graphically represent activity sequences
network diagrams: shows dependencies, duration, workflow, helps identifying critical paths
precedence relationships (also known as 'activity on node (AON)' approach): finish-to-
start (~95%), start-to-start, finish-to-finish, start-to-finish (least)
Activity on Arrow (AOA) or Arrow Diagramming Method (ADM) activities are represented
as arrows, dashed arrows represent dummy activities (duration: 0) that shows dependencies
Graphical Evaluation and Review Technique (GERT) allows for conditional branching and
loops
Network Dependency Types (to be determined during Sequence Activities Process):
Mandatory Dependency (hard logic): A must be completed before B begins/ technical
dependencies may not be hard
Discretionary Dependency (preferred, soft logic): sequence preferred by the organization,
may be removed should fast-tracking is required
External Dependency: dependency required by external organization
Internal Dependency: precedence relationship usually within the project team's control
Milestones: the completion of a key deliverable/a phase in the project, as
checkpoints/summary for progress, often used in funding vendor activities
Milestone list is part of i) project plan, ii) project scope statement, iii) WBS dictionary
Leads: begin successor activity before end of predecessor, for schedule compression (fast
tracking) (negative lags)
Lags: imposed delay to successor activity, e.g. wait 2 weeks for concrete to cure (FS +14
days)
Network Diagram Setup : 7-box method, usually using software tools or 5-box method
if the ES and LS are identical, the activity is on the critical path
Estimate Activity Resources
closely related to Estimate Cost Process (in Cost Management)
resource calendar spells out the availability of resources (internal/external) during the project
period
matches human resources to activities (as human resources will affect duration)
effort (man day, work week, etc.) vs duration vs time lapsed (total time needed, including
holidays, time off)
alternative analysis includes make-or-buy decisions, different tools, different skills, etc.
Activity Resource Requirements may include the basis of estimation
Estimate Activity Durations
consults SME (subject matter experts, i.e. the one carrying out the actual work) to come with
with the estimation, not on the PM's own
Analogous Estimating: based on previous activity with similar nature (a form of expert
judgement), used when little is known or very similar scope, works well when project is
small, NOT ACCURATE
Parametric Estimating: based on some parameters, e.g. the time for producing 1000
component based on that for 1 component * 1000, use an algorithm based on historical data,
accuracy depends on the parameters selected, can be used on [a portion of / the entire]
project
One-Point Estimating: based on expert judgement, but highly unreliable
Three-Point Estimating: best (optimistic), most likely (realistic), worst (pessimistic)
cases, Triangular Distribution vs PERT (Project Evaluation and Review Techniques, Beta
Distribution, weighted average using statistical methods [most likely * 4 - 95% confidence level
with 2 sigma]), triangular distribution (non-weighted average of three data points),
uncertainties are accounted for
In real world applications, the PERT estimate is processed using Monte Carlo analysis, tie
specific confidence factors to the PERT estimate
Bottom-Up Estimating: a detailed estimate by decomposing the tasks and derive the
estimates based on reliable historical values, most accurate but time-consuming
Heuristics: use rule of thumb for estimating
standard deviation (sigma value, deviation from mean, to specify the precision of
measurement): 1 sigma: 68%, 2 sigma 95%, 3 sigma 99.7%, 6 sigma 99.99%
accuracy is the conformance to target value
contingency reserve: for known unknowns, owned by PM, may be updated, part of schedule
baseline
management reserve: for unknown unknowns, owned by management, included in overall
schedule requirements
update to documents: basis of estimates, assumptions and contingencies
activity duration estimate may be in a range, don't include lags
Develop Schedule
the schedule baseline is the approved and signed version of project schedule that is
incorporated into the PM plan
the schedule is calendar-based taking into accounts holidays/resource availability/vacations
vs the time estimate (work effort/level of effort) just describes the man hours / man days
Slack/Float: activities that can be delayed without impacting the schedule
Free slack/float: time an activity can be delayed without delaying the Early Start of the
successor
Total slack/float: time an activity can be delayed from early start without delaying the project
end date (scheduling flexibility), can be negative, 0 (on the critical path) or positive
Project Float: without affecting another project
Negative float: problem with schedule, need schedule rework
Project slack/float: time the project can be delayed without delaying another project
Early Start (ES) - earliest time to start the activity
Late Start (LS) - latest time to start without impacting the late finish
Early Finish (EF) - earliest time to end the activity
Late Finish (LF) - latest time to finish without impacting successor activity
Slack/Float = LS - ES or LF - EF
The float is the highest single value along the critical path, NOT the sum of them
Critical Path: the longest path that amount to shortest possible completion time (usually zero
float, activities with mandatory dependency with finish-to-start relationship), can have more
than 1 critical paths (more risks), critical paths may change (keep an eye on near-critical
paths)
activities on the critical path are called critical activities
Path with negative float = behind schedule, need compression to eliminate negative float
Forward Pass : compute the early start
Backward Pass : compute the late start
Fast Tracking : allow overlapping of activities or activities in parallel, included risks/resource
overloading
Crashing : shorten the activities by adding resources, may result in team burnout
Scheduling Techniques
Critical Path Method (CPM) - compute the forward and backward pass to determine the
critical path and float
Critical Chain Method (CCM) - deal with scarce resources and uncertainties, keep the
resources levelly loaded by chaining all activities and grouping the contingency and put at the
end as project buffer, for activities running in parallel, the contingency is called feeding
buffer (expect 50% of activities to overrun)
Buffer is determined by assessing the amount of uncertainties, human factors, etc.
Parkinson's Law: Work expands so as to fill the time available for its completion.
Resource Optimization Techniques
Resource leveling is used to adjust the variation in resource loading to stabilize the number
of resources working each time and to avoid burnout, may need to extend the schedule in
CPM
Resource smoothing is to adjust resource requirements so as not to exceed predetermined
resource limits, but only optimized within the float boundaries
Modeling Techniques
What if analysis: to address feasibility/possibility of meeting project schedule, useful in
creating contingency plan
Monte Carlo: run thousand of times to obtain the distribution using a set of random variables
(stochastic variables), use a combination of PERT estimate and triangular distributions as
end point estimates to create the model to eliminate schedule risks, the graph is a 'S' curve
Network Diagram: bar charts with logical connections
Hammock activities: higher-level summary activities between milestones
Milestone Charts: show only major deliverables/events on the timeline
data date (status date, as-of date): the date on which the data is recorded
the Schedule Data includes schedule milestones, schedule activities, activities attributes, and
documentation of all assumptions and constraints, alternative schedules and scheduling of
contingency reserves
the Project Calendars identify working days
Control Schedule
measure result, make adjustments, adjust metrics
Performance Review includes: Trend Analysis, CPM, CCM, Earned Value Management
Change Requests generated are to be assessed in the Perform Integrated Control Process
sunk cost - cost already incurred in the past and cannot be recovered, do not consider
anymore
opportunity cost - difference in value between one path vs alternative (= 100% of value
of next best alternative)
value analysis/ engineering - cost reduction without affecting the scope
Benefit Cost Analysis (BCA) / Cost Benefit Analysis (CBA) - determine feasibility, bigger
benefit/cost ratio (BCR)
Payback Period - the length of time to recover the investment
Return on Investment (ROI) - the efficiency of investment = (Gain-Cost)/Cost
Time Value of Money - Present Value (PV) = value / (1+interest rate)*year, Future Value
(FV) = value * (1+interest rate)*year
Net Present Value (NPV) = PV of cash inflows - PV of cash outflows (cost)
funding for project: self-fund, funding with equity, funding with debts
discount rate - rate used to calculate present value of expected yearly benefits and
costs
Plan Cost
Management
Project Management
Plan
Project Charter
Factors
Assets
Expert Judgement
Meetings
Cost Management
Plan
Estimate
Costs
Cost Management Plan
Human Resource
Management Plan
Scope Baseline
Project Schedule
Risk Register
Factors
Expert Judgement
Analogous Estimating
Parametric Estimating
Three Point Estimates
Reserve Analysis
Cost of Quality
Project Management
Software
Activity Cost
Estimates
Basis of Estimates
Project Document
Updates
Assets
Vendor Bid Analysis
Techniques
Determine
Budget
Cost Management Plan
Scope Baseline
Activity Cost Estimates
Basis of Estimates
Project Schedule
Resource Calendars
Risk Register
Agreements
Assets
Cost Aggregation
Reserve Analysis
Historical Relationships
Funding Limit
Reconciliation
Expert Judgement
Cost Baseline
Project Funding
Requirements
Project Document
Updates
Control Costs Project Management
Plan
Project Funding
Requirements
Work Performance Data
Assets
Earned Value
Management
Forecasting
To Complete
Performance Index
(TCPI)
Performance Reviews
Project Management
Software
Reserve Analysis
Cost Forecasts
Change Requests
Assets Updates
PM Plan Updates
Project Document
Updates
Plan Cost Management
The Cost Management Plan establishes: i) level of accuracy and level of precision, ii)
unit of measurement, iii) WBS procedure links (to control account (CA)), iv) control
threshold, v) earned value rules of performance, reporting, funding and processes
Life cycle costing = total cost of ownership : production cost, running and
maintenance cost, etc.
Estimate Costs
similar to Estimate Activity Resources
look for ways to reduce cost
ensure the SME to deliver the estimates (more accurate)
based on WBS
Cost Types
Variable costs - costs change with the amount of work, e.g. hourly consultants
Fixed costs - costs that are constant, e.g. equipment leases
Direct costs - directly attributed to the project
Indirect costs - shared costs like AC, lighting, etc.
Cost Estimate Tools
Analogous Estimating (Top Down Estimate) - compare to a similar project in the past
(an estimating heuristic/rule of thumb)
Parametric Estimating - use a parameter and repetitive units of identical work
Bottom-up Estimating - detailed estimates of each individual activity from historical
data, more accurate and time-consuming
Activity Cost Estimates may include indirect cost and contingency reserves
usually in a range of values
Basis of Estimates - detailed analysis on how the cost estimate was derived
(assumptions, constraints, possible range (+/-15%), confidence level of final estimate)
Determine Budget
Budget is more about when to spend money
Historical Relationships - analogous/parametric estimation
Reserve Analysis - addresses Management Reserve (unknown unknowns) and
Contingency Reserve (known risks) [not included in calculation of earned value
managment]
Funding Limit Reconciliation - addresses variance between funding limit (e.g.
monthly or yearly limit) and planned expenditure, may require rescheduling of work to
level of the rate of expenditure
Value Engineering - to improve quality/shorten schedule without affecting the scope
Project Budget = Cost baseline (the approved time-phased budget) + Management
Reserve
when management reserve is used during project execution, the amount is added to
the cost baseline
S-curve : total project expenditure over project lifecycle
Control Costs
Check against the Project Funding Requirements
including informing stakeholders of all approved changes and their costs
Earned Value Calculation
Index > 1: under budget/ahead of schedule
Index < 1: over budget/behind schedule
Estimate at Complete: 1) new estimate required (original flawed), 2) no BAC variance,
3) CPI will continue, 4) sub-standard cost/schedule will continue
TCPI: >1 not enough funding remain (over budget), <1 more fund available than
needed (under budget)
Earned Value Accrual
Discrete Efforts - describes activities that can be planned/measured for output,
including Fixed Formula (activity given a % of budget of work package at start and
earn the remaining when completed, e.g. 50/50, 20/80 or 0/100), Weighted Milestone
(earn value for milestones of deliverables of the work package), Percentage Complete,
Physical Measurement
Apportioned Efforts - describes work that has a direct/supporting relationship to
discrete work, e.g. testing, pm activities, calculated as % of the discrete work
Level of Efforts (LOE) - describes activities without deliverables, e.g. troubleshooting,
assigned the earned value as scheduled, without schedule variance but may have
cost variance
e.g. perform Control Cost weekly during execution where money is spent fastest
Variance Analysis - to check against the baseline for any variance
SPI at end of project must be 1
SPI is NOT telling much information to whether the project is on schedule as the
Critical Path must also be investigated to get a meaningful picture
everyone in the organization is responsible for the quality (project team for destined parts
while PM for project quality), PM is ultimately responsible for the project quality
prevention over inspection
outliers are singular measurements outside the control limits
continuous improvement to ensure quality (quality assurance)
some costs of quality will be borne by the organization (organization quality policy, e.g. quality
audit, ISO accreditation)
Quality: the degree to which a set of inherent characteristics fulfills requirements, decrease
rework/costs, increase productivity/stakeholder satisfaction
under 'control': the process is predictable and repeatable
PM: perform continuous improvement activities (quality assurance), verify quality before
completion of deliverables (control quality)
Grade (fit for use or not) vs Quality (conformance to stated requirements)
Accuracy (correctness) vs Precision (consistence, how closely conforms to target, standard
deviation is a measure of precision, smaller standard deviation higher precision)
Quality Management Concepts
Crosby Zero Defects: identify processes to remove defects, quality is built in to the
processes
Juran Fitness for Use: does the product/service meet customer's need? i) Grade, ii) Quality
conformance, iii) Reliability/maintainability, iv) Safety, v) Actual Use
W. Edwards Deming: 85% of quality problem is managers' responsibility, develop "System
of Profound Knowledge" [system = components working together to achieve an aim] i)
Appreciation for system, ii) Knowledge about variation (special cause vs common cause) , iii)
Theory of Knowledge (built up by prediction/observation/adjustment) , iv) Psychology
Six Sigma: achieve 3.4/1 mil defect level (99.999%) using DMAIC (Define, Measure,
Analyze, Implement, Control) or [Design for Six Sigma] DMADV (Define, Measure, Analyze,
Design, Validate) approach, refine the process to get rid of human error and outside
influences with precise measurements, variations are random in nature
Just In Time: eliminate build up of inventory
Total Quality Management (TQM): ISO 8402 all members to center on quality to drive
customer satisfaction , refine the process of producing the product
Kaizen: implement consistent and incremental improvement, to reduce costs, cycle time,
drive customer satisfaction using PDCA (Plan Do Check Act)
The Plan-Do-Check-Act cycle is a way of making small improvements and testing their
impact before you make a change to the process as a whole. It comes from W. Edwards
Deming's work in process improvement, which popularized the cycle that was originally
invented by Walter Shewhart in the 1930s.
Capability Maturity Model Integration (CMMI): improve overall software quality (design,
development and deployment)
ISO9000: ensures the defined processes are performed in accordance to the plan
Quality Management processes are so focused on reviewing EVERY deliverable - not just
the final product, but all of the components, designs and specifications too.
Plan Quality
Management
Project Management
Plan
Stakeholder Register
Risk Register
Requirements
Documentation
Enterprise
Environment Factors
Assets
Cost-benefit Analysis
Cost of Quality
Seven Basic Quality
Tools
Benchmarking
Design of Experiments
Statistical Sampling
Additional Quality Planning
Tools
Meetings
Quality Management
Plan
Process Improvement
Plan
Quality Metrics
Quality Checklists
Project Document
Updates
Perform Quality
Assurance
Quality Management
Plan
Process
Improvement Plan
Quality Metrics
Quality Control
Measurements
Project Documents
Quality Management and
Control Tools
Quality Audits
Process Analysis
Change Requests
PM Plan Updates
Project Document
Updates
Assets Updates
Control Quality Quality Management
Plan
Quality Metrics
Quality Checklists
Work Performance
Data
Approved Change
Requests
Deliverables
Project Documents
Assets
Seven Basic Quality Tools
Statistical Sampling
Inspection
Approved Change
Requests Review
Verified Deliverables
Change Requests
Validated Change
Quality Control
Measurements
PM Plan Updates
Project Document
Updates
Assets Updates
Plan Quality Management
quality policy (either organizational or just for the project), methods and procedures to meet
the objectives and satisfy customer's needs
identify the quality requirements and document how to achieve
Cost-benefit Analysis: cost of implementing quality requirements against benefits
Cost of Quality: lowest quality cost is prevention, highest quality cost (poor quality) is
rework and defect repair (as high as 5000 times the cost for carrying out unit testing), lost
reputation and sales, failure cost may be internal/external (found by customer)
Warranty claims are external cost of quality
Cost of Quality is the total cost of quality efforts throughout the product's lifecycle
cost of conformance (prevention cost, appraisal cost) vs cost of non-conformance (failure cost
[internal/external])
internal/external is reference to the project (not the organization)
Poka Yoke (mistake proofing), Zero Quality Control (100% source inspection), Voice of
Customer and FEMA (Failure Modes of Effects Analysis) are planning tools for quality
management
Quality Metrics: function points, MTBF (mean time between failure), MTTR (mean time to
repair)
Marginal Analysis: ROI of quality measures
7 Basic Quality Tools
Cause-and-effect / Ishikawa / Fishbone Diagram: for identifying the cause
Flowchart: (e.g. SIPOC diagram) for identifying failing process steps and process
improvement opportunities
Check Sheets (tally sheets): collecting data/documenting steps for defeat analysis
Histograms: does not consider the influence of time on the variation that exits within a
distribution
Pareto Chart: based on 80/20 principle, a prioritization tool to identify critical issues in
descending order of frequency, sort of a histogram
Statistical Process Control (SPC) Chart: determine if a process is stable/predictable using
statistical sampling (assessed by accuracy[conformance] and precision[standard deviation]),
identity the internally computed control limits (UCL/LCL) and specification limits
(USL/LSL) by the customer/PM
run chart is similar to control chart, but without the control
usually +-3sigma i.e. a range of 6 sigma
a form of time series
if a process is within control limit but beyond specification limit, the process is experiencing
common cause variation (random) that cannot be corrected by the system, management
help is needed (special cause can be tackled but NOT common cause)
Stability Analysis / Zone Test: rule of seven (7 consecutive on either side of the mean = out
of control), rule of six (six consecutive with a trend = out of control), rule of ten (10 as a saw-
tooth pattern around the mean), rule of one (1 point beyond control limit) [signal in the
noise]
Scatter Diagram: for trending, a form of regression analysis
Benchmarking: compare to past activities/standard/competition
Design of Experiments (DOE): change several factors at a time for each experiment, to
determine testing approaches and their impact on cost of quality
Additional Quality Planning Tools
Loss Function: a financial measure of the user's dissatisfaction with product performance
Matrix Diagrams: House of Quality (HOQ) used in Quality Function Deployment (QFD)
(method to transform user demands [VOC] into design quality)
Kano Model: differentiate features as satisfy, delight or dissatisfy
Marginal Analysis: cost-benefits analysis
Force Field Analysis (FFA): reviews any proposed action with proactive and opposing forces
Process Improvement Plan: process boundaries, configuration, process metrics/efficiencies,
targets for improved performance
Quality Checklists: checklist to verify a series of steps have been performed
The goal is to refine the process so that human errors and outside influences no longer exist,
and any remaining variations are completely random
Perform Quality Assurance
in the Executing Process Group
ensures the quality standards are being followed, to ensure unfinished works would meet the
quality requirements
by quality assurance department or sponsor/customer not actively involved in the project
primarily concerned with overall process improvement for activities and processes (rather
than the deliverable)
utilize the data collected in Control Quality Process
Quality Management Tools
Affinity Diagrams: like a mind-mapping diagram, organize thoughts on how to solve
problems
Process Decision Program Charts (PDPC): defines a goal and the steps involved, useful
for contingency planning
Interrelationship Digraphs: maps cause-and-effect relationships for problems with multiple
variables/outcomes
Tree Diagrams
Prioritization Matrices: define issues and alternatives that need to be prioritized for decision,
items are given a priority score through brainstorming
Activity Network Diagrams
Matrix Diagrams: e.g. 'house of quality' in QFD
Kaizen, Kanben: quality assurance methods developed by Japanese
Quality Audit: to verify quality of processes, to seek improvement, identify best practices,
reduce overall cost of quality, confirm implementation of approved changes, need quality
documentations
Quality Review: to review the quality management plan
change requests are mostly procedural changes
Control Quality
verify the deliverables against customer's specifications to ensure customer satisfaction
validate the changes against the original approved change requests
conditional probability (events somewhat related) vs statistical independence (events not
interrelated) vs mutual exclusivity
statistical sampling for control quality
variable (continuous) data: measurements, can do maths on e.g. average
attribute (discrete) data: yes/no, no.123, just an identifier, can't do maths on
QC includes the PM process (lesson learnt, budget, scope)
tolerance (spec limits, deliverables acceptable) vs control limits (process acceptable)
if within control limit but outside tolerance: rework the process to give better precision
all control and execution processes may generate lesson learned
Sexism, racism or other discrimination should never be tolerated, no matter what the
circumstances. You must separate your team from discriminatory practices, even if
those practices are normal in the country where you're working.
Plan Human
Resource
Management
PM Plan
Activity Resource
Requirements
Enterprise
Environment Factors
Organization
Process Assets
Organization Charts and
Position Description
Networking
Organization Theory
Expert Judgement
Meetings
Human Resource
Management Plan
Acquire Project
Team
Human Resource
Management Plan
Enterprise
Environment Factors
Organization
Process Assets
Pre-assignment
Negotiation
Acquisition
Virtual Teams
Multi-criteria Decision
Analysis
Project Staff
Assignments
Resource Calendars
PM Plan Updates
Develop Project
Team
Human Resource
Management Plan
Project Staff
Assignments
Resource Calendars
Interpersonal Skills
Training
Team-building Activities
Ground Rules
Co-location
Recognition and
Rewards
Personnel Assessment
Tools
Team Performance
Assessment
EEF updates
Manage Project
Team
Human Resource
Management Plan
Project Staff
Assignments
Team Performance
Assessments
Issue Log
Work Performance
Reports
Organization
Process Assets
Observation and
Conversation
Project Performance
Appraisals
Conflict Managements
Change Requests
PM Plan Updates
Project Document
Updates
EEF Updates
OPA Updates
Plan Human Resource Management
plan to organize and lead the project team
include roles and responsibilities (identify resources that can take up the
responsibilities) as documented (ownership of deliverables) in RAM in the form of
RACI chart (matrix) or in a chart/text form, org charts - an organizational breakdown
structure (OBS) and staffing management plan - staff acquisition, release, resource
calendar, resource histogram, training, rewards, compliance & safety requirements
The OBS displays organizational relationships and then uses them for assigning
work to resources in a project (WBS)
networking is useful in understanding skills of individuals and the political and
interpersonal factors within the organization
org chart indicated the reporting structure of the project
Acquire Project Team
to acquire the final project team
pre-assignment is the selection of certain team members in advance
acquisition is to acquire resources from outside through hiring consultants or
subcontracting
includes bringing on contractors / consultants
halo effect: a cognitive bias (if he is good at one thing, he will be good at everything)
Multi-criteria Decision Analysis: to select team members based on a no. of factors:
availability, cost, experience, ability, knowledge, skills, attitude, etc.
training is usually paid for by the organization, not project
Develop Project Team
enhancing and improving overall team performance
offer feedback, support, engage team members, manage conflicts, facilitate cooperation
cross-train people
team performance assessments : assess team performance as a whole vs project
performance appraisals: individual performance
training cost can be set within the project budget or supported by the organization
PM Authority: legitimate (assigned in project charter), reward, penalty, expert (need to
be earned), referent (charisma and likable, or ally with people with higher power),
representative (elected as representative)
Expert > Reward are best forms of power. Penalty is worst.
Tuckman Model: Forming - Stroming - Norming - Performing - Adjourning
cultural difference should be considered when determining award and recognition
recognition should focus on win-win reward for the team (NOT competitive-based)
team building is important throughout the whole project period
Motivational Theories
Maslow's Hierarchy of Needs - personal needs (psychological > Security > Social >
Esteem > Self Actualization)
Herzberg's Hygiene Theory - satisfaction (motivators) vs dissatisfaction (hygiene
factors to avoid dissatisfaction but do not provide satisfaction, also called KITA factors
e.g. incentives/punishments), hygiene factors include good working conditions, a
satisfying personal life, and good relations with the boss and coworkers
Expectancy Theory - Expectancy (extra work will be rewarded) Instrumentality (good
results will be rewarded) Valence (the individual's expected reward), for a person to be
motivated, efforts/performance/outcome must be matched - will only work hard for
achievable goals
Achievement Theory - three motivation needs: achievement (nAch), power (nPow),
affiliation (nAff), best is a balanced style for the PM
Contingency Theory - task-oriented/relationship-oriented with stress level (high stress
-> task-oriented better)
Leadership Theory
including: analytical (with expertise), autocratic (with power), bureaucratic, charismatic,
consultative, driver (micromanagement), influencing, laissez-faire (stay out)
Theory X - assumes employees are lazy and avoid work, need incentive/threats/close
supervising
Theory Y - assumes employees may be ambitious and self-motivated, will perform
given the right conditions
Theory Z - (japanese) increasing loyalty by providing job for life with focus on well-being
of employee (on and off job), produces high productivity and morale
Situational Continuum Leadership - directing/telling > coaching/selling (manager
define the work) > supporting/participating (subordinate define the work) > delegating
according to maturity/capability of the subordinate
Manage Project Team
track team member performance, provide feedback, resolve issues
when managed properly, differences of opinion can lead to increased creativity and
better decision making
issue log is fed from Manage Stakeholder Engagement - used to understand who is
responsible for resolving specific issues
conflict management: conflicts force a search for alternatives, need openness, not
personal, focus on present and future
conflicts: schedule, project priority, resources, technical opinions, administrative
overhead (too much administration work), cost, personality
conflict resolution: collaborate/problem solve[confrontation of problem] (best),
compromise/reconcile (give-and-take, temporary/partially resolve), force/direct
(worst/short-lived), smooth/accommodate (emphasis common grounds and
avoid/touch lightly the disagreements for harmony/relationship), withdraw/avoid (other
leads to lose-lose)
compromise is lose-lose
Forcing would only provide a temporary solution
Award decisions are made during the process of project performance appraisals
monitoring and controlling is typically performed by functional managers/HR for
functional org
10. Project Communication Management
assure the timely collection, generation, distribution, storage, retrieval and ultimate
disposition of project information
very important to the ultimate success of the project
message transmission: 7% in word, 38% in vocal pitch, 55% in body language (Albert
Mehrabian)
don't wait to communication good/bad news
the sender has the responsibility to ensure the receiver correctly understand the
message
if part of the project is procured, more formal written communication will be expected
Plan
Communications
Management
PM Plan
Stakeholder
Register
Enterprise
Environment Factors
Organization
Process Assets
Communications
Requirements Analysis
Communications
Technology
Communication Models
Communication
Methods
Meetings
Communications
Management Plan
Project Document
Updates
Manage
Communications
Communications
Management Plan
Work Performance
Reports
Enterprise
Environment Factors
Organization
Process Assets
Communications
Technology
Communication Models
Communication
Methods
Information
Management System
Performance
Reporting
Project
Communications
PM Plan Updates
Project Document
Updates
OPA Updates
Control
Communications
PM Plan
Project
Information
Management System
Change Requests
Work Performance
Communications
Issue Log
Work Performance
Data
Organization
Process Assets
Expert Judgement
Meetings
Info
PM Plan Updates
Project Documents
Updates
OPA Updates
Plan Communications Management
identify the needs for stakeholder communication
the who, what, when (frequency), why, where and how of communications needs and
the persons responsible
time and budget for the resources, escalation path, flow charts, constraints, guideline
and templates
Communication Methods: interactive (multidirectional communication, most
effective), push (active, messages sent without validation of receipt), pull (passive,
access directly by stakeholders)
low context vs high context (japan, more polite)
may need to limit who can communicate with whom and who will receive what
information
(Shannon-Weaver model)Sender-Receiver Model: i) encoded idea, ii) message and
feedback, iii) medium, iv) noise level, v) the decoded idea. The sender to ensure info
is clear, complete and the recipient correct understands. The recipient to ensure
complete message is received (to acknowledge) and provide feedback/response.
Effective Listening: feedback, active listening and paralingual (voice expression,
nonverbal elements)
Communication channels: N (N -1) / 2 // N is the number of team members
meetings should facilitate problem solving
PM spends 90% of their time on COMMUNICATION activities, 50% of the time is spent
on communicating with the team
efficient communication: only the required messages
effective communication: right timing, right format, right medium
Manage Communications
create, collect, distribute, store, retrieve and dispose project information according to
the Communication Management Plan
ensures good communications, noises managed, stakeholders may feedback on how to
improve
Communication Barriers vs Communication Enhancers
55% message thru body language, 38% thru paralingual, 7% thru words used
Types of Communications: Formal Written, Formal Verbal, Information Written, Informal
Verbal
Performance Reporting: status, progress, variance, trend, earned value reports and
forecasts, summary of changes, risks and issues
PM Plan Update to show the latest performance (against Performance Measurement
Baseline)
Feedback from stakeholders are to be stored in OPA
Control Communications
to ensure optimal information flow for effective stakeholder expectation management
issue log is to document the issues and monitor its resolutions (with person
responsible)
risk identification, management and response strategy impacts every area of the project
management life cycle
everyone is responsible for identifying risks
risk has one or more causes and has one or more impacts
risk = uncertainty; risk management: increase the probability of project success by
minimizing/eliminating negative risks (threats) and increasing positive events
(opportunities)
risk attitudes (EEF): risk appetite (willingness to take risks for rewards), tolerance for
risk (risk tolerant or risk averse), risk threshold (level beyond which the org refuses to
tolerate risks and may change its response)
pure (insurable) risk vs business risk (can be +ve or -ve)
known risks that cannot be dealt with proactively (active acceptance) should be
assigned a contingency reserve or if the known risks cannot be analyzed, just wait for
its happening and implement workaround (passive acceptance)
Plan Risk
Management
Project
Management Plan
Project Charter
Stakeholder
Register
Enterprise
Environment
Factors
Organization
Process Assets
Expert Judgement
Meetings
Risk
Management
Plan
Identify Risks Risk Management
Plan
Cost Management
Plan
Schedule
Management Plan
Quality
Documentation Reviews
Information Gathering
Techniques
Checklist Analysis
Assumptions Analysis
Diagramming Techniques
SWOT Analysis
Risk Register
Management Plan
HR Management
Plan
Scope Baseline
Activity Cost
Estimates
Activity Duration
Estimates
Stakeholder
Register
Project
Documents
Procurement
Documents
Enterprise
Environment
Factors
Organization
Process Assets
Expert Judgement
Perform Qualitative
Risk Analysis
Risk Management
Plan
Scope Statement
Risk Register
Enterprise
Environment
Factors
Organization
Process Assets
Risk Probability and Impact
Assessment
Probability and Impact Matrix
Risk Data Quality
Assessment
Risk Categorization
Risk Urgency Assessment
Expert Judgement
Project
Documents
Updates
Perform Quantitative
Risk Analysis
Risk Management
Plan
Cost Management
Plan
Schedule
Management Plan
Risk Register
Enterprise
Environment
Factors
Organization
Process Assets
Data Gathering and
Representation Techniques
Quantitative Risk Analysis and
Modeling Techniques
Expert Judgement
Project
Documents
Updates
Plan Risk
Responses
Risk Management
Plan
Risk Register
Strategies for Negative Risk
(Threats)
Strategies for Positive Risk
(Opportunities)
Contingent Response
Strategies
Expert Judgement
PM Plan
Updates
Project
Documents
Updates
Control Risks PM Plan
Risk Register
Work Performance
Data
Work Performance
Reports
Risk Reassessment
Risk Audits
Variance and Trend Analysis
Technical Performance
Measurement
Reserve Analysis
Work
Performance
Info
Change
Requests
PM Plan Update
Meetings Project
Document
Updates
OPA Updates
Plan Risk Management
define and provide resources and time to perform risk management, including:
methodology, roles and responsibilities, budget, timing (when and how often), risk
categories (e.g. RBS), definitions, stakeholder tolerances (a EEF), reporting and
tracking
performed at project initiation and early in the Planning process
failure to address risks early on can ultimately be more costly
analytical techniques include stakeholder risk profile analysis, strategic risk scoring
sheets
a risk breakdown structure (RBS) (included in the PM Plan) - risks grouped by
categories and occurring areas
key risk categories: scope creep, inherent schedule flaws, employee turnover,
specification breakdown (conflicts in deliverable specifications), poor productivity
Identify Risks
determine all risks affecting the project
information-gathering techniques: brainstorming, delphi technique [a panel of
independent experts, maintain anonymity, use questionnaire, encourage open critique],
root cause analysis [performed after an event to gain understanding to prevent similar
events from occurring], expert interviewing, SWOT analysis
root cause analysis: safety-based (prevent accidents), production-based, process-
based (include business process), failure-based, systems-based (all above)
root cause analysis tools: FMEA, Pareto Analysis, Bayesian Inference (conditional
probability), Ishikawa Diagrams, Kepner-Tregoe
Monte Carlo analysis can identify points of schedule risks
Influence Diagram - graphical representations of situations showing causal influences,
time ordering of events, and other relationships among variables and outcomes.
Risk Register (typically not including the risk reserve)
The Risk Register may include a risk statement
any risk with a probability of >70% is an issue (to be dealt with proactively and recorded
in the issue log)
Perform Qualitative Risk Analysis
prioritizing risks for further analysis/action and identify high priority risks
need to identify bias and correct it (e.g. risk attitude of the stakeholders)
qualitative risk assessment matrix (format described in the Risk Management Plan)
update to risk register and other related documents
risk register update are output of Perform Qualitative Risk Analysis, Perform
Quantitative Analysis, Plan Risk Responses and Monitor & Control Risks
the scope baseline is used to understand whether the project is a recurrent type or a
state-of-the-art type (more risks)
risks requiring near-term responses are more urgent to address
Perform Quantitative Risk Analysis
the cost, schedule and risk management plan contains guidelines on establishing and
managing risks
involves mathematical modeling for forecasts and trend analysis
data gathering and representation techniques: interviewing, probability distributions
[normal distribution (bell shaped curve)],
sensitivity analysis (using the tornado diagram as presentation) for determining the
risks that have the most impact on the project

Failure Modes Effects Analysis (FMEA)
FMEA for manufactured product or where risk may be undetectable, Risk Priority
Number (RPN) = severity (1-10) x occurrence ([0.07%] 1-10 [20%]) X detectability (1-10
[undetectable]), also a non-proprietary approach for risk management
Expected Value / Expected Monetary Value (EMV), probability x impact (cost/effort
lost), opportunities (+ve values), threats (-ve values)
Monte Carlo Analysis - by running simulations many times over in order to calculate
those same probabilities heuristically just like actually playing and recording your results
in a real casino situation, 'S' curve (cumulative distribution) will result, may use
PERT/triangular distribution to model data, may use thousands of data points (a random
variable), for budget/schedule analysis
Decision Tree Analysis - another form of EMV, branching: decision squares (decision
branch - options), circles (uncertainty branch - possible outcomes)
Plan Risk Responses
plan response to enhance opportunities and reduce threats
each risk is owned by a responsible person
the watch list is the list of low priority risks items in the risk register
a fallback plan will be used if 1) risk response not effective, 2) accepted risk occurs
risk strategies: 1) prevent risk, 2) response to risk, 3) reduce risk, 4) promote
opportunities, 5) fallback if risk response fails
negative risk strategies: eliminate/avoid (not to use, extend the schedule), transfer
(outsource, warranty, insurance), mitigate (reduce the risk by more
testing/precautionary actions/redundancy), accept (passive - do nothing or active -
contingency)
positive risk strategies: exploit (ensure opportunity by using internal resources e.g.
reduce cost/use of top talents/new tech), share (contractor with specialized skills,
joint venture), enhance (increase likelihood / impact e.g. fast-tracking, add
resources etc.), accept
passive risk acceptance to be dealt with when the risk occurs
passive risk acceptance to be dealt with when the risk occurs
Contingency Plan (contingent response strategies) (plan A) are developed for
specific risk (when you have accepted a risk) with certain triggers vs Fallback Plan
(plan B)
Residual Risks - risks remains after the risk response strategy was implemented, may
be identified in the planning process (may subject to contingency/fallback planning)
They don't need any further analysis because you have already planned the most
complete response strategy you know in dealing with the risk that came before them.
Secondary Risks - risk arises when the risk response strategy was implemented
Contingency Reserve: known unknowns (determined risk), part of cost baseline
Management Reserve: unknown unknowns (discovery risk), part of project budget
The Risk Register is now completed with: risks and descriptions, triggers, response
strategy, persons responsible, results from qualitative and quantitative analysis, residual
and secondary risks, contingency and fallback, risk budget/time
Control Risks
when the above risk planning processes have been performed with due diligence, the
project is said to have a low risk profile
to check if assumptions are still valid, procedures are being followed and any deviance
to identify new risks and evaluate effectiveness of risk response plan
any need to adjust contingency and management reserves
to re-assess the individual risk response strategies to see if they are effective
risk audits deal with effectiveness of risk response and the risk management process
risk audits are usually performed by experts outside project team for the whole risk
management process
reserve analysis and fund for contingencies apply only to the specific risks on the
project for which they were set aside
workaround: when no contingency plan exists, executed on-the-fly to address
unplanned events - still need to pass through normal change control if change requests
are needed
determine the workaround is performed in control risks
Procurement Statement of Work (SOW) is a legal document subject to legal reviews,
legal advise should be sought throughout the whole procurement process
sellers are external to the project team
need to go through all 4 processes for each and every procurement
contract elements: offer (seller offer buyer), acceptance (buyer criteria), capacity
(physical/financial capabilities), consideration (seller receive), legal purpose (must be
legal under law)
best if contract is signed after PM is assigned
PM needs to understand terms and conditions, identify risks, include procurement time
in schedule and involve in negotiations
Centralized contracting vs decentralized contracting
sole source, single source (preferred), oligopoly (very few sellers)
procurement categories: major complexity (high risk), minor complexity (low risk,
expensive), routine purchase (Commercial Off the Shelf Products COTS), goods and
services (to perform part of our product)
a contract is not required to be written, it can be verbal or handshake, for internal
projects, formal contract is best
procurement applies to actors (as a service)
immaterial breach is minor breach
point of total assumption (PTA) = Target Cost + (Ceiling Price - Target Price) / % Share
of Cost Overrun
contract change control system is defined in the procurement management plan but
not in the contract
Plan Procurement
Management
PM Plan
Requirements
Documentation
Risk Register
Activity Resource
Requirements
Make-or-buy Analysis
Expert Judgement
Market Research
Meetings
Procurement
Management Plan
Procurement SOW
Procurement
Documents
Source Selection
Project Schedule
Activity Cost
Estimates
Stakeholder
Register
Enterprise
Environment Factors
Assets
Criteria
Make-or-buy
Decisions
Change Requests
Project Document
Updates
Conduct
Procurements
PM Plan
Procurement
Documents
Procurement SOW
Source Selection
Criteria
Seller Proposals
Project Documents
Make-or-buy
Decisions
Assets
Bidder Conferences
Proposal Evaluation
Techniques
Independent Estimates
Expert Judgement
Advertising
Procurement
Negotiations
Selected Sellers
Agreements
Resource Calendars
Change Requests
PM Plan Updates
Project Document
Updates
Control
Procurements
PM Plan
Procurement
Documents
Agreements
Approved Change
Requests
Work Performance
Reports
Work Performance
Data
Contract Change
Control System
Procurement
Performance Reviews
Inspections and Audits
Performance Reporting
Payment Systems
Claims Administration
Records Management
System
Work Performance
Info
Change Requests
PM Plan Updates
Project Documents
Updates
OPA Updates
Close Procurements PM Plan
Procurement
Documents
Procurement Audits
Procurement
Negotiations
Records Management
System
Closed
Procurements
OPA Updates
Plan Procurement Management
determine whether to obtain products/services outside of organization
identify possible sellers and pre-meeting with them
identify explicitly what is needed
make-or-buy analysis is a compulsory process, needs to take risks into
considerations
carefully written terms and conditions can transfer/share risks
teaming agreements or joint ventures
procurement documents: request for proposal (RFP), invitation for bid (IFB), request for
quote (RFQ), request for information (RFI), tender notice, invitation for negotiation,
seller initial response
the procurement management plan specifies how a project will acquire goods/services
from outside, includes: contract type, risk management, constraints and assumptions,
insurance requirements, form and format, pre-qualified sellers, metrics used, etc.
Procurement Statement of Work (SOW) - performance (describe what can be
accomplished), functional (convey the end purpose or result), design (convey
precisely what are to be done), can be developed by the seller or buyer - detail enough
to allow the potential sellers to decide whether they want/are qualified (at a minimum) to
pursue the work
Contract Types:
Firm Fixed Price (FFP) - the price is fixed, specifications are well known, risk on the
seller
Fixed Price Incentive Fee (FPIF) - incentives for faster/better than contracted
Fixed Price with Economic Adjustment / Economic Price Adjustment (FPEA / FP-EPA) -
inflation are taken into account
Purchase Order (PO) - for off-the-shelf goods/services with published rates
Cost Reimbursable (CR) / Cost Plus - buying the expertise (not the products), outcome
is not clear, risk on the buyer, little incentive to control costs on buyer, need invoice
audits
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF) - incentive for performance, sharing of unused money if
under/over contracted amount
Cost Plus Award Fee (CPAF) - award to be given based on agreed criteria, solely
decided by the customer on the degree of satisfaction
Cost Plus Percentage of Costs (CPPC) - illegal for contracts with US Government
Cost Contract - not profit, for NGO
Best Efforts - obligates the seller to utilize best attempts, high uncertainty in meeting the
goal
Time and Materials (T&M) - (hybrid type) when scope is not known, need constant
monitoring to control schedule and cost, simple, for short duration, good for proof-of-
concept type projects
Point of Total Assumption - (in fixed-price (incentive fee) contracts) in budget
overrun, the point at which the seller assumes all additional costs for delivering the
product/service
PTA = (Ceiling Price - Total Price) / Buyer's Share Ratio + Target Cost
target cost = total cost = estimated cost, total price = total cost + total profit
Request for Proposal (RFP) - cost reimbursable contract, functional/performance SOW
Invitation for Bid (IFB) / Request for Bid (RFB) - fixed-price contract, design SOW
Request for Quote - time and material, any type of SOW
Cancellation for Convenience - buyer can cancel and pay up to the point
Cancellation for Cause - default by either party, may result in legal actions
Escrow - survivability of seller in doubt, put the product in escrow (esp. if seller not give
up intellectual properties)
Force Majeure - standard disclaimer refers to 'Acts of God'
Indemnification / Liability - responsible party
LOI Letter of Intent - not legally binding
Privity - the contractor may use sub-contractor, no direct contractual relationship with
buyer
Retainage - amount to be withheld to ensure delivery
Risk of Loss - how the risk is shoulder by the parties
Time is of the Essence - delay in delivery will cause cardinal breach of contract
Work Made for Hire - all work owned by the buyer
Sole Source vs Single Source (preferred vendor - for long-term relationship)
Evaluation Criteria: risk, understanding of need, life-cycle cost, technical capability,
management approach, technical approach
Conduct Procurements
identify the sellers and award the contracts
PM may not be the lead negotiator on procurement, but may be present to assist
may need senior management approval before awarding the contracts
bidder's conference is a Q&A session with bidders, all bidders receive the same
information (bidder are careful not to expose their technical approach during the session
=> may not have many questions)
NOT to have secret meetings or communications with individual vendors
may set up qualified sellers lists
review seller proposals: weighting systems, independent estimates, screening systems
(screen out non-qualified vendors), seller ratings systems (for past performance), expert
judgement
Contract Negotiations and Tactics
Fait Accompli - not negotiable terms
Deadline - deadline for deliverables
Good Guy/ Bad Guy - one friendly, one aggressive
Missing Man - decision maker is missing
Limited Authority - not given authority
Fair and Reasonable - what is fair?
Unreasonable - making unreasonable demands
Delay - esp in critical moments
Attack - force compliance
Agreement is legally binding and should include (PM should NOT attempt to write the
agreement):
Control Procurements
performed by both seller and buyer
performed by both seller and buyer
manage procurement relationships, monitor contract performance, make change and
corrections
the procurement administrator may be external to the project team
may identify early signs and capture details for pre-mature termination of contract
the claims administration process deals with changes/disputes, disputes is best to be
settled through negotiation > ADR
may need Alternative Dispute Resolution (ADR) by 3rd parties in case disputes cannot
be settled
For Fixed Price contracts, look out for Bait and Switch (replace with cheaper
materials), look out for excessive change requests
For Cost Reimbursable contracts, audit all invoices, look out for additional charges, tie
payment to milestones, make sure people with the required skill sets are doing the job
For Time and Materials contracts, ensure hours are not padded, follow the milestone
dates
Contract Change Control System: for handling change requests (define who has the
authority to approve changes (usually not the PM, but may be assigned the
authority))
Work performance data includes: the cost incurred and the invoice needs to be paid
OPA may include the seller's performance
Close Procurements
all work are completed, deliverables accepted, claims settled OR terminated by either
party
at completion / termination of contract
prior to administrative closure of Close Project or Phase
unresolved claims may be left for litigation after closure
settlement of claims/invoices, audit, archive, lessons learned
the contract is complete when all the specifications are satisfied, no matter the customer
is satisfied with the product or not
Procurement Audit is the structured review of the procurement process from Plan
Procurement Management through Control Procurements, is used to capture lessons
learned from the procurement exercise
once a procurement is cancelled, the next process will be the close procurements
stakeholders are groups/individuals who may affect / be affected by the project
identify stakeholders is a continually process throughout the project lifecycle
identify stakeholders, communicate and engage them, manage expectations and focus
on satisfaction
stakeholder satisfaction is a key project objective
the Project Manager is responsible for the engaging and managing the various
stakeholders in a project
Identify Stakeholders Project Charter
Procurement
Documents
Enterprise
Environment Factors
Assets
Stakeholder
Analysis
Expert Judgement
Meetings
Stakeholder
Register
Plan Stakeholder
Management
PM Plan
Stakeholder Register
Enterprise
Environment Factors
Assets
Expert Judgement
Meetings
Stakeholder
Management Plan
Project Documents
Updates
Manage Stakeholder
Engagement
Stakeholder
Management Plan
Communication
Management Plan
Change Log
Assets
Communication
Methods
Management Skills
Issue Log
Change Requests
PM Plan Updates
Project Document
Updates
OPA Updates
Control Stakeholder PM Plan Information Work Performance
Engagement Issue Log
Work Performance
Data
Project Documents
Management Systems
Expert Judgement
Meetings
Information
Change Requests
PM Plan Updates
Project Document
Updates
OPA Updates
Identify Stakeholders
identify stakeholders and document their importance/influence (=active involvement)
/impact/interest/involvement
3 'I's: importance, interest, influence
stakeholders from operation process needed to be included
determine the stakeholders' hot buttons (what response in specific situations) and
develop support strategies
procurement documents are used for determining external stakeholders such as the
seller
stakeholders have the greatest influence in the initial stage of the project
stakeholder analysis matrix is part of the stakeholder management strategy (output of
identify stakeholders)
Salience Model: describing stakeholders based on the power (influence), urgency
and legitimacy
document only influential stakeholders if there is a large number of stakeholders
document the impact using a power/influence grid, power/interest grid, influence/impact
grid, salience model
!!important
the Stakeholder Register
Plan Stakeholder Management
management strategies to engage stakeholders throughout project lifecycle
Stakeholder Management Plan contains: current/desired engagement levels, scope and
impact to stakeholders, interrelationships, communication requirements and forms, how
to update the plan
The distribution of this plan requires precautions as the engagement level of
stakeholders is a very sensitive information
Engagement Level
Unaware
Resistant: resistant to change
Neutral
Supportive: supportive of change
Leading: actively engaged for project success
Stakeholder Engagement Assessment Matrix: (C-current level, D-desired level)
Manage Stakeholder Engagement
aim: increase support and minimize resistance from stakeholders by addressing
issues
the communication requirements of individual stakeholder are recorded in the Project
Communication Plan
PM may call upon sponsor for assistance
communicate and work with stakeholders to meet their needs/expectations and address
issues
build trust and resolve conflicts, negotiation skills, communication skills
need to communicate bad news/issues in a timely manner
feedback from stakeholders is stored in OPA
the Issue Log (Action Item Log): to identify issues/define impacts, owner (most
important element) and priority/with due date
Control Stakeholder Engagement
monitor overall stakeholder relationships and adjusting strategies
14. Professional and Social Responsibility
Responsibility
in the best interest of the society, public and environment
accept assignments consistent with skills and fulfill commitments
accept stretch assignment when the assigner is fully aware of the skill gaps
own error and make corrections
uphold laws and regulations
report illegal/unethical activities substantiated with facts
ask for direction should the decision is beyond assigned authority
Respect
show respect to others
listen and understand others
conduct in a professional manner, even if not reciprocated
resolve conflicts directly
negotiate in good faith
do not influence others for personal benefits
respect others rights
Fairness
transparency in decision making
be objective
provide equal access to information, equal opportunities
disclose any conflict of interests and refrain from making decisions in case of conflict of
interest
do not deny opportunities base on personal considerations
do not discriminate
apply rules without favoritism or prejudice
Honesty
understand the truth and be truthful
honour commitments
not to deceive others
not engage in dishonest behavior for personal gain / at the expense of others
A. PMP Formulas
Name
(Abbreviation)
Formula Interpretation
No. of
Communication
Channels
n (n-1)/2
n = number of members in the
team
n should include
the project
manager
e.g. if the no. of
team members
increase from 4 to
5, the increase in
communication
channels:
5(5-1)/2 4(4-1)/2
= 4
Schedule
Performance
Index (SPI)
SPI = EV/PV
EV = Earned Value
PV = Planned Value
< 1 behind
schedule
= 1 on schedule
> 1 ahead of
schedule
Cost
Performance
Index (CPI)
CPI = EV/AC
EV = Earned Value
AC = Actual Cost
< 1 Over budget
= 1 On budget
> 1 Under
budget
sometimes the
term cumulative
CPI would be
shown, which
actually is the CPI
up to that moment
Schedule
Variance (SV)
SV = EV PV
EV = Earned Value
< 0 Behind
schedule
= 0 On schedule
> 0 Ahead of
schedule
PV = Planned Value
Cost Variance
(CV)
CV = EV AC
EV = Earned Value
AC = Actual Cost
< 0 Over budget
= 0 On budget
> 0 Budget
budget
Estimate at
Completion
(EAC) if original
is flawed
EAC = AC +
New ETC
AC = Actual Cost
New ETC = New Estimate to
Completion
if the original
estimate is based
on wrong
data/assumptions
or circumstances
have changed
Estimate at
Completion
(EAC) if BAC
remains the
same
EAC = AC +
BAC EV
AC = Actual Cost
BAC = Budget at completion
EV = Earned Value
the variance is
caused by a one-
time event and is
not likely to happen
again
Estimate at
Completion
(EAC) if CPI
remains the
same
EAC =
BAC/CPI
CPI = Cost performance index
if the CPI would
remain the same till
end of project, i.e.
the original
estimation is not
accurate
Estimate at
Completion
(EAC) if
substandard
performance
continues
EAC = AC +
(BAC -
EV)/(CPI*SPI)
AC = Actual Cost
EV = Earned Value
CPI = Cost Performance Index
SPI = Schedule Performance
Index
use when the
question gives all
the values (AC,
BAC, EV, CPI and
SPI), otherwise,
this formula is not
likely to be used
To-Complete
Performance
Index (TCPI)
TCPI = (BAC
EV)/
(BAC AC)
EV = Earned value
AC = Actual Cost
TCPI =
Remaining
Work
/Remaining
Funds
< 1 Under
budget
= 1 On budget
> 1 Over budget
EV = Earned value
CPI = Cost performance index
Estimate to
Completion
ETC = EAC -
AC
EAC = Estimate at Completion
AC = Actual Cost
Variance at
Completion
VAC = BAC
EAC
EAC = Estimate at Completion
< 0 Under
budget
= 0 On budget
> 0 Over budget
PERT
Estimation
(O + 4M + P)/6
O= Optimistic estimate
M= Most Likely estimate
P= Pessimistic estimate
Standard
Deviation
(P O)/6
O= Optimistic estimate
P= Pessimistic estimate
this is a rough
estimate for the
standard deviation
Float/Slack
LS ES
LS = Late start
ES = Early start
LF EF
LF = Late finish
EF = Early finish
= 0 On critical
path
< 0 Behind
schedule
B. Last Minutes Revision Notes
1. The contract between the organization and the vendor supercedes all other work
related documents
2. Document analysis (collect requirements) vs Document review (identify risks)
3. Customers, internal or external, are the most important stakeholders in a project,
decisions are made in favor of the customers
4. Project managers manage things, but lead people.
5. Each resource in the project must be accounted for and assigned to a cost category.
Categories include the following: Labor costs, Material costs, Travel costs, Supplies,
Hardware costs, Software costs, Special categories (inflation, cost reserve, and so on)
6. Five different approaches to conflict resolution:
* Withdrawing/Avoiding - Retreating
* Smoothing/Accommodating - Emphasizing on agreements than disagreements
* Compromising
* Forcing Pushing ones viewpoint
* Collaborating Incorporating multiple view points and driving consensus
* Confronting/Problem Solving Head on with give-and-take policy and open dialogue
7. Confronting (Problem Solving) is the best problem-solving technique since it meets the
problem directly
8. Conflict should be addressed early and usually in private, using a direct, collaborative
approach
9. When a project is performed under contract, the contract can serve as the project
charter
10. Philip Crosby devised the zero defects theory, meaning do it right the first time. Proper
Quality Planning leads to less rework and higher productivity
11. Joseph M. Juran is noted for his fitness for use premise. Simply put, this means the
stakeholders and customers expectations are met or exceeded.
12. W. Edwards Deming suggested that as much as 85 percent of the cost of quality is a
management problem
13. Shewhart = Plan-Do-Check-Act cycle.
14. Organization, Environmental & external assumptions should be addressed by the
Project Charter
15. Project Manager must consider cultural differences while deciding upon
recongnization and rewards during team development.
16. Technical inability and poor risk management by the contractor is mostly the reason for
the project not to meet the customer expectations
17. Cost Of Quality (COQ) are the cost types in modern quality management: Prevention
Costs, appraisal costs & failure costs, Internal failure costs Failures found by the
project team, External failure costs Failures found by the customer (including
warranty)
18. Face-to-face meetings are the most effective means for communicating and resolving
issues with stakeholders.
19. Detailed Tasks are detailed in Project Schedule, which is part of Project Plan and note
its NOT WBS. WBS is a deliverable oriented document
20. A Planning Package is a WBS component below the control account but above the
work package. It is used for planning unknown work content that does not have detailed
schedule activities
21. Control account Plan (CAP) is a management control point where the integration of
scope, budget and schedule take place and where the measurement of performance
takes place. These CAPS are placed at the selected management points in the WBS.
22. In decision tree, a circle is a chance, a square is a decision
23. Reporting formats: - Forecast Report (what is expected to happen on a project),-
Progress Report (what happened since the last report),- Status Report (state of the
project at the current time),- Earned Value Report (focuses on Earned Value
Management),- Variance Report (what happened vs. what should have happened).
24. The Project Manager ultimately has the responsibility for the Product of the Project and
Senior Management is responsible for the Quality of entire Organization
25. Product analysis includes techniques such as value engineering, value analysis,
systems analysis, systems engineering, product breakdown, and functional analysis
26. The introduction of a new team member will start the formation and development of the
team all over again with the forming stage
27. Fait accompli is a tactic used during contract negotiations where one party convinces
the other that the particular issue is no longer relevant or cannot be changed
28. Understand for the exam that configuration management involves - identifying the
physical characteristics of the product, service, or result of the project (or its individual
components); - controlling changes to those characteristics; and - Documenting
changes to verify that requirements are met.
29. Control process - Configuration identification, - Configuration status accounting and -
Configuration verification and auditing
30. Integrated Change Control, Schedule Control, and Cost Control are all concerned with
three issues: - influencing the things that cause change, - determining that change is
needed or has happened, - and managing the change
31. Change control systems are documented procedures that describe - How to submit
change requests. - They track the status of the change requests, - document the
management impacts of change, - track the change approval status, and - define the
level of authority needed to approve changes.
32. Workarounds are unplanned responses. Workarounds deal with negative risk events as
they occur.
33. Close Project - Collecting project documents, - Disseminating final acceptance notice, -
Documenting lessons learned, - Archiving project records, - Release resources, -
Formal closure
34. Hammocks are summary-level activities or aggregate activities shown as a summary
activity on a project schedule network diagram.
35. Quality Function Deployment Process identifies what the customers needs are
(Spoken/unspoken words) and translates those needs into technical requirements.
Appropriate for each stage of the product development life cycle
36. When distributing information, the total message impact from the sender is 7% words,
38% vocal tones and 55% body language
37. Decision Trees are considered Quantitative while Influence diagram are considered
Qualitative.
38. Influence diagram shows the dependencies among the variables more clearly than the
decision tree
39. A Bill of Material (BOM) describes the product in terms of its assemblies, sub-
assemblies and basic parts
40. Project manager must possess following interpersonal skills
1. Leadership
2. Team building
3. Motivation
4. Communication
5. Influencing
6. Decision making
7. Political and cultural awareness and
8. Negotiation
Ten most important skills and competencies for Project Managers
1. People skills
2. Leadership
3. Listening
4. Integrity, ethical behavior, consistent
5. Strong at building trust
6. Verbal communication
7. Strong at building teams
8. Conflict resolution, conflict management
9. Critical thinking, problem solving
10. Understands, balances priorities
41. Workarounds are unplanned responses. Workarounds deal with negative risk events
as they occur. As the name implies, workarounds were not previously known to the
project team. The risk event was unplanned, so no contingency plan existed to deal with
the risk event.
42. Risk Response
Threats
- Avoid remove the cause of the risk so that it never materializes
- Mitigate reduce the probability and or impact of the risk
- Transfer transfer the risk to another party; usually done with insurance and
warranties, etc.
Opportunities
- Exploit make sure the opportunity occurs, you can add work or make a change to
the project
- Enhance increase the probability and or positive impact of the risk
- Share share the opportunity with a third party to be able to take advantage of the
opportunity

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Preface

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